Modeling e-Commerce for Watersport Business in Nusa Dua Bali

Based on IT-Business Alignment

Kadek Cahya Dewi

, Putu Adriani Prayustika

, Ni Kadek Dessy Hariyanti,

Ni Kade Elvira Diana Sasti, Made Riska Kusumadewi and I Komang Krisna Raditya

Department of Business, Politeknik Negeri Bali, Badung Bali, Indonesia

Keywords: e-Commerce, IT-Business Alignment, Nusa Dua, Tourism, e-Business.

Abstract: The research purpose was to develop an e-commerce model for the watersport business in Nusa Dua Bali

based on IT-Business alignment. This research was a research and development research. It began with the

plan stage by collecting data, then the development stage by IT-Business Alignment analysis based on the

Strategic Alignment Model and continued by developing an e-commerce model and system mockup. Finally,

the Evaluation stage were conducted by validation through focus group discussion with purpose model and

mockup testing by inviting the experts and stakeholders. The result was the proposed e-commerce model for

watersport business in Nusa Dua Bali is adopted the B2B2C e-commerce model. The media used are the

official website and official social media, then the entities involved are brokers and customers. The business

processes were Business to Business (B2B) between watersport businesses and brokers, and Business to

Consumers (B2C) between watersport businesses and customers. The system mockup created for the official

website which was the main component in the proposed model. The mockup was created by Mockplus

software. Based on the evaluation results, it can be concluded that the model and mockup created were stated

to be attractive and relevant to the needs.

1 INTRODUCTION

The tourism business is a very promising business

and is the main business core for the island of Bali

Indonesia. However, the COVID-19 pandemic has

greatly affected the continuity of the tourism

business, especially in Bali. Many SMEs in the Nusa

Dua area of Bali are no longer able to maintain their

business. Entrepreneurs who are local residents in the

sense that they are not burdened with land rent, are

still trying to maintain their business. One of them is

a business in the field of water sports.

Currently, the implementation of e-business in

Indonesia is growing. Business processes in various

business activities have been assisted by e-business

such as product design, procurement, production,

marketing and distribution activities. Some of the

motivations in implementing e-business include: (1)

time efficiency, (2) cost efficiency, (3) flexibility in

marketing, (4) accuracy, (5) financial planning, and

(6) supplier relationship (Saptadi, Sudirman,

https://orcid.org/0000-0002-8922-6908

https://orcid.org/0000-0001-8280-9601

Samadhi, & Govindaraju, 2015). Some of the best

practices that have implemented e-business in the

business world was research (Pallathadka, et al.,

2021) applied artificial intelligence to business

management, e-commerce and finance. Research

(Wang, Hong, Li, & Gao, 2020) described marketing

innovations through e-commerce in the face of covid-

19. Research (Nikolaos, Panayiotou, & Stavrou,

2021) focused on researching Government to

Business (G2B) e-services. Research (Labanauskaitė,

Fiore, & Stašys, 2020) used e-marketing as a means

of communication in the tourism industry.

E-commerce is part of e-business. Based on

(Combe, 2006) and (Chaffey, 2009), e-commerce is

the activity of buying and selling, marketing and

servicing products and services through computer

networks. In fact, E-commerce is more about buying

and selling using the internet. E-commerce should be

considered as all transactions mediated electronically

between an organization and the third parties with

which it relates. With this definition, non-financial

708

Dewi, K., Prayustika, P., Hariyanti, N., Sasti, N., Kusumadewi, M. and Raditya, I.

Modeling e-Commerce for Watersport Business in Nusa Dua Bali Based on IT-Business Alignment.

DOI: 10.5220/0011875000003575

In Proceedings of the 5th International Conference on Applied Science and Technology on Engineering Science (iCAST-ES 2022), pages 708-713

ISBN: 978-989-758-619-4; ISSN: 2975-8246

transactions such as customer requests for more

information will also be considered as part of e-

commerce (Combe, 2006), (Chaffey, 2009). Even the

use of artificial intelligence (AI) and machine learning

in e-commerce applications has been discussed in

(Nandhini & Marseline KS, 2020). (Soni, Sharma,

Singh, & Kapoor, 2020), (Di Vaio, Palladino, Hassan,

& Escobar, 2020), (Di Vaio, Boccia, Landriani, &

Palladino, 2020) (Kumar & Trakru, 2020), and (Soni,

Sharma, Singh, & Kapoor, 2019).

The COVID-19 pandemic has changed the

economy a lot. Research (Wang, Hong, Li, & Gao,

2020) stated that weak consumer demand is one of the

biggest challenges in the crisis due to the COVID-19

pandemic. Seeing the phenomena and situation that

developed after the COVID-19 pandemic, it is

important to develop a new e-commerce model for

the water sports business in Nusa Dua Bali. One of

the key success factors of e-business is the effective

use of IT to improve business performance in all

phases and ensure sustainable competitiveness.

Therefore, organizations support to use IT services

effectively which leads directly to the optimization of

performance (Idrees & Ibrahim, 2015). In order to

produce the right e-commerce model for the water

sport business in Nusa Dua Bali, it is necessary to

build IT alignment with the business.

One method that can be used to achieve IT and

business alignment (IT-Business Alignment) is the

Strategic Alignment Model (SAM). The first SAM

was introduced by Henderson and Venkatraman in

1993 (Kudo, Iizuka, & Miyamoto, 2012). SAM

consists of four quadrants consisting of two internal

domains and two external domains, namely the

business strategy quadrant, the IT strategy quadrant,

the company infrastructure quadrant and its various

processes, as well as the IT infrastructure quadrant

and its various processes. SAM can be used as a basis

for assessing the alignment of IT strategy with

business strategy (Sihotang, 2017). Previous research

that uses SAM is research (Primasari, 2022) which

formulates strategies to achieve IT-Business

alignment in the gaming industry in Indonesia.

Research (Sihotang, 2017) uses SAM in

manufacturing companies.

The basic idea of this research (can be seen in

Figure 1) is to develop an e-commerce model for the

water sport business in Nusa Dua Bali based on IT-

Business alignment. The created model is completed

with the mock-up which makes the model closer to the

original product. There was no previous research that

has developed an e-commerce model for the water

sport business in Nusa Dua Bali based on IT-Business

alignment after the COVID-19 pandemic impact.

Figure 1: State of The Art of The Research.

2 RESEARCH METHODOLOGY

This research was conducted by a research and

development research approach by adopting the CBI

(Computer Based Instruction) model which consists

of 3 stages, namely Plan, Development and

Evaluation. The activity stage began with the plan

stage by collecting data. The development stage was

an IT-Business Alignment analysis based on the

Strategic Alignment Model (can be seen in Figure 2)

and a SWOT description from the results of the IT-

Business Alignment analysis. The development stage

is then continued by developing an e-commerce

model equipped with a business model, use case

diagram, and system mockup. Finally, the Evaluation

stage were conducted by model and mockup

validation activities through focus group discussions

with purpose model testing by inviting the experts

and stakeholders.

Figure 2: Strategic Alignment Model (Kudo, Iizuka, &

Miyamoto, 2012).

Data collection techniques used observation,

online searches as literature studies, in-depth

Modeling e-Commerce for Watersport Business in Nusa Dua Bali Based on IT-Business Alignment

709

interviews and focus group discussions. Observations

were made on the watersport business in Nusa Dua

Bali. Literature study through online search with e-

commerce topics, strategic alignment model, SWOT

analysis, system mockup. In-depth interview with the

main resource person were a watersport entrepreneur,

namely HOTDOG Waterport Nusa Dua. The focus

group discussion invited experts, research teams and

stakeholders (watersport entrepreneurs).

3 RESULTS AND DISCUSSIONS

3.1 The Proposed e-Commerce Model

Based on the IT-Business alignment, the proposed e-

commerce model for watersport business in Nusa Dua

Bali is adopted the B2B2C e-commerce model. The

B2B2C watersport model consists of 2 components

and 2 business processes. The B2B2C watersport

model is illustrated in Figure 3.

The model components consisted of the media

and the entities involved. The media used are the

official website and official social media, then the

entities involved are brokers and customers. The

watersport business in Nusa Dua Bali maintained

good relations with brokers. There are 3 types of

brokers in watersport business in Nusa Dua Bali,

namely brokers who was marketing products through

their own website, brokers who was marketing

products through social media, and conventional

brokers who was word-by-mouth looking for

customers. Meanwhile, the customers in this

watersport business consist of personal type

customers and corporate customers.

Research (Labanauskaitė, Fiore, & Stašys, 2020)

stated that websites, social networks, emails,

reservation pages are the recommended tools for

high-performing businesses in the tourism industry.

Mobile applications were not very reliable and did not

fully meet the needs of users, but their interest is

growing. The media involved in the B2B2C

watersport model in Figure 4 adopt the results of

research (Labanauskaitė, Fiore, & Stašys, 2020) and

(Hansopaheluwakan, et al., 2020) and also based on

research (Dwivedi, Ismagilova, Huges, & Kefi, Aug

2021) which stated that the selection of an e-

commerce platform should depends on the target

consumer and marketing strategy.

The business processes in the proposed model

were Business to Business (B2B) between watersport

businesses and brokers, and Business to Consumers

(B2C) between watersport businesses and customers.

Both of these business processes are provided on the

official media website. The official social media is

associated with the B2C section of the official

website.

Research (David, 2021) stated that the use of e-

ordering has a positive and significant effect on

market share, sales volume and the number of tourist

arrivals. As a result, the use of e-ordering was a major

factor determining performance in tourism

companies. In addition, the use of e-advertisement

had a significant influence on market share and the

number of tourist visits. Moreover, e-payments

affected the number of tourist visits. The number of

tourist visits to the company was significantly

influenced by e-advertisement, e-ordering and e-

payment as the use of e-commerce. This confirmed

that the increase in the use of e-commerce results in a

greater influence on the number of tourist visits in the

tourism sector. Therefore, increasing the level of use

of e-commerce improved the performance of SMEs

in the tourism sector. This is supported by research

(Betts, 2020) which found that most (85%) e-tour

operators think that there is a positive impact of e-

commerce technology on e-tour operations.

The B2C section of the website, hereinafter

referred to as the frontend website, consisted of the

following features:

1. Home

Equipped with weather information at

watersport locations such as research (Daries,

Cristobal-Fransi, & Ferrer-Rosell, 2020).

2. Facilities

Complete facilities offered include photo and

video creation services.

3. Products & Services by displaying the public

rate.

4. How to order

Based on research (Fattah & Arman, 2014),

organizational culture is important, so on this

page the website displays the order feature via

the WhatsApp application with the reason that it

can still be customized or negotiated prices.

5. Reservations

Likewise, the reservation page will display an

option in the form of "leave your contact

(WA/Email) then our marketing will contact

you"

6. Payment type information

7. E-tour

Showing the experience of playing through

video media that will increase interest as stated

in the study (Betts, 2020).

8. Testimonials

This page displays posts about the experiences

of customers who have played. The testimonial

iCAST-ES 2022 - International Conference on Applied Science and Technology on Engineering Science

710

page is an interpretation of the e-WOM. Several

previous studies that discussed the importance

of e-WOM were research (Reyes-Menendez,

Saura, & Martinez-Navalon, 2019), (Sa’ait,

Kanyan, & Nazrin, 2016), (Bataineh, 2015),

(Zhao, Wang, Tang, & Zhang, 2020), and

(Yang, Cheng, & Tong, 2015).

Testimonials have several indicators, namely: (1)

Satisfaction, (2) Quality, (3) Trust, (4) Comments of

the watersport team help, and (5) Comments of the

watersport team understanding.

The indicator on testimonials is very important

because it is based on research (Sa’ait, Kanyan, &

Nazrin, 2016) that it was important to focus on the

accuracy of e-WOM. Because the more accurate the

message, the more it affects purchase intention.

Testimonials could increase the confidence of future

customers about the products or services provided.

This is also in line with research (Bataineh, 2015) and

(Zhao, Wang, Tang, & Zhang, 2020) regarding the

effect of e-WOM quality. Research (Buhalis, López,

& Martinez-Gonzalez, 2020), (Kitsios, Mitsopoulou,

Moustaka, & Kamariotou, 2022), and (Meilatinova,

2021) stated that the impact of satisfaction and trust

variables was greater than other variables in customer

repurchase and word-of-mouth intentions.

The B2B section of the website, hereinafter

referred to as the backend website, consisted of the

following features:

1. Master data broker

Anyone who comes with a customer is treated

as a broker and gets the same right to get a

commission from the total price of the

watersport services that was chosen by the

customer. Each broker's data is recorded and

managed.

2. Brokerage transactions

It record date, services type, number of

customers, total price, commission amount.

3. Broadcast message

A feature for sending broadcast information to

all brokers

4. Generate Report

3.2 Mockup System

This research made a mockup system for the official

website which is the main component in the proposed

model. The mockup is consisted of the backend

website and the frontend website. The mockup was

created by Mockplus software. Based on the

evaluation results, the model and mockup created

were stated to be attractive and relevant to the needs.

There were 31 pages have created for representing

the backend website mockup. Some of them is

illustrated in Figure 3 and Figure 4. Figure 5 is

illustrated one of the frontend mockup from total 10

pages.

Figure 3: Add New Broker Transaction Mockup.

Figure 4: Broadcast Message Mockup.

Figure 5: Home Mockup.

Modeling e-Commerce for Watersport Business in Nusa Dua Bali Based on IT-Business Alignment

711

4 CONCLUSIONS

Based on the IT-Business alignment, the proposed e-

commerce model for watersport business in Nusa Dua

Bali is adopted the B2B2C e-commerce model. The

B2B2C watersport model consists of 2 components

and 2 business processes. The model components

consisted of the media and the entities involved. The

media used are the official website and official social

media, then the entities involved are brokers and

customers. The business processes in the proposed

model were Business to Business (B2B) between

watersport businesses and brokers, and Business to

Consumers (B2C) between watersport businesses and

customers. Both of these business processes are

provided on the official media website. The official

social media is associated with the B2C section of the

official website. This research made a system mockup

for the official website which is the main component

in the proposed model. The mockup is consisted of

the backend website and the frontend website. The

mockup was created by Mockplus software. Based on

the evaluation results, the model and mockup created

were stated to be attractive and relevant to the needs.

ACKNOWLEDGEMENTS

Gratitude is dedicated to Politeknik Negeri Bali who

has funded this researchand support for this research.

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