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Electronic Commerce For Developing Countries (EC-DC): Section A - Business Requirements

Section A - Business Requirements

Note: Information about the Business Requirements should be provided by all the businesses interested in participating in this phase of the project. The CSP shall collect this information and send them to the ITU, after consultation of the Company’s Statutes, the Minutes of the "Ordinary and/or Extraordinary Shareholder General Assemblies", the company’s balances, commercial books, inventory and accountants.

Electronic commerce enhances business activities by reducing processing and transaction costs, streamlining the business process, enhancing the value chain and providing access to the global marketplace for businesses in both developing and industrialized countries.

The objective of this section is to understand the business issues to be addressed so that the appropriate technology solutions can be recommended.

Since an ECDC center provides services to the business community, it is therefore important to select a group of businesses interested in using electronic commerce as a business tool. These businesses shall be part of the first phase of the project and others may be invited to join at a later stage of the project (when the service becomes operational). It is important that there are enough businesses trading with external partners (specifically those that export goods or services to developed countries) interested in using the electronic commerce services provided by the ECDC center to enable a quick Return On Investment (ROI) and ensure sustainability of the project.

ITU recommends to follow the plan here below in order to complete the required information from Section A:

  1. Ownership, Management and Partners (optional)

    Information on the ownership of your business (which entity, group or organization owns and runs the business). To complete this information you should request the Statements of every Company/Organization who wish to join the project. This information can be obtained from the Registry of Commerce.

    Information on the Managers or Directors (key decision-makers in the entity that runs the business). To complete this information you should request the Statements of the Company/Organization. In addition to that, you should obtain the Minutes of the "Ordinary and Extraordinary Shareholder General Assemblies".

    Include any relevant partners and the role they play in the business. To complete this information you should request the Statements of the Company/Organization. In addition to that, you should obtain the Minutes of the "Ordinary and Extraordinary Shareholder Assemblies".

    Estimated numbers of employees and roles played by key employees.

    Brief information on any relevant experiences and skills necessary for the successful operation of the business.

  2. Business Objectives

    Clearly distinguish short and long-term objectives and provide figures (if available) on these goals.

    Indicate the goals that you plan to attain in the long term (Example: double market size in "x" year(s), reduce transaction cost by "y"%).

    Expand on the following objectives by giving examples how your business would attain them using electronic commerce:

    • Better customer service.
    • Increased efficiency.
    • Increase market size and more business partners.
    • Reduction in processing, transaction and operational costs.
  3. Products, Services and Markets

    Describe the services or products currently being offered (sold). Indicate if the goods and/or services are finished products (for online retailing) or raw materials and components needed for the manufacturing of finished (end-consumer) goods.

    Identify your current foreign markets (where are your main business partners or consumers e.g. Switzerland, United States). Also provide the percentage per country (e.g. Switzerland-30%, Canada-70%). Specify the overall percentage of your goods and/or services that are destined for the export market.

    Provide an estimate of the unit cost (in U.S. Dollars) of the goods and/or services (e.g. 1 kg of coffee at USD 100).

    For physical goods, an approximate size (weight and volume). For services and digital goods, provide information on the type of goods or services.

    Specify the method(s) of payment used by current partners to pay for goods and/or services (e.g. bank transfer, factoring, leasing, forfeiting, credit cards, debit cards, documentary credit, checks or letters of credit). For card based payments, specify the main card brands (e.g. Visa, MasterCard, Diners Club, or American Express).

    Indicate how long it takes for your business to receive payment for the goods and/or services provided to foreign business partners and/or clients.

    Explain the current business flow process. This includes the steps from initial contact with business partners, accepting to transact on the basis of mutually agreed terms and conditions. Please enumerate the steps in the order in which they are processed. (Example: 1. Buyer transmits purchase order. 2. Seller -your business- receives purchase order. 3. Buyer and seller accept terms of contract. 4. Seller ships or delivers goods or services. 5. Buyer gives order for payment to be sent to seller).

    • What is the primary mechanism used to communicate with your foreign business partners (e.g. fax, telex, telephone, EDI, and email)?
    • What is your current marketing and advertising strategy (how do you currently market your products and services - TV, newspaper, Internet or other)?
    • Provide some information on current annual sales volume - actual or potential orders.
    • Do you have in your region or country import, export, or trade barriers?
  4. Growth Plan and Sustainability

    1. Indicate any intended improvements or expansion of current services. (Optional)
    2. Provide forecast on possible expansions of market size based your current business process. (Optional)
    3. If third party funds are used to implement the ECDC project, how will your business sustain itself after the funding period? (Required)
  5. Insurance

    (e.g. for the Stock/Goods, Transportation, Delays, and other)

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Updated : 2001-08-23