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Week 1

Frans Hendrawan Ginting teaches a class on the Introduction to ICT Industry and Business at Multimedia Nusantara University. The class covers electronic commerce concepts such as business models, revenue models, and the benefits of electronic commerce. Students will be evaluated based on assignments, midterms, and finals. References will include a book on electronic commerce perspectives.
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0% found this document useful (0 votes)
14 views

Week 1

Frans Hendrawan Ginting teaches a class on the Introduction to ICT Industry and Business at Multimedia Nusantara University. The class covers electronic commerce concepts such as business models, revenue models, and the benefits of electronic commerce. Students will be evaluated based on assignments, midterms, and finals. References will include a book on electronic commerce perspectives.
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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PENGANTAR INDUSTRI

& BISNIS ICT


UNIVERSITAS MULTIMEDIA NUSANTARA
PERKENALAN
Nama : Frans Hendrawan Ginting, S.T, M.M.
Pendidikan :
 STT-Telkom / Telkom University : Teknik Industri
 Prasetiya Mulya Business School : MM - Finance
Pengalaman :
 2015 – 2016 : CED Manager – UMN
 2012 – 2015 : LED Dept. Head – Sekolah HighScope
Indonesia
 2011 – 2012 : Operational Manager – PT. Alam
Tanjung Raya
PERKENALAN
Kontak : [email protected]
[email protected]
0853.8429.1932
PERATURAN KELAS
 Kehadiran di kelas :
 Hadir sesuai jadwal. Hadir > 15 menit : absen.
 Jatah absen (sakit, izin) : 3 absen / semester
 Absen karena kebutuhan khusus : Kemahasiswaan
 Menjaga ketenangan di dalam kelas
 Tidak menggunakan alat komunikasi (smartphone)
di dalam kelas
 Ketua Kelas : ….. ?
PENGANTAR INDUSTRI & BISNIS ICT

 Penilaian :
 Tugas : 30 %
 UTS : 30 %
 UAS : 40 %

 Bahan, Sumber Informasi, dan Referensi :


Turban, Efraim & King, David. 2013. Electronic
Commerce 2012 A Managerial Perspective, 7th ed
Global Edition. Pearson.
Chapter 1
OVERVIEW OF ELECTRONIC COMMERCE
Definition of Electronic Commerce & E-Business
• Electronic Commerce (EC)
The process of buying, selling, or exchanging
products, services, or information via computer
• E-Business
A broader definition of EC that includes not just the
buying and selling of goods and services, but also
servicing customers, collaborating with business
partners, and conducting electronic transactions
within an organization
Some Players in Indonesia E-Commerce
What drives e-business ?
Digital Revolution :
– Analog system are being converted to digital ones
– A massive collection of digitizable product
– A move to real time transactions
– Work and production are organized in new and
innovative ways
Why every business needs to transform into
e-business ?

Reach and engage customers more effectively


Boost employee productivity
Improve operation efficiency
MAJOR EC CONCEPTS
EC can take several forms depending on the degree of
digitization (the transformation from physical to digital) :
• X axis : the shipment (delivery) method
• Y axis : the ordering system (order, payment)
• Z axis : the processing (e.g. create product / service)
1) Traditional Commerce
• Purely physical organizations (companies)
• Perform their primary business offline, selling
physical products by means of physical agents
• Referred to brick-and-mortar organizations
• Example : buying a book from a book store
2) Pure EC
• Companies that are engaged only in EC
• Organizations that conduct their business
activities solely online
• Considered as virtual (pure-play) organizations
• Example : buying an e-book from Amazon.com
3) Partial EC
• Those that conduct some EC activities, usually as
an additional marketing channel
• Known as click-and-mortar/brick organizations
• Example : purchasing a book from Amazon.com
(the book is physically delivered)
ELECTRONIC MARKETS AND NETWORKS
– Electronic Market (e-marketplace)
An online marketplace where buyers and sellers meet to
exchange goods, services, money, or information
– Intranet
An internal 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
AN EC FRAMEWORK

EC applications are supported by infrastructure


(hardware, software, networks) and by the following
five support areas:
1. People
2. Public policy
3. Marketing and advertising
4. Support services
5. Business partnerships
CLASSIFICATION OF EC BY THE NATURE OF THE TRANSACTIONS AND THE
RELATIONSHIPS AMONG PARTICIPANTS

 Business-to-Business (B2B)
E-commerce model in which all of the participants
are businesses or other organizations; Businesses
make online transactions with other businesses.
 Business-to-Consumer (B2C)
E-commerce model in which businesses sell to
individual shoppers / consumers). This is also called
e-tailing (online retailing).
• 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 who seek sellers to bid on products or
services they need
• 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
• Consumer-to-Consumer (C2C)
E-commerce model in which consumers sell directly to
other consumers
• Collaborative Commerce (c-commerce)
E-commerce model in which individuals or groups
communicate or collaborate online
• E-government
E-commerce model in which a government entity buys
or provides goods, services, or information from or to
businesses (G2B) or individual citizens (G2C).
Government can deal also with other government (G2G)
Electronic Commerce Business Models
Definition of Business Model :
• A method of doing business by which a company can
generate revenue to sustain itself (Turban, 2008)
• A business model describes the rationale of how an
organization creates, delivers, and captures value
(Osterwalder in Business Model Generation, 2009)
A comprehensive business model is composed of the
following elements :
 Customers, customer relationship, and customer
value proposition
 Description of the products & services and the
markets in which they will be sold
 Description of the business process (production,
distribution, and marketing strategies)
 List of the resources required
 Organization’s supply chain (suppliers, business
partners)
 List of the major competitors, their market share,
and strengths / weaknesses
 The competitive advantage offered by the business
model
 The anticipated organizational changes and any
resistance to change
 Description of the revenue expected (revenue
model), costs, sources of financing, and estimated
profitability (financial viability)
BUSINESS MODEL CANVAS : 9 Building Blocks
THE STRUCTURE AND PROPERTIES OF BUSINESS MODELS

 Revenue Models
Outlines how the organization, or the EC project, will
generate revenue.
The major revenue models are :
1) Sales : revenue from selling products / services on
organization’s / company’s website. Example :
www.airasia.com, www.amazon.com
2) Transaction Fees : receives a commission based on the
volume of transactions made. Example :
www.groupon.co.id, www.agoda.com
3) Subscription Fees : customers pay a fixed amount,
usually monthly, to get some type of service.
Example : www.ayofoto.com
4) Advertising Fees : companies charge others for
allowing them to place banner on their sites.
Example : www.detik.com, www.kaskus.co.id
5) Affiliate Fees : companies receive commissions for
referring customers to others’ website. Example :
Amazon / Mozilla Firefox affiliate program
Amazon’s Affiliate Program
6) Licensing Fees
Can be assessed as an annual fee or a per
usage fee. Example : Microsoft license fee
7) Other Revenue Sources
Some companies allow people to play games
for a fee or to watch a sport competition in
real time for a fee.
 Value Proposition
Constitutes value from the customers’ perspective;
the benefits, including the intangible / non-
quantitative ones, that a company can derive from
using the model (product).
Functions / Objectives of a Business Model :
• Describe company’s business processes
• Describe the company positioning within the supply
and value chain
• Formulate the venture’s competitive strategy and its
long-range plans
• Articulate a customer value proposition
• Identify a market (customer) segment
• Estimate the cost structure & amount and profit
potential
Five Common Models of EC Business Models
I. Online Direct Marketing
Selling products / services online. Sales may be from
a manufacturer to a customer (e.g. Dell computer) or
from retailers to consumers (e.g. Walmart online).
II. Electronic Tendering (Bidding) Systems / Reverse
Auction
Model in which a buyer requests would-be sellers to
submit bids; the lowest bidder wins. Example : online
government project tender system (e-tendering)
Five Common Models of EC Business Models
III. Electronic Marketplaces and Exchanges (e-marketplace)
Example : stock & commodities exchanges (the place
where buying & selling occurs)
IV. Viral Marketing
It is basically web-based word-of-mouth advertising and
it is popular in social networks. People & organization
use e-mail & social networks to increase brand
awareness, generate sales, or to recruit friends to join
certain programs.
Five Common Models of EC Business Models
V. Group Purchasing
It is based on the concept of quantity discounts
(“cheaper-by-the-dozen”). Example : Groupon.
THE BENEFITS AND IMPACTS OF EC
I. Benefits to Organizations
Global reach, cost reduction, business always open,
improved customer service & relationship, etc.
II. Benefits to Consumers
Huge selection to choose from, can shop at any time from
any place, can compare & shop for lowest price, etc.
III. Benefits to Society
Facilitate work at home, more public services (available for
more people), allow people in developing countries & rural
areas to accept more services & purchase what they really
like, etc.
THE LIMITATIONS OF EC
I. Technological Limitations
Lack of universal standards for quality, security, and
reliability, the telecommunications bandwidth is
insufficient, internet accessibility is still expensive
and/or inconvenient, etc.
II. Nontechnological Limitations
Some customers like to feel & touch products,
national & international government regulations,
lack of trust in EC & in unknown sellers, etc.
THE BARRIERS OF EC
According to a 2006 study, the major barriers to EC are:
a. Resistance to new technology
b. Implementation difficulties
c. Security concerns
d. Lack of technology skills
e. Lack of potential customers
f. Cost
THE BARRIERS OF EC
Van Toorn et al. (2006) classified the barriers into :
a. Sectoral barriers (government, private sector,
international organizations)
b. Internal barriers (security, lack of technical
knowledge, lack of time & resources)
c. External barriers (lack of government support)
THE BARRIERS OF EC
Van Toorn et al. (2006) also list the top barriers with
regards to global EC :
a. Cultural differences
b. Organizational differences
c. Incompatible B2B interfaces
d. International trade barriers
e. Lack of standards
Beside above, another important barrier is Ethical Issue.

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