Update on Research
A key part of the E-Commerce Strategy is the development of a research programme to improve understanding of the constraints on the adoption of e-commerce by businesses, inform policy responses and benchmark New Zealand against the rest of the world.
The research programme is now well advanced. Research has been undertaken in a number of areas related to e-commerce and ICT capability, including an investigation into the value of e-commerce to businesses, an assessment of the "net readiness" of selected industry groups and a survey of the broadband infrastructure in rural areas.
Recent studies have shown that business use of the Internet is growing rapidly. A survey conducted on behalf of the Ministry of Economic Development in July 2000 indicated that about 33% of all businesses had their own website. The recent "net readiness" survey of selected industry groups (see below) indicates that this has now almost doubled to 61%.
The following studies have been completed:
Net Readiness in New Zealand Industries: Empirical Results, 2001
This survey of over 1000 New Zealand firms was commissioned by the Ministry of Economic Development and undertaken by Waikato University.
It was designed to establish the "net readiness" of firms in eight sectors. Net readiness is defined as the ability of New Zealand firms to perform and compete in an Internet based economy. Levels of website activity varied considerably across these sectors from 91% in Tourism to 24% in Transportation and the mean was 60.9%. The tourism sector came out ahead of other sectors despite the fact that firms involved with tourism are generally smaller than those in other sectors. This indicates that, for this group at least, firm size is not a precondition of success in the digital economy. Transport, which has a similar composition to the tourism sector, scored lowest in terms of "net readiness". This indicates that industry type is a significant factor in levels of "net readiness".
→ Net Readiness in New Zealand Industries: Empirical Results, 2001
Electronic Commerce in New Zealand: a Survey of Electronic Traders
A survey was jointly commissioned from AC Nielsen by the Inland Revenue Department and the Ministry of Economic Development to provide insight into the level, value, growth and extent of e-commerce conducted by New Zealand businesses. It was targeted at businesses with commercial websites and included 800 respondents. Although commercially oriented sites were targeted, 50% of those surveyed currently are selling less than $10,000 per annum over the Internet. Overall, Internet sales are a small proportion of total sales volume for most e-traders. Despite the relatively small volumes for most e-traders, Internet trading is relatively profitable (50% expect to make a profit in the next 12 months from Internet trading) and expected to grow significantly.
Review of Telecommunications Infrastructure to Provide Access to Data Services in Small Communities and Towns
A report was commissioned by the Ministry of Economic Development from Amos Aked Swift (NZ) Ltd on the existing telecommunications infrastructure base that serves the rural and small urban towns and the potential to provide "broadband" access to these areas in the near future. It found that approximately half of these towns could have broadband access with little capital investment. Another 25% of the communities are estimated to be within reasonable reach of the backbone network infrastructure and would need additional expenditure of the order of $1,000 per town to derive broadband access. The remaining 25% of the towns are judged to be beyond the existing backbone network infrastructure and would require specific network capital expenditure of $10,000 or more.
(Note: these are costs of upgrading or building the backbone link into the town and do not include the capital cost required to make broadband access available to customers, eg through ADSL.)
→ Review of Telecommunications Infrastructure to Provide Access to Data Services in Small Communities and Towns
Scoping Study: E-Commerce Performance Measurement Research for New Zealand
A scoping study was commissioned by the Ministry of Economic Development from the Institute for the Study of Competition and Regulation. This study analyses the state of e-commerce performance measurement throughout the world. It identifies areas where investment in research on e-commerce performance measurement research can be made, in order to provide a sound foundation on which to base future policy development and infrastructure investment.
The measurement issues raised in the study are complex and difficult and are challenging researchers all over the world. Resolving these issues is not something that will be done in the short term but will require investment over time.
→ Scoping Study: E-Commerce Performance Measurement Research for New Zealand
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