Matakuliah Tahun Versi : J0324 / Sistem e-Bisnis : 2005 : 02/02 Pertemuan 2 Understanding e-Commerce and e-Business 1 Learning Outcomes Pada akhir pertemuan ini, diharapkan mahasiswa akan mampu : • menyebutkan fungsi dan perbedaan antara e-Commerce dan e-Business 2 Outline Materi • Electronic Commerce: Definitions and Concepts • The EC Framework, Classification and Content • E-commerce Business Plans, Cases and Models • Benefits and Limitations of EC 3 The Interdisciplinary Nature of EC • Major EC disciplines – Computer science – Marketing – Consumer behavior – Finance – Economics – Management information systems 4 The Future of EC • 2004—total online shopping and B2B transactions in the US between $3 to $7 trillion by 2008: – number of Internet users worldwide should reach 750 million – 50 percent of Internet users will shop – EC growth will come from: • B2C • B2B • e-government • e-learning • B2E • c-commerce 5 E-commerce Business Models • Business models—a method of doing business by which a company can generate revenue to sustain itself • Examples: – Name your price – Find the best price – Dynamic brokering – Affiliate marketing 6 E-commerce Business Plans and Cases • Business plan: a written document that identifies the business goals and outlines the plan of how to achieve them • Business case: a written document that is used by managers to garner funding for specific applications or projects; its major emphasis is the justification for a specific investment 7 Structure of Business Models • Business model: A method of doing business by which a company can generate revenue to sustain itself 8 Structure of Business Models (cont.) • Revenue model: description of how the company or an EC project will earn revenue – Sales – Transaction fees – Subscription fees – Advertising – Affiliate fees – Other revenue sources 9 Typical Business Models in EC 1. Online direct marketing 2. Electronic tendering systems tendering (reverse auction): model in which a buyer requests would-be sellers to submit bids, and the lowest bidder wins 3. Name your own price: a model in which a buyer sets the price he or she is willing to pay and invites sellers to supply the good or service at that price 10 Typical Business Models in EC (cont.) 4. Affiliate marketing: an arrangement whereby a marketing partner (a business, an organization, or even an individual) refers consumers to the selling company’s Web site 5. Viral marketing: word-of-mouth marketing in which customers promote a product or service to friends or other people 11 Typical Business Models in EC (cont.) 6. Group purchasing: quantity purchasing that enables groups of purchasers to obtain a discount price on the products purchased 7. SMEs: small to medium enterprises 8. Online auctions 12 Typical Business Models in EC (cont.) 8. Product and service customization customization: creation of a product or service according to the buyer’s specifications 8. Electronic marketplaces and exchanges 9. Value-chain integrators 10. Value-chain service providers 13 Typical Business Models in EC (cont.) 12. Information brokers 13. Bartering 14. Deep discounting 15. Membership 16. Supply chain improvers Business models can be independent or they can be combined amongst themselves or with traditional business models 14 Benefits of EC Benefits to organizations • Global reach • Cost reduction • Supply chain improvements • Extended hours: 24/7/365 • Customization • New business models • Vendors’ specialization • Rapid time-to-market • Lower communication costs • Efficient procurement • Improved customer relations • Up-to-date company material • No city business permits and fees • Other benefits 15 Benefits of EC (cont.) Benefits to consumers • Ubiquity • More products and services • Cheaper products and services • Instant delivery • Information availability • Participation in auctions • Electronic communities • “Get it your way” • No sales tax 16 Benefits of EC (cont.) • Benefits to society – Telecommuting – Higher standard of living – Hope for the poor – Availability of public services 17 Limitations of EC 18 Barriers of EC • Security • Trust and risk • Lack of qualified personnel • Lack of business models • Culture • User authentication and lack of public key infrastructure • Organization • Fraud • Slow navigation on the Internet • Legal issues 19 Major Business Pressures and the Role of EC 20 Major Business Pressures Societal and environmental pressures (cont.) Changing nature of workforce Government deregulation of banking and other services Shrinking government subsidies Increased importance of ethical and legal issues Increased social responsibility of organizations Rapid political changes 21 Major Business Pressures Technological pressures (cont.) Rapid technological obsolescence Increase innovations and new technologies Information overload Rapid decline in technology cost vs. performance ratio 22 The Networked Organization 23 • Source : Turban, Efraim, David King, Jae Lee and Dennis Viehland. Electronic Commerce. A Managerial Perspective (2004). Prentice Hall. PPT for Chapter :1 24