Trend dan implikasi e-commerce, e-business dan

mobile business
Week 9
Business Information System

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Macy’s Races Ahead with Mobile Retail Strategies
Macy’s Races Ahead with Mobile Retail Strategies
Retailing Technology: KEEPING UP WITH CONSUMER DEMANDS AND
BEHAVIOR
Empowered Price Sensitivity
In today’s retail environment, the consumer is more empowered than ever to find the lowest price available for a product.
consumers can look up information about alternative products and prices from a variety of local and online retailers using a
mobile device.
Nonlinear Search and Influence Patterns
Purchases today is often varied and unpredictable. Consumers today are influenced by a range of new communications
channels including social media, mobile ads, e-mail, search marketing, and other digital communications.
Channel Hopping
consumers are influenced by a greater number of communications channels. Consumers can now purchase products
through traditional retailers, online, and via mobile devices and apps.
Digital Immigrants, Natives, and Dependents
Digital natives are the first generation to have grown up surrounded by digital devices. Digital immigrants are older, and
although they are increasingly comfortable with technology. Digital dependents represent the emerging generation of
young people who are growing up in a world of broadband connections, constant connectivity, and related technology and
become uncomfortable if they do not have access to it.
Need for Convenience
Consumers will be looking for products and shopping channels that reduce the impact on their time and financial
resources.
Retailing Technology: THE OMNI-CHANNEL RETAILING CONCEPT
Business to Consumer (B2C) E-commerce & Online Banking

Online banking includes various

banking activities conducted via
the Internet
instead of at a physical bank
location.
Business to Business (B2B) e-commerce and
e-procurement
In B2B markets, the buyers, sellers, and transactions
involve only organizations. B2B comprises about 85%
of e-commerce dollar volume.
Organizations sell their products or services to other
organizations from their own private website or from a
third party site.
e-sourcing is procurement methods that make use of
an electronic venue for identifying, evaluating,
selecting, negotiating, and collaborating with suppliers
e- procurement is the reengineered procurement
process using e-business technologies and
strategies. strategies and solutions linked to e-
procurement have two basic goals: control costs and
simplify processes.
two goals of cost control and streamlining can be met in
three ways:
1. streamline the e-procurement process within an
organization’s value chain
2. align the organization’s procurement process with
those of other trading partners, which belong to
the organization’s virtual supply chain.
3. use appropriate e-procurement strategies and
solutions.
Four types of exchanges are:
1. vertical exchanges: for direct materials
2. spot sourcing: for indirect materials, auctions are
typically used.
3. Horizontal exchanges: for MRO supplies which
are used for maintenance, repair, and operations
(and not resold to generate revenue)
4. Functional exchanges: needed services such as
temporary help or extra space
 Mobile Commerce
Mobile commerce, or m-commerce: The buying or selling of goods
and services using a wireless, handheld device such as a cell
phone or tablet (slate) computer.
Mobile e-commerce: The use of a wireless handheld devices to
order and/or pay for goods and services from online vendors.
Mobile retailing: The use of mobile technology to promote,
enhance, and add value to the in-store shopping experience.
Mobile marketing: A variety of activities used by organizations to
engage, communicate, and interact over Wi-Fi and
telecommunications networks with consumers using wireless,
handheld devices
There are several reasons why consumers and businesses have
been slow to embrace m-commerce:
● Relatively primitive mobile devices (compared to modern
smartphones and tablets)
● Concerns about privacy and security
● Slow network connection speeds
● Limited market size
● Limited and inconvenient mobile payment options
● Lack of technological standardization (devices, OSs,
browsers, etc.)
In-Store Tracking. In-store shopping experiences can be
optimized through mobile technology that can track a customer’s
movement through a retail store. Tracking how a customer moves
through a store, noting what displays the customer looks at, or
what departments the customer spends the most time in can be
extremely helpful for understanding individual consumer
preferences as well as creating optimal store layout
Quick Response (QR) Codes. Using a barcode scanner app and
the camera feature of a mobile device, customers scan the QR
code containing a link to an Internet webpage..
Location-Based Marketing. Foursquare.com is one of the most
popular apps in the growing field of mobile location based
marketing and mobile advertising. The Foursquare app makes use
of the mobile device’s GPS system to determine the user’s
location.rt5
Augmented Reality (AR). Augmented reality involves computer-
generated graphic images that are superimposed on pictures of
real things (e.g., people, rooms, buildings, roads, etc.).
How Angry Birds Make Mobile Game
Developers Happy
• In 2009, iOS and Android mobile gaming
apps accounted for just 11 percent of the
portable (handheld) gaming market
dominated by Sony and Nintendo. By 2013,
mobile games accounted for 27 percent of
the gaming market and are projected to rise
to 35 percent by 2017.
• Mobile gaming apps have become a
disruptive force in the marketplace,
displacing two historically strong companies.
• Many mobile games are available as free
apps supported by advertising revenues
Mobile Payment Systems
• Some forms of mobile payment represent an attractive option for consumers who do not
have credit cards.Additionally, retailers may benefit from new payment options that carry
lower transaction costs compared to what banks charge when credit cards are used.
• There are two basic transaction types of interest: using a mobile device for the online
purchase of goods and services and for payment of goods and services in a traditional
brickand-mortar store
• Some Approaches under development are:

Charge to Phone Bill with SMS Confirmation Transfer of Funds from Payment Account Using SMS

Near-Field Communications (NFC) Mobile Phone Card Reader

Phone-Displayed Barcode That Retailer Scans. User Scan of 2D Tags Generated by Retailer

Credit Card + Webform. Mobile Bill Payments

Mobile Banking and Financial Services
• Mobile banking is generally defined as carrying out banking transactions and
other related activities via mobile devices.
• The services offered include bill payments and money transfers, account
administration and checkbook requests, balance inquiries and statements on an
account, interest and exchange rates, and so on.
Definition of Electronic Commerce
electronic commerce (EC) is the process of buying, selling, or
exchanging product, service, or information via computer networks. EC
can also be defined from the following perspective :
a. Business process
b. service
c. learning
d. collaborative
e. communirty
Overview of Electronic Commerce (EC)

Business to business (B2B)

- Business make online transaction purchase with other business
Business to Consumer (B2C)
- Online Transactio between business and consumers
Business to employee (B2E)
- Information and service made available to employee online
Pure versus Partial EC
pure vs partial EC based on the degree of digitalization of Product,
process and delivery agent.
Traditional commerce tha all dimensions are physical
Pure EC : All dimension are digital
Partial EC : all other possibiliotis include a mix of digital and physical
dimensions
Dimension of Electric Commerce
Electronic Market and Interorganization
- Electronic Market (E-Marketplace) an online marketplace where
buyers and seller meet to exchange goods, service, money, or
information.
- Interorganization system is communicatio system that allow routine
transaction processing and infomation flow between two or more
organization.
- intraorganization system that enable e-commerce activities to go on
within individual organization
framework for electronic commerce
Interdisciplinary of Electronic Commerce
- computer science
- marketing
- consumer behavior
- finance
- economic
- management information system
- accounting
- management
- etc
Business Environmet
business environment is a result of advances in science occurring at an
accelerated rate. these advances create scientific knowledge that feeds
on itself resulting in more technology.
E-Commerce Business Model
A method of doing business by which a company can generate revenue to
sustain itself. Business Models are a subset of a business plan or a
business case.

According to McKay and Marshall (2004), a comprehensive business

model is composed of the following six elements:
● Customers’ value proposition ● Resources
● All products & services the ● Supply chain
business will offer ● Revenue model
● Business process
Value Proposition
A value proposition refers to the benefits, including the intangible, nonquantitative
ones, that a company can derive from using the model. In B2C EC, for example, a
value proposition defines how a company’s product or service fulfills the needs of
customers. The value proposition is an important part of the marketing plan of any
product or service.

Revenue Models
Description of how the company or an EC project will earn revenue.
Common Revenue Models
Functions of a Business Model
According to Chesbrough & Rosenbloom (2002), business models have
the following functions or objectives:
● Articulate a customer value proposition
● Identify a market segment
● Define the venture’s specific value chain structure
● Estimate the cost structure & profit potential
● Describe the venture’s positioning within the value network linking
suppliers & customers
● Formulate the venture’s competitive strategy
Typical EC Business Models
1. Online direct marketing
2. Electronic tendering systems.
3. Name your own price.
4. Find the best price.
5. Affiliate marketing.
6. Viral marketing.
7. Group purchasing.
8. Online auctions.
9. Product and service customization.
10. Electronic marketplaces and exchanges.
11. Information brokers (informediaries).
12. Bartering.
13. Deep discounting.
14. Membership.
15. Value-chain integrators.
16. Value-chain service providers.
17. Supply chain improvers.
18. Social networks, communities, and
blogging.
19. Direct sale by manufacturers.
20. Negotiation.
Benefits & Limitations of EC

BENEFITS

Organizations Consumers Society

Benefits & Limitations of EC

LIMITATIONS

Technological Nontechnological
Limitations Limitations
Social & Business Networks
Social networks are websites that connect people with specific
interests by providing free services such as photo presentation, e-mail,
blogging, etc.
The transaction in social networks are mostly people to people.

Business-oriented networks are social networks whose primary

objective to facilitate business or to help people find accommodations,
barter items, or conduct other business-oriented activities.
The Digital Enterprise
A new business model that uses IT in a fundamental way to accomplish one or
more of three basic objectives:
• Reach and engage customers more effectively
• Boost employee productivity
• Improve operating efficiency
It uses converged communication and computing technology in a way that
improves business processes.

A digital enterprise uses networks of computers to electronically connect:

• All its internal parts via an intranet, which is the counterpart of the Internet.
• All its business partners via the Internet, or via a secured Internet, called an
extranet, or via value-added private communication lines.
Managerial Issues about E-Commerce
1. People who reject technology
“Any company, old or new, that doesn’t see this technology literally
as important as breathing could be on its last breath”
Jack Welch, former Chief Executive Officer (CEO) of General Electric
2. Why is B2B e-commerce so attractive?
Some B2B models are easier to implement than traditional offline models, also, the
value of transactions is larger in B2B, and the potential savings are larger and easier to
justify
3. There are so many EC failures
4. How do we transform our organization into a digital one?
Once a company determines its strategy and decides to move to EC, it is necessary to
plan how to implement the strategy.
5. How should we evaluate the magnitude of business pressures and technological
advancement?
The approach is to ask for research expertise institution. If not, at the time you determine what's
going on, maybe too late.
6. How can we exploit social/business networking?
Some companies even open their own social networks. Advertising is probably the first thing to
consider.
7. What should be my company’s strategy toward EC?
A company can choose one of three basic strategies: lead, wait, or experiment.
8. What are the top challenges of EC?
The top 10 technical issues for EC (in order of their importance) are security, adequate infrastructure,
data access, back-end systems integration, sufficient bandwidth, network connectivity, up time, data
warehousing and mining, scalability, and content distribution.
The top 10 managerial issues for EC are budgets, project deadlines, keeping up with technology, privacy
issues, the high cost of capital expenditures, unrealistic management expectations, training, reaching
new customers, improving customer ordering services, and finding qualified EC employees
 DINAMIC PRICING AND TYPES OF AUCTIONS
➔ Dynamic pricing is prices that change based on supply and demand
relationships at any given time. In contrast, catalog prices are fixed, as are
prices in department stores, supermarkets, and many electronic storefronts.
Tipes of Auctions
➔ One Buyer, One Seller
Barter and individual transactions
➔ One Seller, Many Potential Buyers
Forward auction
➔ One Buyer, Many Potential Sellers
Tender, Business to Business (B2B) or Government-to- Business (G2B)
➔ Many Sellers, Many Buyers
Stock Market, Commodity Market
 BENEFITS, LIMITATIONS, AND IMPACTS OF E-
AUCTIONS
Benefits
the auction culture will revolutionize the way customers buy, sell, and obtain what they
want.
Limitation
E-auctions have several limitations. The most significant limitations are minimal security,
the possibility of fraud, and limited participation. Minimal Security. Some of the C2C
auctions conducted on the Internet are not secure, because they are done in an unencrypted
environment. This means that credit card numbers could be stolen during the payment
process. Payment methods such as PayPal (paypal.com).
Impact
Auctions as a Coordination Mechanism.
Auctions are used increasingly as an efficient coordination mechanism for establishing a price equilibrium. An
example is auctions for the allocation of telecommunications bandwidth.
Auctions as a Social Mechanism to Determine a Price.
For objects that are not traded in traditional markets, such as unique or rare items, or for items that may be offered
randomly or at long intervals, an auction creates a marketplace that attracts potential buyers, and often experts. By
offering many of these special items at a single place and time and by attracting considerable attention, auctions
provide the requisite exposure of purchase and sale orders, and hence liquidity of the market in which an optimal price
can be determined. Typical examples are auctions of fine arts or rare items, as well as auctions of communications
frequencies, Web banners, and advertising space. For example, wine collectors can find a global wine auction at
winebid.com.
Auctions as a Highly Visible Distribution Mechanism.
Some auctions deal with special offers. In this case, a supplier typically auctions off a limited number of items,
using the auction primarily as a mechanism to gain attention and to attract those customers who are bargain hunters or
who have a preference for the gambling dimension of the auction process. The airline seat auctions by Cathay Pacific,
American Airlines, and Lufthansa fall into this category
Auctions as an EC Component.
Auctions can stand alone, or they may be combined with other e-commerce activities. An example of the latter is the
combination of group purchasing with reverse auctions.
Benefit of E-Auctions
 BARTERING AND NEGOTIATING ONLINE
➔ Bartering The exchange of goods or services. e-bartering (electronic
bartering)
➔ Bartering conducted online, usually in a bartering exchange bartering
exchange A marketplace in which an intermediary arranges barter
transactions.
 ONLINE NEGOTIATING
Negotiated prices also are popular when large quantities are purchased. Much like
auctions, negotiated prices result from interactions and bargaining among sellers
and buyers. However, in contrast with auctions, negotiation also deals with
nonpricing terms, such as the payment method and credit. Negotiation is a well-
known process in the offline world (e.g., in real estate, automobile purchases, and
contract work). In addition, in cases where there is no standard service or product to
speak of, some digital products and services can be personalized and “bundled” at a
standard price.
E-COMMERCE IN THE WIRELESS ENVIRONMENT:
M-COMMERCE AND L-COMMERCE
The widespread adoption of wireless and mobile networks, devices
(smart cell phones, PDAs, etc.), and middleware (software that links
application modules from different computer languages and platforms)
is creating exciting new opportunities. These new technologies are
making mobile computing possible. These technologies permit real-
time access to information, applications, and tools that, until recently,
were accessible only from a desktop computer. Mobile commerce (m-
commerce) refers to the conduct of e-commerce via wireless devices or
from portable devices.
 THE MOBILITY REVOLUTION
Enterprises are adopting mobilized computing technologies at a tremendous rate.
They are using wireless hardware and applications for untethered computing. The
productivity gains available with mobilized technology continue to expand as the
price of the technology continues to drop. And in the case of mobility, the
technology revolutionizes the way that people work.
Organizations are embracing mobilized computing technologies for several reasons:
➔ It improves the productivity of workers in the field.
➔ Wireless telecom support for mobility is growing quickly.
➔ More applications can run both online and offline.
➔ The prices of notebook computers, wireless handhelds, and smart phones
continue to fall as their capabilities increase.
 Impacts on Manufacturing

Build-to-Order Manufacturing
Real-Time Demand-Driven Manufacturing.
Virtual Manufacturing
Assembly Lines