E-commerce Introduction

What is E-commerce? The use of the Internet and WWW to transact business? The use of the Internet and WWW to transact business?

Commerce Commerce implies that two or more parties exchange something of value. Commerce implies that two or more parties exchange something of value. If something of value is NOT exchanged, then it is not commerce. If something of value is NOT exchanged, then it is not commerce.

Digital Transactions The Internet enabled large-scale digital transactions. The Internet enabled large-scale digital transactions. Digital Transactions enabled Digital Transactions enabled 1. New kinds of efficiencies for existing businesses 2. The formation of entirely new businesses and enterprises

WWW vs. Internet What is the difference? What is the difference? Is there a difference? Is there a difference?

Recap of MIS Information systems have 5 components Information systems have 5 components People People Data Data Hardware Hardware Software Software Communication Network Communication Network

Internet The Internet is a communication network. The Internet is a communication network. It is perhaps the ultimate communication network; it is now an essential part of almost all Information System. It is perhaps the ultimate communication network; it is now an essential part of almost all Information System. But… But… It is not an information system in the formal sense… It is not an information system in the formal sense… It is just a communication network It is just a communication network

Internet Hardware Network Hardware Network routers routers cables cables Ethernet cards Ethernet cards Network is built on two key concepts Network is built on two key concepts Packet Switching Packet Switching TCP/IP Protocol TCP/IP Protocol We’ll study these in more detail We’ll study these in more detail

WWW Not just a communication network Not just a communication network World Wide Web is an information system. World Wide Web is an information system. Its evolved into something much bigger but in the early days it was pretty simple system. Its evolved into something much bigger but in the early days it was pretty simple system.

WWW Data – Web pages Data – Web pages People – anyone with a web browser looking for data People – anyone with a web browser looking for data Software – Web Server, Web Browser Software – Web Server, Web Browser Hardware – Computers Hardware – Computers Communication Network – The Internet Communication Network – The Internet

Internet Existed before the WWW Existed before the WWW Internet is just a world-wide network of computer networks. Internet is just a world-wide network of computer networks. In the 70’s and 80’s, large companies, college’s, and the government connected all kinds of information systems using the Internet. In the 70’s and 80’s, large companies, college’s, and the government connected all kinds of information systems using the Internet.

Internet vs. WWW Recap: The Internet is *THE* communication network! The Internet is *THE* communication network! The WWW is just one of the Information Systems that uses the Internet The WWW is just one of the Information Systems that uses the Internet Internet WWW Other systems

WWW There is more to the WWW than web pages… There is more to the WWW than web pages… file transfer (FTP) file transfer (FTP) chat chat video conferencing video conferencing

WWW One Key characteristic URLs: Uniform Resource Locators URLs: Uniform Resource Locators Two secondary characteristics: Two secondary characteristics: Hypertext Hypertext Use of Web Browsers Use of Web Browsers …. More to come …. More to come

E-Commerce vs. E-Business The Firm The Company (specifically, the companies technology infrastructure) Suppliers Customers E-business (historically B2B) E-commerce (revenue opportunity)

E-Commerce vs. E-Business Companies and suppliers have been integrating their technology infrastructure for years Companies and suppliers have been integrating their technology infrastructure for years Dating back to the 70’s Dating back to the 70’s Some books call this E-business Some books call this E-business Some call it B2B E-commerce Some call it B2B E-commerce Exchange of valuables (so it is commerce) Exchange of valuables (so it is commerce) But, The Firm doesn’t make money off this relationship. But, The Firm doesn’t make money off this relationship.

E-Commerce vs. E-Business Sometimes the customer is another business. Sometimes the customer is another business. Sometimes its an individual consumer. Sometimes its an individual consumer. E-commerce refers to both cases. E-commerce refers to both cases. From the perspective of the Firm, E- commerce implies that you share technological infrastructure with your customers. From the perspective of the Firm, E- commerce implies that you share technological infrastructure with your customers.

Great Innovation The Internet and WWW finally allowed companies to share technological infrastructure with individual consumers. The Internet and WWW finally allowed companies to share technological infrastructure with individual consumers. Amazon Amazon iTunes iTunes

Why Study E-commerce? Wait, why isn’t this course titled E- commerce Wait, why isn’t this course titled E- commerce Interesting story…hope you didn’t miss this lecture. Interesting story…hope you didn’t miss this lecture.