Fundamental Theory of eBusiness

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e-Business

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Introduction to E-Business

DEFINISI



_E-business

_{dapat didefinisikan sebagai kegiatan bisnis yang}

dilakukan secara otomatis dan semiotomatis dengan menggunakan

sistem informasi komputer (Lou Gerstner CEO IBM).



_E-business

_{dapat didefinisikan penerapan teknologi informasi dan}

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Introduction to E-Business

PENGERTIAN



_{E-bisnis memungkinkan suatu perusahaan untuk berhubungan}

dengan sistem pemrosesan data internal dan eksternal mereka secara

lebih efisien dan fleksibel. E-bisnis juga banyak dipakai untuk

berhubungan dengan suplier dan mitra bisnis perusahaan, serta

memenuhi permintaan dan melayani kepuasan pelanggan secara

lebih baik.



_{E-bisnis memberi kemungkinan untuk pertukaran data di antara}

satu perusahaan dengan perusahaan lain, baik lewat web, Internet,

intranet, extranet atau kombinasi di antaranya.



_E

_-

_{bisnis tidak hanya menyangkut e-dagang (perdagangan}

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Implement

‘Traditional’:Traditional’: ImplementImplement

Opportunity

Understand Electronic Business

Implementation

Planning

‘

‘E-Business’:E-Business’:

 _{Definitions of the future are ‘fuzzy’}

 _{Permanent and unpredictable change in the} business and technology environment

 Time to market and speed are major competitive factors  _{Continuous learning & fast adaptation is required}

Characteristics of an “Electronic Business journey”:

 _{Definitions are clear}

 No change in the business and technology environment

 _{High time pressure}  _{Continuous learning}

Traditional business organization ‘develop step by step’:

Business vs e-Business

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E-Business:

Improving business

performance

performance through low cost and through low cost and open connectivity:

open connectivity:

• New technologies in the value chainNew technologies in the value chain

• Connecting value chains across Connecting value chains across businesses

businesses

in order to :

• Improve service/reduce costsImprove service/reduce costs

• Open new channelsOpen new channels

• Transform competitive landscapes_{Transform competitive landscapes}

E-Commerce

E-Commerce:

• marketing

• selling

• buying of products and services on the Internet products and services on the Internet

e-Business vs e-Commerce

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MODEL E-Business :



_{B2B (Business to Business) : Interaksi teknologi antara}

perusahaan dengan perusahaan.



_{B2C (Business to Consumers) : Interaksi teknologi}

antara perusahaan dengan konsumen.



_{B2E (Business to Employe) : Interaksi teknologi antara}

perusahaan dengan tenaga kerja.



_{B2G (Business to Government) : Interaksi teknologi}

antara perusahaan dengan pemerintah.



_{G2G (Government to Government) : Interaksi teknologi}

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MANFAAT E-Bisnis

 _{Bagi organisasi}

 Memperluas pasar

 Menekan biaya pengiriman

 Terwujudnya spesialis bisnis

 Menekan biaya sediaan dan produksi

 Dapat menerapkan kostumisasi produk

 Menekan waktu pembayaran dan penerimaan produk

 Meningkatkan produktivitas

 Menekan biaya telekomunikasi

 _{Bagi konsumen}

Kesempatan transaksi lebih luas dan tak kenal waktu  Memberikan pilihan produk dan pemasok lebih banyak

 Memungkinkan memperoleh produk lebih murah

 Pengiriman lebih cepat (real time)

 Memperoleh informasi produk lebih cepat

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MANFAAT E-Bisnis

_{Bagi masyarakat luas}

 Memungkinkan berbisnis dari rumah

 Beberapa barang bisa dijual lebih murah

 Memperoleh layanan yang mudah untuk diwujudkan

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Sistem Informasi yang Menjalankan Fungsi

Bisnis



_{Sistem Informasi Pemasaran (e-Marketing)}



_{Sistem Informasi Manufacturing (e-MRP)}



_{Sistem Informasi Sumber Daya Manusia (e-HRD)}



_{Sistem Informasi Akuntansi (e-Accounting)}



_{Sistem Informasi Keuangan (e-Financial)}

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SECURITY FACTOR E-Business

 _{E-Business sistem alami memiliki risiko keamanan yang lebih besar daripada}

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INFRASTRUCTURE E-Business

 _{Jaringan telekomunikasi yang banyak dipergunakan oleh perusahaan untuk}

melakukan e-Business antara lain : 1. Local Area Network (LAN)

2. Wide Area Network (WAN) 3. Virtual Private Network (VPN)

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Experimentation and Learning

Supplier network Customer network

Customer

Short Strategy Formulation loops

Continuous experimentation through specific Solutions Prototyping

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1997-1999 - e-Business Mania

Strikes!



_{E-Business becomes a major economic force}



_{NASDAQ hits 5,000}



_{Venture capital in abundance}



_{Focus on new economy, new business models, growth}

potential



_{no attention to traditional fundamentals}



_{bricks and mortar viewed as liability}



_{Traditional businesses shake in their boots at the threat of}

new non-traditional nimble bold competitors



_{Dot.Com start-ups in every field}

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B2B and B2C - Huge Potential

The Projected Canadian Electronic Commerce

Market

Source: IDC

C

Business to Consumer Business to Business

The Projected US Electronic Commerce

Market Source: IDC

U

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Online Retail Sales - Likewise!

Growth of Online Retail Sales (US)

$0

Books & Music Travel

Entertainment Ticket Event Sale

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2000 - The Dot.Com Bubble

Bursts!

 _{The Demise of Dot Com Retailers.}_{Weak financials, intense competition, and}

investor flight will drive many of today's online retailers out of business in 2000. Those that survive must refocus funding on building hard assets to achieve scale, service, and speed.

 _{Wall Street will run out of patience.}_{Financial markets exasperated with non-existent}

online profits will turn a deaf ear to persistent "investment mode" rhetoric and soundly punish merchants who bleed red ink. Recent stock disasters like Value America and eToys -- whose market caps as of January 11, 2000, are down $3.1 billion and $7.7 billion respectively from 1999 highs -- serve as bad omens for online stores that lack a unique approach or technology.

 _{The revenge of the brick-and-mortars will begin.}_{The narrowing of the playing field}

in 2000 will rationalize but not resolve online retail competition. It will usher in a new era characterized by a few large players that exploit deep customer relationships and a presence across multiple channels to entrench themselves. To measure their success, these firms will ditch new economy platitudes in favor of unfashionable old metrics like margins, profits, and customer retention costs.

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Valuations Plummet

Amazon.com - AMZN

Priceline.com - PCLN

Pets.com - IPET

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Same Trend in Canada

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Lessons Learned



_{Fundamentals important, bottom line important}



_{Traditional bricks and mortar assets can represent}

significant competitive strengths



_{logistics, inventory, distribution}



_{choice in terms of customer access}



_{strength and brand}



_{e-Business becomes an element of overall business}

strategy - not the total business strategy



_{e-Business still widely seen as a way of}

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‘Bricks and Clicks’ - A Hybrid

Model

Traditional

“Bricks and Mortar”

Pure Web - Dot.com

“Clicks”

Hybrid

“Bricks and Clicks”

Combines strengths from traditional and

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Phases of e-Business

Development

Four stage model in E-Business maturity relates business value to e-business leverage

E-Business Leverage

Over 50% are in the channel phase of

E-Business development with a web presence but no

infrastructure tie-in. Over 50% are in the channel

phase of

E-Business development with a web presence but no

infrastructure tie-in.

Just under 15% are in the integration phase. Connections to suppliers and customers are fully

E-Business enabled. Just under 15% are in the

integration phase. Connections to suppliers and customers are fully

E-Business enabled.

Brochureware and buying /selling

Integrate with customers and suppliers

Industry transformation, achieve competitive

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The Journey Requires Investment

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The Journey Requires Investment

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The Benefts of e-Business

 _{Generate additional Revenues}

 _{New markets}  _{New products}  _{New customers}

 _{Reduce Costs (Integration and ‘Collaboration’)}

 _{Process efficiency}

 _{Reduce IT variety and -complexity}  _{Synergies with other initiatives}

 _{Customer Retention (‘Added Services’ and ‘Virtual Community’)}

 _{Know more about your customers}  _{Integrated channel management}  _{Proactive and personalized offerings}

 _{Improve Image / Position Brand}

 _{Applying innovative technologies}  _{Leadership enterprise}

 _{Address younger customer segments}

 _{Not to miss the boat}

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e-Business and Brand



_{Research from Mainspring…}



_{Online financial services customers are initially}

motivated by price sensitivity, but that influence

declines as they realize the benefits of convenience



_{Brand is more important online than offline}



_{When researching insurance purchases online, 56% of}

customers went straight to name-brand sites as compared

with 32% for aggregation sites.



_{When initiating a purchase online, 60% went to}

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Online Insurance

Growth of Internet-Enabled Insurance (US)

1997 1998 1999 2000 2001

Source: Forrestor

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When will you offer financial advice online?

Why will you offer financial advice online?

0 10 20 30 40 50

Competitive pressures Help customers make

decisions Enhance customer

relationships Customers want online advice

To improve our online offering

% Source: Forrestor

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Online Advice vs Face to Face

 _{Forrester: Few financial companies believe that online advice will}

replace the human advisor. Except for a small group of low-end, self-directed customers, consumers are expected to continue to seek advice from financial advisors. More than half of our respondents believe that online advice solutions will never be a compelling alternative to working with one of their advisors, even as the technology improves.

 _{Almost half of financial institutions believe that online advice will enable}

advisors to deliver additional value to their customers.

 _{As automated advice vendors piece together the elements of the new}

advice creation process,we believe that use of online advice will surge.“

 _{Customers don ’t care about the data-entry and number-crunching}