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Electronic Commerce Definitions and Concepts. Tujuan :. Mahasiswa mampu mengetahui definisi dan konsep dari E-Commerce Mahasiswa mampu mengetahui Dimensi dari E-Commerce Mahasiswa mampu mengetahui Framework E-Commerce Mahasiswa mampu mengetahui Klasifikasi dari E-Commerce. Reference.

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Electronic Commerce Definitions and Concepts

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Electronic Commerce

Definitions and Concepts

Agung Wahana


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Tujuan :

  • Mahasiswa mampu mengetahui definisi dan konsep dari E-Commerce

  • Mahasiswa mampu mengetahui Dimensi dari E-Commerce

  • Mahasiswa mampu mengetahui Framework E-Commerce

  • Mahasiswa mampu mengetahui Klasifikasi dari E-Commerce

Agung Wahana


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Reference

  • William J. Buffan. E-Business and IS Solutions. Addison-Wesley. 2000

  • Harman, P., Rosen, M., Guttman, M., Developing E-Business Systems & Architectures. Morgan Kaufmann Publishing. 2001

  • Harrington. Business Process Improvement. McGraw-Hill. Inc., 1991

  • Turban, et al., Electronic Commerce. Prentice Hall International. 2001

Agung Wahana


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Electronic Commerce: Definitions and Concepts (cont.)

  • E-commerce defined from the following perspectives:

    • Communications: delivery of goods, services, information, or payments over computer networks or any other electronic means

    • Commercial (trading): provides capability of buying and selling products, services, and information on the Internet and via other online services

Agung Wahana


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Electronic Commerce: Definitions and Concepts (cont.)

  • Business process: doing business electronically by completing business processes over electronic networks, thereby substituting information for physical business processes

  • Service: a tool that addresses the desire of governments, firms, consumers, and management to cut service costs while improving the quality of customer service and increasing the speed of service delivery

Agung Wahana


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Electronic Commerce: Definitions and Concepts (cont.)

  • Learning:an enabler of online training and education in schools, universities, and other organizations, including businesses

  • Collaborative:the framework for inter- and intraorganizational collaboration

  • Community: provides a gathering place for community members to learn, transact, and collaborate

Agung Wahana


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Electronic Commerce: Definitions and Concepts (cont.)

  • e-business:a broader definition of EC, which includes:

    • buying and selling of goods and services

    • servicing customers

    • collaborating with business partners

    • conducting electronic transactions within an organization

Agung Wahana


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Electronic Commerce: Definitions and Concepts (cont.)

  • Pure vs. Partial EC depends upon the degree of digitization (the transformation from physical to digital) of:

    • the product (service) sold;

    • the process; and for

    • the delivery agent (or digital intermediary)

  • Brick-and-Mortar organizations areold-economy organizations (corporations) that perform most of their business off-line, selling physical products by means of physical agents

Agung Wahana


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Electronic Commerce: Definitions and Concepts (cont.)

  • Virtual (pure-play) organizations conduct their business activities solely online

  • Click-and-mortar organizations conduct some EC activities, but do their primary business in the physical world

  • Electronic market (e-marketplace) online marketplace where buyers and sellers meet to exchange goods, services, money, or information

Agung Wahana


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Electronic Commerce: Definitions and Concepts (cont.)

  • Interorganizational information systems (IOSs) allow routine transaction processing and information flow between two or more organizations

  • Intraorganizational information systems enable EC activities to go on within individual organizations

Agung Wahana


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Exhibit 1.1: The Dimensions of Electronic Commerce

Agung Wahana


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The EC Framework, Classification, and Content

  • Two major types of e-commerce:

    • business-to-consumer (B2C) : online transactions are made between businesses and individual consumers

    • business-to-business (B2B): businesses make online transactions with other businesses

      intrabusiness EC: EC conducted inside an organization (e.g., business-to-employeesB2E)

Agung Wahana


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The EC Framework, Classification, and Content (cont.)

  • Computer environments

    • Internet: global networked environment

    • Intranet:a corporate or government network that uses Internet tools, such as Web browsers, and Internet protocols

    • Extranet: a network that uses the Internet to link multiple intranets

Agung Wahana


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EC Framework

  • EC applications are supported by infrastructure and by five support areas:

    • People

    • Public policy

    • Marketing and advertising

    • Support services

    • Business partnerships

Agung Wahana


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Exhibit 1.2: A Framework for Electronic Commerce

Agung Wahana


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Classification of EC by Transactions or Interactions

  • business-to-consumer (B2C) : online transactions are made between businesses and individual consumers

  • business-to-business (B2B): businesses make online transactions with other businesses

  • e-tailing:online retailing, usually B2C

Agung Wahana


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Classification of EC by Transactions or Interactions (cont.)

  • business-to-business-to-consumer (B2B2C):e-commerce model in which a business provides some product or service to a client business that maintains its own customers

  • consumer-to-business (C2B):

    e-commerce model in which individuals use the Internet to sell products or services to organizations or individuals seek sellers to bid on products or services they need

Agung Wahana


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Classification of EC by Transactions or Interactions (cont.)

  • consumer-to-consumer (C2C):

    e-commerce model in which consumers sell directly to other consumers

  • peer-to-peer (P2P):technology that enables networked peer computers to share data and processing with each other directly; can be used in C2C, B2B, and B2C e-commerce

Agung Wahana


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Classification of EC by Transactions or Interactions (cont.)

  • mobile commerce ((m-commerce):

    e-commerce transactions and activities conducted in a wireless environment

  • location-based commerce (l-commerce):m-commerce transactions targeted to individuals in specific locations, at specific times

Agung Wahana


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Classification of EC by Transactions or Interactions (cont.)

  • intrabusiness EC:e-commerce category that includes all internal organizational activities that involve the exchange of goods, services, or information among various units and individuals in an organization

  • business-to-employees (B2E):e-commerce model in which an organization delivers services, information, or products to its individual employees

Agung Wahana


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Classification of EC by Transactions or Interactions (cont.)

  • collaborative commerce (c-commerce):

    e-commerce model in which individuals or groups communicate or collaborate online

  • e-learning: the online delivery of information for purposes of training or education

  • exchange (electronic): a public electronic market with many buyers and sellers

Agung Wahana


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Classification of EC by Transactions or Interactions (cont.)

  • exchange-to-exchange (E2E): e-commerce model in which electronic exchanges formally connect to one another the purpose of exchanging information

  • e-government: e-commerce model in which a government entity buys or provides goods, services, or information to businesses or individual citizens

Agung Wahana


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The Interdisciplinary Nature of EC

  • Major EC disciplines

    • Computer science

    • Marketing

    • Consumer behavior

    • Finance

    • Economics

    • Management information systems

Agung Wahana


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A Brief History of EC

  • EC successes

    • Virtual EC companies

      • eBay

      • VeriSign

      • AOL

      • Checkpoint

    • Click-and-mortar

      • Cisco

      • General Electric

      • IBM

      • Intel

      • Schwab

  • EC failures

    • 1999, a large number of EC-dedicated companies began to fail

    • EC’s days are not numbered!

      • dot-com failure rate is declining sharply

      • EC field is experiencing consolidation

      • most pure EC companies, are expanding operations and generating increasing sales (Amazon.com)

Agung Wahana


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The Success Story of Campusfood.Com

  • Provide interactive menus to college students, using the power of the Internet to replace and/or facilitate the traditional telephone ordering of meals

  • Built the company’s customer base

    • expanding to other universities

    • attracting students

    • generating a list of restaurants from which students could order food for delivery

Agung Wahana


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The Success Story of Campusfood.Com (cont.)

  • Now some of these activities are outsourced to a marketing firm, enabling the addition of dozens of schools nationwide

  • Financed through private investors, friends, and family members, the site was built on an investment of less than $1 million

  • Campusfood.com’s revenue is generated through transaction fees—the site takes a 5 % commission on each order from the sellers

Agung Wahana


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The Success Story of Campusfood.Com (cont.)

  • At campusfood.com you can:

    • Navigate through a list of local restaurants, their hours of operation, addresses, phone numbers, etc.

    • Browse an interactive menu

    • Bypass “busy” telephone signals to place an order online

    • Access special foods, promotions, and restaurant giveaways

    • Arrange electronic payment of your order

Agung Wahana


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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

the future is bright

Agung Wahana


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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

Agung Wahana


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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

Agung Wahana


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Structure of Business Models

  • Business model:A method of doing business by which a company can generate revenue to sustain itself

Agung Wahana


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Structure of Business Models (cont.)

  • Value proposition:The benefits a company can derive from using EC

    • search and transaction cost efficiency

    • complementarities

    • lock-in

    • novelty

    • aggregation and interfirm collaboration

Agung Wahana


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Exhibit 1.4: Common Revenue Models

Agung Wahana


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Typical Business Modelsin EC

  • Online direct marketing

  • Electronic tendering systems

    tendering (reverse auction):model in which a buyer requests would-be sellers to submit bids, and the lowest bidder wins

  • 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

Agung Wahana


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Typical Business Models in EC (cont.)

  • 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

  • Viral marketing: word-of-mouth marketing in which customers promote a product or service to friends or other people

Agung Wahana


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Typical Business Models in EC (cont.)

  • Group purchasing: quantity purchasing that enables groups of purchasers to obtain a discount price on the products purchased

  • SMEs: small to medium enterprises

  • Online auctions

Agung Wahana


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Typical Business Models in EC (cont.)

  • Product and service customization

    customization: creation of a product or service according to the buyer’s specifications

  • Electronic marketplaces and exchanges

  • Value-chain integrators

  • Value-chain service providers

Agung Wahana


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Typical Business Models in EC (cont.)

  • Information brokers

  • Bartering

  • Deep discounting

  • Membership

  • Supply chain improvers

    Business models can be independent or they can be combined amongst themselves or with traditional business models

Agung Wahana


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Example of Supply Chain Improver

  • Orbis Group changes a linear physical supply chain to an electronic hub

    • Traditional process in the B2B advertising field

Agung Wahana


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Example of Supply Chain Improver (cont.)

  • ProductBank simplifies this lengthy process changing the linear flow of products and information to a digitized hub

Agung Wahana


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Benefits of EC

  • 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

Benefits to organizations

Agung Wahana


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Benefits of EC (cont.)

  • 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

Benefits to consumers

Agung Wahana


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Benefits of EC (cont.)

  • Benefits to society

    • Telecommuting

    • Higher standard of living

    • Hope for the poor

    • Availability of public services

Agung Wahana


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Limitations of EC

Agung Wahana


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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

Agung Wahana


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The Digital Revolution

  • Digital economy:An economy that is based on digital technologies, including digital communication networks, computers, software, and other related information technologies; also called the Internet economy, the new economy, or the Web economy

Agung Wahana


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The Digital Revolution (cont.)

  • A global platform over which people and organizations interact, communicate, collaborate, and search for information

  • Includes the following characteristics:

    • A vast array of digitizable products

    • Consumers and firms conducting financial transactions digitally

    • Microprocessors and networking capabilities embedded in physical goods

Agung Wahana


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New Business Environment

  • Customers are becoming more powerful

  • Created due to advances in science occurring at an accelerated rate

  • Results in more and more technology

  • Rapid growth in technology results in a large variety of more complex systems

Agung Wahana


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New Business Environment (cont.)

  • Characteristics in the business environment

    • A more turbulent environment with more business problems and opportunities

    • Stronger competition

    • Need for organizations to make decisions more frequently

    • A larger scope for decisions because more factors

    • More information and/or knowledge needed for making decisions

Agung Wahana


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Summary

  • Definition of EC and description of its various categories.

  • The content and framework of EC.

  • The major types of EC transactions.

  • The major business models.

Agung Wahana


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Summary (cont.)

  • Benefits to organizations, consumers, and society.

  • Limitations of EC.

  • The role of the digital revolution.

  • The role of EC in combating pressures in the business environment.

Agung Wahana


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The End

Discuss ?

Agung Wahana


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