ICT, Competitiveness and Trade Development

V6
ICT, Competitiveness and
Trade Development:
What Works and What Does Not
Discussion Paper for the
World Summit on Information Society
by Alwyn Didar Singh
December 2003
International Trade Centre
Geneva

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Content
Executive Summary............................................................ Error! Bookmark not defined.
Introduction........................................................................... Error! Bookmark not defined.
1.1 Definitions............................................................. Error! Bookmark not defined.
Chapter Two: E, Competitiveness and Development Error! Bookmark not defined.
2.1 E and Trade Competitiveness........................... Error! Bookmark not defined.
2.2 International Trade concerns ............................ Error! Bookmark not defined.
Chapter Three: E-Strategies to promote e-Trade......... Error! Bookmark not defined.
3.1 Complexities and levels of relationship between E and Business ...Error!
Bookmark not defined.
3.2 Putting E to work................................................. Error! Bookmark not defined.
Phase 1 : Experimentation............................. Error! Bookmark not defined.
Phase 2 : Consolidation.................................. Error! Bookmark not defined.
Phase 3 : Integration and Dissemination ... Error! Bookmark not defined.
3.3 A framework for e-Trade readiness................ Error! Bookmark not defined.
Chapter Four: Strategies for Development ................... Error! Bookmark not defined.
Chapter Five: Practices which work and practices which don’t....Error! Bookmark
not defined.
Chapter Six: What’s next and topic for discussion..... Error! Bookmark not defined.
References............................................................................. Error! Bookmark not defined.
Annexes.................................................................................. Error! Bookmark not defined.
Annex 1 : ........................................................................... Error! Bookmark not defined.

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The designations employed and the presentation of material in this publication do not imply
the expression of any opinion whatsoever on the part of the International Trade Centre
UNCTAD/WTO concerning the legal status of any country, territory, city or area or of its
authorities, or concerning the delimitation of its frontiers or boundaries.
Mention of firm names, commercial products and brand names does not imply the
endorsement of ITC.
The opinions expressed are those of the author and do not necessarily reflect the views of
ITC.

1
Executive Summary
The potential of e-Commerce and e-Trade is no longer a matter of debate. Despite the initial
hype and subsequent dot-com crash, it has moved into the realm of a noteworthy reality.
Since e-Commerce already affects the economic relations between and within countries and
since it will continue to do so more and more, e-Commerce has to be considered as a matter
of key policy consideration. As such, developing countries must not only appreciate and
address its potential for industrial and trade growth, but also consider it as a means of
survival in this new world of Internet-based business and trade.
This paper seeks to draw attention to a number of factors that are shaping the two-way
interaction between the emerging new economic landscape – the changing market place, on
one hand and the application and potential of ‘E’ or ICT for trade, on the other. Implicit to the
analysis is the question of whether the role of trade development and promotion in the new
economy differs in any significant manner from the role it has hitherto assumed. There is little
doubt that ICTs and the changing marketplace are interrelated as is the process of
technological innovation and the diffusion of ideas, products, services and best practices that
innovation entails.
For SMEs the impact and context of ICT essentially implies the Internet1
. On this rationale
the paper focuses on the Internet and e-Commerce related issues and the potential for SMEs
in e-Trade. It seeks to identify what works for SMEs in developing and transition economies
and suggests a methodology that could help these SMEs use that information and
knowledge for ensuring success in this new digital economy.
This new economy which is rapidly evolving and changing all the rules of the marketplace;
offering a powerful technology (ICT) that itself turns outmoded ever so often and presents
itself in forms that impact and change the process and cultures of enterprises themselves.
Ultimately ICT is a tool. A highly advanced and powerful tool that is changing the
marketplace and at the same time providing tools to adapt to and gain from that change.
Learning to use and adapt that tool to your requirements will determine the level of success
1
An important feature of the ICT industry/sector lies in the growing technological interdependence and
convergence between its three core segments i.e. computer hardware, software and telecommunications
equipment. Growing convergence and interdependence is particularly evident in the essential role of each
segment in the establishment and development of the Internet.

2
that you will have in this new economy. Each enterprise (and nation) must identify what
works for them. Several have already done so and tasted the flavour of triumph. This
monograph based on an analysis of 15 e-Trade country studies presents the essence of that
success. Using an e-Trade Readiness Matrix it lists out ‘what works and what does not’ and
suggests that till such time you can yourself build capacity to analyses and assess what
works for you, use these recommendations as a guide.
The objectives and structure of this discussion paper endeavour to follow this analysis. The
Introduction sets the stage by defining and raising the major issues of ‘E’. Chapter Two
describes E and its relationship with competitiveness and development as also the reality of
the digital divide between and within nations. Chapter Three seeks to explain the
complexities of the relations between E and trade development and some of the tools that
have been developed to address the digital divide by ITC – particularly for SMEs. It also
presents the key factors that determine the e-Trade readiness of economies and SMEs and
presents a simple framework for carrying out that assessment at country level. Chapter Four
expounds an uncomplicated formula for e-Trade gap identification that can then be used for
developing strategies for trade development. Based on the 15-country research and the e-
Trade development matrix, lessons from both successes and failures are highlighted in a
tabulation of what works and what does not. The monograph concludes by placing forward a
hypothesis that there are key factors for e-Trade that need to be put in place for an
integrated and consolidated development. While countries work at this, SMEs can and
should develop intermediate strategies that can work around the gaps and find solutions and
opportunities even in an emergent environment that can be exploited for gainful result.
Research has shown that there are many who have successfully done so and continue to.
That is the primary lesson of this treatise.

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1. Introduction
What works and what does not in e-facilitated trade development, as evidenced by the
programmes and activities spawned from ITC’s vision of e-facilitated trade development, and
in the context of e-enabled trade through enterprises and in particular SMEs in developing
countries, is the theme of this paper.
This theme should be relevant to government strategy-makers, industry representatives, e-
market representatives, SME representatives, e-solution providers and international
agencies promoting the adoption of ICTs.
There are several ways of attempting to address the issue of what works and what does not.
One commonly used approach is to list a series of good examples of SMEs and highlight
what they have done right. In doing so, one can assume that these are ‘good practices’ and
other enterprises or SMEs should take them as models to ensure their own success.
Another such approach which can be used independently or concurrently with the previous
one, consists in adopting a paradigm for the usage of e -, developing it and deriving guiding
principles which can help practitioners seeking to implement e - and encourage them to
maximise its benefits.
In support of this paradigm approach, the paper will consider three levels of abstraction in its
study:
- Policy and regulatory measures that favour the development of e-Business practices,
e-Commerce and e-Trade and harmonise national approaches in diverse areas
including telecommunications, trade, competition, intellectual property, privacy and
security, which constitute the ‘macro level’.
- Trade facilitation or trade support initiatives, which constitute the ‘meso level’.
- Enterprise initiatives, which constitute the ‘micro level’.
1.1 Definitions
What do we understand by ‘e’? Today, just about everything has been given an ‘e’ context:
From e-commerce to e-business; from e-literacy to e-enabled, from e-government to e-
democracy. In name and concept, the old terms and what they implied are now seen in a
new perspective that is partly already a new reality and partly still only hope or vision.
The oft-used prefix ‘e-‘ denotes the interaction of the manipulation of information,
currently mostly digital representations in electronic form, with the term which follows.
This explains e-literacy as being literacy in the manipulation of digital information, and e-
government as the manipulation of digital information for the purpose of governing.
As such, e- can be considered as a way of doing things, as opposed to the thing to do.
Amongst the many ways of doing things, its popularity as a desirable way lies with the fact
that more often than not it is either more efficient or more effective than the present way, or
even both, and sometimes it even allows to do things which were not possible before. As a
corollary, e- cannot convert the wrong thing to do into the right one; it can only do better the
right thing to do.
By definition, e-Business is the application of the manipulation of digital information to
business processes. Its benefits come from the efficiency gain and increase in effectiveness
of a company’s internal processes and can be extended to the business processes of
suppliers and customers. Again, there is no successful e-business without a proper business

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behind it. However there is also another level to e – the e mindset or perspective that seeks
to adapt processes and business cultures to the rapidly changing digital or new economy
market place. In doing the first properly helps to ensure that the latter will also follow. That is
one of the practices ‘that works’.
An e-Enterprise (participating in e-Business) could be defined as an enterprise prepared to
conduct commerce and trade in this new economy. This means it has created and embraced
a business strategy informed by changing economics, new opportunities, and new threats. It
has laid down the necessary technology infrastructure to support new business processes. It
has used information technology to hone internal business processes. Thus prepared, the
enterprise is able to conduct e-Commerce: "the commercial exchange of value (money,
goods, services, or information) between an enterprise and an external entity (an upstream
supplier, a partner, or a down-stream customer) over a universal, ubiquitous electronic
medium." 2
Whenever a business manipulates information via digital representations in any aspect of its
commercial activity, essentially order taking and order processing but also pre-sales
information and after-sale service and support, it is considered to be engaging in e-
Commerce. E-Commerce reduces transaction costs3
, and increases sales by increasing
reach or making new businesses altogether possible4
. It is thus useful for existing businesses
as well as an opportunity for new businesses, and as such, e-Commerce is far more about
strategy and business management than it is about technology.
E-Trade is simply e-commerce across international borders5
.
And finally, e-facilitated trade development is the promotion of ‘e’ as a way to increase
competitiveness and develop trade.
2
Doyle et al, 2000
3 E-Commerce increases efficiency in the use of time and procedures through the use of technologies ranging
from email and instant chat to EDI (Electronic Data Interchange) and automated supply chains. EDI has a role
here both for business to business as well as for governments, e.g. quicker and smoother trade transactions for
businesses by using EDI for customs clearance, trade procedures, etc.
4 New businesses, such as IT enabled businesses (based on information technology and linked through a network
for digital transmission and exchange), call-centres (network linked service centres that customers can access
through the Internet for information, guidance, maintenance and services such as bookings, reservations,
software support etc.), software and maintenance services, as well as ‘digital commerce’ (goods, services and
digitised transactions that are completed and supplied on-line).
5
Singh, A. D., 2000, Coming to terms with the Magic letter ‘e’, ITC Executive Forum E Brief ITC, Geneva

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2. Chapter Two: E, Competitiveness and Development
In a rapidly globalising world, the very factors and definitions of competitiveness and
competence are themselves undergoing fundamental change. Enterprises and especially
SMEs in developing and transition economies are mostly not even aware of these changes
and new requirements. To be ‘E’ compatible itself is grossly misunderstood or misinterpreted.
This chapter will seek to establish the correlation between E and competitiveness to show
the value of E for development. The rationale in this chapter is that the expansion of E in a
country should have a direct effect on competitiveness. This, in turn, should have an impact
on trade growth and development. Since overall development is a much larger subject, this
paper will focus specifically on E in Trade development based on the premise that trade
development contributes to the overall development of an economy.
2.1 E and Trade Competitiveness
Businesses with an appropriate strategy which gives them a fair competitiveness based on
negotiating power, have the potential of becoming more efficient or more effective with e-,
and sometimes are even capable of implementing strategies which they could not implement
at all without e-, thus becoming even more competitive on domestic markets as well as
international (trade) markets.
Because such business strategies require access to resources appropriate for the utilisation
of ICTs, developing and transition economies which wish to promote and develop the
competitiveness of their businesses need to ensure that the environment (i.e. the pool of
resources) is conducive to e-based or e-enhanced competitiveness.
It is in this context that in this scenario of sharp technological intensity of e-business that e-
trade development (and by that criteria or implication – governments, trade promotion
institutions and development agencies) has in recent years been assigned the task of helping
enterprises, particularly SMEs, anticipate, aid, benefit from, and respond to, ICT-driven
changes.
2.3 Addressing the Digital Divide
Differences in the diffusion of information and communications technologies are exacerbating
the disparity both between countries and across regions and social groups within countries.
The OECD in a recent paper6
has argued that such differential rates of technology diffusion
are a persistent fact of economic history, however the advent of the Internet and its
perceived economic significance have served to focus attention on narrowing the digital
divide. While electronic commerce offers opportunities to increase productivity and to
improve access to information and to markets, developing countries and small and medium
size businesses are usually at a disadvantage to reap these benefits due to poor
telecommunication infrastructure, lack of appropriate IT equipment and software, and
inadequate skills to use and support e-Commerce applications. Addressing these issues
therefore is the prime responsibility of governments and agencies.
It is widely recognised that there would be significant benefits all round if people and
enterprises of developing and emerging economies are able to take full advantage of the
Internet and other information and communication technologies.
6
Tigre and 0’Connor, 2002

6
Even though there have been some limited initiatives on the front of e-commerce in almost
all developing countries and economies in transition, these have yet to see an organized and
concerted effort towards this direction. This is mainly because e-commerce issues cut across
a broad range of technical, legal, economic and institutional questions for which the
appropriate responses are yet to be devised. At the same time, government efforts to
accelerate such development have been tardy.
One should thus be aware that e-commerce issues should not be treated solely from the ICT
perspective. These technologies no doubt enable e-commerce but there are many other
issues, mostly non-technical, that must be taken into account while trying to formulate
policies conducive to the growth of e-commerce.
As economies around the world continue to be driven by ideas and powered by technology, it
is imperative that developing countries too take necessary steps to create an enabling
environment where they find themselves better positioned to benefit from competitive
advantage offered by ICT and probably its most significant product, eCommerce. In fact the
need to adapt to new technological advancement especially with regards to information and
communication technologies is fast becoming an economic imperative rather than a mere
question of choice or options.
Before looking at strategies for trade development at the country level it is important to first
assess the level of preparedness of the economy and of enterprises.
There are also a large number of position papers with recommendations for how a country
can become 'e-ready' and effectively use and benefit from ICTs. These perspectives range
from a focus on business and export-oriented growth with industry self-regulation, to strong
government consumer protections and equitable access programmes, to local content and
cultural reception of ICTs. These underlying models could easily be turned into assessment
tools. In fact, many of the models have corresponding assessment surveys (for example, a
business / export / self-regulation focus underpins APEC's survey). This report does not seek
to analyze them further.
2.2 International Trade concerns
E-Commerce is also an agenda of concern for developing and transition countries in the
WTO. The issues of e-Commerce/e-Trade and its implications on the international trade
regime are mainly of tariff and access. Does the global environment ensure equal right of
entry and right of use? Unfortunately not. Can the WTO and the International agencies
ensure such access to all their members? Probably not.
Though there is little doubt that e-Commerce is an important and major issue for world trade,
there are several aspects of it that need to be further studied especially from the point of view
of their implications for the developing world. Most of the e-Commerce and Internet technical
and economic developments on the one hand and negotiations and discussions at the WTO,
ITU etc. on the other, are taking place in the absence of a broader more integrated
framework which takes account of the needs of and potential for developing countries with
regard to e-Commerce and the information and communications technologies which facilitate
it.
There are several impediments to the availability of and access of this medium in developing
countries and unless these are addressed simultaneously, the gap between the developed
and developing world and that between the poor and rich will only widen. Therefore, while
considering the promotion of e-Commerce as part of the world trade agenda, the issues of

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infrastructure, investment, availability and marginal cost of hardware and software,
awareness, education and training need to be also addressed and redressed.
There is another angle to this. For developing and transition economies e-Commerce can
itself become a non-tariff barrier. As more and more international trade and supply chains
become digital over the Internet, those enterprises not part of them either stand to lose the
trade opportunity or else pay a higher price or charge for the service or trade deal (as a ‘fine’
for not being e-compatible). There are several examples of developing country suppliers
receiving payments electronically and banks having to make special dispensations (and
therefore charging an additional fee) from them till such time as the banking regulations and
arrangements for such transactions are not in place. There are also cases of large buying
houses in the West charging an extra fee is suppliers do not conform to the requirements of
their digital procedures. In some cases this could result in the buying arrangement itself
being dropped.

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3. Chapter Three: E-Strategies to promote e-Trade
It is today accepted that E-Business is the way of the future and has tremendous potential for
developing and transition economies - for businesses in the new digital economy and for
governments as a tool for development. The issue is whether the enterprises and
governments in these economies will be able to put in place strategies to ensure
competitiveness and development.
To survive in the digital economy, SMEs need to design a strategy which takes e- into
account, as well as have access to the resources necessary for the implementation of e-
Business, e-Commerce and e-Trade, according to the requirements of this strategy. A proper
strategy as well as the proper balance of the human, information & know-how, physical
assets, and networks & relationships resources will make business e-ready and globally
competitive.
3.1 Complexities and levels of relationship between E and Business
Such startegic designing requires understanding of the complexities of E in so far as it can
and does impact business. E impacts businesses both directly and indirectly. It can do so in
three ways7
:
o in business
o as a business
o for business
The first is obvious and has already been explained in the definition of E and e-Commerce.
e- in business is the way E can have a direct impact on businesses through the
improvement of the effectiveness or efficiency (or both) of the business’ production or
marketing processes, which directly lead to competitiveness improvements. As earlier
mentioned, here the impact is not restricted to the technology and in fact effects the very
business culture itself.
The second is where E is the business itself. This e- as business is the way E can have an
impact on businesses: directly for the business which offers e-products or e-services, and
indirectly for the businesses which benefit from these e-products and e-services. This e-
Business is the emerging and new opportunities that the ICT revolution and especially the
Internet have created. This is leading to entirely new forms and models of businesses that
earlier did not exist itself. For example, the very successful, Internet auctions; digitised e-
Marketplaces; digital products etc.
And finally e- for business is the way E can have an impact on businesses indirectly through
the business environment in terms of the availability of quality e-resources or the e-
availability of non-e resources, e-government services, e-specific legal environment, etc. The
creation and nurturing of such an environment is an essential responsibility for governments
and development agencies and one of the key factors of success in the E world.
The basic tenet 8
here is simple:
- Human and economic development are the primary goals of societies
- Trade fosters economic development
- Competitive businesses are engines of trade
- E can help businesses be competitive
7
As identified within the e-Trade readiness paradigm developed by ITC’s ‘e-Trade Bridge’ programme.
8
As stated within the e-Trade readiness paradigm developed within ITC’s ‘e-Trade Bridge’ programme.

9
For e to help businesses become competitive, institutions at the following levels must
take initiatives:
o Macro level (Government)
o Meso level (Support institutions)
o Micro level (SMEs)
These initiatives serve one or more of the following purposes
o e- for business
o e- as business
o e- in business
The following matrix outlines the relationships between levels and purposes within this
paradigm9
:
To select the most effective and efficient initiative, tools and measures are needed to
determine the present situation (assessment). Some tools and measurements work better
than others; and experience shows that given a specific situation some initiatives are more
effective and efficient than others.
3.2 Putting “e” to work
Putting ‘e-‘ to work for trade development is the facilitation of trade with ‘e-‘, i.e. e-facilitated
trade development. This includes promoting the use of ‘e-‘ to develop trade through the
9
As derived within the e-Trade readiness paradigm developed by ITC’s ‘e-Trade Bridge’ programme.
e for business e-as business e in business
Macro level
Initiatives taken by the macro
level institutions concerning
resource creation to facilitate
the utilisation of ICT by SMEs.
Policies, strategies concerning the
creation of a pool of resources
which are needed by SMES to
utlise ICTs (human, financial,
physical assets, information &
know-how, and networks &
relationships)
level to institutionalise
businesses dealing in e.
National telecommunication
companies, national internet
access providers, etc.)
level institutions that use e in
the management of their
busineses. Using ICTs to
conduct the transactions of macro
level institutions (government
procurement, information
dissemination, on-line
administrative procedures, etc.)
Meso level
Initiatives taken by the meso
level institutions concerning
resource allocation to facilitate
the utilisation of ICT by SMEs .
Provision of resources to SMEs
(HR training on e from institutions,
financial support for e from the
finance organizations, etc.)
Initiatives by meso level
institutions that use e to
conduct their business . Using
ICTs to produce and market
products and services (training on-
line, selling equipment on-line, on-
line financing, etc.)
Micro level
Initiatives taken by SMEs
concerning resource
acquisition to facilitate the
utilisation of ICT. Measures by
SMEs to facilitate a paradigm shift
enabling ICT usage
Initiatives by SMES to utilise
ICTs to manage their business.
Digitisation of management
(planning, execution and control of
the resources of a business)
and/or business processes
(production and marketing)
Initiatives by meso level
institutions in the e-industry.
Enterprises whose businesses are
enabled by ICTs (ISPs, web
designers, solution providers,
portal managers, etc.)

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improvement of competitiveness, as well as facilitating e-Trade, and also naturally includes
using ‘e-‘ within the facilitation process and activities themselves.
The benefits derived from the appropriate use of ICTs in terms of improving the effectiveness
and efficiency of international trade are now so compelling that developing and transition
economies may no longer be able to sustain a competitive edge without them.
In the face of these challenges, and since the development of national capacities for
improving the trade performance of businesses is ITC's overriding objective, ITC has been
playing an important role to ensure that partner country enterprises receive practical
assistance and unbiased advice on when and how to use these new technologies to
compete internationally. ITC has therefore been focusing on the SME sector in order to drive
and maintain growth by building institutional and individual/enterprise capacities in
developing countries and economies in transition.
Of course, the Internet is much more than just a medium of communication, and has yielded
innovations in products, processes and markets. By 2000, the dramatic changes in the
international marketplace prompted ITC to examine how the Internet was affecting
developing country SMEs. During the past four years therefore, ITC has experimented with
doing old business in new ways and engaging in completely new businesses – for itself
and for its development partners, to look at the changing marketplace and experiment with
ways to use “e” within business as well as develop new products and services that exploit the
benefits of information and communications technology.
This has been an evolutionary process and the lessons learned have been used to develop
e-working practices. The first phase was characterized by experimentation, the second by
skills development and consolidation. The third Phase of e-working is expected to be
characterized by integration and dissemination.
Phase 1: Experimentation
ITC’s early undertakings introduced the use of ICTs for the purpose of generating and
disseminating information which could impact competitiveness, such as its Market News
Service.
Market Intelligence news service
ITC’s Market News Service has delivered market intelligence on green bean prices to Kenyan farmers
to help them achieve price premiums. This information on commodity product prices is collated and
produced from ITC headquarters and then sent via e-mail, fax and hard copy all over the world. The
MNS Market Updates are often broadcast on radio to reach farmers more efficiently over a wider
catchment area.
The theme of the ITC’s second Executive Forum in 2000 was “Export Development in the
Digital Economy”. The Executive Forum provided the ideal mechanism to bring together key
private and public sector stakeholders across a range of developing countries to explore the
needs, challenges and solutions for succeeding in the new e-economy.
Old Business in New Ways
ITC initiated a project in December 1999 to help 315 speciality coffee producers in Brazil gain
experience of using the Internet to conduct coffee auctions. Coffee auctions are, of course,
commonplace in the coffee industry. However very few of the stakeholders/clients understood the
impact of new B2B and B2C trading practices on the auction process. The results of this experiment
were very encouraging. The producers involved were able to achieve a price premium of 40%, raise
awareness of their quality and gain experience in the use of one form of electronic trading platform.
This activity still lives on today as can be seen on www.cupofexcellence.org .

11
Even at this early stage in the development of the dot.com phenomenon, ITC had initiated a
number of e-trade projects. The first noteworthy project was the development of a website to
promote artisanal or craft products from developing countries. The Virtual Exhibition was a
non-transactional information portal providing an electronic showcase for craft producers.
New Business Opportunities
ITC conducted in-depth research on the potential for the ICT hardware, software and service sectors
in a selected number of transition economies. The results of this research were shared openly with
businesses, government representatives and trade associations in national business roundtables.
These ICT Business Roundtables have proven extremely effective in helping partner countries take
stock of their ICT assets and develop trade strategies based on these.
A Cyber-marketing Guide and the Secrets of Electronic Commerce quickly followed this
modest first attempt. The Secrets of e-Commerce is a business guide explaining the ins and
outs of e-commerce in language which the layman can understand. This guide has been
adapted at the country level and is now in circulation in several countries.
Concurrently, ITC explored methodologies to maximise the adoption of ICTs by partner
countries and their SMEs. The result of this exercise was ITC’s Strategy for e-Facilitated
Trade which advocates creating awareness, building knowledge, and creating
competence in e-trade.
Phase 2: Consolidation
Based on these early experiences, and ITC’s e-Facilitated Trade Strategy, a more focused
approach was conceived, i.e. the multi-donor funded e-Trade Bridge programme for SMEs.
This programme offers a portfolio of information, events, and training and advisory services
to national governments and trade support institutions to help them encourage and make real
the e-trade ambitions of SMEs. From earlier use of e-tools for trade development the
spotlight shifted to e-tools for e-Trade development (see details in Annex).
Within this programme, new products and services have been developed which can now be
delivered through national partners to build e-trade capacities in developing countries. These
include national e-trade country reports, e-Business resource book/DVD, diagnostic tools for
use by SME advisers, cases on ICT implementation to be used as models for replication,
new e-trade training materials and guidelines for hosting awareness raising seminars and
training events (see annex for details). The programme is now active in 30 countries. This
particular report is based on an analysis of 15 country studies and one regional report
completed as part of this initiative.
In addition, ITC is developing other complementary e-trade activities including, for example,
research on the impact of B2B e-trade platforms. This will have a particular relevance to intra
and inter-regional trade, as well as the ongoing trade in commodity products. In the area of
trade law, an E-Commerce Legal Kit has been developed to help SME managers understand
the significance of e-commerce with respect to commercial contracts and dispute resolution.
ITC is also developing new tools to promote e-tradeable services and adapting some core
products to meet the needs of marginalised economic actors (e.g. women entrepreneurs,
poor producers).
Phase 3: Integration and Dissemination
ITC is now poised to enter the third development phase of putting e- to work. As
development agencies, countries and SMEs become more aware of the potentialities,
challenges and limitations of e-facilitated trade, their focus shifts from access to e- to
implementation of e- based on what works and wherever it makes sense. This paper and the
interactions at WSIS are steps in this direction.

12
So, while ITC should still pursue its efforts to create awareness and build knowledge with
partner countries which still require these, ITC should focus on integrating and disseminating
e-trade competence to SMEs on a large scale within partner countries which have reached
or already have the level of awareness of e- and the level of knowledge which they desire.
For this to happen, the tools developed to improve the e-trade competence of SMEs need to
be further refined and adapted through use, and a programme designed for the purpose of
creating competence in e-Trade, such as e-Trade Bridge’s “e-nabing SMEs” component
should be undertaken on a large scale. From an e-Trade Bridge the programme could now
transcend to an e-Trade ‘Highway’ for SMEs to cruise on.
This falls perfectly in line with ITC’s strategy for e-facilitated trade evoked earlier in the
experimentation phase.
3.4 Conditions and factors for e-Trade Development
Levels of E adoption
In order to place in perspective the key factors required for implementing E at the country
level for trade development, it is important to first asses the degree of adoption of E in the
country or economy. To do this ITC has evolved the concept of an E-Trade Balance Sheet
that serves as a measure of development or success at three levels, i.e. the enterprise or
micro level; the trade support or meso level; and the overall environment or macro level. This
concept finds depiction in the figure below which combines the three levels and an ALOR
analysis (similar to a SWOT) indicative of the positive and negative factors that need to be
addressed, i.e. the assets and liabilities of each level, as well as the opportunities and threats
used to consider further plans and corrective actions to be taken.
Micro
(enterprise)
Meso
(trade support network)
Macro
(national environment)
E-Trade Balance Sheet
Assets Liabilities
RisksOpportunities

13
Key Factors
In carrying out such an assessment, the research findings themselves serve as guidelines
indicative of the gaps or divides that need to be ‘bridged’. In doing so the assessment or
questionnaires used must address the key factors that need to be in place for the successful
implementation of e-Trade development for SMEs. These include inter alia :
Micro Level (Enterprise level)
1. Attitude, culture and use of IT in industry
 Desire and motivation to use IT
 International orientation (export focus)
 Actual use of IT in industry
2. e-Professionals availability and e-Trade
capabilities
 IT professionals availability
 Use of websites / e-commerce
 General level of IT skills of workforce
3. e-Business environment including for e-
trade
 Overall external business environment
in the economy
 e-Banking availability
 Venture capital availability and
Investment climate
 Conformity to laws
E-Trade requires an enabling environment that is
dependant on several inputs – IT services, banking and
financial framework, regulatory and investment climate
and a favourable and supportive bureaucracy. The
research would seek to list out these factors for each
country.
At enterprise level it is also important to asses the actual
use of IT in industry as well as the status of the IT
industry. Is there a favourable attitude towards this
industry and technology and are enterprises aware of the
benefits it can bring?
At enterprise level the availability of professionals is
crucial – both IT and management trained. Are they
readily available and if not are such services such as
website hosting eCommerce enabling, ERP etc. both
available ad affordable and can they workforce adapt to
their usage fairly easily.
Meso level (e-Trade support level)
1. Trade Promotion Agencies
 Initiatives by trade promotional
agencies
 Availability of data & trends
2. ICT Infrastructure
 Connectivity and costs
 Cost and affordability of PCs
 Incubator facility if any
3. HR Framework
 IT training capabilities of universities /
IT institutions
 e-literacy level of the population
E-Trade requires certain basic enabling and supporting
services and infrastructure without which its development
is just not possible. The framework therefore looks at both
the hardware and software aspects of the issue. On the
one hand it examines the telecom infrastructure - the
information highway on which e-Commerce rests and
develops. Since the main issues here are access and the
cost of connectivity, the research seeks to find out the
level of PC penetration, total number of Internet accounts
and the pricing of some comparable connection plans of
the existing ISPs. Initiatives for any incubator type
facilities are also outlined. It also comments of the trade
support services and initiatives by trade promotion
agencies both in the public and private sector.
For the HR framework it looks at the level and quality of IT
education as well as how much of IT-literacy there is in
the country? The latter would impact on the overall growth
of e-Commerce in the country.
Macro Level (Policy Framework)
1. Policy & strategy at national level
 Government policies / strategies
 Government body / Institution leading
the ‘e initiative’
 Government support to trade
associations
Particularly for developing economies, governmental
interventions and strategies are of crucial importance. The
research asks if e-Business is a national priority and if so,
is there a formal policy and strategy and who is leading
the initiative. If government is serious about this then what
is the status of IT in Government and plans to make public
services available to citizens – particularly for trade and

14
2. e-Government initiatives
 e-government initiatives
 use of IT by government
3. Legal & regulatory framework
 Legal framework
 Regulatory bodies
 Certification agencies
commerce.
E-Trade transactions on the Internet require a legal and
regulatory framework. Does the country provide it? In
case of dispute, is redress available and possible through
the existing legal establishment? Are secure transactions
possible and is cyber crime including IPRs being
addressed. These are the questions both investors and
consumers want to address before starting e-Trade.
3.3 A framework for e-Trade readiness
In order to asses the e-Trade readiness of individual countries as well as for comparative
analysis of the weaknesses and strengths of countries, or determining the implementation
domains which will maximise a country’s e-Trade readiness, a simple ranking structure as
outlined below can be used. For a first pass approach, it is presumed that each of the levels
being outlined in the study, i.e. Micro, Meso and Macro are all essential for e-Trade, and that
equal weight is given to each of their components, so that general comparisons across levels
can be performed.
Grading: Factor/component in place or action taken: +++ (3)
Partially in place/Planned but not operationalised: ++ (2)
Not available/No Action Planned yet: + (1)
(The assessment column may also be split into e- for business, e- as business, and e- in
business for a more detailed assessment of e-readiness.)
E-Trade readiness framework
Country X
Macro Level (Policy
Framework)
Policy & strategy at
national level
e-Government initiatives
Legal & regulatory
framework
Macro Level Index -
Meso Level (e-
Trade support
level)
Trade Promotion Agencies
ICT Infrastructure
HR Framework
Meso Level Index -
Micro Level
(Enterprise level
environment)
Attitude, culture and use of
IT in Industry
e-Professionals availability
& e-Trade capabilities
e-Business environment
including for e-trade
Micro Level Index -
National Index -

15
The 15 country studies done as part of the eTrade Bridge programme have been analysed
and ranked on this e-Trade Readiness Matrix. Some of the results of this can be seen at
Annex 4.
The objective here is not to grade individual countries against each other but rather to see
how effective they have been in addressing the core e-Trade Readiness issues which have
been researched in the country studies. This e Trade Framework concept and the matrix
developed therein are based on the premise that each of the key factors has an equal level
of importance or weightage. This is presumed so as the hypothesis of this monograph is that
all the key factors are interlinked and integrated and together they interconnect with each
other to produce an e-enabling environment for e-Trade Development.

16
4. Chapter Four: Strategies for Development
In most developing countries, some form of development goal or another has been achieved
in spite of the fact that the current state of the Macro-Meso-Micro initiatives profile is less
than fully comprehensive. This seems to indicate that development goals are not always
dependent on all initiatives being in place at all three levels, and that there is hope for
achieving some development goals in less than perfect situations. It also implies that there is
value in being able to identify which development goals are achievable given the present
situation, and which are not.
Rather than suggesting a methodology for assessing the present situation and searching on
a global and large scale for development goals compatible with it, let us take a point of view
compatible with the capabilities of individuals involved in economic development even within
small organisations, as not doing so would restrict the applicability of the methodology to
very well funded institutions.
Irrespective of which Macro, Meso, or Micro level it belongs to, each participant in the
development of a country’s economy may have particular development goals and will wish to
identify what actions are necessary in order to maximise the sought after development.
Building on the previous chapter’s e-Trade framework, such economy participants may use
the following gap analysis methodology for the purpose of identifying such necessary
actions.
First, identify the Macro-Meso-Micro profile necessary for a selected development goal, i.e.
using the table below, assess which Macro, Meso and Micro initiatives are necessary for the
achievement of this goal and indicate them with a ‘Y’ or a ‘X’ in the appropriate cells of the
first column.
Second, assess the current situation of initiatives at all three levels and indicate their
presence or completion with a ‘Y’ or a ‘X’ in the appropriate cells of the second column.
Third, review the assessments made so far in the first two columns and identify Gaps, i.e.
situations where initiatives are required for the achievement of ‘Development goal X’ but not
yet implemented, and indicate these gaps with a ‘G’ in the appropriate cells of the third
column.

17
Gap identification
with the
E-Trade readiness framework
Initiativesrequiredfor
‘developmentgoalX’
Currentsituation
IdentifiedGap
Macro Level
(Policy
Framework)
national level
e-Government initiatives
Legal & regulatory
framework
Meso Level
(e-Trade support
level)
Trade Promotion
Agencies
ICT Infrastructure
HR Framework
Micro Level
(Enterprise level
environment)
Attitude, culture and use
of IT in Industry
e-Professionals
availability & e-Trade
capabilities
e-Business environment
Fourth, for each identified Gap, write down a detailed description of the initiative(s) which
would eliminate the Gap when completed, and therefore which would make the selected
development goal achievable. Note that for a given Gap, there can be more than one such
initiative.
Fifth, assess whether the implementation of the required detailed initiatives above is within
the capability of the organisation conducting this analysis. If this is not the case, determine
whether the organisation can form an alliance with another organisation which has the
capability to implement the required initiatives, or whether the organisation can influence
other organisations which in turn can implement these initiatives.
The required initiatives identified in step four, as well as the method of implementation
identified in step five constitute a good basis for developing a strategy capable of achieving
the selected development goal.

18
5. Chapter Five: Practices which work and practices which don’t
The essence of this paper is to highlight areas of strength and weaknesses for the E sector
and at the same time provide the reader from partner countries and institutions with a
summary of what works and what does not for the design, promotion and implementation of
e.
Based on the 15 country studies10
and the regional study11
conducted within the e-Trade
Bridge programme, the following synthesis of practices which work or do not work is
presented from the Macro – Meso – Micro perspective while using the e-paradigm ‘E for
business, e as business, e in business’ 12
What works at the Micro level
 Language does not seem to present a problem as a number of non English speaking
SMEs are developing English web site to access global markets
 SMEs are experimenting with E locally before widening their efforts and offering their
services abroad
What does not work at the Micro level
 Low investment of time and resources in the development of websites generally
speaking
 SMEs not using local language lose local markets opportunities
 SMEs taking up initiatives in e-trade without adequate training or hiring e-
professionals
 SMEs entering the area of e-trade and internet without ensuring sufficient funds to
implement the project successfully
 Higher costs of the electronic payments is an impediment to dealing on line
 B2C projects offering online payments / transactions in an economy which has very
small credit card base
Lessons learned at the micro level
 Unless websites are constantly updated, SMEs can not expect credibility and success
in e-trade
 To be competitive in marketing themselves on the web, SMEs must use best
technologies
 Language is an important issue for SMEs and their website and IT usage must be
adapted depending on the market they seek to access
 Loss of credibility in delayed or poor supply must be avoided at all cost in e-trade
 SMEs must update or hire requisite skills when they begin using new technologies
 Though not always a pre-condition to e-trade and export, ensuring seamless and
reliable transactions are a must for e-trade
 In the e-world just as in the real world financial issues must be adequately addressed
 Competitiveness and special promotions are important issues for developing country
enterprises entering the area of e-trade
 e-commerce startups must be sure of their market before launching web-based
enterprises and meso level financial framework needs to be improved
10
These are (in alphabetical order) El Salvador, Guatemala, Honduras, India, Kazakhstan, Kenya, Kyrgyzstan,
Philippines, Romania, South Africa, Tajikistan, Tanzania, Trinidad and Tobago, Uganda and Vietnam.
11
This was a Regional e-Trade Study for the Caribbean.
12
See annex 2 for the full comparative table on “What works and What does not”

19
-------------------------------------------------------------------------------------------------------------------------------------
What works at the Meso level
 Trade Promotion Agencies helping SMEs create web pages, conducting computer
training courses, promoting crafts and goods made by small entrepreneurs etc. at
their website.
 ISPs offering several varieties of options in terms of speed and cost for internet
connectivity
 Promotion of development of computer centers and cyber-cafes by ISPs, TPOs and
as a business
 Hardware and software, products and services at affordable prices ensured through a
competitive local IT environment for import and manufacturing / assembly.
 Promoting computer / IT training through public and private institutions.
 Governments / banks offering venture capital and loans at a lower interest rate for e-
trade /export oriented projects
 Virtual mall created by a credit card provider that allows online trade
What does not work at the Meso level
 Trade Promotion Agencies attempting to promote e-trade without having adequate
knowledge regarding e-business
 Monopoly telecom services leading to high cost of internet access
 Low PC penetration and high cost of Internet connectivity.
 Curriculum of educational institutions not in sync with ICT developments /
requirements.
 Consumers hesitating to give their personal information on the web or using credit
cards
Lessons learned at the Meso level
 TPAs have an extremely important role in developing and transition economies and
must ensure that they are adequately qualified to promote the right services for SMEs
 Different services such as call centers, BPO services, software, digital products and
services, all require different connectivity and speed options which must be
competitively catered for by the ISP providers
 Competition must be encouraged to ensure the lowering of internet access cost
 ICT and e-trade environment are directly influenced by hardware and software costs
 e-literacy, e-awareness and secure online transactions must be ensured in the local
business environment
----------------------------------------------------------------------------------------------------------------------------------------
What works at the Macro level
 Appointing a nodal agency with a mandate for implementation from the highest
political authority
 Fiscal rebates for hardware importation
 Demand and supply of ICT professionals is more or less balanced in the country
 Adoption of E-Commerce Laws / regulations stipulating that government offices must
provide for electronic transactions in their interaction and processes.
 e-government as a model and business opportunity for SMEs
 Government agencies and TPOs raising the level of awareness of SMEs regarding
legal framework for e-commerce
What does not work at the Macro Level
 Countries announcing a policy / intention to promote e-commerce / e-trade without
working out a strategy / action plan

20
 No incentives to motivate exports through electronic commerce
 Shortage of e-professionals in the country leading to a stifling of e-trade potential.
 Producing qualified and skilled ICT professionals without local local demand leading
to brain migration.
 Government computerizing its departments without setting up inter departmental
linkages and intranets
 SMEs embarking on e-trade without having sufficient knowledge of the laws and
regulations that would impact on their transactions
Lessons learned at the Macro level
 Clearly enumerated e-strategies are a must for developing and transition economies
where government has an important promotional role in ensuring an e-enabling
environment
 Fiscal incentives are a strong motivating factor especially for SMEs in developing
countries
 Not all countries and economies can have the right mix of availability and demand of
e-professionals, therefore having flexible immigration policies may be required in
some economies
 Unless government sets an example within its own house, it can not expect its
citizens to follow suit.
 Introducing e-government promotes not only an e-environment, but is a business
opportunity for the IT sector. It also motivates government employees to learn to use
computers and software.
 Besides the requirement of an e-commerce law, the fact of having one ensures a
positive signal for promoting e-trade
 Setting up a legal framework is not enough without ensuring its enforceability.

21
5. Chapter Seven: What’s next and topic for discussion
There is no simple strategy or solution that can be applied or used across all economies,
especially when the candidates are developing or in transition. The situation in such
countries is both many-sided and changing rapidly. The ICT technologies, Internet and e-
Commerce impact at different levels and therefore must be understood at diverse dimension.
They are technologically information intensive and operate simultaneously at both the micro-
economic (enterprise) level as well as the macro-economic (societal/national) level13
. They
are resulting in new organizational forms that require a completely new organizational culture
and new skills to both operate and design functions. All of these mandate a new perspective
and approach to policy planning and strategy, especially in developing countries and
economies in transition where the development of electronic transactions on the Internet are
still in their infancy and where the resources available have several competing and
compelling demands.
It is also important here to distinguish between policy and strategy. Though one follows from
the other, it is necessary for an eCommerce export strategy framework to aim for a focused
target oriented approach rather than the usual 'volume of promotion' or the 'muddling
through' approach. Developing countries and economies in transition have neither the
resources nor the time to aim at broad-band or ostensibly comprehensive strategy aimed at
transforming their entire economies to match the requirements of the new economy. In this
context short or medium term strategies are essential to gain from the trade and
developmental benefits of eCommerce.
Like any first adventure in uncharted waters, the analysis contained in this paper is by
essence tentative and incomplete in both scope and content. Many issue-areas that are
closely related to the new economy, and which have potentially significant implications for
trade development and future strategic approaches at the enterprise, country or global level,
have not been taken up.
There are of course several good practices that work and many that are not so successful. It
is not the mandate of this monograph to outline every possible initaitive or issue that works or
does not and to list them all. It has however been the intention to use the 15 country studies
as case research to highlight real-life examples of situations and initiatives at the national
level that have a direct bearing on e-Trade competence and development.
The data from the country studies was analysed on the basis of a common framework which
was then developed into a matrix of e-trade readiness. The above analysis at global, regional
and country level has shown that each of the key factors in the frame work are an important
ingredient of the overall e-environment. They are also integrated and interconnected as the
absence of one or the other appears to impact on the balance. The hypothesis this therefore
suggests is:
The more you focus on each factor in the framework the better will be the e-
environment and e-Trade readiness/competence
There is however another angle to this conclusion. Can enterprsies survive and succeed in
e-Trade even when all the key factors are not all in place? This is a distinct possibility as
developing and transition economies may not always have the resources and capacity to
ensure all the factors and initiatives.
13 UNCTAD, 2000

22
Framework issues and their importance at distinctive stages of development
It would therefore be of interest to list out some of the major e-Trade and e-commerce
services that have developed and see how important the key framework issues are in the
context of their importance to that product or service. For the purpose of this matrix, such
importance is adjudged as being of crucial importance or otherwise to the establishment and
maintenance of that e-Trade item. In other words, can the e-Trade service or product be
developed despite the low or nil availability of the key factor? The matrix below seeks to
address this question.
Matrix to show the importance of Framework issues for e-Trade products and services
SoftwareExports
ITenabledservices
eMarketPlaces
DisplayWebsites
DigitalProducts
DigitalSupplychains
Micro Level
(Enterprise
level
environment)
Attitude, culture and
use of IT in Industry Y N Y N Y Y
e-Professionals
capabilities
Y N Y N Y Y
e-Business
environment
including for e-trade N N N N Y Y
Meso Level
(e-Trade
support
level)
Trade Promotional
Agencies
Y Y Y N N N
ICT Infrastructure
N
(not
crucial) N Y Y Y Y
HR Framework
Y Y N N N N
Macro Level
(Policy
Framework)
national level
Y Y N N N N
e-Government
initiatives
N N Y N N N
Legal & regulatory
framework Y Y Y N N Y
(Legend: Y = Yes, it is important or an issue; N = No, it is not a key issue)
From the above matrix it would appear that several of the e-Trade services and products are
not entirely dependent on all the factors being in place. This would therefore suggest that
despite the non-availability of all framework items in place, enterprises can attempt to climb
up the ladder of e-enabled Trade.
This has been and is true in many cases across developing countries. However, the view of
this monograph is that this holds good only to a limit and to a time and a scale. To raise the

23
enterprise’s and the country’s e-Trade competence to the next level or paradigm, several
inter-linking factors must together come up to speed.
This is the road map suggested for developing and transition economies and their
enterprises – identify the factor gaps as per the matrix suggested and work out startegies to
address them in as integrated and coordinated a manner as possible.
SMEs should of course consider alternative and intermediate staregies that can work around
the gaps. That can seek and address e-business openings both domestic and global that can
be coverted to gain by using management skills that exploit the technological oppurtunity.
They must build internal capacity whitin their enterprise to do so.
For development agencies it is a dual role – assit countries to address the key factors while
at the same time train SMEs to employ what works and avoid what does not.

24
References
Principal References - Publications
Aldaba, F., Gonzalez, M., & Guiang, G. (2002). ICT Infrastructure and E Readiness Assessment of the
Philippines ( A Study Prepared for the World Bank and DTI). Ateneo Research Network for Development,
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Trade Centre UNCTAD/WTO, Geneva.
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25
ITC's national e-Preparedness reports of the following countries
E-Preparedness Report - El Salvador
E-Preparedness Report - Guatemala
E-Preparedness Report - Honduras
E-Preparedness Report - India
E-Preparedness Report - Kazakhstan
E-Preparedness Report - Kenya
E-Preparedness Report - Kyrgyzstan
E-Preparedness Report - Philippines
E-Preparedness Report - Romania
E-Preparedness Report - South Africa
E-Preparedness Report - Tajikistan
E-Preparedness Report - Tanzania
E-Preparedness Report - Trinidad and Tobago
E-Preparedness Report - Uganda
E-Preparedness Report - Vietnam
ITC's B2B e-market place - country profiles of the following nations
- India
- Nepal
- Sri Lanka
References - Websites
Cable News Network www.cnn.com
Confederation of Indian Industry www.ciionline.org
http://business.vnn.vn
http://trade.fpt.vn
http://www.b2vn.com
http://www.eBusiness2vn.com
http://www.intracen.org
http://www.smenet.com.vn
http://www.tienphong-vdc.com.vn
http://www.vcci.com.vn
http://www.vietnamshop.ne.jp
http://www.vietrade.gov.vn
http://www.vnnic.com.vn
http://www.worldbank.org
https://www.vietnamshop.ne.jp/company
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International Trade Centre www.tracen.org
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26
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www.aseansec.org/view, November 29, 2002.
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www.brint.com, October 21, 2002
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www.digitalphilippines.org. November 29, 2002
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www.mcconnel.com, April 9, 2002 and April 15, 2003
www.witsa.org. September 9, 2002

28
Winning With the Web (WWW) Initiative of ITC under the e-Trade Bridge Programme
The WWW aims to identify and disseminate best practices in e-trade and in the usage of ICTs to improve
business effectiveness and efficiency. These best practices can then be used as examples of what can be done in
e-trade and with ICTs even if the country’s current environment is far from ideal and holds back SMEs’ efforts.
The WWW programme generates written cases, which are used as models for SMEs to follow in order to
implement these best practices for their own benefit.
This programme is being implemented in three phases.
WWW Phase A
The e-Trade Bridge team at ITC’s headquarters in Geneva searches the web essentially for SMEs in selected
countries participating in the e-Trade Bridge programme, but also for cooperatives, associations, NGOs and
support institutions which have designed and operate effective websites for the purpose of improving their
marketing or production operations.
The team then selects the most suitable websites and evaluates them using a standard evaluation form before
writing short cases describing the website and explaining what good practice it has implemented.
WWW Phase B
National Consultants at country level search locally for companies or organizations, which have implemented the
use of ICTs to improve the effectiveness or efficiency of their marketing or production business processes (in the
form of a website or not). They interview (using a pre-set questionnaire/guideline) the managers of companies or
organizations, which have been short listed, and write-up cases on the good practices these have used to
implement ICTs.
WWW Phase C
Phase C directly assists identified SMEs to become e-enabled for e-Trade. This involves establishing a plan of
action to make the SME e-ready, usually including assessment of management and export-readiness and
assessment of e-opportunity followed by training or counselling interventions and additional support and
services as required.
The National Consultant then writes up a case documenting how a local organisation went about improving the
effectiveness or efficiency of one of its marketing or production business processes by using the appropriate
information or communication technology.
The following is a tabular depiction of the lessons taken from the Best Practice cases of SMEs in the Winning
With the Web format of Phase A – Phase B – Phase C and arranged (where lessons of success or failures were
found) under Micro and Meso Level.
Examples of good and poor practices of SMEs adapting to e-trade: Website based research
Enterprise/Website What works What does not Lesson
Micro Level (Phase A)
Cambodia
Hagar Design
http://www.hagardesignltd.com/
The website is a good example
of a simple but attractive design
to promote the products of a
SME
There is no information
request form which can
facilitate the first
contact
A clear and simple design
website focused on
products and the SME
can improve the sales
Cambodia
Cambodia Craft Cooperation
http://www.bigpond.com.kh/users/
cambodian-craft/
The catalogue of products is
very diversified and divided in
two groups (the ones for the
International market and the
ones for the domestic market)
There is no online
order form which limits
the possible gain in
time for the ordering
process
It is important to have a
good catalogue and to
merge it with an efficient
online ordering system.
Annex 1

29
Costa Rica
Horizontes
http://www.horizontes.com/
They offer a customized travel
service and eco tourism
therefore promoting their
specialized Niche.
The website is US
market oriented and
only in English version.
The fact that there is
no Spanish version
limits the access to
other possible markets.
Communication
(language) is an
important issue for SMEs.
Their website must be
adapted to the market
they target in priority but
also to the other potential
markets.
Costa Rica
R.F Meseta
http://www.rfmeseta.com/
The Online Order system is
effective and encourages the
potential buyer to become a
member
There is no direct link
between the Online
Store Web and the
Order Coffee web page
A SME or a Cooperative
can improve the sales
through a well organised
and clear online order
system on its website
Guatemala
Mayans Craft
http://www.mayanscrafts.com/
The layout of the products is well
designed using smart techniques
to promote the SME’s products
SMEs have to take care
of the presentation of
their products if they want
to attract potential buyers
Kenya
KSM (Kenya Suitcase
Manufacturers)
http://www.kenyasuitcase.com/
This SME website
offers to sell products
which are totally
unconnected to its
corporate name
(suitcases) thus
leading to doubt and
lack of credibility.
SMEs must create a
synergy between their
main products and their
corporate name
Kenya
Cyber Kenya
http://www.cyberkenya.com
The website has been design for
a regional market grouping
several neighbouring African
countries
The structure to
provide information
about the training is
poorly designed.
SMEs have to clearly
detail the information
about their products and
services.
Kenya
Marketingscapes
http://www.marketingscapes.com
They propose a free consultation
and evaluation of the marketing
needs of the potential client
Offering free services can
make a great impression
on the customers and
bring them to the
enterprise for then using
other paid services.
Nepal
Himalayan Herbs Trader
http://www.himalayanherbs.net/
This website has poor
ordering and
confirmation
arrangements therefore
leading to confusion for
the buyer.
SMEs have to focus on
the effectiveness
between the phase of
attracting a potential
Buyer and the phase to
make easy the purchase
Malaysia
Rohini IT Entrepreneur
Solutions
http://rites.esmartbiz.com/history.
htm
The website is
counterproductive for
this SME as its design
and presentation is
very poor. How could
the client be confident
when a SME
specialized in IT has a
so poor a website
It is important that the
website is well reflecting
the SME and its activities

30
Micro Level (Phase B)
El Salvador
Sweets – El Palacio de los
Postres
http://www.sweetsbakery.com
(currently under reconstruction)
Thanks to the website, the
institutional salesperson on a
client-visit can show the different
products that are offered using
the buyer’s computer.
Right now the website
is in Spanish which
means that the
company is currently
targeting Spanish
speaking clientele. If
the intention of the
company is to attract a
wider audience, they
should have an
English portal on their
website
SMEs should to develop
their website in both local
and English language for
catering to the domestic
and international markets.
Philippines
Fiera De Manila Inc.
http://www.fmi.com.ph
The SME uses their website to
disseminate information on
forthcoming seminars and trade
exhibits and also uses the
Internet to research new ICT
trends, which are used in
conceptualizing themes for their
various seminars, special events
and trade fairs.
The use of customer
contact database has
facilitated prompt
decision-making. The use
of ICT in (FMI) Fiera De
Manila Inc’s marketing
and production functions
has resulted in sales
increases and electronic
interactivity between FMI,
clients, and partners
Philippines
Andamar Inc
http://www.andamar.ph
Andamar’s website has proven
to be an effective tool in finding
new customers and taking
orders. PowerPoint slide
presentations are now being
used for product presentations
The apparent benefit
derived from email and IT
is improved
communications between
marketing and production
functions, and between
the company and its
buyers
Kyrgyzstan
Cheri Service
http://www.price.kg
The Cheri Service Company
began with stationeries sales
and developed its activities until
they launched an on-line prices
database. Up to today profits
from allocation advertisement on
the website not only exceed all
disbursements but also helped
develop the organization.
Application of ICTs in the
work of the SME
exceeded management’s
expectations.
Turkey
Garipogullari co.
http://www.garipogullari.com
This enterprise has shown that an
SME, which wants to find new
customers from abroad can do so
through its own web site and also
through useful B2B sites.
Intelligent usage of the
Internet technologies can
be used in order to find
customers, to respond to
sales inquiries, to shorten
response time and to
decrease communication
costs
Uganda
Mukono – Womens’ task
force
Thanks to ICT, accessing
information on favourable markets
and market prices has enabled
the women to make correct
decisions on what type of
vegetables to produce and when
to produce them.
Communication with
customers also reduces
wastage since the women
are informed of
customers’ requirements
and know what to produce
and when it is needed
Micro Level (Phase C)

31
Honduras
Manufacturas Del Trópico S.A.
de C.V. (Del Tropico)
Del Tropico has not yet
fully explored the
potential or taken
advantage of the
marketing opportunities
offered by the Internet
Aware of this handicap,
the management
established in the
company’s 2002-2007
Business Plan an e-
commerce project
Turkey
Silpo Screen Manufacturing and
Sales Ltd. Co
Due to a lack of ICT,
the enterprise was not
able to identify its
competitors' names
and strategies and
establish its own
strategy accordingly.
The use of ICT will
reduce the lack of
essential information for
the good process of the
enterprise
Kenya
Adelphi, The Leather
Shop
http://www.adelphileather.biz
This enterprise has created
an electronic shop-front to
the International Market so
as to sell more and access
new markets using the
internet
The Use of ICT allows
the SME to attract
potential Buyers
Meso Level (Phase A – Gender Issues)
India
SEWA (Self Employed
Women’s Association)
http://www.sewa.org
SEWA’s website is well
structured, easy to navigate
and contains all the
information that a woman in
India would need to know
about her rights
A website has to well
reflect the activity of the
Association
Morocco
AFEM (Association des Femmes
Chefs d'Entreprises du Maroc)
http://www.afem.ma
The website contains
information to attract the
audience and is helpful to
women who wants to create
their own activity
A website which provides
enough information and a
network to establish a
SME.
South Africa
TWIB (Technology for Women In
Business)
http://www.twib.co.za/index.html
The website is capable of
attracting its intended local
and foreign audience as the
outside shell of the website’s
is appealing. The website
content is very detailed with a
lot of links to other useful
information.
Effectiveness to attract
women in ICT’s activities
through a website
Meso Level (Phase B – Gender Issues)
Uganda
CEEWA (Council For Economic
Empowerment For Women Of
Africa)
CEEWA has been able to use
Information and
Communication Technology
(ICT) to improve women’s
skills in business
management by introducing
them to computer skills.
Information and
Communication
Technologies can be
effective tools that could
make a positive impact in
gender mainstreaming
and empowerment
especially the rural
women

32
Annex 2.
What Works and What Does Not
The statement below combines the e and business paradigm as well as the key factors that
have been used in the framework and lists out actual examples of what works and what does
not as culled out from the research. The examples are presented reflecting both, the type of
e-business, as well as the factor in the matrix that they would correspond to. An interesting
feature of this tabulation is that several of the examples actually overlap between different
types of business as well as different factors of the matrix. This further strengthens the
argument that there are strong inter-linkages between the factors as well as the three levels
of micro-meso-macro.
Examples of good and poor practices of SMEs adapting to e-trade in the context of the e paradigm
i.e. E for business, e as business and e in business
E-Biz Type /
(Factor)
What works What does not Lesson
Micro Level
E in business
(e-trade
capabilities)
Web page creation is
considered a one time affair
and poor maintenance of
websites
Unless websites are constantly
updated, SMEs can not expect
credibility and success in e-trade
E in business
(e-trade
capabilities)
SMEs tend to set up websites
using non-professionals who
do not create a dynamic
design that would allow for
quicker access
To be competitive in marketing
themselves on the web, SMEs
must use best technologies
E in business
(e-trade
capabilities)
Even in non-English speaking
countries SMEs were found
setting up English websites in
order to access global
markets
Relaying only on English in
non-English speaking nations
deprives SMEs from possible
collaborations and
transactions with the local
environment
Language is an important issue
for SMEs and their website and
IT usage must be adapted
depending on the market they
seek to access
E for business
(e-trade
capabilities)
SMEs having a desire to take
part in e-commerce / e-trade,
but failing to update
knowledge in ICT / IT /
Internet
Desires and intentions need to be
matched with training and
experience
E for business
(e-trade
capabilities)
SMEs setting up websites and
marketing on internet without
first addressing logistical
problems of production and
shipping etc.
Loss of credibility in delayed or
poor supply must be avoided at
all cost in e-trade
E for business
(e-professionals
availability)
SMEs taking up initiatives in
e-trade without either training
their staff or hiring e-
professionals
SMEs must update or hire
requisite skills when they begin
using new technologies

33
E in business
(e-business
environment)
SMEs first experimenting and
streamlining e-commerce
initiatives in the domestic
markets and only then taking
the plunge to offer products
and services abroad
Though not always a pre-
condition to e-trade and export,
ensuring seamless and reliable
transactions are a must for e-
trade
E for business
(e-business
environment)
SMEs entering the area of e-
trade and internet without first
ensuring sufficient funds to
implement the project
successfully
In the e-world just as in the real
world financial issues must be
adequately addressed
E in business
(e-business
environment)
Higher costs of the electronic
payments making companies
desist from selling online and
dealing with returns in e-trade
being complicated.
e-banking facilities need to be
competitive and locally available
E in business
(e-business
environment)
Online stores created by and
for SMEs need to offer
discounts on their product
prices in order to promote
sales
Competitiveness and special
promotions are important issues
for developing country
enterprises entering the area of
e-trade
E in business
(e-business
environment)
B2C projects offering online
payments / transactions in an
economy which has very
small credit card base
e-commerce startups must be
sure of their market before
launching web-based enterprises
and meso level financial
framework needs to be improved
Meso Level
E in and for
business
(Trade
Promotional
Agencies)
TPAs helping SMEs create
web pages, conducting
computer training courses,
promoting crafts and goods
made by small entrepreneurs
etc. at their website.
Trade Promotion Agencies
attempting to promote e-trade
without having adequate
knowledge regarding e-
business
TPAs have an extremely
important role in developing and
transition economies and must
ensure that they are adequately
qualified to promote the right
services for SMEs
E as business
(ICT
Infrastructure)
ISPs offering several varieties
of options in terms of speed
and cost for internet
connectivity
Different services such as call
centers, BPO services, software,
digital products and services, all
require different connectivity and
speed options which must be
competitively catered for by the
ISP providers
E as business
(ICT
Infrastructure)
Monopoly telecom services
leading to high cost of internet
access
Competition must be encouraged
to ensure the lowering of internet
access cost
E as business
(ICT
Infrastructure)
Promotion of development of
computer centres and cyber-
cafes by ISPs, TPOs and as a
business
Low PC penetration and high
cost of Internet connectivity.
Access to the internet is more
important than tele-density for
developing countries
E as business
(ICT
Infrastructure)
Hardware and software,
products and services at
affordable prices ensured
through a competitive local IT
environment for import and
manufacturing / assembly.
High cost of hardware and
software leading to low PC
penetration
ICT and e-trade environment are
directly influenced by hardware
and software costs

34
E for & as
business
HR Framework)
Promoting computer / IT
training through public and
private institutions.
Curriculum of educational
institutions not in sync with
ICT developments /
requirements.
Several levels of IT education
and training are required
depending on the market
requirements of e-commerce / e-
trade. Both a business
opportunity and institutional
requirement.
E for
Business
(Financial
framework)
Governments / banks offering
venture capital and loans at a
lower interest rate for e-trade
/export oriented projects
E in business
(e-Security in
financial
framework)
Consumers hesitating to give
their personal information on
the web or using credit cards
e-literacy, e-awareness and
secure online transactions must
be ensured in the local business
environment
E as business
(e-business
environment)
Virtual mall created by a credit
card provider that allows
online trade
Where e-banking and online
electronic payments are an issue,
such initiatives by a third party
are mutually beneficial for all the
players
Macro Level
E for business
(Policy &
strategy at
national level)
Appointing a nodal agency
which has a mandate for
implementation from the
highest political authority
Countries announcing a policy
/ intention to promote e-
commerce / e-trade without
working out a strategy / action
plan and nominating a nodal
agency for implementation
Clearly enumerated e-strategies
are a must for developing and
transition economies where
government has an important
promotional role in ensuring an e-
enabling environment
E for business
(Policy &
strategy at
national level)
Facilities to import computers
and software tax free
No incentives to motivate
exports through electronic
commerce
Fiscal incentives are a strong
motivating factor especially for
SMEs in developing countries
E for business
(Policy & HR
Framework)
Allowing easy movement of e-
professionals between
countries depending on
market requirements
Shortage of e-professionals in
the country leading to a stifling
of e-trade potential.
Not all countries and economies
can have the right mix of
availability and demand of e-
professionals, therefore having
flexible immigration policies may
be required in some economies
E for business
(Policy & HR
Framework)
Demand and supply of ICT
professionals is more or less
balanced in the country
Producing qualified and skilled
ICT professionals without
there being sufficient local
demand leading to them
leaving for more lucrative
employment abroad.
Brain drain is a serious issue for
many developing countries and
there are both positive and
negative angles to this issue
which individual counties must
decide for themselves
E in business
(e-government
initiatives)
As per the E-Commerce Law /
regulations stipulating that
government offices must
compulsorily provide for
electronic transactions in their
interaction and processes.
Unless government sets an
example within its own house, it
can not expect its citizens to
follow suit.

35
E for & in
business
(e-government
initiatives)
e-government as a model and
business opportunity for
SMEs
Government computerizing its
departments without setting
up inter departmental linkages
and intranets as well as using
the network for access of
citizens i.e., e-government
Introducing e-government
promotes not only an e-
environment, but is a business
opportunity for the IT sector. It
also motivates government
employees to learn to use
computers and software.
E for business
(Legal &
regulatory
framework)
Legislating and e-commerce
law based on UNCITRAL e-
commerce model law.
Expecting to promote e-
commerce / e-trade without
establishing a legal framework
for the same.
Besides the requirement of an e-
commerce law, the fact of having
one ensures a positive signal for
promoting e-trade
E for business
(Legal &
regulatory
framework)
Government agencies and
TPOs raising the level of
awareness of SMEs regarding
legal framework for e-
commerce
SMEs embarking on e-trade
without having sufficient
knowledge of the laws and
regulations that would impact
on their transactions
Being small enterprises with
limited resources, SMEs require
capacity building in the area of
legal framework
E as business
(Legal &
regulatory
framework)
Establishing designated
agencies to ensure legal
validity and enforceability of
digital signatures and
electronic records.
Setting up a legal framework is
not enough without ensuring its
enforceability.
Some country level examples of what works and what does not
This works:-
An example of focused B2B marketing from India
JustPaper.com
Website: http://www.justpaper.com
Just Paper.com has a range of handmade paper collection and handcrafted handmade paper
products. Justpaper.com aimed for a web presence to establish the brand "JUSTPAPER.COM" as a
quality B2B supplier of handmade papers, products and gift items for the benefit of vast clientele
abroad by providing them a direct access to quality products.
The website showcase its entire range of products to business customers across the globe.
The website offers:
Interactive interface for business enquiries of paper products
Online order and payment using credit card.
Offer its 'buying-agent' services to global buyers of paper & paper products
E-Catalog displaying the exclusive range of handmade paper with more than 100 products
Results:
Rs 3000000 (starting from zero) in first working financial year.
200-250 queries per month.
A long list of clients all over from USA and European Region.

36
This works too:-
An example of Networking successfully from the Philippines
pesocard
website: http://www.pesocard.com
Pesocard has been catering to international Filipino communities. This website offers the several
services, including:
-Door to door cargo
-Bank to bank remittances
-Regalogram (buying gifts online)
-Appliance financing program
-Pabahay plan or house financing program
-Hatid-sundo service or airport transfers and Hotel reservation
-Overseas placement of Filipino workers
-Accident benefit insurance
-Mobile disco, Photo service, Courier services
This site is affiliated with government offices such as the Social Security System and Pagibig,
Philippine Airlines and Goldilocks (pastry and cake shop) and several hotels and shops. Its bulletin
board carries announcements on class reunions and testimonies from satisfied customers.
These online marketplaces and services have been beneficial to e-trade, as it has encouraged exports
and imports and services whether in small or big quantities.
Macro-level good practice example: Guatemala
SEADEX (Automated Export License Service)
Website: http://www.exports.com.gt
Before 1989, to obtain an export license, exporters had to go to each government entity
involved in the process, around 10 days was the time frame usually needed to obtain a
license.
Under a plan led by AGEXPRONT, all required officials from the different governmental
entities were provided a joint space in the Ministry of Economy so that exporter one place
and obtain their clearances there. In 2002 the export license process became automated
and export companies could solicit the license online. Through an automated process
licenses are awarded online.
Today there are about 500 companies that perform all of their export transactions online.
AGEXPRONT has also enabled online payment of this service with credit or debit cards,
thus giving a complete online service for export license needs.
With this service enabled, companies can rely on an automatic and safe way to make their
export declarations in just a few minutes with a user friendly computerized form.
The highest standards of electronic security and infrastructure has been provided through
this service.

37
A successful e-marketplace
Bayantrade
Website: http://www.bayantrade.com
This online marketplace was established in June 2000 by a consortium of six Philippine
conglomerates in manufacturing and service industries. It aims to serve as a marketplace
of indirect supplies such as office supplies, computer equipment and maintenance, repair
and operations items. According to the WB-ARND Report (2002), BayanTrade had 191
buyers, 175 from consortium companies and 16 firms outside the founding conglomerates
as of 2001. With the total transaction volume amounting to P5.4 billion pesos in 2001,
BayanTrade is the largest e-commerce marketplace in the Philippines. It aims to be the
country’s gateway to the global business to business trading communities in a broad
range of industries.
This does not work:-
A lesson of what does not work from an example in Honduras
CADECA (Compania Avicola de Centro America)
Website: http://www.cadeca.hn
Founded in 1967, CADECA was producing chicken meat and commercial quality eggs and selling it in
the local market. In 1991, it changed it's production goals concentrating only on chicken meat
production. In 1999, CADECA created their web site to offer products on line. They were the first
enterprise in Honduras to sell products on line both for the domestic and export market. Unfortunately
they did not get the results they had expected even though they had invested large amounts in
publicity and promotions. CADECA even offered a lower price on their products on line, delivery in a
special packing to make the product more attractive, and most important, at no additional cost. The
amount of product sold through the net was not enough to even cover the costs of operation.
CADECA, has analysed the problem and come to the conclusion that their most important hurdle was
that only a small amount of the population have computer access, and considers that in order for more
people to use B2C, it is necessary to inform and educate the general public on this topic.
They still offer their products online since they want to offer good service and to keep an image of a
modern enterprise and now they changed strategy and are concentrating on other markets outside
Honduras. Honduras has a large amount of people who live in the United States; some of them buy
on line chicken to be delivered to their families in this country.
The obvious lesson is to understand the market properly.
This helps:
Raising Awareness Among Youth and Parents: Tunisia
Tunisia has created a program to raise awareness and sensitize young parents to the importance of e-
commerce as well as information and communication technology. Specialized seminars, radio and
television programs highlighting fun, interesting, educational and health-related web sites are very
popular. They also ran a campaign "One Computer Per Family Campaign". Through this families can
buy a computer configuration based on an AMD processor with printer and multimedia pack for less
than $500 payable over 36 months, subsidized by the government. The equipment is assembled in
Tunisia

38
Annex 3
The e-Trade Bridge programme
The e-Trade Bridge programme’s goal is to create internationally competitive, e-competent businesses
and to build national e-trade capacities within the institutions which support them. The programme
features products and services to enhance the e-competence of SMEs for international
competitiveness, initiatives to enhance the capabilities of national and regional networks of institutions
and trainers and counsellors, and mechanisms to foster international exchange and cooperation
amongst stakeholders.
The programme is modular and features products and services to enhance the e-competence of SMEs
for international competitiveness, initiatives to enhance the capabilities of national and regional
networks of institutions and trainers and counsellors, and mechanisms to foster international exchange
and cooperation amongst stakeholders.
The e-trade bridge programme consists of four major components to be implemented following the
research phase. These are the Kick-off Meeting, the WWW programme, the Strategist’s Training and
the e-nabling SMEs programme for training trainers and counsellors. Although they are linked in a
logical sequence, each is a stand-alone activity and can be run independently in a partnering country.
Normally ITC will work with one or more national partner organizations to implement the
programme. This document is designed to provide such partner organizations with a clear
understanding of the various components of the programme. For this purpose a brief overview of the
preparatory research phase, the kick-off meeting, www programme, the strategy training, the trainer’s
training and the Web-based platform is provided in the following section. Also an overview of the
process by which ITC establishes cooperation with a national partner and an outline on the role and
responsibilities of the national partner organization during the research phase is provided.
The research phase
The objective of the research phase is to identify the state of ‘e’ in the country. The report consists of
three parts namely the E-Balance Sheet, the E -Map and the E-Action Points. Once the e-balance sheet
and the e-map are completed, the various actors and relevant activities in the country will be
identified. These findings should also give some indication as to what gaps exist with a view to
recommending solutions. This will form the final section of the report: the E-Action Points.
The Kick-off Meeting
The national e-Trade Bridge Kick-off Meeting forms the platform for EMDS’ e-Trade related
interventions in partner countries. The purpose of this event is to develop a shared vision of the
national e-trade context, facilitate local ownership of ITC’s e-Trade initiative, and focus on turning
broad e-commerce policy statements into concrete action points.
Winning With the Web Component
The Winning With the Web (WWW) component is the natural follow-up to the e-Preparedness Report
and the Kick-off Meeting. The WWW aims to identify and disseminate best practices in e-trade and in
the usage of ICTs to improve business effectiveness and efficiency. These best practices can then be
used as examples of what can be done in e-trade and with ICTs even if the country’s current
environment is far from ideal and holds back SMEs’ efforts.
The WWW programme generates written cases which are used as models for SMEs to follow in order
to implement these best practices for their own benefit. It also aims to make SMEs e-ready, i.e. to take
SMEs which have not yet reaped the benefits of using ICTs and help them to make use of ICTs,
through a web presence for marketing purposes or through the use of ICTs to improve the
effectiveness or efficiency (or both) of other business processes.

39
The WWW programme is designed to primarily benefit senior managers and owners of small and
medium sized companies. However, it can also benefit Internet Service Providers, e-commerce
solutions providers, web designers, business consultants, associations and training and related
organisations offering e-trade and ICT services.
Workshop for Strategists
The National e-Trade Strategy workshop provides assistance to national governments in formulating
and assessing their international trade strategies to determine the extent to which their strategies
respond to the challenge of trading across borders using the Internet and information and
communications technologies (ICT). A key workshop objective is to promote an exchange of views,
which lead to the formation of practical policies and programmes to assist small and medium sized
enterprises to compete internationally. The work shop is offered over three days involving a
combination of lectures, practical exercises and group work, conducted by national and international
experts from developed and developing countries.
e-nabling SME’s
This is a capacity building initiative, which provides a national group of trade development
professionals with the necessary tools, materials and skills to design and develop training and
counselling interventions. The aim of these interventions is to help client companies (SMEs) leverage
information and communications technologies (ICT) and e-business practices to improve their
international competitiveness.
The program is delivered over approximately 12 months and comprises a series of short in-country
workshops interspersed with periods of several weeks during which participants are asked to carry out
practical assignments to consolidate what they have learned. Participants are supported by mentoring,
performance feedback, and peer group exchange. A web-based platform provides access to materials
and resources, and allows interaction with EMDS’ wider network of e-trade development
professionals.
During the training, particular emphasis is given to building the competence of participants to develop
and implement training and counselling interventions aimed at helping SME managers use ICT/e-trade
(ET) to:
 Enhance the development and implementation of their plans to go international;
 Identify and research target markets; gain international visibility for their companies; and
promote themselves effectively to their client groups world-wide;
 Make use of ICT and e-business practices to improve their business processes;
 Improve the effectiveness and efficiency with which human and technology resources are
managed in their company

The program targets trainers and counsellors of small and medium enterprises who will be trained to
assess enterprise needs, and to design and deliver a range of interventions to improve the e-
competence of enterprise managers. These individuals are likely to have some experience/knowledge
of business management, international trade, and ideally will have some knowledge of e-trade issues.
They may be working within multiplier organizations, SME support organizations, providers of
commercial services, training or consultancy organizations, or be independent agents. They will have
some familiarity with computer applications (including databases and spreadsheets) and the use of the
Internet. The training of trainers and counselors is generally carried out in partnership with a national
HRD institution, which coordinates the training of trainers and acts as a focal point for all activities.
The training program is delivered in four instalments:
 Management Competitiveness Programme for SME’s
 Export Competence Programme for SME’s
 e-competence for SME’s
 e-competence for Strategists

40
Each instalment incorporates a range of diagnostic tools and complementary solutions. Below is
comprehensive coverage of these tools and solutions:
Management Competence Programme (Management Readiness)
Diagnosing Management Competence:
- NeedSME An e-Tool for Management Diagnostics
- DemandSME An e-Tool Assessing Demand for
Training
- The Business Management System Guide on Enterprise Competitiveness
Designing and Verifying Business Strategy:
- PlanSME An e-Tool for Strategic Planning
- Strategy Design How to Design and Verify Business
Strategies
Building Marketing and Production Capabilities:
- Quantity Producing at the right Quantity
- Quality Producing at the right Quality
- Time Producing at the right Time
- Cost Producing at the right Cost
- Communicating Getting your Message to your Buyers
- Distributing Getting your Products to your Buyers
Export Competence Programme (Export Readiness)
- Diagnosing Export Competence
- Export Potential Assessment An e-Tool for Export Potential
Diagnostics
Managing Export Transactions:
- Dispatching Work Initiating Production to Fulfil Export
Orders
- Estimating Production Costs Accurately Calculating the Cost of an
Export Order
- Performing Freight Operations Delivering your Products to your
Overseas Buyers
- Prompting and Responding to Sales Inquiries Communicating to Get Export Orders
- Scheduling work and Routing Planning Production to Fulfil Export
Orders
- Preparing and Negotiating Specifications Meeting Customer Needs with Accurate
Product Specifications for Exporting
- Pricing and Quoting Calculating Sales Prices and Preparing
Quotes for Exporting
- Getting Paid Understanding Financial Processes and
Procedures for Exporting
- Exhibiting at Trade Fairs An Example of Task Management
According to the BMS
- Access to Finance for the First Export Order Philippines Survey
- Access to Finance for the First Export Order Tanzania Survey
- ManageSME An e-Tool for Managing Transactions for
SMEs
E-COMPETENCE FOR SMEs (E-Readiness)
Diagnosing e-Opportunities:
- E-Opportunity Assessment An e-Trade Tool for e-Potential
Diagnostics
- Using e-Trade Tools for Competitiveness:
- Verifying Strategy Researching Buyers and Competitors on
the Internet
- Designing Promotions Building Web Presence for your
Enterprise
- Purchasing and Expediting Finding Suppliers on the Internet

41
- Prompting and Responding to Sales Inquiries An e-Trade Tool for Customer
Relationship Management
- Cases in e-Business:
- Case Preparation Guidelines
- Winning With the Web
- Website Best-Practice Cases
- Best-Practice Cases in e-Business
- Cases of e-Business Competence Building
- E-COMPETENCE FOR STRATEGISTS (E-Readiness)
- Assessing Country e-Preparedness
- Guidelines for Assessing Country e-Preparedness
- Country Assessors Handbook
- Guidelines for Assessing Regional e-Preparedness
- Regional Assessors Handbook
- Country e-Preparedness Reports
- State of e-Business and Potential for Development in _______
- Regional e-Preparedness Reports
- State of e-Business and Potential for Development in the Region
- E-Business Resource DVD and Book
- E-Business Links in __________
- National e-Trade Bridge Websites
- Training Strategists for e-Trade:
- A Resource Book for Training Strategists for e-Trade

42
Annex 4.
Global e-Trade Readiness Index (Matrix No. 1) based on an analysis of the country study
research.
Nation ElSalvador
Guatemala
Honduras
TrinidadandTobago
Romania
Kazakhstan
Tajikistan
Kyrgyzstan
Kenya
Tanzania
Uganda
SouthAfrica
India
Vietnam
Philippines
Global
Micro Level
(Enterprise
level
environment)
use of IT in Industry
2 2 3 2 1 1 3 2 2 3 2 3 3 1 3 2.2
e-Professionals
capabilities
3 2 3 1 2 1 2 2 1 2 2 2 3 2 3 2.1
e-Business
environment
2 2 2 2 1 1 2 1 2 1 2 3 2 1 2 1.7
Micro Level Index 2.3 2.0 2.7 1.7 1.3 1.0 2.3 1.7 1.7 2.0 2.0 2.7 2.7 1.3 2.7 2.0
Meso Level (e-
Trade support
level)
Trade Promotional
Agencies
1 1 3 2 2 1 1 2 2 1 3 2 3 1 3 1.9
ICT Infrastructure 2 3 3 3 3 3 1 1 1 1 2 3 2 2 3 2.2
HR Framework 3 3 3 3 3 3 1 3 2 2 2 3 3 1 3 2.5
Meso Level Index 2.0 2.3 3.0 2.7 2.7 2.3 1.0 2.0 1.7 1.3 2.3 2.7 2.7 1.3 3.0 2.2
Macro Level
(Policy
Framework)
national level
2 2 2 3 3 2 1 2 2 2 2 3 3 2 2 2.2
e-Government
initiatives
1 2 2 2 3 1 1 3 1 1 1 2 3 2 2 1.8
Legal & regulatory
framework
1 3 1 2 3 2 2 2 1 1 2 2 3 2 2 1.9
Macro Level Index 1.3 2.3 1.7 2.3 3.0 1.7 1.3 2.3 1.3 1.3 1.7 2.3 3.0 2.0 2.0 2.0
e-Trade readiness
Index
1.9 2.2 2.4 2.2 2.3 1.7 1.6 2.0 1.6 1.6 2.0 2.6 2.8 1.6 2.6 2.1
Grading: Factor/component in place or action taken: 3
Partially in place / Planned but not operationalised: 2
Not available / No action planned yet: 1
The matrix above has listed out the progress or grading of each of the 15 countries (in
alphabetical sequence) against the three levels of micro-meso-macro factors. The grading is
also factor-indicative as well as global-indicative.

43
There is another dimension of this analysis. Based on the same data of the 15 country
reports the e-Trade readiness could be projected as those of the countries that are at the
most successful level, less successful level and the least successful level. The success
level matrix (Matrix No. 2) below also includes an indication of the e-commerce micro index
ranks and the networked readiness index ranks of those amongst these 15 nations which
figure in the Global Information Technology Reports14
.
Most
Successful
Level
Less Successful Level
Least Successful
Level
Nation
India
SouthAfrica
Philippines
Honduras
Romania
TrinidadandTobago
Guatemala
Kyrgyzstan
Uganda
ElSalvador
Kazakhstan
Vietnam
Tanzania
Tajikistan
Kenya
Micro Level
(Enterprise
level
environment)
use of IT in Industry
3 3 3 3 1 2 2 2 2 2 1 1 3 3 2
e-Professionals
capabilities
3 2 3 3 2 1 2 2 2 3 1 2 2 2 1
e-Business
environment
2 3 2 2 1 2 2 1 2 2 1 1 1 2 2
Micro Level Index 2.7 2.7 2.7 2.7 1.3 1.7 2.0 1.7 2.0 2.3 1.0 1.3 2.0 2.3 1.7
Meso Level
(e-Trade
support
level)
Trade Promotional
Agencies
3 2 3 3 2 2 1 2 3 1 1 1 1 1 2
ICT Infrastructure 2 3 3 3 3 3 3 1 2 2 3 2 1 1 1
HR Framework 3 3 3 3 3 3 3 3 2 3 3 1 2 1 2
Meso Level Index 2.7 2.7 3.0 3.0 2.7 2.7 2.3 2.0 2.3 2.0 2.3 1.3 1.3 1.0 1.7
Macro Level
(Policy
Framework)
national level
3 3 2 2 3 3 2 2 2 2 2 2 2 1 2
e-Government
initiatives
3 2 2 2 3 2 2 3 1 1 1 2 1 1 1
Legal & regulatory
framework
3 2 2 1 3 2 3 2 2 1 2 2 1 2 1
Macro Level Index 3.0 2.3 2.0 1.7 3.0 2.3 2.3 2.3 1.7 1.3 1.7 2.0 1.3 1.3 1.3
e-Trade readiness Index 2.8 2.6 2.6 2.4 2.3 2.2 2.2 2.0 2.0 1.9 1.7 1.6 1.6 1.6 1.6
* E-commerce micro index Rank
2001 - 2002
29 28 37 70 75 53 65 64 73
** Networked Readiness Index Rank 2002
- 2003
37 36 62 81 72 58 73 63 71
* Global Information Technology Report 2001 - 2002
** Global Information Technology Report 2002 - 2003
14
GITR, the Global Information Technology Report 2001-2002: Readiness for the Networked World, was
produced under a joint effort by Information Technologies Group at CID (Center for International Development)
of Harvard University and the World Economic Forum.(http://www.cid.harvard.edu/cr/gitrr_030202.html)

44
Observations from the Success level Matrix:
This e-trade readiness matrix shows the status of e-trade preparedness for all the 15 nations
studied from different regions. This matrix while giving the overall e-trade readiness index of
the nations, also shows the sub-indices at each of the three levels (micro, meso and macro).
From the e-trade readiness matrix, it is apparent that the more successful nations have each
of the key factors either already in place or at an advanced stage of planning for all the three
levels.
At the enterprise level, the SMEs mostly have the right attitude and make use of ICT in their
business with skilled professional’s availability not being a problem. The SMEs have a
relatively more conducive environment for e-business and e-trade.
At the support level, the more successful economies had reasonably good ICT infrastructure
and reliable internet connectivity is available at affordable costs. While robust education and
training institute structures take care of the demands for skilled professionals, there are trade
promotion agencies taking initiatives to promote e-trade.
At the policy level, the governments have strategic planning with most of them having
strategies for eCommerce/e-Trade development in place. They also have legal and
regulatory systems in place or these have already been planned for and expected to be put
in place shortly. These governments also are putting ICT to use for their own functioning with
the implementation of several e-governance projects at regional level and national level and
most of these governments have their own departments using PCs and having websites.
This is rather in contrast with the situation prevailing in the nations seen as least successful
in terms of e-Trade readiness. These nations are seen as having poor ICT infrastructure.
While some nations still use out dated technologies which have poor reliability, generally the
infrastructure in these nations has poor national coverage and Internet connectivity is seen
as that of inferior quality and/or expensive. It is also seen that there is nil or very limited role
of trade promotion agencies in these nations supporting e-business activities. Skilled
professional’s availability is also an issue in these nations.
The above features would indicate that these nations have no strategies at the policy level.
This is clearly seen in the matrix from the low macro level index of these economies. These

45
countries are either not having policies or they are at an early stage of planning. Very few or
no e-government initiatives were seen here.
Other countries falling in the middle category though do not show a common trend. They are
seen as lacking at some of the sub levels. The matrix clearly shows an imbalance in the
three levels for these nations. A general observation shows that most of these nations seem
to be having a reasonable to good support level index, but have poor enterprise level or
policy level indices or both.
This appears to be reflected at the enterprise level also as the reports indicate that there are
serious gaps starting from awareness level right up to e-Transactions. Though it is possible
that some enterprises may become e-enabled by sheer application and grit of their own,
unfortunately the meso and macro level factors will restrict not only their potential but also
their on-line transactionabilty.

ICT, Competitiveness and Trade Development

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