E-BUSINESS,

THE FUNDAMENTAL
 E-BUSINESS
E-Business is defined as the complex fusion of
business processes, enterprise applications, and
organizational structure necessary to create a high
performance business model.
The E-Business advantageous :
Streamlining the business process
Improving productivity and efficiency
Shortening the delivery time to customer
Offering more competitive products/services to
customer
Improving customer service system
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FOCUS OF E-BUSINESS
Traditional business focuses on product, price,
& channel distribution.
E-Commerce business focuses on the wider
market & online system, to get higher sales
order revenue.
E-Business focuses on ‘CUSTOMERS’ ! Focus
on what customers need and satisfaction
What do customers want ?
Shorter and on time delivery time
Committed customer care
Consistent competitive price
Treated & maintained personally 3
 CUSTOMER’S NEED
Customer’s Fundamentals :
Don’t waste our time
Remember who we are
Make it easy for us to order and procure the service
Make sure your service delights us
Customize your products and service for me

Customers expect companies to continuously

improve the followings :
Speed
Convenience
Personalization
Price 4
 TRANSFORMATION TO
E-BUSINESS
Why E-Commerce and Traditional Business
should transform into E-Business ?
Decrease time to produce and market new products
Reduce cost and time per transaction substantially
Reduce customer service cost dramatically
Reduce customer service time appreciably
Assure the ‘shorter and on time delivery’ to customer
Increase customer loyalty
Reach customers in the most effective way with
targeted offers
Increase profitability

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THE E-COMMERCE PHASE

First Phase, 1994 - 1997 : Presence

Web site, as the online presence, providing any
information related with the profile/products/services

Second Phase, 1997 – 2000 : Transaction

Buying & selling over the digital media
Focusing on order flow and gross revenue
Matching buyers & sellers who never found each
other in the past
New business model : Why sell it when you can give
it away
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THE E-COMMERCE PHASE
Third phase, 2000 – now : E-Business
Focuses on how the internet can impact the
profitability
Increases gross margin, rather than gross revenue
Includes all applications and processes
Includes front & back office applications that form the
core engine for the modern business
E-Business is the overall strategy of redefining old
business models, with the aid of technology, to
maximize customer value and profit.
E-Business : P2P, Path to profitability
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 10 (TEN) RULES OF E-
BUSINESS
Technology is no longer an afterthought in forming
business strategy, but rather the cause and driver

The ability to streamline the structure of

information and to influence and control its flow is a
dramatically more powerful and cost effective
service than is that of moving and manufacturing
physical products

Inability to overthrow the dominant, outdated

business design often leads to business failure
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 10 (TEN) RULES OF E-
BUSINESS
Using E-Commerce, companies can listen to the
customers and become the cheapest, the most
familiar, or the best

Don’t use technology just to create the product.

Use technology to innovate, entertain, and enhance
the entire experience

The business design on the future increasingly uses

reconfigurable e-business models to best meet
customer’s needs
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 10 (TEN) RULES OF E-
BUSINESS
The goal of new business design is for companies
to create flexible outsourcing alliances that not
only offload costs but also make customers
ecstatic

For urgent E-business projects, it’s easy to

minimize application infrastructure needs and to
focus on the glitzy front end apps. The oversight
can be costly in more ways than one

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 10 (TEN) RULES OF E-
BUSINESS
The ability to plan an e-business infrastructure
course swiftly and to implement it ruthlessly are
key to success. Ruthless execution is the norm.

The tough task for management is to align

business strategies, processes, and applications
quickly, correctly, and all at once. Strong
leadership is imperative.

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 MAJOR TRENDS DRIVING
INTO E-BUSINESS
There are 6 (six) major trends, driving organization into E-
Business enterprise :

Consumer trends
Faster service
Self Service
More product choices
Integrated solutions

E-Service
Integrated Sales & Service
Seamless Support
Flexible fulfillment and convenient service delivery
Increased process visibility
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MAJOR TRENDS DRIVING
INTO E-BUSINESS
Organizational
Outsourcing
Contract manufacturing
Virtual Distribution

Employee
Hiring the best and brightest
Keeping the talented employees

Enterprise technology
Integrated Enterprise applications
Multi-channel integration
Middleware 13
MAJOR TRENDS DRIVING
INTO E-BUSINESS
General Technology
Wireless Web applications
Handheld computing and information appliances
Infrastructure convergence
Application service providers

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 KEY TRENDS &
ASSUMPTIONS

TRADITIONAL BUSINESS
E-BUSINESS DESIGN
DESIGN

Product focused Customer focused

KEY TRENDS
Rigid, functionality oriented Flexible, integrated service
system applications
Cost reduction as the key to Customer relationship as the
KEY success key to success
ASSUMPTIO
NS Task oriented Solution oriented

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 LESSONS FROM E-
BUSINESS
Management of Technology
Customer focus oriented
Value creation is a continuous process
Transform business process into digital form
Decentralize management but centralize
coordination
Creating an e-business application
architecture, which involves Interface,
Integration, and Innovation
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 LESSONS FROM
AMAZON.COM
Customers don’t care what your office looks like;
they only care about getting the great service.
Keep your website simple
Create a wonderful customer experience
Create a community of customers
Business planned for profit apt to fail; Business
planned for service are apt to succeed.
Listen to your customers and commit 100% to
customer service.

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 ENTERPRISE RESOURCE
PLANNING (ERP)
Integrating and automating the information running
along the business processes, across business
applications.

ERP transforms transactional data into useful

information and collates the data so that it can be
analyzed. All of the collected transactional data
becomes information that companies can use to
support business decisions.

ERP speeds communications and the distribution &

analysis of information, facilitating the exchange of
data across corporate divisions. 18
 ERP
ERP is the technological backbone of E-Business, an
enterprise wide transaction framework with links
into sales order processing, inventory management
& control, production and distribution planning, and
finance.

E-Commerce is the front office, while ERP is the

back office. When customer buys something from a
web site, store, or call center, the response is
automatically triggered in the sales, accounting,
and logistic applications.

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 ERP
ERP offers customers a more efficient and
higher quality level of service, including the
ability to order products on line and to
inquiry about product pricing and order
status.

ERP is not restricted to large firms. In the

dot com world, managing customer
relationship is one of the key to success. If
companies don’t provide the services
customers expect, they will go elsewhere. 20
 ERP EVOLUTION
Wave 1, 1970’s : MRP (Material Requirement
Planning) & DRP (Distribution Resource
Planning), focused on automating all aspects of
production master scheduling and centralized
inventory planning.

Wave 2, 1980’s : MRP II, extending MRP

traditional focus on production processes into
other business functions, including order
processing, manufacturing, and distribution.
MRP II shows how technology could link
disparate business functions. 21
 ERP EVOLUTION
Wave 3, 1990’s : Migrating MRP to ERP, more business
function applications are integrated

The key business drivers forcing MRP (Material

Requirement Planning) migrates to ERP :
Replacing creaky legacy systems.
Gaining greater control
Managing global operations
Handling industry deregulation and regulatory change
Improving integration of decisions across the
enterprise

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 ERP EVOLUTION
The idea behind integration : Use technology to
develop process standardization across multiple
business units in order to generate continued
margin expansion and greater return on capital.

Wave 4, 1997 : CRP (Customer Centric Resource

Planning), the ERP evolution from focusing on cost
cutting, efficiency, & productivity to a new focus on
customer value, effectiveness, and enhanced
service delivery.

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 ERP EVOLUTION
CRP (Customer Centric Resource Planning), is the
solution for the business requirements of “build to
order/fulfill to order” paradigm. CRP strategies
assume that companies must plan continuously
instead of classic ERP assumption of long planning
cycles.

Wave 5, 2000’s : XRP (Extended Resource

Planning), extending the organizational foundation
of an ERP backbone to its customers, suppliers, and
trading partners. It’s an ERP with supply chain
planning.

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 ERP
Implementation of ERP suite application is a crucial
and critical decision.

The risk was certainly disruption of business,

because if you do not do ERP properly, you can kill
your company, guaranteed …. said Jim Prevo, CIO
of Green Mountain Coffee

Getting the fit wrong can destroy an organization’s

competitive capability
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 ERP
Fox Meyer Drugs, a 5$ billion pharmaceutical
wholesaler, filed for bankruptcy protection following a
bad case of ERP implementation (by Andersen
Consulting).

When implemented properly, ERP will work well.

Often the problem lies not with ERP concept, but in
the management’s demands for quick fixes and rapid
cures to underlying structural problem, which cannot
be fixed quickly or cured rapidly.

Companies that recognize ERP limitations, will gain

significant operational benefit from ERP. 26
 WHAT NEEDS DRIVE
ERP ?
The need to create an application framework to improve
customer order processing.

The need to consolidate and to unify relevant business

functions

The need to integrate a broad range of disparate

technologies, along with the business processes they
support, into common processes and a common
technology platform

The need to create a new technological foundation to

support next generation E-Commerce applications. 27
 ERP CASE STUDIES
Microsoft
The requirement : Financials, Procurement, and
Human Resources.
SAP R/3 enabled Microsoft to capitalize on new
business opportunities and make the links with
its customers and vendors, more efficient &
effective
Spending 10 months and $25 million, installing
SAP R/3. The result, Microsoft saves $18 million
annually, and lead Bill Gates to call SAP ‘an
incredible success story’.
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 ERP CASE STUDIES
Owens Corning, the world’s top makers of glass fiber &
composite materials
The goal : increasing the revenue, from $2.9 billion to $5
billion per year
The business goal : Offering one call shopping for exterior,
insulation, pipes, and roofing materials. It includes :
Accepting customer orders from any location
worldwide into 1 (one) system
Assigning ship dates to available products
Scheduling future ship dates for products not in
stock
Checking order status 24 hours a day, 7 days a
week 29
 ERP CASE STUDIES

Owens chose to implement SAP R/3.

SAP enables Owens to publish single
product list, single price list, tracking the
finished goods inventory (in warehouse or
distribution channel), and save $65 million
at the end of 1998

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 ERP SUITE BRAND

SAP R/3
ORACLE
PEOPLESOFT
JD EDWARDS
GREATPLAINS
JAVAIS
ABAS
IFS, etc 31
 Microsoft Dynamics NAV
Paket piranti lunak enterprise resource plannign
Microsoft yang bertujuan untuk membantun
pengelola perusahaan kecil dan menengah
melaksanakan tugas-tugas keuangsn, manufaktur,
pengelolaan hubungan pelanggan, rantai pasok,
analitis dan perdagangan elektronik.
NAV, yang diluncurkan Microsoft pada Oktober
2004, awalnya dikembangkan oleh Navision
Software A?S, perusahaan Denmark yang berdiri
pada 1984. Itu sebabnya nama kode NAV adalah
Navision.
Pda 2002, Microsoft membeli Navision dan
menjadikannya divisi Microsoft Business Solutions.
Pada 2007, Microsoft melepas Microsoft Dynamics
NAV versi 5.0

32

Sumber: Koran “Tempo”, rabu 18 Juli 2007

 ERP untuk Usaha Kecil

Microsoft memperkenalkan solusi pengelolaan

bisnis yang dirancang khusus untuk perusahaan
kecil dan menengah.
Sistem ini merupakan perkembangan dari ERP.
Sistem ini mengintegrasikan semua data dan proses
di sebuah organisasi menjadi sebuah sistem
terpadu.
ERP mewnggunakan pangkalan data terpadu untuk
menyimpan data bagi berbagai modul sistem
Untuk mencapai integrasi maka sistem ERP
menggunakan beragam komponen piranti lunak
dan keras komputer

33
Sumber: Koran “Tempo”, rabu 18 Juli 2007
 Dynamics Entrepreneur Solution

Dikenalkan di ajang Worldwide Partner Conference

di Denver, AS.
Terdiri dari piranti lunak keuangan, pembelian,
penjualandan pemasaran.
Menurut Barb Edson, Direktur Microsoft Dynamics,
produknya cocok untuk perusahaan dengan
karyawan hingga 49 orang dan hingga 5 orang
pengguna bersama
Dengan program keuangannya pengguna bisa
mewnghitung pajak pertambahan nilai secara
otomatis, mudah me-reconjcile account bank,
membandingkan penerimaan dan pengeluaran
secara langsung, serta mengelola proses keuangan
dalam berbagai kurs mata uang.

34

Sumber: Koran “Tempo”, rabu 18 Juli 2007

 Program pembeliannya bisa menyimpan informasi vital mengenai pemasok,
termasuk harga dan potensi diskon
 Dengan mudah menangani penjualan, pesanan, tagihan dan surat kredit.
 Pengguna bisa secara otomatis menentukan pemasok mana yang
diprioritaskan untuk dibayar berdasarkan kriteria kepentingan dan
ketersediaan kas.
 Program penjualan dan pemasaran., pengguna bisa membuat daftar
pelanggan dan item penjualan untuk melihat siapa membeli apa.
 Pengguna bisa juga menjaga kontak bisnisnya terkelola baik dan up-to-date
 Paket piranti lunak ini pertama hanya akan tersedia di pasar Eropa mulai
September 2007
 Di kawasan lain menyusul setelah itu, diluncurkan di empat negara: Jerman,
Belanda, Spanyol dan Inggeris dengan harga 795 euro (Rp. 9,86 juta)
 Paket Dynamics Entrepreneur Solution ini merupakan bagian dari paket
software untuk bisnis Microsoft Dynamics.
 Sebelumnya, telah dil;uncurkan Microsoft Dynamics CRM, AX, GP, SL dan
NAV serta Microsoft Retail Management System.

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Sumber: Koran “Tempo”, rabu 18 Juli 2007