An Investigation Into Challenges to Implementation of Broadcast in Electronic Commerce
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AN INVESTIGATION INTO CHALLENGES TO IMPLEMENTATION OF BROADCAST IN ELECTRONIC COMMERCE STRATEGY IN SOUTH AFRICA Submitted by Preethma Govender (Student Number: 200278331) in partial fulfiment of the requirements for the degree of MASTERS IN BUSINESS ADMINISTRATION (MBA) in the THE GRADUATE SCHOOL OF BUSINESS University ofNatal January 2003 ABSTRACT BRIDGE THE DIGITAL DIVIDE Broadcast, infrastructure and services play an essential role in both the modernization and social development of a nation. They have become indispensable to enabling countries to compete on equitable terms in an international community, which is now governed by interdependence and by the imperatives of a global economy. They are therefore critical to the achievement ofAfrica's recovery. In Africa, the broadcast arena or region offer a diverse range of business opportunities and tremendous scope for expanding both basic and advanced telecommunication servIces. This unique event will be the perfect meeting point for key players from industry and governments of the region. It will be a real opportunity for us to help bridge the Digital Divide and to bring modern communications services within reach of all of Africa's or sub-Saharan Africa or South Africa. The digital divide refers to the unequal distribution of access to information technology resources within or between countries. The digital divide is exacerbated by among other factors, income level, employment inequity, disparities in infrastructure development, racial discrimination, social status, gender inequalities lack of access to information , geographic location, an political influence . The divide creates an environment where disadvantaged groups are unable to contribute to and benefit from the information age and global communities created by the Internet in Sub-Saharan Africa ,efforts to bridge the digital divide mistakenly put great emphasis on 11 the digital imbalance between the rich North and the poor South, and often do not consider the gaps within individual countries. This narrow perception alienates the indigenous knowledge component from efforts to bridge the divide. (Scecsal 2002 The need to extend access to services to all South Africans, in order to integrate our country into the world economy, South Africa has made dramatic improvements in the development of a modem communication infrastructure previously denied to the majority. This study will provide the ideal research opportunity to investigate and appraise new products and services and also to explore the possibilities of acquiring the very latest in broadcast technology. This will be the ultimate networking opportunity, which may give us all a clearer vision of the future. Together, let us add strength and speed to Africa's efforts to Bridge the Digital Divide. 111 PREFACE The research described in this thesis or dissertation was submitted in partial fulfillment of the degree of) in the Graduate School of Business, Department of Management Studies, University of Natal during 2000, 2001 and 2002 as part of a course -work Masters Business Administration Degree. SUPERVISOR: Advocate Lee Gibson ofthe University ofNatal, Durban DATE: 5 October 2002 IV DECLARATION I, PREETHMA GOVENDER, born (ROOPCHUND), declare that this research dissertation is my original work, which has not been submitted to any other university. NAME: SIGNATURE: / DATE: 3 /01/ 0 3 Tl v ACKNOWLEDGEMENTS This research report would not have been accomplished without the motivation, assistance and co-operation of a number of people. I would like to record my sincere appreciation to: Advocate Lee Gibson (University ofNatal) - my patient and understanding lecturer and supervisor for his support and expert academic guidance and for sharing his many years ofresearch expertise with me. Working and studying under tutelage Advocate Lee Gibson was a real pleasure. Swami Premananda Puri (Sri Ramakrishna Dham ofJohannesburg) - my spiritual guru or teacher who has given me the strength and guidance to continue with my studies. Swami Saradananda (Ramakrishna Centre of South Africa) for the motivation to pursue my postgraduate studies and the inspiration he has given me to continue with my Master's Degree. My children Paksini and Nerisha and my husband, Inderan Govender, who spent many hours on their own whilst I did the research, and attended lectures over the past two and halfyears. Their patience, understanding and encouragement are deeply appreciated Professor Doug Engelbrecht (University ofNatal) for his assistance from the inception of the Masters programme and for motivating me with my studies. The other academic staff (ProfKanti Bhowan, EIsa Thompson, Carol Hoskens, Abdul Ghani, Chris Maistry, Adriaan Saville, Bob Blair, Peter Olivier, Nick Wood, Jimmy Jefferies, Lou Epstein, Ma1colm Haiden, C Cohen, Bill Harris, Colin of CB sol thee-marketing lecturer. My fellow student colleagues Metz Nip, Catherine Nderi, Rornita Chetty, and Tanya Chetty who helped me conduct the research and who spent many hours with me analysing and debating the course work and the research results extensively. VI My very good friend and confidant Mrs. Umeshani Reddy, Natal University Librarian, who assisted with searches, information regarding the text on broadcasting and e commerce, radio, television and information technology. Proofreading the text and the correction of language, spelling and also all the moral support she extended to me during my recent illness and my severe spinal conditions. Julius Mdlaka, University Library; Supervisor. Natal University-Durban for assisting me with all the study materials and his guidance and support on a regular basis. Mrs. Barbie Parker Wicks for arranging a comfortable zone for writing my exams and also assigning a scribe for the exams, due to severe spinal conditions, Roshni, Ishara, Kershwin and alsog Sharona Ramdin who informed me about the rules and regulations of special examination procedures and other conditions regarding writing my examinations. vu TABLE OF CONTENTS ABSTRACT ii PREFACE iv DECLARATION v ACKNOWLEDGEMENTS vi TABLE OF CONTENTS vii LIST OF TABLES xii LIST OF FIGURES xii EXECUTIVE SUMMARY xiii CHAPTER ONE 1.1 INTRODUCTION 1 1.1.1 Digital Divide 1 1.1.2 The Main Priorities ofthe Study undertaken by Doe. 3 1.1.3 Some ofthe Challenges facing DoC. 5 1.1.4 Some ofthe Functions ofthe DoC. 6 1.2 PUBLIC INTERNET TERMINALS 6 1.2.1 Objectives ofPIT. 7 1.3 MOTIVATION FOR CHOICE OF STUDY 8 1.4 AIM AND OBJECTIVES OF STUDY 11 1.4.1 Aim of Study 11 1.4.2 Objectives ofthe Study 11 1.5 STRUCTURE OF THE THESIS 12 Vlll CHAPTER TWO LITERATURE REVIEW 2.1 BROAD VIEW & DEFINITION OF E-COMMERCE 13 2.1.1 E-Commerce 13 2.1.1.1 Definition ofE-Commerce 13 2.1.1.2 Objectives ofE-Commerce 13 2.1.1.3 Global Access to Information Technology 14 2.1.2 Strategy 14 2.1.2.1 Introduction 14 1.1.2.1 The Heritage ofStrategy Concepts 15 2.1.3 The Emerging Competitive Landscape 16 2.1.4 Structure ofImpact 18 2.1.5 Speed - a critical element 20 2.1.6 The Introduction of new Digital System - "DALET" 24 2.1.7 The New View of Strategy 26 2.2 THE SPECIFIC INFORMATION ON DIGITAL BROADCAST 28 2.2.1 The New Digital Outside Broadcast Unit 28 2.2.2 TheECT Act 29 2.2.3 The Cryptography & Domain Register 31 2.2.4 E-Government will Accelerate Service Delivery 33 2.2.5 SABC & Community Radio Stations 35 2.2.6 Role of the Post Office 36 2.3 GOVERNMENT INTERVENTIONS IN E-STRATEGY 37 IX 2.4 MODERN ECONOMIES & KNOWLEDGE OF E-STRATEGY 42 2.5 INFORMATION & STRATEGY 44 2.6 THE VIRTUAL CHAIN 51 2.7 REALITIES OF E-COMMERCE 60 CHAPTER THREE RESEARCH METHODOLOGY 3.1 Introduction 63 3.2 Research Methods 63 3.2.1 Population 65 3.2.2 Sample 65 3.2.3 Convenience sampling 66 3.2.4 Characteristics ofthe Sample 66 3.2.5 Data Gathering Techniques 66 3.2.6 Data Processing and Analysis 67 3.3 Methodological Problems 68 3.3.1 Sample Size 68 3.3.2 Generalisability ofFindings 68 3.3.3 Data Processing and Analysis 69 3.3.4 Convenience sampling 69 3.4 Conclusion 70 CHAPTER FOUR FINDINGS 4.1 INTRODUCTION 71 4.2 THEME ANALYSIS 71 4.2.1 Some ofthe Responses ofJournalists 72 x CHAPTER FIVE CONCLUSION 74 REFERNCES A. INTERNET SITES 79 B. REFERENCE BOOKS 81 C. PERIODICALS, NEWSPAPERS & MAGAZINES 84 INTERVIEW QUSETIONAIRE 88 APPENDICES 90 Xl LIST OF TABLES Table 1 Respondents (Journalists) by designation. 70 LIST OF FIGURES Figure 1 : The New View of Strategy 27 Figure 2 : The Information Age 45 Figure 3 : Business Convergence 51 Figure 4 : The New Value Chain 54 Figure 5 : Every Business in an Information Business 54 Figure 6 : Information Strategy Framework 57 Figure 7 : From Data to Knowledge 59 XlI EXECUTIVE SUMMARY It is a known fact that as technology becomes an increasingly ubiquitous aspect of life throughout the world, the digital divide between the northern 'haves' and the southern 'have-nots' is a growing concern. The digital divide is caused by several factors that interact to bring about an unequal distribution of access to information technology resources by populations or communities, either within a country or between countries (the digital divide is often presumed to exist between the developed and the developing countries). In sub-Saharan Africa, efforts to bridge the digital divide are often hampered by the great emphasis that is placed on the digital imbalances between the 'poor' southern and 'rich' northern countries and on the technology gaps* within individual countries. Due to this factor, indigenous information systems that could form an important component of the attempt to address the digital divide are often left out or only marginally addressed. Consequently and frequently, efforts to bridge this divide do not bear fruit. This dissertation discusses the ramifications of bridging the digital divide in order to revitalize indigenous information systems and create a preserve for them in sub Saharan Africa.