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Grasp opportunities and Speed up E-Commerce in Ningbo

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Grasp opportunities and Speed up E-Commerce in Ningbo Powered By Docstoc
					       Grasp opportunities and Speed up E-Commerce in Ningbo

            IT & Information Office of Ningbo Municipal Government
                                 Chengbo TAO

Abstract: The Information Technology and the Industrial Revolution, focusing on the
worldwide application of Internet, are becoming a power that impulses the growth of
economy and accelerates the transfer from Industry Economy to Information
Economy, which is also called Internet Economy, Digital Economy or New Economy.
Moreover, the development of E-Commerce based on the Internet,brings about an
even profound impact on the world the global economy and greater changes into the
original trade form and system. The article incorporating the physical situation,
discusses the foundation and advantages of Ningbo to develop E-Commerce and the
importance of the developing, and then proposes several pieces of advice on how to
quicken the development of E-Commerce.

Key Words: E-Commerce;            Government;          Policy

1. The Importance of developing E-Commerce in Ningbo
   First of all, developing E-Commerce is an international trend in the 21st century.
   The new millennium is an epoch of Information Technology. At present, as Internet
   is developing with a dramatic speed, people can not only transmit and acquire
   information via Internet, but can also carry out business activities. The prediction of
   E-Commerce’s worldwide application is always modified because of its dramatic
   development. At the beginning of 1998, the Forest predicted that the volume of
   B2B model business among the states’ companies would arrive at 300 billion
   dollars by the year 2002. Whereas its latest report believes it can reach 300 billion
   dollars by the year 2001, and 1300 billion by the year 2003 while the global total
   volume will reach 3200 billion. By that time, International Business’s
   E-Commercialization will come into being. Now, developed countries, along with
   Singapore, China Taiwan, and Hong Kong, are ready to promote E-Commerce
   Strategies. Under such circumstances and faced with such challenges, it is doubtless
   for us to grasp the opportunities to develop our e-commerce.

  Second, developing E-Commerce is a must for Ningbo to rebuild its economic
  advantages. Ningbo has always been a historic and important trade city in China,
  and its trade industry, winning leading position in the whole country, has developed
  rapidly since the implementation of reform and opening policy. In 2000, the amount
  of import and export totaled 7.5 billion dollars, while the amount of export
  exceeded 5 billions. Thus, the development of foreign trade is a crucial factor
  facilitating Ningbo’s economy. In the 21st century, we will face a lot of
  opportunities, however, we will face some difficulties as well: due to the limit of
  market’s capacity, the developing speed of international trade has somewhat slowed
  down for several years, it needs to go up to a new stage. The appearance of
  E-Commerce brings us a fresh and virtual market, which can globalize the local
  market, shorten the period it takes for commodity to enter the market, reduce the
  cost and raise the efficiency. Such opportunities will hoist the local economy’s
  competitive ability and help rebuild the Ningbo’s advantages for economic
  development.

  Finally, developing E-Commerce is a key to Ningbo’s modernization. There are lots
  of things to do to realize our objectives. Though the modernization’s connotation is
  plentiful, we ought to foresee that the rapid development of information technology
  is becoming the engine to impulse the development of economy and society.
  Information technology, typically featuring in informatization, a peak of global
  competition in economic and technological field, comes forth onto the front stage
  of the national economy. It has two-fold implications, when discussed in terms of
  the relationship between modernization and informatization: first, informatization is
  the main content branch of modernization, second, informatization is the premise
  and foundation to achieve modernization, just as what Comrade Jiang Zemin
  indicated, “We could hardly achieve four modernizations without informatization”.
  According to the tenth five-year-plan stipulated in the 5th Session of the 15th
  Chinese Communist Party, promoting vigorously the economic and social
  informatization is the most important strategic act which penetrates the overall
  modernization construction. Thus, it is doubtless that E-Commerce, the content and
  symbol of the informatization, is a key to implement modernization. The extensive
  application of E-Commerce will transform the conventional ways of manufacturing
  and operating, alter the current model of service and consumption and implement
  the organic combination of information flow, cash flow and physical distribution,
  bringing the society a historical revolution. Then, E-Commerce will be the main
  barometer to measure the local modernization. Therefore, it may be well said that
  developing E-Commerce is an important part for the city’s modernization.

2. The practical foundation of Ningbo to develop E-Commerce
   What are the foundation and the premise of Ningbo to develop E-Commerce? First,
   the local information infrastructure has been much improved over the past several
   years, offering a favorable environment for E-Commerce’s development. The
   Municipal CCP Committee and the city government have attached great importance
   to this aspect. In 1996, to build the city into a modern international port, they
   propose a new strategy of expediting the building of Ningbo’s seaport and airport,
   and turning it into an information port at the same time. After years’ efforts,
   Ningbo’s information infrastructure, which is in the leading position in the
   mainland, has been mainly completed, covering the Ningbo’ downtown and its
   suburbs. The urban broadband network also offers departments of finance, banking,
   and insurance preferable conditions to build their own industry networks, and thus
   enables the connection of local information networks and the installation of
   community optical fiber. The telecommunication network can transmit digitalized
local information. Now the population rate of fixed and mobile phones ranks the
top across the country. The data communication network is developing rapidly. The
comprehensive development of Broadcasting & TV network will be launched; the
installation of Cable Modem and city’s SDH key network project has been started.
The information infrastructure is the base to develop E-Commerce. Second, the
enterprises in Ningbo are highly marketized. In addition, Ningbo’s citizens are
famous for running businesses, and they are keen to develop E-Commerce. Most of
Ningbo enterprises are of small and medium size, in forms of collective-owned,
individual-owned and private-owned. Thus, Ningbo has sound mechanisms for
market operations. There is a saying that no market exists if there is no Ningbonese.
Especially such traditional industries as apparel, textile and equipment have been
developing steadily, resulting in the emergence of some well-known international
enterprises, whose markets have covered the whole country. Moreover, enterprises
with preferable foundation and condition are interested in E-Commerce very much,
such as Youngor, which is planing to doing business online. Thirdly, as a big
international port, Ningbo is a convenient place for physical distribution.
E-Commerce consists of information flow, cash flow and physical distribution.
Physical distribution means commodity’s packing, storage and transportation, thus
it is necessary to set up online physical distribution system so as to enable online
transactions. Beilun of Ningbo, one of the Chinese four largest deepwater ports, has
formed a distribution network with the port as the core. Therefore, Ningbo has the
advantages to act as a physical distribution center. Fourthly, the increasing number
of Internet users from government, enterprises, and households also offers a good
condition to develop E-Commerce. According to statistics, Internet users have
totaled150 thousand or so, the first place in Zhengjiang and leading place in the
country. 60 percent of city departments, 90 percent of prefecture and regional
governments and near 3000 enterprises have built their own web pages, thus laying
a good foundation to develop E-Commerce.

E-Commerce’s development in Ningbo is on the way. It is estimated that only
concerning B2B model, of extroverted enterprises, 60 percent companies especially
those engaged in export commodity producing and exporting have began to utilize
internet to transmit information and seek trade opportunities. Some big skeleton
enterprises, such as Younger, Firs and Veken are planing to develop E-Commerce;
and markets with distinctive features have carried on online purchasing, such as
China Plastic City, with Cpinfo.Net’s help, whose annual trading volume has
reached 12 billion yuan, East China Materials City and Bridge 2 Foods Market.
Concerning B2C model, both the volume and the impact of 82.Com have been on
the rise. The company has realized online payment and distribution. Both
Nbnet.Com and Orientonline.Com promote “online information” service. And
concerning G2B model, the biding network of key projects is now able to have
online government procurement and medicine purchase. At present, China
Merchants Bank, China Construction Bank, Bank of China and Industrial and
Commercial Bank of China’s Ningbo branch are all offering online payment
  transaction. Speaking of physical distribution platform, Ningbo’s physical
  distribution web site is undergoing its preparatory stage, meanwhile, the
  E-Commerce platform of port physical distribution is under planning as well.

  Considering such a favorable practical foundation, Ministry of Information Industry
  has authorized Ningbo to be the national model city of E-Commerce that should
  make experiments to improve E-Commerce’s environment and promote
  E-Commerce applications in enterprises, especially in international B2B model and
  physical distribution platform.

3. Several proposals to accelerate the development of E-Commerce in Ningbo
  According to the practical condition, the present kernel is to develop B2B model
  E-Commerce, particularly in the interior of industry, in other words, in a certain
  supply chain. Meanwhile, B2C, C2C and G2B models are to be developed steadily:
  1.Strengthen government’s guidance and overall planning
   As E-Commerce is a complicated systematical project concerning different lines of
   business, it has high demand in security standards. It needs the regulation and
   planning from the government. The city’s head office of economic information
   promotion will strengthen leadership and coordinate different departments so as to
   promote local E-Commerce. To fulfill the demand of a national E-Commerce
   experimental city, the municipal government has stipulated plans and started to
   promote the civic E-Commerce development.
   2.Construct three centers (centers of exchange, authentication and database)
   The information exchange center will have a connection built among different local
   networks to accelerate network’s transmission, to implement resource sharing and
   to lay a good foundation for E-Commerce’s development. The purpose of the
   database center is to offer free or cheap space service to support the development,
   serving as an incubator. The Authentication Center is the key infrastructure to
   establish the mutual credits and protect the online security of transaction and
   payment.
   3.Set examples of E-Commerce
   We ought to pay much attention to exemplary project in four aspects. First,
   government shall play a leading role in the overall project, launching online
   government procurement. Second, the government shall bring enterprises’
   enthusiasm into play, encourage and promote E-Commerce in manufacturing
   enterprises and marketing enterprises. Third, the city’s resource networks, such as
   Nbnet.Com, shall probe building online merchandise city upon the current network
   construction. Forth, the related departments also shall play a leading role in building
   a network of import and export commodity information to offer B2B platform to
   foreign trade corporations, thereby impulse the development of Ningbo’s foreign
   trade.
   4.Improve the E-Commerce environment
   First, digitalization must be promoted in banking systems, as E-Commerce
   influences the trend of a bank’s development. In Ningbo, E-Commerce has become
an advantage of China Merchants Bank to compete with other banks. Therefore, all
banks shall launch E-Bank service, and construct unified payment gateway. Second,
we shall probe ways of constructing physical distribution and cargo dispatching
system. We can put our traffic advantages into play, and endeavor to turn Ningbo
into an international physical distribution center. Third, we need to search favorable
measures in tariff area. Forth, we shall also find out how to carry out E-Commerce
technological standard to expedite the healthy development of E-Commerce. Fifth,
publicizing and spreading E-Commerce concept by means of proseminar, forum or
other forms will form an atmosphere of developing E-Commerce.
5.Nutrure and train professionals with E-Commerce expertise and innovative
capability
To meet the requirements of E-Commerce’s development, many universities and
colleges, such as Ningbo University provide courses about E-Commerce to train
professionals in such fields. Considering the long-term plan, enterprises also shall
cultivate their own E-Commerce professionals. Meanwhile, to introduce experts in
E-Commerce is also very important.

				
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