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    Chapter 1

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    Chapter 1

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    Carlo Widjaja
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    311 views28 pages

    Chapter 1

    Uploaded by

    Carlo Widjaja

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 28

    E-Commerce 2018: Business. Technology.

    Society
    Fourteenth Edition

    Chapter 1
    Introduction to
    E-commerce

    Copyright © 2019 Pearson Education, Ltd.


    Learning Objectives
    1.1 Understand why it is important to study e-commerce.
    1.2 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.
    1.3 Identify and describe the unique features of e-commerce
    technology and discuss their business significance.
    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 © 2019 Pearson Education, Ltd.
    Everything On Demand: The
    “Uberization” of E-commerce

    • Class Discussion
    – Have you used Uber or any other on-demand service
    companies?
    – What is the appeal of these companies for users and
    providers?
    – Are there any negative consequences to the
    increased use of on-demand services like Uber and
    Airbnb?

    Copyright © 2019 Pearson Education, Ltd.


    The First Thirty Seconds

    • First 20 years 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

    Copyright © 2019 Pearson Education, Ltd.


    Introduction to E-commerce

    • Use of Internet to transact business


    – Includes Web, mobile browsers and apps
    • More formally:
    – Digitally enabled commercial transactions between
    and among organizations and individuals

    Copyright © 2019 Pearson Education, Ltd.


    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

    Copyright © 2019 Pearson Education, Ltd.


    Technological Building Blocks Underlying
    E -Commerce

    • Internet
    • World Wide Web
    – HTML
    – Deep Web v s. “surface” Web
    ersu

    • Mobile platform
    – Mobile apps

    Copyright © 2019 Pearson Education, Ltd.


    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?

    Copyright © 2019 Pearson Education, Ltd.


    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

    Copyright © 2019 Pearson Education, Ltd.


    Unique Features of E-Commerce
    Technology (1 of 2)

    1. Ubiquity
    2. Global reach
    3. Universal standards
    4. Information richness

    Copyright © 2019 Pearson Education, Ltd.


    Unique Features of E-Commerce
    Technology (2 of 2)

    5. Interactivity
    6. Information density
    7. Personalization/customization
    8. Social technology

    Copyright © 2019 Pearson Education, Ltd.


    Types of E-Commerce

    • Business-to-Consumer (B2C)
    • Business-to-Business (B2B)
    • Consumer-to-Consumer (C2C)
    • Mobile e-commerce (M-commerce)
    • Social e-commerce
    • Local e-commerce

    Copyright © 2019 Pearson Education, Ltd.


    Figure 1.5 The Growth of B2C E-Commerce
    in the United States

    Copyright © 2019 Pearson Education, Ltd.


    Figure 1.7 The Growth of B2B E-Commerce
    in the United States

    Copyright © 2019 Pearson Education, Ltd.


    Figure 1.8 The Growth of M-Commerce in the
    United States

    Copyright © 2019 Pearson Education, Ltd.


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

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

    Copyright © 2019 Pearson Education, Ltd.


    E-Commerce: A Brief History (2 of 4)

    • 1995–2000: Invention
    – Sale of simple retail goods
    – Limited bandwidth and media
    – Euphoric visions of
    ▪ Friction-free commerce
    ▪ First-mover advantages
    – Dot-com crash of 2000

    Copyright © 2019 Pearson Education, Ltd.


    E-Commerce: A Brief History (3 of 4)

    • 2001–2006: Consolidation
    – Emphasis on business-driven approach
    – Traditional large firms expand presence
    – Start-up financing shrinks
    – More complex products and services sold
    – Growth of search engine advertising
    – Business web presences expand

    Copyright © 2019 Pearson Education, Ltd.


    E-Commerce: A Brief History (4 of 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

    Copyright © 2019 Pearson Education, Ltd.


    Figure 1.10 Periods in the Development of
    E-Commerce

    Copyright © 2019 Pearson Education, Ltd.


    Insight on Business: Rocket Internet

    • Class Discussion
    – What are the benefits of investing in a company that
    Rocket Internet has launched?
    – Is an incubator the best solution for start-ups to find
    funding? Why or why not?
    – Why is Rocket Internet controversial?

    Copyright © 2019 Pearson Education, Ltd.


    Assessing E-Commerce (1 of 2)

    • Stunning technological success


    • Early years a mixed business success
    – Few early dot-coms have survived
    – Online sales growing rapidly
    • Many early visions not fulfilled
    – Price dispersion
    – Information asymmetry
    – New intermediaries

    Copyright © 2019 Pearson Education, Ltd.


    Assessing E-Commerce (2 of 2)

    • Other surprises
    – Fast-follower advantages
    – Start-up costs
    – Impact of mobile platform
    – Emergence of on-demand e-commerce

    Copyright © 2019 Pearson Education, Ltd.


    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

    Copyright © 2019 Pearson Education, Ltd.


    Figure 1.11 The Internet and the Evolution
    of Corporate Computing

    Copyright © 2019 Pearson Education, Ltd.


    Insight on Society: Facebook and the Age
    of Privacy

    • Class discussion:
    – Why are social networks 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?

    Copyright © 2019 Pearson Education, Ltd.


    Academic Disciplines Concerned with
    Technology

    • Technical
    – Computer science, management science, information
    systems
    • Behavioral
    – Information systems research, economics, marketing,
    management, finance/accounting, sociology

    Copyright © 2019 Pearson Education, Ltd.


    Careers in E-Commerce

    • Position: Category specialist in E-commerce Retail


    Program
    • Qualification/Skills
    • Preparing for the Interview
    • Possible Interview Questions

    Copyright © 2019 Pearson Education, Ltd.

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