Info-Guide – eBusiness

7The purpose of this Info-Guide is to provide you with information about the eBusiness-related programs and resources made available to you by the federal and provincial governments, the private sector, and certain non-governmental organisations.

While most of your questions will be answered in this document, it is not intended to be exhaustive. In addition, we suggest you consult the other Info-Guides listed at the end of this document.

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Acknowledgements
This Info-Guide was developed by Info entrepreneurs in collaboration with the Canada Business service centre of Ontario and the Canada Business National Secretariat which kindly authorised the reproduction and integration of excerpts from their documentation.

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TABLE OF CONTENTS

1. Introduction
2. Privacy and security 
3. Law, regulation and taxation
4. Financing
5. Training/Information
6. Tools and other resources

1. Introduction

The term eBusiness means conducting business on the Internet, including buying and selling products and services, providing customer service and collaborating with business partners. This document focuses on buying and selling products and services on the Internet (also known as electronic business, ebiz, e-commerce, business-to-business or B2B, business-to-customer or B2C). For more general information on eBusiness and the use of the Internet, please consult our document  Doing Business on the Internet

What is eBusiness?
eBusiness is any commercial activity conducted over networks linking electronic devices (mainly computers) including commercial transactions conducted by Internet, telephone and fax, electronic banking and payment systems, trade in digitised goods and services, and electronic purchasing and restocking systems.

What is eBusiness used for?
eBusiness is not limited to certain types of businesses or just technology-related products and services. Companies in every field are doing business online. Networking through eBusiness can be applied to any facet of a company's operations, including marketing and sales; purchasing and logistics; production; design and engineering. The most effective use of eBusiness is when several of these functions are combined: information flows from sales to purchasing, to production.

eBusiness can be used to:

• Communicate: E-mail and Internet access.
  
• Promote: Businesses are using Web pages to advise clients and potential clients about their business and its value. Web pages keep clients informed about products, services and developments, and they provide the opportunity to answer client questions. They may also   use their Web sites to solicit market research information from clients or guests who visit their site. Other uses include:
  • Sales – to sell products, seven days a week, 24 hours per day throughout the globe;
  • product awareness – online marketing and advertising;
  • customer service – customer support and communication;
  • economy – to eliminate some costs of paper transactions and mailing;
  • effectiveness – due to the speed of communication;
  • it offers the opportunity to work out of the home;
  • to compete globally without setting up offices in other countries;
  • small companies can compete against much larger companies as no one can tell how large or young your company is based on their Internet presence;
  • to find information, conduct competitive intelligence, or network with other business owners.
    
• Link:
  • Internally – Improve communications within your company using an Intranet.
  • Externally – Improve communications with suppliers, customers and partners and integrate your business processes using an Extranet.
    
• Creating new business models:  Sharing resources with new partners to create virtual global enterprises. The Net has the potential to act as a central nervous system coordinating the activities of new types of businesses.

If I don't want to sell electronically, why use eBusiness? What are the benefits?
You can:

• improve customer service by providing new avenues for promotion and distribution, by responding more quickly to orders, and by offering more responsive after-sales service.
• cut costs and save time by improving the quality of supply chain management, by integrating back-end production and logistics with front-end marketing and sales, and by letting the computer and software do most of the work in controlling inventory.
• cut costs and save time by improving internal functions, by cutting down on meetings, by sharing information, by eliminating endless trails of paper and by assuring that internal communications are precise and understood.

What is the entry price to get connected to the Internet?
At first, the costs to get on the Internet can seem intimidating, but compared with what you can accomplish in the areas of marketing and retailing on the Internet versus in the traditional commercial world, it is a very cost effective solution. Also, the potential Internet market is exponentially larger than any local market. First you will need a modem equipped computer ($1000-$5000) and access to the Internet through an Internet Service Provider ($30-$50 a month). These costs are estimates only, since costs can vary significantly, as computer prices continue to come down and as new access technologies become accessible and affordable (i.e. cable access).

If you want to set up a Web site for your business, consider hiring a professional to design it for you. The costs can vary significantly whether you want a simple Web site or a very complex Web site. Once you have a site you will want to register the domain (e.g. your-business-name.com), which may cost as much as $140, depending on your choice of the .com or .ca domain extensions, for two years. Registering your domain on the Internet is like registering your company name. There are also maintenance costs to consider to keep the site up to date and running smoothly, which can cost between $20 and $100 a month, depending on the scope of the site.

What are the requirements for registering a .ca or prov.ca?
Registrants who wish to register a .ca or prov.ca must fulfill the Canadian Internet Registration Authority‘s (CIRA) Canadian presence requirements. For more information, call 1-877-860-1411 or visit http://www.cira.ca/en/home.html

Information on registering a domain can also be obtained from your Internet Service Provider (ISP).

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Other resources:

Internet Corporation for Assigned Names and Numbers
The ICANN is responsible for coordinating the Domain Name System to make sure that all Internet names and domain numbers are unique as well as ensuring that all internet users find valid addresses. http://www.icann.org/tr/english.html  

InterNIC
The InterNIC Web site was created to provide current public information on Internet domain registration services. http://www.internic.net

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2. Privacy and security

How can I secure my Web site and transactions on the Internet?
The type of security you will need for your Web site depends on what kind of use it will have. Once you determine use, you can identify the types of threats you will need to protect yourself against. For example, if you will be doing online sales using credit cards, you will need to protect the credit card information from being intercepted, both during the transaction and when it is stored on the server. Similarly, if you have confidential customer information, you will also want to ensure that this information is not accessible. It is useful to note, however, that in many instances, doing online credit card sales can be more secure than in a traditional environment, where much of the credit card fraud is caused by the people involved in the transaction, or by the theft of receipts.

There are a number of security options, from firewall software, to secure servers, to Secure Sockets Layer (SSL), Secure Electronic Transaction (SET) and public key infrastructure. Your ISP and/or Web developer should be able to provide you with more information on these solutions and whether they are right for your site. The most effective and efficient solution for small to mid-size companies may be to use a commerce server provider (CSP). CSPs lease their services to individual retailers for a fraction of the cost of buying a complete e-commerce solution.

Is the information I put on this system safe? Can people steal my confidential company information or gain access to my credit card if I use it over the Internet?
Some businesses are waiting to go online until a secure electronic environment is assured. Solutions to privacy and security exist today. Software can be used to encrypt transactions and block unwanted messages. Your ISP and/or Web developer should be able to provide you with information on various software packages, based on your security needs.

Will my private information be at risk?
You can install software to help protect the privacy of your business and your clients. In addition, the federal government is acting to protect personal information. The Personal Information Protection and Electronic Documents Act establishes principles governing the collection, use and disclosure of personal information. In particular, it provides that businesses must obtain the consent of consumers to use their personal information and gives consumers access to their personal information and to simple and effective redress procedures. For an overview of the Personal Information Protection and Electronic Documents Act, consult our document Protection of Personal Information - Your Responsibilities

Compliance with the legislation is overseen by the Privacy Commissioner of Canada. The Commissioner's role includes receiving complaints concerning contravention of the principles, carrying out investigations and audits, and dispute resolution. Unresolved disputes regarding certain matters can be taken to the Federal Court for final resolution. The Commissioner also has extensive powers to do research and public education which is vital if consumers are to learn how to protect their privacy. The Personal Information Protection and Electronic Documents Act guarantees the right to privacy for Canadians. For more information, call 1-800-282-1376.

As of January 1, 2004, the Personal Information Protection and Electronic Documents Act covers the collection, use or disclosure of personal information in the course of all commercial activities in Canada, except in provinces which have enacted legislation that is deemed to be substantially similar to the federal law.

The guide Your Privacy Responsibilities - Guide for Businesses and Organisations to Canada's Personal Information Protection and Electronic Documents Act helps businesses understand and meet their new obligations under Part 1 of the Act.

On the June 21, 2001, the Government of Québec adopted a law entitled: Loi concernant le cadre juridique des technologies de l'information. This law encompasses the totality of electronic exchanges, favouring the protection of consumers, respect for privacy and protection of personal and private information. (In French only)

Online E-security and Privacy Guide
Guide designed to help SMEs understand e-security and privacy risks and what they can do to manage them. Recognising that SMEs are at different stages of eBusiness development, the product has been organised so that you can determine what you should be doing on the security and privacy front in relation to your level of eBusiness activity. http://www.privacyguide.cebi.ca/default_e.asp

Businesses must ensure that transactions conducted on their sites are secure. A wide range of technological products are available to protect Web sites from unwanted intruders. The guide Your Internet business: Earning consumer trust gives details on what Internet merchants should do to provide their customers with reasonable protection over their electronic transactions. http://www.ic.gc.ca/epic/site/ic1.nsf/en/h_00148e.html

Electronic Authentication
Discusses the use of cryptographic technologies to establish user's identity
http://e-com.ic.gc.ca/epic/internet/inecic-ceac.nsf/en/h_gv00090e.html

3. Law, regulation and taxation

In general, all existing laws that apply to traditional commerce apply equally in an electronic environment (for example, laws governing business incorporation, business name registration, taxation, consumer protection, deceptive advertising, importing/exporting, product safety, product standards, criminal code, inter-provincial trade treaties, intellectual property and liability, etc.). Companies must comply with the law of any jurisdiction where it is deemed to be "carrying on business."

Privacy and Security

Personal Information Protection and Electronic Documents Act
The Personal Information Protection and Electronic Documents (PIPED) Act sets out ground rules for how private sector organisations may collect, use or disclose personal information in the course of commercial activities. As of January 1, 2002, the personal health information collected, used or disclosed by these organisations is also covered. For more information, call 1-800-282-1376 or visit http://www.privcom.gc.ca/information/guide_e.asp

GS1 Canada
GS1 Canada is a not-for-profit, developed to promote and maintain global standards for the identification of goods, services, locations and communications related e-commerce. GS1 Canada is the only authorised source for globally unique company prefixes in Canada. For more information, consult our document  Bar Codes

Export rules

Do I need an export license if I sell things over the Internet?
The application of export rules is the same in the electronic world. If you currently need an export permit to sell your product overseas, you will need one to sell it over the Internet to people in foreign countries.

The issuance of export permits is administered by the Export and Import Controls Bureau (EICB) of Foreign Affairs and International Trade Canada. The EICB provides assistance to exporters in determining if export permits are required. For more information, consult our document Export Permits

Taxation

Do I need to collect GST/HST and PST if I sell things over the Internet to persons outside of my province or in another country?
In general, all existing tax rules apply equally in an electronic environment and no new taxes have been created specifically for electronic commerce. For specific tax-related questions, please consult our document  Goods and Services Tax (GST) and Harmonized Sales Tax (HST)

Consumer protection

Marketing practices/advertising
Under the Competition Act, it is a criminal offense to engage in certain kinds of misleading advertising and deceptive marketing practices. The Competition Act defines which marketing practices are illegal in Canada. The Act is enforced by the Competition Bureau and is applicable in an electronic environment. Consumers are now able to complain about misleading cross-border electronic commerce at econsumer.gov
For more information, consult our document  Competition Act - Misleading Advertising and Deceptive Marketing Practices

Remote-parties contracts – Office de la protection du consommateur
In Québec, purchases made over the Internet are subject to the Consumer Protection Act, and are considered to be remote-parties contracts. These are contracts concluded between a merchant and a consumer who are not in each other’s presence.  http://www.formulaire.gouv.qc.ca/cgi/affiche_doc.cgi?dossier=3403&table=0   (In French only)

The Internet: making an on-line purchase – Office de la protection du consommateur
Some business sites aim primarily to provide information. Others allow visitors to place orders and to pay off-line. But today, many more advanced sites make it possible to pay on-line. This is a useful function when immediate delivery is desired. There is a risk, however, as the purchase price is debited with no guarantee that the contract will be carried out. http://www.consommation.info.gouv.qc.ca/fr/fiche.asp?sujet=169 (In French only)

Canadian Code of Practice for Consumer Protection in Electronic Commerce
The Canadian Code of Practice for Consumer Protection in Electronic Commerce was endorsed by federal, provincial and territorial ministers responsible for consumer affairs in January 2004. The Code is intended to establish benchmarks for good business practices for merchants conducting commercial activities with consumers online. The Code covers information provision, language, online privacy, etc. http://www.cmcweb.ca/epic/internet/incmc-cmc.nsf/en/fe00064e.html

Launch of the E-Consumers' Guide
The Government of Québec invites all Internet users to consult the E-Consumers' Guide, which provides a comprehensive look at the various factors to consider when making purchases over the Internet. http://www.msg.gouv.qc.ca/fr/documentation/societe.asp#guide (In French only)

4. Financing

The following financing programs are specific to eBusiness. You will find general financing programs in our document Financing a Business

Financing for e-business – Business Development Bank of Canada
The Business Development Bank of Canada (BDC) offers possibilities of financing for eBusiness. Whatever your development stage – from initial feasibility study to implementing and integrating a fully transactional site – BDC's specialised financing may be the solution for your eBusiness needs.
http://www.bdc.ca/fr/my_project/Projects/financing/fs_ebusiness_general.htm?cookie%5Ftest=1

Community Access Program – Industry Canada
This program provides support for public computer access to the information highway via the Internet at the local community level. The overall objective is to provide all Canadians with affordable, convenient access to the global knowledge-based economy and the opportunity to use its technologies. For more information, consult our document  Community Access Program

Francommunautés virtuelles
The Government of Canada will be allocating funds to Francophone and Acadian non-profit organisations in this country for innovative French-language projects to develop French-language content, applications and services on the Internet. An organisation may receive financial contributions representing 50 percent of total allowable costs, to a maximum of $75 000 for a local or regional project and $250 000 for a national project. For more information, call 1-800-575-9200 or visit http://francommunautes.ic.gc.ca/index_e.asp

Regions

Fondel Drummond
The purpose of the FONDEL “e-business fund” is to enable businesses in the Drummond MRC to fund projects aiming to incorporate e-business into their activities. The “e-business services” help you to analyse your business situation and define your objectives, then support you in acquiring the strategic tools needed to conduct e-business. For more information, consult our document Fondel Drummond

5. Training / information

Online Small Business Workshop
The Online Small Business Workshop (OSBW) is a Web-based workshop designed to provide you with techniques for developing your business idea, starting a new venture and improving your existing small business. It is organised into six sessions, including one on the basics of setting up an ebusiness. http://www.cbsc.org/osbw/ 

E‑Commerce Training – Ministère du Développement économique, de l'Innovation et de l'Exportation (MDEIE)
E-Commerce training offered by the MDEIE is geared to better inform businesses on this more effective way of doing business, both in Canada and abroad. For more information, contact the MDEIE at 514 499-2550, 418 691-5950 or 1-866-680-1884, or visit http://www.mdeie.gouv.qc.ca/page/web/po
rtail/entreprises/nav/Formation.html (In French only)

Centre ePoly (École Polytechnique de Montréal’s centre of expertise in electronic commerce)
Centre ePoly, in collaboration with its public and private-sector partners, contributes to the development, adoption and use of leading-edge e-commerce solutions. Its main activities are research and development, training and competitive monitoring. For more information, call 514 340-5860 or visit http://www.epoly.polymtl.ca 

Student Connections
Industry Canada's Student Connections (SC) provides Canadian small and medium entreprises with short, practical e-commerce and Internet training sessions. SC services are delivered by highly qualified post secondary students hired to provide Canadian businesses with customised training on how they can use today's technologies to their business advantage. Student Connections will introduce Canadian businesses to the power of the Internet as a business tool. The  E-business Basic Training

BDC Consulting
Become an effective eBusiness with the support of an experienced BDC advisor. Evaluate eBusiness relevancy, readiness, potential and implementation strategies. Re-align your production, supply chain, processes and customer relations with Internet technology. The following e-business diagnostic tools are available:

• E-business Relevancy Diagnostic – Diagnostic to help you measure the relevancy of eBusiness for your firm.
• E-business Readiness Diagnostic – Diagnostic to help you measure the your firm's readiness regarding eBusiness planning and implementation.

ebiz.enable
This is an eBusiness portal designed specifically to guide commercial organisations through the issues and options encountered in implementing eBusiness strategies. ebiz.enable is a comprehensive online resource that allows you to explore the questions, answers and solutions relevant to your company and its success in the global online environment. The Web site offers eBusiness diagnostic tools, research and statistics, case studies and success stories, and information on topics such as marketing and technology. For more information, consult our document ebiz.enable or visit http://www.ic.gc.ca/epic/site/ee-ef.nsf/en/home 

Canadian e-Business Initiative
The Canadian e-Business Initiative (CeBI) is a voluntary, private sector-led partnership that aims to further Canada's eBusiness success by focusing on productivity, leadership and innovation in small and medium enterprises. For more information, visit http://www.icce.ca/Default_e.asp

E-Commerce – Exploring Your Options
This fact sheet has been created by the Canada Business Service Centres and is aimed at on line merchants.  E-Commerce - Exploring Your Options

Strategis – Using Electronic Commerce
http://www.ic.gc.ca/epic/site/ic1.nsf/en/h_00148e.html

Retail Trade – Electronic Business
A site to help Canadian retailers better understand the development and evolution of online retailing and electronic commerce. http://www.ic.gc.ca/epic/site/retra-comde.nsf/en/h_qn00005e.html

Digital Economy and Information Society – Organisation for Economic Co-operation and   Development
A site providing documentation and background information on electronic commerce initiatives in the OECD countries. http://www.oecd.org/topic/0,2686,en_26
49_37441_1_1_1_1_37441,00.html

eBusiness Service Centres
Three members of the Canada Business network are involved in partnerships that have established eBusiness service centres. These centres have a special focus on eBusiness and provide SMEs with services and resources, such as information guides and seminars. The centres are:

Alberta E-Future Centre
eBusiness Connection (British Columbia)
Manitoba E-Future Centre

6. Tools and other resources

Guide pratique de conception et d'évaluation ergonomique de sites Web
This guide, published by the Centre de recherche informatique de Montréal (CRIM), is a practical tool for specialists and non-specialists alike who want to use ergonomic principles to design and evaluate their Web site. http://www.crim.ca/files/documents/services/rd/GuideErgonomique.PDF (In French only)

Electronic Business Models: A Conceptual Framework for Small and Medium-Sized Canadian Enterprises
This reference work focuses on eBusiness practices and their strategic value. It is designed for all Canadian SME executives who want to gain a better understanding of the eBusiness model structure and some insight into its value-adding potential. http://www.cefrio.qc.ca/english/pdf/Strategis _Eng.pdf  

Canadian Bankers Association
Accepting payment by credit card usually requires a business bank (merchant) account with financial institutions that deal with each specific card. See your financial institution or the Canadian Bankers Association Web site for information on electronic commerce. http://www.cba.ca/fr/viewPub.asp?fl=6&sl=23&docid=38&pg=1

CEFRIO
CEFRIO, in partnership with its members, conducts research and strategic monitoring activities that cut across the various sectors of the Québec economy, including eBusiness. http://www.cefrio.qc.ca/english/projet.cfm

RBC Financial Group – Chair of E-Commerce
Its mission is to develop and disseminate knowledge and leading-edge expertise concerning everything related to the adoption and use of new technologies by Canadian consumers. Primarily focused on fundamental research, the Chair monitors and studies consumption phenomena as they are influenced, changed and hindered by new information technologies. http://www.net-question.com/chairerbc/

E-Commerce Place
It is a place custom-designed to meet the exacting needs of the information technology economy and to provide an optimal working environment for its people. For more information, call 514 807-1350 or visit www.cce-ecom.com (requires Flash )

Electronic Commerce Branch – Industry Canada
Electronic Commerce in Canada is the virtual focal point for information on Canada's Electronic Commerce Strategy, including the Canadian E-Business Opportunities Roundtable (e-Team Canada). The site includes a wide variety of information and links. For more information, call 1-800-328-6189 or visit http://e-com.ic.gc.ca/epic/site/ecic-ceac.nsf/en/home

Electronic Commerce Technology Suppliers
Section of Industry Canada's Canadian Company Capabilities Web site that lists suppliers of electronic commerce technology. http://www.ic.gc.ca/epic/internet/inict-tic.nsf/en/h_it06122e.html

MERX
MERX is an online service that advertises government contracting opportunities to potential bidders. http://www.merx.com/

Guide du commerce et des affaires électroniques Québeclic
This new tool has a lot of useful information for SMEs who wish to learn new ways of doing business. http://www.cefrio.qc.ca/projets/guide/guide_quebeclic.pdf (In French only)

E-Commerce in Service Industries
Strategis provides practical information on e-commerce in service industries, including associated benefits, company and industry profiles, statistics, and examples of utilising e-commerce. http://www.ic.gc.ca/epic/internet/inecom-come.nsf/en/Home

Internet Statistics – Statistics Canada
Statistics tables covering topics such as Internet usage, household Internet users characteristics and electronic commerce. http://www40.statcan.ca/l01/ind01/l3_2256_3817.htm?hili_none

In conclusion

We hope the information provided in this Info-Guide has been helpful to you. Many other interesting documents, tools and links may be found on our Web site.

If you need more information about business-related subjects, our agents are available to provide you with free information about federal, provincial, and municipal government programs, services, and regulations as well as some programs and services offered by the private sector.

We offer you a free library research service as well as access to data bases and Web sites of interest to business people. Our information specialists are at your disposal to answer your requests for strategic information.

Don’t hesitate to contact Info entrepreneurs at 514 496-4636 or Ressources Entreprises at 418 649-4636. In the regions, call 1-888-576-4444.

 

• Info-Guide - Aboriginal Entrepreneurs
• Info-Guide – Women Entrepreneurs
• Info-Guide – Cooperatives
• Info-Guide – Innovation / R&D;
• Info-Guide – Employment and Training
• Info-Guide – Permits and Licences Required for Certain Types of Businesses
• Info-Guide – Multimedia, Culture and Communications
• Info-Guide – Import
• Info-Guide – Not-for-Profit Organisation (NPO)
• Social Economy – Financing and Technical Resources
• Financing a Business
• Info-Guide – Export
• Info-Guide – Business Start-Up
• Info-Guide – Young Entrepreneurs

DISCLAIMER
Information contained in this document is of a general nature only and is not intended to constitute advice for any specific fact situation. Users concerned about the reliability of the information should consult directly with the source, or seek legal counsel.

Links Policy
Some of the hypertext links lead to non-federal government sites which are not subject to the Official Languages Act and the material is available in one language only.