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Information and communication technology ICT and e-business applications provide many benefits across a wide range of intra- and inter-firm business processes and transactions. ICT applications improve information and knowledge management inside the firm and can reduce transaction costs and increase the speed and reliability of transactions for both business-to- business B2B and business-to-consumer B2C transactions.
In addition, they are effective tools for improving external communications and quality of services for established and new customers. E-commerce is increasing but still accounts for a relatively small share of total commerce.
On-line transactions are mainly B2B and domestic, rather than B2C or cross-border. The situation is similar for small and medium-sized enterprises SMEs , although they lag behind larger firms in Internet transactions.
For small firms to adopt e-business and e-commerce strategies and tools, benefits must outweigh investment and maintenance costs.
Commercial considerations and potential returns drive adoption. Other barriers have been seen to be the availability of ICT competencies within the firm, and availability and cost of appropriate interoperable small-firm systems, network infrastructure and Internet-related support services.
Lack of reliable trust and redress systems and cross- country legal and regulatory differences also impede cross-border transactions. Policies that will affect the adoption and use of e-business strategies include those designed to expand and improve the quality of network infrastructure and legal and regulatory environment, foster technological diffusion and create a favourable business environment.
Beyond these general framework policies, specific policies for SMEs have focused on ICT and e-business awareness programmes, business consultation services and employee and management training to enhance ICT and managerial skills. Policies have shifted over time as firms and economies have moved from concentrating on ereadiness and connectivity, to diffusion and use, and are moving towards mature e-business strategies which blend broad policies for the business environment with polices for particular areas such as IPRs and competition.
Policy has moved beyond a narrow concept of e-commerce on-line transactions to a wider view of e-business integration of internal and external processes, based on technology neutrality. Policy initiatives in some cases aim at facilitating SME participation in product and sector value chains and providing them with information to assess the opportunities and costs of e-business.
However there is no one-size-fits all approach to policy and the policy mix and priorities will depend on national circumstances leading or lagging countries and sectoral distribution of economic activity, as well as size factors. Internet Usage in Saudi Arabia Internet was first introduced to Kingdom of Saudi Arabia when state academic, medical, and research institutions got access to it.
Internet was officially made available in Kingdom of Saudi Arabia in by a ministerial decision and the public access finally debuted in In December there were Internet users in Saudi Arabia. By the number of Internet users in KSA had grown to 2. These changes are likely to aid the expansion of Internet usage in KSA even more.
Latest Population Estimate: 25,, population for , according to U. Census Bureau.
Saudi Arabia Country Area Size : 2,, sq km and the population density is 12 persons per sq km. A mature ICT infrastructure enables content suppliers and users to introduce more sophisticated services, such as streaming and multimedia content or mobile internet applications, as well as tighter business systems integration in the enterprise and government segments.
ICT infrastructure in the Kingdom has recorded unprecedented growth over the past few years. Broadband subscriptions have grown nearly fold over the last five years, from 64, in to 4.
The current level of household broadband penetration has reached On the other hand, larger companies express more concerns about the ICT infrastructure, especially those with locations spread across the Kingdom and in more remote areas. Large companies also have stringent performance requirements for datacenter operations and broadband networks.
Improved broadband speed, reliability, and latency would encourage the diffusion of business outside the major urban centers. Adopting the procurement best practices by businesses would allow for more efficient solutions to ICT needs.
Despite the rapid development of the Saudi ICT infrastructure, efforts toward developing a mature infrastructure should continue in order to keep up with advancing technology and growing demand. This figure is projected to rise to SAR billion by , representing 3. Projected growth rates elsewhere are: These growth rates are impressive compared to the Internet economies of developed G markets, which are expected to grow at an average of 8. Online Commerce In , the share of total retail carried out online in Saudi Arabia was 2.
These numbers compare to 4. They have begun to engage in increasingly sophisticated uses of ICT, involving business process reengineering and more complex technology. In such firms, B2C and B2B e- commerce are components of an overall e-business strategy. External relations with customers as well as internal processes are being linked. Marketing and sales, logistics and delivery, after- 11 sales service, supply chain management and other business functions are integrated in an overall e-business strategy.
Most SMEs appear still to be at a stage where establishing a Web site or adopting e-commerce is the main issue. Successful integration of external and internal business processes in e-business necessitates organisational and management changes which may entail proportionally greater costs and risks for SMEs.
In addition, smaller firms may have fewer incentives to integrate their business processes than larger firms, which have more complex business processes and resources to harmonise and co-ordinate.
It may therefore take more time and resources for SMEs to adopt e-business strategies. In relation to assisting SMEs to integrate e-business into their entire business process, there could also be more emphasis on integrating e-government into the business process.
For example in Australia, government compliance activities tend to be undertaken separately to other 'back office' business processes. The Business Entry Point BEP is currently implementing mechanisms that more closely integrate e-government activities into the day-to- day activities associated with running a business. Making use of e-government initiatives as an incentive for SMEs to go online is crucial but again, these need to be seamless and integrated into business activities more generally.
Payment Systems in Saudi Arabia Electronic payment systems support the commercial function of the internet ecosystem by enabling internet users to sell and buy online, access paid content, and use e-government applications. Businesses, as well as individuals, declare a strong need for a range of reliable and secure payment systems. Credit cards are available in the Kingdom, but are generally used for planned, major purchases. Some local internet users open PayPal accounts associated with foreign addresses and bank accounts and use them to purchase goods abroad.
This limits most internet merchants to using credit cards, short code SMS, and prepaid cards as electronic payment methods. A more advanced mobile payment method could increase payment availability and decrease the dependence on cash. The limitations with this method of payment, which include its usually low transaction ceiling, high transaction fees for operators, and excessively long delays before passing payments on to merchants, must be addressed for this to become a more viable payment method.
Furthermore, there currently exists no regulation for licensing prepaid cards; therefore, unless an official license is introduced for their use, these cards will likely be phased out of the market.
Legal Framework in Saudi Arabia In the few years since the Internet has become an important venue for commerce, communications and entertainment, so-called cybercops have tried to impose a variety of rules, regulations and guidelines to protect the interests of consumers and businesses.
Unfortunately, however, no mechanism yet exists to enforce such initiatives. Enforcement is nearly impossible for many of the Web's more illicit activities because comprehensive tracking and monitoring technology does not exist. Compare all 8 new copies. Pearson, Softcover. Book Description Pearson, Ships same day or next business day! Seller Inventory N.
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