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E-Business: Chapter 1: Intro to E-B

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Course: E-Business
School of Electrical Engineering and Informatics

Published in: Business, Technology

E-Business: Chapter 1: Intro to E-B

  1. 1. Chapter 1 Introduction to e-business and e-commerce Page 1 | arry.arman@yahoo.com, 2013 and e-commerce Arry Akhmad Arman School of Electrical Engineering and Informatics arry.arman@yahoo.com Modified from original ppt of “E-Business and E-Commerce Management” book.
  2. 2. • Define the meaning and scope of e- business and e-commerce and their different elements • Summarize the main reasons for adoption of e-commerce and e-business and barriers that may restrict adoption Learning Outcomes Page 2 | arry.arman@yahoo.com, 2013 and barriers that may restrict adoption • Use resources to define the extent of adoption of the Internet as a communications medium for consumers and businesses • Outline the business challenges of introducing e-business and e-commerce to an organization.
  3. 3. Management Issues • How do we explain the scope and implications of e-business and e-commerce to staff? • What is the full range of benefits of introducing e- Page 3 | arry.arman@yahoo.com, 2013 benefits of introducing e- business and what are the risks? • How great will the impact of the Internet be on our business? What are the current and predicted adoption levels?
  4. 4. Case: Amazon.com Page 4 | arry.arman@yahoo.com, 2013
  5. 5. Case: eBay.com Page 5 | arry.arman@yahoo.com, 2013
  6. 6. Case: detik.com Page 6 | arry.arman@yahoo.com, 2013
  7. 7. Case: kompas.com Page 7 | arry.arman@yahoo.com, 2013
  8. 8. Case: Facebook.com Page 8 | arry.arman@yahoo.com, 2013
  9. 9. Case: tokobagus.com Page 9 | arry.arman@yahoo.com, 2013
  10. 10. Case: App Store Page 10 | arry.arman@yahoo.com, 2013
  11. 11. Case: e-book & e-magazine Page 11 | arry.arman@yahoo.com, 2013
  12. 12. E-Business Opportunities ReachReach • Over 1 billion users globally • Connect to millions of products Page 12 | arry.arman@yahoo.com, 2013 E- Business E- Business RichnessRichnessAffiliationAffiliation • Detailed product information on 20 billion + pages indexed by Google. Blogs, videos, feeds… • Personalised messages for users • Partnerships are key in the networked economy
  13. 13. The impact of the Internet on business • Andy Grove, Chairman of Intel, one of the early adopters of e- commerce, has made a meteorological analogy with the Internet. Page 13 | arry.arman@yahoo.com, 2013 Internet. • He says: The Internet is a typhoon force, a ten times force, or is it a bit of wind? Or is it a force that fundamentally alters our business? (Grove, 1996) Andrew Stephen ("Andy") Grove (born 2 September 1936), is a Hungarian-born American businessman, engineer, and author. He is a science pioneer in the semiconductor industry. He escaped from Communist- controlled Hungary at the age of 20 and moved to the United States where he finished his education. He later became CEO of Intel Corporation and helped transform the company into the world's largest manufacturer of semiconductors. Image source: wikipedia
  14. 14. E-business Risks • Making wrong decision about e- business investments • Provide poor online customer experience Page 14 | arry.arman@yahoo.com, 2013 experience Image source: www.infobarrel.com
  15. 15. Internet risks – what can go wrong with a transactional site? • Web sites that fail because of spike in visitor traffic • Hacker penetrating the security of the system Page 15 | arry.arman@yahoo.com, 2013 • A company emails customer without receiving their permission • Problems with fulfilment • E-mail customer-service enquiries from the web site don’t reach the right person Image source: www.infobarrel.com
  16. 16. Different Perspectives of EC • Communication • Business Process • Service • Online Page 16 | arry.arman@yahoo.com, 2013 • Online Image source: inkvibe.com
  17. 17. The distinction between Buy-side and Sell-side e-commerce Page 17 | arry.arman@yahoo.com, 2013
  18. 18. Types of sell-side e-commerce • Transactional e-commerce sites – www.mph.com.my • Services-oriented relationship-building web sites – www.perodua.com.my Page 18 | arry.arman@yahoo.com, 2013 – www.perodua.com.my • Brand-building sites – www.nokia.com • Portal or media sites – www.yahoo.com
  19. 19. Summary and examples of transaction alternatives between businesses, consumers and governmental organizations Page 19 | arry.arman@yahoo.com, 2013
  20. 20. Page 20 | arry.arman@yahoo.com, 2013 Figure 1.3 Dubit C2C site for a youth audience (www.dubit.co.uk)
  21. 21. E-Business • All electronically mediated information exchanges, both within an organization and with external stakeholders supporting the range of business processes Page 21 | arry.arman@yahoo.com, 2013 processes • E-business concepts: – Applied to strategy and operations – An adjective to describe businesses that mainly operate online
  22. 22. E-Business vs E-Commerce • E-commerce: All electronically mediated information exchanges between an organization and its external stakeholder Page 22 | arry.arman@yahoo.com, 2013 • Not solely restricted to the actual buying and selling of products, but also includes pre-sale and post-sale activities
  23. 23. E-Business vs E-Commerce • E-commercecovers outward-facing processes that touch customers, suppliers and external partners, including sales, marketing, order taking, delivery, customer service, purchasing of raw materials and supplies for production and procurement of indirect operating-expense items, such as office supplies. Page 23 | arry.arman@yahoo.com, 2013 supplies. • E-business includes e-commerce but also covers internal processessuch as production, inventory management, product development, risk management, finance, knowledge management and human resources. E-business strategy is more complex, more focused on internal processes, and aimed at cost savings and improvements in efficiency, productivity and cost savings. http://www.computerworld.com/s/article/53015/The_difference_between_e_business_and_e_commerce?pageNumber=1
  24. 24. E-Government • The application of e-business technologies to government and public services for citizens and businesses Page 24 | arry.arman@yahoo.com, 2013 • Cover services for: – Citizens – Suppliers – Internal communications Image source: ec.europa.eu
  25. 25. Three definitions of the relationship between e-commerce and e-business Page 25 | arry.arman@yahoo.com, 2013
  26. 26. UK rate of adoption of different digital media Page 26 | arry.arman@yahoo.com, 2013 Source: MORI Technology Tracker, January 2006. See www.mori.com/technology/techtracker.shtml for latest details
  27. 27. Drivers of Consumer InternetAdoption ContentContent CustomizationCustomization Cost reduction Cost reduction Page 27 | arry.arman@yahoo.com, 2013 CommunityCommunity ConvenienceConvenience ChoiceChoice
  28. 28. Barriers of Consumer Internet Adoption • No perceived benefit • Lack of trust • Security problems • Lack of skills Page 28 | arry.arman@yahoo.com, 2013 • Lack of skills • Cost Image source: www.charlesstone.com
  29. 29. Drivers of Business Adoption Increase Revenue Increase Revenue Page 29 | arry.arman@yahoo.com, 2013 Cost Reduction Cost Reduction DriversDrivers
  30. 30. Attitudes to business benefits of OnlineTechnologies Page 30 | arry.arman@yahoo.com, 2013
  31. 31. Cost/efficiency and competitiveness drivers Cost/efficiency drivers • Increasing speed with which supplies can be obtained Competitiveness drivers • Customer demand • Improving the range and quality of services offered Page 31 | arry.arman@yahoo.com, 2013 obtained • Increasing speed with which goods can be dispatched • Reduced sales and purchasing costs • Reduced operating costs quality of services offered • Avoid losing market share to businesses already using e-commerce.
  32. 32. Tangible and Intangible Benefits Tangible benefits Intangible benefits  Increased sales from new sales leads giving rise to increased revenue from: – new customers, new markets – existing customers (repeat-selling) – existing customers (cross-selling).  Marketing cost reductions from: – reduced time in customer service  Corporate image communication  Enhancement of brand  More rapid, more responsive marketing communications including PR  Faster product development lifecycle enabling faster response to market needs  Improved customer service Page 32 | arry.arman@yahoo.com, 2013 – reduced time in customer service – online sales – reduced printing and distribution costs of marketing communications.  Supply-chain cost reductions from: – reduced levels of inventory – increased competition from suppliers – shorter cycle time in ordering.  Administrative cost reductions from more efficient routine business processes such as recruitment, invoice payment and holiday authorization.  Improved customer service  Learning for the future  Meeting customer expectations to have a web site  Identifying new partners, supporting existing partners better  Better management of marketing information and customer information  Feedback from customers on products
  33. 33. Adoption of Internet and e-business Services across Europe Page 33 | arry.arman@yahoo.com, 2013 Source: Eurostat, Community Survey on ICT usage in enterprises, eEurope (2005) Information Society Benchmarking Report, © European Communities 2005, http://europa.eu.int/information_society
  34. 34. Page 34 | arry.arman@yahoo.com, 2013
  35. 35. KeyCategories of InternetApplications in Indonesia vs Global Page 35 | arry.arman@yahoo.com, 2013 Source: http://www.teknojurnal.com/2011/03/11/perkembangan-internet-di-indonesia-pada-tahun-2010/
  36. 36. Barriers to Development of OnlineTechnologies Page 36 | arry.arman@yahoo.com, 2013
  37. 37. The McKinsey 7S framework • The McKinsey 7S Framework is a management model developed by well-known business consultants Robert H.Waterman, Jr. andTom Peters (who also developed the MBWA-- "Management By Page 37 | arry.arman@yahoo.com, 2013 Source: Adapted from Waterman et al. (1980) the MBWA-- "Management By Walking Around" motif, and authored In Search of Excellence) in the 1980s. • This was a strategic vision for groups, to include businesses, business units, and teams.
  38. 38. The McKinsey 7S framework • The 7S are structure, strategy, systems, skills, style, staff and shared values. • The model is most often used as a tool to assess and monitor changes in the internal situation of an organization. Usage • Improve the performance of a company • Examine the likely effects of future changes within a company • Align departments and processes during a merger or acquisition • Determine how best to implement a proposed strategy The Seven Interdependent Elements Page 38 | arry.arman@yahoo.com, 2013 • OBJECTIVE OFTHE MODEL (To analyze how well an organization is positioned to achieve its intended objective) The Seven Interdependent Elements • The basic premise of the model is that there are seven internal aspects of an organization that need to be aligned if it is to be successful • Hard Elements – Strategy – Structure – Systems • Soft Elements – Shared Values – Skills – Style – Staff
  39. 39. Exercise • Please identify one company for each the types of e-commerce below: – Transactional e-commerce sites – Services-oriented relationship-building web sites Page 39 | arry.arman@yahoo.com, 2013 – Brand-building sites – Portal or media sites • Refer to Figure 1.2 and identify a company for each the category provided.
  40. 40. End of Slides Page 40 | arry.arman@yahoo.com, 2013

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