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E-commerce allows some flexibility in the types of products that can be offered to clients and also in the range of products that can be presented to customers. In conjunction with advances in other business software, the benefits of speed of transfer using email and Internet can lead to a number of different products being presented to customers easily and quickly. For example, architects could create different building designs using special software, and then send them to the customer electronically for their consideration. Similarly, engineers could present electronic versions of different design prototypes to customers. Box 5.1 E-commerce and the legal profession Blake Dawson Waldron is recognised internationally as an innovator and leader in the application of information technology to the practice of law. They have created a range of new e-commerce products and services that have altered the way in which the legal profession interacts electronically with the wider community. SOAL(Summaries of Australia Legislation) SOAL is a database containing summaries of environmental and occupational health and safety statutes and regulations in force throughout Australia. Its purpose is to inform employees in organisations about their legal obligations so they can deal with situations as they arise or seek further assistance. Developed for non-legal personnel, it is written in plain English and keyworded. The product is to be made available shortly on the Internet and has received an award in the 1999 NSW CCH Emerging Legal Technology Awards. Due diligence/legal audits Blake Dawson Waldron design and implement computerised systems for use in due diligence investigations, legal audits and legislative reviews. These systems provide a systematic approach to gathering and processing information and produce useful and detailed reports and databases for later use. This in turn provides significant cost and time savings, particularly by reducing the amount of management time expended on the investigation. These systems include imaging and the use of CD-ROM and online delivery methods to create ‘virtual data rooms’. Virtual Legal Advisers Blake Dawson Waldron is developing a range of online Virtual Legal Advisers for the Australian legal and corporate market. These are browser-based expert systems that can be accessed over the Internet or an organisation’s Intranet. Using a Virtual Legal Adviser, an organisation’s legal department can deploy applications that provide answers to legal questions and, where they cannot do so, intelligently interview users to collect the information needed to assess a situation. The benefits of deploying a Virtual Legal Adviser over the web are enormous and include significant time savings, 24 hour a day access, increased awareness of legal requirements and minimising the ‘human error’ factor. Source: Blake Dawson Waldron Legal Technology Group. 5.5 External dimensions E-commerce is facilitating Australia’s interconnection with the global market. Use of e-commerce in business services is a global phenomenon and in this respect many firms recognise that it is imperative to maintain the pace of the global ado<strong>pt</strong>ion of e-commerce to be competitive. Development of new electronic business modes of service delivery will not only enhance the efficiency with which services can be delivered, but augment access to larger markets. Business services firms located in Australia have indicated that with e-commerce and other infrastructure 118
they expect to meet increasing demand from Asia. They see e-commerce as removing a constraint to allow Australia to take advantage of its relatively inexpensive professionals and its time-zone complementarity with Asia. The free flow of information in the professional services sector and relaxation of barriers to competition will enable cross-jurisdictional provision of services. Many large Australian professional service firms are already globalised (particularly accounting and business services), and we are now seeing the beginnings of globalisation of Australian law firms. This trend is likely to accelerate at an increasing rate in the medium term. Those organisations which are able to take advantage of a global market while at the same time protecting existing revenue will see increasing returns and reduced costs, while those who cannot, will face significant threats to their existing business. Survey Response: Duncan Giles, Blake Dawson Waldron, IRG member, 20 July 1999 Just as e-commerce allows overseas firms to establish in Australia, so it allows Australian firms to undertake work overseas. The net effect is dependent on the extent to which the Australian business services sector can compete in an increasingly global market. It is important, however, to bear in mind that some barriers to trade in this area are likely to remain. Many of the business services sector functions are based around legislation or guidelines that are unique for each country (e.g. law, accounting, surveying). Some functions such as advertising and graphic design require an understanding of the local environment and culture to be successful. Perhaps the greatest influence the business services sector has on Australia’s trade performance is as an input to other businesses. A business services sector that uses e-commerce efficiently to deliver high quality services to Australian industry will undoubtedly assist Australian industry compete on world markets. Key points The main advantages of e-commerce to the business services sector are in accelerating knowledge transfer and improving the quality of data transfer. Cost savings to the sector can be realised from improvement in the efficiency of internal processes as well as savings in the cost and time of delivery of products to clients, while greater use of e-commerce will stimulate disintermediation in this sector. E-commerce will also allow greater flexibility in the types and range of products that are presented to customers. When looking at quantitative analysis of the sector it seems reasonable to factor in: – modest savings in retail margins in the sector (i.e. reduced costs through greater disintermediation); – direct labour savings; – time saving as an efficiency gain for industries that use business services as well as households; and – reduction in sector inputs such as paper; machinery and equipment, and financial and business services. 119
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© Commonwealth of Australia 2000 I
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Table of contents Foreword ........
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Part 2 - Case studies Section One I
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Executive summary E-commerce is sti
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Part 1— economic analysis
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Chapter One Study context, aims and
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Within the business-to-business cat
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Table 1.4 Projected growth in econo
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Chapter Two Economic issues What di
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Exhibit 2.1 Disintermediation effec
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Table 2.1 E-commerce impact on vari
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Chapter Three Changes ahead—indus
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Health Significant efficiencies sta
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Chapter Four Economy-wide assessmen
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Direct changes and flow on impacts
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consumption relative to economic ac
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External competitiveness Greater us
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Industry outcomes Greater use of e-
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Food products The food products sec
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people with differing occupational
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Tasmania and the Northern Territory
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Table 4.2 Regional growth and emplo
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The data for country regions (Exhib
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impacts are a reasonable representa
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Chapter Six Policy implications and
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Appendix A Study methodology, shock
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confidence. This is at the expense
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All of the GDP gain generated by ch
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(s11) Saving of particular inputs I
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Table A.1 continued Commodity Per c
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Table A.2 continued Engine & Boiler
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Table A.2 continued Safety Inspecto
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Table A.3 continued Industries 2007
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B.2 The structure of MONASH The cor
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simulations it is assumed that the
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Table B.1 (Continued) MONASH-RR Reg
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C.2 Forecasts for macroeconomic var
Page 79 and 80: other grains, iron and non-iron ore
Page 81 and 82: The numbers in column (II) of Table
Page 83 and 84: Productivity growth over the histor
Page 85 and 86: forecast of a 0.1 per cent decline
Page 87 and 88: Productivity growth in the construc
Page 89 and 90: Employment prospects in the sector
Page 91 and 92: Table D.1 continued Textiles, cloth
Page 93 and 94: Table D.1 continued Health, educati
Page 95 and 96: Table D.2 continued 45 Bags and Con
Page 97: Part 2 — case studies
Page 100 and 101: Industry sectors’ use of e-commer
Page 102 and 103: e-commerce were chosen. Key questio
Page 104 and 105: Banking For some time now most of t
Page 106 and 107: 2.3 Cost savings Banks are keen to
Page 108 and 109: 2.5 Changing business modes Branch
Page 110 and 111: Banks are also looking to take adva
Page 112 and 113: NAB, as a multinational, is already
Page 114 and 115: activities such as consumer electro
Page 116 and 117: Box 3.2 Building a business on e-co
Page 118 and 119: One of the issues for all industrie
Page 120 and 121: 108
Page 122 and 123: Box 4.2 Australia Post and e-commer
Page 124 and 125: Opportunities are being created for
Page 126 and 127: Value can be transferred into Austr
Page 128 and 129: Continued use of email and the deve
Page 132 and 133: 120
Page 134 and 135: are introduced to market at a start
Page 136 and 137: educe the duplication of assessment
Page 138 and 139: 6.3 Cost savings as a result of ele
Page 140 and 141: The primary e-commerce tools for im
Page 142 and 143: New service modes and channels to t
Page 144 and 145: 132
Page 146 and 147: This Section will review the implic
Page 148 and 149: of greater depth. (It should be not
Page 150 and 151: consumers watch five per cent less
Page 152 and 153: artist is the promotion which airpl
Page 154 and 155: New costs The fragmentation and reg
Page 156 and 157: gambled. The development of Interne
Page 158 and 159: 146
Page 160 and 161: Making a purchase over the Internet
Page 162 and 163: Customers who access troubleshootin
Page 164 and 165: they does not actually sell those i
Page 166 and 167: Key points There are few other sect
Page 168 and 169: e-commerce allows quicker order pro
Page 170 and 171: 9.3 New costs The demand for busine
Page 172 and 173: How a ticket is sold, through an ag
Page 174 and 175: Box 10.1 Case study: E-commerce and
Page 176 and 177: The education and training sector h
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Page 180 and 181:
11.2 Production Manufacturing busin
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Opportunities for re-intermediation
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Value could transfer within the sec
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174
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years’ time. 30 This reflects an
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seeks to provide a point of referen
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To a small extent, direct selling t
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Box 13.1 Austmine—a window for th
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Box 13.2 Leaving mining sites for w
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