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December 26,2005
ECOM News No.9

Report on the Planning Committee
Report on the Progress of "Diffusion Promotion and Social Acceptability Studies WG"
Report on the "Fifth Joint Meeting of the Japan-Taiwan EC Promotion Committee"
Outline of Lectures at the "Fifth ECOM Seminar 2005"
Outline of Lectures at the "Sixth ECOM Seminar 2005"
Survey on Needs for Retirement Procedures
The Announcement of the "Second ECOM Executive Special Seminar"
The Announcement of the "Eighth ECOM Seminar"
The Announcement of the "Ninth ECOM Seminar"
The Announcement of the "RFID Tags Diffusion Promotion Seminar"
ECOM Press Release


Report on the Planning Committee


    A planning committee was formed in ECOM as a decision-making body for daily activities. Under the cooperation of Komatsu Ltd. (ECOM board member), the fourth planning committee was held at their Awazu Plant. After the sessions, we made a tour of the plant, which is the field site of the “RFID tags Pilot Project for FY 2004” by the Ministry of Economy, Trade and Industry.

< The Fourth Planning Committee ~November 30, 2005~>

    The activity reports for the first half of FY2005 were presented, including an overview of activities by all WGs, objectives and progress of RFID Tags/Traceability Special Committee, exchanged information at Information Security SWG, activities at study meetings of the planning committee toward diffusion of RFID tags, etc.

<Plant Tour>

At Guesthouse of Awazu Plant, Komatsu Ltd.

    Mr. Yoshisada Takahashi, Awazu Plant Manager, Production Division of Komatsu Ltd., greeted us, saying “With the latest IT, we are trying to ‘Show and Visualize’ the status of markets and productions. Utilization of RFID tags is one of its key factors.” Furthermore, Mr. Tooru Nakayama, Manager, Labor Section, Administration Department of Komatsu Ltd., explained the history of the Awazu Plant, including production of agricultural tractors and Japan’s first bulldozers, adoption of QC (Quality Control) in the wake of the Japanese market opening, as well as the efforts toward their seventieth anniversary under the theme of “Go for a Most Active Awazu in 2008.” Mr. Kazushi Mita, Manager, Reforming Project Section, Planning Department of Komatsu Ltd., explained the development of the “Progress Management System for Assembling and Inspection” utilizing RFID tags, which have advantages that barcodes don’t have, such as “Durability,” “Weather Resistance” and “Operability.” Those advantages were confirmed in the “RFID Tags Field Pilot Project for FY2004 by the Ministry of Economy, Trade and Industry”. Afterward, we toured around and saw a middle-sized construction machine assembly line, a small-sized construction machine assembly line (both are high-mix production lines), and a transmission plant (workshop and inspection). Members of the ECOM planning committee exchanged opinions with people in the plant regarding manners of RFID tags utilization for production reform.

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Report on the Progress of “Diffusion Promotion and Social Acceptability Studies WG”

    Mr. Yasufumi Ishikawa, Ph.D., Research Director of ECOM (RFID Tags/Traceability Special Committee), makes a report on the progress of “Diffusion Promotion and Social Acceptability Studies WG.”

    The Diffusion Promotion and Social Acceptability Studies WG consists of twenty members, including four intellectuals and fourteen ECOM members. Mr. Eijirou Aihara, Matsushita Electric Industrial Co., Ltd., serves as the chair and Mr. Tsuneo Matsumoto, Professor, Graduate School of Law, Hitotsubashi University, serves as an adviser of the WG. The first WG meeting was held on August 5, 2005, and started its activities for FY 2005.

 1. Objectives of the WG

    Before the full-fledged introduction of RFID tags, we extract obstacles for its diffusion, such as privacy issues for consumers. Once the obstacles are clarified, we examine ways of eliminating those obstacles (or lowering the level of barriers) systematically and technically. To promote understanding of RFID tags, we also make an educational website for consumers. Meanwhile, we examine methods which would serve as useful references for companies to adopt RFID tags. Through those activities, we promote RFID tags and their social acceptability.

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 2. Three TFs (Task Forces) and One Survey

  To achieve the above-mentioned objectives, we work on studies in three TFs and one survey.

(1) Privacy Protection Technology/Know-How Study TF (TF1)
    The TF organizes technologies and know-how for privacy protection along with the introduction of RFID tags, such as kill tags, passwords, cryptography, blocking and authentication of readers/writers. Based on the result, the TF conducts studies on their application in consideration of real situations of implementation and utilization of RFID tags.

(2) Consumer Educational Infrastructures Study TF (TF2)
    The TF conducts studies on necessary information to provide to consumers, such as a notification mark and ways of notifying the use of RFID tags to consumers, data elements stored in the tags, etc.

(3) Consumer Educational Website Study TF (TF3)
    As one of the educational activities for consumers, the TF is now working on setting up a website to explain RFID tags in a way that is easy to understand. The TF aims at making a worthwhile website which contains basic knowledge of RFID tags, case examples, questions and answers, etc.

(4) Field Survey of RFID Tags Introduction and Implementation
    The field survey is conducted in twenty companies, which have introduced and are implementing RFID tags. Companies considering the introduction of RFID tags can refer to the outcome of the survey. An objective of the survey is to understand important points at their introduction and implementation, common issues, and advantages of their introduction.

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 3. Progress


    Each TF has held five meetings respectively, and their discussions are getting more specific. The survey started in the middle of October, and hearings are being conducted in more companies.

(1) TF1
    Organization of privacy protection technologies and drawing up of road maps for RFID tags are completed. Application and evaluation of the privacy protection technologies at each situation, such as SCM (Supply Chain Management), 3R (Recycle/Reuse/Reduce), etc., are at the final phase. The TF is now coordinating with TF2.

(2) TF2
    The TF categorized situations to use RFID tags and studied privacy issues at each situation. Based on the result, the relation between data elements in RFID tags and privacy issues was discussed. The TF is also examining a notification mark, including an over-the-counter logo.

(3) TF3
    The configuration and contents of the website are already fixed. In the title of the website, “Introduction to IC Tags,” the word “IC” was decided on for use rather than “RFID,” because IC cards have spread among people, and they would find the word more familiar. Its design concept is already decided on, and the website is now under construction.

(4) Field Survey
    Interviews have been completed in two thirds of the companies. As we conduct the rest of the interviews in the remaining one-third of the companies, we will follow up with the companies whose interviews are already done, to develop outcomes of the survey and analysis.

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  4. Future Developments


    Studies of TF1 and TF2 are almost completed, and they are now working on making drafts of their reports. TF3 is aiming at completing the preliminary version of the website by the end of January 2006. It will be released only among ECOM members and invite their opinions. Based on the opinions, further improvements are expected. Each WG had been making a report individually, but in this fiscal year, the WGs, which are under the umbrella of the “RFID Tags/Traceability Special Committee,” will work together to compile an integrated report. Therefore, cross-reference and cooperating analyses with other WGs are important in the “Field Survey”. In the future, we will make further efforts not only to develop the outcome of our own activities, but also to make the final report more worthwhile in coordination with other WGs.

*This project was jointly implemented by the Japan Information Processing Development Corporation / Electronic Commerce Promotion Center and the Next Generation Electronic Commerce Promotion Council of Japan, as one of the projects commissioned by the Ministry of Economy, Trade and Industry.

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Report on the “Fifth Joint Meeting of the Japan-Taiwan EC Promotion Committee”


    Mr. Eiji Hamanaka, Secretary-General of ECOM, makes a report on the above-mentioned meeting.

    On December 13 (Tuesday), 2005, I attended the “Fifth Joint Meeting of the Japan-Taiwan EC Promotion Committee (Japan-Taiwan EC Meeting)” in The Ambassador Hotel Taipei, in Taiwan, on behalf of the committee member, Mr. Shoji Takedahara (Managing Director of ECOM).

Mr. Kawamura, Chair, gave an opening address (Right person sitting: Mr. Nishikawa, Deputy Director General)

    The committee was formed to study in concrete form the necessary measures to achieve seamless e-commerce between Japan and Taiwan. This meeting was the fifth (July 2001, Taipei; July 2002, Tokyo; December 2003, Taipei; December 2004, Tokyo). Approximately thirty participants attended the meeting from Japan, including the Japan-Taiwan EC Committee members (their deputies included), officials from the Ministry of Economy, Trade and Industry, lecturers, and Mr. Koji Matsukura, Managing Director of the Interchange Association, Japan (IAJ), which serves as the its secretariat in Japan. With participants from Taiwan, approximately a hundred people attended the meeting. On this day, following the greetings of the chairs from both countries (Mr. Toshiro Kawamura, Senior Executive Vice President and Member of the Board, NEC Corporation; Mr. Theodore M. H. Huang, Chairman of the Board, TECO Group), Mr. Taizo Nishikawa, Ph.D., Deputy Director General, Commerce and Information Policy Bureau, Ministry of Economy, Trade and Industry of Japan, and Mr. Yen Shiang-Shih, Vice Minister, Ministry of Economic Affairs, Taiwan, gave their greetings as representatives of both governments.

    The presentations made at the meeting are summarized below.

    Following a report from Taiwan on outcomes of one-year activities of the Japan-Taiwan EC Meeting, the political policies of both countries were explained (Japan side; Mr. Kazuo Yokota, Deputy Director for International Cooperation, Information Policy Division, Commerce and Information Policy Bureau, Ministry of Economy, Trade and Industry). After the explanations, reports on “Coordination Meeting of Electronic Commerce Legal Systems between Japan and Taiwan” were made (Japan side: Mr. Kazuo Yoshida, Assistant Professor of Seiwa University). In the reports, the suggestion to hold meetings twice a year, starting next year, was made, and both chairs of the committees agreed. Two lectures in the morning and six lectures in the afternoon were given. At the last, ECOM explained the current status of EC in Japan and Korea.

    From Japan, the following reports were made: “Current Status of ISMS in Japan” by Japan Information Processing Development Corporation (JIPDEC), “Trends Associated with Implementation of the Personal Information Protection Act in Japan” by NEC Corporation, “International XML/EDI Activities in the Travel Industry” by the EC Promotion Organization for Travel Industry, and “Report of GBDe Summit 2005” by NEC Corporation. From Taiwan, the following reports were made: “Exchange of Electronic Certificates of Origin between Japan and Taiwan” by Trade-Van Information Services Co., “Cooperation Opportunities on RFID Application and Technology Development between Japan and Taiwan” by Industrial Technology Research Institute, “International Micro Payments” by Chunghwa Telecom, and “Toward a Trustworthy Electronic Business (On-line ADR)” by Taipei Secure Online Shopping Association. Among them, the report, “International XML/EDI Activities in the Travel Industry” provoked keen interests from Taiwan, and coordination in concrete form between related industries in the two countries is expected in the future. Regarding the “Electronic Certificates of Origin” suggested from the Taiwan side, the Japan side commented that it should be promoted in accordance with the trend of FTA and custom systems of each country. At the last, I introduced the “Japan-Korea Electronic Commerce Promotion Council,” for which ECOM serves as its secretariat in Japan, including backgrounds of establishment, objectives, outline of activities, implementation system, progress of the activities and joint projects which have been conducted. The Taiwan side showed their interest in the details of its activities.

    The sixth Japan-Taiwan EC Meeting is scheduled to be held in Japan in 2006, but the GBDe meeting is going to be held in Taiwan. Therefore, the concerned organizations will adjust the schedule and make the final decision.

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Outline of Lectures at the “Fifth ECOM Seminar 2005”
~ Efforts for Consumer Protection toward Safe and Secure EC and Recent Crimes Committed through Computer Networks ~


    On November 25 (Friday), 2005, a monthly ECOM seminar was held under the above mentioned theme at the Kikai Shinko Kaikan Building (Shibakoen, Minato-ku, Tokyo). On the day, approximately 90 visitors including members and a general audience attended the seminar. In this seminar, four lecturers gave presentations under the theme of safety and security (“secure trading” was the theme for the first part and “threats to the safety of network environments” was the theme for the second part).

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 Lecture 1: “Toward Appropriate Internet Transactions by Consumers”


Ms. Kyoko Kashiwabara, Deputy Director, Consumer Policy Division
Commerce and Distribution Policy Group, Commerce and Information Policy Bureau
Ministry of Economy, Trade and Industry


    Mail-order sales in our country have been growing at an annual rate of 6% for the past five years. In particular, the market of internet shopping has been drastically expanding. TV shopping products are introduced and orders are accepted on cell-phones and the Internet, and collaborative activities across media barriers are being promoted. According to surveys on consumer trends, people show a strong desire to make use of the Internet and the number of online auction users has been increasing. Internet transactions are no longer for a few special people, but have started to take root in regular people’s lives.

    “Anonymity” is pointed out as one of the characteristics of the Internet, but the primary characteristic of Internet transactions is that mediators play a very major role. In real stores, transactions are completed based on one-to-one relationships between stores and consumers. However, many people and sites are involved in Internet transactions: mall operators and auctioneers, and search sites and comparison sites in relation to advertising. These days, affiliaters who introduce products as individuals have joined the market. “Involvement of many kinds of players” is a remarkable characteristic of consumer transactions on the Internet.

    From the viewpoint of consumer protection, there are two kinds of risks with Internet transactions: the risk of making decisions based on insufficient and inappropriate information and the risk of being victims of frauds. Because it is easy to enter the online marketplace, business persons who lack professionalism are involved in Internet transactions and innocently provide insufficient and inappropriate information to users. As a result of such behaviors, consumers feel uneasy and all kinds of problems arise. Some consumers are victimized by some malicious sellers who carry out frauds and perform other similar criminal acts by making wrong use of “anonymity”. One of the examples is that products are not delivered to consumers although they have made payments.

    Important measures to reduce consumers’ risks of making decisions based on insufficient and inappropriate information are as follows: securing observance of labeling duties under the Specified Trade Law, examining nature of advertisement and labeling according to medium as well as roles of mediators, and supporting for third-party problem-solving by private initiative. What are also important as measures to reduce risks of being victims of frauds and other similar criminal acts are the diffusion of third-party identity verification of sellers and further reduction of advanced payment risks. In consideration of increasing the capacity of consumers including affiliaters to send information, it is necessary to increase their awareness as sources to send information. We hope that these efforts will contribute to the development of mail-order sales by easing the concerns of consumers about Internet transactions, even if only slightly. We will examine laws and regulations if necessary, but we think that voluntary efforts of business persons, environmental improvement, etc. are important.

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Lecture 2: “New Problems and Roles of ADR in Consumer Protection”

 
Ms. Yuri Harada, Senior Advisor, Internet Shopping Dispute Consultation Office
Next Generation Electronic Commerce Promotion Council of Japan


    Four years have passed since the Internet Shopping Dispute Resolution Office started to operate for the protection of consumers. We had few visitors for the first two years because the office was not known well, but more people came to consult with us for the latter two years because the office became widely known. We have received nearly 5,000 inquiries up to now. The most frequent troubles that were brought to us are classified into the following types: with regard to transactions, (1) undelivered products, (2) dissatisfaction with products and (3) labeling mistakes with regard to services, and (1) disagreement in the completion of contracts, (2) fictitious and unreasonable billings and (3) service suspension .

    If you look at the development of legal systems from the perspective of consumer protection, rules on electronic commerce reflects the latest status, so we refer to them for providing consulting services.

    We refer to the Civil Code when we receive inquiries on issues such as mental abuses at auctions. The characteristics of EC transactions that have emerged from consulted cases are as follows: companies of any types from major companies to small and medium-sized enterprises and sole proprietors can enter the market; consumers can easily send information; consumers are not sharply distinguished from business persons; transactions are highly anonymous and beyond geographical distances; new business models have come up; there are problems with borderless transactions; and there are many kinds of settlement procedures.

    We can list problems and countermeasures that have emerged from representative cases as follows: (1) to cope with troubles such as out-of-contact status of business persons after all payments are made, it is indispensable for malls to correctly understand the status of management of member stores; (2) it is necessary to educate small business persons who lack responsibility and professionalism, in cooperation with providers, settlement business persons, etc.; (3) in case of troubles such as unilateral cancellation of contracts, it is necessary for business persons to collect sufficient evidence and to show respect for users; (4) in overseas cases, because business partners may dislike Japan, it is desirable to acquire linguistic skills, to avoid transactions out of auctions, and to use means of settlement with compensation, such as credit payments, as often as possible, etc.

    We have provided services such as advice, mediation, conciliation and arbitration based on our programs. What we have understood by means of consulting services is that there are many business persons without knowledge in the world of Internet transactions. Many of them are innocent and are running small businesses. I hope that they will acquire more knowledge by making use of educational opportunities and positively managing claims and that they will be continuously engaged in Internet transactions.

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 Lecture 3: “The Latest Information on Domestic and Overseas Phishing and                             Problems”


Mr. Futoshi Nakada, Chair, Information-Gathering & Providing WG
Council of Anti Phishing Japan


    The Council of Anti Phishing Japan has established a site for reporting phishing mails and damages, providing consulting services, and disclosing information on phishing sites and new phishing techniques (http://www.antiphishing.jp/).

    According to a report by a U.S. research firm, “the global damage caused by phishing amounted to approximately 264 billion yen in 2003 alone”. This year, a Japanese bank suffered a loss of approximately 1.5 million yen in total. Consumers are victimized in the following ways: (1) leakage and wrongful use of account information for card counterfeiting and (2) cash remittance and financing by using credit card numbers that are obtained by fraud. Companies are also victimized in the following ways: (1) increase in cost for procedures for reopening accounts, (2) increase in customer support cost, (3) consumers’ negative image of corporate brands, etc. As a result, although companies do not do anything wrong, consumers’ trust in them is lost, and the use of websites decreases due to uneasiness of consumers. Thus, business is affected.

    The United States, China and Korea are always ranked in the top 3 as countries with servers that are used for phishing, and Japan is included in the top 10 countries every month. Methods that are employed in phishing frauds are as follows: (1) falsification of address bars, (2) avoidance of spam filters (anti-spam), (3) wrongful use of secure site seals, etc. As anti-phishing solutions, there are the following measures: (1) mails with electronic certificates, (2) sender authentications and server certificates, (3) authentications between servers and clients, etc.

    Like billing frauds and fictitious billings, methods that are employed in phishing frauds are making advances day by day. It is highly probable that, rather than thrill-seeking criminals like virus writers who want to demonstrate their technical capabilities, professional criminals are involved in financially-motivated phishing. From now on, it will indispensable for users to increase security awareness because it is forecasted that the methods that will be employed in phishing frauds will become even more skillful. However, it is practically impossible to require all users to have a sense of security to prevent phishing frauds. Therefore, it will be required in the future to provide new easy-to-understand and secure solutions for preventing phishing frauds.

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 Lecture 4: “Threats and Problems of Crimes Committed through Computer Networks                             by Spyware”


Mr. Satoru Ishihara, Anti Spyware Promotion WG, Japan Network Security Association


    The Japan Network Security Association (http://www.jnsa.org/), for which vendors who are involved in network security systems gather together, has been acting as an organization for appealing to the necessity of network security to the society and solving all kinds of problems.

    Online threats have shifted from the phase of causing damages to computer networks to the phase of causing real damages by getting money and personal information by fraud including phishing, by means of spyware and adware.

    In particular, many problems have been caused by spyware these days. Spyware means “programs that are installed, despite intentions of users and administrators, to collect personal information of users and other similar information including access history”. There are many types of spyware, such as adware and hijackers. There are other types of spyware for stealing input information, such as key loggers that monitor and record keyboard inputs. As for entry pathways, spyware breaks into computers by hiding in free software or shareware, or it is installed as a function that is included in legitimate software.

    It is necessary to take the following countermeasures against spyware: (1) keep computers up to date at all times, (2) pay attention to suspicious websites and mails, (3) strengthen computer security, (4) effectively use countermeasure software, etc. There are various types of countermeasure software, such as anti-virus software, anti-spyware software and personal firewalls, but we cannot completely prevent the entry of spyware with only one of the countermeasures.

    If spyware breaks into our computers, important information will be leaked while we are unaware of it. In the worst cases, spyware causes monetary damages and invades privacy. At present, there are very many types of spyware. For the purpose of countering them, it is more effective to combine different countermeasures than to depend on only one of them. It is also important to control our own behaviors by refraining from downloading files from suspicious sites and taking other similar measures.

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Outline of Lectures at the “Sixth ECOM Seminar 2005”
~ECOM Open Seminar~
Mr. Eiji Hamanaka, Secretary-General of ECOM, gave the host’s speech


    On December 2 (Friday), 2005, a monthly ECOM seminar was held at the Todofuken Kaikan Building (Hirakawa-cho, Chiyoda-ku, Tokyo). This time, nine former research directors of ECOM, who contributed to the activities of ECOM and the promotion of EC, were invited as lecturers to freely express opinions based on their current positions. For the purpose of not only making use of their opinions in the future activities of ECOM but also informing those who are involved in EC of successful activities by former members of ECOM, we held it as the first open ECOM seminar so that many people including not only our members but also the general audience could participate in it. We had approximately 100 visitors.

 

 Lecture 1-1
    “The Current Status of and Problems with IT/EC Education in Universities”


 Mr. Hidekazu Tsuji, Ph.D., Professor
School of Information Technology and Electronics, Tokai University


    IT/EC education covers a wide range of areas including basic computer technologies, applied technologies and social dimensions.

    EC environment has changed compared with seven years ago: personal computers, Internet, and broadband services have come into wide use, users have expanded from adults to elementary and junior high school students, Internet services have expanded and many kinds of problems have arisen. IT/EC education, which covers from basic knowledge and technologies for using computers to manners in participating in the information society, now starts at senior high schools. Universities provide the following courses: with regard to IT, basic computer training and applied technologies for software development, information retrieval, information security, etc., and with regard to EC, network information literacy, web server technology and other similar technologies. The problem with IT/EC education in universities is as follows: in IT education, it is important to steadily teach the basics and to provide courses that help students find and solve problems instead of teaching them conventional procedures, such as practical professional training and PBL (Project Based Learning), and in EC education, it is necessary to collaborate with business and management circles.

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 Lecture 2-1
    “Problems with Security Measures and a Proposal from ECOM – Introduction of a       Security Measure Evaluation Model of ECOM”

Mr.Takaaki Shigematsu, Manager, Business Planning Department, Nihon IST Ltd.

    In 2004 and 2005, with the collaboration of many experts in security measures, we developed a “security measure evaluation model” as a packaging guide for ISMS to evaluate the sufficiency of security measures under contemplation or in execution. The aim of the model that we propose is to evaluate the robustness of security measures. The proposed model is based on a concept that the robustness of measures should be evaluated from the following three perspectives: completeness of the coverage of target points, completeness of the coverage of measure targets, and strictness of measures to be taken. The strength of measures is evaluated on a five-point scale according to measure demands. The characteristics of the proposed model are as follows: it can be applied to all types of systems; it can plan and evaluate security measures in response to the characteristics of security environments of target systems; and it can prevent a lack of security measures if it is used as a measure guide. In the future, personal equation will be eliminated and security measures will be objectively evaluated, if the following problems are solved: improvement of the proposed model, strengthening of usefulness, evaluation of usefulness based on application experiments, establishment of application schemes, etc.

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 Lecture 2-2
    “Training for the Protection of Personal Information”


Mr. Eijiro Aihara, Manager, IT Team, Matsushita Electric Industrial Co., Ltd.

    Even though thorough measures for information security are taken, it is not sufficient to “observe the Act on the Protection of Personal Information”. Information security is based on common safety management processes, and the process of handling personal information includes access to information, use of information, responses to complaints and inquiries, and provision of information to third parties. To make employees understand the “importance” of personal information, it is necessary to establish unified rules and systems, to manage information assets (adjustment and disposal of personal information), to conduct site (internal) audits, and to reflect audit results (indicated points). As development approaches, it is effective to provide e-learning and e-test opportunities and to release lists according to working places on the rate of participation in courses and the number of consecutive days with “no personal computer theft / loss”. When personal information is leaked, it is necessary to promptly take measures for victims, to conduct examinations to determine causes, and to report the results to authorities and publicly announce them. The protection of personal information is one of the most important “management” issues for companies and groups in the modern society. It is necessary not only to provide practical training to employees to make them understand the importance of personal information but also to establish CPOs (Chief Privacy Officers) to respond to top-down management.

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 Lecture 2-3
    “The Current Status and Problems of Electronic Signatures and Authentications”


Mr. Akitoshi Yonekura, Chief Researcher, Electronic Signature and Authentication Promotion Center, Japan Information Processing Development Corporation (JIPDEC)


    Four and a half years have passed since the Law concerning e-Signatures was enforced. At present, there are the following authentication infrastructures: governmental authentication infrastructures, public authentication infrastructures (S/MIME certificates and server certificates), and in-company authentication infrastructures. As for certification and authentication services, seventeen authentication services are now certified and electronic certificates can be issued for electronic bidding, electronic application, electronic filing, etc. for e-Government system; electronic contract systems, signatures in S/MIME e-mails, electronic files including PDF files, etc. in the private sector. Users need to be careful in confirming contents before they e-sign and strictly managing the signature codes that are used for electronic signatures. What is important for signature verifiers is to confirm information concerning the scope of use of electronic signatures, signature verification codes of certification authorities, finger prints, invalidation, etc. In general, it is difficult to say that electronic signatures and authentications have spread among people. We have future issues such as the possibility of long-term verification of electronic signatures, verification level, verification of attributes and certification standards.

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Lecture 3-1
   “Ideal Consumer Protection from the Viewpoint of Cybermall Operators”


Mr. Yasuo Atsumi, Manager, Legal Division, Yahoo Japan Corporation

    Some people hesitate to make use of online auctions because they feel uneasy about transactions (uncertainty of product delivery, lack of information about people involved, and leakage of personal information) and troubles, and because procedures are bothersome (troubles with procedures, unknown usage and undetermined charges). Online auction operators provide a transaction process, which covers from registration for participation to exhibition, searching and bidding, and successful bidding, to online auction participants (exhibitors, bidders and winning bidders). In general, commercial activities after successful bidding (mails on successful bidding are sent from operators to both exhibitors and winning bidders), such as transfers of money and products, are handled independently outside of the programs of operators, as party-to-party transactions between exhibitors and winning bidders, in which operators are not involved at all.

    For the purpose of securing the safety and reliability of transactions, operators provide variety of support activities including usage experience programs, guidelines and FAQs, disclosure of cases of trouble, and escrow services. However, it is hard to say that they are satisfactorily used. It is needless to say that, for the purpose of further promoting consumer protection, operators are required to continuously take effective countermeasures against threats. But, the most important issue is to develop transaction environments in which participants are urged to be aware of their responsibilities as parties involved and to be independent players.

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 Lecture 3-2
     “The Current Status of and Problems with the Card Society”


Mr. Mikio Aoshima, Vice President, Golden academy (NPO)


    The credit card society has been making steady progress. As for credit card business performance in 2003, card billing amounted to 33 trillion yen, the number of active cards was 250 million (including 80 million IC cards), and the actual number of member stores was 1.3 million (including 100,000 IC card terminals). It is estimated that the ratio of card billing to household consumption expenditure is 70% in Ireland (No.1 in the world), 60% in Korea (No. 2 in the world), 35% in the U.S., and 11% in Japan. As for damage amount due to wrongful use of credit cards in Japan, the percentage of damage due to forged credit cards has been increasing. Debit cards, prepaid cards, and electronic money are being more frequently used, respectively. The credit card industry is required to work on the development of infrastructures for IC card terminals, counterfeit cards, ID theft (phishing), personal information protection, the reduction of member-store service charges, and development of a new settlement market. The introduction of a mobile settlement function by means of contactless IC cards, cellular phones, etc., has had many impacts on the card industry, and there are current problems such as response to new means of settlement, system sharing and industrial reorganization.

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 Lecture 4-1
    “The Current Status of Computerization and Organizations”


Mr. Kazuhiko Arakawa, Senior Consultant
System Consulting Division, Nomura Research Institute, Ltd.


    CIOs and IS divisions are aware of many kinds of problems with IT management as follows: formulation and implementation of medium and long-term computerization strategies, effective use of information system assets and information assets, response to the year 2007 problem and organizational and personnel risks, structural reform of IT related companies and subsidiaries, review of insourcing and outsourcing, increase in accountability, strengthening of IT infrastructures, and use of IT technologies. In the past, improvement in efficiency was an exclusive theme on the use of IT, but the prioritized theme has shifted to contribution to business itself. CIOs as key players in the use of IT were chosen mainly from IT personnel in the past, but the ratio of CIOs chosen from personnel in administration divisions and operating divisions, who can understand management and business, has been increasing. CIOs are expected to play a role of incorporating IT into management and realizing total optimization in the use of IT; they can not stay any more only as supervisors in IT divisions. The first issue with IT management is to secure and relocate core human resources, and the second one is to realize total optimization in strategies and funds. CIOs are expected to be all-round players in solving problems and their responsibilities are becoming very big.

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Lecture 4-2
   “Problems with the Diffusion of EDI – Possibility of Introducing EDI into Small and      Medium-sized Enterprises”


Mr. Yukinori Saito, General Manager, IT Planning Office, Fuji Electric Holdings Co., Ltd.


    According to a survey by ECOM on 5,000 small and medium-sized enterprises with the aim of understanding the current status of EDI in these companies, the rate of EC introduction is high: 35% in case of purchasers and 70% in case of sellers (837 companies sent replies and the rate of collection was 17 %). The high rate was due to the fact that the companies surveyed were small and medium-sized enterprises that were oriented for introducing IT and EC. The national average rate of EC introduction is as low as 10%, and many small and medium-sized enterprises are unable to fully enjoy the effects of EC introduction. There are the following problems with EC and EDI: standardization, user systems and capacities, user-friendliness, and cost. It is necessary not only to advance standardization but also to promote EC and EDI by making use of XML style sheets, designing and developing standard message conversion systems, standard EDI client systems and Internet EDI systems for small and medium-sized enterprises. As for activities by the Japanese government, the IT Management for SMEs Support Project has been carrying out activities since FY2004 and the IT Strategy Headquarters (third term), since May 2005. The government has been advocating the use and promotion of IT as a policy for small and medium-sized enterprises. In these activities, due to the creation of common integrated infrastructures, issues such as use of IT, increase in problem-solving capacity and strengthening of competitiveness are being examined. For the purpose of developing and promoting a common XML/EDI framework to solve current EDI problems and carrying out other similar activities, the Common XML/EDI Practice Promotion Council has been developing basic software to conduct pilot tests in the first half of FY2006. The council is working in cooperation with related organizations (Ministry of Economy, Trade and Industry, ECOM, JEITA, etc.).

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Lecture 4-3
   “Problems with and Expectations for Japan-Korea EC Promotion from the Standpoint      of Korea”


Mr. Eiji Ishiguro, Advisor, e-AMP Secretariat, Korea CALS/EC Association


    We are working toward the realization of the concept of the e-Asia market place (e-AMP), which started in FY2000 supported by the Ministry of Economy, Trade and Industry. The e-AMP project is a project for promoting and supporting electronic commerce on the Internet in Asian countries and it has been supported and promoted by both the Japanese and Korean governments. e-AMP/Korea is supporting transaction processes for the companies that want to do business with Korean companies, based on a database through which Korean companies and products can be searched for. Its main functions are as follows: search of companies and products, provision of credit information, automatic translation, marketing agency service, etc. There are services that are irreplaceable by business-to-business EC, such as confirmation of sites of partner companies and confirmation of quality and supply capacity. e-AMP is carrying out the following activities: provision of excellent corporate and product information, establishment of an inquiry counter, holding of exhibitions and business meetings, collaboration with e-MPs in other countries, leading of current businesses to e-AMP, introduction of candidate companies, support for marketing activities, and other similar activities.

    In the future, we will expand the transaction area all over Asia including the “China Zone”, which has been a focus of attention as a large trading zone.

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Survey on Needs for Retirement Procedures
Proposals to e-Governments on How to Deal with the 2007 Issues

     Mr. Kazuo Adachi, Research Director of ECOM (e-Government & Business Collaboration WG), makes a report on the above-mentioned survey result.

    2007 is the year when a large number of baby boomers will retire.

    When you mention the 2007 issues, it means the concerns over the accumulated know-how not being passed on to the next generation and the mission-critical systems not being maintained after the retirement of the generation who developed and maintained the mission-critical systems of big-sized general-purpose machines, etc. However, we took a look at one particular issue of the increasing amount of procedures for retirements.

    According to one estimate, 8 million people will retire in the three years around 2007. The survey result of ECOM members shows the average time to complete all procedures for one retiree is two hours and 35 minutes. Therefore, it takes 20 to 24 million hours to complete retirement procedures for 8 million retirees. If 2,000 yen per hour is paid, the total cost will be 40 to 48 billion yen. This is the amount that companies are expected to pay.

    Retirement procedures that companies have to do at administrative agencies are wide-ranging, such as tax, social insurance, labor insurance, etc. And also for the procedures to be accepted, you have to visit so many agencies, such as the municipalities where a retiree lives, social insurance offices, job centers, labor standards inspection offices, etc. In addition, documentary forms are not standardized.

    In order to collect the necessary documents for an elderly benefit adjudication claim procedure to receive pension payments, retirees themselves also have to visit municipalities, job centers, benefit associations, social insurance offices, annuity insurance associations, tax offices, hospitals, post offices, etc. With the collected documents, application documents need to be submitted to social insurance offices, etc.

    ECOM has been considering “what e-Governments ought to be” from the point of users. The minimum condition to make successful e-Governments, we believe, is that companies and citizens can actually sense the convenience and user-friendliness of e-Governments. To meet the conditions, it is indispensable to make all the procedures able to be completed at one portal (one-stop service). The applications which can be completed at one portal, such as residence and seal certificate issuance, are limited. It is more common that multiple procedures at different portals are involved with one application, such as an application to do business or birth notification. To streamline those procedures, computerizing applications at each portal is not enough. All procedures for each event should be able to be completed at one portal (one-stop service). Most of the current applications were computerized for “each procedure” from the point of view of the officers (national and local public entities) who receive applications. This is out of touch with the needs of users (companies and citizens) who are expecting one-stop service for “each event.” This is the main reason for users not to find any advantages in e-Government.

    Taking the retirement procedure as a typical example of those complicated procedures, we conducted a survey of companies and individuals under the theme of “Administrative Procedures at Retirement.” We set up a hypothesis that, when making the administrative procedures for retirement, the capabilities of e-Governments are expected to contribute to payroll reduction at the section of general affairs and human resources, and to the foundation of convenience of life (pension, health, management of assets, founding a company, personal business, etc.). We received responses from 1,050 companies and 410 baby boomers and rounded up the results.

    The main points of the survey results are as follows.

<Outline of the Survey>

-   To Companies
    The main target is people at the section of general affairs and human resources. We divided them into the following groups, and then conducted a web-based questionnaire survey.
1. People mainly in charge of administrative procedures at the retirements of employees.
2. People who are not mainly in charge of administrative procedures at the retirements of      employees, but they sometimes get put in charge of those procedures.
3. People who are not mainly in charge of administrative procedures at the retirements of      employees, but they sometimes assist in those procedures.

-   To Baby Boomers
    The target is baby boomers and people around the age of baby boomers (age 55 to 64). We conducted a web-based questionnaire survey.

-   Duration of the Survey
    Preliminary Survey (limiting targets): November 16 to November 25, 2005
    Main Survey: November 25 to November 28, 2005

-   Numbers of Responses
    Company: 1,050
    Individual: 410

<Survey Result>

1. Result of respondents from 1,050 companies
  - About half of the companies think administrative procedures for employees are a burden.
  - About 60% of companies think payroll-related procedures, including annual adjustment,      are especially a burden. And also, about half of the companies think employment      insurance-related procedures are also a burden.
  - More than 80% of the companies with more than 300 employees are concerned about      the increasing burden of procedures at the retirements of baby boomers.
  - 80% of companies believe that web-based procedures are efficient. Nearly 90% of      companies admit the necessity of promotion of making changes to enable handling      procedures over the web. And also 80% of companies expect procedures to be converted      to web handling by 2007, when the most baby boomers retire.

2. Result of respondents from 410 individuals from 50’s to 60’s
  - Regardless of whether or not they have already experienced the elderly benefit      adjudication claim procedures, about 90% of the people admit the convenience of being      able to do the procedures during their tenure.
  - 94% of the people think the procedures should be treated collectively on the Internet. 58%      of the people responded, “even by pouring in public money, it should be promoted.”
  - In addition to that, 92% of the people think it should be materialized by 2007.
   (Please refer to http://www.ecom.jp/press/2005_007.htmlfor details of the respondents.)

    These survey results show high expectations from both companies and individuals for web-based procedures. An especially noteworthy result is that over eighty percent of companies and ninety percent of individuals think it should be ready by 2007, when the number of baby boom generation retirees reaches a peak.

    If both companies and administrative agencies can go through procedures from the Internet, and retirement procedures can be done with the Internet environment at the office, extremely convenient and frequently used e-Governments would be established for both companies and retirees.

    The issue of streamlining retirement procedures is forthcoming in two years. ECOM’s e-Government & Business Collaboration WG is aiming to implement a pilot test of the one-stop service in FY2007, and planning to immediately set up an appropriate scheme for retirement procedures to include administrative agencies, companies and individuals.

    There are some problems: one-stop services for procedures of current electronic applications, notification, etc., are not yet provided; acquisition of Basic Resident Register cards and electronic certificates, which are necessary for using public person authentication, are not widespread among employees. One-stop service of retirement procedures can be a killer application to solve the problems.

    More importantly, the burden of administrative procedures on users should be reduced. If e-Government services can ease the burden, the number of people who have public person authentications (this is currently the problem) would expand. Easier-to-use electronic applications, notifications, etc., will also increase the number of users.

The Announcement of the “Second ECOM Executive Special Seminar”


   The “Second ECOM Executive Special Seminar” for board members of ECOM will be held as follow.

Date: January 19 (Thursday), 2006, 15:30~17:00
Place: “Gold Star Room,” Tokyo Kaikan, Kasumigaseki Building
(Kasumigaseki Building 35th floor, Kasumigaseki 3-2-5, Chiyoda-ku, Tokyo)
Lecturer: Mr. Risaburo Nezu, Senior Managing Director of Fujitsu Research Institute (FRI)
Title: “Pay More Attention to the U.S.A.”

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The Announcement of the “Eighth ECOM Seminar”
~ e-Governments ~ How to Expand Utilization of Electronic Applications


    
In a series of measures concentrating on the e-Government Construction Plan, 96% of applications at the national government are computerized, and development of the environment has been progressing rapidly. We are now facing challenges to expand utilization of the electronic applications. To tackle the challenges, a system in which users can enjoy the genuine convenience of e-Governments is needed.

    The common theme of lectures is “Expansion of Utilization of Electronic Applications.” In the keynote speech, efforts in Japan and in the Québec Tax Agency in Canada will be introduced. Through reports on the results of surveys conducted by ECOM and the panel discussion with intellectuals, we will consider the issues and outlook of diffusion of electronic applications, and scenarios toward the firm establishment of e-Governments, taking retirement procedures and e-Tax applications as examples.

Date: January 25 (Wednesday), 2006, 13:20~17:00
Place: Meeting room, 6F, Kikai Shinko Kaikan Bldg. (3-5-8, Shibakoen, Minato-ku, Tokyo)

Program

13:20~13:40 Opening Lecture
“The Current Status and Future Challenges of e-Governments”
13:40~14:10 Keynote Speech 1
“e-Government Construction Plan in Japan”
14:10~15:10 Keynote Speech 2
“Introduction of the Electronic Tax Filing System at the Tax Agency in Québec”
15:10~15:20 Coffee Break
15:20~15:40 Case Example
“Report on Company Survey Results and One-Stop Portal Service of Retirement Procedures”
15:40~16:00 Case Example
“Report on Survey Results of Companies’ Needs at Tax Filing and Proposals to Diffuse Electronic Tax Filing Service
16:00~17:00 Panel Discussion
“Toward the Implementation of User-Friendly and Convenient e-Governments”

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The Announcement of the “Ninth ECOM Seminar”

    Act on the Protection of Personal Information and Attribute Authentication

    We will face increasing opportunities to authenticate personal attribute information like positions in the case of authentication on the Internet.

    In this seminar, we will introduce not only the Act on the Protection of Personal Information, but also examples of attribute authentications and how to deal with personal information at the attribute authentication.

Date: January 27 (Friday), 2006, 13:30~16:40
Place: Meeting room, 6F, Kikai Shinko Kaikan Bldg. (3-5-8, Shibakoen, Minato-ku, Tokyo)

Program

13:30~14:30 Lecture 1
“Act on the Protection of Personal Information and Attribute Authentication”
14:30~14:40 Coffee Break
14:40~15:40 Lecture 2
“The Latest Trend of Attribute Authentication in the Medical Field”
15:40~16:40 Lecture 3
“Protection of Personal Information and Attribute Authentication Provider at Websites”

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The Announcement of the “RFID Tags Diffusion Promotion Seminar”
Utilization of RFID tags toward Enhancement of Inter-Industrial Competitiveness

    Under the corporation of the Next Generation Electronic Commerce Promotion Council, the Ministry of Economy, Trade and Industry and the Japan Information Processing Development Corporation / Electronic Commerce Promotion Center (JIPDEC/ECPC) will hold an “RFID Tags Diffusion Promotion Seminar” to promote the introduction and implementation of RFID tags. It is a part of the FY2005 RFID Tag System Development Survey (infrastructure development of inter-company information sharing).

    This time, we will introduce RFID tags pilot tests by the Ministry of Economy, Trade and Industry and the activity results of survey research on inter-company utilization of RFID tags, etc., in Sapporo, Nagoya and Fukuoka.

    In parallel, at the venues, we display RFID tag-attached products which were used for the pilot tests in FY2004, and you can watch a video introducing the pilot tests.

    We will put more details, such as its program and registration for the seminar, on ECOM’s web site (http://www.ecom.jp/seminar/rfid_seminar.html), etc., shortly.

Sapporo Venue  
  Date: January 31 (Tuesday), 2006, 13:00~17:00
  Place: Room Tancho, SAPPORO GARDEN PALACE (Sapporo, Hokkaido)
Nagoya Venue  
  Date: February 7 (Tuesday), 2006 13:00~17:00
  Place: Meeting room, 5F, Sakae Gas Building (Nagoya, Aichi)
Fukuoka Venue  
  Date: February 10 (Friday), 2006 13:00~17:00
  Place: International Conference Hall, 4F, ACROS Fukuoka (Fukuoka City, Fukuoka)


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ECOM Press Release


Survey on Needs for Retirement Procedures
Proposals to e-Governments on How to Deal with the 2007 Issues

(Released on December 12, 2005)

Detail: http://www.ecom.jp/press/2005_007.html (*There is also a related article on this page.)
Outline: ECOM conducted the “Survey on Needs for Retirement Procedures” with people at the section of general affairs and human resources and baby boomers.

    Around 2007, eight million baby boomers will reach age sixty. There will be increasing activities at the turning point, such as retirement, reemployment, a life of freedom, etc. With the increasing activities, there will be a flood of administrative procedures that both individuals and people at the general affairs sections of their companies have to do. We set up a hypothesis that, when making administrative procedures for retirements, the capabilities of e-Governments are expected to contribute to payroll reduction at the general affairs sections and to the foundation of convenience of life. We received responses from 1,050 companies and 410 baby boomers and gathered the results.

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From the Secretary-General


    I attended the “Fifth Joint Meeting of the Japan-Taiwan EC Promotion Committee” in Taipei, Taiwan, on behalf of Mr. Takedahara, the Managing Director of ECOM. The outline of the meeting is already mentioned in this issue. Taipei, where I visited for the first time in several years, was brisk as before. There is the world’s tallest building (508 m) by the name of Taipei 101 (Taipei Financial Center) towering in the town, and the bullet train, which has installed Japanese technologies, is scheduled to be opened in October 2006. In addition, the venue for next year’s GBDe (Global Business Dialogue on Electronic Commerce) was decided to be Taipei. Further development of Taipei is still expected.

    How was the year 2005 for you? It became the year for me to have reconfirmed the importance and appreciation of health. If you could select the biggest ten news items in 2005, which news item comes up as your number one? There were some incidents, such as the earthquake-resistance data falsification scandal, the Amagasaki derailment accident, the series of girl-murders, natural disasters at home and abroad, etc., though they are not good news. For ECOM, “Inauguration of the Next Generation ECOM” and “Full Enforcement of the Act on the Protection of Personal Information” are inevitable choices. As you choose the biggest ten news items for you and your company, you can also make a New Year’s resolution on what you are eager to accomplish this year. I wish you a bright New Year full of hope.

(Hamanaka)

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ECOM News No. 9

Issue Date: December 26, 2005
Issuer: Next Generation Electronic Commerce Promotion Council of Japan
Kikai Shinko Kaikan Bldg 3F  
3-5-8, Shibakoen, Minato-ku Tokyo 105-0011, Japan
Tel: +81-3-3436-7500, Fax: +81-3-3436-7570


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