beyond pt 0 23/1
beyond pt 0 23/1
beyond pt 0 23/1
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
Cha<strong>pt</strong>er One<br />
Study context, aims and e-commerce trends<br />
This Cha<strong>pt</strong>er places the study into context. It sets out the study aims and<br />
discusses how these are achieved. The Cha<strong>pt</strong>er also aims to establish some<br />
dimensions of the remarkable transformation that e-commerce is bringing<br />
in Australia and globally.<br />
1.1 The aims of the study<br />
There is compelling evidence that the economy is in the midst of a major<br />
structural change.<br />
The challenge that this study addresses is to forecast the structural change<br />
that e-commerce may bring. It aims to provide an indication of the likely<br />
nature of changes that are in store and their flow on impact through the<br />
economy at large using quantitative measures where practical, recognising<br />
that information about the nature of the change that is underway is still<br />
fragmentary. While taking into account the developments that can be<br />
expected abroad, the focus is upon what greater utilisation of e-commerce<br />
will mean for Australia.<br />
1.2 Approach to the study<br />
This study has combined the application of economic models based on<br />
theoretical frameworks with qualitative input from business leaders to<br />
form a rigorous and balanced approach that seeks to minimise the pitfalls<br />
inherent in each used in isolation. Industry input was obtained from an<br />
Industry Reference Group while the MONASH model was used as the<br />
framework for the main quantitative part of the analysis.<br />
The Industry Reference Group<br />
The Industry Reference Group (IRG) comprised of business leaders from<br />
selected industry sectors that were invited to join. All of the IRG members<br />
have considerable practical expertise and an understanding about the key<br />
strategic issues. All hold responsibilities for the use of e-commerce in<br />
conducting their business, assessing its impact upon them, or advising<br />
about e-commerce issues in general.<br />
While drawing on IRG advice and input, decisions about the direct<br />
impacts, the nature of the flow on impacts and other findings remained<br />
the responsibility of the consulting team.<br />
A framework for economic analysis<br />
The MONASH model is a computable general equilibrium model of the<br />
Australian economy and provides a powerful tool for analysing structural<br />
change of this nature. Its use also imposes considerable discipline. It<br />
requires analysts to concentrate on impacts that are measurable in much<br />
the same way as those impacts are measured in the national accounts.<br />
Most importantly, in using the model it is not possible to extrapolate<br />
growth <strong>beyond</strong> the underlying capacity of the economy to deliver it<br />
within likely resource constraints, just as the real world economy is<br />
subject to similar constraints.<br />
1