Home    About Canada   Analysis: National IT   Size of Domestic Market   ICT Policies    Telecommunications

Internet Diffusion   e-Commerce   ICT Use by Business    Domestic Production    IT Workforce    IT Geographics  

IT Financing   E-Government  Legal Environment   Sources & Links   About the Author 

Electronic Commerce is an important component of Canada's Innovation Strategy. Industry Canada is the government agency that has its primary focus on electronic commerce for the entire nation. Industry Canada believes that understanding electronic commerce is a primer for Canadian businesses thinking of going on-line. They have defined electronic commerce in two parts: "Basically, Electronic Commerce is a cheap way of connecting computers in order to accomplish tasks that traditionally drained a lot of time and money from business. things like selling products, invoicing, controlling inventories, and communicating with suppliers and customers." "Technically: Electronic Commerce (ECom) is commercial activity conducted over networks linking electronic devices (mainly computers)."

e-Commerce

Industry Canada is the primary government agency responsible for electronic commerce in the nation, however there are a number of other agencies which also have a direct interest to further IT and e-commerce in Canada. The two other major players are Information Technology Association of Canada (ITAC), Canadian Department of Foreign Affairs and International Trade. In addition to, Softworld, a Vancouver-based company, and the Software Human Resource Council. Further support is provided in Canada via volunteer executives from both the public and private sectors as members of Electronic Commerce Canada, these members network, share information, and discuss e-commerce initiatives.

It is imperative to understand why electronic commerce is so important to a nation. Industry Canada has explained this in two ways. "Basically, the Internet is a vast network of people and information. It won't take you long to figure out how to get to the information you want. Nor will it take you long to figure out how to interact with people who are important to your business. Customer orders, customer complaints, customer desires can all come streaming at you through your computer screen if you set up systems to make them do that - and there are more and more of these kinds of software systems on the market. Just choose one that works for you." "Technically, the Internet is a global collection networks connecting and sharing information through a common set of protocols. It allows computers attached to networks communicate effectively regardless of make, architecture, operating system or location. Unlike traditional forms of communication, separate networks with separate technologies for voice, data and video transmission are no longer necessary. The Internet can carry these over one simple infrastructure, such as telephone lines, cable lines, or wireless devices. This allows the users to keep constantly informed of what suppliers have available, and at what price, without even talking to them. It further allows the users to keep chosen suppliers informed of the business needs simply by hooking up its own inventory control devices to their supply systems through the use of the Internet.

Industry Canada has defined a set of common networks used in electronic commerce which allows small businesses to climb on board the Internet, which amounts to a free electronic highway. When small businesses are hooked up, it allows them to buy, sell, and connect with the people who matter: employees (in the next office or three thousand miles away), suppliers, customers, banks, credit information services, sources market information, and so on. Quickly, cheaply, and ever-so-efficiently. Open networks, like the Internet, or closed, private networks. Electronic commerce first emerged in the 1960s on private networks, as large organizations developed electronic data interchange (EDI) and banks implemented Electronic Funds Transfer (EFT). The Internet itself was first a closed network established by the U.S. military for security communications. It has evolved into an open system that can be accessed cheaply by people around the world. 

There is a commonality of issues which need to be addressed and cut across all dimensions of electronic commerce. It is often assumed that electronic commerce issues of concern to businesses are different from those of consumers and governments, and that separate approaches must be developed for each. Contrary to this belief, consumers and governments share concerns with these fundamental issues.

The Internet is reshaping the way businesses and consumers communicate, interact and transact. This part of the website is dedicated to research, statistics and other reports on Electronic Commerce. Working in close collaboration with private sector partners, academic researchers, Statistics Canada and other sources Industry Canada's goal is to better understand the economic, business and social impacts of the New Economy. The following four sets of data will help to visually depict to total value of electronic commerce in the entire world.