SCHOOL OF COMPUTING

UUM COLLEGE OF ARTS AND SCIENCES

Second Semester Session 2022/2023 (A222)

STID3034 Information Technology Management

Assignment 1 (Individual)

The Impact of e-business on Organizations and Consumers

Prepared For:

Prof. Dr. Zahurin Bt Mat Aji @ Alon

Prepared By:

Kireina Shafira Hidayat (276436)

“Integrity Pledge”

I hereby declare that this assignment is prepared by my own work and effort to the best of my
knowledge, the assignment contains no material previously published or written by another person,
except where due acknowledgment has been made in the text.
1. Personalized Marketing
Based on the Artificial Intelligence application above, personalized marketing is a
strategy that uses analytical data that significantly impacts an organization and
consumers. Personalized marketing can be used to offer product recommendations
and customized marketing so that it can engage buyers, generate revenue, and also
brand loyalty.
2. Chatbots
Chatbots are artificial intelligence applications that can be used in e-business to
interact with customer questions and answers. In e-business, chat is useful for
providing product-related information, purchasing products, and assisting in customer
service. Using chatbots will help businesses save human resources and time efficiency
to respond to customers with routine questions and increase response time.
3. Customer Service
Customer service is used in e-business to provide relevant solutions and analyze
customer inquiries. Customer service also includes an automatic email response
feature as a representative for e-business companies regarding satisfaction with the
services provided.
4. Predictive Analytics
Predictive analytics analyzes big data, revenue impact, and mobile and web
conversions and optimizes pricing strategies and inventory to meet customer needs
more effectively.

 Tokopedia
Tokopedia uses the Recommendation System to read the characteristics or behavior of
each user. When the user often buys or sees an item, the Tokopedia system will
recommend other products related to what the user has previously seen or searched
for.

The Recommendation System uses machine learning to see all the products on
Tokopedia, and the machine will catch the existing patterns. When a user clicks on a
product, the pattern will be seen by the pattern in machine learning.
Recommendations will be sent on the user's homepage if the product is related and
appropriate.
 Tokopedia uses Recommendation Systems Playbook with two methods Session-
Based Recommendation and Ranking Based Recommendation. These two stages
determine user activity patterns so that later machine learning can provide appropriate
product recommendations.

Session-Based Recommendation is used to recommend products based on the

closeness of the vector of products made with session data, where the data session
itself is all activities carried out by each user within a certain period. Problems or
issues can be resolved at this stage when the item the user is looking for is not ready
or wants to replace another product variant.

Rank-Based Recommendation is more accurate in recommending a product to each

user because the model uses product features and user features that make it possible to
capture interactions between these features.

 Blibli.com
Blibli.com develops customer support methods that combine human and technical
touch in chatbots powered by artificial intelligence. CLARA stands for (Chat Live
and Recommendation Assistant), a chatbot powered by artificial intelligence (AI) that
will assist clients in answering simple queries.

CLARA may recommend the most popular gadget products, including specifications,
to help you navigate the purchasing and payment processes. Simply entering "Hello
Clara" in the CLARA Facebook Messenger chatroom will present you with several
alternatives, one of which is to provide recommendations for the most popular gadget
products sold at Blibli.com, along with the characteristics of the gadget in question.
 Chatbots impact business organizations and consumers.
 Impact on business organization

CLARA offers businesses cost-effective solutions for customer support by automating

responses to simple inquiries, freeing humans to focus on more complex issues
aiming for faster response times, reduced waiting times, and increased customer
satisfaction.

CLARA is available 24/7 as a virtual assistant that caters to customers' needs

regardless of their time zone or preferred interaction time.

By handling simple inquiries and providing product recommendations, CLARA

improves the efficiency of customer support operations. Allows human agents to
tackle more complex tasks and handle a larger volume of inquiries without additional
staffing.

Through its interactions with customers, CLARA generates valuable data that can be
analyzed to gain insights into customer preferences, frequently asked questions, and
popular products. This data can be used to make informed decisions regarding product
development, marketing strategies, and improving overall customer service.

 Impact on consumer
CLARA provides immediate assistance to consumers, eliminating the need to wait for
customer service. Saves time and delivers prompt answers to simple queries, enabling
consumers to make quick decisions or resolve issues efficiently.

CLARA's personalized recommendations help consumers navigate their purchasing

journey by suggesting popular gadget products that align with their preferences and
specifications.

With its 24/7 availability, CLARA ensures that consumers can access support
whenever required, regardless of business hours or time zones. This flexibility caters
to diverse schedules, offering convenience and accessibility.
CLARA's AI-powered system guarantees consistent and accurate responses,
minimizing the chances of human errors. Consumers can rely on CLARA for reliable
information, reducing confusion and enhancing their overall experience.