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Traditional vs e business
 

Traditional vs e business

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    Traditional vs e business Traditional vs e business Presentation Transcript

    • :: 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
    • :: 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
    • :: NEW WAY (e-way) E-COMMERCE MTIB, KPPK Sistem Maklumat Pasaran & 3 Antarabangsa
    • :: 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
    • :: 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
    • :: 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
    • :: 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
    • :: 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
    • :: 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
    • :: 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
    • :: 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
    • :: 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
    • :: 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
    • :: 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
    • :: 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
    • :: 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
    • :: 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
    • :: 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
    • :: 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
    • :: 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
    • :: 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
    • :: 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
    • :: 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
    • :: 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
    • :: 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
    • :: 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
    • :: 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
    • :: Conclusion The Best Way….. Conventional Way + e-Way MTIB, KPPK Sistem Maklumat Pasaran & 28 Antarabangsa