E-COMMERCE: WHERE DO
The objective of e-commerce is to build a network
of interconnected business and society.
By Ateeq M. Khan, CEO Gem Net
Mar 12 - 25, 2001
By far the most profound impact on human evolution
has been the development in the field of IT, with off shoots in
biotechnology and off course Business & Commerce. When we say E
Commerce we are basically discussing one of the following models :
1. B2B simply means Business To Business
: Here the buyers and sellers are some sort of business entities
2. B2C means Business to Consumers :
Here the sellers are business entities and buyers are individual
customers. Most of the Net crimes especially credit card frauds are
committed in this model.
3. C2B means Consumers to Business:
This is not a very significant model because of the fact that
individual entities are never given serious considerations by the
business entities for purchasing.
4. C2C or Consumers to Consumers: Primarily used in
the Auctioning on Net.
Some authorities on E Commerce also take B2G
(Business to Govt) and G2B (Govt to Business) as one of the models,
but modern media considers this as part of E Government.
Now lets see where do we stand in Pakistan on all
of the above models.
1. B2B: This model's prerequisite is that
the transaction should be done via automation i.e. the life cycle of a
business transaction right from purchase order to final payment should
route over the networks of the two organizations. As of today only a
handful of organizations in the private sector could claim automation
of this level. Using computers to type your documents is not what B2B
or E Commerce is about. It means 100 per cent automation at each stage
of the transaction. EDI is the best example of B2B model used by US
and European companies.
2. B2C: Again the lethargic approach by the
State Bank of Pakistan and local banks to implement the credit card
payment gateways is delaying implementing this model in Pakistan. Over
90 per cent transactions in this model are carried out through credit
cards. Companies wishing to implement this solution have to deal with
US based companies who charge extra money to provide this service. The
second problem is the conversion rate of USD to Pak Rupee. Hence in
order to expedite real growth in this sector the local banks should
resolve this problem as soon as possible.
3. C2B: Software developers and web
developers can be put in this category. They usually get orders over
the Net through their friends and relatives in US and they carry out
the required task and upload the work via FTP. The existing surge in
Medical Transcription business may also provide another source of
income to those interested in doing business from their home via
Internet. Again the amount earned by the individuals through this
model may not come to Pakistan through official channel hence real
estimate can never be made (like our software exports!)
4. C2C: No such model exists in Pakistan at
the moment. Although some efforts have been made by some individuals
but it still lacks enthusiasm from the Net users to deal with unknown
persons over the Net. Some private deals made through chatting can not
make this a viable business model.
Recent announcements from the Ministry of Science
& Technology to implement E Government projects, we will see how
efficiently B2G, G2B and even G2G works.
Infrastructure wise we have good deployments, but
the problem of maintenance and customer support persist. With
involvement of more and more private sector parties this may improve
also. Ever increasing trend of computerization, networking and
Internet usage will definitely help business and consumers to avail
modern facilities with convenience. The objective of e-commerce is to
build a network of interconnected business and society.