Traditional vs e business

  • 126 views
Uploaded on

 

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
126
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
11
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. :: CHALLENGES & TRENDS • Uncertainties in the global economy • Inclusion of China into WTO • Implementation of AFTA • Global sourcing for cheaper/higher quality of finished goods and components • Impact on new technologies (ICT) in business process • Information is available at your fingertips • Consumers taste and preferences are dynamically changing • New criteria for international competitiveness : Timely Delivery Of Service (besides price & quality) • LATEST! : Post-War Iraq, SARS Outbreak, Avian Flu and War on Terrorism MTIB, KPPK Sistem Maklumat Pasaran & 1 Antarabangsa
  • 2. :: Conventional Trade Promotional Activities • Conventional Way Participation in general/specialised trade fairs and exhibitions worldwide Participation in Trade and Investment Missions Participation in Specialised Selling Missions Participation in Malaysian Products Exhibition / In-Store Promotion / Promotion Booths MTIB, KPPK Sistem Maklumat Pasaran & 2 Antarabangsa
  • 3. :: NEW WAY (e-way) E-COMMERCE MTIB, KPPK Sistem Maklumat Pasaran & 3 Antarabangsa
  • 4. :: WHAT IS e-COMMERCE? • Abbreviation of “electronic commerce” • Putting “e” into all commerce activities • “The use of computers and electronic network to do business” • Transacting Online – “buying and selling of goods/services via the Internet” • “Business transactions conducted electronically” • “Electronic exchange of information, goods, services & payments” MTIB, KPPK Sistem Maklumat Pasaran & 4 Antarabangsa
  • 5. :: BROADER DEFINITION • WTO’s Definition “All commercial transactions involving the transfer of information, products, services or payments performed through telecommunication networks, using electronic means. It comprises indirect e-commerce (electronic ordering of tangibles) and direct e- commerce (online delivery of intangibles).” SOURCE : World Trade Organisation (www.wto.org) MTIB, KPPK Sistem Maklumat Pasaran & 5 Antarabangsa
  • 6. :: BROADER DEFINITION • ITC’s Definition The distribution, marketing and sale or delivery of goods and services by electronic means including business-to-consumer (B2C) and business-to-business (B2B) transactions. It is not confined to the purchase of a product but it includes all information or services that a company may offer to its customers over the Internet from pre- purchase information to after-sales service and support.” SOURCE : International Trade Centre, WTO/UNCTAD (www.intracen.org) MTIB, KPPK Sistem Maklumat Pasaran & 6 Antarabangsa
  • 7. :: UNDERSTANDING THE CONCEPT “All forms of business transactions conducted over public and private networks” SOURCE : Inter-Agency Task Force On e-Commerce, The Government Of Malaysia • Electronic trading of goods • Electronic procurement & services • Collaborative designs • Online delivery of digital • Engineering & content manufacturing • Electronic funds transfer • Online sourcing • Electronic share trading • Direct consumer • Electronic bills of lading marketing • Commercial auctions • After sales services MTIB, KPPK Sistem Maklumat Pasaran & 7 Antarabangsa
  • 8. :: UNDERSTANDING THE CONCEPT • e-Commerce is:  NOT just about the Internet  NOT just about paying online  NOT entail actual payment online  NOT necessarily done over the Internet • “electronic” medium:  Telephone (e.g. phone banking)  Private network (e.g. ATM)  Credit cards  The Internet itself! MTIB, KPPK Sistem Maklumat Pasaran & 8 Antarabangsa
  • 9. :: e-COMMERCE vs e-BUSINESS • e-Commerce defined:  The process of buying and selling goods or services through the Internet (ICT as intermediary or enabler) or other electronic network. • e-Business defined:  The utilization of ICT and Internet-based applications in existing business processes, business strategies and business value- chain. It influences all aspects of companys strategy and business transactions, hence helping streamlining operations and improve profits while ensuring a sustainable competitive advantage. MTIB, KPPK Sistem Maklumat Pasaran & 9 Antarabangsa
  • 10. :: e-COMMERCE vs e-BUSINESS Mathematically, EB = EC + BI + SCM + CRM + ERPWhere: EB = e-Business EC = e-Commerce BI = Business Intelligence SCM = Supply Chain Management CRM = Customer Relationship Management ERP = Enterprise Resource Planning MTIB, KPPK Sistem Maklumat Pasaran & 10 Antarabangsa
  • 11. :: e-COMMERCE vs e-BUSINESS E-BUSINESS SUPPLY-CHAIN E-COMMERCE MANAGEMENT ENTERPRISE RESOURCE PLANNING CUSTOMER BUSINESS RELATIONSHIP INTELLIGENCE MANAGEMENT SOURCE : Strauss, J & Frost, R (2001), eMarketing MTIB, KPPK Sistem Maklumat Pasaran & 11 Antarabangsa
  • 12. :: NEW WAYS TO DO BUSINESS • Emergence of new business intermediaries (portals, B2B e-marketplaces) • “Old Economy” VS “New Economy”,  i.e. “brick & mortar” VS “virtual enterprises” • Information is available immediately • Expand existing market & access new markets • Customise clients’ requirements (add value) • More services are web-enabled (travel, banking, health, etc.) THUS, e-Commerce redefines criteria for international competitiveness : Price, Quality, Time and Service MTIB, KPPK Sistem Maklumat Pasaran & 12 Antarabangsa
  • 13. :: IN THE BUSINESSE-Commerce is applicable in external & internalaspects of the business:• EXTERNAL – Facilitate marketing activities and widen the business prospects through:  Customers/clients (e-mail)  Supplier/distributor/agents (portals, e-marketplace)  Government (e-procurement)  Electronic transaction (e-banking, auction, etc)• INTERNAL – Effective information management:  Business information (marketing, intelligence)  Financial information (integration & control)  Stock/inventory control (database)  Efficient production (ERP, CRM systems, etc) MTIB, KPPK Sistem Maklumat Pasaran & 13 Antarabangsa
  • 14. :: MECHANISMS• B2B (Business-To-Business)  Portals (TradeNex, MyBiz, Globalsources, etc)• B2C (Business-To-Consumers)  AsiaTravelMart, WatchesPlanet, Teddybearland• G2B (Government-To-Business)  e-Perolehan• G2C (Government-To-Consumers)  e-Services, MyEG.com, Rilek.Com• P2P (Peer-To-Peer)  Napster, Kazaa, Lelong.Com.My MTIB, KPPK Sistem Maklumat Pasaran & 14 Antarabangsa
  • 15. :: BEAUTY OF e-COMMERCE • “24-7-365” factor • Worldwide reach-out in real time • Make the size of a company irrelevant • Make the location of a company irrelevant • Do most business transactions online : E- Banking, E-Payment, E-Procurement etc. • Increase customer feedback towards faster and better business decision making • Lower cost of transaction MTIB, KPPK Sistem Maklumat Pasaran & 15 Antarabangsa
  • 16. :: A COMPARISON CONVENTIONAL E-COMMERCE• Limited coverage • 24 hours daily, all over the world• High advertising cost • Low advertising cost• High traveling & accommodation costs • Save on first time business traveling costs• High postage cost • Lower costs using• High cost of exhibiting computers/Internet• Slow communication • Low cost for Virtual Exhibition process • Direct contact to• Wide marketing coverage importers/buyers• Longer marketing channel • Flexible wide marketing• Low profit margin coverage • High profit margin MTIB, KPPK Sistem Maklumat Pasaran & 16 Antarabangsa
  • 17. :: TOOLS FOR TRADE • E-Commerce Site Website with e-commerce facilities (B2C) - online catalogues, payment gateway, shopping cart, e-forms • Electronic mail (E-Mail) Communicating through the net, e-mail marketing, mailing lists • Electronic Data Interchange (EDI) Customs declaration, inventory control, logistics, warehousing, ports clearance, shipping/vessel tracking • Electronic Funds Transfer & Payment EFTPOS, e-Cash, Online Letter of Credit, etc MTIB, KPPK Sistem Maklumat Pasaran & 17 Antarabangsa
  • 18. :: TOOLS FOR TRADE • Participation in Trade portals / e- marketplaces / business exchanges Business-To Business (B2B) Business-To-Consumer (B2C) • Web-based Directories/Listing Trade/Industry Associations Online Business Directories • Global sourcing/supply chain management TiGER, RosettaNet, virtual manufacturing • Participation in Virtual Trade Fairs / Shows / Exhibitions Cost effective, impressive images MTIB, KPPK Sistem Maklumat Pasaran & 18 Antarabangsa
  • 19. :: POTENTIAL OF E-COMMERCE• Global e-Commerce revenue has been forecasted to RM17.5 trillion in 2005  Business-To-Business (B2B) – RM16.4 trillion  Business-To-Consumers (B2C) – RM1.1 trillion• Total revenue from e-Commerce activities in Malaysia will be RM35.3 billion in 2005  Business-To-Business (B2B) - RM29.6 billion  Business-To-Consumers (B2C) – RM5.7 billion SUMBER : International Data Corporation (IDC)• Total Internet users:  Worldwide – 655 million (2002), 941 million (2005)  Malaysia – 5.7 million (2002), 8 million (2005) SUMBER : E-Commerce & Development Report 2002 by UNCTAD, UN MTIB, KPPK Sistem Maklumat Pasaran & 19 Antarabangsa
  • 20. :: ROUND THE GLOBE • Countries which are actively using e-commerce:  ASIA PACIFIC : Hong Kong, Japan, Taiwan, South Korea, China  NORTH AMERICA: USA & Canada  WESTERN EUROPE : Germany, UK, France & Holland • High potential to use e-Commerce:  WEST ASIA: UAE, Iran, Qatar  South Africa  Eastern Europe  AMERICA LATIN : Argentina, Brazil, Mexico, Chile SOURCE : TC MATRADE MTIB, KPPK Sistem Maklumat Pasaran & 20 Antarabangsa
  • 21. :: MALAYSIAN EXPORTERS INTERNET PENETRATION AND CONNECTIVITY Malaysian Exporters Breakdown By E-Mail/Website FACILITIES TOTAL % OF TOTAL WITH E-MAIL 6,069 86.96 WITH WEBSITE 4,253 60.94 WITH E-MAIL AND 4,100 58.75 WEBSITE EXPORTERS REGISTERED 7,027 100 WITH MATRADE :: Information correct as at 1 October 2003 SOURCE : MATRADE MTIB, KPPK Sistem Maklumat Pasaran & 21 Antarabangsa
  • 22. :: SOME RELEVANT ISSUES• SECURITY : Always be The Reason• COST : Many companies put very conservative approach and skeptical consideration• TECHNOLGICAL KNOW-HOW : How to choose the best solutions / service providers for my company?• KNOWLEDGE : Lack of relevant knowledge as e- commerce develops rapidly• MINDSET : e-Commerce is “owned” by the (Gen-X, Gen-Y, etc..) guys… “wiser” / “experienced” people always left out MTIB, KPPK Sistem Maklumat Pasaran & 22 Antarabangsa
  • 23. :: E-COMMERCE INCENTIVES • SMIDEC’s financial assistance programs e-Manufacturing Grant E-Commerce Grant (DISCONTINUED WEF 27 JUNE 2002) RosettaNet Grant • Double deduction incentive for promotion of exports: Participation in Virtual Trade Shows Participation in trade portals for promotion of local products MTIB, KPPK Sistem Maklumat Pasaran & 23 Antarabangsa
  • 24. :: MORE INCENTIVES... • Tax on income derived from offshore trading (buying and selling of foreign goods to non- residents) through websites was reduced from 28% to 10% for a period of 5 years, effective from 20th October 2001 • The costs of developing websites for business are allowed as an annual deduction of 20% for income tax purpose for 5 years, effective from year assessment 2002 • Market Development Grant (MATRADE)  50% matching grant up to RM60,000 for the cost of promotion/advertising through the Internet MTIB, KPPK Sistem Maklumat Pasaran & 24 Antarabangsa
  • 25. :: SEARCH ENGINES • Web Directories  About.com (www.about.com)  Ask Jeeves (www.ask.com)  Look Smart (www.looksmart.com) • Leading Search Engines  Google (www.google.com)  Teoma (www.teoma.com)  Inktomi (www.inktomi.com) • Meta Search Engines  Vivisimo (www.vivisimo.com)  Metacrawler (www.metacrawler.com) • Search Engines Guides & Directories  Search Engine Watch (www.searchenginewatch.com)  Search Engine Guide (www.searchengineguide.com) MTIB, KPPK Sistem Maklumat Pasaran & 25 Antarabangsa
  • 26. :: BUSINESS INFORMATION GATEWAYS • Directory listings of business-related sites, compiled by business information specialists • Some useful sites  Datamonitor (www.datamonitor.com)  Economist Intelligence Unit (www.eiu.com)  Euromonitor (www.euromonitor.com)  ITC Product Maps (www.p-maps.org)  Market Research (www.marketresearch.com)  Mindbranch (www.mindbranch.com)  Business.Com (www.business.com)  ExportAll.Com (www.exportall.com  Yellow Pages (www.yellowpages.com)  The Edge Daily (www.theedgadaily.com) MTIB, KPPK Sistem Maklumat Pasaran & 26 Antarabangsa
  • 27. :: OTHERS • Malaysian Government Sites  Malaysian Civil Service Link (mcsl.mampu.gov.my)  e-Perolehan (www.eperolehan.com.my)  MITI (www.miti.gov.my) • Trade-related organisations  World Trade Organisation (www.wto.org)  International Trade Centre (www.intracen.org)  Federation Of International Trade Associations (www.fita.org) • E-Commerce-related  E-Commerce/IT news (malaysia.cnet.com, www.ecommercetimes.com)  RosettaNet (www.rosettanet.org.my)  B2Business (www.b2business.net)  Building a website (www.sellitontheweb.com) MTIB, KPPK Sistem Maklumat Pasaran & 27 Antarabangsa
  • 28. :: Conclusion The Best Way….. Conventional Way + e-Way MTIB, KPPK Sistem Maklumat Pasaran & 28 Antarabangsa