MANAJEMEN OPERASI LANJUTAN

(Advanced Operations Management)

Didik Setyawan

PROGRAM STUDI S2 FARMASI

UNIVERSITAS SETIA BUDI SURAKARTA

Operations Management – MSi FE UGM - ADG

E-Business

Operations Management – MSi FE UGM - ADG

Electronic Commerce:
Definitions and Concepts
electronic commerce (EC)
The process of buying, selling, or exchanging products, services,
or information via computer networks
EC is defined through these perspectives
Communications

Commercial (trading)

Business process

Service

Learning

Collaborative

Community

EC 2006 Prentice Hall 3

Operations Management – MSi FE UGM - ADG
E-Business
 E-business is the execution of business
transactions via internet
 E-business (Turban et al., 2007)
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

Operations Management – MSi FE UGM - ADG

E-Business
 Transactions that can be executed with e-
business:
 Providing product information
 Placing orders with suppliers
 Allowing customers to place orders
 Allowing customers to track orders
 Filling and delivering orders to customers
 Receiving payment from customers

Operations Management – MSi FE UGM - ADG

Electronic Commerce:
Definitions and Concepts
 Pure Versus Partial EC
 EC takes several forms depending on the degree
of digitization (the transformation from physical to
digital)
(1) the product (service) sold,
(2) the process,
(3) the delivery agent (or intermediary)

EC 2006 Prentice Hall 6

Operations Management – MSi FE UGM - ADG
The Dimensions of Electronic
Commerce

EC 2006 Prentice Hall 7

Operations Management – MSi FE UGM - ADG
The E-Business Framework

 Impact on responsiveness (which

primarily affects a company’s ability to
grow and protect revenue)
 Impact on efficiency (which primarily
affects a company’s costs)

Operations Management – MSi FE UGM - ADG

 Impact of E-Business on
Responsiveness
 Direct Sales to Customers
 24 Hour Access from Any Location
 Wider Product Portfolio and Information Aggregation
 Personalization/Customization
 Faster Time to Market
 Flexible Pricing, Product Portfolio, and Promotions
 Price and Service Discrimination
 Efficient Funds Transfer
 Lower Stockout Levels
 Convenience/Automated Processes
 Potential Revenue Disadvantage of E-Business

Operations Management – MSi FE UGM - ADG

Impact of E-Business on Costs
 Inventory
 Facilities
 Transportation
 Information

Operations Management – MSi FE UGM - ADG

 Table. Summary of E-Commerce Levels
Level
Description Example
number
One-way E-mail, FTP,
1
communication browsing
Inquiries, forms,
Data base
2 purchase,
access
tracking
EDI,
3 Data exchange
clearinghouse
Sharing CPFR,
4
processes exchanges

Operations Management – MSi FE UGM - ADG

 The E-Business Scorecard

Area Impact Area Impact

Efficient Fund
Direct Sales
Transfer

24 Hour Access Lower Stockouts

Wider Product Automated

Portfolio Processes
Customization Inventory
Faster Time to
Facilities
Market
Flexible Pricing Transportation

Price Discrimination Information

Operations Management – MSi FE UGM - ADG

 The B2B Addition to the E-Business
Framework
 Transaction costs: are reduced by automating
processes, eliminating duplication of work, reducing
error rates, and decreasing cycle time during order
placement.
 Market efficiencies: offer two avenues for a firm to
extract value – the price paid to suppliers and the
ability of the firm to match surplus capacity in its supply
chain with unmet demand.
 Supply chain benefits: result from better coordination
and collaboration across different stages of a supply
chain

Operations Management – MSi FE UGM - ADG

Transaction Costs
 E-business is significantly reduce
transaction cost if:
 Transaction are frequent and small in size
 Phone and fax are current mode of transmitting orders
 A lot of effort is spent reconciling product and financial
flows
 Providing the ability to: search for products;
identify product availability and pricing; identify
substitutes; perform credit checks and
financing etc.

Operations Management – MSi FE UGM - ADG

Improved Market Efficiencies
 E-business is significantly reducing prices if:
 Limited buyer/seller qualification is required
 A fragmented market exist with many competing
players either on the buy or sell side
 A large numbers of buyers/sellers can be
attracted to the online site

Operations Management – MSi FE UGM - ADG

 Supply Chain Benefits
 Increased visibility

Hard
 Collaboration
Ease of Implementation

Market Efficiencies
 Improved marketplace information
 Buyer and seller aggregation
 Match shortages and surpluses
Easy

Reduced Transaction Charges

 Lower cost of procurement
 Improved contract management

Low High
Value Created
Fig. B2B E-Business Value Proposition
Operations Management – MSi FE UGM - ADG
 E-Business In Practices
 Integrate the internet with the existing physical
network
 Devise shipment pricing strategies that reflect
costs
 Optimize e-business logistics to handle packages
 Design the e-business supply chain to efficiently
handle returns
 Keep customers informed throughout the order
fulfillment cycle

Operations Management – MSi FE UGM - ADG

E-business Application Architecture

Operations Management – MSi FE UGM - ADG

Definitions and Concepts of ERP
 Enterprise resource planning (ERP) is
business process management software that
allows an organization to use a system of
integrated applications to manage the
business and automate many back office
functions related to technology, services and
human resources.

Operations Management – MSi FE UGM - ADG

E-business Application Architecture

 The diagram illustrates the application

components, interrelationships, and
interfaces with
 customers
 employees
 business partners
 other stakeholders in the E-business
enterprise

Operations Management – MSi FE UGM - ADG

Dimension of Customer Value

 Conformance to requirements
 Product selection
 Price and brand
 Value-added services
 Relationships and experiences

Operations Management – MSi FE UGM - ADG

Conformance to Requirements
 The ability to offer what the customer
wants and needs
 Related to customer access which is the
ability to easily find and purchase a
product (includes the perception of
providing the customers with a store or
website layout that makes it easy to find
and purchase the product)

Operations Management – MSi FE UGM - ADG

Product Selection
Ways to control inventory problem:
 Build to order model

 Larger inventories at major distribution

centers
 Inventory cost of products at the warehouse
 Equalizing small and large retailers
 A fixed set of option that cover most
customer requirements

Operations Management – MSi FE UGM - ADG

Price and Brand

 Price vs Service Level

 Narrow price range for certain
products
 Every day low price (EDLP)
 Quantity discounts

Operations Management – MSi FE UGM - ADG

Value Added Services
 Value added services can be a major
factor in the purchase of products,
especially technical products.
 True commoditization of products
 The need to get closer to the customer
 The increase in information technology
capabilities

Operations Management – MSi FE UGM - ADG

Relationships and Experiences
 Increase connection between the firm
and customers (increases the
switching cost)
 Build specific user profiles and utilize
this information to enhance sales and
retain customers
 Companies learn about each
customer preference and needs (one
to one enterprise)
Operations Management – MSi FE UGM - ADG
Eight Steps to Delivering Total
Customer Experience
1. Create a compelling brand personality
2. Deliver a seamless experience
3. Care about customers
4. Measure what matters to customers
5. Hone operational excellence
6. Value customers’ time
7. Place customer’s information requirements
8. Design the ability to change practice

Operations Management – MSi FE UGM - ADG

Strategic Pricing
 Exact same product is sold at different
prices
 Adjust prices according to demand
 Provide a rebate depend on the product
was purchased
 Change as often daily

Operations Management – MSi FE UGM - ADG

Revenue Management
 Integrate pricing and inventory strategies to
influence market demand, provide controls
for companies to improve the bottom line.
 “Selling the right inventory to the right type of
customer, at the right time, and for the right
price”

Example

Operations Management – MSi FE UGM - ADG

Smart Pricing
 Customized pricing
 With no rebate
 With mail-in-rebate
 Dynamic pricing, key challenge:
 Availability capacity
 Demand variability
 Seasonality in demand pattern
 Length of the planning horizon

Operations Management – MSi FE UGM - ADG

Customer Value Measures

 Service level
 Customer satisfaction
 Supply chain performance
measure, ex:
 Total supply chain management costs
 Cash-to-cash cycle time
 Upside production flexibility
 Delivery performance to request

Operations Management – MSi FE UGM - ADG

IT and Customer value
 Customer benefits
 Increased importance of intangibles
 Increased ability to connect and
disconnect
 Increased customer expectations
 Tailored experience
 Business benefits
 Business-to-business benefits

Operations Management – MSi FE UGM - ADG

Next:

Supply Chain Management

Operations Management – MSi FE UGM - ADG