06 ho e-business e commerce

7/25/2019 06 HO E-Business E Commerce

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E-Commerce & E-BusinessZaldy Adrianto

[email protected]

Internet Technology and

The Digital FirmInternet rapidly becoming theinfrastructure of choice for e-commerce and e business

It offers businesses an easier way tolink with other businesses andindividual with a very low cost

Internet Technologyand The Di ital Firm

Direct communication between trading

partners: Disintermediation removesintermediate layers, streamlinesprocess

Round-the-clock service: Web sitesavailable to consumers 24 hours a day

Internet Technologyand The Di ital Firm

Extended distribution channels:Outlets created for attracting customers whootherwise would not patronize

Distribution of information basedproducts : Software, Music, Video with a very lowcost.

Reduced transaction costs: Costs ofsearching for buyers, sellers, etc. reduced

How internet reduces transactioncosts

Transaction Traditional Internet

Checking a Bank Account 1.08 0.13

Answering a Customerquestion 10 - 45 0.10 - 5

Trading 100 shares of stock 100 9.95

Correcting an employeerecord 128 2.32

Sending an advertisingBrochure 0.75 - 10.00 0 - 0.25

Paying a Bill 2.22 - 3.32 0.65 - 1.10

Source : Laudon, 2006

New Business Modelsand Value Propositions

Business Model:

Defines an enterprise

Describes how the enterprise delivers aproduct or service

Shows how the enterprise creates wealth


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CarsdirectThe Changing Economics

of InformationInternet shrinks information asymmetry

Information asymmetry: One partyin a transaction has moreinformation than the other

Increases richness: Depth and detailof information

Increases reach: Number of peoplecontacted

The Changing Economicsof Information

Internet Business Model

Virtual storefront: Sells goods directly

to consumer.Amazon.com, Bhinneka.com

Transaction broker: Buyers view rates,terms from various source.

E*Trade.com, expedia.com

Amazon.comEtrade


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Internet Business

ModelOnline Marketplace: Concentrates information fromseveral providers. Buyer and seller can meet, search forproduct, display product, and establish prices for thoseproducts.

eBay.com, Priceline.com

Content provider: Creates revenue through providingclient digital content such as news, music, Photos, etc for afee, or revenue generating from advertising

WSJ.com, CNN.com, MP3.com, iTunes,GettyImages.com

iTunes

Getty Images

Internet BusinessModel

On-line service provider: Provides

service, support for hardware, softwareproducts. Generates revenue fromsubscription or transaction fees, fromadvertising or from collectingmarketing information.

Xdrive.com, salesforce.com

Salesforce.comInternet Business

Model

Virtual community: Chat room, on-line meeting place

Facebook.com, Friendster.com,

iVillage.com

Portal:Initial point of entry to Web,specialized content, services

Yahoo.com, MSN.com, Detik.com


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Digitalization degree

Brick-and-mortar (or old-economy), Referto pure physical organization (enterprise).

Virtual (or pure-play) organizations,businesses which are based purely on theinternet

Click-and-mortar (or click-and-brick)

organizations, businesses which arerepresent a hybrid model.

Categories of Electronic

CommerceBusiness-to-customer (B2C):Retailingof products and services directly toindividual customers

Business-to-business (B2B): Sales ofgoods and services among businesses

Consumer-to-consumer (C2C):Individuals use Web for private sales orexchange

Business-To-Consumer

Customer-centered retailing: Closer,yet more cost-effective relationshipwith customers

Web sites: Provide information onproducts, services, prices, orders


Disintermediation: The removal of

organizations or business processlayers responsible for certainintermediary steps in a value chain

Reintermediation: The shifting of theintermediary role in a value chain to anew source

Benefits of Disintermediationto the Consumer


Interactive Marketing and Webpersonalization:

Interactive Marketing, Marketers useinteractive features of the web pages to hold

consumers attention or to capture detailedinformation about consumer tastes and interest.

Clickstream Tracking, collect data oncustomers activities at website and store themin the log.


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Web personalization

Benefits of using individual salespeople

Form lasting relationship withconsumers

Dramatically lower costs

Amazon.com : Customer who boughtthis book also bought...

web personalization

Web personalization: Business-To-Consumer

Blogs

Popular terms for Weblog

Informal yet structured web site whereindividuals can publish stories, opinions,and links to others website

Another promising web-based tools formarketing

Business-To-BusinessElectronic Commerce

80 % of B2B e-commerce is based onproprietary system for Electronic DataInterchange (EDI).

Companies are increasingly turning tothe internet because it provides a muchmore flexible and low cost platform.

Business-To-BusinessElectronic CommerceFor example Procurement Process

Businesses can now use internet tolocate the most low cost supplier,

search online catalog, negotiate withsuppliers, place orders, etc

E-procurement over the internetprovides new opportunity for loweringcost.


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Business-To-Business

Electronic CommerceAutomation of purchase, sale transactionsfrom business to business

Private industrial networks (privateexchanges): Coordination between companiesfor efficient supply chain management andcollaborative activities

Net marketplaces: On-line marketplaces,point-to-point connections, integratedinformation

A Private Industrial

Network

www.VWGroupSupply.com

A Net Marketplace

Examples: exostar, chemconnect,transora.com and foodtrader.com.

Exostar exostar customer


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Electronic Commerce

Payment SystemsPayment System DescriptionDigital Credit Card Payment Secure services for credit card payment on internet

Digital Wallet Software stores card and other information

Accumulated Balance PaymentSystem

Accumulates micropayment purchases as debit balance to bepaid periodically

Stored value payment systemEnables consumers to make instant payments based on the value

stored in digital account

Digital Cash Digital Currency used for micropayments or larger purchases

Peer to peer payment systemSends money via web to persons or vendors not set up to

accept credit card payments

Dig ital Checking Provides e lectronics check with secure d igi tal si gnature

Electronic Billing presentment andpayment

Support electronic payment for online and physical storepurchases

Rekber KASKUS

ELECTRONIC BUSINESSAND THE DIGITAL FIRM

How Intranets Support Electronic

BusinessBenefits

Group collaboration

Functional applications

Supply chain management

Functional Applicationsof Intranet

Finance and accountingHuman resources

Sales and marketing

Manufacturing and production

Functional Applicationsof Intranet

Finance and Accounting

General ledger reporting

Project costing

Annual reports

Budgeting


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Human Resources

Company

On-line publishing of corporate policy

Job postings and internal job transfers

Company telephone directories, andtraining

Employees

Healthcare

Employee savings

Competency tests

Sales and Marketing

Competitor analysis

Price updates

Promotional campaigns

Sales presentations

Sales contracts

Manufacturing andProduction

Quality measurements

Maintenance schedules

Design specifications

Machine outputs

Order tracking

Business ProcessInte ration

Intranets to improve coordination

among internal business process

Extranets to coordinate process sharedwith customers, business partners, andother organizations.

Internet andcollaborative commerceUse of digital technologies to enablemultiple organizations to design,develop, move and manage productcollaboratively.

A firms engaged in collaborativecommerce with its supplier andcustomers can achieve a new level ofefficiency

CollaborativeCommerce


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collaborative

commerce

http://ecommerce.typepad.com

Management Opportunities,challenge, and solution

Opportunities

Firms are using internet andintranet technology to create :

New products and services New channels for sales and

marketing

Entirely new business

ManagementChallen es

Finding a successful internet businessmodel Organizational change challenges Trust, Security and Privacy

Management Solutions

Determining how Internet technology canprovide value for business

Managing Business Process Changes Safeguarding Security and Privacy

Recent DevelopmentWeb 2.0

Collaboration and sharing.

Wikis, Blogging, tagging, syndication,decentralization etc.

HTTP://BLOGS.VOICES.COM/THEBIZ/

2006/09/WEB_20_DEFINITION.HTML


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Web 2.0

H TT P: // WW W. E-V ET SU IS SE .U ZH .C H H TT P: // RO SSD AW SO NB LO G. CO M

yahoofinance http://webanywhere.co.uk

widgets

Future Development

Web 3.0

Semantic web

a group of methods and technologies toallow machines to understand the meaning -or "semantics" - of information on the WorldWide Web

http://www.w3.org/2001/sw/SW-FAQ

web 3.0 (semantic web)Web 3.0 is going to be like having a personalassistant who knows practically everythingabout you and can access all the information

on the Internet to answer any question.HTTP://COMPUTER.HOWSTUFFWORKS.COM/WEB-302.HTM

VISIT: HTTP://WWW.W3.ORG/STANDARDS/SEMANTICWEB/

AND

HTTP://ALLTHINGSD.COM/20090526/WELCOME-TO-WEB-30/

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06 ho e-business e commerce

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