Introduction

There are many benefits of bringing business to the Web. An e-business can offer
personalized service, high-quality customer service, and improved supply chain-management.
E-business refers to a broader definition of e-commerce, not just buying and selling goods and
services, but also servicing customers, collaborating with business partners, conducting e-
learning, and processing electronic transactions.

E-businesses utilize the internet, intranets, extranets and other networks to support their
commercial processes. Electronic commerce (e-commerce) is the buying and selling,
marketing and servicing of products and services via computer networks. Since e-business
includes the process of transacting with suppliers and customers there is an overlap in
activities with e-commerce.

Major Benefits of E-Business

 Global Reach
 Reduced Cost
 Convenience
 Higher productivity and Efficiency
Company Introduction

Panjang Selatan was established in 2012 and has been active in the field of engineering of
industrial projects.

Panjang Selatan has been providing professional engineering and technical support services
to few top industries such as Malaysia Marine and Heavy Industries (MMHE), Lafarge
Cement Industries and others.

The company has experience in the delivery of professional engineering and related
technical services and can be summarized as follows:

 Relatively small firm (of less than 5 employees) committed to the delivery of
exceptional engineering services.
 A group of like-minded, enthusiastic and extremely well-trained individuals committed
to giving their best.
 Company involved in projects as small as can be imagined and other projects much
larger than can expected from a firm of size. A complete confidence in abilities
limitations and collaborate with larger engineering colleagues when required.

Gradually, the activities approached for the oil, gas, petrochemical, and power industries and
project association with few leading companies. Now Panjang Selatan is qualified company
in project management, engineering, procurement, construction and maintenance not only
for oil, gas, and petrochemical industries, but also for other industries such as power and
chemical plants.
Problem Faced by Panjang Selatan

1. Business Partners database and collaboration records

2. The SME applications, services, professional skills are not properly managed – the
professionalism involvement in the process and strategy.
3. Material purchasing and outsourcing.
4. Customers reach through marketing- old traditional way.
5. Less customers feedback, less communication with end user and after sales support
6. Unable to compete with current high end competitor
7. Competitors are ready with project knowledge and person incharge.
8. Traditional way for invoicing, purchase order, B2B not exist at all.
9. Record keepings are not properly managed.
10. Less email conversation.

…
Panjang Selatan ebusiness model case study

Making the decision to change from traditional business methods to ebusiness is a big step,
but one that can lead to tremendous business growth if handled properly. While many of
business processes and operations may remain the same, there are certain things need to
consider if business is to make a successful transition.

Panjang Selatan find the shift from the high overhead costs of running a traditional business
to the much lower expenses involved in running an ebusiness to be reason enough to make
the change.

Below are the key issue and elements for Company like Panjang Selatan for kick start in
ebusiness ventures.

Choice
of focal
Generic custome Target
Strategy r
Segment

Custome
PANJANG SELATAN
r
Ebusiness Models Revenue
Decision
Process Models

Product
and Logistic
Services Resourc and
Content es and Delivery
Capabilit Systems
ies

 Choice of focal Customer

 Generic Strategy
 Customer Decision Process
 Revenue Models
 Financial Growth Models
 Product or Service Contents
 Resources and Capabilities
Implementation and Challenges

As organizations craft and develop e-business strategy, a few critical concepts offer guidance
towards the organization becoming an open system. Open systems allow interactions
between an organization's internal elements and the environment. The challenge posed by
the environment, and trading market requires that, the organizations utilize all the resource
they have in the right mix at the right time, every time. This concept is clearly demonstrated
by the resource-based view as a basis for competitive advantage of a firm that lies primarily
in the application of the bundle of valuable interchange between the intangible and tangible
resources at the firm's disposal.

Business strategy and priorities must guide IT investment decisions.

IT Budget should channel funds toward critical areas – e.g., growth of market share,
increased revenues and overall competitiveness.

IT leaders should work from the same agenda as their business counterparts.

IT leaders must understand the fundamentals of business – to make decisions based on real
measures of business value, not politics or pet projects.

The Common challenges are:

 Technical infrastructure
 Logistic and Geopolitical Status
 In-market customer Support
 Companies that partner with world-class vendors who have a thorough
understanding of the markets’ cultures, politics and customer expectations can win
big, year after year.

Strategy Analysis for ebusiness model implementation.

 Strengths
 Opportunities
 Threats
 Competition
 Weakness
 Partners
 Business Objectives
 Risks
TRADITIONAL METHOD

INVOICING / PURCHASE ORDER

TRADITIONAL METHOD
PAYMENT TRACKING
FILING

APPOINTMENT REMINDER

INVENTORY / STOCK MGMT

Disadvantages
- Not having proper filing systems
- Unable to retrieve database clients immediately
- Debtors aging and payment monitoring – hardcopy
- Lacking in Monitoring material purchasing and stocks – not proper (Par Level)
EBUSINESS SOLUTIONS
ONLINE

REMINDER / CLIENT
APPT
DATABASE
SYSTEM
RECORDS
ONLINE
PURCHASE

ORDER

ONLINE ONLINE
PAYMENT
BUSINESS TRACKING

MANAGEMENT
SYSTEMS

ONLINE
INVOICING
SYSTEMS
ONLINE

INVENTORY

SYSTEMS
ONLINE

INVENTORY

STOK
MNAGEMENT
Draft System (Online Payment Tracking System)
Draft System (Purchase Order and Invoice)
Draft System (Stock Management)
Draft System (Reports Database Clients)
Draft System (Tracking)
ROI FOR 5 YEARS
Appendix