Bài giảng E-commerce business, technology, society - Chapter 1: The Revolution Is Just Beginning

Facebook: The New Face of E-Commerce? Class Discussion Do you use Facebook, and if so, how often? What has the experience been like? Have you purchased anything based on an advertisement on Facebook or by using a link provided by a friend? Are you concerned about the privacy of the information you have posted on Facebook?

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E-commerce Kenneth C. LaudonCarol Guercio Traverbusiness. technology. society.seventh editionE-commerce: business. technology. society.Copyright © 2011 Pearson Education, Inc.Chapter 1: The Revolution Is Just BeginningCopyright © 2007 Pearson Education, Inc.Slide 1-*Chapter 1The Revolution Is Just BeginningCopyright © 2011 Pearson Education, Inc.Facebook: The New Face of E-Commerce? Class DiscussionDo you use Facebook, and if so, how often? What has the experience been like?Have you purchased anything based on an advertisement on Facebook or by using a link provided by a friend?Are you concerned about the privacy of the information you have posted on Facebook?Slide 1-*Copyright © 2011 Pearson Education, Inc.E-commerce Trends 2010-2011Social networking continues to growSocial e-commerce platform emergesOnline consumer sales return to growthMobile computing begins to rival PCExplosive growth in online video viewingContinued privacy and security concernsSlide 1-*Copyright © 2011 Pearson Education, Inc.The First 30 SecondsFirst 16 years of e-commerceJust the beginningRapid growth and changeTechnologies continue to evolve at exponential ratesDisruptive business changeNew opportunitiesSlide 1-*Copyright © 2011 Pearson Education, Inc.What is E-commerce? Use of Internet and Web to transact businessMore formally:Digitally enabled commercial transactions between and among organizations and individualsSlide 1-*Copyright © 2011 Pearson Education, Inc.E-commerce vs. E-businessE-business:Digital enablement of transactions and processes within a firm, involving information systems under firm’s controlDoes not include commercial transactions involving an exchange of value across organizational boundariesSlide 1-*Copyright © 2011 Pearson Education, Inc.Why Study E-commerce?E-commerce technology is different, more powerful than previous technologiesE-commerce bringing fundamental changes to commerceTraditional commerce:Passive consumerSales-force drivenFixed pricesInformation asymmetrySlide 1-*Copyright © 2011 Pearson Education, Inc.Unique Features of E-commerce TechnologyUbiquity Global reach Universal standards Information richness Interactivity Information densityPersonalization/customizationSocial technologySlide 1-*Copyright © 2011 Pearson Education, Inc.Web 2.0Technologies that allow users to: Create and share content, preferences, bookmarks, and online personasParticipate in virtual livesBuild online communitiesE.g. Twitter, YouTube, Facebook, Second Life, Wikipedia, DiggSlide 1-*Copyright © 2011 Pearson Education, Inc.Types of E-commerceClassified by market relationshipBusiness-to-Consumer (B2C)Business-to-Business (B2B)Consumer-to-Consumer (C2C)Classified by technology usedPeer-to-Peer (P2P)Mobile commerce (M-commerce)Slide 1-*Copyright © 2011 Pearson Education, Inc.The InternetWorldwide network of computer networks built on common standardsCreated in late 1960sServices include the Web, e-mail, file transfers, etc.Can measure growth by looking at number of Internet hosts with domain names Slide 1-*Copyright © 2011 Pearson Education, Inc.The Growth of the Internet, Measured by Number of Internet Hosts with Domain Names Figure 1.3, Page 23 Slide 1-*SOURCE: Internet Systems Consortium, Inc. , 2010.Copyright © 2011 Pearson Education, Inc.The WebMost popular Internet serviceDeveloped in early 1990sProvides access to Web pages HTML documents that may include text, graphics, animations, music, videosWeb content has grown exponentially Google indexes between 75 – 100 billion pagesSlide 1-*Copyright © 2011 Pearson Education, Inc.Insight on Technology: Spider Webs, Bow Ties, Scale-Free Networks, and the Deep Web Class DiscussionWhat is the “small world” theory of the Web?What is the significance of the “bow-tie” form of the Web? Why does Barabasi call the Web a “scale-free network” with “very connected super nodes”?Slide 1-*Copyright © 2011 Pearson Education, Inc.Origins & Growth of E-commercePrecursors:Baxter Healthcare Electronic Data Interchange (EDI) French Minitel (1980s videotex system)None had functionality of Internet1995: Beginning of e-commerceFirst sales of banner advertisementsE-commerce fastest growing form of commerce in United States Slide 1-*Copyright © 2011 Pearson Education, Inc.The Growth of B2C E-commerce Figure 1.4, Page 25 Slide 1-*SOURCES: Based on data from eMarketer, Inc., 2010; authors’ estimates.Copyright © 2011 Pearson Education, Inc.The Growth of B2B E-commerce Figure 1.5, Page 28 Slide 1-*SOURCES: Based on data from U.S. Census Bureau, 2010; authors’ estimates.Copyright © 2011 Pearson Education, Inc.Technology and E-commerce in PerspectiveThe Internet and Web: Just two of a long list of technologies that have greatly changed commerceAutomobilesRadioE-commerce growth will eventually cap as it confronts its own fundamental limitations.Slide 1-*Copyright © 2011 Pearson Education, Inc.Potential Limitations on the Growth of B2C E-commerceExpensive technology Sophisticated skill set Persistent cultural attraction of physical markets and traditional shopping experiencesPersistent global inequality limiting access to telephones and computersSaturation and ceiling effectsSlide 1-*Copyright © 2011 Pearson Education, Inc.E-commerce: A Brief History1995-2000: InnovationKey concepts developedDot-coms; heavy venture capital investment2001-2006: ConsolidationEmphasis on business-driven approach2006-Present: ReinventionExtension of technologiesNew models based on user-generated content, social networks, servicesSlide 1-*Copyright © 2011 Pearson Education, Inc.Early Visions of E-commerceComputer scientists: Inexpensive, universal communications and computing environment accessible by allEconomists: Nearly perfect competitive market and friction-free commerceLowered search costs, disintermediation, price transparency, elimination of unfair competitive advantageEntrepreneurs: Extraordinary opportunity to earn far above normal returns on investment – first mover advantageSlide 1-*Copyright © 2011 Pearson Education, Inc.Insight on Business “Noodlenomics” Guides Internet Investment in 2010 Class DiscussionWhat explains the rapid growth in private investment in e-commerce firms in the period 1998–2000? Was this investment irrational?What was the effect of the big bust of March 2000 on e-commerce investment?What is the value to investors of a company such as YouTube which has yet to show profitability?Why do you think investors today would be interested in investing in or purchasing e-commerce companies? Would you invest in an e-commerce company today? Slide 1-*Copyright © 2011 Pearson Education, Inc.Assessing E-commerceMany early visions not fulfilledFriction-free commerceConsumers less price sensitiveConsiderable price dispersionPerfect competitionInformation asymmetries persistDisintermediationFirst mover advantageFast-followers often overtake first moversSlide 1-*Copyright © 2011 Pearson Education, Inc.Predictions for the FutureTechnology will propagate through all commercial activity.Prices will rise to cover the real cost of doing business.E-commerce margins and profits will rise to levels more typical of all retailers.Cast of players will change.Traditional Fortune 500 companies will play dominant role.New startup ventures will emerge with new products, services.Number of successful pure online stores will remain smaller than integrated offline/online stores.Regulatory activity worldwide will grow.Cost of energy will have an influence.Slide 1-*Copyright © 2011 Pearson Education, Inc.Understanding E-commerce: Organizing ThemesTechnology: Development and mastery of digital computing and communications technology Business: New technologies present businesses with new ways of organizing production and transacting businessSociety: Intellectual property, individual privacy, public welfare policySlide 1-*Copyright © 2011 Pearson Education, Inc.The Internet and the Evolution of Corporate Computing Figure 1.9, Page 44 Slide 1-*Copyright © 2011 Pearson Education, Inc.Insight on Society Who Really Cares About Online Privacy? Class DiscussionWhat techniques of privacy invasion are described in the case?Which of these techniques is the most privacy-invading? 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?Slide 1-*Copyright © 2011 Pearson Education, Inc.Academic Disciplines Concerned with E-commerceTechnical approachComputer scienceManagement scienceInformation systemsBehavioral approachInformation systemsEconomicsMarketingManagementFinance/accountingSociologySlide 1-*Copyright © 2011 Pearson Education, Inc.All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice HallCopyright © 2011 Pearson Education, Inc.
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