1 Dili Ojukwu - e-Nigeria Conference - Abuja, Nigeria - June 30, 2005 A NEW MODEL OF B2B E- COMMERCE...

11Dili Ojukwu - e-Nigeria Conference - AbuDili Ojukwu - e-Nigeria Conference - Abuja, Nigeria - June 30, 2005ja, Nigeria - June 30, 2005

A NEW MODEL OF B2B E-COMMERCE FOR SMES IN DEVELOPING COUNTRIES:

THE NIGERIAN RURAL PERSPECTIVE

Dili OjukwuDili Ojukwu School of Computing ScienceSchool of Computing Science

Middlesex UniversityMiddlesex UniversityWhite Hart LaneWhite Hart Lane

TottenhamTottenhamLondon N17 8HRLondon N17 [email protected]@mdx.ac.uk

Nigerian Contact No: 0803-603-8604Nigerian Contact No: 0803-603-8604

Dili Ojukwu - e-Nigeria Conference - AbuDili Ojukwu - e-Nigeria Conference - Abuja, Nigeria - June 30, 2005ja, Nigeria - June 30, 2005

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Matters ArisingMatters Arising

►Background and Current Literature►Why The New Model?►Components of the Proposed Model►Features of the Proposed Model►Architectural Overview of the New

Model►Envisaged Problems of the New Model►Envisaged Benefits of the New Model►Conclusion and Future Directions


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BackgroundBackground

• More than half of the world population live in rural areas• So, what are the choices before us today?

– We can either shy away and indulge in ostrich-hiding• By not investing in our rural areas;• By treating rural dwellers as poor and untalented;• By allowing the age-long rural-urban migration to continue;• By allowing young people to threaten our individual and corporate

survival and security through armed robberies, bribery and corruption, 419 and risking of their lives while attempting to cross to Europe and America through all sorts of dangerous means in their quest for survival.

• Or we can empower the rural populace by giving them modern tools of communication, among others. It is as simple as that.– Electronic commerce, particularly business to business (B2B)

holds a powerful key to unlocking the latent potential of our rural communities thereby empowering them to achieve economic self-sustainability that leads ultimately to real poverty reduction.

– It has been established that there is a direct link between communication access and poverty reduction (Khalil, 2003).


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• Khalil is not alone. My experience in the course of my field study shows that rural Nigerians have taken up the challenge provided by the advent of GSM mobile phones in the country.– People now use mobile phones as business tools;– You no longer need a furnished, exortic office in order to

make money; you can do so under an umbrella on any road side.


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• Of course, we recognise that modern wireless telecommunications equipment is not as cheap as owning a mobile phone. That is why we propose a form of collaborative arrangement or clustering.

• We also know that the small and medium sizes enterprises (SMEs), especially those in rural areas do not have very deep pockets.


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Background and Current Background and Current LiteratureLiterature

► Historical Perspective There is a culture of collaboration as

evidenced by the practice of what is variously called

- ‘ISUSO’ (Anglophone) Eg Nigeria;

- ‘TONTINE’ (Francophone) Eg Cameroon;

- ‘STOKVEL’ in South Africa.

This practice is known in the West as ROSCA or ASCRA- ROSCA – Rotating Savings and Credit Association

- ASCRA – Accumulating Savings and Credit Association

(Bourman, 1994)


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Why The New Model?Why The New Model?

► The Need for Proposed Model - Existing Models of B2B in SSA

- Drawbacks of the existing Models (Rao, 2003; Shemi & Magembe, 2003; UNCTAD, 2001 & 2002) - Deployment and Implementation Problems in SSA, especially in the rural communities(Avgerou, 2002;Fleenor and Raven, 2003) - The issues of Trust and Security


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Components of the Components of the Proposed ModelProposed Model

►We propose here that the marriage of wireless telecommunications and a cluster of smes is a match made in Heaven for rural dwellers

►Why wireless telecommunications?– The need for wireless, broadband

telecommunications (Best, 2002; UNCTAD, 2001 & 2002)

– PSTN (Public Switched Telephony Network) – unaffordable to most SMEs in SSA (Liddell, 2003) – ITU statistics show that mobile telephones have overtaken land lines in most dev countries

– Pentland et al (2004) - DakNet– Accessibility, affordability, cost, ease of

installation and maintenance.


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DakNet - FeaturesDakNet - FeaturesFig 1: DatNet Features (Pentland et al, 2004)


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Features of the Features of the Proposed ModelProposed Model

Fig 2: Levels of the Proposed Model

Collaborative(Integrational)

Enterprise(Integrational)

External

External

Internal

EXTRANETHRMSCMCRMIASBPI EPISECURITY & TRUST

SECURITY

EFTEDIE-MARKETING

INTERNET

LEGACY SYSTEMSERPINTRANETSECURITY


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Architectural Overview of Architectural Overview of the New Modelthe New Model

Fig 3: Architectural Overview of the Model

*LEGACY SYSTEMS

*ERP

BUSINESS A

DEALER (CRAFTS )

INTRANET

*LEGACY SYSTEMS

*ERP

INTRANET

BUSINESS B

LOCAL FURNITURE MAKER

EXTRANET

INTEGRATED SYSTEMS

DATABASE CATALOGUE

SECURITY & TRUST

BUSINESS CBANK

INTRANET

*LEGACY SYSTEMS

*ERP

BUSINESS DCONSULTANT

INTRANET

*LEGACY SYSTEMS

*ERP


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Where there’s a will…Where there’s a will…

• Other countries are doing it, so what are we waiting for?


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Envisaged Problems of the Envisaged Problems of the New ModelNew Model

Problems►Trust amongst Cluster Members►Business Process Integration►Security of the Transactions►Avoiding Bureaucracy►Reducing the over-dependence on

technology►Policing or monitoring the activities of

members (with government participation, this would not be a big issue)


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Envisaged Benefits of the Envisaged Benefits of the New ModelNew Model

B2BCLUSTER

MODEL

BANKS SOCIETY

SMEs CONSULTANTS

GOVERNMENT

Stakeholders of B2B Cluster Model


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Thanks for ListeningThanks for Listening

Your Comments, Questions and Suggestions Welcome!

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1 Dili Ojukwu - e-Nigeria Conference - Abuja, Nigeria - June 30, 2005 A NEW MODEL OF B2B E- COMMERCE...

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