Tour IV eEnvironment E Widodo e 2 Objectives

Tour IV : e-Environment E. Widodo e-

2 Objectives • Point out influencing elements from e. Environment which affect e-Business strategy • Know the legal and ethical constrains on e. Business strategy • Exploit the opportunities which available within macro environment for the sake of e-Business success implementation e-

Contents 3 • • • e- Social factors Legal & ethical factors Economic and competitive factors Political factors Technological innovation

Mic & Mac env. factors 4 Macro env. factors Social Legal & ethic Organization Customer Economic Supplier Political Competitor Technological Intermediary SLEPT Focus e- Micro env. factors Need to be monitored periodically to keep the competitive level: Environment scanning & analysis

5 e- Social factors • Social factor: social and cultural constraints of internet uses as the basis of e-B & e-C • Factors influence internet usage (Chaffey, 2000): – Cost of access – Value proposition (what can be offered) – Ease of use – Security – Fear of the unknown (running technology) • Key: How much is the proportion of customers criteria in each marketplace who: – Have access to the internet – Are influenced by using the internet – Purchase using the internet

6 e- Percentage of internet access

7 e- Variation in demographic chars of UK internet users

8 Webographics (Grossnickle & Raskin, 2001) • Webographics: terms in internet usage which consists of: – Location – Access device – Connection speed – ISP – Experience level – Usage type • Do not forget the non-users which comprise more than 50% of country population across nations. e-

9 Psychographic segmentation (www. netpoll. net) e-

10 e- Online demand profile • B 2 B is more complex than B 2 C in terms of: – Variation in organization characteristics: • Company size • Industry sector • Organization type • Division • Country and region – Individual role of the B 2 B executor: • Job responsibility • Role in buying decision • Department • Product interest • Demographics

11 e- Proportion of organization size with online suppliers (DTI, 2000)

12 Privacy and trust (Chaffey, 2000) 1. Collection and holding personal information • Cookies: small text (electronic tag) stored on end user PCs to enable online business system identify them 2. Disclosing personal information to 3 rd party 3. Sending unsolicited e-mails to consumers • Spamming: sending bulk (unsolicited) e-mail to targeted consumers • Opt-in: consumer’s agreement on accepting further information from business system • Opt-out: <<disagreement>> ditto e-

13 Legal factors • Legal factor: local legal constraints perceived on internet uses as the basis of e-B & e-C • Some related legal issues: – Domain name registration for trade marking of internet brand – Advertising standards – Defamation (discredit to another organization) & libel (slander) – Copyright (IPR) – Data protection act and privacy law – Taxation on e-commerce e-

14 Economic & competitive factors • Economic & competitive factors: the level of economic and competitiveness of different country’s constraints on internet uses as the basis of e-B & e-C • Objective indicator: GNP GNI (see detail) • Leaders & contenders (www. eiu. com): e-

15 e- Political factors • Political factor: political propositions in different country’s which restrict internet uses as the basis of e-B & e-C • Common political actions: – Promoting the benefit of adopting internet to improve country’s economic prosperity – Sponsorship for R&D of e-B & e-C – Protecting consumer’s privacy – Control taxation – Setting up international body (ex: ICANN, Internet Corporation for Assigned Names and Numbers for standard domain name) • e-Government: the use of internet technologies to provide government service to citizens

16 Technological innovation factors • Technological innovation factors: technological considerations for internet uses as the basis of e-B & e-C • Diffusion-adoption curve e-

4 th week souvenir 17 Task 1: In Indonesia, what are the micro & macro factors which have critical impact on e-B & e-C implementation? Do little sampling! Alternative Group Task Theme: Do internet usage survey and analyze the result based on webographics & demographics factors e-