Electronic Commerce
- Project team:
Riehm, Ulrich (Project leader); Carsten Orwat; Bernd Wingert; Thomas Petermann ; Christoph Revermann; Christopher Coenen; Constanze Scherz
- Funding:
Deutscher Bundestag
- Start date:
2000
- End date:
2002
- Research group:
Innovation processes and impacts of technology
Project description
On behalf of the Bundestagsausschuss für Wirtschaft und Technologie (Bundestag committee for economy and technology), the Office of Technology Assessment of the German Bundestag has carried out a project on the perspectives of e-commerce in Germany. The project was accomplished in close cooperation between ITAS and TAB staff.
- What perspectives does e-commerce (business to business, business to customer, as well as business to public sector) offer for growth and employment in Germany?
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What legal deregulation and regulation is necessary to let these potentials develop fully in Germany?
- What chances and challenges will develop for small and middle sized companies as a consequence of more e-commerce?
- What possibilities of reducing bureaucracy, of increasing efficiency in public administration, and of enhancing service quality will develop through e-commerce and similar processes? How can public procurement be optimized?
- What consequences for the labor market and the world of employment will have to be expected from increased e-commerce?
- How will structures within businesses change through e-commerce? Will there be more small and middle sized companies or will e-commerce lead to more concentration in economy?
- How and to which extent will the manufacturing industries, intermediary trade, and retail react to the changing order and shopping habits (online, twenty-four-seven) of the customers?
- With what manufacturing concepts, logistics strategies, and infrastructural measures could the growing traffic be met adequately so that there will be no diffusion bottleneck?
- How well are e-commerce offers and new e-commerce marketing functions accepted by the consumer?
- How important are alternatives to the Internet-based e-commerce as e.g. e-commerce on television or on mobile phones?
- What are the
consequences of e-commerce with regard to ecological considerations in the
broadest sense (traffic-related aspects, dematerialization, waste prevention,
energy efficiency, etc.)?
In October 2002, the final report was accepted by the Bundestagsausschuss für Bildung, Forschung und Technikfolgenabschätzung (Bundestag committee for education, research, and technology assessment) and published as TAB-Arbeitsbericht (work report) Nr. 78 and also as Bundestagsdrucksache (printed matter) 14/10006.
Riehm, U.; Petermann, Th.; Orwat, C.; Coenen, Chr.; Revermann, Chr.; Scherz, C.; Wingert; B.: E-Commerce in Deutschland. Eine kritische Bestandsaufnahme zum elektronischen Handel. Berlin: edition sigma (Studien des Büros für Technikfolgen-Abschätzung beim Deutschen Bundestag, Bd. 14)
more on the book
Results
Results
The TAB project consisted of two working phases. During a preparatory phase, the current knowledge and research status on selected dimensions of the group of themes was surveyed by a panel of experts by means of brief assessments. During a second phase, starting from summer 2001, e-commerce and its impact on individual economic sectors was analyzed more profoundly. The project was terminated with a comprehensive final report in July, 2002.
The first project
phase was focused on the following topics:
- Conceptual explanations and a first broad survey on e-commerce
- Infrastructural and logistic prerequisites for the innovation of e-commerce
- Initial deepening analysis of the status of development and of the further perspectives on electronic commerce among businesses via electronic market places and on commerce with digital goods
- E-commerce politics
Selected results of the first project phase were presented to the interested delegates of the German Bundestag in spring, 2001. Additionally, these works were documented in three TAB background papers on the prerequisites for the innovation of e-commerce.
The assessment of the comprehensive second project phase was focused on the analysis of selected economic sectors and industries. It was meant to record the variety of e-commerce forms that had been developed in the context of the specific conditions within the industries. All of the eight industries and economic sectors where selected with the objective of reproducing the e-commerce scenery, preferably systematically and broadly conceived. Beside these topic areas around economic sectors, horizontal issues of e-commerce were taken up and topics from phase one were updated and deepened.
Definitions, forms, and players
The term “e-commerce”
is often used in a very broad sense of meaning. Even the information on
e-commerce on the Web aiming at sale is already labelled e-commerce, or even
the support of internal business processes by information- and communication
technologies. In the frame of this study, by e-commerce should be meant only
processes involving transactions on public markets accessible via interactive
electronic media, e. g. the Internet, that originate the exchange of goods
against payment. The definition of electronic commerce used in the TAB project
emphasizes the fact that the trade agreement (the contract formation) was
enforced via an electronic medium (e. g. WWW). However, delivery and payment do
not have to be concluded likewise, conventional procedures can be used
therefor.
Four characteristics, at least, have become established regarding e-commerce:
- Trade between two companies (business-to-business or B2B)
- Trade between a company and a private household (business-to-consumer or B2C)
- Trade between companies and public authorities (business-to-government B2G) and
- Trade between two private households (consumer-to-consumer or C2C).
According to the the consistent assessment of experts, trade between companies will account for the greatest part of electronic commerce, even if trade with consumers gets more attention in public. Trade between companies and public authorities is addressed for two reasons: On the one hand, public authorities are meant to assume a leading role, on the other hand, they are most probably in need of catching up on making procurement more effective. Trade between two private individuals maybe covers the greatest potential for winning new markets.
Pull effect without habituation effect: Indeed, internet shopping has been increasing in Germany since 1998. However, the share of the ones who shop online frequently has remained relatively small, according to a survey of the Institut für Demoskopie Allensbach. (Source: Riehm et al.: E-Commerce in Deutschland, Berlin 2003)
Industry analysis
- Technology and innovation research have shown that particularly information and communication technologies correlate strongly with the context of their application, especially during the initial phases of their innovation processes. On the one hand, they have to be adapted to the respective context of application that can be of technical, organizational, or of institutional nature. On the other hand, they also change that context of application, directly and indirectly. When compared to the initial state, the results of these adaption processes are usually not only changed but differentiated “technological” systems that are to be understood rather as techno-social configurations since the respective IuK system, the standardized product catalogs, the informal and the formal commercial customs, the legal frame conditions, and much more constitute a part of electronic commerce. Therefore, the analysis of e-commerce cannot be done any longer comprehensively and independent of application in a mere technical way. The potential and consequences of e-commerce do not show “clearly” but always just as part of the specific application and under consideration of the respective frame conditions.
- An adequate possibility of dealing with an application context is looking at industries analysis. These industries are shaping e-commerce crucially through their specific structure, the status of EDP employment, the product range and the regulating frame conditions, as well as through the possibilities of implementation.
- For the TAB study, eight industries were selected for a detailed analysis. The selections were made according to a number of criteria: Traditional manufacturing industries as well as information oriented new industries were meant to be part of this, industries in which e-commerce is already far advanced, and such ones where it is just starting, industries with frame conditions that restrict commerce strongly and relatively unrestricted ones, such ones with strong and such ones with weak competition, such ones with concrete and such ones with digital products. It was not aimed at a systematical virtually experimental variation of the features but rather at a selection by sophisticated criteria. The eight industries selected in this way can be characterized as follows:
- Food trade stands for industries characterized by very strong competition, strong concentration processes, tight margins, and high customer demands regarding product quality and supply. The conditions for e-commerce are particularly difficult, especially regarding B2C.
- Automotive industry represents the established “old economy” that has always been innovative with regard to IT. Internet and e-commerce seamlessly fitted into this technology-oriented innovation process. Nevertheless, automotive industry also stands for special challenges regarding distribution structures, with free competition seriously constrained by heavy regulation.
- In Germany, pharmaceutical trade, at present, is also subject to provisions that prohibit mail order selling, B2C, and with it electronic commerce. Due to transnational offers on the Internet, but also due to the prospect of cost reduction for pharmaceuticals regarding the budget of health insurance institutions, and due to the prospect of savings for the patients deregulation is discussed in the political environment, strongly opposed by affected pharmacists.
- Trade with media products (esp. books, musical and cinematic works) is of special interest as these products can in fact be digitalized and because an entirely electronic commerce, supply phase included, is conceivable in this case. This industry is also interesting as books are offered at the same price everywhere (price maintenance) while CDs and videos are subject to price competition.
- Only since 1998, companies and private households have had the possibility to purchase electricity on the open market. This new electricity market stands in a close relationship to the possibilities of e-commerce. Electricity as a commodity has special characteristics and a special status in between material and digital goods. Stock exchange trading is one of the pioneers of electronic commerce. Electronic trading has already existed at a time when e-commerce was not even talked about yet.
- Stock exchange is for another reason predestined for e-commerce: it is about mere accounting processes without the occurrence of any materiality.
- Services are part of those commodities that, basically, can be digitalized. Through the intense relationship between suppliers and customers, the requirements regarding the implementation of e-commerce seem to be especially high. Additionally, many sectors of the service industry are restricted by special legal regulations and, therefore, not part of the open market.
- Public procurement processes are of special interest especially for two reasons. First, electronic procurement is seen as a very promising field of application for electronic commerce with a high saving potential. Second, the public sector is not only one of the most important buyers but he also is subject to the necessity of saving and of rationalization.
Differentiated problem solving potential
The employment of e-commerce has got to offer a highly differentiated problem solving potential. Accordingly, in a specific case, process integration is in the foreground, in another case, it is more transparency, and in another case, ordering processes have to be made more effective while, in a further case, e-commerce has to be adapted to the requirements of the customer.
Research- and political demand for action
The final report points to a number of open research questions and to political fields of action that are presented here in extracts.
Selected publications
Final report
Riehm, U.; Petermann, Th.; Orwat, C.; Coenen, Chr.; Revermann, Chr.; Scherz, C.; Wingert, B.
E-Commerce in Deutschland - Eine kritische Bestandsaufnahme zum elektronischen Handel. Berlin: edition sigma 2003
(Studien des Büros für Technikfolgen-Abschätzung beim Deutschen Bundestag, Bd. 14)
more on the book
This printversion of the final report is a revised and updated version of TAB-Arbeitsberichts (work report) Nr. 78 that was also published as Bundestagsdrucksache 14/10006:
Riehm, U.; Petermann, Th.; Orwat, C.; Coenen, Chr.; Revermann, Chr.; Scherz, C.; Wingert, B.
E-Commerce - Endbericht. Berlin: Büro für Technikfolgen-Abschätzung beim Deutschen Bundestag (TAB) 2002
(TAB-Arbeitsbericht Nr. 78)
Summary/htm
TAB background paper on the conditions of innovation in e-commerce
In the framework of the TAB project "E-commerce" three background papers where issued under the title "Innovationsbedingungen des E-Commerce" that document partial results of the project.
Petermann, Th.
Innovationsbedingungen des E-Commerce - Das Beispiel Produktion und Logistik. Berlin: Büro für Technikfolgen-Abschätzung beim Deutschen Bundestag (TAB) 2001
(TAB-Hintergrundpapier Nr. 6)
Summary/htm
The report analyses the transformation of the functional areas production and logistics as crucial requirements for a further growth of the electronic commerce.
Riehm, U.
Innovationsbedingungen des E-Commerce - die technischen Kommunikationsinfrastrukturen für den elektronischen Handel. Berlin: Büro für Technikfolgen-Abschätzung beim Deutschen Bundestag (TAB) 2002
(TAB-Hintergrundpapier Nr. 7)
Summary/htm
The report covers the question which of the three biggest communication infrastructures - Internet, mobile communications, radio - are suitable for e-commerce and how their further development will look like.
Orwat, C.
Innovationsbedingungen des E-Commerce - der elektronische Handel mit digitalen Produkten. Berlin: Büro für Technikfolgen-Abschätzung beim Deutschen Bundestag (TAB) 2002
(TAB-Hintergrundpapier Nr. 8)
Summary/htm
An analysis on whether the expectations for economical success and high efficiency of digital goods are justified in the course of the implementation of the "digital economy" resp. of the "New economy".
While stocks last, printed versions can be ordered with the secretariat (buero). ∂ tab-beim-bundestag de
"TA-Datenbank-Nachrichten Nr. 4/2001" Schwerpunkt E-Commerce-Politik (focus point e-commerce policy)
In the context of the project, the focus point of issue 4/2001 of "TA-Datenbank-Nachrichten" became "E-Commerce-Politik" (e-commerce policy) by Ulrich Riehm and Carsten Orwat with contributions by H. Hauser, S. Wunsch-Vincent (on the significance of UN organizations), V. López-Bassols, G. Vickery (on the role of OECD), C. Santos, M. Perogianni (on the view of the EU commission), R. Pichler (on the e-commerce policy of the USA), R. Hochreiter (on the e-commerce policy of the German government), G. Fuchs (on regional e-commerce policy), J. Rieß (on self-regulation form the economy's perspective), M.G. Cowles (on the global business dialog on e-commerce), and by M. Rothgang, M. Scheuer (on the question if autonomous e-commerce policy is needed or not).
The table of contents and the complete articles you will find here.
Further selected publications
Riehm, U.
E-Commerce: Begriff, Geschichte, aktueller Stand und Ausblick. In: Kübler, H.-D.; Elling, E. (Hrsg.): Wissensgesellschaft. Neue Medien und ihre Konsequenzen. Bonn: Bundeszentrale für politische Bildung (bpb) 2004
(Medienpädagogik - auf CD-ROM sowie im Internet)
Volltext/pdf
Riehm, U.
E-Commerce bleibt auf der Agenda von Wirtschaft und Politik. TAB-Brief (2002)23, S. 12-15
Volltext/pdf
Orwat, C.; Petermann, Th.; Riehm, U.
Elektronischer Handel und Nachhaltigkeit. In: Grunwald, A. (Hrsg.): Technikgestaltung für eine nachhaltige Entwicklung. Von der Konzeption zur Umsetzung. Berlin: edition sigma 2002, S. 245-275
(Global zukunftsfähige Entwicklung - Perspektiven für Deutschland, Bd. 4)
Riehm, U.; Orwat, C.; Petermann, Th.
Stand, Perspektiven und Folgen des E-Commerce. In: Weinhardt, Ch.; Holtmann, C. (Hrsg.): E-Commerce - Netze, Märkte, Technologien. Heidelberg: Physica 2002, S. 1-18
Volltext/htm
o.A.: Handel mit digitalen Produkten. In: TAB-Brief 21 (Dezember 2001), S. 23-26 hier
o.A.: Elektronischer Handel bereits fest etabliert? In: TAB-Brief 20 (Juni 2001), S. 23-25 hier
Publications
E-Commerce. Begriff, Geschichte, aktueller Stand und Ausblick
2004. Wissensgesellschaft : Neue Medien und ihre Konsequenzen Bonn : Bundeszentrale für politische Bildung. Hrsg.: H.D. Kübler, CD-ROM, Bundeszentrale für Politische Bildung (BPB)
Digitale Güter in der Buch- und Musikbranche - ein lohnendes Feld für die Technikfolgenabschätzung
2003. Umwelt und Technik im Gleichklang : Technikfolgenforschung und Systemanalyse in Deutschland. Berlin, 2003. Hrsg.: G. Stein, 181–198, Springer
Veränderungen in der Produzenten-Konsumenten-Beziehung beim elektronischen Handel - Beispiele aus dem Verlags- und Buchhandelsbereich
2003. Wirtschaftsethische Fragen der E-Economy. Hrsg.: P. Fischer, 187–201
E-Commerce in Deutschland : Eine kritische Bestandsaufnahme zum elektronischen Handel
2003. edition sigma
Elektronischer Handel und Nachhaltigkeit
2002. Grunwald, A. [Hrsg.] Technikgestaltung für eine nachhaltige Entwicklung : Von der Konzeption zur Umsetzung. Berlin : Edition Sigma, 2002 (Global zukunftsfähige Entwicklung - Perspektiven für Deutschland; 4), 245–75
Stand, Perspektiven und Folgen des E-Commerce
2002. Weinhart, C. [Hrsg.] E-Commerce : Netze - Märkte - Technologien Heidelberg : Physica Verl., 2002, 1–18
Editorial: Elegant Standards and Everyday B2C E-Commerce
2002. ePSO-Newsletter, 2002 (12), 60–61
Innovationsbedingungen des E-Commerce – der elektronische Handel mit digitalen Produkten
2002. Büro für Technikfolgen-Abschätzung beim Deutschen Bundestag (TAB). doi:10.5445/IR/1000103137
E-Commerce. Summary
2002. Büro für Technikfolgen-Abschätzung beim Deutschen Bundestag (TAB). doi:10.5445/IR/1000137644
E-Commerce. Endbericht zum TA-Projekt
2002. Büro für Technikfolgen-Abschätzung beim Deutschen Bundestag (TAB). doi:10.5445/IR/1000103601
Electronic Commerce
2001. 1999/2000 Jahrbuch des Instituts für Technikfolgenabschätzung und Systemanalyse (ITAS). Hrsg.: A. Grunwald, 169–173, Forschungszentrum Karlsruhe (FZKA)
E-Commerce-Politik: Warum, Was, Wie, Wann und Wer?
2001. Technikfolgenabschätzung, Theorie und Praxis, 10 (4), 3–10. doi:10.14512/tatup.10.4.3
Stand und Zukunft des digitalen Hörfunks und des digitalen Fernsehens in Deutschland. Darmstadt, 26. Januar und 2. Februar 2001
2001. Technikfolgenabschätzung, Theorie und Praxis, 10 (2), 142–147. doi:10.14512/tatup.10.2.142
Die Ambivalenz von Innovationen und die Zukunft der Arbeit. Ethische Aspekte des elektronischen Handels
2001. Tagung ’Wirtschaftliche Fragen der e-Economy’, Stuttgart, 15.November 2001
Digitalisierung und Individualisierung von Produkten und Diensten. Veränderungen in der Hersteller-Konsumenten-Beziehung
2001. 4.Tagung des Ausschusses Wirtschaftsethik der Allgemeinen Gesellschaft für Philosophie in Deutschland ’Wirtschaftsethische Fragen der E-Economy’, Stuttgart, 15.-17.November 2001
Alles anders? Zum Handel mit digitalen Gütern am Beispiel der Musik- und Buchbranche
2001. 2.Fachgespräch in der TAB-Veranstaltungsreihe ’Innovationsbedingungen des E-Commerce’, Berlin, 4.April 2001
Michael Latzer (Hrsg.): Mediamatikpolitik für die Digitale Ökonomie: eCommerce, Qualifikation und Marktmacht in der Informationsgesellschaft - Rezension
2000. Technikfolgenabschätzung, Theorie und Praxis, 9 (4), 128–131, Oekom Verlag