Internet & E-Commerce

1. Categories of the E-Commerce I • B2B and B2C Internet & E-Commerce Lecturer : Bambang Warsuta, S.Kom, M.T.I bambangwarsuta@gmail.com S1 TeknikInformatika FakultasIlmuKomputer Universitas Pembangunan Nasional “Veteran” Jakarta

2. Schedule • Pertemuan 1 (14 September 2013) : Introduction to Internet and E-Commerce • Pertemuan 2 (21 September 2013) : Categories Of E-Commerce I (B2B, B2C) • Pertemuan 3 (28 September 2013) : Categories Of E-Commerce II (C2C, G2B, G2C) • Pertemuan 4 (5 Oktober 2013) : E-Commerce Supporting Technology • Pertemuan 5 (12 Oktober 2013) : Case Study • Pertemuan 5 (19 Oktober 2013) : eBusiness Framework • Pertemuan 7 (26 Oktober 2013) : eProducts and eServices • Mid-semester test (Oktober / Nopember 2013) • Pertemuan 8 (16 Nopember 2013) : PresentasiKelompok I • Pertemuan 9 (23 Nopember 2013) : ePayment (Wisuda) • Pertemuan 10 (30 Nopember 2013) : Internet Marketing and eMarketing • Pertemuan 11 (7 Desember 2013) : Internet and E-Commerce Security • Pertemuan 12 (14 Desember 2013) : eCRM • Pertemuan 13 (21 Desember 2013): Presentasikelompok SESI I • LiburTahunBaru • Pertemuan 14 (11 Januari 2014) : Presentasikelompok SESI II • Final-semester test (Januari 2014)

3. The Origin and Development of e-commerce Pengembangan e-commerce sudahmelewati 3 tahapan, yaitu :

4. Tugas 1 (Review) • Carilahjenis-jenispekerjaandanjabatan yang berkaitandengan E-commerce. Deskripsipekerjaan (job description) besertagaji yang diberikan (Minimal 3 jenispekerjaan) • Carilahpengertiandari e-concept besertadengancontohnya minimal 2 contohdanberikandeskripsinya • Apakahperbedaan EDI over Internet dengan EDI VAN?

5. E-concept e-commerce • Faktanya, E-Commerce adalahkombinasidariteknologiinformasidanaplikasiperniagaan/jualbeli • E-concept E-commerce merupakankombinasidariteknologiinformasidengankebutuhanspesifikdariberbagaimacambidang- bidang. • Selainuntukbisnis, teknologiinformasielektronikdapatditerapkanpadaberbagaimacambidanglainnya, seperti : • BidangKedokteran (teknologiinformasidanKedokteran) • Pendidikan (teknologiinformasidansistempendidikan) • Bank Online (teknologidansistemkeuangan) • Dan sebagainya.

6. Definition of e-commerce • e-commerce refers to various online commercial activities focusing on commodity exchanges by electronic means, Internet in particular, by companies, factories, enterprises, industrial undertakings and consumers.

7. Definition of e-commerce • A large number of well-known organizations and corporations also have their own definitions on e-commerce. • For example, ISO defines e-commerce as: it is the general term for exchange of information among enterprise and between enterprise and customers; • the Global Information Infrastructure Committee defines it as the economical activities using electrical communications, with which people can purchase products, advertise goods and settle.

8. Definition of e-commerce The following are definitions given by transnational corporations Intel, IBM and HP respectively. • Intel: E-commerce = electronic market + electronic trade + electronic service • IBM: E-commerce = information technology + web + business • HP: E-commerce is to accomplish commercial business by electronic means.

9. Definition of e-commerce • It refers to commercial trade activities carried out by electronic methods, the electronicization of traditional trades. • The electronic means refer to electronic technologys, tools, equipments and systems, including telephone, telegram, television, facsimile, E-mail, electronic data interchange, computer, the communication network, credit card, electronic money and Internets. • Commercial activities comprise inquiry, offer, negotiation, contract signing, contract fulfillment, payment.

10. Narrow vs Broad Sense • In a narrow sense, e-commerce refers to various online commercial activities focusing on commodity exchanges by electronic methods, computer network in particular, by companies, factories, enterprises, industrial undertaking and consumers. • In a broad sense, electronic business (EB) refers to the electronicization of all business among all industries (including governments, enterprises, and institutional units), such as electronic government, electronic command, electronic education, electronic public business, electronic household etc.

11. Components of e-commerce

12. Component of e-commerce • Network: It includes Internet, Intranet, and Extranet. Internet is the foundation of e-commerce and the carrier of commercial business information. As to Intranet, it means for enterprises to carry out internal affairs. With regard to Extranet, it is the link between enterprises and users to carry out commercial activities. • E-commerce user. It includes personal consumers and business consumers. The business consumer scientifically manages staff, wealth, goods, production, supply and sales by Intranet, Extranet and MIS. Personal consumer has access to information and purchases goods by connecting Internet with browsers, set-top boxes, PDA (the personal digital assistance), Visual TV etc.

13. Component of e-commerce • Authentication Authority: The authentication Authority (CA), the authority recognized by law, is responsible for issuing, managing digital certificates and facilitating parties involved in online sales to identify each other. • Distribution center. It is in charge of sending goods that cannot be delivered on line to consumers and keeping track of goods flow. • Online bank. It provides the sellers and buyers the traditional bank business, such as settlement, and round-the-clock service. • The administration of the commercial activity. It consists mainly of departments of industry, customs, tax and trade.

14. Categories of the e-commerce • business to business (B2B), • business to customers (B2C), • customers to customers (C2C), • governments to business(G2B), • And goverment to customers (G2C)

15. B2B (Business to Business) • B2B, is the mainstream in e-commerce and the principal method to improve competition ability in the competitive market. • B2B, is carrying out commercial activities by EDI via special networks or Value-Added Networks (VAN, for short).

16. B2B (Business to Business) • B2B plays central part and will be the mainstream in the future, for the following reasons. • Volume of business transaction of B2B takes up the majority of the total trading volume in e-commerce • The B2B e-commerce companies hold an advantage in lowering operation cost • B2B e-commerce companies are more suitable for modern logistics management • B2B e-commerce companies are competitive in guaranteeing credit and capital security during operation course • E-commerce of B2B is more mature in both theory and practice

17. Volume of business transaction of B2B takes up the majority of the total trading volume in e-commerce • B2B transaction in 1999, taking up 78% of $139.6 billion of total e-commerce transaction volume • B2B, reached $455.7 billion in 2000, taking up 83% of $496.2 billion of total e-commerce transaction volume.

18. The B2B e-commerce companies hold an advantage in lowering operation cost (Reducing Cost) • The online business of B2B companies covers production, supply, sales, or purchase, transfer and storage, which are so extensive that it can provide many ways to reduce the cost: • First, reducing procurement cost by purchasing multitudinous commodities of single kind. • Second, reducing production cost by shortening production period. • Third, reducing operation cost by efficient inventory control. • Fourth, reducing sales cost by global batch sale.

19. B2B e-commerce companies are more suitable for modern logistics management • According to statistics, B2B e-commerce companies are more competitive than B2C e-commerce companies in reducing logistics dispatching by 20% - 60%.

20. B2B e-commerce companies are competitive in guaranteeing credit and capital security during operation course • Contrary to B2C companies, it is easy for B2B companies to inspect and identify the credit of their trade partners, because of their operation methods, fewer in batch and larger in quantity.

21. E-commerce of B2B is more mature in both theory and practice • E-commerce of B2B involved here refers to e-commerce of B2B based on Internet. • E-commerce based on EDI started at the beginning of the 70s of 20th c is typically B2B e-commerce  it means e-commerce takes the form of B2B at the very beginning

22. B2B stages at global e-commerce • B2B categories will become the main categories of e-commerce in the future, to which great importance shall be attached. • According to experts, global e-commerce has already entered the third stage. • The first stage, attention economy presented by Yahoo.  Awareness • The second stage, professional network economies (B2C, C2C) with Amazon and eBay as representatives of. • The third stage, integration economy, facing the four elementary markets (e-market, e-channel, e-procurement, e-enterprise etc.) by Internet and B2B e-commerce to boost the interaction of new economy and old economy.

23. B2C (Business To Customers) • B2C takes place between business and customers, in which online sales are carried out by Internet, such as the online bookstore Amazon.

24. B2C (Business To Customers) • B2C, Internet is resorted by businesses or enterprises to provide customers goods and services via websites. • Presently, various types of B2C websites spread all over Internet to supply customer a variety of goods and services, varying from flowers and books, to computers and cars etc.

25. B2C (Business To Customers) • From the perspective of the business relations between enterprises and customers, B2C falls into two categories: • seller (enterprises)—the personal buyers, and • buyer (enterprises)—the personal sellers.

26. Seller (enterprise)-personal buyers • Seller (enterprise)-personal buyers, is the categories in which enterprises sell goods and commodities to individual customers. • This e-commerce categories requires the support of high-efficient, low-cost logistics, the representative of which is the global distinguished online bookstore Amazon (http://www.amazon.com).

27. Buyer(enterprise) - personal sellers • Buyer (enterprise)-personal sellers, is the category in which business purchases goods or service from individuals. • This categories is usually used for online job application. For example, many enterprises advertise various job offers in Shenzhen Human Resources Network (http://www.szhr.com.cn), JOBSTREET, Karir.com.

28. E-commerce B2C categories of intangible goods and services • E-commerce categories of intangible goods and services are : • Online subscription categories • Advertisements-supported categories • Online donation categories

29. Online subscription categories • Customers subscribe intangible goods and services provided by enterprises and can consume them directly on line. • This categories is mainly used by some online enterprises to sell newspapers, magazines and programs of cable TV.

30. 2. Advertisements-supported categories • Online service providers provide customers online information service freely and obtain income from advertisements published in the websites. • This is the most successful categories, though it does not directly charge from customers. • Example : Yahoo, Google, KapanLagi, Detik.com, dansebagainya

31. Online donation categories • This categories is usually adopted by software companies to submit software to customers to improve its popularity and market share. • Some software companies offer alpha-version products to Internet users freely.

32. TERIMA KASIH