Many aspects of the Internet are evolving rapidly, from the
technology, to the business plan, contents development and
promotion methods. Yet the articles in this Close Up section
suggest that trade-related organizations should not wait to
introduce this revolutionary tool in their work. Instead, they
should take advantage of lessons learned from those who have
already begun to use the Internet.
Lessons
One lesson learned is to link the Internet to an organization's
main business goals, rather than relegating the task of integration
primarily to technicians, as seen in the interviews with Internet
experts and the article "Linking the Internet to Your Marketing
Strategy".
A second lesson is to ensure resources for marketing and
maintenance, and not just installation and initial design. Some
experts suggest as a rule of thumb to dedicate one-third of
resources to start-up costs, another third to promotion efforts and
the final third to updating and maintenance.
Another emerging lesson is that some businesses are more suited
to sales and delivery via the Internet than others. Music, books,
software, travel services and financial services are a sample of
business sectors that are in the forefront. Service industries in
particular have much to gain, as can be seen in the article "Tips
for Service Firms".
Most organizations can already take advantage of the Internet's
potential to reduce communications costs, encourage closer links
between organizations in different locations, find relevant
business information and contacts, and even streamline purchasing
and supply management. See "Manage Your Purchasing with the
Internet".
Challenges
At the same time, one must take into account Internet-related
constraints relevant for firms in developing countries using the
Internet as a trade support tool. Among them are telecommunications
infrastructure gaps, the need to develop more local sites,
translation (English is still the dominant language on the
Internet), challenges to adapt existing laws to this new medium,
and higher costs for installation and access.
Building familiarity with Internet use is also difficult when
there may only be a few computers per company. (A recent
International Finance Corporation study on company use of Internet
in developing countries underlines that fewer people per company
have Internet access in developing countries, as opposed to
companies in developed countries.)
One must also keep in mind that the Internet as a global tool
for trade is still in development; a number of these issues are
outlined by ITC's Trade Information Chief, Bernard Ancel, in
"Exploring International Markets".
A frequently cited constraint is related to infrastructure. The
International Telecommunications Union notes that developed
countries have 312 Internet Service Providers (ISPs) per 10,000
people, while there are 6 Internet Service Providers per 10,000 in
developing countries; there are 2.5 telephone lines per 100 people
in developing countries, versus 54 lines per 100 people in the
developed world.
Towards practical solutions
The articles in this section provide partial answers to some of
these constraints: the beginning use of satellite dishes for
Internet access, instead of telephone lines; examples of free
information on the Internet, such as "how-to" sites, free software
and discussion groups that can help get companies going; mega-sites
that provide shortcuts for trade research; tips on building
Internet culture (such as use of news groups, e-mail, web sites);
and promotion strategies (see pages 36-37 about ITC's services
exporting site).
Without a critical mass of computers and supporting
infrastructure, business-to-consumer applications may not be the
first step for many firms in developing countries. Research
summarized in the article "Small Firms and the Internet: Force or
Farce?" shows that caution is in order regarding sales. Yet it also
shows that firms that invest in the Internet are encouraged by its
marketing and communications applications.
Experts view e-commerce as far broader than sales and/or
delivery via the Internet. E-commerce is coming to be accepted as
an umbrella term for all business-related Internet activities, such
as gathering market research, providing market intelligence,
offering links to business contacts and information, posting
product and service descriptions, and interacting in
business-related news groups-all elements covered in the articles
of this Close-Up section on the Internet.
Natalie Domeisen, Forum Editor, conducted the interviews and
coordinated this Close-Up section.