2

Learning Objectives

1.1 Understand why it is important to study e-commerce.

Chapter 1 1.2 Define e-commerce, understand how e-commerce differs from e-
Overview of Electronic business.
Commerce (E-Commerce) 1.3 Identify and describe the unique features of e-commerce
technology and discuss their business significance.
Instructor: Nguyen Thi Thuy Hanh, PhD
Faculty of Information Systems 1.4 Describe the major types of e-commerce.
1.5 Understand the evolution of e-commerce from its early years to
today.
1.6 Describe the major themes underlying the study of e-commerce.
1.7 Identify the major academic disciplines contributing to e-
commerce.
Copyright © 2020 Pearson Education Ltd. All Rights Reserved

3 4

Everything On Demand: The

“Uberization” of E-commerce The First Thirty Seconds
• Class Discussion • First two decades of e-commerce
– Have you used Uber or any other on-demand service – Just the beginning
companies? – Rapid growth and change
– What is the appeal of these companies for users and
providers? • Technologies evolve at exponential rates
– Are there any negative consequences to the increased – Disruptive business change
use of on-demand services like Uber and Airbnb? – New opportunities
• Why study e-commerce
– Understand opportunities and risks
– Analyze e-commerce ideas, models, issues

Copyright © 2020 Pearson Education Ltd. All Rights Reserved Copyright © 2020 Pearson Education Ltd. All Rights Reserved
 5 6

Introduction to E-commerce Discussion

• Use of Internet to transact business • Difference between E-commerce & Traditional commerce?
– Includes Web, mobile browsers and apps + Interaction
Suitability
• More formally: Transaction processing
– Digitally enabled commercial transactions between and Scope
among organizations and individuals Accessibility
Cost effectiveness

Copyright © 2020 Pearson Education Ltd. All Rights Reserved Copyright © 2020 Pearson Education Ltd. All Rights Reserved

7 8

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

• E-commerce primarily involves transactions that cross firm boundaries.

• E-business primarily involves the application of digital technologies to business processes
within the firm.

Copyright © 2020 Pearson Education Ltd. All Rights Reserved Copyright © 2020 Pearson Education Ltd. All Rights Reserved
 9 10

Technological Building Blocks Forecast number of mobile users worldwide

Underlying E-commerce from 2020 to 2025(in billions)
• Internet
• World Wide Web
– HTML
– Deep Web v s “surface” Web
ersu

• Mobile platform
– Mobile apps

Source; statista,2023

Copyright © 2020 Pearson Education Ltd. All Rights Reserved Copyright © 2020 Pearson Education Ltd. All Rights Reserved

11 12

Insight on Technology: Will Apps

Make the Web Irrelevant? Major Trends in E-commerce
• Class Discussion • Business trends include:
– What are the advantages and disadvantages of apps, – All forms of e-commerce show very strong growth
compared with websites, for mobile users?
• Technology trends include:
– What are the benefits of apps for content owners and
creators? – Mobile platform has made mobile e-commerce reality
– Will apps eventually make the Web irrelevant? Why or • Societal trends include:
why not? – Increased online social interaction and sharing

Copyright © 2020 Pearson Education Ltd. All Rights Reserved Copyright © 2020 Pearson Education Ltd. All Rights Reserved
 13 14

Additional concepts Additional concepts

• Information asymmetry refers to any disparity in relevant market • Search costs—the effort required to find suitable products
information among parties in a transaction.
• Price transparency refers to the ease with which consumers can find
• Marketplace is a physical place you visit in order to transact out the variety of prices in a market

• Marketspace—a marketplace extended beyond traditional • Cost transparency refers to the ability of consumers to discover the
boundaries and removed from a temporal and geographic location actual costs merchants pay for products

• Transaction costs—the costs of participating in a market

•
• Cognitive energy refers to the mental effort required to complete
a task

• Market entry costs—the cost merchants must pay just to bring

their goods to market

Copyright © 2020 Pearson Education Ltd. All Rights Reserved Copyright © 2020 Pearson Education Ltd. All Rights Reserved

15 16

Unique Features of E-commerce Unique Features of E-commerce

Technology Technology (1 of 2)
1. Ubiquity
2. Global reach
3. Universal standards
4. Information richness

Copyright © 2020 Pearson Education Ltd. All Rights Reserved Copyright © 2020 Pearson Education Ltd. All Rights Reserved
 17 18

Unique Features of E-commerce BUSINESS SIGNIFICANCE OF THE EIGHT UNIQUE FEATURES OF E-COMMERCE
TECHNOLOGY

Technology (2 of 2)
5. Interactivity
6. Information density
7. Personalization/customization
8. Social technology

Copyright © 2020 Pearson Education Ltd. All Rights Reserved Copyright © 2020 Pearson Education Ltd. All Rights Reserved

19 20

E-Commerce Glossary Types of E-commerce

- B: Business - Doanh Nghiệp • Business-to-Consumer (B2C)
- 2: To • Business-to-Business (B2B)
- E: Employee - Nhân Viên • Consumer-to-Consumer (C2C)
- G: Government - Chính phủ • Mobile e-commerce (M-commerce)
- C: Consumer - Khách hàng • Social e-commerce
- C: Citizen - Công dân • Local e-commerce

Copyright © 2020 Pearson Education Ltd. All Rights Reserved Copyright © 2020 Pearson Education Ltd. All Rights Reserved
 21 22

Figure 1.5 The Growth of B2C E- Figure 1.7 The Growth of B2B E-
commerce in the United States commerce in the United States

Copyright © 2020 Pearson Education Ltd. All Rights Reserved Copyright © 2020 Pearson Education Ltd. All Rights Reserved

23 24

Figure 1.8 The Growth of M- THE RELATIVE SIZE OF DIFFERENT TYPES OF E-COMMERCE IN THE UNITED
STATES IN 2020
commerce in the United States

Copyright © 2020 Pearson Education Ltd. All Rights Reserved Copyright © 2020 Pearson Education Ltd. All Rights Reserved
 25 26

Vietnam's e-commerce: growth rate of over 25% in 2022

45
39
40
35
30
25
20
15 13
10 8 7
5.9 5.7
2.5 3 2.4 3.9
5 1.8 1.4
0
2020 2021 2025

Revenue of E-commerce Revenue of Online travel

Unit: Billion USD
Revenue of Transportation and food Revenue of online audiovisual content

Global e-commerce revenue via social networks Unit: Billion USD

(E-Commerce of Vietnam, Ministry of Industry and Trade, 2022) E-commerce revenue over the year in Vietnam
(E-Commerce of Vietnam, Ministry of Industry and Trade, 2022)

27 28

E-commerce: A Brief History (1 of 4)

• Precursors
– Baxter Healthcare modem-based system
– Order entry systems
– Electronic Data Interchange (EDI) standards
– French Minitel

Percentage of enterprises doing business on social networks

(Vietnam E-Commerce Association, 2023)

Copyright © 2020 Pearson Education Ltd. All Rights Reserved

 29 30

E-commerce: A Brief History (2 of 4) E-commerce: A Brief History (3 of 4)

• 1995–2000: Invention • 2001–2006: Consolidation
– Sale of simple retail goods – Emphasis on business-driven approach
– Limited bandwidth and media – Traditional large firms expand presence
– Euphoric visions of – Start-up financing shrinks
▪ Friction-free commerce – More complex products and services sold
▪ First-mover advantages – Growth of search engine advertising
– Dot-com crash of 2000 – Business web presences expand

Copyright © 2020 Pearson Education Ltd. All Rights Reserved Copyright © 2020 Pearson Education Ltd. All Rights Reserved

31 32

Figure 1.10 Periods in the

E-commerce: A Brief History (4 of 4) Development of E-commerce
• 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

Copyright © 2020 Pearson Education Ltd. All Rights Reserved Copyright © 2020 Pearson Education Ltd. All Rights Reserved
 33 34

Assessing E-commerce (1 of 2) Assessing E-commerce (2 of 2)

• Stunning technological success • Other surprises
• Early years a mixed business success – Fast-follower advantages
– Few early dot-coms have survived – Start-up costs
– Online sales growing rapidly – Impact of mobile platform
– Emergence of on-demand e-commerce
• Many early visions not fulfilled
– Price dispersion
– Information asymmetry
– New intermediaries

Copyright © 2020 Pearson Education Ltd. All Rights Reserved Copyright © 2020 Pearson Education Ltd. All Rights Reserved

35 36

Understanding E-commerce: Figure 1.11 The Internet and the

Organizing Themes Evolution of Corporate Computing
• 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

Copyright © 2020 Pearson Education Ltd. All Rights Reserved Copyright © 2020 Pearson Education Ltd. All Rights Reserved
 37 38

CASE STUDY: Insight on Society: Academic Disciplines Concerned

Facebook and the Age of Privacy with Technology
• Class discussion: • Technical
– Why are social networks interested in collecting user – Computer science, management science, information
information? systems
– What types of privacy invasion are described in the • Behavioral
case? Which is the most privacy-invading, and why?
– Information systems research, economics, marketing,
– How is e-commerce different from traditional markets management, finance/accounting, sociology
with respect to privacy? Don’t merchants always want
to know their customer?
– How do you protect your privacy online?

Copyright © 2020 Pearson Education Ltd. All Rights Reserved Copyright © 2020 Pearson Education Ltd. All Rights Reserved

39

Careers in E-commerce
• Position: Category specialist in E-commerce Retail
Program
• Qualification/Skills
• Preparing for the Interview
• Possible Interview Questions

Copyright © 2020 Pearson Education Ltd. All Rights Reserved Copyright © 2020 Pearson Education Ltd. All Rights Reserved