Date: Tue, 31 May 1994 13:46:55 CDT Newsgroups: bit.listserv.govdoc-l From: "Dexter, Martha (Dir.,Info/Pub)" <mdexter@ops.ota.gov> Subject: OTA Report on Electronic Commerce ----------------------------Original message---------------------------- May 26, 1994 OTA EXAMINES FUTURE ELECTRONIC COMMERCE Lawmakers and businessmen at the turn of the century reacted only after new technologies had restructured their society. However, citizens today have an opportunity to comprehend and prepare for the radical changes taking place as the concept of a National Information Infrastructure (NII) moves from vision to reality, says the congressional Office of Technology Assessment (OTA). The Clinton Administration announced in September 1993 an initiative to promote the development of NII ... "that would create a seamless web of communications networks, computers, databases, and consumer electronics that will put vast amounts of information at users' fingertips. ...[That] can help unleash an information revolution that will change forever the way people live, work, and interact with each other." The initiative relies on the private sector to innovate and aggressively pursue the deployment of these technologies. But certain problems in the deployment of the NII will persist that only the government can address, says OTA. In testimony today before the House Committee on Science, Space, and Technology, OTA released the findings of its Report Electronic Enterprises: Looking to the Future. In the Report, OTA takes a strategic look at the development of electronic commerce, and outlines the characteristics of the infrastructure that must support it. To support U.S. businesses and to ensure a competitive economic playing field, the information infrastructure will need to be flexible and open, seamless and interoperable and evenly and broadly deployed, says OTA. The Report lays out a number of government strategies to promote a network architecture that meets these requirements. The US is in the midst of a transition created in part by advances in communication and information technologies. These developments are radically altering the US economy and changing the way that business is conducted, says OTA. Markets are expanding globally; business organizations are streamlining; what we normally think of as a firm is becoming blurred; some worker skills are becoming obsolete requiring worker retraining;and production is being carried out "just-in-time" on a flexible schedule, rather than being mass-produced. These changes are fundamental and far-reaching. OTA emphasizes that in an electronically networked economy, the design and underlying architecture of the global information infrastructure will have a major impact on national economic growth and development. If American businesses are to benefit fully from electronic commerce, says OTA, not only technology but also social and economic factors that govern the use of networking technologies need adequate attention in designing infrastructure policy. To address these factors, the government will need to look beyond the traditional role of "regulator," and consider the full range of strategies that it might pursue, says OTA. In its other various roles as broker, promoter, educator, and institution- builder, the government must establish the rules of the game and the incentive structure that will help determine private sector choices. As regulator, government will need to ensure that electronic markets are evenly deployed, open, and accessible on an equitable basis. Whether in work relationships within a firm, competition in the marketplace, or trading relations among nations, having access to information and the ability to use it strategically will be the keys to success or failure. What is different today, OTA points out, is the extent to which knowledge is now embedded in information and communication technologies. As a result, choices about the design, architecture and structure, or the rules and regulations of network technologies will be irreversible in the short- to medium-term. Requesters for the study are the Senate Committee on Commerce, Science, and Transportation, and the House Committee on Science, Space, and Technology. Copies of the 190-page Report Electronic Enterprises: Looking to the Future will be available in about three weeks from the Superintendent of Documents, U.S. Government Printing Office, and from the National Technical Information Service. To inquire about availability, call OTA at (202) 224-8996 or e-mail pubsrequest@ota.gov. For copies for congressional use, please call (202) 224-9241. A 4-page Summary and testimony delivered at the hearing are available electronically. (The Report will be available electronically in about a week.) To download via ftp from OTA, use the following procedures: ftp to otabbs.ota.gov (152.63.20.13). Login as anonymous. Password is your e-mail address. File is in the directory /pub/elenter. OTA is a nonpartisan analytical agency that serves the U.S Congress. Its purpose is to aid Congress in the complex and often highly technical issues that increasingly affect our society. Martha Dexter mdexter@ota.gov Director, Information Management (202) 228-6233 Office of Technology Assessment fax: (202) 228-6098 U.S. Congress Washington, DC 20510