PPT Meetin 1 Perkuliahan Pengantar digital bisnis

1. MGMT8040 – Digital Business & E-Commerce
Management
Topic 1 - Introduction to Digital Business
& E-Commerce
D5629 – Willy Gunadi, S.Kom., MM., Ph.D.

2. Learning Objectives
• Define the meaning and scope of digital business
and e-commerce and their different elements.
• Recognize changes in paradigm and strategic
assumptions from analogue to digital world.
• Understand the impact of digital transformation on
business, including consequences on the marketing
and communication techniques.
• Understand the basic principles in managing digital
business.

3. The Five Domains of
Digital Transformation

4. Changes in Strategic
Assumptions from the
Analog to the Digital Age(1)
Domain From To
Customers
(Harness
Customer
Networks)
• Customers as mass market
• Communications are broadcast to
customers
• Firm is the key influencer
• Marketing to persuade purchase
• Customers as dynamic network
• Communications are two way
• Customers are the influencer
• Marketing to inspire purchase,
loyalty and advocacy
Competition
(Build platforms,
not just
products)
• Competition within defined
industries
• Products with unique features and
benefits
• A few dominant competitors per
category
• Competition across fluid
industries
• Platforms with partners who
exchange value
• Winner-takes-all due to networks
effects

5. Changes in Strategic
Assumptions from the
Analog to the Digital Age(2)
Domain From To
Data
(Turn data into
assets)
• Data is expensive to generate in
firm
• Challenge of data is storing and
managing it
• Data is a tool for optimizing
process
• Data is continuously generated
everywhere
• Challenge of data is turning it
into valuable information
• Data is intangible asset for
value creation
Innovation
(Innovate by
rapid
experimentatio
n)
• Decisions made based on
intuition and seniority
• Testing ideas is expensive, slow
and difficult
• Experiments conducted
infrequently, by expert
• Decisions are made based on
testing and validating
• Testing idea is cheap, fast and
easy
• Experiment conducted
constantly, by everyone
Value
(Adapt your
value
proposition)
• Value proposition defined by
industry
• Optimize your business model
as long as possible
• Value proposition defined by
changing customer needs
• Evolve before you must, to stay
ahead of the curve

6. Google Innovation

7. The Paradigm Shift (1)
• Your every move is now being tracked, recorded, viewed, and archived.
• People are sharing vast amount of personal information online.
• We now have a vastly interconnected web of personal and professional
connections called “the social graph”
• You now need to invest in thorough training and may need to shore up
your in-house resources to properly manage all your relationships on
the social graph.
• Your visibility and findability will land you the best opportunities.

8. The Paradigm Shift (2)
• Consumers, publishers, and the media can easily see the size and
quality of your online “digital footprint” and use it as the key decision-
making factor.
• Consumers finally have a voice.
• Anyone can now carve out his or her piece of virtual real estate on the
Internet.
• You can now significantly enhance and accelerate the growth of all
your relationships by blending offline and online strategies.

9. The Impact of Electronic
Communications on
Traditional Businesses
• The impact and time to react varies by sector…
• Andy Grove, Chairman of Intel, one of the early adopters of
e-commerce, has made a meteorological analogy with the
Internet.
He says:
‘The Internet is a typhoon force, a ten times force,
or is it a bit of wind? Or is it a force that fundamentally
alters our business?’ (Grove, 1996)

10. New Communications
Approaches
and Consumer Behavior (1)
Inbound marketing
The consumer is proactive in actively seeking out information for their
needs, and interactions with brands are attracted through content, search
and social media marketing.
Zero Moment of Truth (ZMOT)
A summary of today’s multichannel consumer decision-making
for product purchase where they search, review ratings, styles,
prices and comments on social media before visiting a retailer.

11. New Communications
Approaches
and Consumer Behavior (2)
Mobile Marketing and Commerce
Mobile marketing and commerce refers to electronic transactions and
communications conducted using mobile devices such as smartphones
and tablets, and typically with wireless connection.
• Results: growth popularity of mobile apps and location based use of
mobile phones

12. Zero Moment of Truth

13. Consumer “Micro Moments”
Source: Think With Google, “4 New Moments Every Marketer Should Know”

14. Social Media Marketing
Radar

15. E-Commerce & Digital
Business
• Electronic commerce
All electronically mediated information exchanges between an
organization and its external stakeholders.
• Digital business
How businesses apply digital technology and media to improve the
competitiveness of their organization through optimizing internal
processes with online and traditional channels to market and supply.

16. Digital Business
Opportunities
• Reach
– Over 1 billion users globally
– Connect to millions of products
• Richness
– Detailed product information on 20 billion+ pages
indexed by Google. Blogs, videos, feeds…
– Personalised messages for users
• Affiliation
– Partnerships are key in the networked economy.

17. What Can Go Wrong with
a Transactional Site?
• Site downtime affecting whole site or some processes
• Security attack, e.g. denial of service, content hijacked
• Wrong content presented for site visitor

18. Digital Marketing
• Digital marketing involves:
• Applying these technologies which form online channels to market:
• Web, email, databases, plus mobile/wireless and digital TV.
• To achieve these objectives:
• Support marketing activities aimed at achieving profitable acquisition and retention of customers
. . . within a multichannel buying process and customer lifecycle.
• Through using these marketing tactics:
• Recognizing the strategic importance of digital technologies and developing a planned approach
to reach and migrate customers to online services through e-communications and traditional
communications.
Retention is achieved through improving our customer knowledge (of their profiles, behavior,
value and loyalty drivers), then delivering integrated, targeted communications and online
services that match their individual needs.

19. The Rise of Digital
Marketing in Indonesia
• Large number of sophisticated users
• High customer value of Digital Marketing users
• Management’s (CEO/CMO) knowledge of Digital Marketing
• Quick digitalizing process of conventional media
• The availability of Digital Marketing measurements
• Many success stories reported of using digital marketing to
build brand and increase sales

20. Three Main Options for
Online Media Investment

21. Digital and Offline
Communication
Techniques

22. Type of Transactions

23. Summary
• Electronic commerce traditionally refers to electronically mediated buying and
selling.
• ‘Digital business’ or e‐business is a broader term, referring to how technology
can benefit all internal business processes and interactions with third parties.
This includes buy‐side and sell‐side e‐commerce and the internal value chain.
• Sell‐side e‐commerce or digital marketing involves all electronic business trans‐
actions between an organization and its customers, while buy‐side e‐commerce
involves transactions between an organization and its suppliers. Social
commerce encourages customers to interact to support sales goals.
• Digital marketing involves investment in paid, owned and earned media across
the six key digital marketing media channels of search engine marketing, online
PR and social media, partnerships, display advertising, email marketing and viral
marketing. Inbound marketing describes the use of integrated content, social
media and search marketing to influence consumers as they select products,
sometimes referred to as the Zero Moment of Truth.

24. References
• Chaffey, D. (2015). Digital Business and E-Commerce
Management (6th Ed.). Pearson International Edition. ISBN:
9780273786542
• Rogers, D. L. (2016). The Digital Transformation Playbook:
ReThink Your Business for The Digital Age. Columbia
Business School Publishing. New York. ISBN: 9780231175449
• https://www.thinkwithgoogle.com/marketing-
resources/micro-moments/micro-moments-understand-
new-consumer-behavior/

25. Thank You