Oct 25, 2002

  On September 30, 2002 (Mon.), “the ebXML Interoperability Test Common Specifications: Part 1”, the guidelines for verifying interoperability among the ebXML products from different vendors, was published. Based on the specifications, ECOM conducted and succeeded in the ebXML message service interoperability test for ebXML products from five vendors - namely, Fujitsu Limited, Hitachi Limited, NEC Corporation, Infoteria Corporation, and Nippon Telegraph and Telephone Corporation. ECOM has supplied feedback from the test results to OASIS, the international standardization organization for XML programming technology. Interoperability testing is also scheduled to be organized under the ebXML Asia Committee, which is promoting ebXML interoperability among Asian countries. The new release defines concrete procedures and methods for testing interoperability among ebXML products and test items that must be satisfied. Test based on the common specifications ensures ebXML product interoperability.
“ebXML Interoperability Test Common Specifications" can be downloaded from the ECOM website at <http://www.ecom.jp>

Lecture: Development of secret key management method described in the report of ECOM Authentication/Notary Working Group
Mr. Yutaka Yasukura, President, Global Friendship, Inc.*
The presentation highlighted basic technology in top-level secret key management described in the report by ECOM Authentication/Notary Working Group, along with necessary implementation environment, centering around the risk-management tool from Global Friendship named "e-Tally." “e-Tally” is a technology for secure management of electronic data, which is the greatest asset in the information society, preventing information leakage even when stolen, because information is broken up into meaningless data with Secure Sharing Scheme. (The tally corresponds to the “Key" in encryption technology and is therefore “encrypted data”.) In a centralized data management system (stratified and redundant type), which represents the existing social structure, information can be taken in its entirety causing huge damage with a single illegal act. In the future, a diversified information management system (horizontal distributed type), in which a single illegal act caused only limited damage, is expected to function as infrastructure in the information society. (*: Board member)

Lecture: The scenario for dissemination of electronic authentication and the issues involved
Mr. Masahiko Nakamura, Senior Consultant, Information & Communication Industry Consulting Departments, Nomura Research Institute, Inc.*
Based on the 2001 survey commissioned by ECOM, the structure of the electronic authentication market and the scenario of its growth, as well as the issues involved and measures to be taken for dissemination, were presented. The market scale in 2006 is projected to be worth 46.7 billion yen if civil servant certification, public-use personal identity authentication, and citizen identification card become widely used in local government services. Otherwise, market scale is estimated at 26.9 billion yen. The development of e-Government services is believed to determine growth of electronic authentication business. In the future, and electronic authentication is expected to spread in use with growth in the number of authentication transactions and the number of certificates issued. Moreover, new business models are likely to emerge, such as attribute certification and C2C certification (certification services for which mechanisms have not yet been developed), certificate (certification authority) rating (service unsuited for exhaustive and strict certification but highly convenient if thoroughness is not required) and certification agent (or proxy) (service to reduce troublesome work in utilizing electronic authentication). On the other hand, there are issues in business application such as “high cost of CA administration", “unknowns involved in coordination between private CAs and e-Government CAs", and “what to do with private individual certification for private sector applications”. For the growth of PKI, it is important to develop the legal framework for attribute certification, promote wider use in health care and education, and expand the range of application in mobile communication, etc. (*: Board member)

Lecture: Policy on the electronic signature and authentication and future issues in the area
Mr. Takuya Yamazaki, Deputy Director, Information Economy Division, Commerce and Information Policy Bureau, Ministry of Economy, Trade and Industry
The presentation began with a description of the role played by the e-Signature Law since enforcement in April 2001 and an outline of the e-signature and e-authentication policy and its future directions, including how to integrate electronic signature and authentication into government services as e-Government starts up in full scale in 2003. The Japanese government's e-signature and e-authentication policy covers: (1) development of B2B/C and B/C2G business foundation under the e-Signature Law; (2) best practices in e-Government and e-municipality (public PKI); and (3) market growth through international coordination. Although e-signature is required for all e-applications at present, making e-signature a replacement for the seal should eventually be abandoned, in view of the fact that there had been paper-based applications that did not require seal impressions in the past. The use of e-signature should be founded on appropriate awareness of risks involved in information on the side requiring e-signature (ability to determine whether or not the information requires a high level of confidentiality). Rather than promoting unbridled use of e-signatures, it is necessary to identify needs based on optimized risk awareness regarding information in each organization and to place priorities on areas with great potential (electronic application to e-Government and e-municipalities/Identrus/electronic medical records, etc.).
The homepage for Internet security at the Commerce and Information Policy Bureau of METI is at <http://www.meti.go.jp/policy/netsecurity/index.html>

ECOM participated in “the Business Show Tokyo 2002 (21-24 May 2002)” held at the Tokyo Big Sight in Koto-ku, Tokyo, and “the Business Wave 21 (26-28 June 2002)” at the Nagoya City Chusho Kigyo Shinko Kaikan in Chikusa-ku, Nagoya. At the ECOM booths in each venue, an EC awareness survey was conducted on the visitors. The findings are shown below.

(1) Experience in EC purchasing
Tokyo: 233 respondents in four days (number of visitors: 360,000)

Nagoya: 134 respondents in three days (number of visitors: approximately 35,000)

(2) Payment method
Tokyo

Nagoya

The number of respondents who selected “credit card” as a method of payment was large for both Tokyo and Nagoya. No. 2 in Tokyo was “bank & postal savings account transfer” while “cash on delivery” placed second in Nagoya. In Tokyo, “cash on delivery” rate is low at 19.4%, ranked No. 3. The findings show that sales transaction based on “cash on delivery” is the leading form of payment in Nagoya. Among women, payments at convenience stores, postal transfer and bank transfer that are relatively easy and convenient forms of payment were popular. Credit card use ranked high for men, regardless of region. It can be said that many people wish to be liberated from the hassles of cash payment.

(3) Desire for EC purchase and purchasable value
Tokyo: Would like to make EC purchase 86.9(Male 89.1 / Female 82.5)
Would not like to make EC purchase 13.1(Male 10.9 / Female 17.5)

Nagoya: Would like to make EC purchase 81.3(Male 78.7 / Female 93.7)
Would not like to make EC purchase 18.7(Male 21.8 / Female 6.3)

When asked whether or not they would like to purchase merchandise with e-commerce, roughly 80 percent in both Tokyo and Nagoya expressed interest in purchase. On the question regarding the maximum value of purchase, 38.8% and 41.1% in Tokyo and Nagoya, respectively, chose value “up to 10,000 yen.” The maximum value of purchase was generally low among women in both cities. Among men in Nagoya, people who chose "up to 10,000 yen" were roughly equivalent in percentage to those who chose “up to 50,000 yen.” The findings in general show that the number of people interested in making high-priced purchases on the Internet is relatively small.

(4) Products chosen for EC purchase

Regardless of region, the same items ranked in the top five categories of products. (No. 1, books and magazines; No. 2, concert and admission tickets; No. 3, music CDs; No. 4, software; No. 5, electrical appliances) Similarly, the No. 1 product category for men was “books and magazines”, on the ohter hand, the No. 1 for women was “tickets to concerts and other events”. In Nagoya, however, “season gifts" placed No. 6 with 15.7 percent. In Tokyo, it ranked No. 14 with 7.5 percent. In both cities, cosmetics, accessories, and apparel items ranked high for women.

(5) Benefits and apprehensions regarding EC
[Benefits & Strengths]
Tokyo

Nagoya

"Purchase possible 24 hours a day" was top in both Tokyo and Nagoya. Other responses follow in similar order, with "purchase at home" rating 74% and 64.2%, respectively, and "convenient purchase of products from other countries" at 31.6% and 29.1 percent. The key words appeared to be any time and at home. Among women, a large number - 25.3% and 33.3%, respectively - said there is a wider range of purchase choice. Many felt the advantage of being able to select the product of choice from the broad range of options available. It appears that many find shopping a type of entertainment or hobby. Among men in Tokyo, a significant number (23.4%) liked easier payment. Many felt the advantage of being able to go shopping any time at their convenience, which suggests that men are inclined to regard shopping as an obligation driven by necessity.

[Disadvantages & Apprehensions]
Tokyo

Nagoya

"Possibility of personal data leaking to third parties" ranked No. 1 in both Tokyo and Nagoya. This is followed by "cannot check Product personally" with 64.1% and 56% and "incorrect billing" with 46.8% and 52.3%. In the case of men, "cannot negotiate discounts" ranked higher with 23.4% and 27.4%. Many expressed concern over the lack of communication between the retailer and the consumer. Among women, "cannot check products personally" ranked high. As the absolute necessity in improving security in the impersonal or faceless Net shopping, security assurance by retailers is urgently necessary.

With projects currently under way under the research directors in line with the business plans, projects for next year and thereafter are currently under review on an organizationwide basis in view of limitations in resources (especially in manpower and budget). I sincerely look forward to the continuing support of the ECOM members.
I underwent thorough medical examination for the first time in nine years. I have been given a number of precautions, including re-examination, and must refrain from excesses during the New Year holidays. Please accept my apologies in advance. (Hamanaka)