E-Commerce Development in Hong Kong - Part 1: ereadiness and einfrastructure
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1 E-Commerce Development in Hong Kong - Part 1: ereadiness and einfrastructure Thomas Lee 李 猷 達 Center for E-Commerce E Infrastructure Development (CECID) 電 子 商 貿 基 建 研 究 中 心 The University of Hong Kong 香 港 大 學 easia Forum, Oct 2003, Taipei
2 Agenda ereadiness einfrastructure egovernment Initiatives Future Directions Oct 2003 easia Forum, Oct 2003, Taipei 2
3 Agenda ereadiness einfrastructure egovernment Initiatives Future Directions Oct 2003 easia Forum, Oct 2003, Taipei 3
4 ereadiness rankings th in the world 1st in Asia Extracted from the 2003 e-readiness rankings paper by Economist Intelligence Unit Oct 2003 easia Forum, Oct 2003, Taipei 4
5 Where do we stand? Extracted from DRAFT 2004 Digital 21 Strategy Mobile phone penetration 96% in 2003 Broadband reaches all commercial buildings and virtually all residential buildings External telecom capacity: ~900 Gbps in fold increase since 2000 Household PC penetration: 62% in % in 2000 Household Internet penetration: 53% in % in 2000 Household broadband penetration: 48% in % in Oct 2003 easia Forum, Oct 2003, Taipei 5
6 Where do we stand? (Cont ) Extracted from DRAFT 2004 Digital 21 Strategy PC penetration in business sector: 55% in % in 2000 Internet penetration in business sector: 44% in % in 2000 Over 50% of businesses adopted some form of e-business in % of Internet users had used e-govte services More than 60% rated e-govte services as very good or quite good Oct 2003 easia Forum, Oct 2003, Taipei 6
7 Internet penetration Broadband Internet traffic Source: HKSARG OFTA Dialup Internet traffic Oct 2003 easia Forum, Oct 2003, Taipei 7
8 What have we done? Digital 21 IT Strategy initiated in 1998 Reviewed about every 3 years gov.hk/digital21 To build HK s s information infrastructure and put in place the right environment for e-business e to prosper 2001 Digital 21 Strategy To create a world-class e-biz e environment in HK To ensure that HKSARG leads by setting examples To help HK s s workforce adapt to the info economy To enhance the info literacy of HK community To leverage HK s s strengths and fully utilize new technologies Oct 2003 easia Forum, Oct 2003, Taipei 8
9 Agenda ereadiness einfrastructure egovernment Initiatives Future Directions Oct 2003 easia Forum, Oct 2003, Taipei 9
10 ecommerce security Electronic Transactions Ordinance Enacted in January 2000 Three recognized certification authorities under ETO Computer Emergency Response Team (CERT) Co-ordination ordination Centre Established in February 2001 Smart ID Cards can embed digital certificates for daily e-commerce e transactions Oct 2003 easia Forum, Oct 2003, Taipei 10
11 Octopus Card Electronic payment system using contactless "Octopus Card" Launched in 1997 by a group of mass transit firms Over 210 organizations accept Octopus public transport, convenience stores, supermarkets, vending machines, schools, access control, and car parks Over 9.8M Octopus Cards in circulation Average daily transaction: HK$53M (US$6.8M) Oct 2003 easia Forum, Oct 2003, Taipei 11
12 Technology Infrastructure Cyperport To create strategic cluster of IT companies for new technology development Campus with state-of of-the-art information infrastructure e.g. high-speed internet connection, multimedia lab Invites major int l l technology players as anchor tenants Science Park Technology R&D Incubation of IT start-ups Oct 2003 easia Forum, Oct 2003, Taipei 12
13 Agenda ereadiness einfrastructure egovernment Initiatives Future Directions Oct 2003 easia Forum, Oct 2003, Taipei 13
14 egovernment rankings 2003 egovernment Leadership ranking of HK 7th in the world 2nd in Asia after Singapore Mature Delivery Extracted from the 2003 egovernment Leadership Report by Accenture Oct 2003 easia Forum, Oct 2003, Taipei 14
15 egovernment development Coordinated by Commerce, Industry, Technology Bureau and Information Technology Services Department 2004 Digital 21 DRAFT mentions about the consideration of merging g ITSD into CITB and establishing Govt Chief Information Officer (CIO) Target: 90% of public government services delivered in electronic mode by end 2003 e-option of public services Achieved 86% as of June 2003 ESD Life Portal to deliver e-govte services By end 2003, 80% govt procurement tenders through electronic means Recent examples of prominent e-servicese Submission of electronic cargo manifests One-stop change of address to different departments Multi-application Smart ID Card Oct 2003 easia Forum, Oct 2003, Taipei 15
16 14-15 Oct 2003 easia Forum, Oct 2003, Taipei 16
17 Measures to increase e-government usage According to a survey of Internet users Incentives Priority service given to online channel: 78% Personalised services: 66% Value added services: 64% Gifts, coupons, discount offers, cash rebates: 64% Disincentives Reducing counter service: 50% Oct 2003 easia Forum, Oct 2003, Taipei 17
18 14-15 Oct 2003 easia Forum, Oct 2003, Taipei 18
19 Smart ID Card New generation of identity cards in form of smart cards Credit-card card-sized, durable, secure, and embedded with IC chip for data storage and processing Multi-application Embedded with digital certificate for e-transactionse Driving licence Library card Self-service immigration clearance (by storing thumbprints for computer recognition) Issuing the first batch of Smart ID Cards Oct 2003 easia Forum, Oct 2003, Taipei 19
20 Key barriers Quoted from a Sectoral Strategy for ecommerce in HK paper by HKITF and Office of Mr. Sin Chung Kai Inappropriateness of goods and services for sale via electronic means No perceived benefits from the adoption of e-e commerce Lack of critical mass to make e-commerce e cost- efficient Conflict of interest in different sales channel Cost and time issues Lack of skills or knowledge about e-commerce e technologies Lack of trust and confidence Oct 2003 easia Forum, Oct 2003, Taipei 20
21 Agenda ereadiness einfrastructure egovernment Initiatives Future Directions Oct 2003 easia Forum, Oct 2003, Taipei 21
22 Future directions Mobile commerce Mobile phone penetration rate by June 2003 (source: HKSARG OFTA) 95% (6.5M users), 6 mobile network operators, 419, G customers Four 3G licences issued; 3G expected to be rolled out this year E.g. mobile betting Digital entertainment, e.g. mobile phone games B2B, G2B, G2G e-commerce e (beyond B2C and G2C) Interoperability framework for government joined-up services Open standards: ebxml, Web Services Open source e-commerce e software How to help SMEs to do B2B or G2B? 98% of 335K businesses are SMEs Oct 2003 easia Forum, Oct 2003, Taipei 22
23 Thank you cecid.hku.hk URL: cecid.hku.hk
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