Speech to the West Coast E-Commerce Event

I am thrilled to be here at the West Coast E-Commerce Event. This event has particular significance, as today is the anniversary of the E-commerce Summit which we held in Auckland last year.

We held the Summit to raise the profile of e-commerce in New Zealand. We wanted to show that e-commerce is not just about big cities and big business, it is about enabling all New Zealanders to participate in the emerging global electronic economy.

So I am delighted that you on the West Coast have grasped the baton of e-commerce and run with today’s event. This is the kind of local leadership that I was hoping would be generated, and it is very satisfying to see it actually happening.

I want to cover three topics with you today.

The first is what is e-commerce and its importance to New Zealand.

Secondly today, on the anniversary of the Summit, I am releasing a Progress Report on implementation of the E-commerce Strategy, and I want to talk to you about some of the highlights of the work we have done over the last year.

Lastly I want to take a few moments to talk about some of New Zealand’s e-commerce successes - business people like you who are using the Internet to make a difference in their businesses.

E-commerce
E-commerce is about undertaking business processes in a networked electronic environment – it’s not just about webpage advertising or consumers buying on the Internet.

It’s about businesses changing the way they do business.

It typically uses computers and the Internet, but older technologies such as eftpos are also e-commerce.

In order for New Zealand to become a top economic performer we need to shift from our over dependence on commodities to be a nation where information and knowledge generate new products and services, and new value for traditional products and services.

The new economy is not just information technology – it’s about applying new technology to new and existing industries.

This government has rolled its sleeves up, and is working in partnership with business, tertiary institutions and communities to provide opportunities for all New Zealanders.

The E-commerce Strategy is part of our push for the knowledge economy.

The E-commerce Strategy is part of an overall programme and commitment by Government to build New Zealand’s knowledge economy.

The Progress Report document outlines a large number of significant government initiatives directed at this goal. They cover everything from:
• Rolling out e-government;
•Using the Internet in schools
•Enhancing New Zealand’s venture capital market
•Developing a science and innovation framework
•Providing support for business incubators
•Increasing the availability of skills through immigration
•Providing support for businesses through Industry New Zealand, and so on.

So you can see that when I say the Government has rolled it’s sleeves up and got its hands dirty, I’m not joking.

Today’s organisers used the Internet in just this way to market this event.

Potentially half a billion people can call up their webpage on their computer screens. Who would have thought just a few years ago that this would be possible?

This is the great opportunity for NZ and the West Coast to overcome the tyranny of distance. The West Coast can be on the front door step of Auckland, London or LA. This means more customers and better suppliers.

But in order to take advantage of this our small and medium businesses must be geared up for the e-commerce revolution.

The strategy – one year on
That’s why we launched our e-commerce strategy for NZ one year ago.

The Strategy is aimed at achieving our vision of NZ being world-class in embracing e-commerce for competitive advantage.

In round figures the strategy document identified some sixty actions and commitments for attention by government in partnership with the private sector.

Of course it is a dangerous thing for a politician to make so many commitments, and in writing!

But the Government was prepared to make those commitments to underline the importance we place on e-commerce and the crucial role we believe it will play in New Zealand’s future growth and prosperity.

Too often strategies get released with great fanfare, and then you never hear anything about them again, even if the work outlined is being done.

That is why today, one year on, I am releasing this report on our progress with implementing the E-commerce Strategy.

The progress report goes through all of the actions and commitments contained in the Strategy and provides a report on each.

I am pleased to say that nearly everything we said we would do, we have done, and I want to take you through just a few of the highlights.

E-commerce Strategy
The Strategy identified three key roles for government:
•Leadership and communication
•Building capability; and
•Ensuring an enabling regulatory environment

Lets look at some of the work that is being done under each heading.
E-govt - By 2004 the Internet will be the dominant means of enabling ready access to government information, services and processes.

ECAT - the E-commerce Action Team was formed in March - it includes representatives from the private and public sector who have strong interest in e-commerce. We wanted ECAT to break the mould of govt advisory committees of the past. Its focus is to be very much on “ACTION” and TEAM”, and on achievement and networking.

ECAT’s aim has been to develop six-quarter action plans to strengthen awareness of and accelerate adoption of e-commerce across NZ business, particularly SMES. You can see this plan on the ECAT website.

ECAT Network – this is a means of connecting businesses, tertiary institutions, groups & individuals that have interest in driving uptake of e-commerce in NZ.
Its membership is self-selecting. It is a channel for sharing information, expertise and solutions and to help raise the profile of local, regional and sector e-commerce initiatives.
As of today - more than 110 organisations, businesses and individuals have registered as Network members.

The Strategy also stated that we would implement a research programme to improve our understanding of e-commerce and benchmark New Zealand against the rest of the world.

A number of research reports have been completed and are available on the ECAT website. One called ‘Net-Readiness in New Zealand Industries’, indicates that 61% of businesses now have a web site, up from 33% last year.

It also indicates that the most Net Ready sector is the Tourism industry - 91% of Tourism respondents have a website - while the sector that lags the most is transport, with only 24% of respondents having a website.

So there are some good stories to tell, and some areas where more work is needed.

ECAT web site, www.ecat.govt.nz - on this site you will find a wealth of information, much of it provided voluntarily by the members.

I look forward to the Network growing, and acting as a real catalyst for e-commerce in New Zealand. I encourage all of you to use the resources, and to join the Network, which you can do online through the web site.

E-commerce: a Guide for New Zealand Business - we have now distributed as many as 8000 copies of this and I believe you each have been given one.

We have also produced other useful information. For example an issue at every E-commerce Event we have held so far is the trouble small businesses have had in selling through the web in US dollars.

Our response was to use resources of ECAT Network to create Multi-Currency Credit Card FAQ. This describes the multi-currency credit card services available in NZ and highlights some of the issues you need to know about.

We also said we would have a series of regional events – this is the sixth and three more planned for 2002.

They are designed to start local business people such as yourselves thinking about e-commerce and what it might mean for you. They have been the catalyst for local E-commerce Action Teams to form. I hope that the same thing happens here.

We said that the second role for government is building capability, and that the Government would facilitate building business e-commerce skills.
We said that Industry New Zealand’s Biz programme would foster e-commerce capability, and in response they have developed an eight-module e-commerce training programme aimed at small and medium businesses.

We said that E-commerce and e-business strategies would be included as qualifying categories in the Enterprise Award Scheme administered by Industry New Zealand, and this has been done.

In addition Trade New Zealand are well advanced in implementing their e-commerce strategy aimed at exporters, and an increasing number of their services are available online.
- Electronic Transactions Bill
-Crimes Amendment Bill
-Telecommunications Bill
-Model Code for Consumer Protection
-Centre for Critical Infrastructure Protection
-Progress on Evidence Law Reform
-Intellectual property

Broadband
One issue that has emerged over the last year is availability of high-speed two-way (or Broadband) Internet connectivity. This is fundamental to the uptake of e-commerce.

Recently the government announced its goal of ensuring all kiwi communities can access two-way high-speed Internet services by end of 2003.

We are funding six regional pilot schemes that will test the potential for bringing together broadband demand in each particular region in a commercially attractive way for suppliers.

The pilots will support initiatives driven by communities themselves and by suppliers – it will not be driven top-down from the Government.

I understand that there are discussions going on as we speak of ways for the West Coast to get better telecommunication services. The government is keen to help.

At the E-commerce Summit a year ago I spoke about the need for us New Zealanders to learn to crow a bit about how good we are. I said that in meeting and talking with people what never fails to amaze me is the ability of New Zealanders to do great things.

Even more amazing is that we don’t like to talk about it. You never seem to hear a New Zealander talk about the thrill of building a great company.

To finish off today I want to celebrate a few e-commerce heroes.
Firstly, there are some very good privately run websites dedicated to providing business people with excellent e-commerce information.

One of these is Istart – www.istart.co.nz - which features Expos by e-commerce application vendors, it has over 100 case studies and reports on a number of specific topics.

We know that Istart have quality material, because they have republished with our permission large junks of our E-commerce Guide.

Virtual T’Art - www.virtual.tart.co.nz - is one of my favourite e-commerce examples. It illustrates how the web can expand market reach.

Virtual T’art (the T stands for Taranaki) is a web site set up by Taranaki artist Dale Copeland. She uses it to showcase her art that of 33 other artists.

Before the web site the highlight for many of these artists was an exhibition in Hawera. Nowadays for every work sold to a New Zealander, two are sold to overseas buyers.

Reliance Transport = www.reliance.co.nz - won last years E-commerce Summit Registration Prize, which was a $25 000 fully functioning e-commerce website provided by Microsoft.

Reliance has an interesting story to tell about the pitfalls of implementing e-commerce.

The Okau Wilderness Park web site - www.nzhunt.com - is another example of the power of the Internet to expand market reach.

The Okau Wilderness Park is situated near Castlepoint on the Wairarapa Coast.
The owners Gert and Christine Vermeer run guided deer hunting tours. Until they set up the website their clients came mainly from Australia.

But with the website they have been able to successfully target American hunters, while at the same time actually spending less on advertising.

Obo Goal Keeping – www.obo.co.nz - sells protective hockey gear for goalies. Already a market leader with annual sales totalling nearly $3 million, one third of its market is Europe, where has up to 60 % market share in some countries.

Obo use the site’s interactivity as an R&D tool, asking for direct feedback from goalies on Obo products and soliciting suggestions for improvements.

Obo have tapped into a global niche, and this very much the future for businesses in New Zealand.

I’d lLike to finish with a great Westland example – Sutton’s Moss limited.
Their factory and office are in Omapere Street in Dobson, – but they sell Sphagnum Moss to the world.

Suttons has well established trading relationships with companies in Japan and Taiwan – and it’s expanding.

The company puts a big emphasis on meeting its clients expectations and catering to their needs – their Internet presence plays a key part in that.

Conclusion:
It is notable that the government has made a concerted effort to forge linkages and partnerships with the private sector in many of these initiatives I’ve mentioned today.

It’s about working together to build a better New Zealand - one where all can participate in the knowledge economy game, and which strives towards those values we hold dear.

It's up to all of us. Time is of the essence.