1. e- Tour I : Introduction to e-Business & e-Commerce E. Widodo

2. 2 e- Objectives Know the meaning and scope of e-Business & e- CommerceKnow the meaning and scope of e-Business & e- Commerce Understand the benefits and barriers in its adoptionsUnderstand the benefits and barriers in its adoptions

3. 3 e- “ Computer science is no more about computers than astronomy is about telescopes” EW Dijkstra

4. 4 e- Contents BackgroundBackground e-Business managemente-Business management TerminologyTerminology SignificanceSignificance B2B and B2CB2B and B2C DriversDrivers BarriersBarriers

5. 5 e- What next will be?

6. 6 e- What about industry? Source: e-Business W@tch (Survey 2005) Electronically Trade in the EU

7. 7 e- e-Business Management Not only using ICT to automate existing processes, but also to change these processes if necessary.Not only using ICT to automate existing processes, but also to change these processes if necessary. How to manage? Breadth knowledge of:How to manage? Breadth knowledge of: –Marketing & sales –Product development –Manufacturing –Inbound & outbound logistics –Human resources B Value Chain Value Network C Business Processes & Activities

8. 8 e- Management response should be How should a electronic business strategy be developed?How should a electronic business strategy be developed? To what extent we can use existing business processes and ICT strategy models?To what extent we can use existing business processes and ICT strategy models? What are the main changes that need to be made to the organization as part of implementation strategy?What are the main changes that need to be made to the organization as part of implementation strategy?

9. 9 e- Important terminologies e-Business: all electronically mediated information exchanges, within an organization &/ with external stakeholders supporting the range of business processes.e-Business: all electronically mediated information exchanges, within an organization &/ with external stakeholders supporting the range of business processes. e-Commerce: > ditto.e-Commerce: > ditto. Value chain: a model for analysis how supply chain activities can add value to products or services.Value chain: a model for analysis how supply chain activities can add value to products or services. Value network: link between organization and its strategic and non strategic partners that forms its value.Value network: link between organization and its strategic and non strategic partners that forms its value.

10. 10 e- e-Business defined IBM (www.ibm.com): the transformation of key business process through the use of internet technologies.IBM (www.ibm.com): the transformation of key business process through the use of internet technologies.www.ibm.com Three alternative definitions (Chaffey, 2007):Three alternative definitions (Chaffey, 2007): ECEB EC=EB EC ECEB Electronic commerce has some degree of overlap with electronic business Electronic commerce is broadly equivalent to electronic business Electronic commerce is a subset of electronic business

11. 11 e- e-Commerce defined

12. 12 e- Includes non-financial transactions (not only imaging www.amazon.com ) such as customer request.Includes non-financial transactions (not only imaging www.amazon.com ) such as customer request. www.amazon.com Different perspective by Kalakota & Whinston 1997:Different perspective by Kalakota & Whinston 1997: –Communication perspective: delivery of information, products/services payment by e-means. –Business process perspective: application of ICT towards the automation of business transactions & workflows. –Service perspective: enabling cost cutting and increasing in speed and quality of service delivery. –Online perspective: buying & selling of products & information online.

13. 13 e- How significant? 1 of 5 people walks into department store in America to buy an electrical appliances will purchase online.1 of 5 people walks into department store in America to buy an electrical appliances will purchase online. 3 of 4 Americans start shopping for new cars online but eventually most end up buying them from traditional dealers.3 of 4 Americans start shopping for new cars online but eventually most end up buying them from traditional dealers. 50% of 60 millions consumers in Europe who have an internet connection bought products offline after having investigated prices and details online.50% of 60 millions consumers in Europe who have an internet connection bought products offline after having investigated prices and details online.

14. 14 e- How significant? $24 billion-worth of trade was done in 2004 on eBay.$24 billion-worth of trade was done in 2004 on eBay. In January 2004, 83.5m people, or just over half of the US’s internet users, visited either eBay or Amazon.In January 2004, 83.5m people, or just over half of the US’s internet users, visited either eBay or Amazon. It now hosts virtual “shop fronts” for some 150,000 stores worldwide.It now hosts virtual “shop fronts” for some 150,000 stores worldwide.

15. 15 e- How significant?

16. 16 e- The growth of B2B B2B: commercial transaction are between organization and other organizations.

17. 17 e- The growth of B2C B2C: commercial transaction are between organization and its customers.

18. 18 e- Drivers Tangible drivers:Tangible drivers: –Increasing sales  increasing revenue from: New customer, new marketNew customer, new market Existing customer (repeat selling)Existing customer (repeat selling) Existing customer (cross selling)Existing customer (cross selling) –Marketing cost reduction from: Customer service & marketing communicationCustomer service & marketing communication Online salesOnline sales –Supply-chain cost reduction from: Level of inventoryLevel of inventory Supplier competitivenessSupplier competitiveness Lead timeLead time –Administrative cost reduction from routine business processes.

19. 19 e- Drivers Intangible drivers:Intangible drivers: –Corporate & brand image –Rapid & responsive marketing communication –Improving customer service (feedback for customer needs) –Learning for the future –Ability to evaluate partners

20. 20 e- Barriers A survey from DTI, 2000 using 5 scale, 5=strongly agree, 1=strongly disagree:A survey from DTI, 2000 using 5 scale, 5=strongly agree, 1=strongly disagree: –e-commerce is not relevant to the business (3.6) –No tangible benefit (3.51) –Technology cost is too high (3.5) –Concern about confidentiality (3.22) –Concern about fraud (3.11)

21. 21 e- 1 st week souvenir Task 1: Please find two (2) Indonesian e-business and e-commerce implementers. To what extent you state whether they are e-business or e- commerce implementers?