Chapter 2,E-Commerce Development Strategy,www.usstec.com,Chapter 2,2.1 The Significance of the Research of E-Commerce Development26 2.2 The Environment of E-Commerce Development 2.3 Government Strategy of E-Commerce 2.4 Enterprise E-Commerce Strategy Development 2.5 The Strategy of the Development of EDI,www.usstec.com,2.1 The Significance of the Research of E-Commerce Development,E-commerce stands for the development direction of future trading, and its applications bring more and more benefits to the society and economy. E-commerce has become one of the largest momentums for global economy growth, and the modern electronic trading measures with strong vitality have been increasingly recognized.,www.usstec.com,Chinas economic competition relies heavily on modern technology and new ideas. The acceleration of E-commerce development will make up for the deficiency on the part of China. E-commerce is becoming urgent in that it will promote Chinas economy and help the country enter smoothly into global economic integration.,2.1 The Significance of the Research of E-Commerce Development,www.usstec.com,2.2 The Environment of E-Commerce Development,while the value of on-line transactions is increasing, it is not increasing at the same speed as that at which businesses connect to the Internet. In the United States, E-commerce between enterprises (B2B), which in 2002 represented almost 93 percent of all E-commerce, accounted for 16.28 percent of all commercial transactions between enterprises.,www.usstec.com,Although some developing countries have started to collect ICT indicators through their official statistical systems, the data are not always comparable across countries or with those of developed countries. In many Western countries, the Internet has become an important channel through which international business activities take place. China E-commerce is still in its infancy (Associated Press, 2000).,2.2 The Environment of E-Commerce Development,www.usstec.com,Internet connections were first allowed in 1994; by the end of October, the number of Internet users reached 620 000. Growth since has been exponential; at the end of June 2000, there were 16.9 million Internet subscribers and 27 289 websites in China. The number is expected to grow to around 40 million by 2003 (Jusko, 2000).,2.2 The Environment of E-Commerce Development,www.usstec.com,Chinese government is urging many local businessesnotably state enterprisesto continue to promote E-commerce development. In 1993, the government spent RMB 50 billion laying fiber optic cable networks under all major cities. This demonstrates the CCPs commitment to support E-commerce.,2.2 The Environment of E-Commerce Development,www.usstec.com,Official estimates are constantly under revision, but indicate that on-line transactions in 2000 are expected to amount to a rather spare US $42 million or a slightly more generous RMB 800 million. However, these figures represent from 6 to 14 times the previous years total, with another ten-fold increase forecast for the next two years.,2.2 The Environment of E-Commerce Development,www.usstec.com,2.2.1 Social and Political Environment,by the end of June 30 of 2007, there are 162 million Internet users in China 。it has been drawn an attractive perspective in the area of E-commerce which is being proved by the ever-increasing profit from it. China is still viewed as one of the great-untapped Internet territories. Research firm IDC predicts that E-commerce revenues in China will grow from $43 million in 2003 to $12 billion by 2004.,www.usstec.com,Chinese government has been convinced of the existing and/or expected profit from E-commerce and meanwhile the government apparently finds there are still some potential risks, if we dont have adequate regulations.,2.2.1 Social and Political Environment,www.usstec.com,In order to more effectively and efficiently regulate this unknown quarter, new rules have to be legislated. In the remaining section, why those regulations are fit for China nowadays, will be given, compared with different situations between China and those developed countries. those regulations are admittedly not without problems and it has to be improved to catch up with revolution of technology and economy.,2.2.1 Social and Political Environment,www.usstec.com,2.2.2 Resource Environment,After spending millions of dollars purchasing IT infrastructure and developing software, they need sophisticated E-commerce capabilities and a customizable site they are in control of, and they are not in the business of developing software.,www.usstec.com,18-month major release cycles that require most of the development to be focused on building and testing compatibility for operating systems, database systems and application servers. For those companies who try to support both an on-demand model and licensed software, the differences in the business and development cycles are so complex, that it puts their business model at risk.