Pengenalan e Commerce untuk Pemanfaatan
About Myself
Name
Richardus Eko Indrajit
Date of Birth
24 Januari 1969
Zodiak
Aquarius
Home Address
Jalan Bangka VIII A No.4
Kemang, Jakarta 12720
Phone/Fax +62 21 7179-0028
Email and Website
eko@indrajit.org
http://www.indrajit.org
My Education Background
Bachelor of Computer Engineering
Surabaya Institute of Technology, Indonesia
Master of Applied Computer Science
Harvard University, USA
Master of Business Administration
Leicester University, UK
Doctor of Business Administration
University of Manyla, Philippines
Candidate Doctor of Information Technology
University of Indonesia, Indonesia
My Daily Activities
Academe Office
Chairman of Stimik Perbanas
Kuningan, Jakarta Pusat
Consultant Office
CEO Prime Consulting Indonesia
Simprug, Jakarta Selatan
Research Office
Director Renaissance Indonesia
Kebayoran, Jakarta Selatan
Other Offices
G Lemhannas, Merdeka Selatan
G University of Indonesia, Salemba
G Bina Nusantara University, Hang Lekir
G Trisakti University, Slipi
G Atmajaya University, Semanggi
G IPMI-Monash University, Kalibata
Wife
G Elisabeth Dhany Retno Putri [Lisa A. Riyanto]
6.5 month
pregnancy
Agenda for Today
G Introduction
G
G
G
G
Part 1: Principles and New Perspectives of e-Commerce
Part 2: Internet Business Models
Part 3: Opportunities and Threats of e-Commerce
Part 4: World Trend in e-Commerce and ICT Industry
G Closures
G Question and Answers
E
Introduction
E
E
E
E
Part 1: Principles and New Perspectives of e-Commerce
Part 2: Internet Business Models
Part 3: Opportunities and Threats of e-Commerce
Part 4: World Trend in e-Commerce and ICT Industry
E
E
Closures
Question and Answers
Smooth Transformation
Bridging
OLD
ECONOMY
INTERNET
ECONOMY
New Internet Economy
Ideology ? Politics ? Education ?
Culture ?
Social ?
Behavior ?
Religion ?
Business !
National Defense ?
OLD
ECONOMY
INTERNET
ECONOMY
Old Economy + New Technology
“Penghasilan
Sebesar-besarnya
dengan
Pengorbanan
Sekecil-kecilnya””
The Principle of
WEALTH MAXIMIZATION
G It requires strategy because
of the scarce resources
G Resource = consist of atoms
which are limited by time and space
Digitization Phenomena
10010001
atom
bits
real things
abstract things
text image audio voice video
Bits characteristics:
- easy to duplicate
- cheap to produce
- fast to restructure
- good to represent
data information knowledge process
unlimited resources
digital economy
Internet Economy
Digital Economy + Internet Development =
INTERNET
ECONOMY
The Definition
E-CONOMY
The virtual arena in which business actually is conducted, value is
created and exchanged, transactions occur, and one-to-one
relationships mature.
E-BUSINESS
Any internet initiative – tactical or strategic – that transforms
business relationships, whether those relationships be businessto-consumer, business-to-business, intra-business, or even
consumer-to-consumer.
E-COMMERCE
A particular type of e-business initiative that is focused around
individual business transactions that use the net as medium
of exchange, including business-to-business as well as
business-to-consumer
New Economy Characteristics
1
Knowledge
Convergence
7
2
Digitization
Innovation
8
3
Virtualization
Prosumption
9
4
Molecularization
Immediacy
10
5
Integration/Internetworking
Globalization
11
6
Disintermediation
Discordance
12
New Economy Characteristics
THEME
ECONOMY
ORGANISATION
Knowledge
Knowledge becomes an important
element of products
Knowledge work becomes the basis
of value, revenue, and profit
Digitization
Products and services’’ forms are
transformed into ones and zeros
format
Internal communication shifts from
analog to digital
Virtualization
Physical things (institution and
relationship) can become virtual
The business transformation into
virtual corporations type company
Molecularization
Replacement of the mass media into
molecular media
End of command-and-control
hierarchy, shifting to team-based,
molecular structures
Internetworking
Networked economy with deep and
reach interconnections of economic
entities
Integration of modular, independent,
organizational components for
network of services
Disintermediation
Elimination of intermediaries and any
stand between producers and
consumers
Elimination of middle managers,
internal agents, etc. who boost the
communication signals
New Economy Characteristics
THEME
ECONOMY
ORGANISATION
Convergence
Convergence of computing,
communications, and content
Convergence of organizational
structures responsible
Innovation
Innovation becomes the key driver of
business success
The only sustainable advantage is
organizational learning
Prosumption
Gap between consumers and
producers blurs in a number of ways
Consumers of information and
technology become producers
Immediacy
It is a real-time economy that occurs
at the speed of light
Required a new real-time enterprise
that can adjust to changing business
conditions
Globalization
Knowledge knows no boundaries,
there is only a world of economy
The new enterprise enables time and
space independence
Discordance
Massive social contradictions are
arising
Profound organizational
contradictions are arising
The World of eCommerce
Internet/Intranet/Extranet
DISTRIBUTORS
CUSTOMERS
Manufacturing
and Production
Finance and
Management
R&D and
Engineering
Inward Focused
Core Business
Process and
Applications
Procurement
Distribution
Supply Chain
Logistics
SUPPLIERS
Marketing
Advertising
Sales
Customer Care
PARTNERS
18 Imperatives of eCommerce
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Power Shift to Customer
Global Sales Channel
Reduced Costs of Buying and Selling
Converging Touch Points
Always Open for Business
Reduced Time-to-Market
Enriched Buying Experience
Customization
Self-Service
Reduced Barriers of Market Entry
Demographics of the Internet User
12.
13.
14.
15.
Power Shift to Communities-of-Interest
Cybermediation
Logistics and Physical Distribution
Branding: Loyalty and Acceptance Still
Have to be Earned
16. When Most Markets Behave Like the
Stock Market
17. Auctions Everywhere
18. Hyper-Efficiency
Simple Commerce
Follow-On Sales
Access
Searches
Queries
Surfing
Customers
Online Ads
Standard Orders
Distribution
Online: Soft Goods
Delivery: Hard Goods
Electronic
Customer Support
Online Orders
eMarketplace (Marketspace)
SELLLER
Provide
Info
BUYER
send info
request info
Phone, Fax,, Email
Identify
Need
Corporate Databases
Website
Find
Customer
Find
Source
Newsgroup
Information
Sharing
Net
Communities
Provide
Info
Evaluate
demos,
reviews
Website
credit cards,
digital cash
P.O.s
EDI
Fulfill
Order
deliver soft goods electronically
Website, Phone,
Fax, Email
Support
Emailing Lists
Purchase
Use,
Maintain
Ordering
Payment
Fulfillment
Service &
Support
ePayment System
MERCHANT/
COMMERCE SERVER
CONSUMER
E Browser
E Credit card info
E Checking account info
E Digital cash
E Receipt management
E Security
GATEWAY
E Transaction management
E Protocol conversion
E Security
over SSL or private
E Chargeback/return
network
management
E Stand-in authorization/
E Capture/settlement
management
E Security
E Financial host interface
ACQUIRING
BANK
authorization/
settlement
BANKING
NETWORKS
OTHER
BUSINESS
PROCESSES
Monthly statement,
other communication
between bank and customer
E Inventory
E Accounting
E Fulfillment
E Marketing
authorization/
settlement
ISSUING
BANK
The Security
Recipient’s
Public Key
Encrypted Message
(cipher text)
encrypt
Original Message
(plain text)
THE INTERNET
Recipient’s
Private Key
decrypt
Encrypted Message
(cipher text)
Original Message
(plain text)
Main Philosophy
E-commerce
selling products
and services in
the internet
E-Commerce
E-Commerce
follows / mimics
how business
is performed
transforms
the way business
is performed
Follower
New Rules of the Game
Cross Industrial Border
Unrelated
Industry
New Types of
Delivery Channels
Corporate
Related
Industry
Customers
New Types of
Payment Alternatives
Try to offer in a
cheaper-better-faster way
Competitors
Similar
Firms
New Chain Paradigm
E Business on the 80s-90s
PHYSICAL WORLD of value chain
+
E Business after the year of 2000
VIRTUAL WORLD of value chain
Key of Success
1.
2.
3.
4.
Flow of Physical/Digital Products
Flow of Money/Financial Data
Flow of Documents/Information
Flow of Services and Other Resources
Physical Value Chain
INBOUND
LOGISTICS
OUTBOUND
LOGISTICS
OPERATIONS
MARKETING
AND SALES
PROCUREMENT
TECHNOLOGY DEVELOPMENT
HUMAN RESOURCE MANAGEMENT
FIRM INFRASTRUCTURE
INBOUND
OUTBOUND
MARKETING
OPERATIONS
SERVICE
LOGISTICS
LOGISTICS
AND SALES
INBOUND
OUTBOUND
MARKETING
OPERATIONS
SERVICE
LOGISTICS
LOGISTICS
AND SALES
INBOUND
OUTBOUND
MARKETING
OPERATIONS
SERVICE
PROCUREMENTLOGISTICS
LOGISTICS
AND SALES
PROCUREMENT
TECHNOLOGY DEVELOPMENT
PROCUREMENT
TECHNOLOGY DEVELOPMENT
HUMAN RESOURCE MANAGEMENT
TECHNOLOGY DEVELOPMENT
HUMAN RESOURCE MANAGEMENT
FIRM INFRASTRUCTURE
HUMAN RESOURCE MANAGEMENT
FIRM INFRASTRUCTURE
FIRM INFRASTRUCTURE
G Industry Based Value Chain
G Best Practice Oriented
G Software/Application Minded
G Physical Flow of Goods
SERVICE
Digital Value Chain
Gather
Organize
Select
Synthesize
Distribute
Business Model:
G Info Based Process
G Flow of Bits
G Bit Restructuring
G Digital Asset
The Value Matrix
Opportunity in the Internet Economy
Indrajit Model
Business
P1IB
P1OB P IB
2
P2OR P IB
3
P3OB P IB
4
P5OB
P1
P2
P3
P4
P5
Purchasing
and Inbound
Logistic
Production
and
Operation
Outbound
Logistic and
Distribution
Sales
and
Marketing
Customer
Supports and
Services
P1 V1
P2 V1
P3 V1
P4 V1
PiV1OB
Gather
Gather
Gather
Gather
PiV2OB
Organize
P1 V2
P1 V3
P2 V2
P3 V2
Organize
Organize
P2 V3
P3 V3
Select
Select
PiV3OB
Select
P1 V4
P2 V4
PiV4OB
Synthesize
Synthesize
P1 V5
P2 V5
Distribute
Distribute
PiV5OB
P4OB P IB
5
P1IC
P2IC
P1OC
P5 V1
Gather
P4 V2
P5 V2
Organize
Organize
P4 V3
P5 V3
Select
Select
P3 V4
Synthesize
P4 V4
P5 V4
Synthesize
Synthesize
P3 V5
P4 V4
P5 V5
Distribute
Distribute
Distribute
P3IC
P2OC
P4IC
P3OC
Po5C
P4IC
P4OC
PiV1OC
PiV2OC
PiV3OC
PiV4OC
PiV5OC
Consumers
Internetworking
Enterprise A
Enterprise B
Enterprise C
Enterprise D
Customers
Customers
P1
Books
Publisher
P2
P3
Inventory
Distribution
P4
P5
Physical
Bookstore
Courier
Services
P1 V1
P2 V1
P3 V1
P4 V1
Gather
Gather
Gather
Gather
P1 V2
Organize
P1 V3
Select
P2 V2
P3 V2
Organize
Organize
P2 V3
P3 V3
Select
Select
P1 V4
P2 V4
Synthesize
Synthesize
P1 V5
P2 V5
Distribute
Distribute
P3 V4
P5 V1
Gather
P4 V2
P5 V2
Organize
Organize
P4 V3
P5 V3
Select
Select
Synthesize
P4 V4
P5 V4
Synthesize
Synthesize
P3 V5
P4 V4
P5 V5
Distribute
Distribute
Distribute
CUSTOMERS
CUSTOMERS
PAR T N E R S
Amazon.com
P1
Subjects &
Contents
P5
P2
P3
P4
Online
Training
Formal
Exam
Retake
Exam
Certificate
Deliverable
P5 V1
P1 V1
P2 V1
P3 V1
P4 V1
Gather
Gather
Gather
Gather
P1 V2
P2 V2
P3 V2
Organize
Organize
Organize
P4 V2
Organize
P1 V3
P2 V3
P3 V3
Select
Select
Select
P4 V3
Select
P1 V4
P2 V4
P3 V4
Synthesize
Synthesize
Synthesize
P4 V4
Synthesize
P1 V5
P2 V5
P3 V5
P4 V4
Distribute
Distribute
Gather
P5 V2
Organize
P5 V3
Select
P5 V4
Synthesize
P5 V5
Distribute
Distribute
CUSTOMERS
Distribute
CUSTOMERS
PAR T N E R S
CUSTOMERS
Brainbench.com
P1
P3
P2
P4
Software
Demo
Purchasing
Gather
Freeware &
Shareware
Warehouse
Components
Download
P1 V1
P2 V1
P3 V1
Gather
Gather
Gather
P1 V2
P2 V2
P3 V2
Organize
Organize
Organize
P1 V3
P2 V3
P3 V3
Select
Select
Select
P1 V4
P2 V4
P3 V4
Synthesize
Synthesize
Synthesize
P1 V5
P2 V5
P3 V5
Distribute
Distribute
P5
Full
Download
P4 V1
P5 V1
Gather
P4 V2
Organize
P5 V2
Organize
P4 V3
Select
P5 V3
Select
P4 V4
Synthesize
P5 V4
Synthesize
P4 V4
Distribute
Distribute
CUSTOMERS
P5 V5
Distribute
CUSTOMERS
PAR T N E R S
Download.com
P1
P2
P3
List of
Used
Goods
Auction
Registration
Auction
Session
& Winner
P1 V1
P2 V1
P3 V1
Gather
Gather
Gather
P1 V2
P2 V2
P3 V2
Organize
Organize
Organize
P1 V3
P2 V3
P3 V3
Select
Select
Select
P1 V4
P2 V4
P3 V4
Synthesize
Synthesize
Synthesize
P1 V5
P2 V5
P3 V5
Distribute
Distribute
P4
P5
Payment
& Settlement
Goods
Deliverable
P4 V1
Gather
P5 V1
Gather
P4 V2
P5 V2
Organize
Organize
P4 V3
P5 V3
Select
Select
P4 V4
P5 V4
Synthesize
Synthesize
P4 V4
P5 V5
Distribute
Distribute
Distribute
CUSTOMERS
CUSTOMERS
CUSTOMERS
Ebay.com
New Type of Company
KNOWLEDGE COMPANY
Demand-Chain
Components
Application
Enablers
Technology
Vehicles
Supply-Chain
Components
G Market Strategy
G Product Design
G Marketing
G E-Catalogues
G ERP
G Email
G E-Collaboration
G Customer Management
G Value Network Management
G E-Forms
G E-Bulleting Boards
G WWW
G Chat Rooms
G EDI
G Financial EDI
G Electronic Funds
G Value-Added Networks
G Internet
G Extranet
G Web TV
G Wide Area Networks
G E-Marketplaces
G Intranet
G Private Network
G Procure
G Inbound Logistics
G Manufacturing
G Transportation
G Distribute
G Delivery
G Customer
PHYSICAL COMPANY
E
Introduction
E
E
E
E
Part 1: Principles and New Perspectives of e-Commerce
Part 2: Internet Business Models
Part 3: Opportunities and Threats of e-Commerce
Part 4: World Trend in e-Commerce and ICT Industry
E
E
Closures
Question and Answers
Corporate Evolution
Evolution of
Internet Usage
Real-Time
Organization
Communities
Of Interests
Transaction
Enabler
Customer
Interaction
Brochureware
Time
Complexity
Business Evolution
Value Trust
Networks
Knowledge
Networks
Value-Added
Services
Commodity
Exchanges
Value Proposition
Strategic Revolution
Convergence
Industry
Transformation
Business
Value
Value-Chain
Integration
Channel
Enhancement
Strategic/
Organizational
Change
Leverage of e-Business
Types of eCommerce
SELF
ORGANIZING
Control
HIERARCHICAL
LOW
Value Integration
HIGH
Open Market
Seller
Buyer
Seller
Buyer
Seller
Buyer
Aggregation
Seller
Buyer
Seller
Aggregator
Buyer
Seller
Buyer
Value Chain
Seller
Seller
Seller
Seller
Buyer
Integrator
Buyer
Seller
Seller
Buyer
Alliance
Seller
Buyer
Seller
Value Space
Buyer
Seller
Buyer
Economics of Information
BACKWARD INTEGRATION
INTERNAL INTEGRATION
BACK
OFFICE
VALUE
CHAIN
Suppliers
and
Business
Partners
FRONT
OFFICE
VALUE
CHAIN
FORWARD INTEGRATION
Retail
And
Corporate
Customers
Company Resources
1.
2.
3.
4.
5.
Flow of
Flow of
Flow of
Flow of
Flow of
Products
Services
Money
Documents
Information
Reach
Connectivity
versus
Richness
Bandwidth
Customization
Interactivity
Four Types of eCompany
1 Corporate Enhancement
Old Company plus Internet
2 DotCom
Start from Scratch in Internet
3 Extended Supply Chain
Upstream Connection through Internet (Suppliers)
4 Customer Relation
Downstream Connection through Internet (Customers)
Corporate Enhancement
Business Partners
Suppliers, Distributors, Resellers
Supply Chain Management
Enterprise Resource Planning
Customer Relationship Management
Marketing – Sales – Customer Service
Selling Chain Management
Customers, Resellers
Administrative Control
HRMS – ORMS - Purchasing
Stakeholders
Enterprise
Application
Integration
Management Control
Knowledge
Tone
Applications
Finance – Accounting - Auditing
Employees
Logistics – Production - Distribution
Dot Com
End
Consumers
Who is buying ?
What is being
offered ?
What is being
ordered ?
How is the order
being fulfilled ?
Who is supplying
the product ?
Consumer
Management
Catalogue
Management
Order
Management
Delivery
Management
Inventory
Management
Registration
Product
Description
Order
Accounting
& Settlement
Source Product
and Delivery
Services
Availability to
Promise
Credit
Processing
Samples
Web-Enabled
Call Center
Track and
Trace
Pick, Pack,
and Ship
Consumer
Fulfillment
History
Availability
Payment
Processing
Merge in Transit
and Installation
Services
Warehousing
Account
Maintenance
Prices
Sales
Reporting
Delivery
Product
Replenishment
Producers
Suppliers
Business Operations Management
Information flow
Money flow
Physical flow
Extended Supply Chain
Value Added
Suppliers
3rd Party
Logistics
Installers
e-Supply Chain Management
3rd Party
Service
Commodity
Suppliers
Engineering
Contractor
Contract
Manufacturing
Collaborative Planning
G On-line collaborative planning and forecasting
G Supply chain available-to-promise
G Inventory and order visibility
G Dynamic scheduling and reprioritization
G Real-time decisions based on demand, capacity, costs, and
responsiveness
G Real-time demand profiles
Web Fulfillment
G Real-time capture of customer orders into manufacturing systems
G On-line training and information
G Real-time product information / engineering changes
e-Supply Chain Management
G Utilize information as a substitute for inventory
G Compete on supply chain agility and speed
G View partner collaboration as a strategic asset
Customer Relation
Indirect Channels
Partners
Existing
Customers
Joint Offering
Partners
New Customers
e-Customer Relationship Management
Real-Time Ordering
G Customer-specific pricing and products
G Accurate order status 24 x 7
G Real-time available-to-promise
Opportunity Management
G Competitive intelligence capability
G Tracking of channel partner performance
G Customer and channel partner incentive programs
Value Added Services via the Web
G Training
G Customer-specific functionality and branding
G Demand full from customers’ service provisioning
G Cycle time monitoring from lead to installation
Customer and Partner Self-Service
G Interactive customer assistance
G Personalized extranets
e-Customer Relationship Management
G Anticipate customer needs
G View customer information as a strategic asset
G Treat each customer as unique
G Provide single face to customer
G Mine customer information for sales purposes
G Provide integrated multi-channel customer service
New Markets
Portal Business
Fragmented Industries
Consolidated Industries
Sell-Side
Sites
1:M
Distribution
Portal
m:M
Single supplier
Limited products
Fixed pricing
Inventory risk
Long-term scale
Few suppliers
Aggregate catalogs
Streamline selling
Larger audience
Vertical
Exchanges
M:M
Procurement
Portals
M:m
Buy-Side
Sites
M:1
Many buyers
Industry giants
Attract many suppliers
Many sellers
Auto, computers
Bid on major buyers
Dynamic pricing
Combine purchasing
Business
Most liquid
Force suppliers to join
Efficient marketplaces
One-to-Many Model Many-to-Many Model Many-to-Many Model Many-to-Many Model Many-to-One Model
Customer Relation Management
Supply Chain Management
Marketplace Platform Providers
Strategic Alliances
Strategic Service Partners
Manufacturing
Third-Party
Logistics
Distribution
Warehousing
Commodity
Suppliers (CS)
Secure High-Speed Backbone
Value-Added
Suppliers (VAS)
Network
Operations
Partner (NOP)
Strategic Core Competencies
Application
Service
Provider (ASP)
Nonstrategic Service Partners
Finance
Human
Resource
Indirect
Processes
Travel
E
Introduction
E
E
E
E
Part 1: Principles and New Perspectives of e-Commerce
Part 2: Internet Business Models
Part 3: Opportunities and Threats of e-Commerce
Part 4: World Trend in e-Commerce and ICT Industry
E
E
Closures
Question and Answers
Indrajit Matrix
Know the
Paradigm
Impact on
Existing
Business
Reactive
Action
Highly Possible
Output
Yes
Yes
Yes
Survive
Yes
Yes
No
Business Threat
Yes
No
Yes
Opportunities Taken
Yes
No
No
Adding Knowledge
No
Yes
Yes
Boomerang
No
Yes
No
Dangerous
No
No
Yes
Gambling Adventure
No
No
No
Nice Watcher
Virtual vs Physical Community
Population
Internet Users
Internet
Business
C2C
B2B
1
2
3
B2C
The Winners
1. New Business (products/services)
2. New Market (customers)
3. New Revenue (business model)
4. New Company (business transformation)
5. New Image (business community)
6. New Wealth (paradigm shift)
Etc.
Key Points:
From “nothing” to “existing”
A
A
From “existing” to “creating”
A
From “creating” to “improving”
A
From “improving” to “growing”
A
From “growing” to “performing”
The Losers
1. Loss market share (products and services)
2. Loss revenue (customers)
3. Loss competitive advantage (business model)
4. Loss trust (business community)
5. Loss resources (competition)
6. Loss opportunity (cost)
Etc.
Key Points:
From “performing” to “stopping”
A
A
From “stopping” to “decreasing”
A
From “decreasing” to “surviving”
A
From “surviving” to “eliminating”
The Survival
AA: Traditional “invest
for future” goingconcern success
AB: Dark Model
Profitless growth, war
of corporate attrition
AC: Black Hole
Massive company
generates negative
cash flow, never recovers
Formula 40/40
First 40%
Critical Market Penetration
as Online Sector for That Service
Has or Will Achieve Around 40%
Penetration of Overall Demand from
All Channels and Sources.
16%
40%
24%
Second 40%
Key Consideration is the Percentage
of the Online Share Commanded by
That Specific Company. Target: 40%.
60%
Total Demand, All Channels
New Dot Com Paradigm
CHARACTERISTICS
NET-PHASE 1
NET-PHASE 2
Ideal company
Thin float IPO, all-new online
standalone start up
Second generation bricks ‘n clicks
hybrid with compelling market
proposition
Foundation investor/shareholders
Individual online investor, buying
anything in current Cant Miss
sector on dips
Institution, adapting value
investment principles to volatile
internet
Key player
Startup originators, early stage
angles, VC, top IPO investment
bankers
Killer model developers, secondary
(mainstream) financiers
Primary management focus
Positioning: Being in the right
sector
Viable business plan that ensures
survival today, segment leadership
tomorrow
Presence
Participation
Domination (40/40)
Market share capture approach
Bottom up
Top down
New Dot Com Paradigm
CHARACTERISTICS
NET-PHASE 1
NET-PHASE 2
Positive cash flow in the future
Communicated via “perceptions
management”
Through specific forecasts and
commitments
Net-Brand development
Reliance on high risk, low-yield,
high-cost traditional media
Extending the few highly
successful key net nameplates and
bricks ‘n clicks hybrid nameplates
leveraging on traditional market
presence
Mergers and acquisitions emphasis Cross-Dot-Com commercial
contracts with spin as special
alliances
Industry group strategic alliance
announcement: overpromise
Market share capture strategy
Top down
Bottom up
Common Mistakes
1. “Field of Dreams” Syndrome
2. Inadequate architecture
3. Putting lipstick on a bulldog
4. Islands of webification
5. “Me too” strategies
6. One-time-effort mentality
7. Thinking too small
Cost Transparency
E Avoid from having a high profit margin
E Change the product into commodity
E Weaken customer loyalty to brand
E Decrease Company reputation due to Unfair pricing
eEntrepreneurship
1. Understand the principles of
new economy
2. Have a good vision
3. Excellence in working
stamina
4. Able to cope with change
5. Can manage people
6. Collaborate to compete
7. Combine professional with
entrepreneur
Steps for Success
1
2
3
4
Test
the
Idea
Determine Develop
Resource
Business Business
Gathering
Objective Model
5
6
Setting
the
Stage
Start
the
Business
Required Skills and Competencies
G
G
G
G
G
G
G
G
eCommerce Program Managers
Enterprise architects
Business and Information architects
Infrastructure architects
Application architects
Solution developers
Component developers
Human factors engineers
What Is an ISP?
ISP - Internet Service Provider
E Types of ISPs
– Corporate ISPs - target enterprises
– Residential ISPs - offer services to the consumer market
E Services
– Basic Internet access services through analog dial-up, ISDN,
xDSL, leased-lines or Frame Relay
– e-mail services
– Web hosting (including creation and maintenance services)
– Application hosting (ASP) - corporate applications
(Baan,SAP), e-commerce applications (such as transaction
processing)
The IIX Connections
ISPs in Indonesia
The ISP’s Future
ISPs
(Internet Service Providers)
ISPs
(Integrated Service Providers)
Demand Side of Technology
CUSTOMER LAYER
PERSONAL COMPUTER
AT WORK
Chatting
IP LAYER
Online Support
Retailer Transaction
PRODUCTS
AND SERVICES
Browser/User Interface
Search Engine
Electronic Publishing
Connectivity
Messaging & Mail
Content Aggregation
Collaboration
Document Management
KIOSK
FAX
TE L E P H O N E
TELEVISION
IN PUBLIC
CONSUMERS
Calling/Conferencing
AT HOME
INTEGRATION MANAGEMENT LAYER
INTELLIGENT MONITOR
IN VEHICLE
FAMILIES
COMMUNITIES
INSTITUTIONS
APPLIANCES LAYER
PERSONAL DIGITAL ASSISTANT
BUSINESS
LOCATION LAYER
SOLUTIONS
CONSULTING
SERVICES
Training
Legacy Integration
Service Customization
Transaction Processing Commerce Fulfillment Webcasting
Collaboration Too
va Plugins Inventory Management Document Archive MM Archive
Audio/Video Streams URL Controls Call Centre Services MM Players Workflow Tools
New Feeds Authentication Encryption IP Voice Realtime Audio/Video Page Generation
Connectivity
PHASE ONE
Browser
Directory
Firewall & Installation
Basic Web Hosting, Cache, Staging
Remote Firewall Management
Site Security & Maintenance
Customer Service
Sprint Link IP Backbone
T1
Frame
Usenet
Search Engnie
DNS Services
FTP
Email
Database Service Storage Management / Capacity Planning
Account Administration
Billing
Sprint Private Intranet Backbone
ATM
DSLs
ISDN
Reporting
Dial Up Access
Clearline
GATEWAY SERVICES
Enhanced Directory Publishing Fax InfoXchange Paging Chat BBS/Forums Agents
Dedicated Access
Wireless
APPLICATION INTEGRATION SERVICES
System Integration
Consulting
MANAGED NETWORK SERVICES
Real-Time
Communication
PHASE TWO
Custom Programming
DESIGN
SERVICES
Context
Mass Market
Content
Aggregation
Consumer Verticals
Content
Provider
SOHO Verticals
Public Sector Verticals
Affinity Groups
Business Verticals
Community
PHASE THREE
Supply Side of Technology
Indrajit e-Technology Cube
Speed
COMMUNICATION
APPLIANCES LAYER
Personal Computer, Kiosk,
Fax, Telephone, Television,
Intelligent Monitor, PDA
Transaction Processing
E-Commerce Based Apps.
Multimedia Features
Workflow Tools
Call Center Services
Solutions Consulting Services
INTEGRATION
MANAGEMENT LAYER
Calling, Conferencing, Chatting,
Messaging, Online Support,
Retailer Transaction, Email
INTERNET PROTOCOL
LAYER
Devices Layers
CONNECTIVITY
Telecom. Infrastructure
Internet Infrastructure
Managed Network Services
Application Integration Services
Community Layers
E-Technology Infrastructure
BROCHURWARE
At Work, In Public,
In Vehicle, At Home
COMMUNITIES OF INTERESTS
Content Providers
Business Verticals
Affinity Groups
SOHO Verticals
Consumer Verticals
Mass Market
TRANSACTION ENABLER
LOCATION LAYER
COMMUNITY
CUSTOMER INTEERACTION
Business, Consumers,
Families, Communities,
Institutions
Reliability
REAL-TIME ORGANIZATION
CUSTOMER LAYER
Scalability
E-Technology Development Stage
Cost
Security
EDL Layers
Speed
COMMUNICATION
APPLIANCES LAYER
Personal Computer, Kiosk,
Fax, Telephone, Television,
Intelligent Monitor, PDA
Transaction Processing
E-Commerce Based Apps.
Multimedia Features
Workflow Tools
Call Center Services
Solutions Consulting Services
INTEGRATION
MANAGEMENT LAYER
Calling, Conferencing, Chatting,
Messaging, Online Support,
Retailer Transaction, Email
INTERNET PROTOCOL
LAYER
Devices Layers
BROCHURWARE
At Work, In Public,
In Vehicle, At Home
CONNECTIVITY
Telecom. Infrastructure
Internet Infrastructure
Managed Network Services
Application Integration Services
Community Layers
E-Technology Infrastructure
Trend Highlights:
G Multimedia features (50%)
G Entertainment Purposes (62%)
G Pervasive computing devices
COMMUNITIES OF INTERESTS
Content Providers
Business Verticals
Affinity Groups
SOHO Verticals
Consumer Verticals
Mass Market
TRANSACTION ENABLER
LOCATION LAYER
COMMUNITY
CUSTOMER INTEERACTION
Business, Consumers,
Families, Communities,
Institutions
Reliability
REAL-TIME ORGANIZATION
CUSTOMER LAYER
Scalability
E-Technology Development Stage
Cost
Security
G
G
PC penetration (0.8%), phone line
penetration (3.67%), and internet
penetration (0.15%) in Indonesia is
the lowest in the South East Asia
region [WDR Research]
Facts from the research:
G 21% of the respondents have
subscribed internet at home (in
ten big cities)
G Prefer to access internet from
office or warnet (83%) due to
cost structure (the growth of
internet users > internet
subscribers)
G Use the internet for basic
communication such as email
(79%) and surfing (52%)
EDS Layers
Speed
COMMUNICATION
APPLIANCES LAYER
Personal Computer, Kiosk,
Fax, Telephone, Television,
Intelligent Monitor, PDA
Transaction Processing
E-Commerce Based Apps.
Multimedia Features
Workflow Tools
Call Center Services
Solutions Consulting Services
INTEGRATION
MANAGEMENT LAYER
Calling, Conferencing, Chatting,
Messaging, Online Support,
Retailer Transaction, Email
INTERNET PROTOCOL
LAYER
Devices Layers
BROCHURWARE
At Work, In Public,
In Vehicle, At Home
COMMUNITIES OF INTERESTS
Content Providers
Business Verticals
Affinity Groups
SOHO Verticals
Consumer Verticals
Mass Market
TRANSACTION ENABLER
LOCATION LAYER
COMMUNITY
CUSTOMER INTEERACTION
Business, Consumers,
Families, Communities,
Institutions
Reliability
REAL-TIME ORGANIZATION
CUSTOMER LAYER
Scalability
CONNECTIVITY
Telecom. Infrastructure
Internet Infrastructure
Managed Network Services
Application Integration Services
Community Layers
E-Technology Infrastructure
Highlights:
G Scalability is the key
G Free competition, no exclusive rights
G Wireless technology
E-Technology Development Stage
Cost
Security
G
G
G
G
G
Telkom and Indosat are the main
players in connectivity industry
There are approximately 35 active
ISPs
More convergent products and
services
Fast growing internet community
Facts from the research:
G Criteria in choosing the
internet connectivity and
communication provided by
ISPs: number of internet
subscribers, features, access
speed, and reliability
Cost
Speed
COMMUNICATION
APPLIANCES LAYER
Personal Computer, Kiosk,
Fax, Telephone, Television,
Intelligent Monitor, PDA
Transaction Processing
E-Commerce Based Apps.
Multimedia Features
Workflow Tools
Call Center Services
Solutions Consulting Services
INTEGRATION
MANAGEMENT LAYER
Calling, Conferencing, Chatting,
Messaging, Online Support,
Retailer Transaction, Email
INTERNET PROTOCOL
LAYER
Devices Layers
BROCHURWARE
At Work, In Public,
In Vehicle, At Home
COMMUNITIES OF INTERESTS
Content Providers
Business Verticals
Affinity Groups
SOHO Verticals
Consumer Verticals
Mass Market
TRANSACTION ENABLER
LOCATION LAYER
COMMUNITY
CUSTOMER INTEERACTION
Business, Consumers,
Families, Communities,
Institutions
Reliability
REAL-TIME ORGANIZATION
CUSTOMER LAYER
Scalability
E-Technology Development Stage
Cost
Security
CONNECTIVITY
Telecom. Infrastructure
Internet Infrastructure
Managed Network Services
Application Integration Services
Community Layers
E-Technology Infrastructure
Highlights:
G Telephone pulse/internet is public good
G Alternative technology that is cheaper
G Value added products and services
G
Facts from the research:
G The cost of linking to the
internet is expensive:
G PC
G Telephone
G Electricity
G ISP
G More people will subscribe
internet as long as the cost is
not expensive (79%)
G Flat rate for internet
connection is required
Speed
Speed
COMMUNICATION
APPLIANCES LAYER
Personal Computer, Kiosk,
Fax, Telephone, Television,
Intelligent Monitor, PDA
Transaction Processing
E-Commerce Based Apps.
Multimedia Features
Workflow Tools
Call Center Services
Solutions Consulting Services
INTEGRATION
MANAGEMENT LAYER
Calling, Conferencing, Chatting,
Messaging, Online Support,
Retailer Transaction, Email
INTERNET PROTOCOL
LAYER
Devices Layers
BROCHURWARE
At Work, In Public,
In Vehicle, At Home
CONNECTIVITY
Telecom. Infrastructure
Internet Infrastructure
Managed Network Services
Application Integration Services
Community Layers
E-Technology Infrastructure
Highlights:
G Broadband technology
G Enabling software/applications
COMMUNITIES OF INTERESTS
Content Providers
Business Verticals
Affinity Groups
SOHO Verticals
Consumer Verticals
Mass Market
TRANSACTION ENABLER
LOCATION LAYER
COMMUNITY
CUSTOMER INTEERACTION
Business, Consumers,
Families, Communities,
Institutions
Reliability
REAL-TIME ORGANIZATION
CUSTOMER LAYER
Scalability
E-Technology Development Stage
Cost
Security
G
Facts from the research:
G For basic internet features
(email, chatting, and surfing),
the access is low but
acceptable (37%)
G Become serious problem for
multimedia features:
G Picture
G Video
G Audio
Reliability
Speed
COMMUNICATION
APPLIANCES LAYER
Personal Computer, Kiosk,
Fax, Telephone, Television,
Intelligent Monitor, PDA
Transaction Processing
E-Commerce Based Apps.
Multimedia Features
Workflow Tools
Call Center Services
Solutions Consulting Services
INTEGRATION
MANAGEMENT LAYER
Calling, Conferencing, Chatting,
Messaging, Online Support,
Retailer Transaction, Email
INTERNET PROTOCOL
LAYER
Devices Layers
BROCHURWARE
At Work, In Public,
In Vehicle, At Home
COMMUNITIES OF INTERESTS
Content Providers
Business Verticals
Affinity Groups
SOHO Verticals
Consumer Verticals
Mass Market
TRANSACTION ENABLER
LOCATION LAYER
COMMUNITY
CUSTOMER INTEERACTION
Business, Consumers,
Families, Communities,
Institutions
Reliability
REAL-TIME ORGANIZATION
CUSTOMER LAYER
Scalability
CONNECTIVITY
Telecom. Infrastructure
Internet Infrastructure
Managed Network Services
Application Integration Services
Community Layers
E-Technology Infrastructure
Highlights:
G Service level agreement and penalty
G Transmission media alternative
G Short network to internet backbone
E-Technology Development Stage
Cost
Security
G
Facts from the research:
G 74% of the respondents have
ever faced problems while
accessing internet
G 65% is uneasy to access
internet
G 71% experiences “hang””
and “disconnected””
G Average of 72% has a
frequency of once/twice within
4 times access found the
problems:
G Not easy to access
G Browsing too long
G Often disconnected
G Offen “hang””
Security
Speed
COMMUNICATION
APPLIANCES LAYER
Personal Computer, Kiosk,
Fax, Telephone, Television,
Intelligent Monitor, PDA
Transaction Processing
E-Commerce Based Apps.
Multimedia Features
Workflow Tools
Call Center Services
Solutions Consulting Services
INTEGRATION
MANAGEMENT LAYER
Calling, Conferencing, Chatting,
Messaging, Online Support,
Retailer Transaction, Email
INTERNET PROTOCOL
LAYER
Devices Layers
BROCHURWARE
At Work, In Public,
In Vehicle, At Home
CONNECTIVITY
Telecom. Infrastructure
Internet Infrastructure
Managed Network Services
Application Integration Services
Community Layers
E-Technology Infrastructure
Highlights:
G Hard and soft security aspects
G Guarantee from third party
G Protected by law (legal entity)
COMMUNITIES OF INTERESTS
Content Providers
Business Verticals
Affinity Groups
SOHO Verticals
Consumer Verticals
Mass Market
TRANSACTION ENABLER
LOCATION LAYER
COMMUNITY
CUSTOMER INTEERACTION
Business, Consumers,
Families, Communities,
Institutions
Reliability
REAL-TIME ORGANIZATION
CUSTOMER LAYER
Scalability
E-Technology Development Stage
Cost
Security
G
Facts from the research:
G 88.4% knows about purchasing
online through internet
G But 83.7% has not yet using
internet for purchasing
transaction:
G No guaranteed payment
security system
G Afraid of mis-operating the
transaction procedure
G Example: Not all
companies have been
using internet banking yet
Scalability
Speed
COMMUNICATION
APPLIANCES LAYER
Personal Computer, Kiosk,
Fax, Telephone, Television,
Intelligent Monitor, PDA
Transaction Processing
E-Commerce Based Apps.
Multimedia Features
Workflow Tools
Call Center Services
Solutions Consulting Services
INTEGRATION
MANAGEMENT LAYER
Calling, Conferencing, Chatting,
Messaging, Online Support,
Retailer Transaction, Email
INTERNET PROTOCOL
LAYER
Devices Layers
BROCHURWARE
At Work, In Public,
In Vehicle, At Home
COMMUNITIES OF INTERESTS
Content Providers
Business Verticals
Affinity Groups
SOHO Verticals
Consumer Verticals
Mass Market
TRANSACTION ENABLER
LOCATION LAYER
COMMUNITY
CUSTOMER INTEERACTION
Business, Consumers,
Families, Communities,
Institutions
Reliability
REAL-TIME ORGANIZATION
CUSTOMER LAYER
Scalability
CONNECTIVITY
Telecom. Infrastructure
Internet Infrastructure
Managed Network Services
Application Integration Services
Community Layers
E-Technology Infrastructure
Highlights:
G Service level agreement and penalty
G Appropriate technology is required
E-Technology Development Stage
Cost
Security
G
G
The fast growth of subscribers
should not decrease the
performance (internet access)
Switch of ISPs exists due to the
scalability problem (getting slower
as the subscribers grow)
Development Stage
Speed
COMMUNICATION
APPLIANCES LAYER
Personal Computer, Kiosk,
Fax, Telephone, Television,
Intelligent Monitor, PDA
Transaction Processing
E-Commerce Based Apps.
Multimedia Features
Workflow Tools
Call Center Services
Solutions Consulting Services
INTEGRATION
MANAGEMENT LAYER
Calling, Conferencing, Chatting,
Messaging, Online Support,
Retailer Transaction, Email
INTERNET PROTOCOL
LAYER
Devices Layers
BROCHURWARE
At Work, In Public,
In Vehicle, At Home
COMMUNITIES OF INTERESTS
Content Providers
Business Verticals
Affinity Groups
SOHO Verticals
Consumer Verticals
Mass Market
TRANSACTION ENABLER
LOCATION LAYER
COMMUNITY
CUSTOMER INTEERACTION
Business, Consumers,
Families, Communities,
Institutions
Reliability
REAL-TIME ORGANIZATION
CUSTOMER LAYER
Scalability
E-Technology Development Stage
Cost
Security
CONNECTIVITY
Telecom. Infrastructure
Internet Infrastructure
Managed Network Services
Application Integration Services
Community Layers
E-Technology Infrastructure
Highlights:
G Back-office move to front-office (B2B)
G Free and new business model (B2C)
G
Facts from the research:
G 59% aware of advertisement in
internet (Level 1:
Brochureware)
G 59% using internet for
business and personal
purposes (Level 2: Customer
Interaction)
G 16% using internet for
purchasing transaction (Level
3: Transaction Enabler)
Key Success Factors
E-Organization
E-Capitalization
E-Infrastructure
E-Synchronization
E-Strategy
E-Volution
E-Vision
E
Introduction
E
E
E
E
Part 1: Principles and New Perspectives of e-Commerce
Part 2: Internet Business Models
Part 3: Opportunities and Threats of e-Commerce
Part 4: World Trend in e-Commerce and ICT Industry
E
E
Closures
Question and Answers
Examples of Existing eCommerce
Have you seen the latest technology update ?
IT at a crossroad…
Forecasting is a tricky business…
Where are we?
Where are we going?
1600000
1400000
1200000
1000000
800000
600000
400000
200000
hosts
mobiles?
0
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
How do we get there?
The key indicators…
The challenge…
Digital everywhere…
The history and the future…
Ten emerging technology…
The ongoing research…
Very long-range factors
Next generation of internet
The requirements…
Beyond the earth…
+
+
+
The Mars Network
Interplanetary internet
Future technology enablers
DNA Computing
Fi n a l l y …
Who will ruin the world…
More Explanations
For Linux Starters
Thank You
Richardus Eko Indrajit
eko@indrajit.org
indrajit@post.harvard.edu
http://www.indrajit.org
Q&A
Name
Richardus Eko Indrajit
Date of Birth
24 Januari 1969
Zodiak
Aquarius
Home Address
Jalan Bangka VIII A No.4
Kemang, Jakarta 12720
Phone/Fax +62 21 7179-0028
Email and Website
eko@indrajit.org
http://www.indrajit.org
My Education Background
Bachelor of Computer Engineering
Surabaya Institute of Technology, Indonesia
Master of Applied Computer Science
Harvard University, USA
Master of Business Administration
Leicester University, UK
Doctor of Business Administration
University of Manyla, Philippines
Candidate Doctor of Information Technology
University of Indonesia, Indonesia
My Daily Activities
Academe Office
Chairman of Stimik Perbanas
Kuningan, Jakarta Pusat
Consultant Office
CEO Prime Consulting Indonesia
Simprug, Jakarta Selatan
Research Office
Director Renaissance Indonesia
Kebayoran, Jakarta Selatan
Other Offices
G Lemhannas, Merdeka Selatan
G University of Indonesia, Salemba
G Bina Nusantara University, Hang Lekir
G Trisakti University, Slipi
G Atmajaya University, Semanggi
G IPMI-Monash University, Kalibata
Wife
G Elisabeth Dhany Retno Putri [Lisa A. Riyanto]
6.5 month
pregnancy
Agenda for Today
G Introduction
G
G
G
G
Part 1: Principles and New Perspectives of e-Commerce
Part 2: Internet Business Models
Part 3: Opportunities and Threats of e-Commerce
Part 4: World Trend in e-Commerce and ICT Industry
G Closures
G Question and Answers
E
Introduction
E
E
E
E
Part 1: Principles and New Perspectives of e-Commerce
Part 2: Internet Business Models
Part 3: Opportunities and Threats of e-Commerce
Part 4: World Trend in e-Commerce and ICT Industry
E
E
Closures
Question and Answers
Smooth Transformation
Bridging
OLD
ECONOMY
INTERNET
ECONOMY
New Internet Economy
Ideology ? Politics ? Education ?
Culture ?
Social ?
Behavior ?
Religion ?
Business !
National Defense ?
OLD
ECONOMY
INTERNET
ECONOMY
Old Economy + New Technology
“Penghasilan
Sebesar-besarnya
dengan
Pengorbanan
Sekecil-kecilnya””
The Principle of
WEALTH MAXIMIZATION
G It requires strategy because
of the scarce resources
G Resource = consist of atoms
which are limited by time and space
Digitization Phenomena
10010001
atom
bits
real things
abstract things
text image audio voice video
Bits characteristics:
- easy to duplicate
- cheap to produce
- fast to restructure
- good to represent
data information knowledge process
unlimited resources
digital economy
Internet Economy
Digital Economy + Internet Development =
INTERNET
ECONOMY
The Definition
E-CONOMY
The virtual arena in which business actually is conducted, value is
created and exchanged, transactions occur, and one-to-one
relationships mature.
E-BUSINESS
Any internet initiative – tactical or strategic – that transforms
business relationships, whether those relationships be businessto-consumer, business-to-business, intra-business, or even
consumer-to-consumer.
E-COMMERCE
A particular type of e-business initiative that is focused around
individual business transactions that use the net as medium
of exchange, including business-to-business as well as
business-to-consumer
New Economy Characteristics
1
Knowledge
Convergence
7
2
Digitization
Innovation
8
3
Virtualization
Prosumption
9
4
Molecularization
Immediacy
10
5
Integration/Internetworking
Globalization
11
6
Disintermediation
Discordance
12
New Economy Characteristics
THEME
ECONOMY
ORGANISATION
Knowledge
Knowledge becomes an important
element of products
Knowledge work becomes the basis
of value, revenue, and profit
Digitization
Products and services’’ forms are
transformed into ones and zeros
format
Internal communication shifts from
analog to digital
Virtualization
Physical things (institution and
relationship) can become virtual
The business transformation into
virtual corporations type company
Molecularization
Replacement of the mass media into
molecular media
End of command-and-control
hierarchy, shifting to team-based,
molecular structures
Internetworking
Networked economy with deep and
reach interconnections of economic
entities
Integration of modular, independent,
organizational components for
network of services
Disintermediation
Elimination of intermediaries and any
stand between producers and
consumers
Elimination of middle managers,
internal agents, etc. who boost the
communication signals
New Economy Characteristics
THEME
ECONOMY
ORGANISATION
Convergence
Convergence of computing,
communications, and content
Convergence of organizational
structures responsible
Innovation
Innovation becomes the key driver of
business success
The only sustainable advantage is
organizational learning
Prosumption
Gap between consumers and
producers blurs in a number of ways
Consumers of information and
technology become producers
Immediacy
It is a real-time economy that occurs
at the speed of light
Required a new real-time enterprise
that can adjust to changing business
conditions
Globalization
Knowledge knows no boundaries,
there is only a world of economy
The new enterprise enables time and
space independence
Discordance
Massive social contradictions are
arising
Profound organizational
contradictions are arising
The World of eCommerce
Internet/Intranet/Extranet
DISTRIBUTORS
CUSTOMERS
Manufacturing
and Production
Finance and
Management
R&D and
Engineering
Inward Focused
Core Business
Process and
Applications
Procurement
Distribution
Supply Chain
Logistics
SUPPLIERS
Marketing
Advertising
Sales
Customer Care
PARTNERS
18 Imperatives of eCommerce
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Power Shift to Customer
Global Sales Channel
Reduced Costs of Buying and Selling
Converging Touch Points
Always Open for Business
Reduced Time-to-Market
Enriched Buying Experience
Customization
Self-Service
Reduced Barriers of Market Entry
Demographics of the Internet User
12.
13.
14.
15.
Power Shift to Communities-of-Interest
Cybermediation
Logistics and Physical Distribution
Branding: Loyalty and Acceptance Still
Have to be Earned
16. When Most Markets Behave Like the
Stock Market
17. Auctions Everywhere
18. Hyper-Efficiency
Simple Commerce
Follow-On Sales
Access
Searches
Queries
Surfing
Customers
Online Ads
Standard Orders
Distribution
Online: Soft Goods
Delivery: Hard Goods
Electronic
Customer Support
Online Orders
eMarketplace (Marketspace)
SELLLER
Provide
Info
BUYER
send info
request info
Phone, Fax,, Email
Identify
Need
Corporate Databases
Website
Find
Customer
Find
Source
Newsgroup
Information
Sharing
Net
Communities
Provide
Info
Evaluate
demos,
reviews
Website
credit cards,
digital cash
P.O.s
EDI
Fulfill
Order
deliver soft goods electronically
Website, Phone,
Fax, Email
Support
Emailing Lists
Purchase
Use,
Maintain
Ordering
Payment
Fulfillment
Service &
Support
ePayment System
MERCHANT/
COMMERCE SERVER
CONSUMER
E Browser
E Credit card info
E Checking account info
E Digital cash
E Receipt management
E Security
GATEWAY
E Transaction management
E Protocol conversion
E Security
over SSL or private
E Chargeback/return
network
management
E Stand-in authorization/
E Capture/settlement
management
E Security
E Financial host interface
ACQUIRING
BANK
authorization/
settlement
BANKING
NETWORKS
OTHER
BUSINESS
PROCESSES
Monthly statement,
other communication
between bank and customer
E Inventory
E Accounting
E Fulfillment
E Marketing
authorization/
settlement
ISSUING
BANK
The Security
Recipient’s
Public Key
Encrypted Message
(cipher text)
encrypt
Original Message
(plain text)
THE INTERNET
Recipient’s
Private Key
decrypt
Encrypted Message
(cipher text)
Original Message
(plain text)
Main Philosophy
E-commerce
selling products
and services in
the internet
E-Commerce
E-Commerce
follows / mimics
how business
is performed
transforms
the way business
is performed
Follower
New Rules of the Game
Cross Industrial Border
Unrelated
Industry
New Types of
Delivery Channels
Corporate
Related
Industry
Customers
New Types of
Payment Alternatives
Try to offer in a
cheaper-better-faster way
Competitors
Similar
Firms
New Chain Paradigm
E Business on the 80s-90s
PHYSICAL WORLD of value chain
+
E Business after the year of 2000
VIRTUAL WORLD of value chain
Key of Success
1.
2.
3.
4.
Flow of Physical/Digital Products
Flow of Money/Financial Data
Flow of Documents/Information
Flow of Services and Other Resources
Physical Value Chain
INBOUND
LOGISTICS
OUTBOUND
LOGISTICS
OPERATIONS
MARKETING
AND SALES
PROCUREMENT
TECHNOLOGY DEVELOPMENT
HUMAN RESOURCE MANAGEMENT
FIRM INFRASTRUCTURE
INBOUND
OUTBOUND
MARKETING
OPERATIONS
SERVICE
LOGISTICS
LOGISTICS
AND SALES
INBOUND
OUTBOUND
MARKETING
OPERATIONS
SERVICE
LOGISTICS
LOGISTICS
AND SALES
INBOUND
OUTBOUND
MARKETING
OPERATIONS
SERVICE
PROCUREMENTLOGISTICS
LOGISTICS
AND SALES
PROCUREMENT
TECHNOLOGY DEVELOPMENT
PROCUREMENT
TECHNOLOGY DEVELOPMENT
HUMAN RESOURCE MANAGEMENT
TECHNOLOGY DEVELOPMENT
HUMAN RESOURCE MANAGEMENT
FIRM INFRASTRUCTURE
HUMAN RESOURCE MANAGEMENT
FIRM INFRASTRUCTURE
FIRM INFRASTRUCTURE
G Industry Based Value Chain
G Best Practice Oriented
G Software/Application Minded
G Physical Flow of Goods
SERVICE
Digital Value Chain
Gather
Organize
Select
Synthesize
Distribute
Business Model:
G Info Based Process
G Flow of Bits
G Bit Restructuring
G Digital Asset
The Value Matrix
Opportunity in the Internet Economy
Indrajit Model
Business
P1IB
P1OB P IB
2
P2OR P IB
3
P3OB P IB
4
P5OB
P1
P2
P3
P4
P5
Purchasing
and Inbound
Logistic
Production
and
Operation
Outbound
Logistic and
Distribution
Sales
and
Marketing
Customer
Supports and
Services
P1 V1
P2 V1
P3 V1
P4 V1
PiV1OB
Gather
Gather
Gather
Gather
PiV2OB
Organize
P1 V2
P1 V3
P2 V2
P3 V2
Organize
Organize
P2 V3
P3 V3
Select
Select
PiV3OB
Select
P1 V4
P2 V4
PiV4OB
Synthesize
Synthesize
P1 V5
P2 V5
Distribute
Distribute
PiV5OB
P4OB P IB
5
P1IC
P2IC
P1OC
P5 V1
Gather
P4 V2
P5 V2
Organize
Organize
P4 V3
P5 V3
Select
Select
P3 V4
Synthesize
P4 V4
P5 V4
Synthesize
Synthesize
P3 V5
P4 V4
P5 V5
Distribute
Distribute
Distribute
P3IC
P2OC
P4IC
P3OC
Po5C
P4IC
P4OC
PiV1OC
PiV2OC
PiV3OC
PiV4OC
PiV5OC
Consumers
Internetworking
Enterprise A
Enterprise B
Enterprise C
Enterprise D
Customers
Customers
P1
Books
Publisher
P2
P3
Inventory
Distribution
P4
P5
Physical
Bookstore
Courier
Services
P1 V1
P2 V1
P3 V1
P4 V1
Gather
Gather
Gather
Gather
P1 V2
Organize
P1 V3
Select
P2 V2
P3 V2
Organize
Organize
P2 V3
P3 V3
Select
Select
P1 V4
P2 V4
Synthesize
Synthesize
P1 V5
P2 V5
Distribute
Distribute
P3 V4
P5 V1
Gather
P4 V2
P5 V2
Organize
Organize
P4 V3
P5 V3
Select
Select
Synthesize
P4 V4
P5 V4
Synthesize
Synthesize
P3 V5
P4 V4
P5 V5
Distribute
Distribute
Distribute
CUSTOMERS
CUSTOMERS
PAR T N E R S
Amazon.com
P1
Subjects &
Contents
P5
P2
P3
P4
Online
Training
Formal
Exam
Retake
Exam
Certificate
Deliverable
P5 V1
P1 V1
P2 V1
P3 V1
P4 V1
Gather
Gather
Gather
Gather
P1 V2
P2 V2
P3 V2
Organize
Organize
Organize
P4 V2
Organize
P1 V3
P2 V3
P3 V3
Select
Select
Select
P4 V3
Select
P1 V4
P2 V4
P3 V4
Synthesize
Synthesize
Synthesize
P4 V4
Synthesize
P1 V5
P2 V5
P3 V5
P4 V4
Distribute
Distribute
Gather
P5 V2
Organize
P5 V3
Select
P5 V4
Synthesize
P5 V5
Distribute
Distribute
CUSTOMERS
Distribute
CUSTOMERS
PAR T N E R S
CUSTOMERS
Brainbench.com
P1
P3
P2
P4
Software
Demo
Purchasing
Gather
Freeware &
Shareware
Warehouse
Components
Download
P1 V1
P2 V1
P3 V1
Gather
Gather
Gather
P1 V2
P2 V2
P3 V2
Organize
Organize
Organize
P1 V3
P2 V3
P3 V3
Select
Select
Select
P1 V4
P2 V4
P3 V4
Synthesize
Synthesize
Synthesize
P1 V5
P2 V5
P3 V5
Distribute
Distribute
P5
Full
Download
P4 V1
P5 V1
Gather
P4 V2
Organize
P5 V2
Organize
P4 V3
Select
P5 V3
Select
P4 V4
Synthesize
P5 V4
Synthesize
P4 V4
Distribute
Distribute
CUSTOMERS
P5 V5
Distribute
CUSTOMERS
PAR T N E R S
Download.com
P1
P2
P3
List of
Used
Goods
Auction
Registration
Auction
Session
& Winner
P1 V1
P2 V1
P3 V1
Gather
Gather
Gather
P1 V2
P2 V2
P3 V2
Organize
Organize
Organize
P1 V3
P2 V3
P3 V3
Select
Select
Select
P1 V4
P2 V4
P3 V4
Synthesize
Synthesize
Synthesize
P1 V5
P2 V5
P3 V5
Distribute
Distribute
P4
P5
Payment
& Settlement
Goods
Deliverable
P4 V1
Gather
P5 V1
Gather
P4 V2
P5 V2
Organize
Organize
P4 V3
P5 V3
Select
Select
P4 V4
P5 V4
Synthesize
Synthesize
P4 V4
P5 V5
Distribute
Distribute
Distribute
CUSTOMERS
CUSTOMERS
CUSTOMERS
Ebay.com
New Type of Company
KNOWLEDGE COMPANY
Demand-Chain
Components
Application
Enablers
Technology
Vehicles
Supply-Chain
Components
G Market Strategy
G Product Design
G Marketing
G E-Catalogues
G ERP
G Email
G E-Collaboration
G Customer Management
G Value Network Management
G E-Forms
G E-Bulleting Boards
G WWW
G Chat Rooms
G EDI
G Financial EDI
G Electronic Funds
G Value-Added Networks
G Internet
G Extranet
G Web TV
G Wide Area Networks
G E-Marketplaces
G Intranet
G Private Network
G Procure
G Inbound Logistics
G Manufacturing
G Transportation
G Distribute
G Delivery
G Customer
PHYSICAL COMPANY
E
Introduction
E
E
E
E
Part 1: Principles and New Perspectives of e-Commerce
Part 2: Internet Business Models
Part 3: Opportunities and Threats of e-Commerce
Part 4: World Trend in e-Commerce and ICT Industry
E
E
Closures
Question and Answers
Corporate Evolution
Evolution of
Internet Usage
Real-Time
Organization
Communities
Of Interests
Transaction
Enabler
Customer
Interaction
Brochureware
Time
Complexity
Business Evolution
Value Trust
Networks
Knowledge
Networks
Value-Added
Services
Commodity
Exchanges
Value Proposition
Strategic Revolution
Convergence
Industry
Transformation
Business
Value
Value-Chain
Integration
Channel
Enhancement
Strategic/
Organizational
Change
Leverage of e-Business
Types of eCommerce
SELF
ORGANIZING
Control
HIERARCHICAL
LOW
Value Integration
HIGH
Open Market
Seller
Buyer
Seller
Buyer
Seller
Buyer
Aggregation
Seller
Buyer
Seller
Aggregator
Buyer
Seller
Buyer
Value Chain
Seller
Seller
Seller
Seller
Buyer
Integrator
Buyer
Seller
Seller
Buyer
Alliance
Seller
Buyer
Seller
Value Space
Buyer
Seller
Buyer
Economics of Information
BACKWARD INTEGRATION
INTERNAL INTEGRATION
BACK
OFFICE
VALUE
CHAIN
Suppliers
and
Business
Partners
FRONT
OFFICE
VALUE
CHAIN
FORWARD INTEGRATION
Retail
And
Corporate
Customers
Company Resources
1.
2.
3.
4.
5.
Flow of
Flow of
Flow of
Flow of
Flow of
Products
Services
Money
Documents
Information
Reach
Connectivity
versus
Richness
Bandwidth
Customization
Interactivity
Four Types of eCompany
1 Corporate Enhancement
Old Company plus Internet
2 DotCom
Start from Scratch in Internet
3 Extended Supply Chain
Upstream Connection through Internet (Suppliers)
4 Customer Relation
Downstream Connection through Internet (Customers)
Corporate Enhancement
Business Partners
Suppliers, Distributors, Resellers
Supply Chain Management
Enterprise Resource Planning
Customer Relationship Management
Marketing – Sales – Customer Service
Selling Chain Management
Customers, Resellers
Administrative Control
HRMS – ORMS - Purchasing
Stakeholders
Enterprise
Application
Integration
Management Control
Knowledge
Tone
Applications
Finance – Accounting - Auditing
Employees
Logistics – Production - Distribution
Dot Com
End
Consumers
Who is buying ?
What is being
offered ?
What is being
ordered ?
How is the order
being fulfilled ?
Who is supplying
the product ?
Consumer
Management
Catalogue
Management
Order
Management
Delivery
Management
Inventory
Management
Registration
Product
Description
Order
Accounting
& Settlement
Source Product
and Delivery
Services
Availability to
Promise
Credit
Processing
Samples
Web-Enabled
Call Center
Track and
Trace
Pick, Pack,
and Ship
Consumer
Fulfillment
History
Availability
Payment
Processing
Merge in Transit
and Installation
Services
Warehousing
Account
Maintenance
Prices
Sales
Reporting
Delivery
Product
Replenishment
Producers
Suppliers
Business Operations Management
Information flow
Money flow
Physical flow
Extended Supply Chain
Value Added
Suppliers
3rd Party
Logistics
Installers
e-Supply Chain Management
3rd Party
Service
Commodity
Suppliers
Engineering
Contractor
Contract
Manufacturing
Collaborative Planning
G On-line collaborative planning and forecasting
G Supply chain available-to-promise
G Inventory and order visibility
G Dynamic scheduling and reprioritization
G Real-time decisions based on demand, capacity, costs, and
responsiveness
G Real-time demand profiles
Web Fulfillment
G Real-time capture of customer orders into manufacturing systems
G On-line training and information
G Real-time product information / engineering changes
e-Supply Chain Management
G Utilize information as a substitute for inventory
G Compete on supply chain agility and speed
G View partner collaboration as a strategic asset
Customer Relation
Indirect Channels
Partners
Existing
Customers
Joint Offering
Partners
New Customers
e-Customer Relationship Management
Real-Time Ordering
G Customer-specific pricing and products
G Accurate order status 24 x 7
G Real-time available-to-promise
Opportunity Management
G Competitive intelligence capability
G Tracking of channel partner performance
G Customer and channel partner incentive programs
Value Added Services via the Web
G Training
G Customer-specific functionality and branding
G Demand full from customers’ service provisioning
G Cycle time monitoring from lead to installation
Customer and Partner Self-Service
G Interactive customer assistance
G Personalized extranets
e-Customer Relationship Management
G Anticipate customer needs
G View customer information as a strategic asset
G Treat each customer as unique
G Provide single face to customer
G Mine customer information for sales purposes
G Provide integrated multi-channel customer service
New Markets
Portal Business
Fragmented Industries
Consolidated Industries
Sell-Side
Sites
1:M
Distribution
Portal
m:M
Single supplier
Limited products
Fixed pricing
Inventory risk
Long-term scale
Few suppliers
Aggregate catalogs
Streamline selling
Larger audience
Vertical
Exchanges
M:M
Procurement
Portals
M:m
Buy-Side
Sites
M:1
Many buyers
Industry giants
Attract many suppliers
Many sellers
Auto, computers
Bid on major buyers
Dynamic pricing
Combine purchasing
Business
Most liquid
Force suppliers to join
Efficient marketplaces
One-to-Many Model Many-to-Many Model Many-to-Many Model Many-to-Many Model Many-to-One Model
Customer Relation Management
Supply Chain Management
Marketplace Platform Providers
Strategic Alliances
Strategic Service Partners
Manufacturing
Third-Party
Logistics
Distribution
Warehousing
Commodity
Suppliers (CS)
Secure High-Speed Backbone
Value-Added
Suppliers (VAS)
Network
Operations
Partner (NOP)
Strategic Core Competencies
Application
Service
Provider (ASP)
Nonstrategic Service Partners
Finance
Human
Resource
Indirect
Processes
Travel
E
Introduction
E
E
E
E
Part 1: Principles and New Perspectives of e-Commerce
Part 2: Internet Business Models
Part 3: Opportunities and Threats of e-Commerce
Part 4: World Trend in e-Commerce and ICT Industry
E
E
Closures
Question and Answers
Indrajit Matrix
Know the
Paradigm
Impact on
Existing
Business
Reactive
Action
Highly Possible
Output
Yes
Yes
Yes
Survive
Yes
Yes
No
Business Threat
Yes
No
Yes
Opportunities Taken
Yes
No
No
Adding Knowledge
No
Yes
Yes
Boomerang
No
Yes
No
Dangerous
No
No
Yes
Gambling Adventure
No
No
No
Nice Watcher
Virtual vs Physical Community
Population
Internet Users
Internet
Business
C2C
B2B
1
2
3
B2C
The Winners
1. New Business (products/services)
2. New Market (customers)
3. New Revenue (business model)
4. New Company (business transformation)
5. New Image (business community)
6. New Wealth (paradigm shift)
Etc.
Key Points:
From “nothing” to “existing”
A
A
From “existing” to “creating”
A
From “creating” to “improving”
A
From “improving” to “growing”
A
From “growing” to “performing”
The Losers
1. Loss market share (products and services)
2. Loss revenue (customers)
3. Loss competitive advantage (business model)
4. Loss trust (business community)
5. Loss resources (competition)
6. Loss opportunity (cost)
Etc.
Key Points:
From “performing” to “stopping”
A
A
From “stopping” to “decreasing”
A
From “decreasing” to “surviving”
A
From “surviving” to “eliminating”
The Survival
AA: Traditional “invest
for future” goingconcern success
AB: Dark Model
Profitless growth, war
of corporate attrition
AC: Black Hole
Massive company
generates negative
cash flow, never recovers
Formula 40/40
First 40%
Critical Market Penetration
as Online Sector for That Service
Has or Will Achieve Around 40%
Penetration of Overall Demand from
All Channels and Sources.
16%
40%
24%
Second 40%
Key Consideration is the Percentage
of the Online Share Commanded by
That Specific Company. Target: 40%.
60%
Total Demand, All Channels
New Dot Com Paradigm
CHARACTERISTICS
NET-PHASE 1
NET-PHASE 2
Ideal company
Thin float IPO, all-new online
standalone start up
Second generation bricks ‘n clicks
hybrid with compelling market
proposition
Foundation investor/shareholders
Individual online investor, buying
anything in current Cant Miss
sector on dips
Institution, adapting value
investment principles to volatile
internet
Key player
Startup originators, early stage
angles, VC, top IPO investment
bankers
Killer model developers, secondary
(mainstream) financiers
Primary management focus
Positioning: Being in the right
sector
Viable business plan that ensures
survival today, segment leadership
tomorrow
Presence
Participation
Domination (40/40)
Market share capture approach
Bottom up
Top down
New Dot Com Paradigm
CHARACTERISTICS
NET-PHASE 1
NET-PHASE 2
Positive cash flow in the future
Communicated via “perceptions
management”
Through specific forecasts and
commitments
Net-Brand development
Reliance on high risk, low-yield,
high-cost traditional media
Extending the few highly
successful key net nameplates and
bricks ‘n clicks hybrid nameplates
leveraging on traditional market
presence
Mergers and acquisitions emphasis Cross-Dot-Com commercial
contracts with spin as special
alliances
Industry group strategic alliance
announcement: overpromise
Market share capture strategy
Top down
Bottom up
Common Mistakes
1. “Field of Dreams” Syndrome
2. Inadequate architecture
3. Putting lipstick on a bulldog
4. Islands of webification
5. “Me too” strategies
6. One-time-effort mentality
7. Thinking too small
Cost Transparency
E Avoid from having a high profit margin
E Change the product into commodity
E Weaken customer loyalty to brand
E Decrease Company reputation due to Unfair pricing
eEntrepreneurship
1. Understand the principles of
new economy
2. Have a good vision
3. Excellence in working
stamina
4. Able to cope with change
5. Can manage people
6. Collaborate to compete
7. Combine professional with
entrepreneur
Steps for Success
1
2
3
4
Test
the
Idea
Determine Develop
Resource
Business Business
Gathering
Objective Model
5
6
Setting
the
Stage
Start
the
Business
Required Skills and Competencies
G
G
G
G
G
G
G
G
eCommerce Program Managers
Enterprise architects
Business and Information architects
Infrastructure architects
Application architects
Solution developers
Component developers
Human factors engineers
What Is an ISP?
ISP - Internet Service Provider
E Types of ISPs
– Corporate ISPs - target enterprises
– Residential ISPs - offer services to the consumer market
E Services
– Basic Internet access services through analog dial-up, ISDN,
xDSL, leased-lines or Frame Relay
– e-mail services
– Web hosting (including creation and maintenance services)
– Application hosting (ASP) - corporate applications
(Baan,SAP), e-commerce applications (such as transaction
processing)
The IIX Connections
ISPs in Indonesia
The ISP’s Future
ISPs
(Internet Service Providers)
ISPs
(Integrated Service Providers)
Demand Side of Technology
CUSTOMER LAYER
PERSONAL COMPUTER
AT WORK
Chatting
IP LAYER
Online Support
Retailer Transaction
PRODUCTS
AND SERVICES
Browser/User Interface
Search Engine
Electronic Publishing
Connectivity
Messaging & Mail
Content Aggregation
Collaboration
Document Management
KIOSK
FAX
TE L E P H O N E
TELEVISION
IN PUBLIC
CONSUMERS
Calling/Conferencing
AT HOME
INTEGRATION MANAGEMENT LAYER
INTELLIGENT MONITOR
IN VEHICLE
FAMILIES
COMMUNITIES
INSTITUTIONS
APPLIANCES LAYER
PERSONAL DIGITAL ASSISTANT
BUSINESS
LOCATION LAYER
SOLUTIONS
CONSULTING
SERVICES
Training
Legacy Integration
Service Customization
Transaction Processing Commerce Fulfillment Webcasting
Collaboration Too
va Plugins Inventory Management Document Archive MM Archive
Audio/Video Streams URL Controls Call Centre Services MM Players Workflow Tools
New Feeds Authentication Encryption IP Voice Realtime Audio/Video Page Generation
Connectivity
PHASE ONE
Browser
Directory
Firewall & Installation
Basic Web Hosting, Cache, Staging
Remote Firewall Management
Site Security & Maintenance
Customer Service
Sprint Link IP Backbone
T1
Frame
Usenet
Search Engnie
DNS Services
FTP
Database Service Storage Management / Capacity Planning
Account Administration
Billing
Sprint Private Intranet Backbone
ATM
DSLs
ISDN
Reporting
Dial Up Access
Clearline
GATEWAY SERVICES
Enhanced Directory Publishing Fax InfoXchange Paging Chat BBS/Forums Agents
Dedicated Access
Wireless
APPLICATION INTEGRATION SERVICES
System Integration
Consulting
MANAGED NETWORK SERVICES
Real-Time
Communication
PHASE TWO
Custom Programming
DESIGN
SERVICES
Context
Mass Market
Content
Aggregation
Consumer Verticals
Content
Provider
SOHO Verticals
Public Sector Verticals
Affinity Groups
Business Verticals
Community
PHASE THREE
Supply Side of Technology
Indrajit e-Technology Cube
Speed
COMMUNICATION
APPLIANCES LAYER
Personal Computer, Kiosk,
Fax, Telephone, Television,
Intelligent Monitor, PDA
Transaction Processing
E-Commerce Based Apps.
Multimedia Features
Workflow Tools
Call Center Services
Solutions Consulting Services
INTEGRATION
MANAGEMENT LAYER
Calling, Conferencing, Chatting,
Messaging, Online Support,
Retailer Transaction, Email
INTERNET PROTOCOL
LAYER
Devices Layers
CONNECTIVITY
Telecom. Infrastructure
Internet Infrastructure
Managed Network Services
Application Integration Services
Community Layers
E-Technology Infrastructure
BROCHURWARE
At Work, In Public,
In Vehicle, At Home
COMMUNITIES OF INTERESTS
Content Providers
Business Verticals
Affinity Groups
SOHO Verticals
Consumer Verticals
Mass Market
TRANSACTION ENABLER
LOCATION LAYER
COMMUNITY
CUSTOMER INTEERACTION
Business, Consumers,
Families, Communities,
Institutions
Reliability
REAL-TIME ORGANIZATION
CUSTOMER LAYER
Scalability
E-Technology Development Stage
Cost
Security
EDL Layers
Speed
COMMUNICATION
APPLIANCES LAYER
Personal Computer, Kiosk,
Fax, Telephone, Television,
Intelligent Monitor, PDA
Transaction Processing
E-Commerce Based Apps.
Multimedia Features
Workflow Tools
Call Center Services
Solutions Consulting Services
INTEGRATION
MANAGEMENT LAYER
Calling, Conferencing, Chatting,
Messaging, Online Support,
Retailer Transaction, Email
INTERNET PROTOCOL
LAYER
Devices Layers
BROCHURWARE
At Work, In Public,
In Vehicle, At Home
CONNECTIVITY
Telecom. Infrastructure
Internet Infrastructure
Managed Network Services
Application Integration Services
Community Layers
E-Technology Infrastructure
Trend Highlights:
G Multimedia features (50%)
G Entertainment Purposes (62%)
G Pervasive computing devices
COMMUNITIES OF INTERESTS
Content Providers
Business Verticals
Affinity Groups
SOHO Verticals
Consumer Verticals
Mass Market
TRANSACTION ENABLER
LOCATION LAYER
COMMUNITY
CUSTOMER INTEERACTION
Business, Consumers,
Families, Communities,
Institutions
Reliability
REAL-TIME ORGANIZATION
CUSTOMER LAYER
Scalability
E-Technology Development Stage
Cost
Security
G
G
PC penetration (0.8%), phone line
penetration (3.67%), and internet
penetration (0.15%) in Indonesia is
the lowest in the South East Asia
region [WDR Research]
Facts from the research:
G 21% of the respondents have
subscribed internet at home (in
ten big cities)
G Prefer to access internet from
office or warnet (83%) due to
cost structure (the growth of
internet users > internet
subscribers)
G Use the internet for basic
communication such as email
(79%) and surfing (52%)
EDS Layers
Speed
COMMUNICATION
APPLIANCES LAYER
Personal Computer, Kiosk,
Fax, Telephone, Television,
Intelligent Monitor, PDA
Transaction Processing
E-Commerce Based Apps.
Multimedia Features
Workflow Tools
Call Center Services
Solutions Consulting Services
INTEGRATION
MANAGEMENT LAYER
Calling, Conferencing, Chatting,
Messaging, Online Support,
Retailer Transaction, Email
INTERNET PROTOCOL
LAYER
Devices Layers
BROCHURWARE
At Work, In Public,
In Vehicle, At Home
COMMUNITIES OF INTERESTS
Content Providers
Business Verticals
Affinity Groups
SOHO Verticals
Consumer Verticals
Mass Market
TRANSACTION ENABLER
LOCATION LAYER
COMMUNITY
CUSTOMER INTEERACTION
Business, Consumers,
Families, Communities,
Institutions
Reliability
REAL-TIME ORGANIZATION
CUSTOMER LAYER
Scalability
CONNECTIVITY
Telecom. Infrastructure
Internet Infrastructure
Managed Network Services
Application Integration Services
Community Layers
E-Technology Infrastructure
Highlights:
G Scalability is the key
G Free competition, no exclusive rights
G Wireless technology
E-Technology Development Stage
Cost
Security
G
G
G
G
G
Telkom and Indosat are the main
players in connectivity industry
There are approximately 35 active
ISPs
More convergent products and
services
Fast growing internet community
Facts from the research:
G Criteria in choosing the
internet connectivity and
communication provided by
ISPs: number of internet
subscribers, features, access
speed, and reliability
Cost
Speed
COMMUNICATION
APPLIANCES LAYER
Personal Computer, Kiosk,
Fax, Telephone, Television,
Intelligent Monitor, PDA
Transaction Processing
E-Commerce Based Apps.
Multimedia Features
Workflow Tools
Call Center Services
Solutions Consulting Services
INTEGRATION
MANAGEMENT LAYER
Calling, Conferencing, Chatting,
Messaging, Online Support,
Retailer Transaction, Email
INTERNET PROTOCOL
LAYER
Devices Layers
BROCHURWARE
At Work, In Public,
In Vehicle, At Home
COMMUNITIES OF INTERESTS
Content Providers
Business Verticals
Affinity Groups
SOHO Verticals
Consumer Verticals
Mass Market
TRANSACTION ENABLER
LOCATION LAYER
COMMUNITY
CUSTOMER INTEERACTION
Business, Consumers,
Families, Communities,
Institutions
Reliability
REAL-TIME ORGANIZATION
CUSTOMER LAYER
Scalability
E-Technology Development Stage
Cost
Security
CONNECTIVITY
Telecom. Infrastructure
Internet Infrastructure
Managed Network Services
Application Integration Services
Community Layers
E-Technology Infrastructure
Highlights:
G Telephone pulse/internet is public good
G Alternative technology that is cheaper
G Value added products and services
G
Facts from the research:
G The cost of linking to the
internet is expensive:
G PC
G Telephone
G Electricity
G ISP
G More people will subscribe
internet as long as the cost is
not expensive (79%)
G Flat rate for internet
connection is required
Speed
Speed
COMMUNICATION
APPLIANCES LAYER
Personal Computer, Kiosk,
Fax, Telephone, Television,
Intelligent Monitor, PDA
Transaction Processing
E-Commerce Based Apps.
Multimedia Features
Workflow Tools
Call Center Services
Solutions Consulting Services
INTEGRATION
MANAGEMENT LAYER
Calling, Conferencing, Chatting,
Messaging, Online Support,
Retailer Transaction, Email
INTERNET PROTOCOL
LAYER
Devices Layers
BROCHURWARE
At Work, In Public,
In Vehicle, At Home
CONNECTIVITY
Telecom. Infrastructure
Internet Infrastructure
Managed Network Services
Application Integration Services
Community Layers
E-Technology Infrastructure
Highlights:
G Broadband technology
G Enabling software/applications
COMMUNITIES OF INTERESTS
Content Providers
Business Verticals
Affinity Groups
SOHO Verticals
Consumer Verticals
Mass Market
TRANSACTION ENABLER
LOCATION LAYER
COMMUNITY
CUSTOMER INTEERACTION
Business, Consumers,
Families, Communities,
Institutions
Reliability
REAL-TIME ORGANIZATION
CUSTOMER LAYER
Scalability
E-Technology Development Stage
Cost
Security
G
Facts from the research:
G For basic internet features
(email, chatting, and surfing),
the access is low but
acceptable (37%)
G Become serious problem for
multimedia features:
G Picture
G Video
G Audio
Reliability
Speed
COMMUNICATION
APPLIANCES LAYER
Personal Computer, Kiosk,
Fax, Telephone, Television,
Intelligent Monitor, PDA
Transaction Processing
E-Commerce Based Apps.
Multimedia Features
Workflow Tools
Call Center Services
Solutions Consulting Services
INTEGRATION
MANAGEMENT LAYER
Calling, Conferencing, Chatting,
Messaging, Online Support,
Retailer Transaction, Email
INTERNET PROTOCOL
LAYER
Devices Layers
BROCHURWARE
At Work, In Public,
In Vehicle, At Home
COMMUNITIES OF INTERESTS
Content Providers
Business Verticals
Affinity Groups
SOHO Verticals
Consumer Verticals
Mass Market
TRANSACTION ENABLER
LOCATION LAYER
COMMUNITY
CUSTOMER INTEERACTION
Business, Consumers,
Families, Communities,
Institutions
Reliability
REAL-TIME ORGANIZATION
CUSTOMER LAYER
Scalability
CONNECTIVITY
Telecom. Infrastructure
Internet Infrastructure
Managed Network Services
Application Integration Services
Community Layers
E-Technology Infrastructure
Highlights:
G Service level agreement and penalty
G Transmission media alternative
G Short network to internet backbone
E-Technology Development Stage
Cost
Security
G
Facts from the research:
G 74% of the respondents have
ever faced problems while
accessing internet
G 65% is uneasy to access
internet
G 71% experiences “hang””
and “disconnected””
G Average of 72% has a
frequency of once/twice within
4 times access found the
problems:
G Not easy to access
G Browsing too long
G Often disconnected
G Offen “hang””
Security
Speed
COMMUNICATION
APPLIANCES LAYER
Personal Computer, Kiosk,
Fax, Telephone, Television,
Intelligent Monitor, PDA
Transaction Processing
E-Commerce Based Apps.
Multimedia Features
Workflow Tools
Call Center Services
Solutions Consulting Services
INTEGRATION
MANAGEMENT LAYER
Calling, Conferencing, Chatting,
Messaging, Online Support,
Retailer Transaction, Email
INTERNET PROTOCOL
LAYER
Devices Layers
BROCHURWARE
At Work, In Public,
In Vehicle, At Home
CONNECTIVITY
Telecom. Infrastructure
Internet Infrastructure
Managed Network Services
Application Integration Services
Community Layers
E-Technology Infrastructure
Highlights:
G Hard and soft security aspects
G Guarantee from third party
G Protected by law (legal entity)
COMMUNITIES OF INTERESTS
Content Providers
Business Verticals
Affinity Groups
SOHO Verticals
Consumer Verticals
Mass Market
TRANSACTION ENABLER
LOCATION LAYER
COMMUNITY
CUSTOMER INTEERACTION
Business, Consumers,
Families, Communities,
Institutions
Reliability
REAL-TIME ORGANIZATION
CUSTOMER LAYER
Scalability
E-Technology Development Stage
Cost
Security
G
Facts from the research:
G 88.4% knows about purchasing
online through internet
G But 83.7% has not yet using
internet for purchasing
transaction:
G No guaranteed payment
security system
G Afraid of mis-operating the
transaction procedure
G Example: Not all
companies have been
using internet banking yet
Scalability
Speed
COMMUNICATION
APPLIANCES LAYER
Personal Computer, Kiosk,
Fax, Telephone, Television,
Intelligent Monitor, PDA
Transaction Processing
E-Commerce Based Apps.
Multimedia Features
Workflow Tools
Call Center Services
Solutions Consulting Services
INTEGRATION
MANAGEMENT LAYER
Calling, Conferencing, Chatting,
Messaging, Online Support,
Retailer Transaction, Email
INTERNET PROTOCOL
LAYER
Devices Layers
BROCHURWARE
At Work, In Public,
In Vehicle, At Home
COMMUNITIES OF INTERESTS
Content Providers
Business Verticals
Affinity Groups
SOHO Verticals
Consumer Verticals
Mass Market
TRANSACTION ENABLER
LOCATION LAYER
COMMUNITY
CUSTOMER INTEERACTION
Business, Consumers,
Families, Communities,
Institutions
Reliability
REAL-TIME ORGANIZATION
CUSTOMER LAYER
Scalability
CONNECTIVITY
Telecom. Infrastructure
Internet Infrastructure
Managed Network Services
Application Integration Services
Community Layers
E-Technology Infrastructure
Highlights:
G Service level agreement and penalty
G Appropriate technology is required
E-Technology Development Stage
Cost
Security
G
G
The fast growth of subscribers
should not decrease the
performance (internet access)
Switch of ISPs exists due to the
scalability problem (getting slower
as the subscribers grow)
Development Stage
Speed
COMMUNICATION
APPLIANCES LAYER
Personal Computer, Kiosk,
Fax, Telephone, Television,
Intelligent Monitor, PDA
Transaction Processing
E-Commerce Based Apps.
Multimedia Features
Workflow Tools
Call Center Services
Solutions Consulting Services
INTEGRATION
MANAGEMENT LAYER
Calling, Conferencing, Chatting,
Messaging, Online Support,
Retailer Transaction, Email
INTERNET PROTOCOL
LAYER
Devices Layers
BROCHURWARE
At Work, In Public,
In Vehicle, At Home
COMMUNITIES OF INTERESTS
Content Providers
Business Verticals
Affinity Groups
SOHO Verticals
Consumer Verticals
Mass Market
TRANSACTION ENABLER
LOCATION LAYER
COMMUNITY
CUSTOMER INTEERACTION
Business, Consumers,
Families, Communities,
Institutions
Reliability
REAL-TIME ORGANIZATION
CUSTOMER LAYER
Scalability
E-Technology Development Stage
Cost
Security
CONNECTIVITY
Telecom. Infrastructure
Internet Infrastructure
Managed Network Services
Application Integration Services
Community Layers
E-Technology Infrastructure
Highlights:
G Back-office move to front-office (B2B)
G Free and new business model (B2C)
G
Facts from the research:
G 59% aware of advertisement in
internet (Level 1:
Brochureware)
G 59% using internet for
business and personal
purposes (Level 2: Customer
Interaction)
G 16% using internet for
purchasing transaction (Level
3: Transaction Enabler)
Key Success Factors
E-Organization
E-Capitalization
E-Infrastructure
E-Synchronization
E-Strategy
E-Volution
E-Vision
E
Introduction
E
E
E
E
Part 1: Principles and New Perspectives of e-Commerce
Part 2: Internet Business Models
Part 3: Opportunities and Threats of e-Commerce
Part 4: World Trend in e-Commerce and ICT Industry
E
E
Closures
Question and Answers
Examples of Existing eCommerce
Have you seen the latest technology update ?
IT at a crossroad…
Forecasting is a tricky business…
Where are we?
Where are we going?
1600000
1400000
1200000
1000000
800000
600000
400000
200000
hosts
mobiles?
0
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
How do we get there?
The key indicators…
The challenge…
Digital everywhere…
The history and the future…
Ten emerging technology…
The ongoing research…
Very long-range factors
Next generation of internet
The requirements…
Beyond the earth…
+
+
+
The Mars Network
Interplanetary internet
Future technology enablers
DNA Computing
Fi n a l l y …
Who will ruin the world…
More Explanations
For Linux Starters
Thank You
Richardus Eko Indrajit
eko@indrajit.org
indrajit@post.harvard.edu
http://www.indrajit.org
Q&A