Transcript eCommerce – Workshop #1

Tour I :
Introduction to
e-Business & e-Commerce
E. Widodo
e-
2
Objectives
• Know the meaning and scope of e-Business & eCommerce
• Understand the benefits and barriers in its
adoptions
e-
3
“Computer science is no more about
computers than astronomy is about
telescopes”
EW Dijkstra
e-
Contents
4
•
•
•
•
•
•
•
e-
Background
e-Business management
Terminology
Significance
B2B and B2C
Drivers
Barriers
5
e-
What next will be?
6
What about industry?
80
70
60
50
Electronically
Trade in the EU
40
30
Source: e-Business W@tch
20
(Survey 2005)
10
0
<95
e-
95
96
97
98
99
00
Pharma
Machinery
Construction
IT services
01
02
03
04+
Automotive
e-Business Management
7
•
Not only using ICT to automate existing processes, but also to
change these processes if necessary.
Value Network
B
Value Chain Value Chain Value Chain
Business Processes & Activities
•
e-
How to manage? Breadth knowledge of:
– Marketing & sales
– Product development
– Manufacturing
– Inbound & outbound logistics
– Human resources
C
8
Management response should be
• How should a electronic business strategy be
developed?
• 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?
e-
9
e-
Important terminologies
• e-Business: all electronically mediated
information exchanges, within an organization
&/ with external stakeholders supporting the
range of business processes.
• e-Commerce: <<only with external
stakeholder>> ditto.
• 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.
e-Business defined
10
• IBM (www.ibm.com): the transformation of key business
process through the use of internet technologies.
• Three alternative definitions (Chaffey, 2007):
EC
EB
EC=EB
EB
EC
e-
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
e-
e-Commerce defined
12
e-Commerce defined
• Includes non-financial transactions (not only imaging
www.amazon.com ) such as customer request.
• 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.
e-
13
How significant?
• 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.
• 50% of 60 millions consumers in Europe who
have an internet connection bought products
offline after having investigated prices and
details online.
e-
14
How significant?
• $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.
• It now hosts virtual “shop fronts” for some 150,000
stores worldwide.
e-
15
e-
How significant?
16
e-
The growth of B2B
B2B: commercial transaction are between
organization and other organizations.
17
e-
The growth of B2C
B2C: commercial transaction are between
organization and its customers.
18
e-
Drivers
• Tangible drivers:
– Increasing sales  increasing revenue from:
• New customer, new market
• Existing customer (repeat selling)
• Existing customer (cross selling)
– Marketing cost reduction from:
• Customer service & marketing communication
• Online sales
– Supply-chain cost reduction from:
• Level of inventory
• Supplier competitiveness
• Lead time
– Administrative cost reduction from routine business
processes.
19
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
e-
20
Barriers
• 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)
e-
1st week souvenir
21
Task 1:
Please find two (2) Indonesian e-business and
e-commerce implementers. To what extent you
state whether they are e-business or ecommerce implementers?
e-