Cost reduction

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Transcript Cost reduction

Slide 1.1
Introduction to e-business and
Slide 1.2
Intro Discussion
Apa yang ada di benak Anda saat mendengar
kata-kata e-commerce?
Mengapa Anda mengambil kuliah e-commerce?
Apa yang Anda harapkan dari kuliah ini?
Slide 1.3
Learning outcomes
Define the meaning and scope of e-business and e-commerce
and their different elements
Summarize the main reasons for adoption of e-commerce and ebusiness and barriers that may restrict adoption
Use resources to define the extent of adoption of the Internet as
a communications medium for consumers and businesses
Outline the business challenges of introducing e-business and ecommerce to an organization.
Slide 1.4
Management issues
How do we explain the scope and implications of e-business and
e-commerce to staff?
What is the full range of benefits of introducing e-business and
what are the risks?
How great will the impact of the Internet be on our business?
What are the current and predicted adoption levels?
Slide 1.5
Siapa yang pernah belanja online?
Siapa yang memiliki lapak online?
Slide 1.6
Internet business opportunities
 Over
1 billion users globally
 Connect to millions of products
 Compare with marketing/channelling via TV or other media
 Detailed
product information on 20 billion + pages indexed
by Google. Blogs, videos, feeds…
 Personalised messages for users
 Interaction
 Partnerships
are key in the networked economy
Slide 1.7
The impact of the Internet on business
Andy Grove, Chairman of Intel, one of the early
adopters of e-commerce, has made a
meteorological analogy with the Internet. He
The Internet a typhoon force, a ten times force, or
is it a bit of wind? Or is it a force that
fundamentally alters our business? (Grove, 1996)
Slide 1.8
E-business risks
Making wrong decision about e-business investments
 Wrong
market approach
 Issues regarding e-business implementation
Provide poor online customer experience
Slide 1.9
Internet risks – what can go wrong with a
transactional site?
Web sites that fail because of spike in visitor traffic
Hacker penetrating the security of the system
A company emails customer without receiving their
Problems with fulfilment
E-mail customer-service enquiries from the web site
don’t reach the right person
Slide 1.10
E-commerce Definition
E-commerce: All electronically mediated information
exchanges between an organization and its
external stakeholder
Not solely restricted to the actual buying and selling
of products, but also includes pre-sale and post-sale
Slide 1.11
Different perspectives of EC
Business process
The application of technology towards the automation of
business transactions and workflows
Delivery of information, product/services or payment by
electronic means
Enabling cost cutting at the same time as increasing the
speed and quality of service delivery
The buying and selling of products and information online
Figure 1.1
The distinction between buy-side and sell-side e-commerce
Slide 1.13
Types of sell-side e-commerce
(p 10)
Transactional e-commerce sites
 Bhineka,
Services-oriented relationship-building web sites
 Asuransi,
lazada, dll
consulting, sekolah
Brand-building sites
Portal or media sites
Summary and examples of transaction alternatives between businesses,
consumers and governmental organizations
Figure 1.2
Slide 1.15
The application of e-commerce technologies to
government and public services for citizens and
Cover services for:
 Citizens
 Suppliers
 Internal
Slide 1.16
All electronically mediated information exchanges,
both within an organization and with external
stakeholders supporting the range of business
E-business concepts:
 Applied
to strategy and operations
 An adjective to describe businesses that mainly operate
Figure 1.4
Three definitions of the relationship between e-commerce and e-business
Figure 1.5
UK rate of adoption of different digital media
Source: MORI Technology Tracker, January 2006. See for latest details
Slide 1.19
Drivers of consumer Internet adoption
Content: Detailed, in depth information about
Customization: personalization (recommendation,
Community: discussion about products & services
Convenience: select, purchase and use 24x7
Choice: wider range of products
Cost reduction: low cost place of purchase
Slide 1.20
Barriers of consumer Internet adoption
No perceived benefit
Lack of trust
Security problems
Lack of skills
Slide 1.21
Drivers of business adoption
Potential for increased revenue
Cost reduction
Figure 1.6
Attitudes to business benefits of online technologies
Source: DTI (2002)
Slide 1.23
Cost/efficiency and competitiveness
Cost/efficiency drivers
Increasing speed with which supplies can be obtained
Increasing speed with which goods can be dispatched
Reduced sales and purchasing costs
Reduced operating costs.
Competitiveness drivers
Customer demand
Improving the range and quality of services offered
Avoid losing market share to businesses already using e-commerce.
Slide 1.24
Tangible and intangible benefits
Tangible benefits
Increased sales from new sales leads giving
rise to increased revenue from:
new customers, new markets
existing customers (repeat-selling)
existing customers (cross-selling).
Marketing cost reductions from:
reduced time in customer service
online sales
reduced printing and distribution
costs of marketing communications.
Supply-chain cost reductions from:
reduced levels of inventory
increased competition from suppliers
shorter cycle time in ordering.
Administrative cost reductions from more
efficient routine business processes such as
recruitment, invoice payment and holiday
Intangible benefits
Corporate image communication
Enhancement of brand
More rapid, more responsive marketing
communications including PR
Faster product development lifecycle
enabling faster response to market needs
Improved customer service
Learning for the future
Meeting customer expectations to have a
web site
Identifying new partners, supporting
existing partners better
Better management of marketing
information and customer information
Feedback from customers on products
Figure 1.8
Adoption of Internet and e-business services across Europe
Source: Eurostat, Community Survey on ICT usage in enterprises, eEurope (2005) Information Society Benchmarking Report, © European Communities 2005,
Slide 1.26
Barriers to adoption
Business are not using Internet for particular ebusiness applications
Figure 1.9
Barriers to development of online technologies
Source: DTI (2002)
Figure 1.10
The McKinsey 7S framework
Source: Adapted from Waterman et al. (1980)
Slide 1.29
Topics for Mid Exam
Pengenalan e-business dan e-commerce
Fundamental e-commerce
Infrastruktur e-business
Strategi e-business
Slide 1.30
Topics for Final Exam
Supply Chain Management
Customer Relationship Management
Change Management
Analisis dan Pemodelan Data
Desain e-Business
Implementasi dan Pemeliharaan
Slide 1.31
Please identify one company for each the types of
e-commerce below:
 Transactional
e-commerce sites
 Services-oriented relationship-building web sites
 Brand-building sites
 Portal or media sites
Refer to Figure 1.2 and identify a company for
each the category provided.
Slide 1.32
Electronic commerce traditionally refers to electronically
mediated buying and selling
Sell-side e-commerce involves all electronic business
transactions between an organization and its customers, while
buy side e-commerce involves transactions between an
organization and its suppliers
‘Electronic business’ is a broader term, referring to how
technology can benefit all internal business processes and
interactions with third parties. This includes buy-side and sellside e-commerce and the internal value chain
Slide 1.33
The monetary value of e-commerce for businessto-business (B2B) transactions greatly exceeds that
for business-to-consumer transactions (B2C)
The main business drivers for introducing ecommerce and e-business are opportunities for
increased revenues and reducing costs, but many
other benefits can be identified that improve
customer service and corporate image
Slide 1.34
Consumer adoption of the Internet is limited by lack
of imperative, cost of access and security fears.
Business adoption tends to be restricted by
perceptions of cost, making return on investment
difficult to quantify
Introducing new technology is not all that is required
for success in introducing e-commerce and business.
Clearly defined objectives, creating the right culture
for change, mix of skills, partnerships and
organizational structure are arguably more
Slide 1.35
Halaman 22-23, North West Supplies