Three challenges
Q. What is
the state of e-commerce in services exporting firms in
developing countries?
Riddle: Similar
to exporting in general. Many are already doing it without
labeling it as such. Virtually all use computers have
e-mail, many have Web sites (often “brochureware”), many
collaborate in extranets. The gaps lie in visibility in
the portals.
Q: You identify
credibility as one of the problems faced by service firms.
What other problems or barriers do they face when trying
to become involved in the “Digital Economy”?
Riddle: I would
highlight three challenges. First is the cost and speed
of Internet access, which is often very costly for relatively
slow access. Second is the potentially negative impact
on the credibility of the service firm if its Web site
is frequently unavailable or is slow to load due to server
inadequacies. Third is the difficulty in staying aware
of the rapid growth of both industry specific and horizontal
portals on which the service firms need to be visible
in order to be credible.
Q. Given
these problems, are there any service export firms who
have found innovative (or any) solutions to any these
problems?
Riddle:
So far, in reference particularly to smaller
service export firms, the solutions are to invest their
time plus energy to solve these challenges. For example,
some firms have developed a second business venture as
an ISP in order to control their digital infrastructure.
Others select an ISP in a nearby market with better infrastructure
and absorb the long-distance charges as a marketing cost.
In order to track industry e-marketplaces, some engage
students to do ongoing research. Others join international
industry associations in order to keep informed
Q.
There seems to be a role where governments could have
some real impact in assisting these firms. If this is
so, are the governments aware of what the problems are?
If they are not, what do you see as a mechanism for making
sure that this problem is addressed?
Riddle:
Yes, governments can play an important role, but
first they have to be aware that there are successful
service exporters in their economies who (in contrast
to many goods producers) are already on-line. ITC, working
together with local service industry associations, can
publicize service exporting successes on ITC’s Service
Exporting homepage (www.intracen.org/servicexport
) in order to help raise governments' awareness.
Once governments’ attention has been captured, then local
service associations can lobby in regard to what is needed.
Q. If
the government can be made aware that there are service
export firms and local service associations are in a position
to lobby, what type of feedback have you encountered from
service exporters about what they would like from Trade
Support Institutions (TSI) lobbying?
Riddle: First and foremost, TSIs need to educate
themselves about the service being exported, to where
and how. As TSIs gain a real picture of the complexities
of national service exports, they can then make sure that
these successes are promoted (e.g. in articles, talks,
etc…) and that they keep their firms up-to-date on the
leading e-marketplaces for their industry (including portals
and electronic registers). On the domestic front, they
need to lobby with their colleagues regarding the importance
of rapid and inexpensive access to the Internet.
Q.
Given the problems that exist in developing countries
and transition economies, some of which we have discussed,
are there any areas where the government and the TSIs
can score some “quick wins” for the service SMEs?
Riddle: I believe the simple collection
and “publication” of existing successes would astound
the world market place. For example, lead engineering
design work for the new Malaysian (K.L.) airport was done
by a Sri Lankan engineer whose firm continues to provide
design services on-line to clients around the world.
Q. With
all of these changes, has the role of the TSIs changed?
Are there different areas where they should now be involved?
Are there different things they should be doing?
Riddle: Absolutely. Basic market information
is now readily available. TSIs can provide information
about regional or local portals, search engines most commonly
used, cultural factors in e-commerce, introductions to
appropriate business contacts, and verification of the
credentials of potential customers whom the exporter meets
on-line.
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