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india and ebiz

india and ebiz The Indian private sector has already recognized the attractive economics of e-business. Clearly, the opportunity (and the need) for Indian businesses to get onto the e-business power curve is really quite high. Needless to add, that the potential exists. The size of the transactions over the net at Rs10 crore by the end of 1999 approximately, a piddling size when compared to the world, which is expected to cross $300 billion by the year 2002. Unlike in the past, where existing attitudes have posed major challenges to adopting a new way of life, with the Internet it has been rather a smooth sailing, thanks to the extraordinary levels of Internet awareness in the country. As a result of this, companies have been more open to taking studied chances, as is evident. Here, we are not just talking of companies that have static web sites but those which conduct commerce on the net like Color Plus, India Book Shop, bababazaar, Rediff-on-the-net and Shoppers Stop, selling from books and shirts to vegetables and soaps. The lack of infrastructure was a serious impediment, but bottlenecks are soon being removed. With several private value-added networks (VANs) coming up and with the reach of Internet expanding, this is becoming less of a problem. In fact, collective experience indicates that firms can deploy e-commerce solutions over the current infrastructure and realize significant benefits from them. To be fair, this is one area that has received focus from the highest levels and there is feverish activity to build bigger bandwidth and crucial payment gateways, which will enable online credit card authorization Indeed, there is much at stake for, say, an automobile company or a fast-moving consumer goods company which has multiple offices with different manufacturing sites and warehouses etc across the country. Infact ,Dynamix-a software infrastructure solutions company, is in the process of helping TELCO to replicate the Ford "just in time technology" The recent announcement of Hindustan Lever indicates that soon all of its cosmetic line will be made available only on the net, with one center in each city acting as demonstration/guidance center. The country needs to get its legal, legislative, regulatory, infrastructure and manpower ready for ebusiness. We already see some of this readiness, and hence, India is ready to boom in ebusiness. While the air of optimism persists, the fact remains that in India Electronic Data Interchange (EDI) has not really taken off. Therefore, doubts persist whether corporate and government in specific will adopt and accept this as quickly as is made out. One of the main reasons is the high entry cost of EDI because of which companies fight shy of trying out. The ratification of financial transactions reconciled without paper via the internet by the Reserve Bank of India. A critical issue, it is expected to be resolved once the government passes the Electronic Support Act and the Information Technology Bill. Institutions such as RBI and SEBI are considering various ways to make usage of electronic systems mandatory for areas such as interbank settlements, payment of dividends etc. These bills also contain a comprehensive range of provisions that are expected to usher in e-business in India. To add to this government incentive has been minimal in the past. However, the fact that EDI-related issues are being addressed by the government, is again indicative of the change in the offing. For instance, government agencies like ports are moving to exchanging documents through EDI and are planning a complete move to accept documents in only EDI. Similarly, a major pilot project in the auto industry was successfully completed last year by ACMA (Auto Component Manufacturers Association), paving the way for its wider acceptance. Welcome to the new invasion of technology in the Indian banking system. In developing countries like India with a vast majority of the population living in poor conditions, technology plays an important role. Technology to the extent that it helps to reduce costs is a welcome I India. This could be explained by the fact that to process a banking transaction manually it costs around Rs30-40 where as the same transaction on the Internet would cost Rs.7-8. In countries like India technology acts as a leveler that removes inequality between people of different income groups. For example poorer people who visit banks for their regular banking activities feel that an unequal treatment is meted out towards them as against their richer counterparts, especially with the insignificant sums of tier transactions; while the same people feel more at ease with an ATM that shows no emotion and all clients are treated alike. Internet hits the Indian banking sector Today you send an email or pick up a telephone and your banker lands at your doorstep. Welcome to the new invasion of technology in the Indian banking system! The liberalization and the technology-invasion have worked wonders for the banking sector, say bankers. If ICICI has shown what technology can do for banks, others have quickly realized the potential and are fast trying to catch up with it. Is technology then the new driver in the Indian financial system? When all the banks and financial institutions are offering the vanilla product, the differentiation had to come from service. This automatically put pressure on the institutions to adopt technology as their USP. According to industry estimates, some of these new banks on an average send out 500 emails on a daily basis regarding new products, services, or other routine matters. Internet banking is fast catching up. Banking will never be the same again in India. Welcome to the new invasion of technology in the Indian banking system. ICICI on Thursday,27th January announced a tie-up with a Compaq-led consortium for setting up the country's first payments gateway to facilitate secured on-line B2B and B2C e-commerce transactions. This will be the first payment gateway tailored to meet Indian requirements and will not be subject to all the regulatory concerns that cloud other non-India based payment gateways. The gateway offers the flexibility of multiple payment modes including credit, debit and smart cards, direct bank debits and e-cheques. The ICICI e-commerce payment gateway will launch a state-of-the-art internet payment system and is set to open the world of e-commerce to many more merchants, consumers and businesses in India by significantly lowering the cost and complexity of enabling secure transactions over the Net .The customers credit card number will be protected through hardware cryptographic devises so that the only information available to merchants is a code. This will substantially reduce the capital costs of merchants. "Failing to plan , is planning to fail." Bibliography:

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