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IMPLEMENTATION OF IT STRATEGY ON E-COMMERCE IN BUSINESS

COMPETITION AS AN INCREASE IN COMPANY BUSINESS REVENUE (IN

MSMES)

Poppy Indri Hastuti

, Sri Indah

, Retno Ayu Dewi Novitawati

, Elly Lestari

Faculty of Economic, Tribhuwana Tunggadewi University, Malang, Indonesia

1,2,3,4

poppy.indrihastu[email protected]c.id

, indahsri729@gmail.com

, retta111171@gmail.com

lestariellz@yahoo.co.id

ABSTRACT

A very effective way to spread knowledge is web development. With the advent of online supply

channels that make it easy for potential clients to browse product details, request, or pay installments,

web innovation has greatly impacted companies (web-based companies). This indicates that online

deal exchangers have anticipated customers. Fair and legal levels of HR payouts, data, and concerns

about the economy or organizations, companies, and public compensation are evaluated almost from

one side of the planet to the other. The investigation in question is an emotional evaluation; the data

used is mandatory and optional; collection, assessment, and documentation used in the data collection

process; In addition, informal performance techniques are used in data request procedures. The use of

online sales by the character of MSMEs Tempe Putra Ridhlo Chips as opposed to the character of

MSMEs UD Mayla Jaya is proven to speed up transactions and facilitate the sale of goods to

characters. To facilitate ordering goods or products for customers or clients, it can also be used in

Ayam Geprek Ngamuk SMEs and Betis MSME Meatballs.

Keywords : Impelentation; IT strategy; E-commerce; Increased; Income; Company

INTRODUCTION

A very effective data channel for disseminating information is the web. With the

emergence of online sales channels that make it very easy for potential customers to see item

info, requests, or make payments, web innovation has a significant impact in the business world

(online business). Fair and equitable human resource investigations of business compensation,

knowledge, and awareness, speculation, and public payments essentially from one hemisphere

to the other. The degree of public welfare must be able to increase as high as possible as a

result of national growth. Indah et. al. (2021) Small business seeks to increase both its own

income and the country's income through its economic activities. The expansion of business

activities carried out by financial actors indicates changes in the volume of labor and goods

exchanged; As a result, business competition requires a business system that is ready to face

challenges and obstacles to generate more value from the growth of business activities (Rizal et

al., 2021).

According to data from We are Social and Hootsuite starting around 2020, web usage

has reached 175.4 million and dynamic virtual entertainment clients reached 160 million (We

are Social and Hootsuite s, 2020). As a result, the advancement of web data innovation causes

the use of web innovation to experience significant business growth. With increasing

innovation and increasingly fierce competition will have an impact on the development and

how MSMEs advertise their products to compete in product marketing (Pratiwi, 2019). The

nature of entrepreneurship and capital must also be maintained at its best level because it is an

important component in boosting the success of MSMEs.

The serious business sector is meant to benefit enormously from the use of innovation.

Organizations that can implement innovation across their organizations will be able to compete

in this market (Teece, 2010). The use of electronic commerce to promote various products or

services both in physical and digital structures is one form of innovation execution in order to

increase company competition and product sales (Gökmen, 2012). In addition to other

corporate stakeholders, investors, consumers, and governments will all have an influence on

how this technology is used (Park et al., 2014).

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The advantage of doing business online is that SMEs can continue to grow in number 
and can get open doors for companies and send open doors (Ibrahim et al., 2016). Through e-
commerce  sites,  manufacturers  can  quickly  change  price  lists  or  provide  information  to 
potential  clients  (Amit  &  Zott,  2017).  In  addition  to  being  beneficial  in  developing  a 
comprehensive  customer  database,  online  business  allows  for  better  evaluation  of  sales 
volumes. The maker may have information regarding the client's design that is being promoted. 
In  addition,  consider  important  information  that  will  help  systemic  promotion.  In  addition, 
dealing with useful buying exercises is facilitated by web-based businesses (Tai et al., 2010). 
Customers can save time by buying offline goods online. The benefits of e-commerce 
include the ability of consumers to transact quickly and easily, expansion of market networks, 
reduction of operational costs, and shortening of distance with customers (regardless of time or 
distance constraints) (Ratchford et al., 2022). While the disadvantage of doing business on the 
internet  is  the  growth  of  independence  because  exchanges  use  electronic  media  without 
meeting directly between merchants and customers, sometimes causing dissatisfaction because 
the  goods  displayed  on  the  screen  are  not  exactly  the  same  as  the  first  product,  ignorant 
because they can't collaborate directly (Putnam et al., 2016). Online transactions require that 
customers will be asked to provide various personal information to merchants (Li et al., 2011). 
Naturally, this need can interfere with categorization and raise concerns about the security of a 
given data (Braun et al., 2018).  The utilization of e-commerce  is  also difficult  due  to  non-
technical reasons, such as the fact that many consumers still do not trust merchants and find it 
difficult to break the habit of transacting online without first meeting with them. Indrahastuti 
(2019). 
Methods and benefits of online business in advancing aid and increasing organizational 
revenue  the  creators  who  were  the subjects of this  evaluation  argued  that  the  problem  was 
severe. So one of the key factors influencing an organization's product success is the use of 
data innovation processes in internet business. Online transactions between buyers and sellers 
can  be  accelerated  and  integrated  with  data  and  correspondence  innovations.  E-commerce, 
often  known  as  online  commerce,  is  a  subset  of  e-business  that  uses  network  technology, 
electronic mail  (email) database technology, and  other structures, such as  payment methods 
and product delivery systems (Treiblmaier & Sillaber, 2021). 
The use of e-commerce is increasingly needed by a company or organization to compete 
on  a  world  scale.  A  number  of  studies  place  a  strong  emphasis  on  the  efficiency  of  e-
commerce. In addition, research notes that internet trading has more beneficial benefits than 
negative ones. Today, many businesses, both small and large, rely on online commerce to grow 
their operations.   
E-commerce is essential to the business world because of the expansion of competition 
(Alexander Tjubandi & Saroso, 2023), the complexity of challenges, and the need to keep abreast 
of the world's advancements, which require innovative thinking (Liu et al., 2015). The use of 
web-based businesses is expected to accelerate the development of the business or corporate 
world,  including  small,  medium,  and  luxury.  If  the  company  uses  the  Internet  business 
correctly and according to the nature and scope of its operations, this positive influence will 
definitely be felt (Modgil et al., 2022). 
It  is  projected  that  e-commerce  will  play  a  huge  role  in  the  face  of  today's  highly 
competitive  commercial  climate  (Juliet  Orji  et  al.,  2022).  Companies  that  can  translate  the 
world of innovation into the business world are companies that are successful, reliable, and will 
usually grow. The use  of  web-based  companies is a way of making mechanical changes to 
display their goods (labor and products) to all locations and parts, both physically and digitally, 
locally  and  globally.  This  not  only  adversely  affects  the  development  of  online  business 
organizations,  but  also  does  not  always  work.    The  rapidly  growing  web  is  said  to  have 
contributed to rather cheap start-up costs, the ability to disperse large capital, and the use of a 
variety of specialized media (Ross & Blumenstein, 2015). Running extensive marketing with the 
goal of attracting a lot of visitors is not always profitable. 

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E-business today is quite significant due to the increasing reputation for saving time and

money for various businesses. Verifiable analysis of the e-business process overview has

created a good and rational approach to e-business but fails to convey realistically. Drawing on

senior administration is one aspect of effective Web procedure design. Innovative demands

contradict the successful implementation of the e-business push, which requires a higher level

of contact between the president and the CIO. Many designers consider it important to integrate

e-business into global corporate strategy.

Growth initiative displays do not guarantee results. In the end, the purpose of

promotional activities is to increase consumer interest in the product being promoted, which

will also have a good impact on retailers (Dwivedi et al., 2021). Depending on the function and

purpose of the product or service, media and channels will be needed to advertise it. This is

important for traditional businesses, but online businesses also need to know which mediums

and channels will always benefit their operations. Anyone can do business anytime and from

anywhere with internet marketing, negating the need to travel far. As internet and online

advertising platforms continue to evolve, web-based viewing will also continue to grow.

especially through sites, at WEB.

Since the development of websites, more and more business organizations have started

doing business online by utilizing www (internet) technology. Websites can be created for

small and large companies to offer goods and services using addresses with "dot com" (.com)

domains. The address space, which is usually referred to as the location of a web-based

company, is developed taking into account the requirements and needs of the organization as a

channel for trading activities. These locations compete with each other for the attention of

buyers and sellers. Regarding websites for conducting international trade, such as

Amazon.com, Ebay.com, lazada.com, gmarket.com, reveneve.com, Tokobagus.com,

Belanja.com, Open Lapak.com, and Beriaga.com are some of the various local ecommerce

websites available today (Hasan et al., 2012).

Related to the suitability of the location, they continue to update and create features that

make it easier for merchants to advertise their goods and services, such as simple entry through

portable Android phones and Blackberry. The ease of joining makes more and more vendors

advertise their goods. Both services and goods Focus on the progress dealers need when

conducting product and service advertising campaigns before choosing a suitable platform.

There is no doubt that advertising on online business sites will have a significant impact on

retailers. A good marketing channel will be able and ready to provide benefits and

consequences that help achieve the goals of the advertising activity itself. It can also make it

easier for buyers and sellers to establish contact and maintain regular communication (Mora

Cortez & Johnston, 2020).

By moving stores and displaying supporting products with the latest promotional

updates that appear (Ma et al., 2016), as well as by creating contact information and price

controls for labor supply alerts and goods in stock, as well as by providing free advertising for

customers and regional inclusion throughout Indonesia, among many other methods, online

businesses actually allow vendors to showcase their goods quickly, effective, and without

spending money.

SMEs are the focus of this investigation. The selection of MSMEs is justified by the fact

that they are one of the economic pillars of society and play a key role in it. MSMEs have the

potential to create many jobs and reduce unemployment. MSMEs make a significant

contribution in increasing Indonesia's gross income (Suhendri, 2019; Suhendri & Risnaningsih,

2012).

RESEARCH METHOD

The type of research used in this research is a descriptive method with a qualitative

approach. Descriptive method to describe the importance of the development of the application

of the E-Commerce system in increasing the income of MSME development. In this study, the

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research sites are Putra Ridlho tempeh chips UMKM, UD Mayla Jaya Tempe chips, Ngamuk

Geprek Chicken UMKM, Pedet Meatball UMKM.

The types of data used in this study are secondary data and primary data. For primary data

is; obtained by submitting an open questionnaire containing questions to respondents, namely

Micro, Small and Medium Enterprises (MSMEs) entrepreneurs in Putra Ridlho tempeh chips

MSMEs, UD Mayla Jaya Tempeh chips, Ngamuk Geprek Chicken MSMEs, Pedet Meatball

MSMEs. Malang city, East Java. By using an open questionnaire so that the response can

provide answers according to the circumstances and conditions. Secondary data sources for this

research were obtained from Geprek Kak Rose Suhat UMKM Malang. Jl Soekarno Hatta

No.15, Mojolango, Lowokwaru District, Malang City, East Java.

The data collection techniques used by researchers are: Interviews, observation and

documentation, in the form of the importance of using E-Commerce in increasing revenue in the

development of Putra Ridlho tempeh chips MSMEs, UD Mayla Jaya Tempeh chips, Ngamuk

Geprek Chicken MSMEs, Pedet Meatball MSMEs. Malang city, East Java.

In this type of qualitative research, data processing does not have to be done after the

data is collected or data processing is complete (Moser & Korstjens, 2018). In this case,

temporary data collected, existing data can be processed and data analysis carried out

simultaneously. At the time of data analysis, it can return to the field to find additional data

deemed necessary and process it again. Suyanto and Sutinah (2016), said data processing in

qualitative research is carried out by classifying or categorizing data based on several themes

according to the focus of the research. The results of data analysis in this study were presented

using informal presentation methods. Informal presentation of data analysis results is the

presentation of data analysis results using ordinary words (sudaryanto: 2017). In this

presentation, the rules are conveyed in ordinary words, words that when read immediately can

be immediately understood.

RESULT AND DISCUSSION

Data Presentation

1. Reasons for the Implementation of E-Commece in the Figure of MSMEs Tempe

Chips Putra Ridhlo

Based on the results of an interview with Mr. Khosin as the owner of the Tempe

Putra Ridhlo Chips MSME, the reason for implementing e-commerce at the Tempe Putra

Ridhlo Chips MSME store: "Because online sales can be fast in the sense that outsiders can

know. In addition, it can make it easier for consumers or customers to know what products

are in the character and for enthusiasts can directly order through Wa, Shopee and Goofood

without directly visiting the character “(Interview April 11, 2023).

Based on the results of an interview at UD Mayla Jaya MSMEs, Mr. Ferdi as the

Head of UD Mayla Jaya MSMEs: "Its application is to increase buying and selling power

and introduce products to be sold” (Interview May 9, 2023)

Based on the results of an interview at the Ayam Geprek Ngamuk MSME with Mr.

Yayat as the leader of the Ayam Geprek Ngamuk MSME: "The reason I use e-commerce is

because the same trend makes it easier for the workers or figures to get more customers who

continue to shorten the time as well as the same development can be further and wider (interview

May 5, 2023).

Based on the results of an interview at the Bakso Pedet MSME with Mba Nadia as

the leader of the Bakso Pedet MSME: "the application must be online because I am good at

online digital marketing also I believe that the difference between offline and online is because it is

wider in the sense that we can reach all regions of Indonesia if on offline we only sell around the

character but if online can sell anywhere and so far the sales can be sent to Banten until send to

Jakarta, Tangerang, Bali even to Hong Kong with Singapore because online is the great thing about

using E-Commerce.

From the results of the interview above, it can be concluded that the reason for

implementing e-commerce in the Tempe Putra Ridhlo Chips MSME store, UD Mayla Jaya

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MSMEs, Ayam Geprek Ngamuk MSMEs, Meatball Calf MSMEs is the reason for

implementing E-Commerce to make it easier for customers / consumers to order goods or

available products.

2. Difficulty Level of Doing E-Commerce / Customer Sales

Based on the results of an interview with Mr. Kosin, as the owner of the Tempe

Putra Ridhlo Kripik MSME, the level of difficulty in selling E-Commerce customers:

"Actually, the level of difficulty in selling E-Commerce does not exist, but the problem in

making transactions in terms of when the goods have been sent is greater because most

customers of the goods arrive but the transaction is late" ( interview April 11, 2023 ).

Based on the results of an interview at UD Mayla Jaya MSMEs with Mr. Ferdi as the

leader of Mayla Jaya MSMEs: "The level of difficulty lies in the beginning of

manufacturing/production so it must be paused to think about what ways to do to attract

customer attention regarding the products we sell" (interview May 9, 2023).

Based on the results of an interview at the Ngamuk geprek chicken MSME with Mr.

Yayat as the leader of the Ngamuk geprek chicken MSME: "for the difficulty, the

commission determination is then the same as the price of cendrungflugh out is too high

where in contrast to other turnover, the price is low given a high price" (interview May 5,

2023)

Based on the results of an interview at the calf meatball MSME with Mba Nadia as

the leader of the calf meatball MSME: "for the dnifficulty of using E-Commerce if it is

online, it is difficult only at the beginning where we think about how to introduce our

products to online where we make the brand raise the brand so that the pedat meatballs are

known at the beginning it is very difficult with the costs incurred whether it is endors costs,

Facebook ads, instagram, to go viral which is done because it is not immediately viral, but

if now direct posts can be ordered.

From the results of the interview above, it can be concluded that the level of

difficulty in selling e-commerce at the Tempe Putra Ridhlo Chips MSME store, UD Mayla

Jaya MSME, Ayam Geprek Ngamuk MSME, Bakso Calf MSME from customers in delays

in making transactions, when the goods have reached the customer / buyer.

3. Comparison of Revenue Before and After Using E-Commerce

Based on the results of an interview with Mr. Koshen as the owner of the Tempe Putra

Ridhlo Kripik MSME, a comparison of income before and after using E-Commerce:

"Obviously there is a difference in the meaning that before doing online sales in my store, I

only rely on local sales, which is meant around the area here in Malang City. But with

online sales it can be known all over the world, including one of them because online sales

of this product can be known to Singapore, Thailand, Malaysia ". (interview April 11,

2023).

Based on the results of an interview at UD Mayla Jaya MSMEs with Mr. Ferdi as the

leader of Mayla Jaya MSMEs: "The increase in income is quite good because sales through

E-Commerce make it easier to introduce products in our character and through E-

Commerce we can also sell products quickly.

Based on the results of an interview at the Ayam Geprek Ngamuk MSME with Mr. Yayat

as the leader of the Ayam Geprek Ngamuk MSME: "for the current income in 2023 50%

online 50% online, for previous years E-Commerce is very helpful because besides the

commission is low the same level of interest in consumer purchasing power is high now it

has begun to fall" (interview May 5, 2023)

Based on the results of an interview at the Bakso Pedet MSME with Mba Nadia as the

leader of the Bakso Pede MSMEt

“For online sales revenue with Ofline, it is clearly different if ofline sells on oflite, we only

know people buy 5,000, 10,000 if online is more expensive than the price of 5,000 can be

sold 25,000 in 1 dose (interview May 6, 2023).

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From the results of the interview above, it can be concluded that the comparison of income

before and after using e-commerce at the Tempe Putra Ridhlo Chips MSME store, UD

Mayla Jaya MSME, Ayam Geprek Ngamuk MSME, Bakso Pedet MSME that this online

sale can help and know the sale of any products in the figure of Tempe Putra Ridhlo Chips

MSMEs and can be known by other countries.

4. Strategies used by companies in competing when using e-commerce:

Based on the results of an interview with Mr. Kosin, as the owner of MSMEs Kripik

Tempe Putra Ridhlo said that, the strategy used by the company in competing when using

E-commerce: "If the strategy in selling products in our character is that our customers /

buyers continue to be tested first, if they are not tested, the risk is very large, then the

buying and selling process regarding financial playback is slower". (interview April 11,

2023).

Based on the results of an interview at UD Mayla Jaya MSMEs with Mr. Ferdi as the

leader of Mayla Jaya MSMEs: "The strategy we use in using E-Commerce is that we often

give discounts to customers with the aim of attracting more customers to buy the products

we market”

Based on the results of an interview at the Ngamuk geprek chicken MSME with Mr.

Yayat as the leader of the Ngamuk geprek chicken MSME: "for the strategy we use does

not exist but we can benefit from the results of customer assessments of our figures"

(interview May 5, 2023)

Based on the results of an interview at the Bakso Pedet MSME with Mba Nadia as

the leader of the Bakso Pedet MSME: "The strategy uses word analysis then after that the

compotitor is better modified using ATM (Amati. Imitate and Modify). (Interview May 6,

2023)

From the results of the interview above, it can be concluded that the strategy used by

the company in competing when using e-commerce in the figure of MSMEs Kripik Tempe

Putra Ridhlo, UMKM UD Mayla Jaya, UMKM Ayam Geprek Ngamuk, UMKM Bakso

Calf is that the owner allows buyers / customers to try first the products sold that each

customer wants to buy so that it cannot disappoint.

5. Using e-commerce or online sales, companies get benefits according to the costs

incurred

Based on the results of an interview with Mr. Kosin, as the owner of the Tempe

Chips MSME, Putra Ridhlo said that, using E-Commerce or online sales, the company

benefits according to the costs incurred: "Yes, there are advantages in the sense that it must

also be estimated that the term cost is designed in advance so that it can be known in

spending on ingredients for making products so that prices can be given that in accordance

with expenses and get profits that match the price of the product". (interview April 11,

2023).

Based on the results of an interview at UD Mayla Jaya MSMEs with Mr. Ferdi as the

leader of Mayla Jaya MSMEs: "for E-commerce or online sales at this time it is in

accordance with what we expected"

Based on the results of an interview at the Ayam Geprek Ngamuk MSME with Mr.

Yayat as the leader of the Ayam Geprek Ngamuk MSME:

"For the profit is a little but by using E-Commerce this can make it easier to sell

products in our character" (interview, May 5, 2023)

Based on the results of an interview at the Bakso Pedet UMKM with Mba Nadia as

the leader of the Bakso Pedet MSME: "precisely by using online the costs we spend are not

as much as selling offline. If oneline has no costs incurred because we only use cellphones

and quotas, we post our products with pictures then different from ofline we have to rent

shophouses, pay people, the same operational costs. (interview, May 6, 2023)

From the results of the interview above, it can be concluded that in using E-

Commerce or online sales in the figures of MSMEs Kripik Tempe Putra Ridhlo, MSMEs

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UD Mayla Jaya, MSMEs Ayam Geprek Ngamuk, MSMEs Meatball Calves companies get

profits according to the costs incurred for profits in selling products in advance, the price is

designed so as not to cause losses in the sale of these products.

Discussion

Reasons for Implementing E-Commerce at the Tempe Putra Ridhlo Chip MSME Store

Based on the results of research Reasons for the Implementation of E-Commerce in

MSME Figures Tempe Putra Ridhlo Chips When compared with the Application of E-

Commerce in UD Mayla Jaya MSMEs, online sales can facilitate the sale of products in the

figure, and accelerate sales, as well as the Application of E-Commerce at UMKM Ayam

Geprek Ngamuk, UMKM Bakso Calf to make it easier for customers / consumers to order

goods or products available.

The Difficulty Level of Doing E-Commerce Sales

Based on the results of the study, the level of difficulty in selling E-Commerce MSMEs

Tempe Putra Ridhlo Chips is a delay in transactions when compared to UD Mayla Jaya

MSMEs, the level of difficulty in producing goods products that will be sold through E-

Commerce, Ayam Geprek Ngamuk MSMEs, calf meatball MSMEs from customers and how to

introduce products online and determining the price of the product to be sold to be equivalent to

sales in other figures.

Comparison of Revenue Before and After Using E-Commerce

Based on the results of research conducted at MSMEs Kripik Tempe Putra

Ridhloregarding income before and after the implementation of online sales, the products sold

in this figure can be known by many people and even the whole world, when compared to UD

Mayla Jaya MSMEs, the previous income was small with the existence of E-Commerce This

has changed with the increase in income, as well as Ayam Geprek Ngamuk MSMEs and Bakso

Calf MSMEs that with this online sale can help and know the sale of any products and can be

known by other countries and the income in online sales increases or is equivalent to the

appropriate expenditure and income.

Strategies used by companies in competing when using e-commerce

Based on the results of research conducted at MSMEs tempe chips putra ridhlo The

strategy used by companies in competing when using e-commerce is that in making sales,

customers can directly try products for those who go directly to the place and those who place

online orders can be given discounts on products sold when compared to UD Mayla Jaya

MSMEs is to provide discounts with the aim of attracting customer attention, Unlike the Ayam

Geprek Ngamuk MSMEs and Bakso Calf MSMEs, the owner allows buyers / customers to try

in advance the products sold that each customer wants to buy so that they cannot disappoint.

Using e-commerce or online sales, companies get benefits according to the costs incurred

Based on the results of research conducted at Tempe Putra Ridhlo Chip MSMEs, if you

look at the benefits in accordance with the costs incurred, where the prices presented are in

accordance with expenses and get profits in accordance with product prices, when compared to

UD Mayla Jaya MSMEs for their income in accordance with expenses in selling products, while

Ngamuk geprek chicken MSMEs for their profits are small but can facilitate the sale of

products, in contrast to calf meatball MSMEs The company earns profits in accordance with the

costs incurred, for profit in the sale of products in advance the price is designed so as not to

cause losses in the sale of these products.

CONCLUSION

The implementation of IT strategies on E-Commerce in business competition as an

increase in business income of MSME companies Tempe Putra Ridhlo chips the application of

E-Commerce in the figure of Tempe Putra Ridhlo chips MSMEs with E-Commerce to facilitate

customers / consumers in ordering goods or available products, pat overcome the level of

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difficulty in selling E-Commerce   from the customer in the delay of making a transaction, when 
the  goods  have  reached  the  customer  /  buyer.  With  the  existence  of  E-Commerce,  the 
comparison of income before and after can help and know the sales of any products in the figure 
of MSMEs Tempe Putra Ridhlo chips and can be known by other countries.  
The strategy used by the company in competing when using E-Commerce is that the 
owner allows buyers / customers to try in advance the products sold that each customer wants to 
buy so that they cannot disappoint.in using E-Commerce or online sales the company benefits 
according to the costs incurred for profit in selling products first the price is designed so as not 
to incur losses in the sale of such products.  
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