1. :: CHALLENGES & TRENDS
• Uncertainties in the global economy
• Inclusion of China into WTO
• Implementation of AFTA
• Global sourcing for cheaper/higher quality of finished
goods and components
• Impact on new technologies (ICT) in business process
• Information is available at your fingertips
• Consumers taste and preferences are dynamically
changing
• New criteria for international competitiveness : Timely
Delivery Of Service (besides price & quality)
• LATEST! : Post-War Iraq, SARS Outbreak, Avian
Flu and War on Terrorism
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2. :: Conventional Trade Promotional
Activities
• Conventional Way
Participation in general/specialised trade fairs
and exhibitions worldwide
Participation in Trade and Investment Missions
Participation in Specialised Selling Missions
Participation in Malaysian Products Exhibition /
In-Store Promotion / Promotion Booths
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3. ::
NEW WAY (e-way)
E-COMMERCE
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4. :: WHAT IS e-COMMERCE?
• Abbreviation of “electronic commerce”
• Putting “e” into all commerce activities
• “The use of computers and electronic
network to do business”
• Transacting Online – “buying and selling of
goods/services via the Internet”
• “Business transactions conducted
electronically”
• “Electronic exchange of information, goods,
services & payments”
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5. :: BROADER DEFINITION
• WTO’s Definition
“All commercial transactions involving the
transfer of information, products, services or
payments performed through
telecommunication networks, using electronic
means. It comprises indirect e-commerce
(electronic ordering of tangibles) and direct e-
commerce (online delivery of intangibles).”
SOURCE : World Trade Organisation (www.wto.org)
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6. :: BROADER DEFINITION
• ITC’s Definition
The distribution, marketing and sale or
delivery of goods and services by electronic
means including business-to-consumer (B2C)
and business-to-business (B2B) transactions.
It is not confined to the purchase of a
product but it includes all information or
services that a company may offer to its
customers over the Internet from pre-
purchase information to after-sales service
and support.”
SOURCE : International Trade Centre, WTO/UNCTAD (www.intracen.org)
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7. :: UNDERSTANDING THE CONCEPT
“All forms of business transactions conducted
over public and private networks”
SOURCE : Inter-Agency Task Force On e-Commerce, The Government Of Malaysia
• Electronic trading of goods • Electronic procurement
& services
• Collaborative designs
• Online delivery of digital
• Engineering &
content
manufacturing
• Electronic funds transfer
• Online sourcing
• Electronic share trading
• Direct consumer
• Electronic bills of lading marketing
• Commercial auctions • After sales services
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8. :: UNDERSTANDING THE CONCEPT
• e-Commerce is:
NOT just about the Internet
NOT just about paying online
NOT entail actual payment online
NOT necessarily done over the Internet
• “electronic” medium:
Telephone (e.g. phone banking)
Private network (e.g. ATM)
Credit cards
The Internet itself!
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9. :: e-COMMERCE vs e-BUSINESS
• e-Commerce defined:
The process of buying and selling goods or
services through the Internet (ICT as intermediary
or enabler) or other electronic network.
• e-Business defined:
The utilization of ICT and Internet-based
applications in existing business
processes, business strategies and business value-
chain. It influences all aspects of company's
strategy and business transactions, hence helping
streamlining operations and improve profits while
ensuring a sustainable competitive advantage.
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10. :: e-COMMERCE vs e-BUSINESS
Mathematically,
EB = EC + BI + SCM + CRM + ERP
Where:
EB = e-Business
EC = e-Commerce
BI = Business Intelligence
SCM = Supply Chain Management
CRM = Customer Relationship Management
ERP = Enterprise Resource Planning
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11. :: e-COMMERCE vs e-BUSINESS
E-BUSINESS
SUPPLY-CHAIN
E-COMMERCE MANAGEMENT
ENTERPRISE
RESOURCE
PLANNING
CUSTOMER
BUSINESS RELATIONSHIP
INTELLIGENCE MANAGEMENT
SOURCE : Strauss, J & Frost, R (2001), eMarketing
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12. :: NEW WAYS TO DO BUSINESS
• Emergence of new business intermediaries
(portals, B2B e-marketplaces)
• “Old Economy” VS “New Economy”,
i.e. “brick & mortar” VS “virtual enterprises”
• Information is available immediately
• Expand existing market & access new markets
• Customise clients’ requirements (add value)
• More services are web-enabled (travel, banking,
health, etc.)
THUS, e-Commerce redefines criteria for
international competitiveness :
Price, Quality, Time and Service
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13. :: IN THE BUSINESS
E-Commerce is applicable in external & internal
aspects of the business:
• EXTERNAL – Facilitate marketing activities and
widen the business prospects through:
Customers/clients (e-mail)
Supplier/distributor/agents (portals, e-marketplace)
Government (e-procurement)
Electronic transaction (e-banking, auction, etc)
• INTERNAL – Effective information management:
Business information (marketing, intelligence)
Financial information (integration & control)
Stock/inventory control (database)
Efficient production (ERP, CRM systems, etc)
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15. :: BEAUTY OF e-COMMERCE
• “24-7-365” factor
• Worldwide reach-out in real time
• Make the size of a company irrelevant
• Make the location of a company irrelevant
• Do most business transactions online : E-
Banking, E-Payment, E-Procurement etc.
• Increase customer feedback towards
faster and better business decision
making
• Lower cost of transaction
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16. :: A COMPARISON
CONVENTIONAL E-COMMERCE
• Limited coverage • 24 hours daily, all over the
world
• High advertising cost
• Low advertising cost
• High traveling &
accommodation costs • Save on first time business
traveling costs
• High postage cost
• Lower costs using
• High cost of exhibiting
computers/Internet
• Slow communication
• Low cost for Virtual Exhibition
process
• Direct contact to
• Wide marketing coverage
importers/buyers
• Longer marketing channel
• Flexible wide marketing
• Low profit margin coverage
• High profit margin
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17. :: TOOLS FOR TRADE
• E-Commerce Site
Website with e-commerce facilities (B2C) -
online catalogues, payment gateway, shopping
cart, e-forms
• Electronic mail (E-Mail)
Communicating through the net, e-mail
marketing, mailing lists
• Electronic Data Interchange (EDI)
Customs declaration, inventory
control, logistics, warehousing, ports
clearance, shipping/vessel tracking
• Electronic Funds Transfer & Payment
EFTPOS, e-Cash, Online Letter of Credit, etc
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18. :: TOOLS FOR TRADE
• Participation in Trade portals / e-
marketplaces / business exchanges
Business-To Business (B2B)
Business-To-Consumer (B2C)
• Web-based Directories/Listing
Trade/Industry Associations
Online Business Directories
• Global sourcing/supply chain management
TiGER, RosettaNet, virtual manufacturing
• Participation in Virtual Trade Fairs / Shows
/ Exhibitions
Cost effective, impressive images
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19. :: POTENTIAL OF E-COMMERCE
• Global e-Commerce revenue has been forecasted to
RM17.5 trillion in 2005
Business-To-Business (B2B) – RM16.4 trillion
Business-To-Consumers (B2C) – RM1.1 trillion
• Total revenue from e-Commerce activities in
Malaysia will be RM35.3 billion in 2005
Business-To-Business (B2B) - RM29.6 billion
Business-To-Consumers (B2C) – RM5.7 billion
SUMBER : International Data Corporation (IDC)
• Total Internet users:
Worldwide – 655 million (2002), 941 million (2005)
Malaysia – 5.7 million (2002), 8 million (2005)
SUMBER : E-Commerce & Development Report 2002 by UNCTAD, UN
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20. :: ROUND THE GLOBE
• Countries which are actively using
e-commerce:
ASIA PACIFIC : Hong Kong, Japan, Taiwan, South
Korea, China
NORTH AMERICA: USA & Canada
WESTERN EUROPE : Germany, UK, France & Holland
• High potential to use e-Commerce:
WEST ASIA: UAE, Iran, Qatar
South Africa
Eastern Europe
AMERICA LATIN : Argentina,
Brazil, Mexico, Chile
SOURCE : TC MATRADE
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21. :: MALAYSIAN EXPORTERS
INTERNET PENETRATION AND CONNECTIVITY
Malaysian Exporters Breakdown By E-Mail/Website
FACILITIES TOTAL % OF TOTAL
WITH E-MAIL 6,069 86.96
WITH WEBSITE 4,253 60.94
WITH E-MAIL AND 4,100 58.75
WEBSITE
EXPORTERS REGISTERED 7,027 100
WITH MATRADE
:: Information correct as at 1 October 2003
SOURCE : MATRADE
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22. :: SOME RELEVANT ISSUES
• SECURITY : Always be The Reason
• COST : Many companies put very conservative
approach and skeptical consideration
• TECHNOLGICAL KNOW-HOW : How to choose
the best solutions / service providers for my
company?
• KNOWLEDGE : Lack of relevant knowledge as e-
commerce develops rapidly
• MINDSET : e-Commerce is “owned” by the
(Gen-X, Gen-Y, etc..) guys… “wiser” /
“experienced” people always left out
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23. :: E-COMMERCE INCENTIVES
• SMIDEC’s financial assistance programs
e-Manufacturing Grant
E-Commerce Grant (DISCONTINUED WEF 27
JUNE 2002)
RosettaNet Grant
• Double deduction incentive for
promotion of exports:
Participation in Virtual Trade Shows
Participation in trade portals for promotion
of local products
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24. :: MORE INCENTIVES...
• Tax on income derived from offshore trading
(buying and selling of foreign goods to non-
residents) through websites was reduced from
28% to 10% for a period of 5 years, effective
from 20th October 2001
• The costs of developing websites for business
are allowed as an annual deduction of 20% for
income tax purpose for 5 years, effective from
year assessment 2002
• Market Development Grant (MATRADE)
50% matching grant up to RM60,000 for the cost of
promotion/advertising through the Internet
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25. :: SEARCH ENGINES
• Web Directories
About.com (www.about.com)
Ask Jeeves (www.ask.com)
Look Smart (www.looksmart.com)
• Leading Search Engines
Google (www.google.com)
Teoma (www.teoma.com)
Inktomi (www.inktomi.com)
• Meta Search Engines
Vivisimo (www.vivisimo.com)
Metacrawler (www.metacrawler.com)
• Search Engines Guides & Directories
Search Engine Watch (www.searchenginewatch.com)
Search Engine Guide (www.searchengineguide.com)
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26. :: BUSINESS INFORMATION GATEWAYS
• Directory listings of business-related sites,
compiled by business information specialists
• Some useful sites
Datamonitor (www.datamonitor.com)
Economist Intelligence Unit (www.eiu.com)
Euromonitor (www.euromonitor.com)
ITC Product Maps (www.p-maps.org)
Market Research (www.marketresearch.com)
Mindbranch (www.mindbranch.com)
Business.Com (www.business.com)
ExportAll.Com (www.exportall.com
Yellow Pages (www.yellowpages.com)
The Edge Daily (www.theedgadaily.com)
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27. :: OTHERS
• Malaysian Government Sites
Malaysian Civil Service Link (mcsl.mampu.gov.my)
e-Perolehan (www.eperolehan.com.my)
MITI (www.miti.gov.my)
• Trade-related organisations
World Trade Organisation (www.wto.org)
International Trade Centre (www.intracen.org)
Federation Of International Trade Associations
(www.fita.org)
• E-Commerce-related
E-Commerce/IT news (malaysia.cnet.com,
www.ecommercetimes.com)
RosettaNet (www.rosettanet.org.my)
B2Business (www.b2business.net)
Building a website (www.sellitontheweb.com)
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28. :: Conclusion
The Best Way…..
Conventional Way
+
e-Way
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