'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.