‫كـنان البـهنـسي‬

‫مدير مشروع قاعدة بيانات سوق العمل ‪– UNDP‬‬

‫‪kinan.bahnassi@UNDPprojects.sy‬‬
‫‪27 – June 2010‬‬
E-Commerce - Kinan A. Bahnassi
Network of networks
INTERNET
2009 WORLD COMMERCE REPORT
How long to reach 50 mil users
globally?

E-Commerce - Kinan A. Bahnassi

Radio in 30 years;
TV in 10 years;
Internet by 1 year
INTERNET USERS IN THE WORLD - 2009

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Source: UNCTAD 2010
WORLD INTERNET USERS DISTRIBUTION –
2009

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Source: UNCTAD 2010
MIDDLE EAST AND INTERNET USAGE - 2009
Population User Growth
Middle East Population Usage 2000 Usage 2009
Penetration %

Bahrain 728,709 40,000 402,900 55% 907.25

E-Commerce - Kinan A. Bahnassi

Iran 66,429,284 250,000 32,200,000 48% 12,780.00
Iraq 28,945,569 12,500 200,000 1% 1,500.00
Jordan 6,269,285 127,000 1,500,000 24% 1,081.10
Kuwait 2,692,526 150,000 1,000,000 37% 566.67
Lebanon 4,017,095 300,000 945,000 24% 215.00
Oman 3,418,085 90,000 465,000 14% 416.67
Palestine WB 2,461,267 35,000 355,500 14% 915.71
Qatar 833,285 30,000 436,000 52% 1,353.33
Saudi Arabia 28,686,633 200,000 7,700,000 27% 3,750.00
Syria 21,762,978 30,000 3,565,000 16% 11,783.33 Second
UAE 4,798,491 735,000 2,922,000 61% 297.55 Fastest
Yemen 22,858,238 15,000 370,000 2% 2,366.67

Source: UNCTAD 2010

 MIDDLE EAST AND INTERNET USAGE - 2009

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Source: UNCTAD 2010
INTERNET DEVELOPMENTS IN SYRIA
 Broadband, ADSL, 3G, and wireless Internet access are
growing and the price is dropping.

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 One of the fastest growing in the region

 Public access to internet through Libraries and Cyber

Cafés are increasing rapidly.
 Internet access in universities (Public / Private)

 Variety of ISPs for prepaid Internet Cards

 Access to the internet through Mobile Phones.

E-Commerce - Kinan A. Bahnassi
IMPORTANT DEFINITIONS
IMPORTANT DEFINITIONS
E-Commerce - Kinan A. Bahnassi
WHY E-COMMERCE?
SEVEN UNIQUE FEATURES OF
E-COMMERCE

E-Commerce - Kinan A. Bahnassi

WORLD TRANSACTIONS – B2B

World merchandise trade

13.1

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World B2B e-transactions

10.4

8.88
7.8
7.28

3.6

2003 2005 2007

Source: WTO World Trade Report 2008
E-COMMERCE DEVELOPMENTS IN SYRIA
 E-commerce revolution is still beginning in Syria
 More and more people and businesses are using the Internet
to conduct commerce

E-Commerce - Kinan A. Bahnassi

 Few products and services come online
 Broadband and wireless Internet access are growing
 New business models based on social technologies
 The E-commerce gives SMEs the same tools as large
companies use to do business.
 Weak competition
 Excellent substitute for many services
 Tool for enhancing national competitiveness
 Creating more job opportunities
WHAT IS E-COMMERCE
 E-Commerce is the electronic exchange of:

E-Commerce - Kinan A. Bahnassi

Goods
Services
Information
Money
E-COMMERCE MATURITY MODEL
3 LEVELS OF DEVELOPMENT
3. c-Business
Integrating/Collaborating with
the back office information systems,
and connecting with business partners

2. t-Commerce
Ordering the products online (transaction),
E-Payment could be available online.

1. i-Commerce
Products Information available on the web,
Buying and selling on the usual channel
e.g. telephone, and fax
 E-Commerce - Kinan A. Bahnassi
E-COMMERCE CATEGORIES
 E-Commerce - Kinan A. Bahnassi
E-COMMERCE DEVELOPMENTS
THINGS YOU NEED TO KNOW ABOUT
SUCCESSFUL E-COMMERCE

E-Commerce - Kinan A. Bahnassi

 E-Commerce - Kinan A. Bahnassi
E-COMMERCE BUSINESS MODEL
 E-Commerce - Kinan A. Bahnassi
DIFFERENT BUSINESS MODELS
E-COMMERCE BUSINESS MODELS CONT.

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THE E-COMMERCE APPROACH IS TO GIVE
PEOPLE:
Whatthey want,
Where they want it,

E-Commerce - Kinan A. Bahnassi

When they want it.

WWW
is purely incidental!
 E-Commerce - Kinan A. Bahnassi
VALUE OF E-COMMERCE
 E-Commerce - Kinan A. Bahnassi
VALUE OF E-COMMERCE
 E-Commerce - Kinan A. Bahnassi
VALUE OF E-COMMERCE
 E-Commerce - Kinan A. Bahnassi
VALUE OF E-COMMERCE
VALUE OF E-COMMERCE

Supplier Producer Wholesaler Retailer Customer

Traditional Supply Chain

Supplier Producer Wholesaler Retailer Customer

Supplier Producer Wholesaler Retailer Customer

Disintermediation

Supplier Producer Electronic Intermediation Customer

Re-intermediation
VALUE OF E-COMMERCE
 In order to business to survive, it needs to change their
business from traditional and product driven business to

E-Commerce - Kinan A. Bahnassi

more customer centric business.
 Business has to expand to new markets (local and
international)
 Business has to differentiate it self more often than
before.
 Business has to maximize the trade off between
efficiency and effectiveness.
 Business has to focus on profitable segments
IMPORTANCE OF E-COMMERCE BUSINESSES
 Proportionally low venture capital
 Greater economic empowerment through direct market

E-Commerce - Kinan A. Bahnassi

access (disintermediation – cut middleman)
 More technical skills acquired as a result

 Reaching consumers anywhere and anytime.

 Just in time feedback

PERSONALIZATION
 Nike ID – Design YOUR own Nike shoes
 Dell – Build YOUR own computer

E-Commerce - Kinan A. Bahnassi

 Hallmark – Design YOUR own greeting card

 1800-Flowers – Design YOUR own flowers bouquet

 Wedding Planer – Plan YOUR own wedding

 Expedia – Plan YOUR vacation

 Priceline – Name YOUR own price

BARRIERS TO E-COMMERCE IN SYRIA
 Infrastructure: Limited quality of communication and
services
 Rural Access: Still problematic

E-Commerce - Kinan A. Bahnassi

 Illiteracy: Literacy needed for using Internet, especially
among older people/women in rural areas
 Digital Literacy: Still low
 Policies: enabling environment and regulations
 ENABLING ENVIRONMENTS
INFRASTRUCTURE:
Access to Technology & Connectivity,
Telecommunication Infrastructure, &
Supporting E-Services

E-Commerce - Kinan A. Bahnassi

LEGAL:
Governmental COUNTRY-WIDE
Policies and ACCEPTANCE & DIFFUSION
Support, & Legal
of E-COMMERCE
Environment and
Practices

SOCIO-ECONOMIC:
Business Environment, Consumer and
Business Practices, & Social and Cultural
Characteristics
E-COMMERCE MAJOR REQUIREMENTS
 Security - Encryption and decryption
 Authentication - Digital signatures digital signatures and

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electronic contracts
 Consumer protection - In an electronic market

 Intellectual property rights – Protection to the

innovator's ideas
 Electronic payments – Involving Central Banks in e-
Commerce policy development
 Finally
“Technology is the answer, then what is

E-Commerce - Kinan A. Bahnassi

the question?”

Today, technology has changed, but the

question hasn’t.
WHAT MAKES YOUR

E-Commerce - Kinan A. Bahnassi

BUSINESS FAST,
FLEXIBLE, EFFECTIVE
AND EFFICIENT?
“Be the change you wish to see in the
world”
M. GANDHI

Thank You
Kinan A. Bahnassi