006. e -Business & e-Commerce

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arianto.muditomo@2017
Referrences:
1) Baltzan, Paige 2014. Business Driven Information Systems. 4th Edition. New York: McGraw-Hill.
2) Pearlson, Keri E. And Saunders Carol S. 2013. Managing and Using Information Systems: A Strategic Approach. 5th Ed.
Danvers: John Wiley & Sons.
3) Turban, Efraim, Volonino, Linda, and Wood, Gregory 2013. Information Technology for Management. 9th Edition.
Hoboken: John Wiley & Sons.
4) Turban, Efraim, Strauss, Judy, and Lai, Linda 2016. Social Commerce: Marketing and Technology Management. Hidelberg:
Springer.
5) Xu, Jun and Quaddus, Mohammed 2013. Managing Information Systems: Ten Essential Topics. Amsterdam: Atlantis Press.
6) Turban, Rainer: Introduction to Information Systems Enablig and Transforming Business 2nd Ed., John Wiley & Sons.2009
7) Kenneth C. Laudon and Jane P. Laudon, Management Information Systems, Managing The Digital Firm, Pearson: Prentice
Hall 2006
8) Business information systems : technology, development and management for the e-business / Paul Bocij, Andrew
Greasley and Simon Hickie. – Fifth edition., © Pearson Education Limited 2015
1
• Session #1: Information System in Business
• Session #2: IT Strategic Planning
• Session #3: Business Information System
• Session #4: Business Intelligence & Decision Support
• Session #5: Ethics, Privacy and Security
• Session #6: e-Business and e-Commerce
• Session #7: Knowledge Management
• Session #8: Enterprise Information System

2
§ Explain how e-business processes improve productivity, efficiency and competitive
advantage for business organizations and the public sector (government and nonprofit
organizations.)
§ Describe five key challenges faced by online retail businesses in the business-to-consumer
(B2C) marketplace.
§ Identify various ways that e-businesses are facilitating trade between buyers and sellers in
the business-to-business (B2B) marketplace.

§ Dot-Com Bubble Inflates (95-’00)
According to many dot-com business
models, the objective was to build up a
customer base (market share), even if it
meant selling at a loss in the short term
(which many did) hoping they’d become
profitable in the long run
3
§ Dot-com Bubble Bursts and Deflates (‘00 – ’02)
Most dot-coms were listed on the Nasdaq, or National Association of Securities
Dealers Automated Quotation System (nasdaq.com). On March 10, 2000, the
Nasdaq Composite index reached its peak of 5,048.62 points. From March 11,
2000, to October 9, 2002, the Nasdaq lost 78 percent of its value by dropping from
5046.86 to 1114.11 points as dot-com stock prices fell or lost all value

4
§ An e-business is a company where a significant or substantial part of its
business is based on the utilization of e-business processes.
§ E-commerce refers to the use of e-business process for the specific
purpose of buying or selling goods and services.
§ An e-business process involves the use of electronic or digital
technologies, often based on the Internet or World Wide Web, to accomplish
some business task.

§ An process that an organization conducts over a computer-mediated network
v Production – procurement, ordering, stock replenishment, payment processing, production
control, etc.
v Customer-focused – marketing, selling, customer order processing, etc.
v Internal or management-focused – employee service, training, recruiting, information
sharing, etc.
Hardware
Software
Telecommunication networks
Support services
Human resourcesE-Business Infrastructure
= The share of total economic infrastructure
used to support e-business processes and
conduct e-commerce transactions.

E-BUSINESS APPLICATIONS
6
Internal Comm.
Service
Collaboration &
Training
Community
Supply Chain
Mgt
Research, Info
Gathering &
Web Analytics
Marketing
Comm.

NEW BUSINESS RULES FROM E-BUSINESS
§ Customers determine everything.
§ Knowledge and information
become more valuable than
physical assets.
§ People want more choices of
products and services.
§ Time is present time, distance is
zero.
§ Technology and network
determine how the business is
conducted.
Potential Benefits
More product/service selections - Higher Productivity- Improved accessibility and convenience
- Better availability of information - Shorter lead time - Improved communication –
Stronger competitive position

8
Business-to-business (B2B). In B2B markets, both the
sellers and the buyers are business organizations. Over 85
percent of e-commerce volume is B2B—far exceeding
B2C commerce.
Business-to-consumers (B2C). In B2C markets, the
sellers are organizations, and the E-BUSINESS WEB
SITE REQUIREMENTS AND CHALLENGES buyers
are individual end users. B2C is sometimes called e-tailing
(electronic retailing).
Consumers-to-business (C2B). In C2B markets,
consumers make known a particular need for a product or
service, and then suppliers compete to provide that
product or service at the requested price.
Government-to-citizens(G2C) and others. In these markets, a
government agency pro- vides information and services to its
citizens via e-commerce technologies. Government units can
engage in e-commerce with other government units—
government- to-government (G2G) or with businesses—
government-to-business (G2B).
Business-to-government(B2G).
In B2G markets, businesses sell goods and services to government
agencies. Businesses that service government agencies must often
follow special rules or regulations governing product
specifications and marketing practices.
Mobile commerce (m-commerce). Any of the above markets can
take on an additional characteristic if the buyer and/or seller is
using a mobile, handheld device. Transactions and activities are
conducted using wireless networks and mobile apps.
= Any transaction completed over a computer-mediated network that involves the transfer of ownership or
rights to use goods or services.

9
End User
Data Analytics
Policy & Risk
Governance
E-Store
Distributors
Payment
Processor
Logistic/
Transportation
Customer
Services
E-Commerce

10
e-Commerce Value Chain
• Improving operational
effectiveness versus improving
strategic positioning
• Effects on stages in the value
chain
• Inbound Logistics
• Operations
• Outbound Logistics
• Marketing and Sales
• After-Sales Service
Source: Application of the Internet in Value
Chain (Michael Porter)
Reach (access and connection with
customers)
Richness (depth and detail of
information to/from customers)
Affiliation (advancing customers’
interests)
Basic E-Commerce Strategies
(P. Evans & T. Wurster, HBR, 1999)
KEY BUSINESS DRIVER of e-Commerce
Internet – Information – Collaboration – Agility – Speed - Service

§ Offers personalized
products/services
§ Enables customer self-service
§ Reduces lead time
§ Reduces overall cost for seller and
customers
§ Improves utilization of resources
throughout the supply chain
§ Increases customer satisfaction and
loyalty
§ Expands to global marketplace

§ Technology (hardware and software)
§ Business Process Reengineering
§ Agile production (mass customization)
§ Just-in-time system
§ Supply chain management
§ Business intelligence
§ Customer relationship management

006. e -Business & e-Commerce

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