E-Business & E-Commerce Models and Strategies This session designed for "E-Commerce" Subject. Design by Heru Wijayanto @ 2020

1. Heru Wijayanto, MM. MBA. M.MT
heru@sociopreneur.id
E-Business & E-Commerce
Models and Strategies

2. BACKGROUND
2
• Electronic business (e-business) is business that uses the Internet and online
networks as the channel to consumers, supply chain partners, employees, and so on.
• During the early web era, the online channel was stand-alone.
• Today, as you know from personal experience, companies are multichanneling—
integrating online and offline channels for maximum reach and effectiveness.
• In the 2010s, organizations continue to radically rethink their approach to e-business
process, the Internet, and how mobile technologies might impact their business.
• Here are several types of changes impacting companies directly or indirectly :
• Retailers are advertising and selling through social channels, such as Facebook, Twitter, RSS
feeds, blogs, and via comparison shopping engines.
• Consumers are using mobile handheld devices to research brands, products, and services
from multiple sources.
• Often B2B sites lacked helpful features and capabilities of business-to-consumer (B2C) sites.
• Governments and agencies are expanding and refining their government-to-citizen (G2C)
web sites to improve services and outreach at reduced cost.
• Security issues are a chief concern for e-businesses and e-government agencies.

3. 3
• Once known only for its search engine business, today
Google is a mega e-business empire that offers products
and services in a wide range of categories.
• While Internet search continues to be its most well-
known service, several other Google products have
become leaders in their respective categories.
• Google was started in 1998 by Larry Page and Sergey
Brin, two students in Stanford University’s Ph.D.
program.
• Page and Brin’s academic work focused on innovative
ways of understanding the structure of the Internet
based on how web pages linked to each other.
• This ultimately led to the development of the Google
search engine which was different from other popular
search engines of the time (e.g., Yahoo, Excite, Lycos,
and AltaVista among others).
A Better Way to Search the Web

4. 4
• Many of these early search engines emphasized web page content.
• So-called key words built into web pages were a key determinant of
search results.
• Page and Brin’s approach used web page content, but prioritized
search rankings by the number of other Internet pages that linked
back to a page.
• Page and Brin reasoned that the number of backlinks a page has is a
good indicator of its popularity or importance.
• Their PageRank™ algorithm turned out to be an important
innovation as people began finding results from Google’s search
engine more helpful than other sites.
• Google’s increasing popularity with search engine users led to an
opportunity for generating revenue from advertising, which
continues to be its primary source of income today.
• By June 2000, Google became the world’s largest search engine.
A Better Way to Search the Web
Source : www.reliablesoft.net (2019)

5. 5
Google Products
For ALL
For Business
For Developers
Source : https://about.google/intl/en/products/

6. 6
Google Culture: Massages, Free Food and “Don’t Be Evil”
• Google distinguishes itself by its unusually open and
progressive corporate culture.
• Since the beginning, Google sought to develop a
culture that inspires creativity, diversity, and a
determined work ethic.
• Google is also known for its ethical values,
summarized by its famous motto “Don’t be evil.” A list
of 10 guiding principles developed during Google’s
early days continues to frame strategy and decision
making at the company.
• Google’s popularity as an employer is well known. It is
regularly listed as one of the most desirable places to
work. Google employees enjoy unusual perks like free
food in cafeterias, game rooms, health club facilities,
fitness classes, subsidized massages, free haircuts,
and laundry service.

7. 7
Business-to-Business Market (B2B)
• Most of Google’s revenue comes from an advertising business model.
• This means that despite its popularity with individual Internet users around the
world, Google is part of a business-to-business (B2B) market with most of its
revenue coming from organizations that pay Google to display advertisements to
those of us who use its many services for free.
• Google also sells a variety of enterprise-level IT products to business
organizations.
• Many of these services, including Gmail, Search Tools, and mapping solutions
are similar in nature to the advertising-supported versions available to the
general public.
• These enterprise solutions however, are designed to be deployed and managed
by corporate IT personnel, often integrating with existing IT systems like
corporate Intranets.
• Google clearly operates B2B e-commerce sites that follow the
“Manufacturer/Direct Sales” business model whereby the company provides
products and services directly to enterprise customers for a fee. This channel is
sometimes referred to as the Value Added Reseller Model.
Google’s Business Models and Markets

8. 8
Business-to-Consumer (B2C) Market
• Like any advertising business, Google must have a sharp focus on the needs of the end user,
those of us who use its services.
• After all, it is this large market of individuals using Google’s free products that help it attract
fee-paying advertisers. As a result, Google still needs to practice marketing and branding from
a business-to-consumer (B2C) perspective, competing with companies like Microsoft, Apple,
Facebook and others to entice people to use its products.
Business-to-Government (B2G) Market
• Google actively promotes its enterprise solutions to a variety of government agencies in the
U.S. and abroad.
• As a result, the company is actively engaged in Business-to- Government (B2G) marketing. For
instance, the U.S. Department of Interior recently became one of Google’s largest government
customers of cloud-based services, providing e-mail and collaboration tools to the large
federal agency.
• Many government agencies utilize Google’s Search Appliance product.
• The company promotes Google Apps for Government, an enterprise suite that includes Gmail,
Google Calendar, Google Docs and video sharing among other things. This reduces the need
for governments to develop these tools on their own, saving millions of tax payer dollars.
Google Apps meet all the standards of the Federal Information Security Management Act
(FISMA).
Google’s Business Models and Markets

9. 9
Privacy
• Google compiles information about
everyone who uses its products and builds
individual profiles that allow it to sell
targeted advertising services to businesses.
• In March 2012, Google consolidated 60
different privacy policy statements, written
for different services, into a single,
companywide policy.
• Almost immediately, the new policy came
under fire from privacy critics and
government agencies around the world.
Domestic and International Business Challenges
Conflicts with Totalitarian Governments
• Access to information and freedom of speech represent a special challenge for
Google.
• The company must sometimes contend with foreign governments that strictly control
the information their citizens have access to.
• The country that has tested Google’s business model (providing information to attract
users) and its corporate values (e.g., “Don’t be evil”) more than any other is China.
• When Google first launched its Chinese search engine, Google.cn, in 2006, it
voluntarily conformed to strict Chinese censorship rules that blocked information on
key words or topics objectionable to the Beijing government.
• By 2009, however, Google announced its Gmail system had been the target of a series
of cyber-attacks, which they all but blamed on the Chinese government.
• By 2010, Google stopped censoring results on their search engine, and instead
redirected searches from mainland China to their Hong Kong–based search page,
which operated without the same government censorship rules.
Ethical and Legal Issues

10. 10
• As a large, multifaceted e-business, Google has enjoyed tremendous
success in spite of the complexities associated with serving global B2B,
B2C, and B2G markets.
• At the same time, it faces an ever-evolving set of legal and ethical
challenges around the world.
• The company has been praised for its stimulating and rewarding work
environment designed to attract creative, intelligent, and hardworking
employees.
• Its progressive corporate culture and stated desire to balance the profit
motive with important ethical values have made it one of the most
popular e-businesses worldwide.
• Google continues to pioneer innovative products and services that are
increasingly popular with Internet users.
• Because of its size and dominant position in the market, it is sometimes
difficult to remember that Google is still a relatively young company that
has managed a complex set of technology, business and ethical
challenges better than many others.
Conclusion

11. E-BUSINESS CHALLENGESAND STRATEGIES
11
• The popularity of Internet and mobile technologies has created an
environment where consumers enjoy greater control over where
and how they interact with a business or a brand through a mix
of online channels and media.
• To successfully compete in this online environment, managers
need to understand and respond to changing consumer
expectations and behavior as well as the evolving needs of
business customers and emerging supply chain systems that were
not in existence just a few years ago.
• A key to success in today’s competitive environment is having a
clear understanding of the business model your company is
following and making sure that managers from various functional
areas—marketing, IT, operations, logistics, and accounting, all
operate in a manner consistent with that model.

12. E-BUSINESSAND E-COMMERCE FUNDAMENTALS
12
• An e-business process involves the use of electronic or digital
technologies, often based on the Internet or World Wide
Web, to accomplish some business task.
• For example, a company that advertises job openings on its
web site is using an e-business process for the purpose of
recruiting new employees.
• An e-business is a company where a significant or substantial
part of its business is based on the utilization of e-business
processes. Obviously companies vary in their use of e-
business processes. Some companies are more or less
traditional businesses that use a small number of e-business
processes, while at the other extreme, pure play e-businesses
operate almost completely online.
• E-commerce refers to the use of e-business process for the
specific purpose of buying or selling goods and services. In
other words, e-commerce is a form of e-business.
E-Business
E-Commerce

13. E-BUSINESSAPPLICATIONS
13
Internal Communications
• Companies discover that various kinds of
communication can be carried out more efficiently
using e-business processes. Internet telephony
(voice communication over the Internet) is
replacing traditional telecommunications.
• Businesses documents are created and shared via
electronic methods such as e-mail and through
cloud-based platforms (e.g., Google Docs and
box.net). Employees, business partners, and
customers are communicating using social
networks, web-based video conferencing (e.g.,
Skype), instant messaging, e-mail and other
Internet (or Intranet) based tools.

14. E-BUSINESSAPPLICATIONS
14
Service
• Self-service features reduce inefficiencies and costs
of providing service to customers, clients, patients,
citizens, and so on.
• For example, the Federal Express web site lets
customers track their shipments, calculate shipping
costs, schedule pickups, and print their own labels.
• Airlines encourage travelers to print board passes
before arriving at the airport.
Community
• Social networks such as Facebook and Twitter
provide e-businesses the ability to build
communities on a scale not previously possible
prior to the emergence of the World Wide Web.

15. E-BUSINESSAPPLICATIONS
15
Collaboration and Training
• Telepresence refers to a set of technologies that
allow people to mimic face-to-face interactions.
• Telepresence minimizes the limitations of having to
be physically present in a single location to
collaborate, or give and receive live online training
or education.
• Video conferencing technologies and even virtual
world platforms are widely used by companies
today to hold meetings and conduct training with
employees who are geographically scattered.

16. E-BUSINESSAPPLICATIONS
16
Research, Information Gathering and Web
Analytics
• Use of the web as an alternative to physical books,
scientific and trade journals, industry newsletters and
other publications represents a significant advantage.
• Many types of marketing research and secondary data
analysis have replaced traditional methods, often
providing firms with higher quality information, faster
results, and lower data acquisition costs.
• Many companies offer cloud-based web site traffic
analysis tools and social media monitoring services so
that businesses can evaluate the quantity and quality of
brand-related discussions occurring on social media
sites.

17. E-BUSINESSAPPLICATIONS
17
Marketing Communications
• Increasingly, e-businesses are finding that several
different web-based options exist for communicating
with potential customers.
• Brands can use online advertising to create awareness,
develop favorable brand attitudes, generate leads,
stimulate sales, and achieve a wide range of other
marketing communications objectives

18. TYPES OF E-BUSINESS MARKETS.
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• In B2B markets, both the sellers and the buyers are business organizations.
Business-to-business (B2B)
• In B2C markets, the sellers are organizations, and the buyers are individual end
users. B2C is sometimes called e-tailing (electronic retailing).
Business-to-consumers (B2C)
• In C2B markets, consumers make known a particular need for a product or service,
and then suppliers compete to provide that product or service at the requested
price.
Consumers-to-business (C2B)
• In these markets, a government agency provides information and services to its
citizens via e-commerce technologies.
Government-to-citizens (G2C) and others
• In B2G markets, businesses sell goods and services to government agencies.
Business-to-government (B2G)
• Any of the above markets can take on an additional characteristic if the buyer and/or
seller is using a mobile, handheld device.
• Transactions and activities are conducted using wireless networks and mobile apps.
Mobile commerce (m-commerce)

19. E-BUSINESS WEB SITE REQUIREMENTSAND
CHALLENGES
19
Availability
• Availability relates to the server-side of e-
business.
• An “always on” facility is needed to
maintain these business critical apps.
• Web sites need to be hosted on servers
(specialized large-capacity hard drives) that
are capable of supporting the volume of
requests for access, or traffic, to the site.
Accuracy and Quick Response
• Not only must web servers be available, the e-commerce
software and databases need to respond quickly.
• Web software must be capable of searching, sorting, comparing
product features; checking availability, balances, and/or
delivery times; check out; processing promotions and
payments; verifying that the credit card number belongs to the
person trying to use it; and confirmation of the purchase in real
time.
• Speed is even more important in time-sensitive, B2B commerce
where errors that delay delivery are intolerable.
• Consumers have come to expect apps and web pages to
function quickly.
• Failure on this issue generally means customers will go to a
competing vendor.

20. E-BUSINESS WEB SITE REQUIREMENTSAND
CHALLENGES
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Security and PCI DSS Compliance
• All of the servers, transmission lines, application software,
databases, and connections must be secured; and
confidential data often must be protected with another
layer of defense, typically encryption.
Building Competitive Advantage
• No competitive innovation remains unique for long.
• Leading companies are always looking for next-generation
capabilities to develop new competitive advantage.
• One approach is to integrate social networks. Companies
can implement their own social networks and associated
services; or leverage Facebook or other existing ones.

21. E-BUSINESS WEB SITE REQUIREMENTSAND
CHALLENGES
21
Integration of e-Commerce Systems with Enterprise
Systems
• Another huge challenge is integrating e-commerce
systems with legacy and other enterprise systems.
• There is growing interest in allowing better integration
across all customer points of interactions.
• This challenge intensifies when companies are merged or
acquired because then multiple web sites that are built
on a variety of technology platforms need to be
integrated.
Web Analytics and Intelligence Software
• Web site activities, such as what was
clicked, how long a visitor viewed a page,
the IP address of the visitor’s computer,
and items put into the shopping cart are
captured and stored in a log file.
• Log data is analyzed to learn how visitors
navigate the site, to assess advertising
campaigns, and other factors of interest.

22. E-BUSINESS MODELS
22An Example of an e-commerce Company

23. REFERENCES
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• Management Information Systems – Managing The Digital Firm, By Kenneth C. Laudon dan Jane
P. Laudon. Fourteen Edition, 2015. Pearson Education Limited.
• Information Technology For Management – Advancing Sustainable, Profitable Business Growth,
By Efraim Turban, Linda Volonino and Gregory Wood, Ninth Edition, Wiley

24. Heru Wijayanto, MM., MBA., M.MT
(heru@sociopreneur.id)
siheyu siheyu
Heru Wijayanto https://www.linkedin.com/in/heruwijayanto/