June 2010 Edition
Computer Science Department, University of Cape Town
| MSc-IT Study Material June 2010 Edition Computer Science Department, University of Cape Town |
Electronic commerce can be seen as the engine of the New Economy. Without e-commerce, the necessary technology and culture would not exist to fuel it. Unit 5 covered e-commerce. Here we offer some further statistics and interesting leads on its influence in the New Economy.
As a general source of e-commerce reading, the magazine Business 2.0 is very good. For entrepreneurs in e-commerce this magazine is essential background. Every few years a magazine appears which captures the spirit of the times. For e-commerce, it was first Wired, then Fast Company, and now Business 2.0. This magazine, of course, is very US centric, but it is rich with new ideas.
Visit the Business 2.0 Web pages.
Internet Commerce
1995 revenues from Internet business ranged between $200 million and $436 million (Compiled from research houses.)
Internet commerce revenues are projected at the following amounts in year 2000: $45 billion by Forrester Research, $73 billion by Goldman Sachs, and $189 billion by International Data Corporation (IDC).
Electronic commerce will be a $150 billion industry by year 2000. (IDC)
Web commerce transactions increased by 500% in 1996; 400% growth is expected in 1997. (IDC)
Internet-based sales represented 73.8% - or $733.1 million — of all electronic sales in 1996. That figure is expected to grow to $4.27 billion — 85% of electronic sales — by 2000. (Cowles/Simba Information.)
Online Brokerage/Banking
On-line trading will account for 20% of retail transaction volume over the next four years.
1.5 million accounts exist on-line today. That will be 10 million by 2001 (Forrester Research.)
Most transactions will be for less than $10.
Around 45% of physical cash transactions are between $1.50 and $7.50.
Internet Software/Information Technology Research
There will be more than 170 million users on the Internet by the year 2000. (Morgan Stanley)
Sales of Internet (including Intra/Extranet Servers) servers will rocket from $476 million in 1995 to more than $4 billion in 1997 and $8 billion in 1998. (Zona Research)
$1.2 trillion will be spent on IT by 2000, 35%, or $450 billion, will be driven by network computing. (IBM)
The market for packaged Internet software applications will grow to $1.8 billion in revenue by 1999.
The application development services market for the Internet will grow from $78 million in 1996 to $1.2 billion in 2000 — related professional services will increase from $600 million in 1996 to $2.9 billion by 2000. (IDC)
$3.7 billion will be spent on Internet expertise, access, software, content, and commerce in 1998. (Goldman, Sachs)
$2 billion will be spent on Internet software in 2000. (Goldman, Sachs)
Computer Security
The computer security market approaches $2 billion in 1997. (CNN)
Firewall sales will grow from $160 million in 1995 to $980 million in 2000. That computes to 44% compound annual growth in the firewall market. (UBS Securities LLC)
Growth in authentication products is slated at 92%, compounded annually, while growth in the encryption industry is projected at 108%. (UBS Securities LLC)
Market for electronic commerce products and services rose from $6.7 million in 1994 to more than $103 million in 1996. (Frost & Sullivan)
Computer crime costs over $8 billion a year; almost $23 million a day. Average business fraud is 23,000, with computers it is 500,000. (British Banking Association)
20% of (surveyed) corporations report losing information valued over $1 million a year. (Information Week/Ernst and Young Poll)
A study by the American Bar Association found 78% of computer crimes were perpetrated by individuals within the victimized organization.
Employees or former employees comprise over 40% of individuals arrested for computer-related crimes.
The smartcard and electronic tag market is expected, over the coming years, to have an annual growth rate of 30%. That translates into a $500 million semiconductor chip market by 1999.
The data comes from either the above noted sources, or from various other published sources.
What do you understand by the expression 'The Virtual Organisation'? Write your own definition and explain it.
Think beyond specific IT techniques to organisational processes, management and the whole of e-commerce.
You can find some thoughts on this issue at the end of the unit.