The Role of Information Technology in E-Commerce

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INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH VOLUME 8, ISSUE 01, JANUARY 2019

ISSN 2277-8616

The Role Of Information Technology In E-
Commerce

Winwin Yadiati; Meiryani

Abstract: Information technology has the power to develop the industry and transform how business is run. Internet in business is used for information
exchange, media promotion, electronic mail, mailing lists, dialogue, discussions, consulting with consumers online. There are two electronic commerce
applications, namely: business-to-consumer and business-to-business commerce. Information technology has the power to develop the industry and
transform how business is run. The main obstacle in the use of information technology is the enormous cost of making an online network and supplying
devices. The use of information technology plays an important role in trade and national economic growth to achieve public welfare.

Index Terms: Information Technology, E-Commerce, Role, Commerce, E-Business, E-Business Transaction, Decision Making

————————————————————

in

field of

1 INTRODUCTION
Progress
technology, computers, and
the
telecommunications supports the development of internet
technology. With the internet business people no longer have
difficulty in obtaining any information, to support their business
activities, even now tend to be able to obtain various kinds of
information, so information must be filtered to get the right and
relevant information. The use of the internet has experienced
tremendous developments in the business sector, especially in
the discovery of internet
large scale companies. Since
technology in the 1990s its use has expanded because it is
seen as providing enormous benefits for the smooth running of
the business or business activities. Motivation and benefits of
e-commerce in improving service to customers as well as
increasing the competitiveness of companies in this case
become the point of view of the author which is used as an
object in this study. The application of e-commerce technology
is one of the important factors to support the success of a
product from a company. To accelerate and increase sales
quickly, by looking at the rapid development of information
technology, we can utilize an on-line service in the form of e-
commerce. So far, the sales system of customers used by
companies is only in writing and manual, which often tends to
be misleading. With the existence of e-commerce services that
can be quickly enjoyed by customers and companies
themselves, all services desired by customers can be
immediately followed up as quickly as possible, so that the
company will be able to provide the best and fastest service
for customers. E-commerce, is the use of communication
networks and computers to carry out business processes.
Mostly e-commerce, occurs between businesses, and not
between business and consumers. The development of the
use of technology through electronic networks in daily life has
covered various aspects, including trade activities. Since
ancient times humans have been familiar with cross-country
trading activities, which are carried out by exploring continents
around the world with simple vehicles or transportation.
Technology development very helpful to humans and make
human life easier.

• Winwin Yadiati; Accounting Department, Faculty of
Economics and Business, Padjadjaran University,
Bandung, Indonesia

• Meiryani; Accounting Department, Faculty of Economics
and Communication, Bina Nusantara University, Jakarta,
Indonesia 11480

_____________________________

Information

Trading through electronic networks is all business transaction
activities carried out by using internet network access via a
computer. There are 3 reasons why businesses have built
information technology: (1) Business Operations Support; (2)
Supporting Managerial Decision Making; (3) Supporting
Competitive Advantage Strategies.
technology
influences the process of developing marketing strategies
because information technology provides more information to
managers through the use of a decision-making system
(Decision Support System or DSS). Information technology has
the ability to integrate various different parts of the organization
and provide a lot of information to managers. For example,
executive information systems (executive Information System or
EIS) affect the flow of information vertically within the company.
Top management parties have greater access to information
and reduce the dependence of information sources on middle
management. Telecommunication networks allow information to
flow easily and quickly between different departments and
divisions. Information technology also influences organizational
interfaces with the environment, such as customers and
suppliers.

2 LITERATURE REVIEW
E-commerce is the distribution, purchase, sale, marketing of
goods and services through electronic systems such as the
internet or television, www, or other computer networks. E-
commerce can involve electronic funds transfers, electronic
data exchanges, automated inventory management systems,
and automated data collection systems. The information
technology
the
application and application of e-business (e-business) related
funds
to commercial
electronically, SCM (supply chain management), e-marketing
(e-marketing), or online marketing (online marketing), online
transaction processing, electronic data interchange (EDI), etc.
E-commerce or e-commerce is part of e-business, where the
scope of e-business is broader, not just commerce but also
includes collaborating business partners, customer service, job
vacancies etc. In addition to www network technology, e-
commerce also requires database or database (e-mail)
technology, e-mail, and other
forms of non-computer
technology such as the shipping system, and payment
instruments for this e-commerce.

E-commerce is divided into two types, namely:
to
business-to-consumer
transactions that occur between a business and the final

industry sees e-commerce activities as

transactions, such as:

e-commerce

transfer of

(B2C)

refers

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INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH VOLUME 8, ISSUE 01, JANUARY 2019

ISSN 2277-8616

to

refers

consumer of the product e-commerce business to business
(business-to-business-B2B)
inter-business
transactions where no party becomes the final consumer,
involves relatively few people, and the parties involved are
highly trained in using information systems and getting to
know business processes.

Trade Through Electronic Networks
Some people define electronic commerce (e-commerce)
narrowly, namely
trade, which only covers business
transactions that relate to customers and suppliers. This
that only cross
definition means
company boundaries can be classified as e-commerce. . If a
transaction remains within the company boundary, these
people will call it an electronic business transaction. Limiting
internal versus external transactions will not offer much help,
because most people consider electronic business and
electronic commerce to be the same thing.

Key Success Factors in E-Commerce
In many cases, an e-commerce company can survive not only
on the strength of the product, but with a reliable management
team,
timely delivery, good service, good business
organization structure, network infrastructure and security,
website design good, several factors include:

transactions

that only

Providing competitive prices
Providing responsive, fast and friendly purchasing services
Provide the complete and clear information about product and
service
Provide many bonuses such as coupons, special offers, and
discounts
Give special attention such as the proposed purchase
Providing a sense of community for discussion, input from
customers, and others
Facilitate trading activities

Benefits of trading via electronic networks, namely:
Companies do e-commerce to achieve overall organizational
improvement. This improvement is expected to be the result of
the 3 main benefits that will contribute to the company’s
financial stability and enable it to compete better in the
business world that applies computer technology, namely:

Better customer service
Better relations with suppliers and the financial community
Returns on investment in shareholders and owners increases

In terms of grouping benefits, can be seen from:

Benefits for the company
Expansion of network of business partners. In traditional trade,
it is very difficult for a company to find the geographical
location of its business partners in other countries or other
continents. Efficient. It is considered very efficient, because
every company does not need equipment to run this business,
and only needs internet. And reduce all levels of operational
costs, so that it doesn’t seem expensive. Because it is run
through online channels. Market expansion. The reach will be
increasingly very broad, because it is not limited by the
geographical location wherever the company is located.
Shortening Distance. Companies can get closer to consumers.
By just clicking on the links on the sites. consumers can go to

companies wherever they are.

Benefits for consumers
Effective. Consumers can obtain information about products or
services needed and transact in a fast and inexpensive way.
Physically safe. Consumers do not need to go to the store
where the company sells its goods and this allows consumers
to trade safely because in certain areas it may be very
dangerous to drive and carry very large amounts of cash.
Flexible. Consumers can make transactions from various
locations, both from home, office, internet cafe or other places.

Benefits for the general public
Reducing Pollution and Environmental Pollution.
Open New Job Opportunities.
Profitable Academic World.
Improving the Quality of Human Resources
Customer service improvements before, during, and after
sales
Improving relations with suppliers and the financial community.

Strategy Business-to-Consumer (B2C) Fof E-Commerce
The increasing number of products and services available for
digital shipping and the increasing number of customers are
able to overcome their reluctance to make purchases using
the web. The faster speed of communication from home
computers has also made the delivery of digital products more
practical.

1. Digital Products
Certain products and services can be sent to consumers
directly through the internet. Examples of digital products such
as songs, movies, software. Products and services can be
directly consumed after downloading.

2. Physical Products
Certain products and services
that cannot be directly
consumed via the internet, but must be sent to consumers.
Sales and payment orders can be received through the
internet, after which they are sent to the buyer.

3. Sales of Maya Versus Mixed
Virtual sales are sales made by a company that does not
operate a physical selling place. With virtual sales, there is no
shop where customers can enter and buy products. Hybrid
sales occur when a company has a place to sell physically and
a website where customers can buy products. These two retail
sales strategies need to inform customers of product costs and
features, manage customer payments, and produce product
shipments. Virtual sales are most often used when companies
cannot build a place to sell physically or find a place to sell
economically
feasible physical sales. Mixed sales are
sometimes referred to as brick-and-click operations. Most
companies have a place to sell because usually this is needed
for their business plans. The most popular example at this time
is the sale of products through social networks such as
Facebook or other sites such as www.kaskus.us, where the
sales they do are usually virtual sales or mixed sales.

4. Electronic Governance
The government can also benefit from e-commerce. Electronic
information
government or e-government
technology by the government to provide information and

the use of

is

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INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH VOLUME 8, ISSUE 01, JANUARY 2019

ISSN 2277-8616

and

services to its citizens, business affairs, and other matters
relating to government. E-government can be applied to the
legislature, judiciary, or public administration, to improve
efficiency internal, deliver public services, or democratic
is
governance processes. The main delivery model
government-to-citizen or government-to-customer
(G2C),
government-to-
(G2B)
government-to-business
government (G2G). The most expected advantage of e-
government is
increasing efficiency, comfort, and better
accessibility of public services. The challenge for e-commerce
is more than just the type of goods offered. Many customers
are more comfortable using cellular phones than using
computer keyboards.

Mobile Trade
Mobile commerce is the use of cellular telephones and
personal digital assistants (PDA) to conduct wireless e-
commerce. Along with the development of cellular telephone
technology from analog generation to the digital generation,
the
(third
generation-3G) has loosely used for wireless technology
capable of transferring data.

telecommunications

third generation

term

cable

the dependence on

Classy Wireless Business in All Places
Cable internet hot spots are sufficient for both public and
private Web use, but checking e-mail at a Starbucks coffee
shop is an inadequate way for business professionals.
Because
communication
connections and the small coverage distance by a wireless
access point makes continuous wireless access impossible.
Wireless communication with sufficient speed through the
same communication service provider as cellular phones will
enable the creation of business-class wireless computing in
almost all businesses in almost all places. Verizon offers a
broadband access plan that runs at speeds ranging from 400
to 700 kilobits per second, but this service is available in many
metropolitan areas and is not limited to the closest access
points for a network using cables.

3 DISCUSSION
E-Commerce in Indonesia is more or less certainly related to
the development of e-commerce in developed countries, such
as the United States. With thousands of innovative shopping
methods presented by merchants, US citizens are increasingly
facilitated to get the items they want easily, quickly and safely.
Information Technology (IT) has played an important role in
human life today. The development of information technology
has followed with the progress of human development. The
development of
rapidly
triggered by the information needs quickly, precisely and up to
date. Information technology has become a major facility for
the activities of various sectors of life which contribute greatly
to fundamental changes in the structure of operations and
management of the organization. Those who understand E-
Commerce can see good opportunities in the world of online
business. Because there are many advantages or advantages
in online business. These business people do not need to find
a place to do business, do business online only with
computers and
to pay
employees, and many more benefits. With the existence of
electronic commerce (e-commerce) services, customers can
access and place orders from various places. With the
advanced technology era, customers who want to access e-

internet connections, no need

information

technology

is very

commerce don’t have to be somewhere. E-Commerce plays
an important role in the development of business in Indonesia
which can also improve the economy in this country. But the
number of internet accessers in Indonesia has only reached
around 3% of Indonesia’s population. This percentage is
relatively small compared to other Asia Pacific countries. The
benefits that can be obtained from doing business via the
internet are cost savings reaching 35%, consumer services
reaching 32%, increasing income reaching 18%, marketing
reaching 13%, and others reaching 2%. Whereas
the
advantage of business strategy in winning the competition that
can be obtained is that global communication in the business
becomes truly alive, faster, cheaper, and easier; interactive
communication as a means to show the company’s attention
to
in
accordance with the needs of each consumer; enhance
cooperation between teams; The EC makes it possible to open
new markets, products or services; can integrate outside
activities and business processes within the company on-line.

Expected benefits from E-commerce
implement e-commerce
Companies
organizational
improvement. These
expected to be the result of three main benefits:
•
•

Improved customer service before, during, and after sales
financial
Improved relations with suppliers and
community
Increased economic
investment owners

to achieve overall
improvements are

returns on shareholders and

information and services

its customers; provide

the

•

E-commerce constraints
In implementing e-commerce, of course there are obstacles
that are usually encountered, namely, among others:
• High costs
• Concern about security issues (access to personal data /

information)

• Software that is not yet established or not yet available

The scope of E-commerce

E-commerce Issues in Indonesia

Apparently, Indonesia is not only famous for its large mobile
market, but also anything related to social, e-commerce and
games. Many people who are interested in e-commerce in
Indonesia, last year was the year of e-commerce, marked by
the launch of more than 20 e-commerce companies. And of
course many of them later failed, leaving established players
like Rakuten, TokoBagus, Plasa
, Berniaga, Kemana,
Tokopedia, etc. But so far, there has not been enough success
in this very wide and opportunity-filled market. There are a
number of problems they face in running their businesses,
logistics
including behavior, payment
facilities, and regulations.

facilities, mobile,

4 CONCLUSION
E-Commerce in Indonesia is more or less certainly related to
the development of e-commerce in developed countries, such
as the United States. With thousands of innovative shopping
methods presented by merchants, US citizens are increasingly
facilitated to get the items they want easily, quickly and safely.
The internet has no impact on customers, but lower prices and
better customer service made possible by B2B are what make

175

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INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH VOLUME 8, ISSUE 01, JANUARY 2019

ISSN 2277-8616

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business organizations competitive. The next e-commerce
step is to run business-class wireless and mobile trading
everywhere. The business to consumer strategy is a strategy
that refers to transactions that occur between a business and
the final consumer of the product. the basic difference
between e-commerce and e-business is that the purpose of e-
commerce is oriented to how to get profits, while e-business is
oriented to long-term interests and abstract characteristics
such as consumer trust, service to consumers, work rules,
relations between business partners and handling other social
problems. Aside from the differences between the two, it turns
out that both of them also have the same goal of advancing
the company into a larger company than before.

ACKNOWLEDGMENT
The authors wish to thank to Padjadjaran University, Bandung
Indonesia and Binus University, Jakarta, Indonesia.

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