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The Importance Of Implementing E-Business For The Development Of Companies In This Digital Era

13 May 2022

BACKGROUND

The application of e-business in the digital era is said to be important because as we all know the use of increasingly advanced technology will be increasingly needed, including in the business world. This is what led to the emergence of the concept of e-business with the background of the IBM company which saw the rapid growth of the internet which began in the mid-1990s as a golden opportunity to be able to overcome the financial crisis experienced at that time and finally began scheduling to make the internet a tool business-to-business which is certainly useful and that is what became the forerunner of the birth of e-business. E-Business itself is a business or business activity that is carried out automatically and semi-automatically using electronic technology. So it is important for companies to learn and immediately implement them into their business, because the goals and objectives of implementing e-business itself is to support the efficiency and integrity of data processing on human resources, finance, supply chain management / logistics management. And also serves as a means of communication and information for the public and other stakeholders based on the internet and can be accessed anywhere.

 

LITERATURE

What is E-BUSINESS?

E-Business is an activity that does not only focus on buying and selling of goods and services, but also serving customers, collaborating with business partners, conducting e-learning, and conducting electronic transactions within an organization, so it can be concluded that e-business covers a very wide area, in contrast to E-commerce which is only a small part of e-business. And the term e-business itself was first introduced by Lou Gerstner, CEO of IBM Company in 1997 who at that time used the concept of e-business to solve their financial crisis. As for many of the experts who gave their opinion about the definition of e-business, among others: according to Turban (2008), according to him E-Business has a broader meaning than E-Commerce, which is not just selling and buying products or services, but serving customers, collaboration between business partners, and doing electronic transaction business. And according to Bantley & Whitten (2007), E-Business is a form of activity that arises from the use of the internet in managing and supporting business activities in a company every day. So, from these definitions, we can discuss more deeply about everything related to e-business, for example in my discussion I will analyze the application of e-business at PT. SMART, Tbk

RESULT and DISCUSSION

E-Business Models

Starting from the E-Business model, where basically when viewed from its type E-business is divided into 2 general categories, namely B-to-B and B-to-C. Where the principle of this division is based on the type of institution or community that carries out transactions two directions. And in its development, the e-business model has become several models,including:

Business to Business (B2B)

an electronic transaction between one business object and another (inter-company transaction), where the transaction uses EDI (Electronic Data Interchange) and e-mail for the purchase of goods and services, information and consultation.

-Business to Consumer (B2C)

a business activity that provides direct services to consumers through goods / services, so that sellers can interact with their customers. Where sales can be made on the internet and direct orders made by consumers by looking at the price (which is already listed).

– C2B (Consumer to Business)

complete reversal of traditional exchange (buying and selling) transactions, which include individuals selling products or services to organizations, as well as individuals looking for sellers, interacting with these sellers, and making transactions.

– C2C (Consumer to Consumer)

business communication systems between business actors or transactions between consumers to meet certain needs and at certain times, this C2C model has also been widely used in Indonesia.

-Business to Government (B2G)

Letter of interaction occurs between the organization and the government. Where B2G can be grouped into B2B because it has the same characteristics as B2B and is a derivative of B2B which is often referred to as public sector marketing which includes marketing products and services for various levels of government, state and local through integrated marketing communications.

– G2B (Goverment to Business)

a form of collaboration between the government and business actors / business departments through online interaction.

– G2G (Government to Governments)

an online communication and exchange of information between departments or government agencies through an integrated database.

Where at PT. SMART, Tbk, the e-business model used is Business to Consumer (B2C). Where this B2C model can bridge activities between PT. SMART, Tbk- with consumers and other interested parties (among others: investors, even job seekers). And one of the ways taken to implement the e-business model is by utilizing network and communication media through the provision of websites about companies on the internet that can be accessed by anyone at any time, namely (www.smart-tbk. Com). Where the application of this site is related to the company’s image and can be a way to better introduce both the product and the company itself to the public, (which is a form of e-business in terms of promotion). And on this site there are several items that can be used by interested parties, including: items for customers (providing various products that can be consumed by consumers), Items for Investors (annual report information, information for shareholders, etc.), Items for Job Seekers (providing information about job opportunities), and Item Product Recipes (pampering consumers by providing several recipes)

 

E-Business Implementation

In implementing its e-business, PT.SMART applies a concept or strategy ,which inludes :Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), Enterprise Application Programs (EAI), and Supply Chain Management (SCM).

-Customer Relationship Management (CRM)

Is a service and software business strategy designed to increase consumer profits and satisfaction, the goal of Customer Relationship Management itself for PT SMART is to promote and maintain relationships between customers and management and make it easier to obtain information to be shared with the company’s business partners.

Where actually PT SMART itself has used the CRM application through its facilities provided by SAP, and in the sales and distribution module customer data can be processed in such a way and know all consumer behavior towards product purchases and there is also customer identity recorded in the system so that it can make it easier for PT. SMART to build good relationships with customers.

-Enterprise Resource Planning (ERP)

a business strategy of a company information system that can be used to coordinate the resources and information used for business processes. The ERP issued by SAP includes all information systems for companies at PT SMART. So that PT SMART has implemented ERP in a well-executed and well-integrated business flow in its business continuity.

-Supply Chain Management (SCM)

is a management strategy regarding the supply chain that will be computerized itself automatically. Where there are various SAP modules that PT.SMART uses to support their SCM, including: inventory management and production planning modules and cover various processes such as inventory management and physical inventory and production planning and control.

Where this SCM module will greatly assist PT.SMART in managing the flow of material from supplier to factory or from factory to distributor and there is also a sales and distribution module that focuses on managing downstream supply chains.

-Enterprise Application Programs (EAI)

is a business strategy regarding the concept of integration of business processes which allows companies to exchange information. PT.SMART implements EAI with the aim of making it easier for them to exchange information with other companies that partner with them.

 

Benefit and Advantage of E-Business

Here are some of the benefits as well as the advantages of the many benefits and advantages that are obtained from the application of E-Business at PT. SMART, Tbk, among others:

– With the use of this e-business model, namely by implementing a website by PT.SMART, it has made the company better known among the public which in turn can expand the company’s market share which leads to an increase in the company’s image in the eyes of the market.

– The enhancement of PT.SMART’s image can also have an impact on opening up opportunities to acquire other investors and also increase the confidence of old investors.

– The emergence of consumer loyalty towards products that has an impact on increasing PT.SMART’s income through the domino effect of promotions conducted through the website.

– Can convey various information to all interested parties quickly, precisely and efficiently.

-Can make it easy for PT.SMART in recruiting employees.

 

Lack of E-Business

In addition to the many benefits and advantages received from implementing e-business at PT.SMART, there are still some disadvantages, including:

-no direct meeting with consumers or vice versa

– And what is of course PT.SMART’s full attention is the large risk of fraud caused by the absence of this in-person meeting. Therefore, the implementation of e-business needs to be prepared very carefully, especially for new businessmen so as not to fail in implementing e-business in their business.

Evidence of the successful application of E-Business in the development of PT.SMART, Tbk

The title above which states that the implementation of e-business has an important role for companies in this digital era, as evidenced by the results of the analysis of the application of e-business at PT. SMART, Tbk. So that PT. SMART, Tbk is one of the many evidences of the successful implementation of e-business in the company. Where if we look at the comparison of financial statements before the implementation of e-business in 2004 and in 2005 after the implementation of e-business (by opening their website). If viewed from the profits obtained, in 2004 the company received an operating profit award of Rp. 283,395,386,692, then in 2005 the operating profit increased to Rp. 424,969,872,324. The benefits from implementing this e-business can also contribute to a certain increase in the profit business of IDR 141,574,485,632.

And it can also be seen from the graph above, it can be seen that from year to year the operating profit achieved by PT. SMART, Tbk continues to increase. Where, in 2006, the increase in operating profit was close to 1.5 times the increase in the previous year. Meanwhile, the highest cost occurred in 2005. This is due to the cost of organizing e-business (website) which includes the cost of the new technology infrastructure used. However, with the large profit that is obtained because PT.SMART itself is a large manufacturing company, so that these costs do not cause loss to the company and also in the following year these costs go down again, because they do not require production costs anymore, but only operational costs. So, it can be concluded that even though e-business is very beneficial, it must still be considered that the large costs that need to be spent, especially this is a concern and very thorough preparation for small or medium companies that are looking to expand their business because if they experience a failure it will cause losses to their business.

SUMMARY/CLOSING

So that through the matters regarding e-business that have been discussed above with PT.SMART, Tbk as the object of discussion, it can be concluded that with technological advances in the current era e-business is one way that we can use to improve the business of a company. In addition, various business needs such as facilitating company performance, improving quality, expanding the company’s market share, and saving costs can be fulfilled. Therefore, if a company, especially a large company, does not implement e-business, it will feel burdened by this increasingly global market era, but companies should also not rush in implementing e-business, especially for small or medium-sized companies that are just starting out. starting a business, this is because the costs incurred are quite large so that if the preparation is not done carefully it will only result in losses to the company.

 

REFERENCES

BACKGROUND

Article Source:

Flora Novianti Wongso