Understanding of Accounting According to Experts
Understanding of Accounting According to Experts Complete With Its History: Accounting is a process of recording, classifying, summarizing, processing and presenting data, transactions and in events related to finance. Accounting is a process of recording, classifying, summarizing, processing and presenting data, transactions and in financial-related events that can be used by people who use them easily understood in making a decision and other objectives.
Understanding of Accounting in General
Accounting is often referred to as a business language, or more accurately, the language of decision making. The more someone masters this language, the better the person will handle various aspects of finance in his life. The definition of accounting can be formulated through 2 (two) points of view, namely the definition from the point of view of the users of accounting services and the definition from the perspective of the process of its activities.
From the point of view of users of accounting services, accounting can be defined as a scientific discipline and / or service activity that provides information needed to carry out activities efficiently and evaluate the activities of an entity or financial transactions. The usefulness of accounting information is to:
Make effective planning, as well as supervise, and make appropriate economic decisions by management
The responsibility of the entity to investors, creditors, the government, and so on.
If viewed from the perspective of the process of its activities, accounting can be defined as the process of recording, classifying, summarizing, reporting and analyzing the financial data of an entity. From this it can be seen, that accounting is a complex activity, involving a variety of activities, so basically accounting must:
Identify which data is relevant or relevant to the decision to be taken,
Process or analyze relevant data,
Turn data into information that can be used for decision making.
From the above definition, we can simply explain that accounting can produce information that is used by managers to carry out company operations. Accounting also provides information to interested parties to find out the financial performance and condition of the company.
Understanding of Accounting According to Experts
Here Is An Understanding Of Accounting According To Experts.
1. ABP Statement No. 4 in Smith Skousen (1995: 3)
Defining Accounting is a service activity which is to provide quantitative information, especially those that have the nature of making economic decisions in making decisions that are logical choices among various alternative actions.
2. American Accountants Association
States that accounting is a piece, estimation, and reporting of financial data, which allows an assessment and choice to make clear and decisive for individuals who utilize data.
3. Frederich D.S. Choi, Gerhard G. Mueller
Accounting is a process of identifying, measuring and communicating economic information to enable users to make judgments and decisions.
4. Soemarsono S.R (2004)
Accounting is the process of identifying, measuring and reporting economic information to enable clear and explicit assessments and decisions for those who use that information.
5. S. Munawir (2005)
Accounting is an art rather than recording, classifying and summarizing events and events and at least financial nature in the most expeditious manner and as directions or expressed in money, as well as interpreting the things that arise from it.
6. Henry Simamora (2005)
Accounting is the process of measuring the economic activity of an entity in units of money and communicating the results to interested parties.
7. Sofyan Harahap (2005)
Accounting is as a process of identifying, measuring, and conveying economic information as information material in terms of considering various alternatives in drawing conclusions by the users.1
8. Zaki Baridwan (2000)
Accounting is a service activity, its function is to provide quantitative data, mainly those of a financial nature, from economic ventures that can be used in making economic decisions in having alternatives in a situation.
9. Suparwoto L
Accounting is as a technique or system for measuring and managing financial transactions and presenting the results of management in the form of information to internal and external parties of the company. External parties include investors, creditors, governments, trade unions and so forth.
10. Paul Grady
Accounting is as a body of knowledge and organizational functions systematically, authentic and original in recording, classifying, processing, making summaries, analyzing, interpreting all transactions and events and financial characteristics that occur in the operations of accounting entities with the aim of providing meaningful information needed by management as a report and accountability for the trust it receives.
11. Mulyadi
Accounting functions as a tool to record and present financial reports to facilitate management in managing the company.
12. Littleton (Muhammad, 2002: 10)
Accounting is a comparative calculation of the costs incurred as a business with the achievement of results that are the achievements of the business.
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Definition and Stages of Production Management
Definition and Stages of Production Management
Production Management - Definition, Stages, Planning, Control, Supervision, Factors, Functions, Purposes, Experts: Production management is an effective planning process and organizes operations on the part that is responsible for the transformation from raw materials to finished products of the company.
"Production Management" Definition & (Stages - Supporting Factors)
Definition of Production Management
Before knowing what production management is, we need to remember the terms of production. In KBBI, Production means the process of issuing outputs, income, results and manufacturing. The word which is closely related to production is product which is the term for the result of a production.
If we combine it with management's understanding, this means that production management can mean the task of coordinating and controlling the activities needed to make a product more effectively from various aspects.
And whereas according to the experts namely Mr. E.L. Brech, production management is an effective planning process and organizes operations on the part that is responsible for the transformation from raw materials to finished products of the company. So we can conclude that production management is the practice of coordinating, directing and supervising the making of goods to be more effective, especially in terms of cost and time.
Understanding Production Management According to Experts
Here are a few definitions of Production Management:
By Agus Ahyari
Is a process of activities for planning, organizing, directing, coordinating the production and production processes.
By Sukanto
Is an effort to manage in an optimal way against the factors of production or.
Stages in Production Management
To get production results that match our targets, we must go through several stages, from planning to execution. If one of these stages is passed, our production results cannot be maximized and will affect the company's survival. The following are the stages of production management, namely:
Production Planning
At this initial stage the entire production plan is discussed, how the future production will be. In this stage also every team member can submit new product ideas that are relevant and effective to realize the goals of the organization. This production planning must determine several things in the process. These are the types of goods to be produced, how the quality of goods, how many goods, from which raw materials and how to control production.
Production Control
The production plan that was made earlier needs to be implemented. Now to go according to the plan, we need to control or control the production process. This process can also be called the process of determining technical details.
Some things done in the control of production such as setting work schedules, setting detailed work system plans and so forth. The purpose of this production control stage is to control production output so that it can run effectively and efficiently.
Production Supervision
During the production process, supervision must be carried out. The goal is that the resulting production is as expected, ontime does not lack or excess budget, the product is in accordance with quality standards and so on until the part is ready to be launched to the market.
Supporting Factors of Production Management
Production management that has been carried out can develop well by being influenced by two factors. The first factor is division of labor or the right division of tasks. To achieve quality products, the right division of labor can help production be more effective and efficient while maintaining goodness.
The second factor is conducting an industrial revolution, what is an industrial revolution ?? in the context of the production management of the industrial revolution in question is the replacement of human labor with machines or robots in the production process.
That way the production target can be achieved and also employees will try to improve their expertise in order to compete. Unfortunately this industrial revolution cannot be used by small businesses that still use traditional methods. The following industrial revolution can be seen through several aspects including:
The use of machines is increasing.
The efficiency of coal production as fuel, and iron and steel as the main ingredients.
Infrastructure development is increasingly developing, such as railway lines, transportation equipment, communication networks and adequate electricity supply.
Expansion of the banking and credit system to reach local communities who need capital to develop their production.
By utilizing these factors, the growth resulting from production management will be more rapid. In addition, the production management process will also be helped.
Production Management Function
The most basic function of production management, namely the existence of planning, organizing, placement of Human Resources, (staffing), providing motivation and the last function is the activity of supervision that absolutely must be carried out by every organization or company.
Production management is a management process that is applied in the production field. The production management process is a combination of all aspects consisting of products, factories, processes, programs and people. The terms that can be used in production management are, products, producers, productivity, production processes, production systems, production planning, and company wide.
The purpose of Production Management
The aim of Production Management is to produce or regulate the production of goods and services in quantity, quality, price, time and place according to the needs. Production management is a process of activities to carry out activities: planning, planning, organizing, directing (directing), controlling (controling) of the production process. In addition, production management is also defined as a business management in an optimal way against factors of production or sources such as humans, labor, machinery and existing raw materials.
Production planning activities as: one part of production management really determines how a production runs. The purpose of production planning must be firm, clear and easy to understand. Planning often has to change, so planning must be flexible and open to change when needed. This flexible nature causes the implementation of its activities to be monitored and controlled continuously in accordance with existing conditions, but planning must remain on the goals set.
Production Management - Definition, Stages, Planning, Control, Supervision, Factors, Functions, Purposes, Experts: Production management is an effective planning process and organizes operations on the part that is responsible for the transformation from raw materials to finished products of the company.
"Production Management" Definition & (Stages - Supporting Factors)
Definition of Production Management
Before knowing what production management is, we need to remember the terms of production. In KBBI, Production means the process of issuing outputs, income, results and manufacturing. The word which is closely related to production is product which is the term for the result of a production.
If we combine it with management's understanding, this means that production management can mean the task of coordinating and controlling the activities needed to make a product more effectively from various aspects.
And whereas according to the experts namely Mr. E.L. Brech, production management is an effective planning process and organizes operations on the part that is responsible for the transformation from raw materials to finished products of the company. So we can conclude that production management is the practice of coordinating, directing and supervising the making of goods to be more effective, especially in terms of cost and time.
Understanding Production Management According to Experts
Here are a few definitions of Production Management:
By Agus Ahyari
Is a process of activities for planning, organizing, directing, coordinating the production and production processes.
By Sukanto
Is an effort to manage in an optimal way against the factors of production or.
Stages in Production Management
To get production results that match our targets, we must go through several stages, from planning to execution. If one of these stages is passed, our production results cannot be maximized and will affect the company's survival. The following are the stages of production management, namely:
Production Planning
At this initial stage the entire production plan is discussed, how the future production will be. In this stage also every team member can submit new product ideas that are relevant and effective to realize the goals of the organization. This production planning must determine several things in the process. These are the types of goods to be produced, how the quality of goods, how many goods, from which raw materials and how to control production.
Production Control
The production plan that was made earlier needs to be implemented. Now to go according to the plan, we need to control or control the production process. This process can also be called the process of determining technical details.
Some things done in the control of production such as setting work schedules, setting detailed work system plans and so forth. The purpose of this production control stage is to control production output so that it can run effectively and efficiently.
Production Supervision
During the production process, supervision must be carried out. The goal is that the resulting production is as expected, ontime does not lack or excess budget, the product is in accordance with quality standards and so on until the part is ready to be launched to the market.
Supporting Factors of Production Management
Production management that has been carried out can develop well by being influenced by two factors. The first factor is division of labor or the right division of tasks. To achieve quality products, the right division of labor can help production be more effective and efficient while maintaining goodness.
The second factor is conducting an industrial revolution, what is an industrial revolution ?? in the context of the production management of the industrial revolution in question is the replacement of human labor with machines or robots in the production process.
That way the production target can be achieved and also employees will try to improve their expertise in order to compete. Unfortunately this industrial revolution cannot be used by small businesses that still use traditional methods. The following industrial revolution can be seen through several aspects including:
The use of machines is increasing.
The efficiency of coal production as fuel, and iron and steel as the main ingredients.
Infrastructure development is increasingly developing, such as railway lines, transportation equipment, communication networks and adequate electricity supply.
Expansion of the banking and credit system to reach local communities who need capital to develop their production.
By utilizing these factors, the growth resulting from production management will be more rapid. In addition, the production management process will also be helped.
Production Management Function
The most basic function of production management, namely the existence of planning, organizing, placement of Human Resources, (staffing), providing motivation and the last function is the activity of supervision that absolutely must be carried out by every organization or company.
Production management is a management process that is applied in the production field. The production management process is a combination of all aspects consisting of products, factories, processes, programs and people. The terms that can be used in production management are, products, producers, productivity, production processes, production systems, production planning, and company wide.
The purpose of Production Management
The aim of Production Management is to produce or regulate the production of goods and services in quantity, quality, price, time and place according to the needs. Production management is a process of activities to carry out activities: planning, planning, organizing, directing (directing), controlling (controling) of the production process. In addition, production management is also defined as a business management in an optimal way against factors of production or sources such as humans, labor, machinery and existing raw materials.
Production planning activities as: one part of production management really determines how a production runs. The purpose of production planning must be firm, clear and easy to understand. Planning often has to change, so planning must be flexible and open to change when needed. This flexible nature causes the implementation of its activities to be monitored and controlled continuously in accordance with existing conditions, but planning must remain on the goals set.
Examples of E-Business and E-Commerce
Examples of E-Business and E-Commerce
No less interesting is that by applying the concept of networking (internetworking), a small and medium scale company can easily work with giant companies to offer various products and services to customers. And not infrequently there is also a small-scale company (seen from the number of employees) whose income can exceed medium and large companies because of their effective strategies in implementing e-business. "Unexpectedly", the internet network that was previously only intended for research institutions such as universities turned out to be expanding and expanding its use in business and society. The result is the connection of hundreds of millions of people (and counting) into a network arena that is often referred to as the virtual world (virtual world).
Drivers of E-business
The development of the implementation of the e-business concept is strongly influenced by external driving forces, namely:
Customer Expectations
What is expected by consumers at this time is not enough to be satisfied with the good quality of a product, but customers also expect good pre and post-sale services. The spectrum of services referred to include: ordering can be done anytime, anywhere, and payment for product purchases using a variety of methods such as credit cards, debit cards, and transfer services, and the existence of product insurance facilities and product delivery that is fast and competitive prices, etc. other.
Competitive Imperatives
Globalization has formed a very tight arena of business competition. Customers will easily compare the quality of products and services between companies, this forces the company to develop the right strategy.
Deregulation
Macro-deregulation carried out by the government and other countries (such as APEC, AFTA, WTO) has contributed to the shape of the business world in the future, especially with the concept of free trade between countries and industries. The internet here is considered as an arena where the concept of perfect competition and open markets has taken place, especially products and services that can be digitalized.
Technology
E-business is the advancement of information technology that is dominated by accelerating computer and telecommunications technology. The function of information technology is not only critical for the development of e-business but is also a driver of the possibility of new business models.
Examples of E-Business and E-Commerce
Some examples of e-business today are newspapers or print media that are online-based, so it's not just the print media. Lots of print media run their business not only through print media but also through online media on the internet and of course there are so many benefits that can be obtained, for example: news that can be accessed at any time by the whole community and more updated news etc. Then another example at this time are many fashion shops that not only run their businesses in the real world but they also run their businesses online.
For more details about e-commerce, then here are some examples of e-commerce that are quite popular:
Ebay
Alibaba
Tokopedia
Lazada
Zalora
Shope
OLX
With so many famous websites based on e-commerce, the benefits of online shop for sellers and buyers are felt by almost all people. This certainly has a positive impact on economic development as well.
No less interesting is that by applying the concept of networking (internetworking), a small and medium scale company can easily work with giant companies to offer various products and services to customers. And not infrequently there is also a small-scale company (seen from the number of employees) whose income can exceed medium and large companies because of their effective strategies in implementing e-business. "Unexpectedly", the internet network that was previously only intended for research institutions such as universities turned out to be expanding and expanding its use in business and society. The result is the connection of hundreds of millions of people (and counting) into a network arena that is often referred to as the virtual world (virtual world).
Drivers of E-business
The development of the implementation of the e-business concept is strongly influenced by external driving forces, namely:
Customer Expectations
What is expected by consumers at this time is not enough to be satisfied with the good quality of a product, but customers also expect good pre and post-sale services. The spectrum of services referred to include: ordering can be done anytime, anywhere, and payment for product purchases using a variety of methods such as credit cards, debit cards, and transfer services, and the existence of product insurance facilities and product delivery that is fast and competitive prices, etc. other.
Competitive Imperatives
Globalization has formed a very tight arena of business competition. Customers will easily compare the quality of products and services between companies, this forces the company to develop the right strategy.
Deregulation
Macro-deregulation carried out by the government and other countries (such as APEC, AFTA, WTO) has contributed to the shape of the business world in the future, especially with the concept of free trade between countries and industries. The internet here is considered as an arena where the concept of perfect competition and open markets has taken place, especially products and services that can be digitalized.
Technology
E-business is the advancement of information technology that is dominated by accelerating computer and telecommunications technology. The function of information technology is not only critical for the development of e-business but is also a driver of the possibility of new business models.
Examples of E-Business and E-Commerce
Some examples of e-business today are newspapers or print media that are online-based, so it's not just the print media. Lots of print media run their business not only through print media but also through online media on the internet and of course there are so many benefits that can be obtained, for example: news that can be accessed at any time by the whole community and more updated news etc. Then another example at this time are many fashion shops that not only run their businesses in the real world but they also run their businesses online.
For more details about e-commerce, then here are some examples of e-commerce that are quite popular:
Ebay
Alibaba
Tokopedia
Lazada
Zalora
Shope
OLX
With so many famous websites based on e-commerce, the benefits of online shop for sellers and buyers are felt by almost all people. This certainly has a positive impact on economic development as well.
The Development of the Implementation of the E-business Concept
The Development of the Implementation of the E-business Concept
The Who dimension
Who is involved in e-business? As the definition implies, all parties or entities that interact in a business system or series of business processes are parties who have an interest in the scope of e-business. There are at least seven (A to G) entity classifications that are often used in illustrating e-business, respectively: agent, business, consumer, device, employee, family, and government.
An example is an B-to-C type e-commerce application which is a mechanism of trade relations between a company and its customers (its end consumers); or the type of G-to-G that connects two countries for export and import issues; or D-to-D that connects two advanced information technology equipment such as between a PDA and a cellphone; or B-to-F that connects a company selling household goods with various families; and so forth.
Where dimension
Not a few laymen who questioned where the actual business activities can be done in e-business. The answer is very short and easy, that is, anywhere, as far as the parties concerned have electronic / digital facilities as access channels. In contrast to conventional business where transactions are normally carried out physically around the company concerned, then in e-business, interactions can be carried out through various access channels.
At home, a mother can use the telephone or web-TV to communicate with companies selling products or services; in the office, an employee can use computer or fax equipment; in the car, a student can use his handphone or PDA; in crowded locations such as malls, shops, or markets, people can use ATMs, internet cafes, or telecommunication kiosks (Wartel) to do the same thing. In other words, the term anywhere to make contact with anyone is not just a slogan that is grandiose, but has become a reality in the implementation of e-business.
Dimensions of Why
The final question that often haunts traditional business people is why business practitioners around the world agree to implement e-business as soon as possible as a business model in the future. The effective application of the e-business concept not only benefits the company because of the many high cost components that can be saved (cost cutting), but it also gives the company the opportunity to increase its level of revenue (revenue generation) directly or indirectly.
By implementing e-business, companies can see various opportunities and new business gaps that have never been offered to the public. In addition, it has been proven that many companies have carried out business transformation (changes in core business) after seeing the magnitude of new business opportunities in applying the concept of e-business.
The Who dimension
Who is involved in e-business? As the definition implies, all parties or entities that interact in a business system or series of business processes are parties who have an interest in the scope of e-business. There are at least seven (A to G) entity classifications that are often used in illustrating e-business, respectively: agent, business, consumer, device, employee, family, and government.
An example is an B-to-C type e-commerce application which is a mechanism of trade relations between a company and its customers (its end consumers); or the type of G-to-G that connects two countries for export and import issues; or D-to-D that connects two advanced information technology equipment such as between a PDA and a cellphone; or B-to-F that connects a company selling household goods with various families; and so forth.
Where dimension
Not a few laymen who questioned where the actual business activities can be done in e-business. The answer is very short and easy, that is, anywhere, as far as the parties concerned have electronic / digital facilities as access channels. In contrast to conventional business where transactions are normally carried out physically around the company concerned, then in e-business, interactions can be carried out through various access channels.
At home, a mother can use the telephone or web-TV to communicate with companies selling products or services; in the office, an employee can use computer or fax equipment; in the car, a student can use his handphone or PDA; in crowded locations such as malls, shops, or markets, people can use ATMs, internet cafes, or telecommunication kiosks (Wartel) to do the same thing. In other words, the term anywhere to make contact with anyone is not just a slogan that is grandiose, but has become a reality in the implementation of e-business.
Dimensions of Why
The final question that often haunts traditional business people is why business practitioners around the world agree to implement e-business as soon as possible as a business model in the future. The effective application of the e-business concept not only benefits the company because of the many high cost components that can be saved (cost cutting), but it also gives the company the opportunity to increase its level of revenue (revenue generation) directly or indirectly.
By implementing e-business, companies can see various opportunities and new business gaps that have never been offered to the public. In addition, it has been proven that many companies have carried out business transformation (changes in core business) after seeing the magnitude of new business opportunities in applying the concept of e-business.
Theft of Valuable Confidential Information
Theft of Valuable Confidential Information
From a business point of view, the system abuse that occurs, consists of:
Direct financial loss due to fraud
A person or fraudster who comes from inside or outside transfers a sum of money from one account to another or he has destroyed / replaced all existing financial data.
Theft of valuable confidential information
In general, many organizations and institutions that store confidential data that is very important for their survival. For example, ownership of technology or marketing information and information related to the interests of their consumers / clients. Disturbances can reveal all confidential information to unauthorized parties and can result in great harm to the victim.
Lost business opportunity due to service disruption
Relying on electronic services can cause interruptions during certain periods that cannot be predicted. This error is a non-technical error, such as a sudden power outage, or other types of unexpected disturbances.
Unauthorized use of access to resources
An outsider obtains access that is not his right and he uses it for personal gain. For example, a hacker who managed to break into a banking system. After that, he arbitrarily moved a number of other people's accounts into his own account.
E-Commerce Risks
Although eCommerce is a profitable system because it can reduce business transaction costs and can improve the quality of service to customers, this eCommerce system and all supporting infrastructure is easily misused by irresponsible parties, and can also be exposed to errors that arise through various ways.
Loss of trust from consumers
Consumer confidence towards a
certain companies / institutions / institutions can be lost due to various factors, such as efforts made deliberately by other parties who try to bring down the reputation of the company, and can also be fatal mistakes made by these companies which increase consumer confidence.
Unforeseen losses
Interference with business transactions, caused by intentional outside interference, dishonesty, improper business practices, human error, or electronic system errors, results in unavoidable loss of business transactions. Especially in financial terms. For example, confirmation of a transaction is not received as well as it should. Loss of business opportunities, loss of credibility and reputation, and loss of costs that are risks that can occur at any time, but we must be prepared to anticipate or prevent it.
Scope and Factors of E-business
E-business scope
To be able to capture the dimensions of the scope of the notion of e-business the way often used is to use the 4W principle (What, Who, Where, Why)
What dimension
Many people exchange the term e-business for e-commerce. In principle, the understanding of e-business is much broader compared to e-commerce even philosophically, e-commerce is part of e-business. If e-commerce only focuses on activities or transaction mechanisms that are carried out electronically, or digitally, e-business has a much broader area. This includes the activities of relations between two corporate entities. Interaction between the company and its customers, collaboration between the company and its business partners. Exchange information between companies and with business competitors. And so forth. The existence of the internet has enabled companies to establish direct and indirect communication with millions and even billions of entities (customers, partners, competitors, government, etc.) that exist in cyberspace because the nature of such communication is part of a business system, so it is widely understood understanding of e-business.
From a business point of view, the system abuse that occurs, consists of:
Direct financial loss due to fraud
A person or fraudster who comes from inside or outside transfers a sum of money from one account to another or he has destroyed / replaced all existing financial data.
Theft of valuable confidential information
In general, many organizations and institutions that store confidential data that is very important for their survival. For example, ownership of technology or marketing information and information related to the interests of their consumers / clients. Disturbances can reveal all confidential information to unauthorized parties and can result in great harm to the victim.
Lost business opportunity due to service disruption
Relying on electronic services can cause interruptions during certain periods that cannot be predicted. This error is a non-technical error, such as a sudden power outage, or other types of unexpected disturbances.
Unauthorized use of access to resources
An outsider obtains access that is not his right and he uses it for personal gain. For example, a hacker who managed to break into a banking system. After that, he arbitrarily moved a number of other people's accounts into his own account.
E-Commerce Risks
Although eCommerce is a profitable system because it can reduce business transaction costs and can improve the quality of service to customers, this eCommerce system and all supporting infrastructure is easily misused by irresponsible parties, and can also be exposed to errors that arise through various ways.
Loss of trust from consumers
Consumer confidence towards a
certain companies / institutions / institutions can be lost due to various factors, such as efforts made deliberately by other parties who try to bring down the reputation of the company, and can also be fatal mistakes made by these companies which increase consumer confidence.
Unforeseen losses
Interference with business transactions, caused by intentional outside interference, dishonesty, improper business practices, human error, or electronic system errors, results in unavoidable loss of business transactions. Especially in financial terms. For example, confirmation of a transaction is not received as well as it should. Loss of business opportunities, loss of credibility and reputation, and loss of costs that are risks that can occur at any time, but we must be prepared to anticipate or prevent it.
Scope and Factors of E-business
E-business scope
To be able to capture the dimensions of the scope of the notion of e-business the way often used is to use the 4W principle (What, Who, Where, Why)
What dimension
Many people exchange the term e-business for e-commerce. In principle, the understanding of e-business is much broader compared to e-commerce even philosophically, e-commerce is part of e-business. If e-commerce only focuses on activities or transaction mechanisms that are carried out electronically, or digitally, e-business has a much broader area. This includes the activities of relations between two corporate entities. Interaction between the company and its customers, collaboration between the company and its business partners. Exchange information between companies and with business competitors. And so forth. The existence of the internet has enabled companies to establish direct and indirect communication with millions and even billions of entities (customers, partners, competitors, government, etc.) that exist in cyberspace because the nature of such communication is part of a business system, so it is widely understood understanding of e-business.
E-Commerce Challenges and Risks
E-Commerce Challenges and Risks
E-Business Benefits
Benefits of E-Business Value what is actually offered by e-business. According to Charles R. Rieger and Marry P. Donato there are at least 5 advantages offered by e-business namely: Efficiency, Effectiveness, Reach, Structure, and Opportunity.
Efficiency
A research shows that approximately 40% of the company's total operational costs are allocated for information dissemination activities to the relevant divisions. With the use of information technology, it can be seen how companies can finance the total operational costs. An example is how e-mail facilities can reduce the cost of communication in sending documents.
Effectiveness
With the use of information technology, customers can get in touch with the company at any time, 7 days a week and 24 hours non-stop.
Reach
The company is able to expand the range and space of the company to expand easily (penetrating the limits of space and time) and without requiring relatively expensive costs.
Structure
The concept of brick-and-morter transformed into click-and-morter has changed the behavior of companies in a business approach.
Opportunity
Opened wide opportunities for business people to innovate to create new products or services due to the discovery of new technology from the future.
Also Read Articles That May Be Associated: Differences in E-Business and E-Commerce
E-Commerce Challenges and Risks
E-Commerce Challenge
The number of Internet users is not in line with the level of e-commerce sales
At present, Indonesia is the fourth most populous country in the world that has quite a large number of internet users. However, this did not seem to have a good effect on the level of e-commerce sales in Indonesia. Because, based on research results, Indonesia is ranked last of the five countries in Asia in e-commerce sales.
Online shoppers in Indonesia are still dominated by professionals
Half of all Internet users in Indonesia on average spend three or more hours online each day and around office hours, online shopping traffic will increase again in the afternoon after office hours or during lunch breaks. This is because buyers prefer to access the internet at work rather than at home, because of the slow internet connection at home.
Consumers in Indonesia prefer shopping on Social Media
and BBM Netizens in Indonesia tend to choose online purchases through BBM broadcasts, forums and social media platforms such as Facebook, where they can interact with sellers. And only 20% of Indonesian netizens say they prefer shopping on online shopping sites. This means that e-commerce such as eBay, Rakuten and Sukamart, must adjust their different strategies in Indonesia
Payment services are still limited
In the midst of poor transportation infrastructure in Indonesia, congestion and poor means of mass transportation to shopping centers make consumers have to make more efforts to be able to shop, for that problem, actually e-commerce can be the best solution for consumers in Indonesia. However, many e-commerce requires buyers to ATM to transfer a certain amount of money to the seller before the goods can be sent. It also needs to be considered by e-commerce actors to adjust the way of payment to the situation in Indonesia.
E-Business Benefits
Benefits of E-Business Value what is actually offered by e-business. According to Charles R. Rieger and Marry P. Donato there are at least 5 advantages offered by e-business namely: Efficiency, Effectiveness, Reach, Structure, and Opportunity.
Efficiency
A research shows that approximately 40% of the company's total operational costs are allocated for information dissemination activities to the relevant divisions. With the use of information technology, it can be seen how companies can finance the total operational costs. An example is how e-mail facilities can reduce the cost of communication in sending documents.
Effectiveness
With the use of information technology, customers can get in touch with the company at any time, 7 days a week and 24 hours non-stop.
Reach
The company is able to expand the range and space of the company to expand easily (penetrating the limits of space and time) and without requiring relatively expensive costs.
Structure
The concept of brick-and-morter transformed into click-and-morter has changed the behavior of companies in a business approach.
Opportunity
Opened wide opportunities for business people to innovate to create new products or services due to the discovery of new technology from the future.
Also Read Articles That May Be Associated: Differences in E-Business and E-Commerce
E-Commerce Challenges and Risks
E-Commerce Challenge
The number of Internet users is not in line with the level of e-commerce sales
At present, Indonesia is the fourth most populous country in the world that has quite a large number of internet users. However, this did not seem to have a good effect on the level of e-commerce sales in Indonesia. Because, based on research results, Indonesia is ranked last of the five countries in Asia in e-commerce sales.
Online shoppers in Indonesia are still dominated by professionals
Half of all Internet users in Indonesia on average spend three or more hours online each day and around office hours, online shopping traffic will increase again in the afternoon after office hours or during lunch breaks. This is because buyers prefer to access the internet at work rather than at home, because of the slow internet connection at home.
Consumers in Indonesia prefer shopping on Social Media
and BBM Netizens in Indonesia tend to choose online purchases through BBM broadcasts, forums and social media platforms such as Facebook, where they can interact with sellers. And only 20% of Indonesian netizens say they prefer shopping on online shopping sites. This means that e-commerce such as eBay, Rakuten and Sukamart, must adjust their different strategies in Indonesia
Payment services are still limited
In the midst of poor transportation infrastructure in Indonesia, congestion and poor means of mass transportation to shopping centers make consumers have to make more efforts to be able to shop, for that problem, actually e-commerce can be the best solution for consumers in Indonesia. However, many e-commerce requires buyers to ATM to transfer a certain amount of money to the seller before the goods can be sent. It also needs to be considered by e-commerce actors to adjust the way of payment to the situation in Indonesia.
Difference between E-Business and E-Commerce
Difference between E-Business and E-Commerce
RELATIONSHIP BETWEEN INTERNAL PARTIES WITH EXTERNAL PARTIES
Each functional part has environmental responsibilities that interact with the company, according to the graph below:
Difference between E-Business and E-Commerce
Basically, we can distinguish e-commerce and e-business very easily. Almost all e-commerce is part of e-business, so it is not wrong if we mention many online shops as a form of e-commerce or e-business. However, there is still a difference between the two services that are in this internet network, namely:
E-business covers a very wide area, starting from capital development, human resources, technology resources, marketing and marketing processes, office management, audit processes, and all kinds of other elements. Meanwhile, e-commerce only focuses on the process of buying and selling or transferring which is carried out through an electronic transaction process on a site.
E-commerce is a small part of e-business. Proverbial, if we compare it as a human body, e-business is the entire human body, while e-commerce is only the left hand or right hand man.
E-commerce only requires specifications and analytical skills in terms of sales and transactions only, while e-business requires careful consideration from various aspects, ranging from aspects of marketing, production, and so on.
Benefits of E-Business and E-Commerce
Advantages of E-Commerce
Better customer service.
Relationships with suppliers and the financial community have improved.
Returns on shareholder and owner investment are increasing.
Benefits for the Company
Can reach a large number of potential buyers on a global count,
Advertising costs are cheaper than TV, newspaper or Radio advertising media with the latest display updates with minimal costs,
Can use social media for communication with suppliers, factories, distributors and customers online,
The level of marketing can be developed in accordance with the wishes of the buyer,
Not subject to sales tax.
Benefits for Consumers
Electronic commerce allows customers to shop or make other transactions 24 hours a day throughout the year from almost every location.
Electronic commerce gives customers more choices; they can choose various products from many vendors.
Electronic commerce provides inexpensive products and services to customers by visiting many places and making comparisons quickly.
In some cases, especially on digitized products, EC makes shipping very fast.
Customers can receive relevant information in detail in seconds, no longer days or days.
Electronic commerce allows participation in virtual auctions.
Electronic commerce provides a place for customers to interact with other customers in the electronic community and exchange ideas and experiences.
Electronic commerce facilitates competition, which in turn will generate substantial discounts.
Benefits for the Community
Electronic commerce allows people to work inside the house and not go out to shop a lot, consequently this will reduce the flow of traffic on the road and reduce air pollution.
Electronic commerce allows a number of merchandise to be sold at a lower price, so that people who are less able can buy more and improve their standard of living.
Electronic commerce allows people in third world countries and rural areas to enjoy a variety of products and services that would be difficult for them to get without EC. This also includes opportunities to study professionally and obtain an academic degree.
Electronic commerce facilitates public services, such as health care, education and equitable social services implemented by the government at lower costs, and with better quality. Health care services, for example, can reach patients in rural areas.
RELATIONSHIP BETWEEN INTERNAL PARTIES WITH EXTERNAL PARTIES
Each functional part has environmental responsibilities that interact with the company, according to the graph below:
Difference between E-Business and E-Commerce
Basically, we can distinguish e-commerce and e-business very easily. Almost all e-commerce is part of e-business, so it is not wrong if we mention many online shops as a form of e-commerce or e-business. However, there is still a difference between the two services that are in this internet network, namely:
E-business covers a very wide area, starting from capital development, human resources, technology resources, marketing and marketing processes, office management, audit processes, and all kinds of other elements. Meanwhile, e-commerce only focuses on the process of buying and selling or transferring which is carried out through an electronic transaction process on a site.
E-commerce is a small part of e-business. Proverbial, if we compare it as a human body, e-business is the entire human body, while e-commerce is only the left hand or right hand man.
E-commerce only requires specifications and analytical skills in terms of sales and transactions only, while e-business requires careful consideration from various aspects, ranging from aspects of marketing, production, and so on.
Benefits of E-Business and E-Commerce
Advantages of E-Commerce
Better customer service.
Relationships with suppliers and the financial community have improved.
Returns on shareholder and owner investment are increasing.
Benefits for the Company
Can reach a large number of potential buyers on a global count,
Advertising costs are cheaper than TV, newspaper or Radio advertising media with the latest display updates with minimal costs,
Can use social media for communication with suppliers, factories, distributors and customers online,
The level of marketing can be developed in accordance with the wishes of the buyer,
Not subject to sales tax.
Benefits for Consumers
Electronic commerce allows customers to shop or make other transactions 24 hours a day throughout the year from almost every location.
Electronic commerce gives customers more choices; they can choose various products from many vendors.
Electronic commerce provides inexpensive products and services to customers by visiting many places and making comparisons quickly.
In some cases, especially on digitized products, EC makes shipping very fast.
Customers can receive relevant information in detail in seconds, no longer days or days.
Electronic commerce allows participation in virtual auctions.
Electronic commerce provides a place for customers to interact with other customers in the electronic community and exchange ideas and experiences.
Electronic commerce facilitates competition, which in turn will generate substantial discounts.
Benefits for the Community
Electronic commerce allows people to work inside the house and not go out to shop a lot, consequently this will reduce the flow of traffic on the road and reduce air pollution.
Electronic commerce allows a number of merchandise to be sold at a lower price, so that people who are less able can buy more and improve their standard of living.
Electronic commerce allows people in third world countries and rural areas to enjoy a variety of products and services that would be difficult for them to get without EC. This also includes opportunities to study professionally and obtain an academic degree.
Electronic commerce facilitates public services, such as health care, education and equitable social services implemented by the government at lower costs, and with better quality. Health care services, for example, can reach patients in rural areas.
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