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JCI e Commerce Kinan Bahnassi

This document summarizes key points about internet usage and e-commerce developments in the Middle East and Syria. It notes that internet usage in the Middle East grew significantly from 2000 to 2009, with Iran and Syria experiencing some of the fastest growth rates. The document also outlines the growing infrastructure and access to broadband/wireless internet in Syria that is enabling further e-commerce developments. Finally, it discusses some of the value, business models, requirements and barriers to e-commerce in Syria.

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293 views37 pages

JCI e Commerce Kinan Bahnassi

This document summarizes key points about internet usage and e-commerce developments in the Middle East and Syria. It notes that internet usage in the Middle East grew significantly from 2000 to 2009, with Iran and Syria experiencing some of the fastest growth rates. The document also outlines the growing infrastructure and access to broadband/wireless internet in Syria that is enabling further e-commerce developments. Finally, it discusses some of the value, business models, requirements and barriers to e-commerce in Syria.

Uploaded by

Modjorequest
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© Attribution Non-Commercial (BY-NC)
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‫كـنان البـهنـسي‬

‫مدير مشروع قاعدة بيانات سوق العمل ‪– UNDP‬‬

‫‪kinan.bahnassi@UNDPprojects.sy‬‬
‫‪27 – June 2010‬‬
E-Commerce - Kinan A. Bahnassi
Network of networks
INTERNET
2009 WORLD COMMERCE REPORT
How long to reach 50 mil users
globally?

E-Commerce - Kinan A. Bahnassi


Radio in 30 years;
TV in 10 years;
Internet by 1 year
INTERNET USERS IN THE WORLD - 2009

E-Commerce - Kinan A. Bahnassi


Source: UNCTAD 2010
WORLD INTERNET USERS DISTRIBUTION –
2009

E-Commerce - Kinan A. Bahnassi


Source: UNCTAD 2010
MIDDLE EAST AND INTERNET USAGE - 2009
Population User Growth
Middle East Population Usage 2000 Usage 2009
Penetration %

Bahrain 728,709 40,000 402,900 55% 907.25

E-Commerce - Kinan A. Bahnassi


Iran 66,429,284 250,000 32,200,000 48% 12,780.00
Iraq 28,945,569 12,500 200,000 1% 1,500.00
Jordan 6,269,285 127,000 1,500,000 24% 1,081.10
Kuwait 2,692,526 150,000 1,000,000 37% 566.67
Lebanon 4,017,095 300,000 945,000 24% 215.00
Oman 3,418,085 90,000 465,000 14% 416.67
Palestine WB 2,461,267 35,000 355,500 14% 915.71
Qatar 833,285 30,000 436,000 52% 1,353.33
Saudi Arabia 28,686,633 200,000 7,700,000 27% 3,750.00
Syria 21,762,978 30,000 3,565,000 16% 11,783.33 Second
UAE 4,798,491 735,000 2,922,000 61% 297.55 Fastest
Yemen 22,858,238 15,000 370,000 2% 2,366.67

Source: UNCTAD 2010


MIDDLE EAST AND INTERNET USAGE - 2009

E-Commerce - Kinan A. Bahnassi


Source: UNCTAD 2010
INTERNET DEVELOPMENTS IN SYRIA
 Broadband, ADSL, 3G, and wireless Internet access are
growing and the price is dropping.

E-Commerce - Kinan A. Bahnassi


 One of the fastest growing in the region

 Public access to internet through Libraries and Cyber


Cafés are increasing rapidly.
 Internet access in universities (Public / Private)

 Variety of ISPs for prepaid Internet Cards

 Access to the internet through Mobile Phones.


E-Commerce - Kinan A. Bahnassi
IMPORTANT DEFINITIONS
IMPORTANT DEFINITIONS
E-Commerce - Kinan A. Bahnassi
WHY E-COMMERCE?
SEVEN UNIQUE FEATURES OF
E-COMMERCE

E-Commerce - Kinan A. Bahnassi


WORLD TRANSACTIONS – B2B

World merchandise trade


13.1

E-Commerce - Kinan A. Bahnassi


World B2B e-transactions

10.4

8.88
7.8
7.28

3.6

2003 2005 2007


Source: WTO World Trade Report 2008
E-COMMERCE DEVELOPMENTS IN SYRIA
 E-commerce revolution is still beginning in Syria
 More and more people and businesses are using the Internet
to conduct commerce

E-Commerce - Kinan A. Bahnassi


 Few products and services come online
 Broadband and wireless Internet access are growing
 New business models based on social technologies
 The E-commerce gives SMEs the same tools as large
companies use to do business.
 Weak competition
 Excellent substitute for many services
 Tool for enhancing national competitiveness
 Creating more job opportunities
WHAT IS E-COMMERCE
 E-Commerce is the electronic exchange of:

E-Commerce - Kinan A. Bahnassi


Goods
Services
Information
Money
E-COMMERCE MATURITY MODEL
3 LEVELS OF DEVELOPMENT
3. c-Business
Integrating/Collaborating with
the back office information systems,
and connecting with business partners

2. t-Commerce
Ordering the products online (transaction),
E-Payment could be available online.

1. i-Commerce
Products Information available on the web,
Buying and selling on the usual channel
e.g. telephone, and fax
E-Commerce - Kinan A. Bahnassi
E-COMMERCE CATEGORIES
E-Commerce - Kinan A. Bahnassi
E-COMMERCE DEVELOPMENTS
THINGS YOU NEED TO KNOW ABOUT
SUCCESSFUL E-COMMERCE

E-Commerce - Kinan A. Bahnassi


E-Commerce - Kinan A. Bahnassi
E-COMMERCE BUSINESS MODEL
E-Commerce - Kinan A. Bahnassi
DIFFERENT BUSINESS MODELS
E-COMMERCE BUSINESS MODELS CONT.

E-Commerce - Kinan A. Bahnassi


THE E-COMMERCE APPROACH IS TO GIVE
PEOPLE:
Whatthey want,
Where they want it,

E-Commerce - Kinan A. Bahnassi


When they want it.

WWW
is purely incidental!
E-Commerce - Kinan A. Bahnassi
VALUE OF E-COMMERCE
E-Commerce - Kinan A. Bahnassi
VALUE OF E-COMMERCE
E-Commerce - Kinan A. Bahnassi
VALUE OF E-COMMERCE
E-Commerce - Kinan A. Bahnassi
VALUE OF E-COMMERCE
VALUE OF E-COMMERCE

Supplier Producer Wholesaler Retailer Customer

Traditional Supply Chain

Supplier Producer Wholesaler Retailer Customer

Supplier Producer Wholesaler Retailer Customer

Disintermediation

Supplier Producer Electronic Intermediation Customer

Re-intermediation
VALUE OF E-COMMERCE
 In order to business to survive, it needs to change their
business from traditional and product driven business to

E-Commerce - Kinan A. Bahnassi


more customer centric business.
 Business has to expand to new markets (local and
international)
 Business has to differentiate it self more often than
before.
 Business has to maximize the trade off between
efficiency and effectiveness.
 Business has to focus on profitable segments
IMPORTANCE OF E-COMMERCE BUSINESSES
 Proportionally low venture capital
 Greater economic empowerment through direct market

E-Commerce - Kinan A. Bahnassi


access (disintermediation – cut middleman)
 More technical skills acquired as a result

 Reaching consumers anywhere and anytime.

 Just in time feedback


PERSONALIZATION
 Nike ID – Design YOUR own Nike shoes
 Dell – Build YOUR own computer

E-Commerce - Kinan A. Bahnassi


 Hallmark – Design YOUR own greeting card

 1800-Flowers – Design YOUR own flowers bouquet

 Wedding Planer – Plan YOUR own wedding

 Expedia – Plan YOUR vacation

 Priceline – Name YOUR own price


BARRIERS TO E-COMMERCE IN SYRIA
 Infrastructure: Limited quality of communication and
services
 Rural Access: Still problematic

E-Commerce - Kinan A. Bahnassi


 Illiteracy: Literacy needed for using Internet, especially
among older people/women in rural areas
 Digital Literacy: Still low
 Policies: enabling environment and regulations
ENABLING ENVIRONMENTS
INFRASTRUCTURE:
Access to Technology & Connectivity,
Telecommunication Infrastructure, &
Supporting E-Services

E-Commerce - Kinan A. Bahnassi


LEGAL:
Governmental COUNTRY-WIDE
Policies and ACCEPTANCE & DIFFUSION
Support, & Legal
of E-COMMERCE
Environment and
Practices

SOCIO-ECONOMIC:
Business Environment, Consumer and
Business Practices, & Social and Cultural
Characteristics
E-COMMERCE MAJOR REQUIREMENTS
 Security - Encryption and decryption
 Authentication - Digital signatures digital signatures and

E-Commerce - Kinan A. Bahnassi


electronic contracts
 Consumer protection - In an electronic market

 Intellectual property rights – Protection to the


innovator's ideas
 Electronic payments – Involving Central Banks in e-
Commerce policy development
Finally
“Technology is the answer, then what is

E-Commerce - Kinan A. Bahnassi


the question?”

Today, technology has changed, but the


question hasn’t.
WHAT MAKES YOUR

E-Commerce - Kinan A. Bahnassi


BUSINESS FAST,
FLEXIBLE, EFFECTIVE
AND EFFICIENT?
“Be the change you wish to see in the
world”
M. GANDHI

Thank You
Kinan A. Bahnassi

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