Tour IV : e-Environment E. Widodo

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

Contents Social factors Legal & ethical factors Economic and competitive factors Political factors Technological innovation

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

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

Percentage of internet access

Variation in demographic chars of UK internet users

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.

Psychographic segmentation (www.netpoll.net)

Online demand profile B2B is more complex than B2C in terms of: Variation in organization characteristics: Company size Industry sector Organization type Division Country and region Individual role of the B2B executor: Job responsibility Role in buying decision Department Product interest Demographics

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

Privacy and trust (Chaffey, 2000) Collection and holding personal information Cookies: small text (electronic tag) stored on end user PCs to enable online business system identify them Disclosing personal information to 3rd party 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

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

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):

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

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

4th week souvenir 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