The "Lorentz" EC Task Force and the Measurement of Electronic Commerce
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From this document you will learn the answers to the following questions:
What time period did the household use the internet?
What type of emulator was used in the early days of the internet?
What did households without a PC have?
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1 Defining and Measuring Electronic Commerce The "Lorentz" EC Task Force and the Measurement of Electronic Commerce Daniel Kaplan 1
2 The "Mission Commerce Electronique" Created by the French Minister of Economy, Finance and Industry 1st report in January 1998 Update report in February 1999 A collective endeavour: 20 workgroups close to 300 participants: Industry, Associations, Government 2
3 The "Measurement and Trends" Working Group November 1998 to January 1999 Very diverse participation: Gov. Agencies : INSEE, SESSI, Direction de la prévision, DGCCRF Associations : AFTELCE, Edifrance, Geste, IAB, ISOC France, OC2E, OUI, SEVPCD Private data producers : Médiangles, e- Conseil 3
4 Objectives Identify EC indicators commonly understood, reliable, maintainable and (if possible) internationally comparable Create and publish these indicators Identify the means to maintain these indicators over time 4
5 Why Do We Need EC Indicators? A public, freely accessible base of common definitions and statistics Propose "standard" definitions and methodologies to data producers Help end-users understand the statistics Contribute to international discussions Identify data which need to be collected 5
6 Public Policy Objectives A common ground for discussions between Government, Industry and Consumers Better understanding of economic trends Measure France s standing in EC Take the right regulatory (non-)decisions Provide economic agents with better information and thus contribute to EC growth 6
7 Limits Indicators must be published regularly Simplicity, maintainability Indicators must be published for free Must not compete with public and private data producers Avoid confusion between "indicators" and "data that we need" 7
8 Defining E.C. "Narrow" definition, better adapted to measurement Mission Commerce Electronique Online Relationships Prospects Clients Suppliers... Online Ordering (with or without online payment) Online Buying and Paying "Extensive" definition: more accurate, but harder to measure Bill payment (unrelated to online purchases) Offline transactions related to online activities (phone 8 ordering...) Offline activities triggered by online orders (ex. delivery)
9 Defining Electronic Commerce (2) An "operational" definition: "For measurement purposes, Electronic Commerce will be defined as all traderelated transactions carried on an open electronic network through the use of computers or other interactive devices". 9
10 EC Indicators Background Data (1) 1- Background Data: Potential Consumers 1.1- Household Equipment INDICATOR DEFINITION / SUB-CLASSIFICATIONS (SC) REFERENCE METHODOLOGY /IES IMPORTANCE AVAILABILITY / QUALITY COMPARA- BILITY C1.1- PC Households C1.2- Internet Households C1.3- Minitel households C1.4- Digital TV households Households equipped with a PC SC : with / without modem Household with a paying Internet account SC : including / excluding trial periods Number of households equipped with Minitel or PC Minitel emulators SC : Minitel / PC emulator Households subscribing to a paying Digital TV offer SC : cable / satellite ISP surveys and/or declarations (Minitel) 2 (emulator) Operator declarations NS
11 1.2- Individual usage INDICATOR DEFINITION / SUB-CLASSIFICATIONS (SC) EC Indicators Background Data (2) REFERENCE METHODOLOGY /IES IMPORTANCE AVAILABILITY / QUALITY COMPARA- BILITY C1.5- Internauts C1.6- Minitelists C1.7- Interactive TV users Persons having used the Internet in a recent period SC : all ages / older than X SC : only / Web / others SC : professional / private use SC : (main?) access home / office / school / public places... Persons having used Minitel services (besides the Electronic Directory) in a recent period SC : professional / private use SC : (main?) access home / office Persons having used Interactive TV in a recent period SC: including / excluding PPV (NB : "recency" and minimal age to be defined consistently among surveys) (NB : "recency" and minimal age to be defined consistently among surveys) Operator declarations (NB : "recency" and minimal age to be defined consistently among surveys) (FT "barometer" not updated) 2 (short term) 4 (medium term) NS
12 2- Background Data: Organizations Equipment and Usage Mission Commerce Electronique EC Indicators Background Data (3) INDICATOR DEFINITION / SUB-CLASSIFICATIONS (SC) REFERENCE METHODOLOGY /IES IMPORTANCE AVAILABILITY / QUALITY COMPARA- BILITY C2.1- ICT Investment C2.2- Corporate computer and Internet equipment Market for Information and Communications Technology SC : hardware / software / services SC : information processing / telecommunications / multimedia SC : companies / administrations / households Share of companies, employees, positions... equipped with computers and Internet access SC : PCs / other terminals SC : not connected / only / full Internet SC : by size, sector SC : by employee category Market measures (EITO/IDC) (NB : should computers using the Internet for totally automized data transfers be included?)
13 EC Indicators Background Data (4) 3- Background Data: Websites INDICATOR DEFINITION / SUB-CLASSIFICATIONS (SC) C3.1- Number of Websites Number of Websites SC : "full" sites (domain names) / "personal homepages" (directories under a domain name) REFERENCE METHODOLOGY /IES Technical statistics (note : beware of the ".com" bias) Hosts/ISPs declarations (personal homepages) Search engines database exploitation IMPORTANCE AVAILABILITY / QUALITY COMPARA- BILITY
14 EC Indicators (1) 1- The Supply Side: Enterprises Using EC INDICATOR DEFINITION / SUB-CLASSIFICATIONS (SC) REFERENCE METHODOLOGY /IES IMPORTANCE AVAILABILITY / QUALITY COMPARA- BILITY I1.1- Commercial websites Number of commercial websites SC : by company size, sector SC : marketing / sales (transactions) / customer relationship... Technical statistics (use of secure protocols) Search engine databases I1.2- Commercial Minitel services Number of commercial Minitel services SC : "kiosk" / others Service directory database 2 1 NS SC : marketing / sales (transactions) / customer relationship... I1.3- Companies with some use of Electronic Commerce Companies buying or selling through EC SC : by company size, sector (NB : often led on a sectorial basis) SC : purchases (general supplies / production) / sales SC : Minitel / Web / EDI (VAN / Internet) / / others 14
15 EC Indicators (2) 2- Business-to-Business Electronic Commerce INDICATOR DEFINITION / SUB-CLASSIFICATIONS (SC) I2.1- Business-to-Business Electronic Transactions Volume Total value of B to B electronic sales and purchases SC : by company size, sector SC : purchases (general supplies / production) / sales SC : Minitel / Web / EDI (VAN / Internet) / / others REFERENCE METHODOLOGY /IES (NB : often led on a sectorial basis) IMPORTANCE AVAILABILITY / QUALITY COMPARA- BILITY
16 EC Indicators (3) 3- Business-to-Consumer Electronic Commerce INDICATOR DEFINITION / SUB-CLASSIFICATIONS (SC) REFERENCE METHODOLOGY /IES IMPORTANCE AVAILABILITY / QUALITY COMPARA- BILITY I3.1- Individual EC consumers Number of consumers who prepare or execute their purchases online SC : information prior to a purchase / purchase / payment SC : information / services / goods Purchase on local / foreign sites I3.2- Business-to-Consumer Electronic Transactions Volume Total value of B to C electronic purchases SC : purchase / payment SC : information / services / goods of consumers or suppliers Payment platforms data SC : Minitel / Web / ITV 16
17 EC Indicators (4) 4- Advertising INDICATOR DEFINITION / SUB-CLASSIFICATIONS (SC) I4.1- Internet Advertising Amount of Internet-related advertising investments SC : banner advertising / other forms REFERENCE METHODOLOGY /IES of sites and advertisers IMPORTANCE AVAILABILITY / QUALITY COMPARA- BILITY (IAB) 17
18 A Work In Progress Objectives Refine definitions/indicators, now and over time Bring them to "operational" level Publication and maintenance Work on international comparability Identify a permanent structure in which to maintain the indicators Gathering Industry, Association, Gov. Agencies 18
19 Actions Publish V1 : Refine in order to reach a more operational V2 "Suggested requirements" towards public and private data producers Requests to potential sources Mobilize public statistical offices Participate to EC / OECD workgroups 19
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