Yelena Claudia
Definition of e-Procurement

Electronic Procurement (also known as e-Procurement) is the way of using internet to make easier, faster, and less expensive B2B (business-to-business) purchase and sale of supplies and service over the Internet.

E-Procurement is more than just a system for making purchases online. A properly implemented system can connect companies and their business processes directly with suppliers while managing all interactions between them. This includes management of correspondence, bids, questions and answers, previous pricing, and multiple emails sent to multiple participants.

Well e-procurement system helps a firm organize its interactions with its most crucial suppliers. It provides those who use it with a set of built-in monitoring tools to help control costs and assure maximum supplier performance. It provides an organized way to keep an open line of communication with potential suppliers during a business process. The system allows managers to confirm pricing, and leverage previous agreements to assure each new price quote is more competitive than the last one.



Definition of e-Procurement

Implementing an electronic procurement system offers a company many benefits to the company, such as:
  1. E-procurement helps with the decision-making process by keeping relevant information neatly organized and time-stamped.
    Most are template-driven which makes all transactions standardized and track able. Keeping track of all bids means leveraging your knowledge to obtain better pricing. Companies can focus on their most lucrative trading partners and contracts.
  2. Well-managed e-procurement helps reduce inventory levels.
    Knowing product numbers, bid prices and contact points can help businesses close a deal while other suppliers are struggling to gather their relevant data.
  3. E-Procurement systems that allow multiple access levels and permissions help managers organize administrative users by roles, groups, or tasks. Procurement managers do not need to be as highly trained or paid because such systems are standardized and easy to learn.
  4. With e-procurement all purchases are easier to track because they are done over the Internet and the company's managers can easily see who made which purchases without having to wait to receive a monthly revolving credit statement. Furthermore, many companies incorporate product specifications into their e-procurement systems, so an employee wanting a laptop might only be able to purchase a certain brand with specific features, memory capacity, and software.
  5. E-procurement saves times.
    Buyers do not need to leave their desks or make phone calls to suppliers in order to place orders; they simply go through the Internet. And, because suppliers receive the order almost immediately, they can also fulfill and ship it much faster than with the traditional procurement methods.



There are some real benefits that experienced by some companies that use electronic purchase method (e-procurement):
  1. Lower price of purchasing (5%-20%)
    • More supply resources that can be access
    • New supplier will be easier to get
    • Competitive price
    • Broader the geographic scope
  2. Time Efficiency of Purchasing Process (20-30%)
    • Faster to look the sources
    • Faster to ask for offering request
    • Faster to send the requested list
    • Faster the offering evaluation
    • Faster the release the requested item
    • Faster the follow up
    • Easier to detect the offering
  3. Reduce the time limit for claim and payment.
    • Potentially get the price reduction
    • Reduce the potential mistakes that can be happen in term of offering document, receiving documentations, and billing.
  4. Reduce the administration fee
    • Reduce the manual jobs and paper work
    • Increase the buyer productivity
  5. Develop the ability to create/ manage the optimal supply basis
    • Fix the market data
    • Avoiding the effect of high demand level
  6. Expedite the communication between buyer and seller
    • Faster and more accurate
    • More faster in detecting problem and problem solving
  7. Just-in-time purchasing
    • Daily request communication
    • Daily delivery communication
  8. Supply Chain Management
    • Transparent communication and information delivering in supply chain in real time
    • Synchronization and automatic payment
  9. Support the partnership practice.
    • Support daily, fast, and accurate communication
    • Support transparency between partners.

E-Procurement cause the lower cost with many ways. For example: sale price, admistration fee, inventory cost, and other cost, and that’s why e-procurement can increase company ROI (return on investment). With all the benefit that achieved from E-Procurement, the company can significantly increase ROE (return on equity) dan ROI (return on investment). The price can be reducing directly from the sales price from selling process expense.

Real Example of E-Procurement Implementation in the company
Case of : Starbuck Company



The struggling world economy has some wondering if we - consumers and businesses alike - have raised expectations in the area of sustainability higher than we can afford. It’s a fair question since past environmental movements have stalled when the economy turned sluggish, as it did in the early 1990s.
Starbucks CEO Howard Schultz wrote an interesting piece on this subject last week on The Huffington Post. His take:
Now is a time to be bold. Now is a time to invest, truly and authentically, in our people, in our corporate responsibility and in our communities. The argument–and opportunity–for companies to do this has never been more compelling.

Schultz, in describing their recently stepped up efforts, wrote:
We also announced a set of ambitious but realizable goals for the way we source our coffee, how we help to sustain our environment, and what we can do to work with, and continue to contribute to, the communities in which we do our business and the world as a whole. Consumers are spending less and will more closely scrutinize products; they will embrace only the companies and brands they trust and with which they identify.

In other words, consumers expect companies they know and trust to continue, and even, enhance their sustainability initiatives. Doing anything less would harm the brand and bottom line. So the sourcing and procurement operations will be relied on to drive savings of sustainably sourced direct goods.

That’s why Starbucks decided to become customer of Perfect Commerce that supply the solution for better information technology provider. Perfect Commerce positioned themselves as the company that offers world-class sourcing and procurement solutions for companies of all sizes.

"We needed a provider who offered more than point solutions, and we needed a partner that could provide the flexibility and accelerated implementation of an On-Demand offering. Perfect Commerce delivered on all accounts."
Peter Lohri, Director, Corporate Procurement and Supplier Diversity at TIAA-CREF


Sources :
Yelena Claudia


Garuda Indonesia began its first commercial services under the name "Indonesia Airways". It was during a time of change and upheaval for the country, which was struggling to maintain its independence. The company's first aircraft, a DC3 named Seulawah (Good Mountain) was donated by the people of Aceh to help in the campaign for independence, and it played a vital role in the struggle. More recent, Garuda Indonesia along with the country as a whole has undergone a period of dynamic change. Garuda Indonesia has continued its efforts to improve its services and to provide safe comfortable and reliable air transportation services.

Through these efforts it is our sincere hope that Garuda Indonesia will remain a source of great national pride for Indonesia, and that we will continue to be one of Asia's most respected airlines. Now, Garuda Indonesia already serves all the national flight and international flight (Asia, Australia, Europe). Garuda has implied international standard for the operational activities according to ISO Standard 9001-100.

As the 1st airways in Indonesia, Garuda Indonesia serves more than 8 million people per year. Previously, Garuda Indonesia sold the ticket in old way (direct purchase to the office/ through travel agent). To be more competitive, Garuda Indonesia decided to make website (www.garuda-indonesia.com) to giving extra service to the customer.

In this competitive environment in flight industry, there are many competitors offer more affordable price for their ticket. Garuda has different business strategic to facing this kind of situation. According to the management, it will be better to serve their customer better and giving extra value than only giving lower price. And Garuda Indonesia Website is one of the ways to get customer satisfaction of Garuda Indonesia services.



Six key e-business strategic decision

Decision 1: E-Business Channel Priorities

E-Business strategic must be directed according to the priority of different strategic objective. Garuda Indonesia has some strategic objective, such as:


OBJECTIVE
STRATEGIES
Develop revenue from new geographical marketsGaruda create e-commerce facility for offering their service and assign their agent to this market.
Ensure retention of key account customerFor maintain the customer satisfaction through the service offered. Ex: Garuda has customer service for giving information and “contact us” menu for suggestion and complain.
Reduce time to market and costs for new product developmentUse collaboration and project management tools. To develop good website, Garuda Indonesia uses credible tools and soft ware for project management and collaboration management.
Protect and increase efficiency of distributor and partner networkCreate partner extranet and aim for paperless support. Ex: Garuda Indonesia’s website has Quick Links for its B2B (Distribution Partners, Corporate Partners, and E-Pronouncement)


In Decision 1, Garuda Indonesia is in second level of Strategic options for a company in relation to the importance of the Internet as a channel. Garuda Indonesia is in “Bricks and Click” level, which is mix of on and offline transactions and customer service. But, actually it is on the way to third level “Clicks” level, which in this level all transactions and customer service online. Garuda Indonesia is still in second level considering the customers who like the old way of purchasing ticket and the customer who doesn’t really understand of using technology and prefer telephone call or direct purchase.

There are several considerations that Garuda Indonesia has to make in choosing the steps for its development. So they also have to do “Right Channeling” as the approach to choose the appropriate channel.

Analysis of Garuda Indonesia “Right Channeling” application:
  1. Sell to and serve SMEs through online channels.
    Garuda Indonesia using Internet for sales and service through an extranet to lower sales volume. In Garuda Indonesia website there is “Corporate Partner” Links that will be serve its corporate partner/ companies that want to use Garuda Indonesia service regularly.
  2. Encourage customer to buy through online channels.
    With easy scheduling and booking menu, Garuda Indonesia try to make the easiest and fastest way to purchase ticket for all destination. It helps the customer to get ticket easier and faster without has to be worried that the ticket sold out. The price also will be lower rather than buying through travel agent.
  3. Migrate Customer to web self-service.
    Customers are encouraged to use the web to manage their account. That why Garuda Indonesia has to login before purchase the ticket. The customer also can choose the date/ time/ place of arrival and departure by their selves. Besides, the customer also will be able to check their booking status from website.
  4. Selective Service levels for different customer types.
    For Garuda Indonesia special customer (GFF), there are additional service that they can get by input their member number on the website.

Decision 2: Organizational Restructuring and Capabilities

Company should restructure or change its capabilities in order to achieve the priorities set for e-business. There are some choices that Garuda Indonesia took:
  1. In-House Division
    The division is divided into several parts such as airlines:
    • Information (history, news, guideline for customer/ airport departure and upon arrival, before flying information, and onboard service)
    • Online Booking
      Customer can directly book the ticket according to the date and destination they wanted. They also can check all the available seats.

  2. Strategic Partnership
    Garuda is having partnership with some companies to give more valuable experience to the customer. Some of Garuda Indonesia partners are travel agents such as Avia Tour, Smiling Tour, Vaya Tour, Anta Tour, and many more. Beside, Garuda also has corporation with banking company for the payment method. For example: BCA (ATM, Phone banking, internet banking, mobile banking, MANDIRI (ATM, Phone banking, internet banking, mobile banking), BNI (ATM, Phone banking), Lippo Bank (ATM, Phone banking).
  3. Spin-off
    Garuda Indonesia also offered another service to the customer, but it divided the website according to the criteria. There are several website such as:
    • Garuda Frequent Flyer (gff.garuda-indonesia.com)
      For GFF (Garuda Frequent Flyer) members who can have better service. There are four membership types in the GFF program, namely GFF Regular, GFF Junior, Executive Card Plus (EC Plus) and Garuda Indonesia Citi Card (GIC Card).
    • Garuda Indonesia Training Center (training.garuda-indonesia.com)
      Special website for employees, which cover information and activities.
    • Garuda Indonesia Cargo Center (cargo.garuda-indonesia.com)
      For detail cargo information and services.
    • Garuda Sentra Medika (garudasentramedika.co.id)
      For medical information, this company also the first medical support to Garuda Indonesia customer.
    • Garuda Maintenance Facility (gmf-aeroasia.co.id)
      Website about an aircraft maintenance solutions provider for Garuda Indonesia technical support.


Decision 3: Business, Service, and Revenue Model

Business Model of Garuda Indonesia:
Garuda Indonesia does B2B and B2C with some programs:
  1. E-Ticketing
    Customer can book the ticket according to their destination and flight day through website.
  2. E-Procurement
    E-procurement Web sites allow qualified and registered users to look for buyers or sellers of goods and services.
  3. E-Payment
    Corporate with some banks, Garuda Indonesia also has e-payment method which can enable customer easily pay the ticket.

Especially for corporate there are special menu “Quick Links” for Business to Business.

Revenue Model:
Direct Product Sales of Product and Service
Garuda Indonesia selling online ticket via e-ticketing

Commercial Model:
Garuda Indonesia uses Fix Price Sale for regular customer and use Loyalty-Based Pricing or promotions for GFF member.


Decision 4: Marketplace Restructuring

Garuda Indonesia has both Sell-side and Buy-side
Sell Side
There are 2 sell side strategy used by Garuda Indonesia:
  1. Garuda Indonesia has disintermediation (sell direct strategy).
    Garuda Indonesia sells on-line ticket (Garuda Flight Service) to its customer.
  2. Garuda Indonesia has Partner with new online or existing intermediary or retailer strategy.

Garuda Indonesia is having corporation with some travel agent in order selling its tickets.

Buy Side
Garuda Indonesia also tries to have good relationship with the vendor/ supplier. That’s why Garuda Indonesia has e-pronouncement. So Garuda Indonesia had disintermediation (buy direct) so it can get the best prices and quality from their vendor.


Decision 5: Market and Product Development

Garuda Indonesia had to do market and product development strategies to develop its business strategic. In this step Garuda Indonesia concern in:
  1. Market Penetration Strategies
    To build customer loyalty from existing customer, Garuda Indonesia has several developments such as GFF Member Program. The loyal customer of Garuda Indonesia will get benefit and extra value if they submit as GFF member.
  2. Product Development
    Garuda Indonesia use Internet to create product development strategies. The latest product development is E-Travel that consist several steps for giving customer extra value, which are easy booking, e-payment, e-ticketing, easy check in and enjoy flying.


Decision 6: Positioning and Differentiation Strategies

Garuda Indonesia use online facilities to enhance the positioning as follows:
  1. Product Performance Excellence
    Garuda Indonesia has website to enhance the online product customization. In order to facing competitive market, Garuda Indonesia also has to develop the service in customer perception with having website.
  2. Transactional Excellence
    The website of Garuda Indonesia provides dynamic availability information and price. So the website will provide update information every time due to price and flight schedule. So the customer can choose and book their flight according to the information provided.
  3. Relationship Excellence
    The website of Garuda Indonesia provides features that enable customer to review online booking history with booking status menu.



Source :
Yelena Claudia

PT. Glori Mulia Utama is a distributor for luxurious and fine glassware and dining table ware. There are some brands that represent by PT. GMU; Reidel, Spigelau, Waterford, Ravenscroft, Christofle, and Faberge.
Besides selling the product to the personal buyer, PT. GMU also concern in selling the product to 5 Stars Hotel in Indonesia. These are some hotels that become PT. GMU valued customer: Four Season Jakarta, St. Regis Bali, Bvlgari Hotel Bali, Nikko Bali Hotel Resort and Spa, Grand Hyatt Jakarta, and JW Marriot Hotel Jakarta.

MAIN ISSUEDETAIL
Which Type of e-business applications we develop?CRM, because of some reasons:
  • Many of PT. GMU focuses on B2C and B2B (Beside personal buyer, most of the GMU customer is 5 Star Hotel in Jakarta and Bali).
  • CRM will be very important because the customer usually buying the product regularly, even in replacing the destroyed product or to fulfill new expectation of luxurious glass and dining product.
Which Technologies do we use?PT. GMU will need web-based for some reason:
  • Giving detail information of the products.
  • Direct ordering via website.
  • Customer Service to give faster reply to customer’s questions.
How do we achieve quality of service in application?The website must contain:
  • Descriptive Information.
  • Clear Divided Part of Information by Brand.
  • Security Maintenance.
  • Using Thumbnail for father speed.
  • Compatible with browsers (ex: IE, Firefox, Safari).
  • This website will be maintained regularly with CMS.

Where do we host applications?Extranet, because we will be easy to interact with customer and supplier
Application IntegrationIntegration of e-business solutions with:
  • Legacy systems.
  • Partner systems.
  • B2B.
Which access platforms do we support?
Which development technologies and standards do we use?
Window, Mac
  • Using personal CMS such as Wordpress or Joomla .
  • Using Javascript and Flash Movie to give user a new experience with interactive website.
How do we manage content and dataAlways do update of the website by administration website (using tools personal CMS). Content and data will be managed regularly according to the specification, for example:
  • For Price
    Everyday update according to the currency, because all of the products is imported from overseas.
  • For Product
    Seasonal, according to the new item arrived or if there are some items not to be sold anymore.
  • For Additional Information
    Seasonal, according to what kind of promotion and period of the promotion available.
  • For Checking the Question from Customer
    Every hour, for giving the update information and avoiding misunderstanding.
  • For looking at the customer request
    Every hour, for giving the feedback as soon as possible and make the customer satisfied as they can fulfill their need in a short time period.
How do we manage employee access to the internet?Only limited people who are available to have the access to the website, such as:
  • Web Administrator.
  • Owner.

These people have the ability to access the private data (update, insert, and delete information).
How do we secure data?
  • Using authentication or encryption the password so that people who do not have the access to the private file cannot change the contain of our website.
  • Regular monitoring the website from viruses or another threat.


Building a website is not easy. We need a lot of preparation in order to create a successful website that can give benefit to our public and ourselves. There are some important steps that need to be considered:
  1. Establish Selection Criteria for Merchandise to be stocked
    Through the use of a software wizard, menu, context-sensitive menu or other mechanism, the user is able to establish criteria for merchandise selection. Such criteria can be one or more of the following:
    • Category (Glasses, Plate, Utensil, Silver ware, etc.)
    • Sub-category (red wine glasses, decanter, spoon, tray, etc.)
    • Manufacturer (by brands)
    • The starting date (based upon seasonal changeover, delivery schedules, sales, etc.)
    • The ending date (of sales, seasons, etc.)



  2. Specify Desired Website Organization
    This step comprises establishing the framework of a website that defines the look and feel of the site, site index and mechanisms for navigating to other pages, organization and space allocation of merchandise placement, special categories, etc.

  3. Create the Website's Graphic Design
    The website design has to be appropriate with the product offered. The Graphic Design has to be Tools such as Microsoft's FrontPage, etc. are commonly used to design the layout of a website, place graphics, establish hyperlinks, etc. according to the retailer's needs and desires. Appropriate website design for PT. GMU should be simple and elegant representing the product offered. Black and white colors for background are suggested.

  4. Build or Re-built the website
    1. Buy our domain name and sign up for a hosting service.
      This is the first step of developing any type of commercial website. Usually the companies that offer domain registration will also offer hosting services. The name of the website should be easy to remember and attractive. For example: www.gmu.com, www.gmu-dinningware.com, or www.gmu-indonesia.com.
    2. Select website design software for our retail website.
      However, we can also utilize e-commerce templates. Template Monster offers a great selection of e-commerce templates that we can use when creating a new retail website. Finally, we will want to buy a shopping cart program. Volusion and 3D Cart offer some of the most respected shopping cart programs on the market.
    3. Pull together a price list and a product description list that include all the items our plan on carrying on your retail website.
      Use both of these lists when setting up retail website. For each item we want to host on our retail website you will need a clear color digital image. For more advanced websites we will want to include multiple photographs of each item, with special shots taken of important product details.
    4. Use our website design software to create the basic layout of your new retail website.
      We will need to use the import image option to upload your product graphics to our website. Then use the text editing tools to name the products, assign them a product number and to enter a product description. Also, we have to make sure that we assign each product a price.
    5. Upload our shopping cart program to your hosting service.
      At this point we will also want to link our shopping cart program to our current merchant credit card account or to your Paypal account. This way, your customers will be able to make purchases online and the payments will be processed using these accounts.
    6. Manage our retail website.
      To keep our retail website functional, we will need to monitor orders, keep the inventory data up-to-date and you will need to add and modify text, graphics and supplemental information posted on our website periodically.

  5. Consider the Security
    We also have to consider about the website security in order to prevent the website get contaminate by virus or unexpected threats. The security will protect both of our customer and us. Any important information must be secure and only limited people can have the access to change the data information.

  6. Testing and Launch the Website
    We have to make sure that all of the features in our website already working. Don’t make the visitor inconvenience with the website problems, such as: unlink button, long loading time for opening pages (usually cause by the big size picture and javascript). We have to create the convenience website so all of the visitor will enjoy visiting our website.


MANAGEMENT ISSUE IN BUILDING A WEBSITE


We have to create purpose before building the website in order to make the website could give benefit to us not only as cost centre. There are some important steps that have to be considered:

Step 1
Budgeting

The budget has to cover (at the very least):
  • Planning - setting out requirements and perhaps a specification
  • Design or 'visuals' - sample pages to show the style, maybe leading to changes in livery for web use
  • Implementation - including databases, associated support software, integration with existing systems
  • Testing - both functional and cross-platform compatibility eg PC, Mac, Internet Explorer, Netscape, Safari
  • Launch - deployment of component parts, website configuration, marketing, search engine registration
  • Operational costs - hosting, marketing, CRM, secure certificate
  • Website content management - in-house, out-of-house
Frequently thought is only given to the design element, but most serious websites also require databases and perhaps integration with an existing sales order processing system. However there are minimum costs below which you cannot expect a reasonable result. As ever, it's a balance.

Step 2
Design issues

Website design has a lot of constraints - notably the shape, size, resolution and color capabilities of the viewing system. Font options are also severely limited at the present time. The accurate placement of design elements that print media allow is not available on web pages, so there are a series of compromises to be made.
The following list indicates most of the major design considerations:
  • Target market - what viewing facilities are they likely to have?
  • Base layout - is there an existing corporate livery to follow?
  • Content - how often does it change? How will it be managed? Is it date dependent?
  • Databases - do you have corporate data or reports that need to be presented?
  • Multimedia - is it appropriate?
  • Accessibility - what's appropriate to your market and your legal obligations
  • Interactivity - this frequently requires database support to remember visitor details
  • Search/drill down facilities
  • Multiple languages - French, German, Italian, Spanish, Scandinavian, Arabic, Russian, Japanese
  • Locales supported (eg British, US, Australian or other)
  • Scope
  • Security - particularly for commerce
  • Visitor experience - speed, ease of navigation
  • Newsletters - collecting addresses
  • Forums - creating a community and a reason to revisit

Step 3
Commerce

There are specific issues with commerce that can cause problems. Apart from selling something downloadable like software or reports (which are infinitely available) any other system has to take account of stock either in-house or from a wholesaler. Some of the issues are:
  • Shopping systems - product management, price list management, baskets, special offers, affiliate schemes
  • Payment handling - credit card, cheque, credit transfer, wire transfer, manual or automatic
  • Credit card transactions - merchant ID, AVS (address verification system)
  • Secure certificates
  • Drop shipping - shipping directly from a wholesaler
  • Integration with your existing sales order processing system
  • Serial number management (software sales only)
  • VAT processing - place of supply, place of delivery considerations, EU issues
  • Terms and conditions, copyright, privacy policy and securing 'personal information

Step 4
Legal

Legislation is starting to catch up with Internet trading and so this is a moving target. At present there are three main sets of legislation that affect websites:
  • Disability Discrimination
  • Distance Selling Regulations
  • Data Protection

The terms and conditions of trade should also be specific about the jurisdiction in force eg England & Wales or Scotland.

Step 5
Marketing and promotion

Some enterprises lend themselves more readily to search engine promotion than others: ceramic tiles are very difficult to promote because of the wide use of both the words ceramic and tile; a website selling Bewick engravings is going to be much easier to promote, not least because there's a proper noun in there.
Some important considerations are:
  • Getting useful traffic to your website - as opposed to inappropriate leads that waste your resources
  • Keywords/meta tags - important for some search engines but not the principal one: Google
  • Offline promotion - frequently more important than online promotion
  • Company livery should incorporate the website and email addresses - unbelievably frequently omitted

Step 6
Operational issues

Once the website is up and running there will be costs involved in promoting and maintaining it. Out-of-date websites are a turn-off for visitors and are therefore counterproductive.
Keeping the content of your website fresh may turn into something akin to magazine production where there is a need for continuous input. This requires the content management to be someone's responsibility on a weekly, monthly, quarterly basis as appropriate. In other cases it may just be a question of keeping course data or an events list up-to-date.

Source:
Yelena Claudia
Celine is a French luxury house founded in 1945 by Celine Vipiana. Today, it is an international luxury goods brand owned by LVMH, purchased in 1996 for 2.7 billion French francs ($540 million).

Celine was originally created as a made-to-measure children's shoe business that eventually grew into women's shoes and accessories. The ready-to-wear line debuted in the 1960s.

American fashion designer Michael Kors was named the first ever women's ready-to-wear designer and creative director for Celine in 1997. During his tenure at Celine, Kors turned the fashion house around with blockbuster accessories and a critically acclaimed ready-to-wear line. Kors designed for the label until 2004. Italian designer Roberto Menichetti was named creative director. After a disappointing year, Menichetti was replaced by Croatian designer Ivana Omazic. Omazic was a a former consultant for the brand and previously worked with Romeo Gigli, Prada, Jil Sander, and Miu Miu.

On September 4th 2008, the influential fashion portal WWDFashion announced that Bernard Arnault, president of LVMH, appointed Phoebe Philo as the new creative director of Celine. Philo will start at Celine in October 2008 and will present her first Celine collection next March for the fall-winter 2009 season, with a runway debut seven months later. Philo will replace Ivana Omazić, who, according to LVMH, failed to transform this second league brand into an essential flagship of worldwide prêt-à-porter. “By giving Philo Celine, we’re giving her a platform to express her vision,” said Pierre-Yves Roussel, chief executive officer of LVMH’s fashion division which owns Celine.

address: WWW.CELINE.COM





REVENUE MODEL

Present

There is no revenue model. The website is presenting the information about the company products variation that they are offering.

Recommendation

  • Make On-Line Shopping that make the customer can purchase directly at anytime and anywhere.

  • Financial Corporation can put their logo as advertising for branding activities. Ex: Master Card and Visa.




MARKET PLACE POSITION

Present

Manufacture

Recommendation

No Change





COMMERCIAL MODEL

Present

Celine’s Web Site is presenting the information about the company and its products. The information also a part of commercial activity because it can increase brand awareness and brand knowledge of Celine. But still without On-Line Shopping can’t get direct revenue.

Recommendation

Online Shopping with Fixed Price Sale, Celine should give the fixed price in selling its products. It also should provide different price for each country with each currency calculation.





TYPE

Present

Business to Customer

Recommendation

Celine should still use this type. Because Celine is the luxury brand so it must present the elegance without selling in high quantity.





LOCATION / PLACE OR PURCHASE

Present

Seller Controlled, where the seller has a total control of the trading activities. The seller assign the information that they think customer will be needed, the product they want to sell, and the price for each products.

Recommendation

No Change





Comparison to competitor website (LV)
LV (www.louisvuitton.com)

  • Detail View (Zoom, Rotate) of the products

    This feature enable customer to have a clear vision about the product from each angle. So the customer will be sure in order to purchase the product.

  • Have “Your Account” Menu

    With this online account the customers are enable to:

    • Purchase Louis Vuitton products

    • Subcribe the Louis Vuitton News Letter and receive the latest updates

    • Create a wish list of products to keep between visit to the website


    This menu is Customer Relationship Management model. This will be useful for Customer Retention activity which can maintain the relationship between customer and company.


Suggestion to www.celine.com

Appear as one of the top line brands in fashion world, Celine must develop the website as one of their important aspect in developing their business. The website already gives enough information about the company and product. The website also provides brand knowledge and creates customer perception. But, according to my perception, the website is not interactive enough. So, Celine should make online-shopping like any other top line brands did. It can make Celine more competitive in fashion business.
Yelena Claudia
Meta Services is a combination of many types of services. Meta Services could be describes as a concept that used in service layer for increased the reusability. With Meta Services, user can access the workflow through this service layer, and they execute the workflow by calling their service. Besides, Meta Services describes a way of abstracting and mapping a workflow to a service in computational Grid environment.  By using this, a workflow could adapt various service concepts such as Grid services, Web services, and Portal services without modification to the workflow. Meta Services also enables a workflow in Grid environment that can adapt various service concepts such as Grid services, Web Services, and portal service without modification to the workflow. Furthermore, historical performance data could be included in Meta Services and making a possible effective execution of the workflow. 

Source :
  1. Buraga, Sabin and Lenuta Alboaie. "A Metadata Level for the tuBiG Grid-aware Infrastructure". Faculty of Computer Science, "A. I. Cuza" University of Iasi