E-CommerceeBusiness Framework, eProducts and eService

S1 Teknik Informatika

Fakultas Ilmu KomputerUniversitas Pembangunan Nasional “Veteran” Jakarta

Lecturer : Bambang Warsuta, S.Kom, M.T.Ibambangwarsuta@gmail.com

ebusiness framework

eksternal

internal

What is the goal?

• What is the goal for the company that implemented Information communication and Technology (ICT)?• To procure and analyze information on market participants

as well as on existing and potential customers.• So the company can develop and sell products and services

that are promising.

So What?

• So what the ICT strategic tool to collect all the information that needed?• Web-based Information Systems• Web-base IS allow the development of the market and the

behavior of market participants to be studied and interpreted• Web-base IS support the design and production of goods and

services

Component of A Business Model

• The Condition without ICT support Contrasting marketplace and market space digital market

• So the companies must decide upon a business model to see if and how both the physical and the electronic market space can be worked.

The company strategy

• The company strategy must include physical and the electronic market options in most cases.

• The fundamental questions to consider are to migrate to the electronic market options :• how should a promising mix of materials and/or intangible

product parts and services be determine? (to decided)• how should the appropriate business transactions be carried

out? (to do)

Components of a businessmodel for eBusiness

• To creating a business model for electronic business, it is necessary to clarify the following issues :• Defining products and services.• Defining target customers and sales markets.• Evaluation and selection of suitable business webs.• Organization of business processes.• Price model and methods of payment• Creation of a security policy.

Case Study eDVDShop: Web Presence

• eTorrent has set up the eDVDShop on one of its servers• the shop multilingual in English and German• The entire range of goods must therefore be recorded in two

languages and filed with pictures and descriptions in the shop.

• Using product attributes, it is possible to produce complex retrieval queries.

Case Study eDVDShop: Web Presence

Classification of Business Webs According to Tapscott

• Don Tapscott is an internationally renowned authority, writer, consultant and speaker regarding the strategic impact of information technology on innovation, marketing and talent. He has authored or co-authored eleven widely read books on technology in business and society. Don sold his company New Paradigm in 2007 to nGenera where he is Chairman of the nGenera Innovation Network. He is Adjunct Professor of Management at the Joseph L. Rotman School of Management, University of Toronto.

His upcoming book Grown Up Digital; How the Net Generation is Changing the World (October 2008) is the sequel to his landmark 1997 book Growing Up Digital. He has authored several of the defining business books of the last decades including Paradigm Shift (1992), The Digital Economy (1995), Digital Capital (2000), Naked Corporation, (2002) and Wikinomics (2006). An enthralling, brilliant and inspiring orator, Don is often described by customers as the most effective speaker they have ever had.

Agora B-Web

• Agora (greek) : a public meeting place where business was conducted, including trade

• Agora b-web The agora business web or b-web is an electronic marketplace where buyers and sellers meet in order to openly negotiate over the goods o ered and their prices. ff

Agora at Tirus

Agora B-Web

• Main Characteristic of Agora• In an agora there are

no fixed prices; the prices are negotiated. dynamic price discovery

• Providers and buyers haggle among themselves over the price in the exchange of digital and material goods and services

Agora B-Web

• In an agora, the customers or customer groups often develop into a community.

• The participants of auctions agree to an organized process involving negotiation, pricing, and distribution of goods.

Value contributions for eBay (an agora)

Potential benefits of eBay

• Platforms such as eBay put low transaction costs to use: the customers providers and consumers — perform most of the work and cover most of the costs and risks.

• Such platforms for trading material and digital goods have the following advantages:• No storage costs. The providers store their own products.• Minimal marketing costs. The providers describe and illustrate their

products on the platform themselves.• Reduced distribution costs. Buyers and providers regulate dispatch and

payment among themselves.• Low product liability. Products are auctioned the buyer carries the risk.• Low financial risk. The providers authorize the operator of the exchange

platform to collect an auction fee.

Aggregator B-Web

• A B-web of the aggregator type is a digital supermarket• It selects suitable products and services from di erent ff

producers, decides on the appropriate market segments, sets prices, and supervises the fulfillment of the transaction.

Aggregator B-Web

• The aggregator buys products and services according to its own discretion, and to a great extent sets the purchase prices.

• It then determines the selling prices and discounts for the assortment of goods.

• It also controls the sale and distribution of the goods.

• An aggregator combines products and dictates prices

The Amazon Aggregator

The Amazon Aggregator

• Amazon Features :• Search engine : The customer can find books or CDs with a simple

search procedure and study the di erent summaries.ff• Review : reviews from customers and experts can act as purchase

recommendations. • Shipment normally takes place free of charge with an order.• Amazon can make use of its market power when dealing with

publishing houses and negotiate special o ers.ff• The cataloging of the books and CDs takes place through the

publishing houses themselves. • Modes of payment to customers such as publishing houses are

specified and accomplished by the aggregator.

Advantages of an aggregator B-web

• Strong negotiation power. • The aggregator selects the products and estabishes the price.

• Employment of digital advisors. • Software agents help with search and comparison procedures and advise the customer.

• Independent product valuation. • Advantages and disadvantages of products are understood by the customers and

published by the aggregator as a decision making aid.• Sale stimulation. • In the digital supermarket, products can be bundled and cross-selling measures

realized.• Customer saves on shipping costs. • The aggregator can create incentives by utilizing scale e ects and low transaction ff

costs.

Integrator B-Web

• An integrator does not itself produce services or product components, but rather works as a context provider.

• Integrator integrates the value contributions of various content providers such as external developers, parts suppliers, dealers, solution integrators, operators, and other partners.

• The integrator controls the organization of the products and the services and directs the steps toward value integration.

Integrator B-Web

Di erent producers ffwith di erent ffcapabilities and services are combined into value chains and directed by the integrator.

Value integration in the Cisco b-web

Integrator consideration issue

• The success of an integrator therefore depends on good planning and coordination of the di erent partners. ff

• Project management plays an important role in the process, including the use of knowledge resources.

The advantages of using an integrator B-web

• Customer-oriented solution. • The customer order comes first, with initial partial payments being made

when the order is placed.• General contractor. • The integrator assumes full responsibility for the customer order.

• Formation of a value chain. • The selection of suppliers, the networking, and appropriate negotiations are

all realized by the integrator.• Shop production instead of routine production. • All components are custom-made.

• Project and method knowledge. • The integrator controls project management and knowledge use.

Alliance B-Web

• The word “prosumer” has been created to express this dual producer and consumer role.

• B-webs of the alliance type develop on a voluntary basis, motivated by a common need

The value module of the Linux alliance

Advantages of the alliance B-web

• Network formation. • Partners in an alliance form a network of equal rights.

• Self-organization. • A few behavioral rules promote collaboration.

• Prosumer. • The partners are simultaneously producers (supplying creative products and

services) and consumers (demanding solutions).• Value module.• Intangible assets are created together.

• Idealized objective. • Mutual respect, trust, and common value creation form the basis of the

alliance.

Distributor B-Web

• A distributor b-web is a distribution network that transfers material products, intangible products and services from the producer to the user.

• Distributors fulfill a distribution function, acting (for example) as a transportion company, electricity provider, financial service, courier service and postal service, communications network operator, or logistics company.

Basic concept of the distributor B-web

• The distribution network connects the producer of products and services with the purchaser or customer.

• It can therefore consist of a physical or digital network and distribution system.

Value creation with a distributor, Telecom

Comparison of the main characteristics of the various types of B-web

Thank You

Happy Holiday