1. The Revolution Is Just Beginning
Chapter 1
The Revolution Is Just Beginning
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2. Use of Internet and Web to transact business More formally:
What is E-commerce?
Use of Internet and Web to transact business
More formally:
Digitally enabled commercial transactions between and among organizations and individuals
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3. E-commerce vs. E-business
Digital enablement 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
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4. Why Study E-commerce?
E-commerce technology is different, more powerful than previous technologies
E-commerce bringing fundamental changes to commerce
Traditional commerce:
Passive consumer
Sales-force driven
Fixed prices
Information asymmetry
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5. Unique Features of E-commerce Technology
Ubiquity
Global reach
Universal standards
Information richness
Interactivity
Information density
Personalization/customization
Social technology
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6. Applications, technologies that allow users to:
Web 2.0
Applications, technologies that allow users to:
Create and share content, preferences, bookmarks, and online personas
Participate in virtual lives
Build online communities
Examples
YouTube, Photobucket, Flickr, Google, iPhone
MySpace, Facebook, LinkedIn
Second Life
Wikipedia
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7. Classified by market relationship
Types of E-commerce
Classified by market relationship
Business-to-Consumer (B2C)
Business-to-Business (B2B)
Consumer-to-Consumer (C2C)
Classified by technology used
Peer-to-Peer (P2P)
Mobile commerce (M-commerce)
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8. The Internet
Worldwide network of computer networks built on common standards
Created in late 1960s
Services include the Web, , file transfers, etc.
Can measure growth by looking at number of Internet hosts with domain names
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9. Most popular Internet service Developed in early 1990s
The Web
Most popular Internet service
Developed in early 1990s
Provides access to Web pages
HTML documents that may include text, graphics, animations, music, videos
Web content has grown exponentially
2 billion Web pages in 2000
At least 40–50 billion pages today
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10. Technology and E-commerce in Perspective
The Internet and Web: Just two of a long list of technologies that have greatly changed commerce
Automobiles
Radio
E-commerce growth will eventually cap as it confronts its own fundamental limitations.
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11. E-commerce: A Brief History
1995–2000: Innovation
Key concepts developed
Dot-coms; heavy venture capital investment
2001–2006: Consolidation
Emphasis on business-driven approach
2006–Present: Reinvention
Extension of technologies
New models based on user-generated content, social networking, services
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12. Early Visions of E-commerce
Computer scientists:
Inexpensive, universal communications and computing environment accessible by all
Economists:
Nearly perfect competitive market and friction-free commerce
Lowered search costs, disintermediation, price transparency, elimination of unfair competitive advantage
Entrepreneurs:
Extraordinary opportunity to earn far above normal returns on investment—first mover advantage
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