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