USKO Explores Multi-Industry E-Commerce Opportunities

The e-commerce division of listed IT group, USKO, has announced its plans to expand into a variety of industries with a range of specialised electronic connectivity solutions. These offerings will be based on its existing pay-for-use e-commerce infrastructure to ensure cost-efficient electronic trading.

USKO`s services and solutions will be directed at enabling numerous companies, such as insurance, travel and financial organisations, to benefit from the burgeoning potential that e-commerce transacting has to offer, explains Wendy Strauss, marketing director of USKO`s e-commerce division. Industry-specific products have been developed by USKO to address the travel industry and educational institutions.

"USKO is building partnerships through joint ventures with industries that have regular high volume transactions, particularly the travel, health, financial and insurance industries," says Strauss. "These industries have immense potential for successful expansion into e-commerce territory. Companies with an existing client base can utilise USKO`s technology platform which will ensure end-to-end e-business solutions."

An example of a product which utilises USKO`s switch technology, is the group`s MediSwitch product, a pay-for-use application that links healthcare professionals to Medical Aids.

"Incorporating Electronic Data Interchange (EDI), MediSwitch ensures the rapid processing of medical aid claims and permits the interpretation, formatting and relay of data from one computer to another, allowing for prompt and economical interactions," she says. "Industries that are significantly transaction-orientated, such as the travel, healthcare and financial industries will reap the benefits of a move towards e-commerce, and USKO will provide the technology to accommodate a smooth, profitable transition."

She points out that internationally, E-Commerce has proved a highly feasible investment for several companies who have averaged billions of dollars worth of sales. "In fact, Forrester Research estimates that global business-to- business transactions will be valued at about $327 billion dollars by the year 2000."

"With its capacity to obliterate time and geographical boundaries and offer the consumer unparalleled variety of choice, e-commerce is being recognised by more and more companies as a resource to be harnessed and exploited," says Strauss.

She explains that on the local front, companies have displayed a reticence to invest in electronic commerce, expressing concern about looming Y2K difficulties. However, this trend is expected to change as an increasing number of large corporations begin to identify the logistic advantages of e-commerce. BMI-T research indicates that, by the year 2002, South Africa will be spending approximately R87 billion Rand on electronic transactions.

"E-commerce is a business initiative that is absolutely vital locally," Strauss continues. "It is imperative that the imbalance of the flow of information from large core providers to peripheral companies in various industries is addressed, to correct incompatible systems and prevent direct and instant communication between them. There is a considerable global market to be accessed and tremendous potential for South Africa to become a core player for the African continent and internationally."

According to Strauss, local companies have to be prepared to revise traditional business practices. "Business must be viewed holistically, in order to be successfully translated into an e-commerce environment and USKO is fully equipped to encourage this shift," she concludes.