W 3a Revolution Is Just Beginning

REVOLUTION IS JUST BEGINNING
2 Learning Objectives
In this chapter, you will learn about:
 Understand why it is important to study e-commerce.
 Define e-commerce, understand how e-commerce differs from e-business,
identify the primary technological building blocks underlying e-commerce, and
recognize major current themes in e-commerce.
 Identify and describe the unique features of e-commerce technology and discuss
their business significance.
 Describe the major types of e-commerce.
 Understand the evolution of e-commerce from its early years to today.
 Describe the major themes underlying the study of e-commerce.
 Identify the major academic disciplines contributing to e-commerce.
2
3 The “Uberization” of Electronic
Commerce
Class Discussion
 Have you used or any other on-demand service companies?
 UberX; use sedans and less expensive
 Uber Black; luxury cars service
 Uber Pool; ride sharing
 UberEats; food delivery
 UberRush; same day delivery
 UberCargo; trucking service
 What is the appeal of these companies for users and providers?
 Are there any negative consequences to the increased use of on-demand services?
4 The First Thirty Seconds
 First two decades of e-commerce
 Just the beginning
 Rapid growth and change
 Technologies evolve at exponential rates
 Disruptive business change
 New opportunities
 Why study e-commerce
 Understand opportunities and risks
 Analyze e-commerce ideas, models, issues
5 Introduction to E-commerce
 E-commerce involves the use of Internet to transact business, includes
Web, mobile browsers and apps
 Internet is a worldwide network of computer networks,
 Web is one of the Internet’s most popular services, providing access to
billions of web pages.
 App (short-hand for application) is a software application/ mobile app/
computer app as well.
 Mobile browser is a version of web browser software accessed via a
mobile device.
 More formally:
 Digitally enabled commercial transactions between and among
organizations and individuals
6 The Difference between E-
commerce and E-business
 E-business:
 Digital enabling of transactions and processes within a
firm, involving information systems under firm’s
control
 Does not include commercial transactions involving an
exchange of value across organizational boundaries
7 Technological Building Blocks
Underlying E-commerce
 Internet
 World Wide Web
 HTML
 Deep Web versus “surface” Web
 Mobile platform
 Mobile apps
8 Technological Building Blocks
Underlying E-commerce (cont..)
9 Insight on Technology: Will Apps
Make the Web Irrelevant?
 Class Discussion
 What are the advantages and disadvantages of apps, compared
with websites, for mobile users?
 What are the benefits of apps for content owners and creators?
 Will apps eventually make the Web irrelevant? Why or why not?
10 Major Trends in E-commerce
 Business trends include:

 All forms of e-commerce show very strong growth
 Technology trends include:
 Mobile platform has made mobile e-commerce reality
 Societal trends include:
 Increased online social interaction and sharing
11 Unique Features of E-commerce
Technology
1. Ubiquity
2. Global reach
3. Universal standards
4. Information richness
5. Interactivity
6. Information density
7. Personalization/customization
8. Social technology
12 Types of E-commerce
 Business-to-Consumer (B2C)
 Business-to-Business (B2B)
 Consumer-to-Consumer (C2C)
 Business-to-government (B2G)
 Mobile e-commerce (M-commerce)
 Social e-commerce
 Local e-commerce
13 Fig 1.5; THE GROWTH OF B2C E-
COMMERCE IN THE UNITED STATES
14 Fig 1.6; ROOM TO GROW
15 Fig 1.7; THE GROWTH OF B2B E-
16 Fig 1.8; THE GROWTH OF M-
17 Fig 1.9; THE RELATIVE SIZE OF
DIFFERENT E-COMMERCE TYPES
18 E-COMMERCE; A BRIEF HISTORY
(1/4)
Precursors
 Baxter Healthcare modem-based system
 Order entry systems
 Electronic Data Interchange (E D I) standards
 French Minitel
 Three period;
1. Invention (1995 to 2000)
2. Consolidation (2001 to 2006)
3. Reinvention (2007 to Present)
(2/4)
1995–2000: Invention
 Sale of simple retail goods
 Limited bandwidth and media
 Euphoric visions of
 Disintermediation
 Friction-free commerce
 First-mover advantages
 Network effect
 Dot-com crash of 2000
(3/4)
2001–2006: Consolidation
 Emphasis on business-driven approach
 Traditional large firms expand presence
 More complex products and services sold
 Growth of search engine advertising
 Business web presences expand
(4/4)
2007–Present: Reinvention
 Rapid growth of:
 Web 2.0, including online social networks
 Mobile platform
 Local commerce
 On-demand service economy
 Entertainment content develops as source of revenues
 Transformation of marketing
22 Fig 1.10; PERIOD OF DEVELOPMENT
OF E-COMMERCE
23 ASSESSING E-COMMERCE (1/3)
Stunning technological Success

 Early years a mixed business success
 Few early dot-coms have survived
 Web as a powerful source of
 Online sales growing rapidly
Some Surprises
 Many early visions not fulfilled
 Price dispersion
 Information asymmetry
 New intermediaries
Other surprises/ Failures

 Fast-follower firm advantages
 Start-up costs
 Impact of mobile platform
 Emergence of on-demand e-commerce
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 property, individual privacy, public welfare policy
27
Figure 1.9
The Internet
and the
Evolution of
Corporate
Computing
28 ACADEMIC DISCIPLINES
CONCERNED WITH TECHNOLOGY
 Technical Approaches
 Computer science,
 Operation management science
 Information systems
 Behavioral Approaches
 Information systems research
 Marketing & Management
 Legal

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REVOLUTION IS JUST BEGINNING

 Business trends include:

Stunning technological Success

Other surprises/ Failures

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