University:
Kentucky State University
Course:
ECO 301 | Microeconomics
Academic year:

2020
Views:

396

Pages:

29
Author:

Stefni3cf

Chapter 1 Introduction to E-commerce Learning Objectives • Deﬁning E-Commerce & E-Business  Deﬁning E-Commerce & E-Business  Identifying the historical stages of developing ECommerce.  Analysing how the Internet contributes as a business revenue.  Identifying the various forces affecting ECommerce  Recognising the International nature of ECommerce and the challenges it faces. • Identifying the historical stages of developing E-Commerce. Slide 1-3 E–Business - The use of IT and electronic communication networks to exchange information and conduct transactions in electronic paperless form.  E–Commerce - The use of e–business to buy and sell products or services utilising a network.  Slide 1-4 What Is E-commerce?  Use of Internet and Web to transact business  More formally: Digitally enabled commercial transactions between and among organizations and individuals Slide 1-5 E-commerce vs. E-business  E-business:  Digital enabling of transactions and processes within a ﬁrm, involving information systems under ﬁrm’s control Slide 1-6 History: Electronic Data Interchange (EDI).  Trading partners.  Value Added Network.  Interconnected Network of computers (Internet): Defense Advanced Research Projects Agency (DARPA) & 4 universities (1969) + TCP (Transmission Control; Protocol/ IP (Internet Protocol) = Internet.  Slide 1-7 E-commerce: A Brief History  1995–2000: Innovation  Key concepts developed  Dot-coms; heavy venture capital investment  2001–2006:  Emphasis on Consolidation business-driven approach  2006–Present: Reinvention  Extension of technologies  New models based on user-generated content, social networks, services Slide 1-8 m Facebook: The New Face of EClass mDiscussion co erce? Do you use Facebook, and if so, how often? What has the experience been like?  Have you purchased anything based on an advertisement on Facebook or by using a link provided by a friend?  Are you concerned about the privacy of the information you have posted on Facebook?  Slide 1-9 E-commerce Trends 2011–2012  Social networking continues to grow  Expansion of social e-commerce platform  Mobile platform begins to rival PC platform  Localization of e-commerce.  Explosive growth in online video viewing C Slide 1-10 Why Study E-commerce?  E-commerce technology is different, more powerful than previous technologies  E-commerce brings fundamental changes to commerce  Traditional commerce:  Consumer as passive targets  Sales-force driven  Fixed prices  Information asymmetry Slide 1-11 Unique Features of E-commerce Technology 1. 2. 3. 4. 5. 6. 7. 8. Ubiquity (anywhere) Global reach Universal standards Information richness Interactivity Information density Personalization/customization Social technology Slide 1-12 Copyright © 2012 Pearson Education Slide 1-13 Web 2.0  User-centered applications and social media technologies  User-generated  Highly content and communication interactive, social communities  Large audiences; yet mostly unproven business models  e.g., Twitter, YouTube, Facebook, Second Life, Wikipedia, Digg Slide 1-14 Types of E-commerce  Classiﬁed by market relationship  Business-to-Consumer (B2C)  Business-to-Business (B2B)  Consumer-to-Consumer  Classiﬁed  Peer-to-Peer  Mobile (C2C) by technology used (P2P) commerce (M-commerce) Slide 1-15 Assessing E-commerce  Many early visions not  Friction-free commerce fulﬁlled  Consumers less price sensitive  Considerable price dispersion  Perfect competition  Information asymmetries persist  Intermediaries have not disappeared  First mover advantage  Fast-followers often overtake ﬁrst movers Slide 1-16 The Internet  Worldwide network of computer networks built on common standards  Created in late 1960s  Services include the Web, e-mail, ﬁle transfers, etc.  Can measure growth by looking at number of Internet hosts with domain names Slide 1-17 The Growth of the Internet, Measured by Number of Internet Hosts with Domain Names Figure 1.2, Page 23 SOURCE: Internet Systems Consortium, Inc., 2011. Slide 1-18 The Web  Most popular Internet service  Developed in early 1990s  Provides access to Web pages  HTML documents that may include text, graphics, animations, music, videos  Web content has grown exponentially  Google reports 1 trillion unique URLs; 120 billion pages indexed Slide 1-19 Origins and Growth of E-commerce  Precursors:  Baxter Healthcare  Electronic  French  None  Minitel (1980s videotex system) had functionality of Internet 1995: Beginning of e-commerce  First  Data Interchange (EDI) sales of banner advertisements E-commerce fastest growing form of commerce in United States Slide 1-20 The Growth of B2C E-commerce Figure 1.3, Page 25 SOURCES: Based on data from eMarketer, Inc., 2011a; authors’ estimates. Slide 1-21 The Growth of B2B E-commerce Figure 1.4, Page 28 SOURCES: Based on data from U.S. Census Bureau, 2011b; authors’ estimates. Slide 1-22 Technology and E-commerce in Perspective  The Internet and Web: Just two of a long list of technologies that have greatly changed commerce. Others:  Automobiles  Radio Slide 1-23 Potential Limitations on the Growth of B2C E-commerce  Expensive technology  Sophisticated skill set  Persistent cultural attraction of physical markets and traditional shopping experiences  Persistent global inequality limiting access to telephones and computers  Saturation and ceiling effects Slide 1-24 Early Visions of E-commerce  Computer scientists:   Economists:    Inexpensive, universal communications and computing environment accessible by all Nearly perfect competitive market; friction-free commerce Lowered search costs, disintermediation, price transparency, elimination of unfair competitive advantage Entrepreneurs:  Extraordinary opportunity to earn far above normal returns on investment—ﬁrst mover advantage Slide 1-25 Predictions for the Future  Technology will propagate through all commercial activity  Prices will rise to cover the real cost of doing business  E-commerce margins and proﬁts will rise to levels more typical of all retailers  Cast of players will change   Traditional Fortune 500 companies will play dominant role New startup ventures will emerge with new products, services  Number of successful pure online stores will remain smaller than integrated oﬄine/online stores  Regulatory activity worldwide will grow  Cost of energy will have an inﬂuence Slide 1-26 Understanding E-commerce: Organizing Themes  Technology:  Development and mastery of digital computing and communications technology  Business:  New technologies present businesses with new ways of organizing production and transacting business  Society:  Intellectual policy property, individual privacy, public welfare Slide 1-27 The Internet and the Evolution of Corporate Computing Figure 1.8, Page 82 Slide 1-28 Insight on Society: Class Discussion Online Privacy: Is the Age of Privacy Over? Why are social network sites interested in collecting user information?  What types of privacy invasion are described in the case? Which is the most privacy-invading, and why?  Is e-commerce any different than traditional markets with respect to privacy? Don’t merchants always want to know their customer?  How do you protect your privacy on the Web?  Slide 1-29 Academic Disciplines Concerned with E-commerce  Technical approach  Behavioral approach  Computer science  Information  Management systems  Economics  Marketing  Management  Finance/accounting  Sociology Slide 1-30 science  Information systems

Chapter 1 Introduction to E-commerce

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