'Internet commerce is just another term coined by marketing people'

–Gary
Leonard Koh,

Strategic Business Manager, South Asia, Sun Microsystems.

In the last couple of
months, there has been a blitz in the media with every technology company worth its name
talking about e-business, ecommerce, internet commerce and much more, leading to general
confusion. Recently, Gary Leonard Koh, Strategic Business Manager, South Asia, Sun
Microsystems, was in the country, to address the India Economic Summit of the World
Economic Forum on ecommerce initiatives. Attended by who's who of the country, the event
was inaugurated by the Prime Minister Atal Behari Vajpayee and chaired by Percy Barnevik,
Chairman of ABB. DATAQUEST managed to catch up with Koh on his flying visit to Delhi and
pinned him with the following questions in order to get a clarity on the issue. Given
below are his rapid fire answers. Read on.

If an organization is networked
and connected, isn't it already into e-business? Then, what exactly is this big fuss about
e-business?

Well, yes. That is why Sun defines ecommerce as any business or commercial transaction
carried out over interconnected networks, including the internet. This can be information
in nature. If an organization is networked and connected to the net, and it carries out
transactions, then it is already into e-business. Even EDI, since 1980, is electronic
business. The difference these days is that we use an open technology (the internet) to
carry it out, and you will find that even the traditional EDI vendors are transforming
into the internet.

Is there any particular reason
why an organization should look at e-business?

Most businesses rely on large networks, or efficient network of partners, suppliers
and customers. If they are interested at all in making their networks more effective, they
will consider faster and better ways to communicate and transact. Moreover, in the
information age, the marketplace is increasingly becoming global. The internet makes the
world much more accessible. For example, a manufacturer in India who sources parts from
overseas, and sells his finished products overseas will be able to use ecommerce to
integrate its inventory system and manufacturing system with his supplier's and customer's
systems.

Why is it being said that
e-business is the way of the future?

As above, the trend is for increasing globalization of businesses. Also, there is an
increasing trend toward supply chain integration. These imperatives make ecommerce a
'must' to maintain and gain competitive advantage.

Does it have relevance to Indian
businesses, where a large number of companies are still to recognize the need for
computers?

It is even more relevant for Indian businesses. India will have competitors from Brazil,
Thailand and even Ireland. If businesses in these countries are embracing ecommerce, and
if Indian businesses don't, they will be left behind.

Is e-business same as ecommerce?
What is the fundamental difference between the two?

I don't see any difference between the two, and there is another which is electronic
government. These terms encompass business-to-business, business-to-consumer,
business-to-government, business-in-business and even consumer-to-consumer transactions.
Moreover, transactions need not exchange financial instruments-these transactions can be
transactions of information.

What is internet commerce? That
is also being so much bandied about?

It's just another term coined by marketing people. Some vendors define internet
commerce as ecommerce carried out over the internet. Sun regards ecommerce as commercial
transactions carried out over any interconnected network, primarily the internet.

l Ignore the hype, what is the
real opportunity for businesses? Are customers really buying on the internet today?

Customers are already buying air tickets, books, computers, flowers, music etc over
the internet. For example, the US Department of Commerce estimated that 13.8 million
Americans used internet to plan their trips in 1997. The Travel Industry Association
estimated that 6.3 million made their reservations online.

However, despite this, there are
few real success stories in this 'electronic marketplace.' Even Amazon.com has not
broken-even yet. The real opportunity is for business-to-business ecommerce, where
manufacturers use a private service to assist in their purchasing. A great example is
www.amoweb.com.

Are there specific industries
that can benefit more than the others? Or is it the same for all?

I would think that all industries that carry out commercial transactions will benefit.
However, the industries which are more information-intensive and speed-sensitive will
benefit more.

Is size of an organization a big
issue as far as ecommerce is concerned?

No. Smaller organizations who cannot afford their own full-blown ecommerce system can
outsource to a service provider. This is an opportunity for ecommerce service providers,
whom we call ESPs in Sun.

Isn't exposing the
organization's computer network a risky proposition? Is it worth all the trouble, if, at
the end of the day, external people get to tamper with the data?

Having a properly executed security policy will ensure that this does not happen. The
first generation of security was the firewall. This is only border security. With
SunScreen SecureNet, you secure the entire enterprise. Of course, the technology can only
go so far. The organization will also need to institute proper security procedures and
enforce policies.

In India, the usage of credit
card is limited to urban areas and that too among certain sections of the society. Given
this, what is the real potential of doing commerce electronically?

Again, this is the 'electronic marketplace' against 'real' ecommerce. Also, there are
other methods of payment including e-cash, e-checks etc.