EBUSINESS THE FUNDAMENTAL EBUSINESS EBusiness is defined as

E-BUSINESS, THE FUNDAMENTAL

E-BUSINESS E-Business is defined as the complex fusion of business processes, enterprise applications, and organizational structure necessary to create a high performance business model. The E-Business advantageous : Streamlining the business process Improving productivity and efficiency Shortening the delivery time to customer Offering more competitive products/services to customer Improving customer service system 2

FOCUS OF E-BUSINESS Traditional business focuses on product, price, & channel distribution. E-Commerce business focuses on the wider market & online system, to get higher sales order revenue. E-Business focuses on ‘CUSTOMERS’ ! Focus on what customers need and satisfaction What do customers want ? Shorter and on time delivery time Committed customer care Consistent competitive price Treated & maintained personally 3

CUSTOMER’S NEED Customer’s Fundamentals : Don’t waste our time Remember who we are Make it easy for us to order and procure the service Make sure your service delights us Customize your products and service for me Customers expect companies to continuously improve the followings : Speed Convenience Personalization Price 4

TRANSFORMATION TO E-BUSINESS Why E-Commerce and Traditional Business should transform into E-Business ? Decrease time to produce and market new products Reduce cost and time per transaction substantially Reduce customer service cost dramatically Reduce customer service time appreciably Assure the ‘shorter and on time delivery’ to customer Increase customer loyalty Reach customers in the most effective way with targeted offers Increase profitability 5

THE E-COMMERCE PHASE First Phase, 1994 - 1997 : Presence Web site, as the online presence, providing any information related with the profile/products/services Second Phase, 1997 – 2000 : Transaction Buying & selling over the digital media Focusing on order flow and gross revenue Matching buyers & sellers who never found each other in the past New business model : Why sell it when you can give it away 6

THE E-COMMERCE PHASE Third phase, 2000 – now : E-Business Focuses on how the internet can impact the profitability Increases gross margin, rather than gross revenue Includes all applications and processes Includes front & back office applications that form the core engine for the modern business E-Business is the overall strategy of redefining old business models, with the aid of technology, to maximize customer value and profit. E-Business : P 2 P, Path to profitability 7

10 (TEN) RULES OF EBUSINESS Technology is no longer an afterthought in forming business strategy, but rather the cause and driver The ability to streamline the structure of information and to influence and control its flow is a dramatically more powerful and cost effective service than is that of moving and manufacturing physical products Inability to overthrow the dominant, outdated business design often leads to business failure 8

10 (TEN) RULES OF EBUSINESS Using E-Commerce, companies can listen to the customers and become the cheapest, the most familiar, or the best Don’t use technology just to create the product. Use technology to innovate, entertain, and enhance the entire experience The business design on the future increasingly uses reconfigurable e-business models to best meet customer’s needs 9

10 (TEN) RULES OF EBUSINESS The goal of new business design is for companies to create flexible outsourcing alliances that not only offload costs but also make customers ecstatic For urgent E-business projects, it’s easy to minimize application infrastructure needs and to focus on the glitzy front end apps. The oversight can be costly in more ways than one 10

10 (TEN) RULES OF EBUSINESS The ability to plan an e-business infrastructure course swiftly and to implement it ruthlessly are key to success. Ruthless execution is the norm. The tough task for management is to align business strategies, processes, and applications quickly, correctly, and all at once. Strong leadership is imperative. 11

MAJOR TRENDS DRIVING INTO E-BUSINESS There are 6 (six) major trends, driving organization into EBusiness enterprise : Consumer trends Faster service Self Service More product choices Integrated solutions E-Service Integrated Sales & Service Seamless Support Flexible fulfillment and convenient service delivery Increased process visibility 12

MAJOR TRENDS DRIVING INTO E-BUSINESS Organizational Outsourcing Contract manufacturing Virtual Distribution Employee Hiring the best and brightest Keeping the talented employees Enterprise technology Integrated Enterprise applications Multi-channel integration Middleware 13

MAJOR TRENDS DRIVING INTO E-BUSINESS General Technology Wireless Web applications Handheld computing and information appliances Infrastructure convergence Application service providers 14

KEY TRENDS & ASSUMPTIONS KEY TRENDS KEY ASSUMPTIO NS TRADITIONAL BUSINESS DESIGN E-BUSINESS DESIGN Product focused Customer focused Rigid, functionality oriented system Flexible, integrated service applications Cost reduction as the key to success Customer relationship as the key to success Task oriented Solution oriented 15

LESSONS FROM EBUSINESS Management of Technology Customer focus oriented Value creation is a continuous process Transform business process into digital form Decentralize management but centralize coordination Creating an e-business application architecture, which involves Interface, Integration, and Innovation 16

LESSONS FROM AMAZON. COM Customers don’t care what your office looks like; they only care about getting the great service. Keep your website simple Create a wonderful customer experience Create a community of customers Business planned for profit apt to fail; Business planned for service are apt to succeed. Listen to your customers and commit 100% to customer service. 17

ENTERPRISE RESOURCE PLANNING (ERP) Integrating and automating the information running along the business processes, across business applications. ERP transforms transactional data into useful information and collates the data so that it can be analyzed. All of the collected transactional data becomes information that companies can use to support business decisions. ERP speeds communications and the distribution & analysis of information, facilitating the exchange of 18 data across corporate divisions.

ERP is the technological backbone of E-Business, an enterprise wide transaction framework with links into sales order processing, inventory management & control, production and distribution planning, and finance. E-Commerce is the front office, while ERP is the back office. When customer buys something from a web site, store, or call center, the response is automatically triggered in the sales, accounting, and logistic applications. 19

ERP offers customers a more efficient and higher quality level of service, including the ability to order products on line and to inquiry about product pricing and order status. ERP is not restricted to large firms. In the dot com world, managing customer relationship is one of the key to success. If companies don’t provide the services customers expect, they will go elsewhere. 20

ERP EVOLUTION Wave 1, 1970’s : MRP (Material Requirement Planning) & DRP (Distribution Resource Planning), focused on automating all aspects of production master scheduling and centralized inventory planning. Wave 2, 1980’s : MRP II, extending MRP traditional focus on production processes into other business functions, including order processing, manufacturing, and distribution. MRP II shows how technology could link disparate business functions. 21

ERP EVOLUTION Wave 3, 1990’s : Migrating MRP to ERP, more business function applications are integrated The key business drivers forcing MRP (Material Requirement Planning) migrates to ERP : Replacing creaky legacy systems. Gaining greater control Managing global operations Handling industry deregulation and regulatory change Improving integration of decisions across the enterprise 22

ERP EVOLUTION The idea behind integration : Use technology to develop process standardization across multiple business units in order to generate continued margin expansion and greater return on capital. Wave 4, 1997 : CRP (Customer Centric Resource Planning), the ERP evolution from focusing on cost cutting, efficiency, & productivity to a new focus on customer value, effectiveness, and enhanced service delivery. 23

ERP EVOLUTION CRP (Customer Centric Resource Planning), is the solution for the business requirements of “build to order/fulfill to order” paradigm. CRP strategies assume that companies must plan continuously instead of classic ERP assumption of long planning cycles. Wave 5, 2000’s : XRP (Extended Resource Planning), extending the organizational foundation of an ERP backbone to its customers, suppliers, and trading partners. It’s an ERP with supply chain planning. 24

ERP Implementation of ERP suite application is a crucial and critical decision. The risk was certainly disruption of business, because if you do not do ERP properly, you can kill your company, guaranteed …. said Jim Prevo, CIO of Green Mountain Coffee Getting the fit wrong can destroy an organization’s competitive capability 25

ERP Fox Meyer Drugs, a 5$ billion pharmaceutical wholesaler, filed for bankruptcy protection following a bad case of ERP implementation (by Andersen Consulting). When implemented properly, ERP will work well. Often the problem lies not with ERP concept, but in the management’s demands for quick fixes and rapid cures to underlying structural problem, which cannot be fixed quickly or cured rapidly. Companies that recognize ERP limitations, will gain significant operational benefit from ERP. 26

WHAT NEEDS DRIVE ERP ? The need to create an application framework to improve customer order processing. The need to consolidate and to unify relevant business functions The need to integrate a broad range of disparate technologies, along with the business processes they support, into common processes and a common technology platform The need to create a new technological foundation to support next generation E-Commerce applications. 27

ERP CASE STUDIES Microsoft The requirement : Financials, Procurement, and Human Resources. SAP R/3 enabled Microsoft to capitalize on new business opportunities and make the links with its customers and vendors, more efficient & effective Spending 10 months and $25 million, installing SAP R/3. The result, Microsoft saves $18 million annually, and lead Bill Gates to call SAP ‘an incredible success story’. 28

ERP CASE STUDIES Owens Corning, the world’s top makers of glass fiber & composite materials The goal : increasing the revenue, from $2. 9 billion to $5 billion per year The business goal : Offering one call shopping for exterior, insulation, pipes, and roofing materials. It includes : Accepting customer orders from any location worldwide into 1 (one) system Assigning ship dates to available products Scheduling future ship dates for products not in stock Checking order status 24 hours a day, 7 days a week 29

ERP CASE STUDIES Owens chose to implement SAP R/3. SAP enables Owens to publish single product list, single price list, tracking the finished goods inventory (in warehouse or distribution channel), and save $65 million at the end of 1998 30

ERP SUITE BRAND SAP R/3 ORACLE PEOPLESOFT JD EDWARDS GREATPLAINS JAVAIS ABAS IFS, etc 31

Microsoft Dynamics NAV Paket piranti lunak enterprise resource plannign Microsoft yang bertujuan untuk membantun pengelola perusahaan kecil dan menengah melaksanakan tugas-tugas keuangsn, manufaktur, pengelolaan hubungan pelanggan, rantai pasok, analitis dan perdagangan elektronik. NAV, yang diluncurkan Microsoft pada Oktober 2004, awalnya dikembangkan oleh Navision Software A? S, perusahaan Denmark yang berdiri pada 1984. Itu sebabnya nama kode NAV adalah Navision. Pda 2002, Microsoft membeli Navision dan menjadikannya divisi Microsoft Business Solutions. Pada 2007, Microsoft melepas Microsoft Dynamics NAV versi 5. 0 32 Sumber: Koran “Tempo”, rabu 18 Juli 2007

ERP untuk Usaha Kecil Microsoft memperkenalkan solusi pengelolaan bisnis yang dirancang khusus untuk perusahaan kecil dan menengah. Sistem ini merupakan perkembangan dari ERP. Sistem ini mengintegrasikan semua data dan proses di sebuah organisasi menjadi sebuah sistem terpadu. ERP mewnggunakan pangkalan data terpadu untuk menyimpan data bagi berbagai modul sistem Untuk mencapai integrasi maka sistem ERP menggunakan beragam komponen piranti lunak dan keras komputer Sumber: Koran “Tempo”, rabu 18 Juli 2007 33

Dynamics Entrepreneur Solution Dikenalkan di ajang Worldwide Partner Conference di Denver, AS. Terdiri dari piranti lunak keuangan, pembelian, penjualandan pemasaran. Menurut Barb Edson, Direktur Microsoft Dynamics, produknya cocok untuk perusahaan dengan karyawan hingga 49 orang dan hingga 5 orang pengguna bersama Dengan program keuangannya pengguna bisa mewnghitung pajak pertambahan nilai secara otomatis, mudah me-reconjcile account bank, membandingkan penerimaan dan pengeluaran secara langsung, serta mengelola proses keuangan dalam berbagai kurs mata uang. 34 Sumber: Koran “Tempo”, rabu 18 Juli 2007

Ø Program pembeliannya bisa menyimpan informasi vital mengenai pemasok, termasuk harga dan potensi diskon Ø Dengan mudah menangani penjualan, pesanan, tagihan dan surat kredit. Ø Pengguna bisa secara otomatis menentukan pemasok mana yang diprioritaskan untuk dibayar berdasarkan kriteria kepentingan dan ketersediaan kas. Ø Program penjualan dan pemasaran. , pengguna bisa membuat daftar pelanggan dan item penjualan untuk melihat siapa membeli apa. Ø Pengguna bisa juga menjaga kontak bisnisnya terkelola baik dan up-to-date Ø Paket piranti lunak ini pertama hanya akan tersedia di pasar Eropa mulai September 2007 Ø Di kawasan lain menyusul setelah itu, diluncurkan di empat negara: Jerman, Belanda, Spanyol dan Inggeris dengan harga 795 euro (Rp. 9, 86 juta) Ø Paket Dynamics Entrepreneur Solution ini merupakan bagian dari paket software untuk bisnis Microsoft Dynamics. Ø Sebelumnya, telah dil; uncurkan Microsoft Dynamics CRM, AX, GP, SL dan NAV serta Microsoft Retail Management System. 35 Sumber: Koran “Tempo”, rabu 18 Juli 2007