Matakuliah
Tahun
Versi
: F0662/Web Based Accounting
: 2005
: 1/0
Pertemuan 2
How Electronic Chaning Business
1
Learning Outcomes
Pada akhir pertemuan, diharapkan mahasiswa
akan mampu :
• Menjelaskan Foundations of accounting
information systems, computer based
accounting information systems (TIK-2)
• How the “E” is chaning the business (TIK-2)
• Accounting information systems in the
electronic network environment (TIK-2)
2
Outline Materi
• Materi 1 Foundations of accounting
information systems, computer based
accounting information systems.
• Materi 2 How the “E” is chaning the
business
• Materi 3 Accounting information systems
in the electronic network environment
3
Electronic Commerce
Today
4
Electronic Commerce Myths
• Its all about technology (hence, the IT
Director must be the architect).
• E-Commerce is just about the Internet.
• It’s a technology revolution (evolution).
• You cannot make money from it.
• Websites do not provide too much
opportunities for sales.
Corboy. Martin (1999) E-Commerce: Dispelling the Myths and
Exploiting the Opportunities, Management Accounting,
December, p38-42.
5
Where will the growth be?
Travel
7600
Financial Services
5100
Hardware & Software
3900
Entertainment
2300
900
Books & Music
Clothing & footware
120
0
1000
2000
3000
4000
5000
6000
7000
Source: Forrester Research cited in Greenstein. Marilyn, and Feinman. Todd. M (2000)
Electronic Commerce: Security, Risk Management and Control, New York, McGraw Hill),p8.
8000
6
This lecture will cover the
following topics:
•
•
•
•
•
Definitions
Benefits
Cost savings
Obstacles
From EDI to e-enterprise
7
The many definitions of EC
Communication:
To deliver information,
goods/services and payments over
the telephone, network or other
means.
Business:
To automate business transactions
and work flows.
Service:
To cut service costs while improving
the quality of goods/services and
increasing the speed of service
delivery.
On-Line:
To provide the capability of
buying/selling products and
information over the internet.
8
Source: Kalakota. R and Whinston. A, (1997). Electronic Commerce. A Manager’s Guide. Addison Wesley, USA.
What is E-commerce
• Today E- commerce commonly relates to the subset of
transactions conducted via computers connected to
each other.
• I most cases the computers are connected via the
Internet.
• But what amounts to a computer?
– Hand held organisers
– Mobile phones
– Household devices
• What about a refrigerator that can sense it is running
out of milk? It could be programmed to place an order
at the local shop, pay for the order electronically, and
organise its delivery at a specified time.
9
Putting E-commerce in
Context
Technology Enabled Relationship Management
Communication
Channels
Your
Business
Value Chain
Customer
Products
Services
10
What Is E-Business?
EC + TERM + SCM
Supply Chain Management
“Virtual
Partners”
Informal Info.
Sharing Deals
BI, KM and CT
for External Info
Supply
Chain
Business
Partners
Product
& Service
Creation
Suppliers
Technology-Enabled Relationship Management
Admin &
Operations
Legally
Defined
Enterprise
Marketing,
Sales &
Service
Electronic Commerce Back Office
Distribution
Channels
Customers
Potential
Customers
& Influences
Logistics
&
Fulfilment
Potential
Competitors
“Just a URL &
a Dream”
Industry
Networks
Competitors
Web Commerce Front Office
11
Electronic Commerce Technology
Electronic Business
Electronic
commerce
Internet Commerce
Web Commerce
Electronic
Data
Interchange
Electronic
Funds Transfer
Source Orion group
12
Electronic Business
• Includes:
Electronic
Business
Electronic
Commerce
Internet
Commerce
Web
Electronic
– Electronic advertising
Commerce
Data
Interchange
Electronic
– Electronic buying and selling
Funds
Transfer
– Electronic distribution
– Direct client interaction for marketing and
customer service
– Groupware, e-mail, electronic collaboration
– Workflow, automated forms distribution
– Secure X.400 (e-mail) business transactions13
Electronic Commerce
• Includes :
- Advertising of products
or services
- Electronic shopping
- Direct after-sales service
- EDI
- VAN
Electronic
Business
Electronic
Commerce
Internet
Commerce
Web
Commerce
Electronic
Funds
Transfer
Electronic
Data
Interchange
14
Internet Commerce
• Includes
business conducted
only over the internet
Electronic
Business
Electronic
Commerce
Internet
Commerce
Web
Commerce
Electronic
Funds
Electronic
Transfer
Funds
Electronic
Data
Interchange
Transfer
15
Web Commerce
• Business conducted strictly
over the World Wide Web
• The www is the Dominant
medium for a large percentage
of internet commerce.
Electronic
Business
Electronic
Commerce
Internet
Commerce
Web
Commerce
Electron
ic Funds
Transfe
r
Electronic
Data
Interchange
16
Electronic Data Interchange
Electronic
Business
• EDI started in the early 60s
and precedes modern day
electronic commerce by
about 20 years
Electronic
Commerce
Internet
Commerce
Web
Commerce
Electronic
Funds
Transfer
Electronic
Data
Interchange
• EDI is one form of Electronic Commerce
– uses standard formats for a variety
of business documents
17
Electronic Funds Transfer
• EFT is an aspect of
Electronic Commerce
• Can be conducted over the internet
Electronic
Business
Electronic
Commerce
Internet
Commerce
Web
Commerce
Electronic
Data
Electronic
Interchange
Funds
Transfer
or private networks
• May or may not be conducted over the WWW
• Can use EDI standards or be done in non-EDI
fashion
18
E-commerce - Critical Success Factors
•
•
•
•
•
•
•
•
•
1
2
3
4
5
6
7
8
9
add value
focus on a niche …then expand
maintain flexibility
segment geographically
get the technology right
manage critical perceptions
provide exceptional customer service
ensure website can be found
understand internet culture
Huff, Wade, Parent, Schneberger &Newson 2000 19
Critical Success Factors
for
Adding Value
– Convenience
– Disintermediation
– Re-intermediation
– Price
– Choice
– QUALITY !!!!
20
Critical Success Factors –
Focus on a Niche and Then
Expand
• Don’t offer an average product and hope to compete
successfully with all the others.
• Barriers to entry into internet based businesses are low.
• A niche can be a starting point for growth.
21
Benefits of EC
• Reduces transaction
times;
• Improves customer
service (improves
response times);
• Reduces costs
(sales, marketing,
purchasing);
• Improves forecasting
(accuracy & currency
of data);
• Reduces inventory;
• Lower production
cycles;
• Competitive
advantage.
22
EC cost savings
• General Electric saved $US240,000 a year
in printing costs.
• British Telecom made a 5:1 return on its
investment.
• Hewlett Packard estimates it will reduce
administrative costs by $US 200 million.
Corboy. Martin (1999) E-Commerce: Dispelling the Myths and
Exploiting the Opportunities, Management Accounting,
December, p38-42.
23
Obstacles to EC
Organisational
Costs
1.
5. Effects of
disintermediation;
6. Logistics;
7. Investment;
8. Integration with existing
infrastructure;
9. Capacity planning;
10. Bandwidth.
2.
3.
4.
Integrating into legacy
systems;
Choosing the right
business model &
technology (Wilder,
1999).
Obtaining senior
management support;
Changing
organisational culture;
24
Obstacles to EC Maintenance
11. Recruiting traffic to your site.
12. 24 hour, 7 days a week availability.
13. Security & privacy issues
14. Building brand awareness;
15. Standards and Government regulations.
25
A question of balance
Technology
Getting funds;
Recruiting
expertise;
Retraining staff;
Keeping up with
technology;
Integration.
Business Needs
Staying ahead of competitors;
Staying ahead of customer
needs;
Changing culture to support
EC;
Changing business processes.
Adapted from Greenstein. Marilyn, and Feinman. Todd. M (2000)
Electronic Commerce: Security, Risk Management and Control, New
York, McGraw Hill, p12.
26
An evolution
Business
impact
E-Enterprise
E-Business
E-Commerce
Brochureware
1995
1997
1999
2000
27
First there was EDI
• In the 1970s, the first form of electronic
commerce was known as EDI.
• EDI can be defined as the transfer of structured
documents between computers.
• EDI is well established in the supply arena.
• The structure of EDI documents is defined by
two standards (ANSI X12 or UN EDIFACT).
• Many industries have developed their own
specific standards.
28
Electronic Data Interchange
Jan Damsgaard
Dept. of Informatics
Copenhagen Business School
http://www.cbs.dk/staff/damsgaard/
29
What is Electronic Data Interchange
A FAX message to announce the arrival of
a container to Cape Town port
A truck with a 40 ft. container loaded with 40 pallets of
premium beer in bottles is on its way to your terminal.
It will arrive there around noon. The container has to be loaded
for New York on the vessel “Queen Beatrix” of Holland Lines,
scheduled to depart from Cape Town on Wednesday August 14th.
The container number is HOLI673625 and the number of the
seal on the back door is 344523. The license plate of the truck is
JB-40-JZ, and it is owned by Wijngaarden trucking.
Regards John Broekema, BeerCo. Ltd.
30
What is Electronic Data
Interchange
The equivalent in EDI-like format
START_OF_MESSAGE;
RECEIVER: TheContainerTerminal;
SENDER: BeerCo: John Broekema;
TYPE: Container pre-arrival notice;
CONTAINER: HOLI673625:40ft.:40:344523
CARGO: 40 Pallets of premium beers in bottles;
TRUCK: JB-40-JZ: Wijngaarden Trucking: 970806:1200;
VESSEL: Holland Lines: Queen Beatrix: New York:
970814;
END_OF_MESSAGE;
31
Or in EDIFACT…
UNH+000001+ORDERS:2:932:UN'
BGM+220+AC6464'
DTM+4:20000305:102'
NAD+BY+6464326::91'
NAD+SU+1149646::91'
UNS+D'
LIN+1++PT-1073-R:VP'
QTY+21:1600'
LIN+2++PT-1073-S:VP'
QTY+21:1200'
UNT+11+000001'
Source: E-Commerce ©David Whiteley/McGraw-Hill, 2000
32
Outline
EDI is the future
•
•
•
•
•
Motivation
What is EDI?
Benefits of EDI
7 characteristics of EDI
Functional analysis of
EDI
• War and Peace in the
supply chain
33
An EDI setup
Information
Systems
Information
Systems
Converter
Converter
Communication
hard/software
Network
operator
Communication
hard/software
34
Key features of EDI
• The use of an electronic transmission medium
• The use of structured and formatted messages
based on agreed standards
• Relatively fast delivery from sender to receiver
• Direct processing by receiver’s application
software, usually resulting in some response to
the sending party
35
EDI benefits
•
•
•
•
Reduced re-keying of redundant information
Reduced manual reconciliation of different documents
Reduced sorting, distributing, and filling of documents
Reduced correction of errors caused by incorrect data
entry
• Reduced document mailing or telephoning of
information
• Reduced transmission time
36
Characteristics of EDI
•
•
•
•
EDI is interorganizational in nature
EDI links organizations by electronic means
EDI is innovative, abstract and complex
EDI relies on a mature and reliable
telecommunication infrastructure
• EDI standards are essential
• EDI has large network externalities
• EDI implementations are often based on third
party operated VANs
EDI
37
EDI is interorganizational in nature
• At least two organizations must agree to
exchange data between their
independent computerized systems
– High number and high frequency of
transactions
– Standard product or service
– Long term relationships
– Time critical
38
EDI links organizations by
electronic
means
• The organization’s
boundary
is depleted
and information about its interior is
exposed to trade partners
• The participating organizations must
commit resources to establish and
maintain a link, therefore EDI creates a
high degree of interdependence between
the adopting organizations.
39
EDI is innovative, abstract and
• complex
Innovative and learning intensive
– Use new technology to solve well known
problems
• Stand alone PC with modem (Manual EDI)
• Automatic data mapping
– Use well known technology to solve new
problems
• Existing systems modified
• New systems developed
40
EDI is innovative, abstract and
complex
• Abstract
– Hard to measure
• The business value of telephones
• The business value of mail service
41
EDI is innovative, abstract and
complex
• Mature organization
IS
IS
IS
EDI
IS
IS
IS
IS
42
EDI relies on a mature and reliable
telecommunication infrastructure
• The telecommunication infrastructure is
not under the control of the organization
– Illegal to send and receive data
– Power or network failures
– Security breaches
– Other regulations
43
EDI standards are essential
• Standards are the key
• Standards sets the structure and syntax of an
EDI message. It should also denote the
interpretation
• Several standards coexists
– Older standards
• UN/EDIFACT (UN promoted)
• EANCOM (EDIFACT subset tailor made for retail)
• ANSI X.12 (the US)
– More recent standards
• XML
• ebXML
44
The need for standards
Customer
Supplier
Best
Bread
Super
Food
Freshest
Fruit
– Three customers
– Four suppliers
– Twelve formats or
one standard
Save on
Food
Mighty
Meat
Sava
Store
Very
Veg
Source: E-Commerce ©David Whiteley/McGraw-Hill, 2000
45
EDI standards are essential
Interchange
I’change
Header
Message
Header
Message
Data
Segment
Message
Data
Segment
Message
I’change
Trailer
Message
Data
Segment Trailer
Data
Data
Data
Element Element Element
Source: E-Commerce ©David Whiteley/McGraw-Hill, 2000
46
Example EDIFACT interchange
Data segments
UNB+UNOA:1+6464:xx+1141:xx+ Interchange Header
BEN0273'
UNH+000001+ORDERS:2:932:UN' Message 1 Header
BGM+220+AC6464'
•
DTM+4:20000315:102'
•
NAD+BY+6464326::91'
•
NAD+SU+1149646::91'
•
UNS+D'
•
LIN+1++PT-1073-R:VP'
•
QTY+21:1600'
•
LIN+2++PT-1073-S:VP'
•
QTY+21:1200'
•
UNT+13+000001'
Trailer
UNH
Message 2
. . .
. . .
UNT
UNZ+1+BEN0273'
Trailer
Source: E-Commerce ©David Whiteley/McGraw-Hill, 2000
47
Order message
LIN Line item
LIN+1++PT-1073-R:VP'
LIN+2++PT-1073-S:VP'
Line item number 1 and 2
Item number
PT-1073-R and PT-1073-S
Item line number VP
i.e. vendor part number
QTY Quantity
QTY+21:1600'
QTY+21:1200'
Quantity qualifier 21
Quantity 1600 and 1200
i.e. ordered quantity
Source: E-Commerce ©David Whiteley/McGraw-Hill, 2000
48
EDI has large network
• externalities
Network externalities
– The more adopters the more
beneficial it is to adopt. Thus it is
better to wait!
– Metaphors: the telephone and VCR’s
EDI
• Critical mass of users
49
EDI implementations are often
based on third party operated
VANs
Customer
Super
Food
Save on
Food
Sava
Store
VANS
postbox
mailbox
Supplier
postbox
mailbox
Best
Bread
postbox
mailbox
Freshest
Fruit
postbox
mailbox
Mighty
Meat
postbox
mailbox
Very
Veg
postbox
mailbox
postbox
mailbox
Source: E-Commerce ©David Whiteley/McGraw-Hill, 2000
50
EDI implementations are often
based on third party operated
VANs
• Value added network provides different services
to subscribers
•
•
•
•
•
•
•
•
•
Time Independence
Protocol Independence
Time stamping
Collection of fees
Connection to other networks
Privacy, Security and Reliability
Message Storage and Logging
Message Validation:
Software and Consultancy
51
Coding
EAN/UPC codes
• Standard codes for grocery and general retail:
– Coded as Bar Codes on products
– Used in order processing / stock control
– Used in EDI messages.
• EAN
European Article Number
13 digit – 2 digit country code
• UPC
Universal Product Code (American)
12 digit – 1 digit country code
• Administered by National Article Numbering
Associations (ANA). See www.ean.be
52
EDI agreements
• Legal (and related) aspects:
– The point in its transmission and processing at
which a message will be deemed to be legally
binding
– The timescale for processing EDI massages.
– The time that message will be retained.
– The procedure for settling any disputes.
– The legal jurisdiction for settling disputes.
• Technical aspects
– The coding systems for identifying entities.
– The EDI standard that is to be employed.
– The network that is to be used.
Source: E-Commerce ©David Whiteley/McGraw-Hill, 2000
53
EDI Implementation
• A big difference between electronic transactions
and their paper equivalents is that with
electronic transactions there is no paperwork to
fall back on should anything go wrong - all
incoming transactions need to be secured
• Frequency of operation needs to meet the
requirements of the business cycle – it can be
daily, hourly or as required
Source: E-Commerce ©David Whiteley/McGraw-Hill, 2000
54
Next step!
• EDI is a learning intensive, complex, and
networked technology that is highly dependent
on standards, has high network externalities and
relays on a mature supporting infrastructure both
internally and externally.
• Next how may EDI be implemented to
support various business functions
internally as well as externally?
55
EDI in the trading cycle
Search
Pre-Sale
Negotiate
Order
Deliver
EDI
Execution
Invoice
Payment
After Sales
Settlement
After Sale
Source: E-Commerce ©David Whiteley/McGraw-Hill, 2000
56
Primary activities
Support activities
Porter’s value chain
Corporate infrastructure
Technology development
Human resources
Procurement
Profit margin
Inbound
Outbound
Production
logistics
logistics
Marketing
&
Services
Sales
57
An industry
Raw
material
Consumer
58
An example industry
Dairy
Supermarket chain
Corporate infrastructure
Corporate infrastructure
Technology development
Technology development
Human resources
Human resources
Procurement
Procurement
Outlet
Consumer
Supermarket
Inbound
logistics
Production
Outbound
logistics
Marketing
&
Sales
Profit margin
Services
Inbound
logistics
Production
Outbound
logistics
Marketing
&
Sales
Profit margin
Services
59
Inbound logistics
• Materials receiving, storing, and
distribution to manufacturing premises
• Examples of EDI support
• Suppliers have to maintain inventory at
customers’ premises
• Just-In-Time delivery
• Zero Inventory
• Automatic and direct updates of
suppliers’ computer systems.
Forecasting systems.
60
Production
• Transforming input into finished output
• Examples of EDI support
•
•
•
•
Customized mass production
Flexible production plan
Production schedule to suppliers
Just-In-Production
• Direct and automatic link to suppliers’
computer systems with production plans
(both short term and long term)
61
Outbound logistics
• Storing and distribution of products
• Examples of EDI support
•
•
•
•
Maintain inventory at buyers premises
Automatic updates of use
Just-In-Time delivery
Zero Inventory
• Direct links to customers inventory and
production scheduling systems
62
Sales and marketing
• Promotion and sales force
• Examples of EDI support
• Provision of software and hardware to customers
to enables use of EDI
• The possibility of EDI will often be a powerful sales
argument
• Triggers on sales variations
• Intangible benefits, such as corporate
image
63
Service
• Service to maintain or enhance product
value
• Examples of EDI support
• More accurate information
• More timely information (information travels before;
earlier after or with products)
• More information
• Electronic delivery and/or service advice
64
Corporate infrastructure
• Support of entire value chain, such a general
management, planning, finance, accounting,
legal service, government affairs, and quality
management
• Examples of EDI support
• Input to MIS, monitoring, reactive to proactive
• Triggers on variations in sales, logistics, and
operations
• Surveillance of timely data
65
Human resource management
• Recruiting, hiring, training and
development of human resources
• Examples of EDI support
• Freeing up of human resources that may be
reallocated with the organization
• Closer monitoring of employees’ efficiency
• Electronic evidence of employees’
behavior is available on-line
66
Technology development
• Improving product and manufacturing
processes
• Examples of EDI support
• Streamlining/innovation of
production processes supported by EDI
• From batch to order scheduled production
• Support Just-In-Time and Zero Inventory
implementations
• Learning circles in applying EDI
67
Procurement
• Function of purchasing input
• Examples of EDI support
• Procurement transformed by EDI use
• Fast response from suppliers
• Flexible updates of need for supply
• Setup EDI links with business partners and
negotiates business conditions (such as stockout levels and inventory levels, and delivery
frequency)
68
Spoke
EDI patterns
• Hubs and Spokes
order
Spoke
order
invoice
Hub
invoice
order
Spoke
invoice
– The Hub: the major manufacturer or retailer
– Spokes: suppliers to the hub.
order
invoice
Spoke
• EDI can be a condition of trade:
‘Therefore, when the Hub says, “thou shall
trade electronically”, the suppliers have little
option but to reply “anything you say, Sir”.’
• Arrangement can become problematic for a
supplier serving several hubs – each with
differing requirements
Source: E-Commerce ©David Whiteley/McGraw-Hill, 2000
69
EDI patterns
Andy
Agent
Instant
Insurance
Kent
Council
Benny
Bank
Sue
Shop
•Wholesale network
Henry’s
Office Supply
Wholesale
Penny’s
Pens
Pete’s
Paper
Pam’s
Pencils
70
EDI patterns
• Open User Community
– Networks
• Trading partners use differing VADS (possibly in
different countries)
– EDI Standards
• Trading partners using differing EDI standards
• Hubs defining subsets or dialects of EDI standards
– Product Coding
• Inconsistent/non-standard use of coding and/or
units
71
Classical examples
•
•
•
•
American hospital supply
APPOLO/SABRE airline reservation systems
From manufacturer to network hub (clothing)
Supermarket
– Vendor managed inventory (VMI)
– Customized promotion campaign
– Every Day Low Cost (EDLC), Zero Inventory (ZI),
Just-In-Time (JIT)
• Customized mass production
72
EDI, IOS, Internet, Ecommerce
EDI
Internet
e-Commerce
Materials
Supplier
Product
Supplier
Manufacturer /
Retailer
Customer
Source: E-Commerce ©David Whiteley/McGraw-Hill, 2000
73
Moving towards E-Business
• E-Commerce is the selling/buying of
goods & services over a network
(Fellenstein et al, 2000; 30).
• While E-Business is the use of networks to
transmit & receive information in a variety
of media (Fellenstein et al, 2000; 33).
74
The 3 pillars of EC
1. Information
2. Relationships
3. Transactions
75
Electronic Information
The web is a virtual repository of
documents:
• The key is how to find information;
• Design sites to ensure users find
information
• Provide up to date information.
76
Electronic Relationships
Building a site is not a guarantee for
business.
• Return patronage;
• Form partnerships with other
organisations;
77
Electronic Transactions
Not just brochureware:
• EC involves transactions (eg. shopping
carts);
• Need to integrate and change business
processes;
• Deal with the perception of security and
privacy risks.
Adapted from Peter Fingar, 1998 cited in Greenstein. Marilyn, and Feinman.
Todd. M (2000) Electronic Commerce: Security, Risk Management and Control,
New York, McGraw Hill, p18.
78
Difference between EC & EB
• At many EC sites customers are interacting with
a web site team, not sales staff.
• Customer loyalty is promoted by interaction with
trained and appropriate staff.
• A true e-business allows e-customers to interact
with all staff.
– The web site is an extension to your business.
• EB is customer, rather than management driven.
Siegel. David (2000) Futurize Your Enterprise, Canada, John Wiley & Sons.
79
E-business
•
•
•
•
Is an attitude shift.
Involves personalisation.
Focuses on the customer.
Involves getting
customers involved in
one aspect of the service
and then extending:
• Lines of communication
improve.
– eg. at marriott.com you can
order airline tickets online.
The next step is to offer
other travel arrangements.
– Management support.
– Bottlenecks will develop,
but then will disappear.
• Every one is involved, not
just the web
team/marketing.
• Automate business
processes.
80
Siegel. David (2000) Futurize Your Enterprise, Canada, John Wiley & Sons.
E-Enterprise
• An organisation that utilises traditional
bricks and mortar operations with
electronic commerce strategies.
• Why? The need to respond to customer
demands in real time.
• Business driven technology.
• Holistic, not fragmented approach.
Source: E-Enterprise Transformation (1999) Metagroup,
http:www.metagroup.com/metaview/mv0255/mv02555.html
81
E-Business support strategies
• Portals
– Auctions (ebay)
– Exchanges (corprocure)
– Office supplies (officedepot)
• Vortals
– E-Steel
• ASPs
– mySAP
– PeopleSoft
82
83
E-business objectives
1. Improve customer
satisfaction;
2. Improve customer
service;
3. Improve business
processes;
4. Reduce operating
costs;
5. Transform business
models;
6. Increase market
share;
7. Improve revenue
growth;
8. Increase profit
margins;
9. Improve brand
awareness;
10. Improve employee
productivity;
11. Learn more about
markets & customers.
12. Increase supply chain
efficiency;
13. Improve employee
communication.
Source: E-Business 100 (1999) InformationWeek, December 84
13,
http://www.informationweek.com/765/ebizchts.fhtml
Four I’s of E-commerce Strategy
Quality
Of
Offering
1.
Investigate
•
Competitor Strategies
•
Competitor alliances
•
Enabling Technologies
•
Market opportunities
•
Intelligence Plan of the Battle
space
4. Infiltrate
2. Imitate
•Competitor Successes
Multi-channel sales Distribution
•Competitor Business Innovations
Traditional and “E” Marketing
•Proven enterprise Architectures
Traditional and “E”Branding
•Gap analysis
Metcalf's Law
3. Innovate
•Mass Customisation/CRM
•New alliances
•New channels
•Enterprise Architecture
•Digital Innovation Strategy
Meta Group (2000)
85
Time to Market
Where are we doing ebusiness?
1.
2.
3.
4.
5.
Not just Web sites
(brochureware);
Web based e-commerce
(transactions);
Customer Relation
Management s/ware (can be
included in package by
ASPs);
Intranets;
Extranets;
6.
Business to business supply
chain sites;
7. Web based tools for custom
product configuration (eg.
IMCO);
8. Enterprise portal (supporting
business decisions on an
Intranet/Extranet);
9. EDI;
10. Call centre integration.
86
Tips from the experts
• Research local and overseas online strategies.
– This process is continuous.
– Exemplary managers keep track of their
industry, competitors, customer support &
tracking (Larson, 1999).
• Examine business processes;
• Develop EC strategies;
87
Tips from the experts
(cont.)
• Appoint an exclusive EC manager (too many
add this responsibility to someone’s long list of
tasks);
• Set timelines and incentives;
• Strengthen key partnerships;
• Remembers it’s a continuous process;
David. Natasha (1999) “Planning, Strategy vital to beat E-Business
88
Minefield”, December 3, Computerworld, page 6.
Tips from the experts
(cont.)
• EC is multi-disciplinary – you need experts from
all disciplines;
• The average lifecycle for a site is 90 to 100 days
(Larson, 1999).
89
New Businesses - Intermediaries
• Web based brokers or intermediaries
attempt to link customers to third parties.
– E-loan matches consumer profiles to
mortgage products.
– InsWeb provides customers with insurance
quotes.
– Auto-by-Tel and Microsoft Car Point provide
information on cars/dealers (Larson, 1999).
90
New businesses – Intermediaries
(cont.)
• Comparison sites are also intermediaries.
• These sites use robots to scan sites and
rank prices/products.
91
Survive or perish?
• If you do not move onto the Internet, you
will perish
• (Hogan, Vice President of General Motors).
• The Internet is challenging every
traditional business model.
92
E-Commerce Applications
93
E-Commerce Applications
•
•
•
•
•
Retail and Wholesale
Manufacturing
Marketing
Investment and Finance
Auctions
94
Retail and Wholesale
• Electronic retailing - the direct sale from
business to consumer through electronic
storefronts
• Cybermall - a single Web site that offers many
products and services at one Internet location
95
Summary
• Mahasiswa diwajibkan membuat summary
96