Today, the largest sea change in the history of commerce since the development of national banks and currency is underway. Electronic Commerce (E-Commerce), although still in its formative stage, has begun to reshape the way business is conducted across the globe, including the way government to business is conducted. Over the next decade, the impact of more and more transactions -- from clothing to groceries -- purchased using E-Commerce will be felt on every street corner, in every household and by every citizen in America.
E-Commerce means many things. On its broadest level, it is the use of telecommunications and computing technologies for conducting business transactions and supporting activities. Businesses in virtually every sector of the economy are beginning to use E-Commerce to reach customers more effectively, cut the cost of purchasing, manage supplier relationships, streamline logistics and inventory, and plan production on a "real-time" basis.
During the next four years, forecasters expect E-Commerce to explode. According to Cyber Dialogue, in 1997 the United States conducted $7.2 billion in E-Commerce. The United States Department of Commerce recently predicted that this figure will exceed $300 billion by 2002. In 1998, 100 million people around the world are using the Internet, with 60 percent spending over $100 a year in Internet shopping. Some experts believe that one billion people may be connected into the Internet by the year 2005. A recent report by the market research company GR2, Inc., indicates that organizations in manufacturing, distribution and banking are dedicating the greatest portion of their information technology budgets to E-Commerce development and deployment.
The pervasiveness of the Internet and web-based transactions in the private sector has raised citizens’ expectations of the level of performance, accessibility and openness of government. Citizens have come to expect that E-Commerce tools will be used for many purposes, ranging from simple fishing license renewals to procurement activities through sophisticated civic dialogue and alternate dispute resolution in regulatory settings.
Clearly, E-Commerce has the potential to transform the way government services are provided. Although electronic interchange has been used in many government settings, the rapid growth of technologies such as the Internet allows any business or governmental entity, regardless of size, industry or location, the ability to participate easily and quickly in the Information Revolution. For example, transactions over the Internet and the development of seamless government computer systems provide citizens access to information and the ability to conduct business with government in any form, at any time, in any place, on any day of the year.
Electronic Commerce also requires managers to react quickly to the opportunities and risks of conducting business in this new environment. Rapid changes and innovations in E-Commerce, even in its initial phases, have already resulted in new and complex operational, social and legal challenges for governments at all levels. We believe these challenges will require governments to adopt a non-regulatory, market oriented approach to E-Commerce, one that facilitates the emergence of a transparent and predictable legal environment to support global business and commerce. Governments, nationally and worldwide, must work together to ensure a simple, clear, ubiquitous and consistent electronic commerce infrastructure for constituents and businesses.
Government Innovations
Federal Government -The federal government has led much of the E-Commerce policy debate. Under the Debt Collection Improvement Act of 1996, Federal agencies are required to convert all Federal payments (other than payments under the Internal Revenue Code) from checks to Electronic Funds Transfer (EFT) by the Year 1999. The White House gave an additional push on July 1, 1997 when President Clinton issued his report, "A Framework for Global Electronic Commerce." A key directive in the document is the Presidential mandate that the U. S. Department of Commerce work with state and local governments to develop "a uniform commercial framework that recognizes, facilitates and enforces electronic transactions worldwide." Two other federal government reports, "The Emerging Digital Economy" and "Electronic Commerce for Buyers and Sellers" help set the framework for federal action in area of E-Commerce.
Federal Web Sites
United States Government Electronic Commerce Policy
http://www.ecommerce.gov
Electronic Process Initiatives Committee of the President’s Management Council
http://policyworks.gov/epic
U. S. Department of Treasury - Financial Management Service
http://www.fms.treas.gov
Intergovernmental Enterprise Panel
http://www.fedworld.iep/
Other Federal sites are available through links from the National Electronic
Commerce Coordinating Council’s (NECCC) Internet site at
http://ec3.org.
State Governments - The coming age of electronic government promises increased
efficiency and improved customer service in addition to any time, any where communication.
It is truly a tool which allows governments to do more with less. However, until recently,
State governments have not coordinated their electronic commerce activities or policies.
The National Electronic Commerce Coordinating Council (NECCC) is an alliance dedicated to
accelerating the adoption of E-Commerce through best practices and information exchange
and education.
Virginia - Recognized as a leader in E-Commerce, the Commonwealth of Virginia has used Direct Deposit, Financial Electronic Data Interchange (EDI) and Purchasing Cards to effectively move many of its government operations away from paper based transactions to initiatives which are largely electronic.
Contact - Richard Davis, Director of Electronic Commerce, Commonwealth of
Virginia, 804-225-2382, rdavis@doa.state.va.us
Massachusetts - The Commonwealth of Massachusetts has several E-Commerce initiatives
underway including its Commonwealth Procurement Access and Solicitation System (Comm-PASS)
and its new electronic mall initiative, which will be coordinated with several states.
Contact - Gary Lambert, Deputy State Purchasing Agent, 617-727-7500 x 260, gary.lambert@state.ma.us
Electronic Benefits Transfer (EBT). Currently the vast majority of states have various
types of EBT programs planned or underway. Most states now use EBT to deliver public
assistance cash and food stamp benefits through the existing electronic infrastructure.
Equally important is the regional approach taken by several state coalitions to delivering
EBT services. Over 20 states have joined together to contract and administer EBT programs
through multi-state coalitions.
Contact: Northeast Coalition of States (NCS) - Dan Berry, Director of EBT
Services, 518-474-0302, danberry@dss.mailnet.state.ny.us
Other State and Local sites are available through links on the NEC3 Internet site
at
http://ec3.org.