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1
Pertemuan 2How Electronic Chaning Business
Matakuliah : F0662/Web Based Accounting
Tahun : 2005
Versi : 1/0
2
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)
3
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
4
Electronic CommerceToday
5
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.
6
Where will the growth be?
Source: Forrester Research cited in Greenstein. Marilyn, and Feinman. Todd. M (2000) Greenstein. Marilyn, and Feinman. Todd. M (2000) Electronic Commerce: Security, Risk Management and Control , New York, McGraw Hill),p8., New York, McGraw Hill),p8.
120
900
2300
3900
5100
7600
0 1000 2000 3000 4000 5000 6000 7000 8000
Clothing & footware
Books & Music
Entertainment
Hardware & Software
Financial Services
Travel
7
This lecture will cover the following topics:
• Definitions
• Benefits
• Cost savings
• Obstacles
• From EDI to e-enterprise
8
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.
Source: Kalakota. R and Whinston. A, (1997). Electronic Commerce. A Manager’s Guide. Addison Wesley, USA.
9
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.
10
Putting E-commerce in Context
YourYourBusinessBusiness ProductsProducts
ServicesServices
CommunicationCommunicationChannelsChannels
TTechnologyechnology E Enablednabled R Relationshipelationship M Managementanagement
Value ChainValue Chain
CustomerCustomer
11
What Is E-Business?EC + TERM + SCM
PotentialCustomers
& Influences
PotentialCompetitors
“Just a URL & a Dream”
SuppliersIndustry
Networks
DistributionChannels
BusinessPartners
Product & ServiceCreation
Logistics&
Fulfilment
Admin &Operations
Marketing,Sales &Service
LegallyDefined
Enterprise
SupplyChain
“Virtual Partners”
Informal Info.Sharing Deals
Competitors
Customers
Supply Chain Management Technology-Enabled Relationship Management
Electronic Commerce Back Office Web Commerce Front Office
BI, KM and CTfor External Info
12
Electronic Commerce Technology
Electronic Business
Electronic commerce
Internet Commerce
Web Commerce Electronic Data Interchange
Electronic Funds Transfer
Source Orion group
13
Electronic Business
• Includes:– Electronic advertising– Electronic buying and selling– 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 transactions
Electronic Business
Electronic Commerce
Internet Commerce
Electronic Funds Transfer
Web Commerce
ElectronicData
Interchange
14
Electronic Commerce
• Includes :
- Advertising of products
or services
- Electronic shopping
- Direct after-sales service
- EDI
- VAN
Electronic Business
Electronic Commerce
Internet Commerce
ElectronicData
InterchangeElectronic Funds Transfer
Web Commerce
15
Internet Commerce
• Includes
business conducted
only over the internet
Electronic Business
Electronic Commerce
Internet Commerce
Electronic Funds Transfer
ElectronicData
Interchange
Web Commerce
Electronic Funds Transfer
16
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
ElectronicData
InterchangeElectronic Funds Transfer
Web Commerce
17
Electronic Data Interchange
• EDI started in the early 60s and precedes modern day electronic commerce by about 20 years
• EDI is one form of Electronic Commerce– uses standard formats for a variety of business documents
Electronic Business
Electronic Commerce
Internet Commerce
ElectronicData
InterchangeElectronic Funds Transfer
Web Commerce
18
Electronic Funds Transfer
• EFT is an aspect of
Electronic Commerce
• Can be conducted over the internet
or private networks
• May or may not be conducted over the WWW
• Can use EDI standards or be done in non-EDI fashion
Electronic Business
Electronic Commerce
Internet Commerce
ElectronicData
InterchangeElectronic Funds Transfer
Web Commerce
19
E-commerce - Critical Success Factors
• 1 add value• 2 focus on a niche …then expand• 3 maintain flexibility• 4 segment geographically• 5 get the technology right• 6 manage critical perceptions• 7 provide exceptional customer service• 8 ensure website can be found • 9 understand internet culture
Huff, Wade, Parent, Schneberger &Newson 2000
20
Critical Success Factorsfor
Adding Value
– Convenience– Disintermediation– Re-intermediation– Price– Choice– QUALITY !!!!
21
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.
22
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.
23
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.
24
Obstacles to EC
Organisational1. Integrating into legacy
systems;2. Choosing the right
business model & technology (Wilder, 1999).
3. Obtaining senior management support;
4. Changing organisational culture;
Costs5. Effects of
disintermediation;
6. Logistics;
7. Investment;
8. Integration with existing infrastructure;
9. Capacity planning;
10. Bandwidth.
25
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.
26
A question of balance
Business NeedsTechnology
Getting funds;Recruiting expertise;Retraining staff;Keeping up with technology;Integration.
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.
27
An evolution
Brochureware
1995 20001997 1999
Business impact
E-Commerce
E-Business
E-Enterprise
28
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.
29
Electronic Data Interchange
Jan DamsgaardDept. of Informatics
Copenhagen Business School
http://www.cbs.dk/staff/damsgaard/
30
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.
31
What is Electronic Data Interchange
The equivalent in EDI-like formatSTART_OF_MESSAGE;RECEIVER: TheContainerTerminal;SENDER: BeerCo: John Broekema;TYPE: Container pre-arrival notice;CONTAINER: HOLI673625:40ft.:40:344523CARGO: 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;
32
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
33
Outline
• Motivation• What is EDI?• Benefits of EDI• 7 characteristics of EDI• Functional analysis of EDI• War and Peace in the
supply chain
EDI is the future
34
An EDI setup
InformationSystems
Converter
Communicationhard/software
InformationSystems
Converter
Communicationhard/software
Network operator
35
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
36
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
37
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
38
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
39
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.
40
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
41
EDI is innovative, abstract and complex
• Abstract– Hard to measure
• The business value of telephones• The business value of mail service
42
EDI is innovative, abstract and complex
IS
IS
IS
IS
IS
IS
IS
EDI
• Mature organization
43
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
44
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
45
The need for standards Customer Supplier
Best Bread
Freshest Fruit
Mighty Meat
Very Veg
Super Food
Save on Food
Sava Store
– Three customers– Four suppliers– Twelve formats or
one standard
Source: E-Commerce ©David Whiteley/McGraw-Hill, 2000
46
EDI standards are essential
Data Element
Data Element
Data Element
Interchange
Data Segment
Data Segment
Data Segment
Message Header
Message Trailer
Message
Message
Message
I’change Header
I’change Trailer
Source: E-Commerce ©David Whiteley/McGraw-Hill, 2000
47
Exam
ple ED
IFA
CT
interchangeUNB+UNOA:1+6464:xx+1141:xx+ Interchange Header BEN0273'UNH+000001+ORDERS:2:932:UN' Message 1 HeaderBGM+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' TrailerUNH Message 2. . .. . .UNTUNZ+1+BEN0273' Trailer
Data segments
Source: E-Commerce ©David Whiteley/McGraw-Hill, 2000
48
Order message
LIN Line itemLIN+1++PT-1073-R:VP'LIN+2++PT-1073-S:VP'Line item number 1 and 2Item numberPT-1073-R and PT-1073-SItem line number VP i.e. vendor part number
QTY QuantityQTY+21:1600'QTY+21:1200'Quantity qualifier 21 i.e. ordered quantityQuantity 1600 and 1200
Source: E-Commerce ©David Whiteley/McGraw-Hill, 2000
49
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
• Critical mass of users
EDI
50
EDI implementations are often based on third party operated VANs
Customer Supplier VANS
postbox mailbox
postbox mailbox
postbox mailbox
postbox mailbox
postbox mailbox
postbox mailbox
postbox mailbox
Best Bread
Freshest Fruit
Mighty Meat
Very Veg
Super Food
Save on Food
Sava Store
Source: E-Commerce ©David Whiteley/McGraw-Hill, 2000
51
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
52
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 Number13 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
53
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
54
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
55
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?
56
EDI in the trading cycle
Search
Negotiate
Order
Deliver
Invoice
Payment
After Sales
Pre-Sale
Execution
Settlement
After Sale
EDI
Source: E-Commerce ©David Whiteley/McGraw-Hill, 2000
57
Porter’s value chain
ProcurementHuman resources
Technology developmentCorporate infrastructure
Inboundlogistics
ProductionOutboundlogistics
Marketing&
SalesServices
Profit margin
Sup
port
act
ivit
ies
Pri
mar
y ac
tivi
ties
58
An industry
ConsumerRawmaterial
59
An example industry
Procurement
Human resources
Technology development
Corporate infrastructure
Inboundlogistics
ProductionOutboundlogistics
Marketing&
SalesServices
Profit margin
Procurement
Human resources
Technology development
Corporate infrastructure
Inboundlogistics
ProductionOutboundlogistics
Marketing&
SalesServices
Profit margin
Supermarket
Supermarket chainDairy Outlet Consumer
60
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.
61
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)
62
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
63
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
64
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
65
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
66
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
67
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
68
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 stock-out levels and inventory levels, and delivery frequency)
69
EDI patterns
• Hubs and Spokes– The Hub: the major manufacturer or retailer– Spokes: suppliers to the hub.
• 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
Hub
Spoke order
invoice
Spoke order
invoice
order invoice
Spoke
order invoice
Spoke
Source: E-Commerce ©David Whiteley/McGraw-Hill, 2000
70
EDI patterns
Henry’s Office Supply
Wholesale
Kent Council
Benny Bank
Instant
Insurance Sue Shop
Andy Agent
Pete’s Paper
Pam’s Pencils
Penny’s
Pens
•Wholesale network
71
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
72
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
73
EDI, IOS, Internet, E-commerce
Internet e-Commerce
EDI
Manufacturer / Retailer
Materials Supplier Product
Supplier
Customer
Source: E-Commerce ©David Whiteley/McGraw-Hill, 2000
74
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).
75
The 3 pillars of EC
1. Information
2. Relationships
3. Transactions
76
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.
77
Electronic Relationships
Building a site is not a guarantee for business.
• Return patronage;
• Form partnerships with other organisations;
78
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.
79
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.Siegel. David (2000) Futurize Your Enterprise, Canada, John Wiley & Sons.
80
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:– eg. at marriott.com you can
order airline tickets online. The next step is to offer other travel arrangements.
• Lines of communication improve.– Bottlenecks will develop,
but then will disappear.
• Every one is involved, not just the web team/marketing.– Management support.
• Automate business processes.
Siegel. David (2000) Futurize Your Enterprise, Canada, John Wiley & Sons.Siegel. David (2000) Futurize Your Enterprise, Canada, John Wiley & Sons.
81
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
82
E-Business support strategies
• Portals– Auctions (ebay)– Exchanges (corprocure)– Office supplies (officedepot)
• Vortals– E-Steel
• ASPs– mySAP– PeopleSoft
83
84
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 13,http://www.informationweek.com/765/ebizchts.fhtml
85
Quality
Of Offering
Time to Market
2. Imitate
•Competitor Successes
•Competitor Business Innovations
•Proven enterprise Architectures
•Gap analysis
1. Investigate
• Competitor Strategies
• Competitor alliances
• Enabling Technologies
• Market opportunities
• Intelligence Plan of the Battle space
3. Innovate
•Mass Customisation/CRM
•New alliances
•New channels
•Enterprise Architecture
•Digital Innovation Strategy
4. Infiltrate
Multi-channel sales Distribution
Traditional and “E” Marketing
Traditional and “E”Branding
Metcalf's Law
Four I’s of E-commerce Strategy
Meta Group (2000)
86
Where are we doing e-business?
1. Not just Web sites (brochureware);
2. Web based e-commerce (transactions);
3. Customer Relation Management s/ware (can be included in package by ASPs);
4. Intranets;
5. 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.
87
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;
88
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 Minefield”, December 3, Computerworld, page 6.
89
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).
90
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).
91
New businesses – Intermediaries (cont.)
• Comparison sites are also intermediaries.
• These sites use robots to scan sites and rank prices/products.
92
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.
93
E-Commerce Applications
94
E-Commerce Applications
• Retail and Wholesale• Manufacturing• Marketing• Investment and Finance• Auctions
95
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
96
Summary
• Mahasiswa diwajibkan membuat summary