Applications E-Business: Innovation Model of Small Medium Enterprises Development Batik Tulis in East Java to Face Global Market

Long term goal of this research is to change the bu siness method which using traditional ways by using internet at IKM Batik Tuli s in east java, to enlarge market target through overseas and develop competition in global market. The specific target to be reach are attribute identification of online business for each business center and changing traditional business to become e – busines s.This research was an exploratory research, this research was using qualitative and quantitative approach. Qualitative approach was taken with Focus Group Discussion (FGD ) to decide e – bussiness design. Quantitative approach were used for website design. Experimental research was used for knowing customer response toward e bus iness design which have build based on FGD, then the attributes of design bussine ss could be revised based on customer respons. Website base design in the result of customer research inform that the product features which offered by IKM contains i nformation about local hospitality of batik motives and also to show arts or excellence which owned by all fourth district, design variation on one region eit her combination of region motives were very important, cause it impact to creating po tential market segment, batik tulis production were produce in limited edition. Local h ospitality of batik motives otomatically represent of region identity, arts and history value in Indonesia KEYWORDS : Local Hospitality, Batik, e –Business, Small Medi um Enterprises