Information Technology in the

 

 

Netherlands



Electronic Commerce

About The Netherlands


 
 The Electronic Commerce Action Plan, conducted at the Hague, March 1998 explained the Netherlands current position and in the process of setting forth future goals presented several obstacles to E-commerce.  One of the most unique aspects of e-commerce in the Netherlands is the fact that this market driven enterprise is intended to be an information gateway to the European community in the same way that the Dutch currently act as a point of distribution of goods to Europe.

 

Netherlands current position

  • The market penetration of PCs and number of subscriptions to the internet is relatively high, almost 22% of Dutch companies now have a subscription to the Internet
  • The Netherlands is a nation that is familiar with the notion of charge cards with pin codes and telebanking
  • There are a large number of smartcards in comparison to most Western countries
  • Important providers such as Philips, Baan, KPN, Erickson and Alcatel and European market leaders in the area of transport, business and financial services, trade and publishing (there are already 30,000 business web sites)
  • Good underlying infrastructure for logistics and distribution
  • International outlook, high standard of education, good linguistic skills

 

Obstacles to E-commerce

  • Recognition of the limitations of rapid expansion due to legal, economic, and technical issues.  (See Diagram below)

 

 

 

 

Demand

Supply

Economic factors

· costs of telecommunications

and end-user

equipment

· lack of (and lack of

confidence in) electronic

payment systems

· lack of knowledge and

awareness

· uncertainty about return

on investment

· lack of (and lack of

confidence in) electronic

payment systems

· branding and marketing

Legal factors

· jurisdiction and liability

· electronic signatures/

authentication

· consumer protection and

privacy

· jurisdiction and liability

· electronic signatures/

authentication

· intellectual property and

copyright

Technical factors

· capacity of infra-structure

· complexity of software

· IT skills and knowledge

of users

 

· capacity of

infrastructure

· IT skills and knowledge

of providers

· standardization &

harmonization

· millennium and euro

problems

 

[1]

 

 

 

 

 

 

  • SMEs are reluctant to invest on the people, hardware, and software for an uncertain return on investment
  • Need for internationally coordinated action plans to resolve legal uncertainties

 

“Internet use in the Netherlands grew from 1.6 million users at the end of 1998 to approximately 2.3 million users by mid-1999.”[2] Total sales of electronic services and products in the Netherlands in 1997 have been estimated to be worth over NLG 1.2 billion.  The market segments are broken up into the following: E-shopping/E-banking (17%), Pay TV/Music/ Games (17%), E-mail, Video Conferencing (4%), Lotteries/ Gambling (13%), Software/Search Engines, Browsers (1%), EDI/ PDI (10%), Databases/ Information/ News (38%).[3]

 

There are three main types of online transactions in the Netherlands are B2C, B2B, and B2A.  Business-to-Business transactions are accomplished through EDI (Electronic Data Interchange) and PDI (Product Data Interchange).  This segment of e-commerce has the greatest potential. Business-to-consumer (B2C) electronic shopping is still in its infancy in the Netherlands.  B2C electronic bill payment and presentment (EBBP) and well as telebanking has really taken off.  Business-to-Administration electronic tax filing and public procurement contracts have also begun to take hold in the Netherlands.

 

 

 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


 
 

 

 

 

Telecommunication
Infrastructure

Liberalization and Deregulation

Internet Diffusion

Electronic Commerce

Hardware manufacturing

Software development

Who Uses IT

IT Geographics

IT Financing

IT Labor Market

Government Policies

Legal Environment

Transborder Data Flows

Analysis: IT strengths and weaknesses

Analysis :Impacts on the Business

Sources and Links

About the authors


 

Back to The Information Technology Landscape in Nations page......

 

The MOGIT site

TheKogod School of Business

AmericanUniversity 


 
 


Last update: December 18, 2000
 
 
 



[1] ‘Electronic Commerce Action Plan’, The Hague, March 1998

[2] http://www.corporateinformation.com/nlsector/Computers.html

[3] Booz-Allen & Hamilton, ‘On-line services market benchmarking’, January 1998