006. e -Business & e-Commerce
0 likes147 views
This document is a lecture presentation prepared by Arianto Muditomo for the Perbanas Institute, focusing on e-business, its processes, and its impact on productivity and efficiency in various sectors. It covers topics such as the evolution of e-business, e-commerce definitions, business models, key challenges in online retail, and the significance of technology and networks in modern business operations. The document also outlines a range of references and sessions related to information systems and business strategies.
006. e -Business & e-Commerce
- 1. © 2017 Arianto Muditomo All Rights Reserved Copyright Notice: This presentation is prepared by Author for Perbanas Institute as a part of Author Lecture Series. It is to be used for educational and non- commercial purposes only and is not to be changed, altered, or used for any commercial endeavor without the express written permission from Author and/or Perbanas Institute. Appropriate legal action may be taken against any person, organization, or entity attempting to misrepresent, charge, or profit from the educational materials contained here. Authors are allowed to use their own articles without seeking permission from any person, organization, or entity.
- 2. arianto.muditomo@2017 Referrences: 1) Baltzan, Paige 2014. Business Driven Information Systems. 4th Edition. New York: McGraw-Hill. 2) Pearlson, Keri E. And Saunders Carol S. 2013. Managing and Using Information Systems: A Strategic Approach. 5th Ed. Danvers: John Wiley & Sons. 3) Turban, Efraim, Volonino, Linda, and Wood, Gregory 2013. Information Technology for Management. 9th Edition. Hoboken: John Wiley & Sons. 4) Turban, Efraim, Strauss, Judy, and Lai, Linda 2016. Social Commerce: Marketing and Technology Management. Hidelberg: Springer. 5) Xu, Jun and Quaddus, Mohammed 2013. Managing Information Systems: Ten Essential Topics. Amsterdam: Atlantis Press. 6) Turban, Rainer: Introduction to Information Systems Enablig and Transforming Business 2nd Ed., John Wiley & Sons.2009 7) Kenneth C. Laudon and Jane P. Laudon, Management Information Systems, Managing The Digital Firm, Pearson: Prentice Hall 2006 8) Business information systems : technology, development and management for the e-business / Paul Bocij, Andrew Greasley and Simon Hickie. – Fifth edition., © Pearson Education Limited 2015 1 • Session #1: Information System in Business • Session #2: IT Strategic Planning • Session #3: Business Information System • Session #4: Business Intelligence & Decision Support • Session #5: Ethics, Privacy and Security • Session #6: e-Business and e-Commerce • Session #7: Knowledge Management • Session #8: Enterprise Information System
- 3. arianto.muditomo@2017 2 § Explain how e-business processes improve productivity, efficiency and competitive advantage for business organizations and the public sector (government and nonprofit organizations.) § Describe five key challenges faced by online retail businesses in the business-to-consumer (B2C) marketplace. § Identify various ways that e-businesses are facilitating trade between buyers and sellers in the business-to-business (B2B) marketplace.
- 4. arianto.muditomo@2017 § Dot-Com Bubble Inflates (95-’00) According to many dot-com business models, the objective was to build up a customer base (market share), even if it meant selling at a loss in the short term (which many did) hoping they’d become profitable in the long run 3 § Dot-com Bubble Bursts and Deflates (‘00 – ’02) Most dot-coms were listed on the Nasdaq, or National Association of Securities Dealers Automated Quotation System (nasdaq.com). On March 10, 2000, the Nasdaq Composite index reached its peak of 5,048.62 points. From March 11, 2000, to October 9, 2002, the Nasdaq lost 78 percent of its value by dropping from 5046.86 to 1114.11 points as dot-com stock prices fell or lost all value
- 5. arianto.muditomo@2017 4 § An e-business is a company where a significant or substantial part of its business is based on the utilization of e-business processes. § E-commerce refers to the use of e-business process for the specific purpose of buying or selling goods and services. § An e-business process involves the use of electronic or digital technologies, often based on the Internet or World Wide Web, to accomplish some business task.
- 6. arianto.muditomo@2017 § An process that an organization conducts over a computer-mediated network v Production – procurement, ordering, stock replenishment, payment processing, production control, etc. v Customer-focused – marketing, selling, customer order processing, etc. v Internal or management-focused – employee service, training, recruiting, information sharing, etc. Hardware Software Telecommunication networks Support services Human resourcesE-Business Infrastructure = The share of total economic infrastructure used to support e-business processes and conduct e-commerce transactions.
- 7. arianto.muditomo@2017 E-BUSINESS APPLICATIONS 6 Internal Comm. Service Collaboration & Training Community Supply Chain Mgt Research, Info Gathering & Web Analytics Marketing Comm.
- 8. arianto.muditomo@2017 NEW BUSINESS RULES FROM E-BUSINESS § Customers determine everything. § Knowledge and information become more valuable than physical assets. § People want more choices of products and services. § Time is present time, distance is zero. § Technology and network determine how the business is conducted. Potential Benefits More product/service selections - Higher Productivity- Improved accessibility and convenience - Better availability of information - Shorter lead time - Improved communication – Stronger competitive position
- 9. arianto.muditomo@2017 8 Business-to-business (B2B). In B2B markets, both the sellers and the buyers are business organizations. Over 85 percent of e-commerce volume is B2B—far exceeding B2C commerce. Business-to-consumers (B2C). In B2C markets, the sellers are organizations, and the E-BUSINESS WEB SITE REQUIREMENTS AND CHALLENGES buyers are individual end users. B2C is sometimes called e-tailing (electronic retailing). Consumers-to-business (C2B). In C2B markets, consumers make known a particular need for a product or service, and then suppliers compete to provide that product or service at the requested price. Government-to-citizens(G2C) and others. In these markets, a government agency pro- vides information and services to its citizens via e-commerce technologies. Government units can engage in e-commerce with other government units— government- to-government (G2G) or with businesses— government-to-business (G2B). Business-to-government(B2G). In B2G markets, businesses sell goods and services to government agencies. Businesses that service government agencies must often follow special rules or regulations governing product specifications and marketing practices. Mobile commerce (m-commerce). Any of the above markets can take on an additional characteristic if the buyer and/or seller is using a mobile, handheld device. Transactions and activities are conducted using wireless networks and mobile apps. = Any transaction completed over a computer-mediated network that involves the transfer of ownership or rights to use goods or services.
- 10. arianto.muditomo@2017 9 End User Data Analytics Policy & Risk Governance E-Store Distributors Payment Processor Logistic/ Transportation Customer Services E-Commerce
- 11. arianto.muditomo@2017 10 e-Commerce Value Chain • Improving operational effectiveness versus improving strategic positioning • Effects on stages in the value chain • Inbound Logistics • Operations • Outbound Logistics • Marketing and Sales • After-Sales Service Source: Application of the Internet in Value Chain (Michael Porter) Reach (access and connection with customers) Richness (depth and detail of information to/from customers) Affiliation (advancing customers’ interests) Basic E-Commerce Strategies (P. Evans & T. Wurster, HBR, 1999) KEY BUSINESS DRIVER of e-Commerce Internet – Information – Collaboration – Agility – Speed - Service
- 12. arianto.muditomo@2017 § Offers personalized products/services § Enables customer self-service § Reduces lead time § Reduces overall cost for seller and customers § Improves utilization of resources throughout the supply chain § Increases customer satisfaction and loyalty § Expands to global marketplace
- 13. arianto.muditomo@2017 § Technology (hardware and software) § Business Process Reengineering § Agile production (mass customization) § Just-in-time system § Supply chain management § Business intelligence § Customer relationship management
- 15. © 2017 Arianto Muditomo All Rights Reserved