Professional Documents
Culture Documents
Learning Outcomes
The objectives of this training module are to provide:
• Overview of eBusiness
• eBusiness Terms
• Who uses eBusiness
• Statistics on eBusiness
• Examples and Benefits of eBusiness applications by Victorian businesses
Workshop Notes:
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What is eBusiness?
eBusiness presents a broader dimension of eCommerce as it represents the use of electronic technology,
especially web and other network technology, for business.
eBusiness represents:
1. A range of online tools and processes that transform a company’s value proposition by using
sophisticated data warehousing to target customers more effectively, networks to link companies with
suppliers, distributors and other business partners; and flexible organisational infrastructures that
adapt to change.
2. A way for companies to participate as part of a larger networked community of providers, each
bringing specialised skills and new levels of performance to an e-market place.
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Useful eBusiness Terms
Business-to-Business (B2B)
Interaction between businesses either in an established supply chain, or with trading partners. The ability to
electronically link your business with that of your suppliers could lead to faster restocking times, lower stock
levels, and lower costs. If you have been considering engaging in business-to-consumer e-commerce, give
some thought also to ways in which you could lower costs or increase your efficiency by engaging in
business-to-business e-commerce.
Business automation
A contact manager, job activity and job tracking system that allows fast and flexible communications with a
mobile workforce.
Extranet
An intranet partially accessible to authorized outsiders. Whereas an intranet resides behind a firewall and is
accessible only to people who are members of the same company or organisation, an extranet provides
various levels of accessibility to outsiders.
Intranet
A worldwide network of computers that facilitates data communication services such as remote login, file
transfer, electronic mail, newsgroups and the World Wide Web.
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M-Commerce
The use of a wireless terminal, such as a mobile phone or personal digital assistant (PDA), and a network to
access information and conduct transactions that result in the transfer of value.
Online networking
Uses Internet, intranet and extranet technology to collaborate amongst certain groups of users, such as
employees or partners.
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Which Industry sectors are Buying Over the Internet?
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Which types of Business customers use the Internet?
Australia is one of the leading countries in the world in terms of Internet infrastructure, penetration and use.
Australians are major adopters of Information Economy-enabling technologies such as the Internet,
computers and mobile phones.
Source: Australian Federal Department of Communications, Industry, Technology and the Arts.
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How has Australia’s use of the Internet changed?
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Examples of eBusiness
Label Manufacturer Uses the Internet to increase export sales by allowing agents and distributors
from all over the world to see the latest designs, place orders and manage their
account.
Olive Farmer Listing of products on the website for sale as well as providing an online
shopping facility for a network of other olive farms.
Restaurant No website is required to benefit from wireless technology and handheld digital
assistants taking orders from tables which are electronically sent to the kitchen.
Pottery Importer A content management system allows up to date products, pricing and gallery
events timetable to be published internally, reducing costs of external website
development.
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Examples of eBusiness
Farm Machinery Entering hundreds of agricultural machinery equipment online ensures stock
Dealer availability is more timely recorded across multiple dealer locations and
marketed more effectively to rural customers.
Wholesale Dental Instant online ordering using handheld digital assistants for 24 sales
Distributor representatives provides greater efficiency in the supply chain and provides
management with a real time contact management tool.
Motorcycle Tourism Using streaming video on a website to show not tell visitors about the motorcycle
Operator service being offered utilises the advantages offered by an increasing number of
broadband internet connections.
Horse Transporter The Internet provides a critical document management system to keep owners
and trainers of horses flown to and from Melbourne informed of their progress.
The Intranet provides a way for all offices to share information and reducing
communication costs.
Building Company The use of an electronic customer relationship management tool assists in the
job scheduling, workflow process and accountability of projects in the building
industry.
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E-Business Infrastructure Requirements
This presentation handout supports the “E-Business Infrastructure
Requirements” slide presentation.
Learning Outcomes
Workshop Notes:
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Web Hosting
Most Australian websites are hosted on a dedicated web server at the external web hosting provider’s
location. The benefits of a web hosting provider include:
• Domain Name Services – including website name registration, website forwarding, providing multiple
email accounts and domain name protection services.
• Storage and Backup – of the website and files including databases and email lists.
• Server Speed and Reliability – of the website is important as people are accessing your business
website from computers around the world. It is important that a website is always accessible and remains
uninterrupted by power failures and server faults.
• Management Information – Web hosting companies should provide access to real-time website traffic
statistics which will allow your business to evaluate and monitor the number of visitors, time spent
viewing and which country the visitors originate from.
• Security – Webhosting companies have systems and processes in place which reduce the risk of a
security breach on your website (such as viruses and hackers).
• Technical Support – Time is money and hence you should check to ensure that your web hosting
company has a dedicated technical support team to answer questions and solve technical problems via a
telephone and or an email support centre.
• Advanced Solutions – To provide a full range of solutions including managed services across various
office locations, shopping cart e-commerce technology, secure servers, content management systems,
database hosting and wireless services.
• Pricing - Website hosting is a competitive industry and fees typically range from $20 to $100 per month.
The difference in price relates to the amount of Megabyte Disk Space, the monthly data transfer per
month, number of email addresses and whether there is e-commerce and database connectivity.
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Selecting an Internet Service Provider
There are over 500 Internet Service Providers (ISP) in Australia. Before selecting your Internet Service
Provider, be aware that they differ on location, price, support and additional services.
• Location – Often rural dial-up customers need to consider long distance call rates and whether the
Internet Service Provider has broadband in your business area.
• Price - The following websites allow you to type in the telephone number and it will return a list of Internet
Service Providers who provide broadband access in that area along with pricing information
www.ispchoice.com.au
www.whirlpool.net.au
• Internet Tool Kit - The Australian Communications Authority has developed a "tool kit" at
http://www.toolkit.aca.gov.au which provides comprehensive information outlining important factors to
consider when shopping for an Internet service and questions to ask Internet service providers (ISPs).
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Broadband Internet Access
There are several types of connection for businesses to subscribe to:
• Narrowband - a narrowband connection to the Internet through a telephone line, normally through a 28
or 56 kilobytes per second speed modem.
• ISDN (Integrated Services Digital Network) - a system of digital phone connections that allows one line to
handle several applications at once (e.g. videoconferencing, facsimile, telephone and computer).
• Broadband - A permanent, high-speed connection between your computer and an ISP that does not use
a dedicated telephone line. Broadband means a high-speed Internet connection that is, at the very least
128kbps, which is almost three times the speed of a narrowband 56kbps dial-up connection. Most
broadband services are available at speeds of 256kbps, 512kbps, 1500kbps and even faster. There are
three main technologies used to deliver broadband:
Cable – The television cable network is used to connect to the Internet.
ADSL – The existing telephone wires are used to send information to/ from your computer and ISP
Satellite - A satellite dish sends and receives signals to your computer.
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Broadband offers the following advantages to business:
• Faster Uploads and Downloads – Allowing business to send and receive plans, documents and images
with their associates as well as share large files quicker than mailing or faxing.
• Affordability - High-speed broadband packages (at speeds of 256kbps, 512kbps and 1500kbps) start from
around $29.95 (with download limits from 200mb) and go up, depending on the ISP, from $30 through to over
$100 per month depending on the speed and the limit of data you can download in one calendar month.
• Constant Internet Access - Provides a constant Internet connection, thereby avoiding redialling the
connection.
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Internet Security
Internet Security Software – software which combines antivirus and firewall software and often includes anti-
spam and other security and productivity features.
Anti-Virus Software – Over 50,000 computer viruses are registered globally and they spread typically by
email attachments, Internet downloads, shared disks, CD-ROMs and other sources. In order to protect your
computer and the information held on it, anti-virus software is recommended. A virus is any computer
program written to damage computer systems (e.g. erases your vital files).
Firewall - A Firewall prevents unauthorized access to or from a private network by examining each message
and blocking those that do not meet the specified security criteria.
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Privacy Policy
Under the changes to the Privacy Act, a set of National Privacy Principles (NPPs), which describe minimum
standards for the handling of personal information apply to the private sector. These principles relate to the
manner in which personal information may be collected and used, and to whom it may be disclosed. The
NPPs require that businesses which use personal information be open about their information practices and
maintain the accuracy of the personal information. As a result of the amendments, the Privacy Act applies to
the private sector as well as the public sector.
The amendments generally do not apply to businesses with an annual turnover of $3 million or less, unless
those businesses choose to '
opt-in'or conduct particular types of business.
You should conduct your own detailed research and/or seek legal advice before finalising a privacy policy.
These notes are for your general guidance only.
Privacy Policy - While every Australian organisation website will need a slightly different privacy policy, the
following elements are important to include:
• Legal statement - A statement that the website will not collect or disclose any personal information
without first obtaining user approval, unless required to do so to satisfy legal obligation
• Data sharing - An outline of the circumstances under which the personal data might be shared with
others
• Log files - Information on what log file information (such as the addresses of visitors to the website)
is stored by the website
• Email addresses - Provisions regarding how email addresses submitted to the website will be used.
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The Spam Act 2003
Spam Act 2003
The Spam Act says that unsolicited commercial electronic messages are prohibited and that commercial
email messages must not be sent without:
- The consent of the recipient
- Accurate information about the sender of the message; and
- A functional way for the message’s recipients to indicate that they do not wish to receive such
messages in the future – that they wish to unsubscribe.
Messages covered include email, short message service (SMS) and Instant Messaging (IM).
If a business is found to have breached the Act, a court may impose a penalty of up to $220,000 for a single
day’s contravention.
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Smart Tips and Demystifying eBusiness Myths
This presentation handout supports the “Smart Tips and Demystifying
eBusiness Myths” slide presentation.
Learning Outcomes
The objectives of this training module are to provide insights and smart tips and demystifying eBusiness
myths on:
• Developing your website using Content Management Systems
• Supply Chain Management and Online Process Automation
• Online and eMarketing
• Buying and Selling online
• Broadband Infrastructure Requirements
• Approaching Export
• Wireless and Mobile Applications
• Knowledge Management (Using Intranets)
• Electronic Customer Relationship Management
• eSecurity and Trust
Workshop Notes:
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Developing your Website (Content Management Systems)
Utilize your existing website in Content Management System
By implementing a content management system, you may wish to move your existing website content into
the new system. Although a content management system offers a template for your website, be sure to use
your existing content, images, pictures and files. You don’t have to start afresh and develop completely new
materials!
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eMarketing
Search Engines
Increasingly, small and medium sized businesses are advertising on Internet search engines by purchasing
“keywords” which relate to their business product or service. When people type these key words (for
example, ‘plumber’, ‘car dealer’, ‘newsagent’, etc) into a search engine, such as www.yahoo.com.au or
search.ninemsn.com.au, the return list of results will feature the business who sponsored or paid for that
keyword higher in the results ranking!
Workshop Notes:
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Broadband Infrastructure Requirements
Demonstrate your business with streaming video
The reduction in price of broadband means that more Internet users can easily download streaming video
clips on websites. To increase the number of ‘lookers to bookers’ on your website, you may provide a
streaming video clip of your business product being demonstrated. Similarly, services are intangible and hard
to demonstrate. Therefore, streaming video can show your services being consumed and people can ‘see
your service’ easily via their broadband connection.
Workshop Notes:
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Approaching Export
Provide access to a currency converter
If you are selling your products to overseas customers from your website, you may wish to provide the
currency of the $ symbol as overseas customers may think it is a different currency to Australian dollars. You
may wish to provide a link to a currency converter to assist international visitors to your website in calculating
the figure in their own currency before buying.
Workshop Notes:
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Wireless and Mobile Applications
SMS is a simple mobile application
The Short Messaging Service (SMS) has in recent years experienced explosive growth as a form of business
communications. The 160 character text messages that are on average charged by telecommunications
carriers at $0.25 cents each, can allow you to send out reminders to clients about payments, forms to lodge,
upcoming events as well as staff reminders, instructions and memos!
Workshop Notes:
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Electronic Customer Relationship Management
eCRM is not costly
Many small and medium sized businesses still keep their customer details and works or progress reports in
spreadsheets and equally believe that customer relationship management software is prohibitively expensive.
Software packages such as ACT (www.acttoday.com.au), Goldmine and Maximizer (www.maximizer.com.au)
allow you to import customer lists from spreadsheets and increases the functionality – to help you better
manage your business.
Workshop Notes:
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Understanding eBusiness Costs
This presentation handout supports the “Understanding eBusiness
Costs” slide presentation.
Learning Outcomes
The objectives of this training module are to provide insights and approximate cost guides for:
• Establishment and Start up costs
• Developing your website using Content Management Systems
• Operating Costs
• Buying and Selling online
• Security Internet Software
• Electronic Customer Relationship Management
• Wireless and Mobile Applications
• Online Advertising and eMarketing
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Establishment and Start Up Costs*
*Prices were current at the time of compilation in August 2004. Be sure to check for current prices whilst
planning your eBusiness initiatives.
* Costs indicated are based on new goods. Good second hand equipment may be sourced, however this
should only be done in consultation with an experienced computer user or technician.
REFERENCE eNOTES
eNote 1: Setting up on the Internet eNote 3: Opportunities to Save Money
eNote 2: Finding Information on the Web eNote 4: Web Addresses explained
Workshop Notes:
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Developing your Website*
*Prices were current at the time of compilation in August 2004. Be sure to check for current prices whilst
planning your eBusiness initiatives.
• Website development:
o DIY package (e.g. Frontpage 2000) • $200
o By professional website developer • $500 - $10,000 depending on functionality
• Hosted website ‘solution’ (pre-built, template- • $400 -$900 per annum
driven websites that allow you to control your
own content)
• Training - each basic course per person • $100 -$300
REFERENCE eNOTES
eNote 5: Website Development eNote 6: Essential Website Information
eNote 7: Writing for the Web
Workshop Notes:
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Operating Costs*
*Prices were current at the time of compilation in August 2004. Be sure to check for current prices whilst
planning your eBusiness initiatives.
• ISP fees (for e-mail and web surfing, often • $120 - $500 per annum depending on usage
includes some hosting allocation for a website) • $320 (based on 2 local calls per working day)
• Telephone line rental and calls
• Web site:
o Hosting by ISP • $350 - $450 per annum
o Maintenance & upgrade by developer • $50 - $200 per hour
REFERENCE eNOTES
eNote1: Setting up on the Internet
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Workshop Notes:
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• Online shopping cart and e-commerce merchant • From $200 for a off the shelf software system to
technology
• $1,000 to $3,000 for an outsourced system,
there is a monthly fee, set-up fee and or
transaction fee depending on the provider.
REFERENCE eNOTES
eNote 12: Selling Online
eNote 14: Online Credit Card Facilities - FAQ
Workshop Notes:
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Security Internet Software*
*Prices were current at the time of compilation in August 2004. Be sure to check for current prices whilst
planning your eBusiness initiatives.
REFERENCE eNOTES
eNote 16: Security
Workshop Notes:
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REFERENCE eNOTES
eNote 18: Applications Service Providers
Workshop Notes:
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Wireless and Mobile Applications Costs*
*Prices were current at the time of compilation in August 2004. Be sure to check for current prices whilst
planning your eBusiness initiatives.
REFERENCE eNOTES
eNote 19: Telecommunications
Workshop Notes:
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eMarketing Costs*
*Prices were current at the time of compilation in August 2004. Be sure to check for current prices whilst
planning your eBusiness initiatives.
REFERENCE eNOTES
eNote 10: Make Search Engines Work for your website
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eMarketing Costs*
*Prices were current at the time of compilation in August 2004. Be sure to check for current prices whilst
planning your eBusiness initiatives.
Sponsorship
Flat fee – Approximately $100 to $10,000 per
month, depending on the type and popularity of
website or email.
• Email Marketing • From $10 to $100 per month set-up fee or cost
Costs for permission email marketing vary per month fee
depending on the email format and size, the • Set up fees: approximately $250 to $500
quantity of recipients, the level of reporting and
additional services required. Price per email
• From approximately $0.04 to $0.25 for a list of
up to 1,000 subscribers
• Price per email: Approximately $0.01 to $0.15
for a list of up to 40,000 subscribers
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Do it Yourself eBusiness Investment Analysis
This presentation handout supports the “Do it Yourself eBusiness
investment Analysis” slide presentation.
Learning Outcomes
The objectives of this training module are to provide:
1. Outline of your E-commerce idea - create a reference point to keep you focused on your venture’s
proposed ‘boundaries.’
2. Strengths, Weaknesses, Opportunities and Threats (SWOT) Assessment – Your view of the
intangible ‘value’ that your project will bring.
3. Financial Assessment – Estimates of the costs and financial benefits of the idea. The Financial
Assessment will give you a clear picture of the impact venture, but consider a ‘go / no-go decision’ based
on the entire business case that you have put together.
Note Figures and cost ideas discussed in the workshop session are all estimates.
In order to ensure your eBusiness investment analysis is accurate before making a decision, we recommend
you redo this business case exercise with more accurate and complete information in all three sections,
based on your own research, and using the following tools.
• Understanding eBusiness Costs handout: summarises costs of E-Commerce and eBusiness related
products and services
• Financial Assessment is available in using the Quick Reckoner - a Microsoft Excel spreadsheet
available from www.mmv.vic.gov.au. Simply type in your own data and it will self-calculate. You can
reuse the spreadsheet to redo the Business Case exercise, to assess any other E-commerce ideas you
have or to evaluate actual results on an annual basis.
• eNotes: contains information to support you through the action planning process
• Case Studies: contain information on e-commerce and eBusiness technology implementations, the
benefits, costs, management insights and results as well as a return on investment. Further information is
available at www.mmv.vic.gov.au/casestudies
We encourage you to seek professional advice in completing any business case, whether they are
preliminary or financial. Use the references in the eNote: eBusiness Assistance or contact Certified Practising
Accountants (CPA Australia) to find your local CPA representative, online at www.cpaaustralia.com.au or call
(03) 9606 9606. Professionals can advise you on cost-benefit analysis, amortization and lease versus
purchase options.
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1. Project Outline Assessment
What is your E-Commerce or eBusiness idea?
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2. Basic Benefit Assessment (Strengths and Weaknesses)
What overall benefits would you expect from investing in E-Commerce or eBusiness?
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Questions to consider:
• How will e-commerce and eBusiness develop the business?
o New customers or exports
• Marketing benefits?
o Information available on website means sales staff can concentrate on selling
o Cheaper ways of marketing to more potential customers
o Updated product and price lists
• Other benefits?
o Better use of staff and their skills
o Time saved when using email and Internet rather than other means to do business
o Time saved when not traveling to client sites
• Any downsides?
o It’ll take too much of my time
o I’m worried about the security of information on my computers
o Will I be able to service my customers just as well as I do now?
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Opportunity Assessment
How will this project help the business to achieve its aims and develop further?
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Questions to consider:
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Threats and Competitor Assessment
Assess the threats from undertaking this project and how you will overcome them?
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Questions to consider:
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3. Financial Assessment
The following financial tables are for written completion during the workshop. During the workshop, you may
wish to complete the shaded boxes:
Individual costs
Totals
The Quick Reckoner Microsoft Excel version of these spreadsheets is available for you to work through
outside of this workshop.
Software:
(1) ……..
(2) ……..
Telecommunications ……..
(e.g. new dedicated phone line / ISDN/ADSL Line)
Website
Domain name ……..
Office Expenses
Furniture etc. ……..
Website:
- hosting by ISP ……..
- site maintenance & updates:
by staff ……..
by external resources ……..
- other ……..
Computers and software:
- maintenance ……..
- software licenses & upgrades ……..
- training ……..
- administration ……..
- other ……..
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4. Overall Assessment
Consider which box fits you!
Workshop Notes:
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Index of where to find more information
Victorian Government
VictoriaOnline
VictoriaOnline is the entry point to online services provided by the Victorian State and Local Governments,
along with Federal Government.
www.vic.gov.au
Privacy Victoria
Privacy Victoria is the key body in a system regulating the way Victorian government agencies and local
councils collect and handle personal information.
www.privacy.vic.gov.au
Federal Government
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Industry Bodies
Internet Industry Association (IIA)
Australia’s national Internet Industry Association
www.iia.net.au
Research Agencies
BitPipe
A complete guide to the latest eBusiness white papers, product literature, webcasts and case studies
http://www.bitpipe.com
eMarketer
Global supplier of e-commerce and eBusiness statistics
www.emarketer.com
Forester Research
US based research agency specializing in the Internet and Information Technology
www.forrester.com
Sensis
Australian supplier of eCommerce and eBusiness reports
http://about.sensis.com.au
News Agencies
eCom-Adviser
An online advisory tool developed to help small and medium size businesses (SMEs) move quickly into the
connected world of e-business
www.ecom-adviser.com.au
E-Commerce Times
Daily information and special reports on small business and eBusiness trends
www.ecommercetimes.com
ClickZ today
News, information and articles on B2B issues, e-commerce and marketing
www.clickz.com
Going Digital
This website features a range of case studies from agriculture to building, retail and transport.
www.goingdigital.com.au
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Tradegate ECA
Helps to facilitate implementation of e-commerce via agreed national standards and strategies
www.tradegate.org.au
http://www.google.com
http://www.sensis.com.au
http://www.goeureka.com.au
http://search.ninemsn.com.au
http://au.altavista.com
http://www.looksmart.com.au
http://www.yahoo.com.au
Disclaimer
These materials are provided for general assistance and information only. Neither APT Strategies Pty. Ltd nor the State of Victoria makes
any representations or warranties (express or implied) as to the accuracy or currency of the information contained in the materials nor
endorses any company or organisation or other web-sites or materials referred to. The State of Victoria does not accept any liability for
any reliance placed on this material, including any liability in negligence for relying on any information in these materials or any products,
services or information which may be provided by the companies and organisations referred to. Copyright State of Victoria 2004.
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