Slide 1.1 CHAPTER 1 Introduction to e-business and e-commerce.
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Transcript of Slide 1.1 CHAPTER 1 Introduction to e-business and e-commerce.
Slide 1.1
CHAPTER 1Introduction to e-business and e-commerce
Slide 1.2
Intro Discussion
Apa yang ada di benak Anda saat mendengar kata-kata e-commerce?
Mengapa Anda mengambil kuliah e-commerce? Apa yang Anda harapkan dari kuliah ini?
Slide 1.3
Learning outcomes 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
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.
Slide 1.4
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-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?
Slide 1.5
Discussion
Siapa yang pernah belanja online? Siapa yang memiliki lapak online?
Slide 1.6
Internet business opportunities
Reach: Over 1 billion users globally Connect to millions of products Compare with marketing/channelling via TV or
other media Richness
Detailed product information on 20 billion + pages indexed by Google. Blogs, videos, feeds…
Personalised messages for users Interaction
Affiliation Partnerships are key in the networked economy
Slide 1.7
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. He says:
The Internet 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)
Slide 1.8
E-business risks
Making wrong decision about e-business investments Wrong market approach Issues regarding e-business
implementation Provide poor online customer experience
Slide 1.9
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
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
Slide 1.10
E-commerce Definition
E-commerce: All electronically mediated information exchanges between an organization and its external stakeholder
Not solely restricted to the actual buying and selling of products, but also includes pre-sale and post-sale activities
Slide 1.11
Different perspectives of EC
Communication Delivery of information, product/services or
payment by electronic means Business process
The application of technology towards the automation of business transactions and workflows
Service Enabling cost cutting at the same time as
increasing the speed and quality of service delivery Online
The buying and selling of products and information online
Figure 1.1 The distinction between buy-side and sell-side e-commerce
Slide 1.13 Types of sell-side e-commerce (p 10) Transactional e-commerce sites
Bhineka, lazada, dll Services-oriented relationship-building
web sites Asuransi, consulting, sekolah
Brand-building sites www.nokia.com, Unilever
Portal or media sites www.yahoo.com
Figure 1.2 Summary and examples of transaction alternatives between businesses, consumers and governmental organizations
Slide 1.15
E-government
The application of e-commerce technologies to government and public services for citizens and businesses
Cover services for: Citizens Suppliers Internal communications
Slide 1.16
E-business
All electronically mediated information exchanges, both within an organization and with external stakeholders supporting the range of business processes
E-business concepts: Applied to strategy and operations An adjective to describe businesses that
mainly operate online
Figure 1.4 Three definitions of the relationship between e-commerce and e-business
Figure 1.5 UK rate of adoption of different digital mediaSource: MORI Technology Tracker, January 2006. See www.mori.com/technology/techtracker.shtml for latest details
Slide 1.19
Drivers of consumer Internet adoption Content: Detailed, in depth information
about products Customization: personalization
(recommendation, alerts) Community: discussion about products &
services Convenience: select, purchase and use
24x7 Choice: wider range of products Cost reduction: low cost place of purchase
Slide 1.20
Barriers of consumer Internet adoption No perceived benefit Lack of trust Security problems Lack of skills Cost
Slide 1.21
Drivers of business adoption Potential for increased revenue Cost reduction
Figure 1.6 Attitudes to business benefits of online technologiesSource: DTI (2002)
Slide 1.23
Cost/efficiency and competitiveness drivers
Cost/efficiency drivers Increasing speed with which supplies can be obtained Increasing speed with which goods can be dispatched Reduced sales and purchasing costs Reduced operating costs.
Competitiveness drivers Customer demand Improving the range and quality of services offered Avoid losing market share to businesses already using e-
commerce.
Slide 1.24
Tangible and intangible benefitsTangible 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– 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.
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 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
Figure 1.8 Adoption of Internet and e-business services across EuropeSource: Eurostat, Community Survey on ICT usage in enterprises, eEurope (2005) Information Society Benchmarking Report, © European Communities 2005, http://europa.eu.int/information_society
Slide 1.26
Barriers to adoption
Business are not using Internet for particular e-business applications
Figure 1.9 Barriers to development of online technologiesSource: DTI (2002)
Figure 1.10 The McKinsey 7S frameworkSource: Adapted from Waterman et al. (1980)
Slide 1.29
Topics for Mid Exam
Pengenalan e-business dan e-commerce Fundamental e-commerce Infrastruktur e-business E-environment Strategi e-business E-procurement E-marketing
Slide 1.30
Topics for Final Exam
Supply Chain Management Customer Relationship Management Change Management Analisis dan Pemodelan Data Desain e-Business Implementasi dan Pemeliharaan
Slide 1.31
Exercise
Please identify one company for each the types of e-commerce below: Transactional e-commerce sites Services-oriented relationship-building web
sites Brand-building sites Portal or media sites
Refer to Figure 1.2 and identify a company for each the category provided.
Slide 1.32
Summary
1. Electronic commerce traditionally refers to electronically mediated buying and selling
2. Sell-side e-commerce involves all electronic business transactions between an organization and its customers, while buy side e-commerce involves transactions between an organization and its suppliers
3. ‘Electronic business’ is a broader term, referring to how technology can benefit all internal business processes and interactions with third parties. This includes buy-side and sell-side e-commerce and the internal value chain
Slide 1.33
Summary
4. The monetary value of e-commerce for business-to-business (B2B) transactions greatly exceeds that for business-to-consumer transactions (B2C)
5. The main business drivers for introducing e-commerce and e-business are opportunities for increased revenues and reducing costs, but many other benefits can be identified that improve customer service and corporate image
Slide 1.34
Summary
6. Consumer adoption of the Internet is limited by lack of imperative, cost of access and security fears. Business adoption tends to be restricted by perceptions of cost, making return on investment difficult to quantify
7. Introducing new technology is not all that is required for success in introducing e-commerce and business. Clearly defined objectives, creating the right culture for change, mix of skills, partnerships and organizational structure are arguably more important
Slide 1.35
Tugas
Halaman 22-23, North West Supplies