EBusiness

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E-Business E-Commerce

• Prepared By
• Goh Sheong Shen

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What Is E-Business?

• Conduct business on the Internet
• Buying and selling products
• Provide services to customers
• Collaborating with partners or suppliers

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Why Shop Online?

• Shop/Make purchases at anytime
• Simple, click and go
• Price comparison
• Save time
• Almost everything that can be sold is available

EXAMPLE...
Amazon.com http//www.amazon.com Yahoo!
Shopping http//shopping.yahoo.com
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General Benefits of E-Business

• Business running 24 x 7
• Reduce costs
• Reduce time
• Flexibility with efficiency
• Enhanced relationship with suppliers
• Lock in customers
• New and wider market or audience

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E-Commerce Statistics

• Number of Americans buying online will be nearly
  double from 64.1 million as of year 2000 to130
  million by 2005.
• 1 in 11 European adults used the Internet to make
  online purchase in the first quarter of 2001.
• US retail sales on the third quarter 2002
  e-commerce estimate increased 7.8 percent (1.5)
  from the second quarter of 2002.

FOR MORE INFO...
Census Bureau http//www.census.gov
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Estimated Development Costs

• Programmer RM 5000
• Analyst RM 6000
• Designer RM 4000
• Staff Training RM 5000
• Total Development Cost 20000

FOR MORE INFO...
Domain Registration http//www.directnic.com Web
Hosting - http//www.webserver.com.my
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Estimated Annual Operation Costs

• Domain Registration RM 55
• Web Hosting RM 790
• Maintenance RM 3000
• Internet Services RM 1000
• Total Annual Operation Cost RM 4845

NOTES...
May increase on usage of the services or on
demand.
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Expected Benefits

• Business is running 24 hours a day 7 days a week
• Reduce costs on human resources and papers
• Reduce time by manually process orders
• Better inventory control
• Improve customer experience
• Get new customers and new audiences
• Computerised system improve productivity and
  efficiency
• All these benefits will bring the business
  profits

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Payback Analysis

• Expected Development Expenses RM 20000
• Expected Operational Expenses Year 1 RM 4845
• Expected Operational Expenses Year 2 RM 5055
• Expected Operational Expenses Year 3 RM 5500
• Expected Profit Year 1 RM 10000
• Expected Profit Year 2 RM 12550 (25.5)
• Expected Profit Year 3 RM 16000 (27.5)

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Final Words

• New generation e-Commerce.
• Highly demanded
• Advantages more than disadvantages
• After period of payback could gain extreme
  profits

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Thank You