APEC Releases Study on Electronic Commerce Adoption By Small and Medium Enterprises in APEC Member Economies.

LIMA, Peru--(BUSINESS WIRE)--Oct. 5, 1999--

The Asia Pacific Economic Cooperation (APEC) Telecommunications Working Group (TEL) has released results of an international survey conducted by PricewaterhouseCoopers, examining the adoption, uptake and use of electronic commerce by small and medium enterprises (SMEs) in 21 APEC member economies.

PricewaterhouseCoopers conducted global research on SMEs, defined as companies with up to 500 employees. The research was conducted in all 21 APEC economies including using an online Web survey in nine languages. The survey was completed by more than 1,300 SMEs over a four-month period. In addition, more than 42 focus groups were conducted within APEC economies, along with several key informant interviews to identify the real and perceived barriers of e-commerce use by SMEs.

SMEs are key to economic growth in APEC economies, accounting for nearly 50 percent of its total GDP and 35 percent of exports. APEC leaders and ministers recognize the importance of e-commerce and accord high priority to identifying ways to maximize its social and economic benefits for all APEC member economies.

"This study provides us with strong indicators of how our governments might further facilitate the use of e-commerce. It also shows us that SMEs welcome the involvement of APEC governments in addressing perceived barriers and facilitating adoption through a wide range of measures," explains Peter Ferguson, APEC Telecommunications Working Group representative for e-commerce issues.

The PricewaterhouseCoopers survey results indicated several key factors deemed critical to fostering e-commerce use by SMEs:

-- Expanding customers and markets was seen as the driving force in

e-commerce adoption by responding SMEs. Over 90 percent of these

companies saw building customer relationships through improved

customer service and information exchange as an important benefit

of their e-commerce initiatives.

-- Raising the level of trust and confidence including establishing

a suitable domestic and international legal framework for

electronic commerce was identified by nearly 70 percent of

responding enterprises as important to increase the use of

e-commerce among businesses and consumers.

-- Improving supply chain integration to reduce input costs and

improve information exchanges with suppliers was seen as an

important real or potential benefit or their e-commerce

initiatives by about 70 percent of responding enterprises.

-- Accessing information about suitable business models and

technologies for electronic commerce was identified as an

important barrier needing to be overcome by more than 60 percent

of responding enterprises.

Ferguson adds, "Addressing security, legal and liability concerns as well as building business awareness and continuing to improve the information infrastructure across the APEC region are recognized as key recommendations to move forward." Also highlighted among the findings was a call for the enhancement of government's own use of e-commerce in areas such as procurement and provision of services.

"The study engaged SMEs across the APEC region who are early adopters of e-business," says Oliver Kent, APEC project partner, PricewaterhouseCoopers. "These firms want to strengthen their connections with customers in many cases internationally, to stay ahead of their competition. They have concerns about security, legal and tax issues, but these are 'speed bumps' which slow progress rather than absolute barriers to e-business innovation."

"This study clearly illustrates that business organizations in these economies understand the power and potential the Internet holds and are ready to embrace the technology needed to become an E-Business," according to Cathy Neuman, global-E-Business leader, PricewaterhouseCoopers. "Building communities, linking companies with suppliers, delivering personalized products and services to customers are just a few of the E-Business benefits that await these businesses once the Internet becomes an extension of their business processes."

The final survey results of the survey titled APEC SMEs Electronic Commerce Study, together with a summary of key findings, are available online from APEC and PricewaterhouseCoopers by visiting the following web sites: www.e-business.pwcglobal.com; www.apecsec.org.sg

Editorial Note:

The 21 members of Asia Pacific Economic Cooperation (APEC) are Australia, Brunei Darussalam, Canada, Chile, China, Hong Kong (China), Indonesia, Japan, Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Philippines, Russian Federation, Singapore, Chinese Taipei, Thailand, United States, and Vietnam.

APEC Telecommunications Working Group manages the telecommunication and information industry initiatives within APEC, including cooperative projects and activities in areas as diverse as human resource development, business facilitation, development cooperation, and the liberalization of telecommunications markets.

PricewaterhouseCoopers (www.pwcglobal.com) is the world's leading professional services organization. Drawing on the knowledge and skills of more than 150,000 people in 150 countries, we help our clients solve complex business problems and measurably enhance their ability to build value, manage risk and improve performance. PricewaterhouseCoopers refers to the US firm of PricewaterhouseCoopers LLP and other members of the worldwide PricewaterhouseCoopers organization.

Note to editors: The name PricewaterhouseCoopers is one word, with upper case P, upper case C and all other letters in lower case.