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4. IT Application and Development Trend
in the World
IT development, especially the network technology is changing
the information transmission method, communication method
of people and organization method of social management which
are formed in thousands of years, and greatly influencing
the way of social life, and operation of enterprises and governments.
4.1 E-Commerce
E-Commerce (Electronic Commerce) is a brand-new business
mode that is based on the Internet, and takes the two parties
of transaction as main bodies, and bank electronic payment
and accounting as means and relies on the customer data.
Concept of e-Commerce in narrow sense means to realize the
whole course of commodity and service transaction and transaction
management activities without papers by the use of modern
IT methods and using the Internet and computer unit to replace
the paper media information carrier of the traditional transaction
course in activities such as storage, transmission, statistics
and publishing, etc.; concept of e-Commerce in broad sense
means to realize the whole business activities in electronic
transaction through the use of whole IT technology. There
are not only transaction on the Internet, but also supply
chain management (SCM), customer relationship management
(CRM) and operation control system (OPS), etc. included.
1. E-Commerce grows rapidly in the whole world
Since the emergence of e-Commerce, it grows rapidly in the
whole world with sales amount doubled. World e-Commerce
sales amount only reached US$1.2 billion in 1994, but hit
US$300 billion in 2000. Meanwhile, e-Commerce transaction
amount of different countries in the world also increases
in a quite rapid speed. On-line retail rates in North American
region triple in the speed every year. Though e-Commerce
in Europe started 18 months late than that in America, it
is developed quite fast. According to the report made by
the Forrester Research, from year 2000 to 2004, total e-Commerce
trade volume in European countries will increment 100% every
year, and its total trade volume will hit the level of Euro
1600 billion in the following 4 years, accounting for 6%
of total trade volume in Europe. For Japan, Singapore and
South Korea with developed information industry in the Asia-Pacific
region, their e-Commerce is also developing very rapidly.
According to the E-Commerce Japanese and American Market
Scale Investigation published by Japan in March 1999: Japanese
B2B scale is about the half of American scale, and will
expand over 8 times by year 2003 by estimation, B2B e-Commerce
ratio (ratio of e-Commerce in Final demand plus intermediate
demand) will reach 11.2%.
2. Unbalanced development of e-Commerce in the world
At present, Development of e-Commerce in the world is unbalanced.
Application field and scale of e-Commerce in America is
far leading to that in other countries. Among the whole
world e-Commerce transaction, over 50% is occurred in America.
The international e-Commerce development situation has been
the pattern of the USA on the top and European and Asian
developed countries as the next following in the world.
Due to different application extent of IT and the different
level of informatization in different countries, e-Commerce
development will still be unbalanced in future. By year
2004, the world e-Commerce will reach 8.6% of the world
total trade volume, while e-Commerce in America, Australia
and Chinese Taiwan, China will amount to over 10% of total
volume of their own countries, and these countries will
be the leading ones of e-Commerce. It is shown in the Table.
3. B2B becoming the direction of e-Commerce
development in different countries
In several transaction mode of e-Commerce, B2C and B2B account
for more proportion, and B2B is the most. As viewed from
practice and tide wave of the development of international
e-Commerce development, B2B transaction could be considered
as the biggest e-Commerce transaction volume, which has
reached US$ 6 trillion dollars up to now, while B2C transaction
volume has only over US$400 billion. In addition, according
to the statistics of Department of Commerce USA, in 1998,
the USA e-Commerce is dominated by B2C with its transaction
volume accounting for 70% of e-Commerce. But ion 1999, it
went on the contrary, 70% of e-Commerce transaction volume
was B2B. Annual composite growth rate of B2B e-Commerce
is 79.98%. B2B trade volume of U.S. e-Commerce will reach
842 billion dollars by 2003. In China, nearly 99.5% of e-Commerce
transaction amount was B2B in 2000, while B2C only accounted
for 0.5%. It is estimated that B2B transaction volume will
be dominant position while the trade volume of B2C only
accounted for about 1/15 from 1997 to 2003. Though lots
of organs have different opinions over the proportion of
B2B in the whole e-Commerce, all think it exceeds 50%, as
shown in the Table.
4. Different application extent of e-Commerce
in different Industries
E-Commerce not only penetrates to different industries in
different sequence, but also the proceeds from different
industries are different. According to the research of Jupiter
Company: Computer and communication equipment production
enterprises are especially suitable to the application of
E-Commerce. In the future 5 years, five industries which
are computer/communication, food service and beverage, automobile
and attachments, equipment and raw material in the manufacturing
industry, and building and real estate will be the priority
industries to apply E-Commerce in the future, as shown in
the Table
4.2 Enterprise Informatization
Since the 1990s, IT represented by the computer technology
has got increasingly comprehensive and in-depth application
in the enterprises for their business, management, design
and manufacture, while having promoted the transformation
of the enterprises in the developed countries rapidly from
the production process automatization to the enterprise
informatization, and playing a great driving role to raise
the kernelcompetitiveness of enterprises.
1. Enterprise informatization in the USA The USA
renovated its traditional industry through IT, and turned
the slump trend of traditional industry in the 1990s. Its
Labor productivity has been keeping an annual average development
rate of 2.5% since 1990, over twice times that of 1970-1990
period. Information industry has become the important factor
contributing to economy growth of the USA. See the Table.
Viewing from enterprise information, the
informatization achievements of the USA enterprises are
mainly the following aspects:
Firstly, improvement of the production process and flow
by electronic IT. The USA put forward the computer integrated
manufacturing system (CIMS) in the 1970s for the first time,
and US Department of Commerce set up the CIMS Technical
Propagation Center in the early 1980s. In 1985, companies
in the leading position of CIMS were McDonnel-Douglas Aircraft
Co., General Motors Corp., Westinghouse Corp., and Ingersoll
Corp. Machine Tool Industry increased the production efficiency
greatly through equipment updating and the application of
the computer to control machine tool. In 1990, production
value of digital controlled machine tools amounted for 43%
that of the total machine tools. In the early 1990s, the
USA government listed CIMS as one of 22 key technologies
effecting fate and position of the national economy and
one of the 6 key technologies to improve the international
competitiveness of manufacturing industry. After putting
forward the concept of parallel engineering, precise production,
lightness manufacturing and product database management
in the 1990s, computer integrated manufacturing system is
becoming perfect and expanded increasingly. Till 1997, the
USA enterprises implementing the computer integrated manufacturing
system reached 100,000.
Secondly, application of electronic IT in management. Development
of IT creates conditions for the information acquisition,
storage, treatment and transmission in the production of
enterprises, which enable the informatization of enterprise
management, to become possible and keep continuously improvement
and perfection in the later course. Material Requirement
Planning (MRP) emerged in the 1960s, developed into Close
MRP with the integration of accounting management in 1970s,
and into MRP-II with the integration of production planning
management in 1980s. The application of enterprise management
informatization system in the USA had become quite popular
by the 1980s. For instance, General Motors Corp setup management
information system, which connect 65 sales department distributed
in 49 sates, 18 product warehouses in 11 states and 40 manufacturing
departments in 21 states all together by the use of network.
And by means of computer network, it could have factories
spreading over the whole country and reduce the costs of
management, warehousing, transportation and distribution.
In the 1990s, it developed Enterprise Resource Planning
system (ERP), which made it enter into the finance, commerce
and education trade. After the 1990s, most of big corporations
in the USA, such as Cisco and GE implemented ERP system
and raise the enterprise's competitiveness.
Thirdly, development of enterprise e-Commerce based on the
Internet. Emergence of Internet and development of e-Commerce
allow the enterprise informatization enter into a new development
stage. Logistic, information and fund flows between enterprises
got unified, which enabled the internal resources of the
enterprise make a timely reaction to the market, while having
realized the integration of information inside the enterprise
and informatization of the whole society, and greatly raised
the enterprise's competitiveness. Starting from year 2000,
the development of Internet began entering the global expansion
period. Along with the development of the Internet, ERP
system extended additionally the supply chain management
(SCM) and customer relationship management (CRM), realizing
the revolution on production and commodity circulation.
At present, SCM and CRM systems get quite extensive application
in the USA. The US enterprises have applied the network
to a quite high level. They integrate production, management
and business together, collect and combine all information
from raw material purchase to product sales in the network,
while further establishing the leading position of informatization
of US enterprises in the world. In the term of e-Commerce,
by the end of 1998, 60% of small enterprises, 80% of medium-sized
enterprises and over 90% of large-scale enterprises had
carried out comprehensively the e-Commerce activities with
the help of the Internet and up to year 2000, all large
enterprises in USA have realized informatization.
2. Informatization of British enterprises
As a main developed country in the West, the United Kingdom
clearly realizes that in the information times IT is the
key factor to decide whether the economy is successful or
not. In the meantime, with the gradual decrease of the competitiveness
of British traditional industries, the continuously increased
labor cost, and the intensively increased pressure of globalization
to enterprises' production, the British government realizes
that social informatization has become the inevitable trend,
and the enterprise informatization is an important means
to propel the development of economy at the network economic
times.
With the efforts of government and enterprise, British enterprise
informatization has improved quite rapidly, in the production
process, enterprises management informatization, especially
in Internet-based E-Commerce, it has taken the lead among
European countries. 70% of enterprises have implemented
E-Commerce to different level. In 1999, B to C-type e-Commerce
reached 1.2 billion, B to B-type reached pound 800 million.
Now Britain has become the largest e-Commerce market in
Europe.
4.3 E-Government
The key content of e-Government is to establish a virtual
government, that is: a round-clock government service system
spanning time, place and departments. E-Government can not
only save the government expense and improve the government
working efficiency, but also increase transparency of the
government decision and promote the development of e-Commerce
and environment informatization.
Along with the IT development, content of e-Government is
expanding continuously. In the 1970s and 1980s, e-Government
mainly means the office automation (OA), that is, to deal
with the internal business of office by the use of computer
technology, such as drawing, transmitting and conservation
of files and documents. At the late 1980s, content of e-Government
mainly was management information system that meant the
information processing and treatment system setup to meet
the requirement of the administrative supervisor, with a
key to support the decision and meet the requirement of
the administrative supervisor for the timely, accurate and
relevant information. After the 1990s, with the development
of international Internet technology and its application
to government administration, electronic government became
the main content of e-Government, and mainly meant the setup
of networking government information system by the use of
modern computer and communication technology on the basis
of government internal electronic automation, and provide
the government information and other public services for
enterprises, social organizations and citizens in more convenient
time, place and method through the different information
service facilities. Countries with relative better e-Government
are the USA, UK, Japan and France.
Because government is in a dominant position in the course
of pushing the country informatization, and government administration
is heavily dependent on the information, government informatization
is in a key and core position in national economy and social
informatization. In order to meet the challenge of information
society, many countries and regional governments on the
one hand actively develop national information infrastructure;
on the other hand they commit to the e-Government, reform
government by the use of IT and constitute electronic government
The US government level takes the lead over other countries.
Its government website construction is quite perfect and
mature. American federal government authorities all have
websites, and governments at state level all have their
websites too, and almost all countries and cities have setup
their own websites. The White House website is just the
most representative example, which is actually the center
of all US government websites and links all official websites
of the US government which have accessed to the Internet.
According to the statistics, as a result of e-Government,
from 1992 to 1996 the US government reduced its staffs by
240,000 people, closed nearly 2000 offices, and saved the
expenditure of US$ 11.8 billion. As for providing services
to residents and enterprises, 200 bureaus of the US government
defined 3000 items of service standard, abolished outdated
administrative regulation about 16000 pages and simplified
31000 regulations. In the USA, network setup of national
employer taxation administration system, Federal Government
National Purchasing System and account transferring system
not only save the large amount of property and materials,
but also improve transparency of government affairs, and
block the channel of jobbery.
British e-Government construction have got quite good improvement,
too. I stands in the world top. According to the investigation
made by BRINT Research Company of the American Business
Research Institute on the 250 government departments in
the US, UK, Canada, Austria and New Zealand, etc., it is
found that in UK 60% of government departments has opened
or on the way of constructing websites, while in other countries,
the highest of that rate is 53%. It is estimated by that
company that by year 2002, 41% of British citizens will
enjoy the government service mainly through the websites
of government authorities.
The Central Government of Japan basically set up the administration
information system and decision supporting system for the
main business activities. Central government spends around
US$ 8 billion to 10 billion for annual IT expenditure.
France once went against the Internet for the purpose of
culture protection. But since 1998, France has gradually
accepted the Internet. At present, there are almost 60 websites
of government department's on the Internet in France including
education, telecomm environment. In addition, the French
government also set up an index website for different department
websites. You can search the function of government authorities
according to name and responsibility, etx by the use of
this website.
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