DEFINITION ISSUES

This section of the paper poses some questions associated with the proposed definitions presented earlier in the paper and invites comments.

E-business is any process that a business organization conducts over a computer-mediated network.

• The paper provides examples of e-business processes, but the list is not exhaustive. Do you have suggestions regarding additional processes that should be considered?
• The paper highlighted production-, customer-, and internal or management- focused processes. Are these categories useful? Can you suggest alternative groupings?

E-commerce is any transaction completed over a computer-mediated network that involves the transfer of ownership or rights to use goods or services. The definition includes both monetary and non monetary transactions. Some transactions may have a zero price (for example, the download of free software) while other transactions may be paid in-kind or through barter (portal pays for an e-commerce consulting service by providing banner advertising).

• We do not define transaction. Should we?
• Since any e-commerce measure will focus on the value of transactions, not the quantity, should we exclude free or zero priced e-commerce transactions from the definition?
• Do you think barter or trade-in-kind is more prevalent in e-commerce transactions than in traditional transactions? Is it reportable or measurable?
• Do you find the e-commerce examples useful?

E-business infrastructure is the share of total economic infrastructure used to support processes and conduct e-commerce transactions. The definition includes hardware, software, telecommunication networks, support services, and human capital along with associated examples. Measuring the electronic infrastructure will be a daunting task. Since we have no short term plans to begin measuring e-business infrastructure, we have not focused much attention on it to date, but will begin focusing on it during this coming year.

• Is the e-business infrastructure separable from the broader economic infrastructure?
• What are the priority components of infrastructure that we should focus on?
• Do you have specific examples that would clarify what to include in each component?
• Should human capital be included in the e-business infrastructure? Is it separable?

Computer-mediated networks are electronically linked devices that communicate interactively over network channels. Network channels include the Internet, intranets within organizations, extranets and Electronic Data Interchange networks linking trading partners, and telecommunication networks.

• Do you agree with the decision to include open and closed networks?
• Have we excluded other important examples of networks?

Electronic linked devices include computers, personal digital assistants, webTV, Internet-enabled phones, and interactive telephone systems. While the e-commerce examples also include a computer-enabled kiosk and an ATM as linked electronic devices, in our definition we have chosen to go with a short, rather than a long list of electronic devices to minimize possible reporting confusion.

• Should the list of linked electronic devices include all possible devices or focus only on the most important devices?
• The definition and one of the examples considers a consumer using a telephone linked to an interactive telephone system with no human operator to be a computer-mediated network. Do you agree?
• Fax machines, while clearly electronic devices that can link over network channels, were excluded because they do not communicate interactively. Do you agree with their exclusion and the rationale?
• Electronic gas pumps often are linked interactively over network channels with other electronic devices. The device, the electronic pump, can be activated in a number of different ways. The purchaser may "swipe" a credit card, wave Speed-Pass, go to an outside station or inside the store to pay by cash or credit card. Just as in the case of an ATM machine or a computer-enabled kiosk, once the device is activated the consumer can specify the transaction (regular or premium gasoline) and complete the transaction. The electronic pumps also support a number of E-business processes including tracking sales and gallons sold, with links to automated inventory replenishment systems to name a few. The functionality embedded in pumps is expected to grow. For example, BP Amoco PLC is planning to introduce even more sophisticated pumps that will include Web browsers and Windows CE operating system that will even permit the gas purchaser to order fast food at the pump (WSJ 8/17/99). Would you consider the sales of gasoline through electronic pumps as an e-commerce transaction? Why?
• Are there other electronic devices that should be added to the list?

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