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Chapter 1The Revolution Is Just BeginningCopyright 2014 Pearson Education, Inc. Publishing as Prentice Hall

Copyright 2014 Pearson Education, Inc. Publishing as Prentice Hall

Class Discussion

Pinterest: A Picture Is Worth a Thousand WordsHave you used Pinterest or any other content curation sites? What are your main interests?Have you purchased anything based on a pin or board on Pinterest or any other curation site? Why do Pinterest links drive more purchasing than Facebook links?Copyright 2014 Pearson Education, Inc. Publishing as Prentice HallSlide 1-*


E-commerce Trends 20132014Expansion of social, local, and mobile e-commerce Mobile platform begins to rival PC platformContinued growth of cloud computingExplosive growth in Big DataE-books gain wide acceptanceContinued growth of user-generated contentCopyright 2014 Pearson Education, Inc. Publishing as Prentice HallSlide 1-*


The First 30 SecondsFirst 17 years of e-commerceJust the beginningRapid growth and changeTechnologies continue to evolve at exponential ratesDisruptive business changeNew opportunitiesCopyright 2014 Pearson Education, Inc. Publishing as Prentice HallSlide 1-*


What Is E-commerce? Use of Internet and Web to transact businessMore formally:Digitally enabled commercial transactions between and among organizations and individualsCopyright 2014 Pearson Education, Inc. Publishing as Prentice HallSlide 1-*


E-commerce vs. E-businessE-business:Digital enabling of transactions and processes within a firm, involving information systems under firms controlDoes not include commercial transactions involving an exchange of value across organizational boundariesCopyright 2014 Pearson Education, Inc. Publishing as Prentice HallSlide 1-*


Why Study E-commerce?E-commerce technology is different, more powerful than previous technologiesE-commerce brings fundamental changes to commerceTraditional commerce:Consumer as passive targetsMass-marketing drivenSales-force drivenFixed pricesInformation asymmetryCopyright 2014 Pearson Education, Inc. Publishing as Prentice HallSlide 1-*


Eight Unique Features of E-commerce TechnologyUbiquity Global reach Universal standards Information richness Interactivity Information densityPersonalization/customizationSocial technologyCopyright 2014 Pearson Education, Inc. Publishing as Prentice HallSlide 1-*


Web 2.0User-centered applications and social media technologiesUser-generated content and communicationHighly interactive, social communitiesLarge audiences; yet mostly unproven business modelsExamples: Twitter, YouTube, Instagram, Wikipedia, TumblrCopyright 2014 Pearson Education, Inc. Publishing as Prentice HallSlide 1-*


Types of E-commerceMay be classified by market relationship or technologyBusiness-to-Consumer (B2C)Business-to-Business (B2B)Consumer-to-Consumer (C2C)Social e-commerceMobile e-commerce (M-commerce)Local e-commerceCopyright 2014 Pearson Education, Inc. Publishing as Prentice HallSlide 1-*


The Growth of B2C E-commerceFigure 1.3, Page 20

Copyright 2014 Pearson Education, Inc. Publishing as Prentice HallSOURCE: Based on data from eMarketer, Inc., 2013a; authors estimates.Slide 1-*


The Growth of B2B E-commerceFigure 1.4, Page 21

Copyright 2014 Pearson Education, Inc. Publishing as Prentice HallSOURCE: Based on data from U.S. Census Bureau, 2013; authors estimates.Slide 1-*


The InternetWorldwide network of computer networks built on common standardsCreated in late 1960sServices include the Web, e-mail, file transfers, and so onCan measure growth by number of Internet hosts with domain names Copyright 2014 Pearson Education, Inc. Publishing as Prentice HallSlide 1-*


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 reports 30 trillion unique URLs; 120 billion Web pages indexedCopyright 2014 Pearson Education, Inc. Publishing as Prentice HallSlide 1-*


The Mobile PlatformMost recent development in Internet infrastructureEnables access to the Internet via wireless networks or cell-phone serviceMobile devices includeTabletsSmartphonesUltra-lightweight laptopsCopyright 2014 Pearson Education, Inc. Publishing as Prentice HallSlide 1-*


Insight on Technology: Class Discussion

Will Apps Make the Web Irrelevant?What are the advantages and disadvantages of apps, compared with Web sites, for mobile users?What are the benefits of apps for content owners and creators?Will apps eventually make the Web irrelevant? Why or why not?

Copyright 2014 Pearson Education, Inc. Publishing as Prentice HallSlide 1-*


Origins and 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 Copyright 2014 Pearson Education, Inc. Publishing as Prentice HallSlide 1-*


E-commerce: A Brief History19952000: InventionKey concepts developedLimited bandwidth and mediaEuphoric visions of Friction-free commerceLowered search costs, disintermediation, price transparency, elimination of unfair competitive advantageFirst-mover advantagesNetwork profitsDot-com crash of 2000Copyright 2014 Pearson Education, Inc. Publishing as Prentice HallSlide 1-*


E-commerce: A Brief History (cont.)20012006: ConsolidationEmphasis on business-driven approachTraditional large firms expand presenceStart-up financing shrinks upMore complex products and services soldGrowth of search engine advertisingBusiness Web presences expand to include e-mail, display and search advertising, and limited community feedback featuresCopyright 2014 Pearson Education, Inc. Publishing as Prentice HallSlide 1-*


E-commerce: A Brief History (cont.)2007Present: ReinventionRapid growth of: Online social networksMobile platformLocal commerceEntertainment content develops as source of revenuesTransformation of marketingCoordinated marketing on social, mobile, local platformsAnalytic technologies



Insight on Business: Class Discussion

Start-up Boot CampWhy 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 a Y Combinator boot camp?Is an incubator the best solution for start-ups to find funding? Why or why not?



Assessing E-commerceMany early visions not fulfilledFriction-free commerceConsumers less price sensitiveConsiderable price dispersionPerfect competitionInformation asymmetries persistIntermediaries have not disappearedFirst mover advantagesFast-followers often overtake first moversCopyright 2014 Pearson Education, Inc. Publishing as Prentice HallSlide 1-*


Predictions for the FutureTechnology will propagate through all commercial activityLarge, traditional companies will continue to play dominant role, consolidating audiencesStart-up ventures can still attract large audiences in non-dominated arenasIntegrated online/offline companies will experience more growth than purely online companiesAdditional factors:Increased regulation and controlCost of energyCopyright 2014 Pearson Education, Inc. Publishing as Prentice HallSlide 1-*


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 policyCopyright 2014 Pearson Education, Inc. Publishing as Prentice HallSlide 1-*


The Internet and the Evolution of Corporate Computing

Figure 1.11, Page 41



Insight on Society: Class Discussion

Facebook and the Age of PrivacyWhy 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? Dont merchants always want to know their customer?How do you protect your privacy on the Web?Copyright 2014 Pearson Education, Inc. Publishing as Prentice HallSlide 1-*


Academic Disciplines Concerned with E-commerceTechnical approachComputer scienceManagement scienceInformation systemsBehavioral approachInformation systemsEconomicsMarketingManagementFinance/accountingSociologyCopyright 2014 Pearson Education, Inc. Publishing as Prentice HallSlide 1-*




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