E-Business, E-commerce

Tim Pengampu KWU FPUB

TA. 2019-2020
 Why students should study
e-commerce and e-business?
Indonesian market has grown 60–70 per cent
annually since 2014 and will expand from US$8
billion in 2016 to US$60 billion in 2020.
This is expected to generate new opportunities
for e-commerce sites and their businesses.
(E-commerce in Indonesia: A Guide for Australian Business, 2018)
Despite recording significant year-on-year growth
of 60-70 per cent since 2014, the Indonesian
e-commerce market is still relatively small
(US$8 billion) compared to regional pace-setter,
China, with sales of US$692 billion.
(E-commerce in Indonesia: A Guide for Australian Business, 2018)
 Learning Outcomes

Students are able to understand and to

distinguished the different between E-
Business and E-Commerce, and able to
design the concept and application of E-
commerce in agricultural sector
 Achievement Indicator:
After studying this chapter, you will be able
to:
1. Understand why it is important to study e-commerce.

2. Define e-commerce, understand how e-commerce differs from e-

business, identify the primary technological building blocks
underlying e-commerce, and recognize major current themes in
e-commerce.
3. Describe the unique feature and the types of e-commerce

4. Understand the evolution of e-commerce from its early years to

today.
Why it is important to study
e-commerce
 Why it is important?
• Technology continues to evolve at exponential
rates.
• Improvements in information technologies and
continuing entrepreneurial innovation.
• Business fortunes are made -and lost- in
periods of extraordinary very fast changees.
 It is important to study e-commerce
in order to be able to perceive and
understand the opportunities and risks
that lie ahead.
Introduction to
e-commerce
 What is e-commerce?

e-commerce refers to the More formally, e-

use of the Internet, the commerce digitally
Web, and mobile apps enabled commercial
and browsers running on transactions between and
mobile devices to transact among organizations and
business. individuals
 What is e-Business?

e-business refers to the digital enabling of transactions and

processes within a firm, involving information systems
under the control of the firm
 e-commerce vs e-business
e-commerce
• e-commerce encompasses the
entire world of electronically
based organizational activities
that support a firm’s market
exchanges—including a firm’s
entire information system
infrastructure
(Rayport and Jaworski, 2003).
e-business
• e-business encompasses the
entire world of internal and
external electronically based
activities, including
e-commerce
(Kalakota and Robinson,
2003).
Technological Building Blocks Underlying E-commerce:
The Internet, Web, & Mobile Platform
• is a worldwide network of computer
The Internet networks built on common
standards.
The World Wide • is an information system that runs on
Web (the Web) the Internet infrastructure.
• provides the ability to access the Internet from a
The Mobile variety of mobile devices such as smartphones,
tablets, and other ultra-lightweight laptop
Platform computers via wireless networks or cell phone
service.
 Major Trends In
E-commerce 2016–2017
 Unique Features of
E-commerce Technology
 UbiquityOBIQUITY
available just about
everywhere, at all times
 Global Reach
Global Reach
As a result, the potential market size
for e-commerce merchants is roughly
equal to the size of the world’s
online population
 Universal Standards

Universal Standards
standards that are shared by all
nations around the world
Information RICHNESS
Information RICHNESS
refers to the complexity and
content of a message
Interactivity

Interactivity
Refers to e-commerce enable
two-way communication between
merchant and consumer and
among consumers.
Information Density

Information Density
the total amount and quality of
information available to all market
participants, onsumers and merchants
alike
 Personalization And Customization

Personalization
the targeting of marketing
messages to specific
individuals by adjusting the
message to a person’s name,
interests, and past purchases
Customization
changing the delivered
product or service based
on a user’s preferences
or prior behavior
 Social Techlology

Social Techlology
e-commerce technologies have
evolved to be much more social by
allowing users to create and share
content with a worldwide
community
BUSINESS SIGNIFICANCE OF THE EIGHT UNIQUE
FEATURES OF E-COMMERCE TECHNOLOGY
BUSINESS SIGNIFICANCE OF THE EIGHT UNIQUE
FEATURES OF E-COMMERCE TECHNOLOGY
TYPES OF E-COMMERCE
 TYPES OF E-COMMERCE
BUSINESS-TO-CONSUMER • e-commerce online businesses selling to
(B2C) individual consumers
BUSINESS-TO-BUSINESS • e-commerce online businesses selling to other
(B2B) businesses
CONSUMER-TO- • e-commerce consumers selling to other
CONSUMER (C2C) consumers
MOBILE E-COMMERCE (M- • m-commerce use of mobile devices to enable
COMMERCE) online transactions
• e-commerce enabled by social networks and
SOCIAL E-COMMERCE
online social relationships
• e-commerce that is focused on engaging the
LOCAL E-COMMERCE consumer based on his or her current
geographic location
THE RELATIVE SIZE OF DIFFERENT TYPES OF
E-COMMERCE
Major Types of E-commerce
E-COMMERCE: A BRIEF HISTORY
ASSESSING E-COMMERCE: SUCCESSES,
SURPRISES, AND FAILURES
ASSESSING E-COMMERCE: SUCCESSES,
SURPRISES, AND FAILURES
 UNDERSTANDING E-COMMERCE:
ORGANIZING THEMES
• To truly understand e-commerce, you will
TECHNOLOGY: need to be familiar with some key concept in
Computer Technology Hardware, software,
INFRASTRUCTURE network, internet, web, programing, coding,
data mining, data processing,

•the nature of digital markets, digital goods, business models, firm and industry
BUSINESS: BASIC CONCEPTS value chains, value webs, industry structure, digital disruption, and consumer
behavior in digital markets, as well as basic concepts of financial analysis.

•You will need to understand the pressures that global e-commerce places on
SOCIETY: TAMING THE contemporary society in order to conduct a successful e-commerce business or
JUGGERNAUT understand the e-commerce phenomenon. The primary societal issues we discuss in this
book are individual privacy, intellectual property, and public welfare policy.
 UNDERSTANDING E-COMMERCE:
ORGANIZING THEMES
•To truly understand e-commerce, you will need to be familiar with some key concept in Computer Technology Hardware,
TECHNOLOGY: INFRASTRUCTURE software, network, internet, web, programing, coding, data mining, data processing,

• To truly understand e-commerce, you will

need to be familiar with some key business
concepts, such as the nature of digital
BUSINESS: BASIC markets, digital goods, business models, firm
CONCEPTS and industry value chains, value webs,
industry structure, digital disruption, and
consumer behavior in digital markets, as well
as basic concepts of financial analysis.
•You will need to understand the pressures that global e-commerce places on contemporary society in order to conduct a
SOCIETY: TAMING THE JUGGERNAUT successful e-commerce business or understand the e-commerce phenomenon. The primary societal issues we discuss in this
book are individual privacy, intellectual property, and public welfare policy.
 UNDERSTANDING E-COMMERCE:
ORGANIZING THEMES
TECHNOLOGY: INFRASTRUCTURE •To truly understand e-commerce, you will need to be familiar with some key concept in Computer Technology Hardware, software,
network, internet, web, programing, coding, data mining, data processing,

•To truly understand e-commerce, you will need to be familiar with some key business concepts, such as the nature of digital markets,
BUSINESS: BASIC CONCEPTS digital goods, business models, firm and industry value chains, value webs, industry structure, digital disruption, and consu mer behavior
in digital markets, as well as basic concepts of financial analysis.

• Understanding the pressures that global e-

commerce places on contemporary society is
SOCIETY: TAMING critical to being successful in the e-commerce
THE JUGGERNAUT marketplace. The primary societal issues are
intellectual property, individual privacy, and
public policy.
To be continue.....