Exam 1 Review Recap of… 1. E-commerce history and concepts 2. Internet & WWW technology 3. Terminology and acronyms

Why Study E-commerce?  Why exactly is E-commerce more important to business than other technologies?  Hint: The features of e-commerce are very unique compared to other technologies

Structure of WWW  What possible relevance could the structure of the WWW have on areas like?  Business Strategy  Marketing  etc.

Structure of WWW Remember the article we read:  The WWW is not completely connected it’s not a web.  There is a connected core of web pages out cluster of web pages (linked from the core, but dead- ends) in cluster (linked to the core, but unreachable from the core)  Where should you place ads?

Structure of the WWW  What does strongly connected mean?  Consider the how rapidly the WWW is growing millions of new pages every week  Why will there always be an in-cluster? Think about the websites we just created

Operationally Attuned  Knowing how something works (or how something is put together) helps you use it more effectively.  Aside from the obvious, what are some other ways that knowing how the WWW works can help you use if more effectively for business?

7 Feature of E-commerce 1. Ubiquity 2. Global Reach 3. Universal Standards 4. Richness 5. Interactivity 6. Information Density 7. Personalization/Customization

7 Feature of E-commerce FeatureE-commerce Technology Telephone Technology Television Technology UbiquityYesYes, cell phones, onstar Maybe someday Global ReachYes, but No 3 rd World Yes Universal StandardsYes Pretty much RichnessYesNo video, no images Yes InteractivityYes No Information DensityYesNo, only faxYes, only audio video Customization/Personal.YesNot really

7 Features of E-commerce Standardization  Low Entry Cost  More completion. Standardization  Information integration  More price discovery opportunities. More competition + price discovery opportunity = lower consumer prices

7 Features of E-commerce  How does increased information density reduce costs for a business?  How does increased information density increase the quality of information?

Running an E-commerce Business Six things you need:  Human Resources  Organizational Capabilities  Hardware  Software  Telecommunications  Site Design

E-commerce Business  Which of the six things probably costs the most?  #1  #2  Which of the six things may not be available throughout the world?

Types of E-commerce  B2B vs. B2C  What is the difference between C2C and P2P (Peer to Peer)?  Hint: It has to do with the middleman?

Growth of the Internet How many web servers (hosts) are currently connected to the Internet.  More than 1 billion  More than 100 million  More than 10 million  More then 1 million

Growth of the WWW How many web pages?  More than 500 billion  More than 50 billion  More 5 billion  More than 500 million  More than 50 million  More than 5 million

Global Reach? (not really)  What are some factors that limit customer participation in E-commerce?

E-commerce (Era I vs. Era II)  Era I: Pre-1999  Era II: Post-2000  What are some of the differences?

Key Concepts  Network effect –  First Mover –  Friction-Free Commerce –

Key Concepts  Friction-Free Commerce – info is equally distributed transaction costs are low prices adjust automatically based on demand middle-men are eliminated unfair competitive advantages are eliminated

E-commerce II  Disintermediation – get rid of the middle man, create a new direct relationship between manufacturers and customers Disintermediation is good, right? How can it be bad? Consider this: A manufacturing business that has no expertise in sales, marketing, and micro distribution.

Key Concepts  After 2000, business realized that friction-free commerce was a dream (not full possible)  Many of the successful E-commerce companies are now simply middle-men: Amazon Travelocity E-bay etc.

Acronyms  HTTP  HTTPS  DNS  FTP  WWW  TCP/IP  URL  IP Address

WWW vs. Internet  IP Address goes with?  URL goes with?  HTTP goes with?  DNS goes with?  BTW, what is the entire purpose of DNS? It’s a very complicated system just to achieve a very simply, common-sense way to find things.

Web Servers  What 3 things do you need to serve up web pages?  Actually, you need a 4 th thing, but its obviously part of the question.

Internet History When did it all start? Innovation Phase  1960’s  1970’s  1980’s  1990’s

Internet History When was it institutionalized and brought into the mainstream…   

Internet History When was is commercialized?   

Domain Names  From a marketing or business point of view, what are important criteria in selecting the Domain name for a business website?

Hosting Service  Aside from low cost and features what are three other criteria that are important when selecting a hosting service?

Internet  What are three technological characteristics that truly define the Internet?  BTW, what is packet switching anyway? Describe it in your own words?  How is TCP/IP related to the 7 features of E- commerce?