Page 85 - Introduction to Electronic Commerce and Social Commerce

References 63

puterized and fairly efficient, the approval process was not. The system links the multiple partners in the trade by cre-
Overall, the cargo clearance took over 15 days. ating a single point of transaction for all the standard docu-
ments involved.

The Solution
The Results
Originally, Customs had been using ASYCUDA++ (a legacy
computerized system designed by the United Nations The system is an efficient platform for the B2B customs-
Conference on Trade and Development). This system helped related transactions. It reduced the cargo clearance time from
with the submission, but the overall process was still slow more than 15 days to less than 5 days for sea shipments,
due to lack of integration of all participants’ subsystems. The which resulted in increased trade volume. In addition, cus-
port had difficulties competing with other ports in the area toms revenue more than doubled in 5 years (accounting for
that offered faster and more efficient customs management around half of Madagascar’s total income). Other recorded
systems. Therefore, the Medagasy Community Network benefits include elimination of unnecessary bureaucracy and
Services (“GasyNet”) saw the need to create a single online cost reduction due to paperless processes.
platform to connect the entities in the trade community. They Finally, Madagascar’s “Trading Across Borders” indica-
relied on a new system, which is an integration of TradeNet, tor improved from 143rd to 109th place, and their Logistics
an electronic data exchange, and ASYCUDA++. Performance Index ranking improved from 120th to 84th.
Sources: Based on Fjeldsted (2009), CrimsonLogic
What Is TradeNet? (2014), and Singapore Customs (2014).

TradeNet is an electronic data interchange (EDI) system Questions
(see Online Tutorial T2) developed in Singapore in 1989. 1. Describe the role of GasyNet in the process.
It is now administered, operated, and maintained by 2. Describe the contribution of TradeNet.
CrimsonLogic of Singapore. TradeNet, which initially oper- 3. What is the role of EDI in this system?
ated only in Singapore, is used today in several ports around 4. The TradeNet system is a typical B2B platform. Explain
the world, including Madagascar. The current system also why.
includes Windows-based and Web-based portions. Using the 5. Relate the content of this chapter to the case.
TradeNet-based system the trading community can submit
electronically all the forms needed by the Customs adminis-
tration. The system then routes the applications for process- ONLINE FILES
ing. Approved permits are then returned electronically to the
senders via ASYCUDA++. The process starts before ships Available at ecommerce-introduction-textbook.com
even enter the port. For an overview of TradeNet, see the
United Nations Economic Commission for Europe (unece. W2.1 Social Software Tools: From Blogs to Wikis to Twitter
org/energy.html). W2.2 Examples of Digital Products
W2.3 Application Case: eBay: The World’s Largest Auction
The Integrated System Site
W2.4 Application Case: Social Media at Eastern Mountain
In order to improve the flow of information and provide an Sports
efficient trade environment, the TradeNet system was inte-
grated with ASYCUDA++. The importers input their cus-
toms declarations data into GasyNet, which in turn transmits
the data to TradeNet, which enables all involved partners to REFERENCES
share data and transmit results. The results that are returned
to TradeNet are transferred to GasyNet and then to the 1stwebdesigner. “A Brief Introduction to Web 3.0.” August 14, 2015.
importers. To use TradeNet, users need to buy special soft- 1stwebdesigner.com/web-3-introduction (accessed March 2016).
Ahmed, M. “One in Seven People on Earth Use WhatsApp Each
ware from TradeNet Frontend Solution. The software enables Month.” Business ETC, February 2, 2016. bidnessetc.com/authors/
data entry by the users (e.g., the customs declarations) from mohid-ahmed (accessed March 2016).
PC’s or mobile devices. The system provides permit status Aukstakalnis, S. Practical Augmented Reality: A Guide to the
Technologies, Applications and Human Factors for AR and VR
information, company billing inquiries, ability to retrieve
(Usability). Boston, MA: Addison Wesley Professional, 2016.
lost permits, acknowledgement notification, an audit trail, Bent, K. “Mobility Revolution: 8 Shocking Stats from Cisco’s 2014 Mobile
permit listings, and more. Traffic Forecast.” February 20, 2014. crn.com/slide-shows/mobility/