E Commerce h1

E-COMMERCE
Introduction to E-Commerce
Uber/Grab/GoJek:
The New Face of E-commerce?
■ Class Discussion
– Have you used Uber or any other (Grab-GoJek) 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 Others?
The First Thirty Seconds
■ First 20 years of e-commerce

– Just the beginning
The early years of e-commerce, during the late 1990s, were a period of business vision,
inspiration, and experimentation.
– Rapid growth and change
Improvement in information technologies and continuing entrepreneurial innovation
■ Technologies evolve at exponential rates
Mobile, social, and local have become driving forces in e-commerce
– Disruptive business change
– New opportunities (on-demand service firms )
Why study e-commerce
‾ To understand opportunities and risks

‾ To analyze e-commerce ideas, models, issues
‾ To optimally market and advertise the business, using both traditional e-marketing
tools and social, mobile, and local marketing.
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
The Difference Between E-commerce
and E-business
There is debate about the meaning and limitations of both
■ 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
– ; the same infrastructure and skill sets are involved in both e-
business and e-commerce
Technological Building Blocks
Underlying E-commerce
■ Internet
■ World Wide Web
– HTML
– Deep Web vs. “surface” Web
■ Mobile platform
– Mobile apps
Continued
■ Internet:
Is a worldwide network of computer networks
built on common standards
‾ The Internet has shown extraordinary growth
Continued
■ World Wide Web
an information system running on Internet infrastructure that provides
access to billions of web pages
– The Web provides access to billions of web pages indexed by
Google and other search engines. These pages are created in a
language called HTML (HyperText Markup Language). HTML
pages can contain text, graphics, animations, and other objects
(surface” Web). Web pages are indexed by their URLs
– Deep Web vs. “surface” Web:
The deep Web contains databases and other content that is not
routinely indexed by search engines such as Google
continued
■ Mobile platform: provides the ability to access the Internet from

a variety of mobile devices such as smartphones, tablets, and other
ultra- lightweight laptop computers
– Mobile apps
Today, more Americans access the Internet via a mobile app than by
using a desktop computer and web browser.
Will Apps Make the Web
Irrelevant?
■ Student are required to express their vision in

minimum half and maximum one page in length
■ Do not forget your cover sheet
■ It is due on Thursday 8th Sep.
Major Trends in E-commerce
the major trends in e-commerce from a business, technological, and societal
perspective
❑ Technology trends include:

– Mobile platform has made mobile e-commerce reality
– The use of mobile messaging services has created an alternative communications
platform that are beginning to be leveraged for commerce as well.
– Cloud computing is inextricably linked to the development of the mobile platform
(store content)
– As firms track the trillions of online interactions that occur each day, a flood of
data, typically referred to as big data, is being produced
– In order to make sense out of big data, firms turn to sophisticated software called
business analytics (or web analytics) that can identify purchase patterns as well as
consumer interests and intentions in milliseconds.
Continued
❑ Business trends include:

– one of the most important trends to note is that all forms of e-commerce continue
to show very strong growth.
– Double their rates for the last few years
– mobile e-commerce will make up more than 50% of all e-commerce.
– Social networks are enabling social e-commerce by providing advertising, search,
and buy buttons that enable consumers to actually purchase products.
– B2B e-commerce also is continuing to strengthen and grow.
continued
❑ Societal trends include:

– User-generated content, published online as social network posts, tweets,
blogs, and pins, as well as video and photo-sharing, continues to grow and
provides a method of self-publishing that engages millions.
– Social networks encourage self-revelation, while threatening privacy.
– Participation by adults in social networks increases; Facebookbe comes ever
more popular in all demographic categories.
– Conflicts over copyright management and control continue, but there is
substantial agreement among online distributors and copyright owners that
they need one another.
continued
‾ Taxation of online sales poses challenges for governments.

‾ Surveillance of online communications by both repressive regimes and Western
democracies grows.
‾ Concerns over commercial and governmental privacy invasion increase.
‾ Online security continues to decline as major sites are hacked and lose control over
customer information.
‾ Spam remains a significant problem.
‾ On-demand service e-commerce produces a flood of temporary, poorly paid jobs
without benefits.
Unique Features of E-commerce
Technology (1 of 2)
1. Ubiquity: available just about every- where, at all times
2. Global reach: the total number of users or customers an e-commerce business can
obtain
3. Universal standards: standards that are shared by all nations around the world
4. Information richness: the complexity and content of a message
Unique Features of E-commerce
Technology (2 of 2)
5. Interactivity: technology that allows for two-way communication between
merchant and consumer
6. Information density: the total amount and quality of information available to
all market participants
7. Personalization/customization: personalization the targeting of
marketing messages to specific individuals by adjusting the
message to a person’s name, interests, and past purchases.
customization changing the delivered product or service based
on a user’s preferences or prior behavior
8. Social technology. (user generated content and social networks)
Important terms:
■ Marketplace: physical space you visit in order to transact
■ marketspace: marketplace extended beyond traditional boundaries
and removed from a temporal and geographic location
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
A Brief History of E-commerce
E-commerce: A Brief History (1 of 4)
■ Precursors
– Baxter Healthcare modem-based system
– Order entry systems
– Electronic Data Interchange (EDI) standards
■ 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
■ 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
■ 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
Periods in the Development of E-commerce
Insight on Business: Rocket Internet
■ Class Discussion
– Why do you think investors today are still interested in investing in
start-ups?
– What are the benefits of investing in a company that is a graduate
of Rocket Internet?
– Is an incubator the best solution for start-ups to find funding?
Why or why not?
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
The Internet and the
Evolution of Corporate
Computing
Insight on Society: Facebook and the
Age of Privacy
■ Class discussion:
– 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?
Academic Disciplines Concerned with
Technology
■ Technical
– Computer science, management science, information
systems
■ Behavioral
– Information systems research, economics, marketing,
management, finance/accounting, sociology

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E-COMMERCE

■ First 20 years of e-commerce

‾ To understand opportunities and risks

■ Use of Internet to transact business

■ Mobile platform: provides the ability to access the Internet from

■ Student are required to express their vision in

❑ Technology trends include:

❑ Business trends include:

❑ Societal trends include:

‾ Taxation of online sales poses challenges for governments.

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