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CHAPTER 1
Introduction to
eCommerce Systems
Faculty of Information & Communication Technology
Learning objectives
Define eCommerce and describe how it differs from eBusiness.
Identify and describe the unique features of eCommerce
technology and discuss their business significance.
Recognize and describe Web 2.0 applications.
Describe the major types of eCommerce .
Discuss the origins and growth of eCommerce .
Explain the evolution of eCommerce from its early years to
today.
Identify the factors that will define the next five years of
eCommerce .
Describe the major themes underlying the study of eCommerce .
Identify the major academic disciplines contributing to
eCommerce .
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Changes in Organizational
Makeup
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eBusiness:
Digital enablement of transactions and processes within
a firm, involving information systems under firms control
Does not include commercial transactions involving an
exchange
of value across organizational boundaries
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Unique Features of
eCommerce Technology
1. Ubiquity (available everywhere, all the time)
2. Global reach (across cultural/national boundaries)
3. Universal standards (lowers market entry for merchants and
search costs for consumers)
4. Information richness (more powerful selling environment)
5. Interactivity (can simulate face-to-face experience, but on a
global scale)
6. Information density (amount and quality of information
available to all market participants)
7. Personalization/customization
8. Social technology
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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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Web 2.0
User-centered applications and social media technologies
User-generated content and communication
Highly interactive, social communities
Large audiences; yet mostly unproven business models
e.g., Twitter, YouTube, Facebook, Second Life,
Wikipedia, Digg.
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Types of eCommerce
Classified by market relationship
Business-to-Consumer (B2C)
Business-to-Business (B2B)
Consumer-to-Consumer (C2C)
Classified by technology used
Peer-to-Peer (P2P)
Enables Internet users to share files and computer
resources
Mobile commerce (M-commerce)
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eCommerce Applications
Business-to-Consumer (Internet)
Business-to-Business (Internet and Extranet)
Supply-Chain Management
Business-within-Business (Intranet)
Business-to-Government (B2G)
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Business-to-Consumer
(Internet)
The consumers use of a merchants Web storefront or Web site
Modeled on the traditional shopping experience
Shopping cart is used to hold goods until the customer is ready
to check out
Online order form supported by the appropriate software
Checkout is order and payment processing
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Business-to-Business (Internet
and Extranet)
Business-to-Business eCommerce is industrial marketing
among the processes it handles are fulfillment and procurement
Companies can conveniently and quickly check their suppliers
inventories or make instant purchases
Competing online should also force prices for materials and
supplies to drop dramatically
B2B often use an extranet: a shared intranet vendors,
contractors, suppliers, and key customers
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Consumer-to-Consumer
eCommerce
Provide a way for consumers to sell to each other
Consumer:
prepares the product for market
places the product for auction or sale
relies on market maker to provide catalog,
search
engine, and transaction clearing
capabilities
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Business-within-Business
(Intranet)
Strictly a within company type of information exchange
Restricted to internal employees and customers
Firewalls to keep out non employees
E-mail replaces paper for the communication of messages order
acknowledgement and approvals, and other forms or
correspondence
The intranet becomes a facilitator for the exchange of
information and services among the departments or divisions of a
company
Different departments with different PCs or local area networks
can interact on an intranet
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Benefits of an Intranet
Low development and maintenance costs
Environmentally friendly because it is companyspecific
Availability and sharing of information
Timely, current information
Quick and easy dissemination of information
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Business-to-Government (B2G)
The government market is strikingly similar to B2B.
Huge potential for savings in $1.8 trillion federal and $1 trillion
state and local expenditures
Changing the status quo in government is not so easy
Changes to employee tasks and job restructuring often
create resistance
Tax savings potential is not easily recognized
Committing to technology means constant need for
upgrades and
additional costs
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The Internet
Worldwide network of computer networks built on
common standards
Created in late 1960s
Services include the Web, e-mail, file transfers, etc.
Can measure growth by looking at number of Internet
hosts with domain names
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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
Google reports 1 trillion unique URLs; 120 billion
pages indexed
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2 | Bing 15 - eBizMBA Rank | 350,000,000 - Estimated Unique Monthly Visitors | 5 - Compete Rank | 19 Quantcast Rank | 22 - Alexa Rank | August 27, 2014. The Most Popular Search Engines | eBizMBA
5 | Aol Search 245 - eBizMBA Rank | 125,000,000 - Estimated Unique Monthly Visitors |
*250* - Compete Rank |*240* - Quantcast Rank | NA - Alexa Rank | August 27, 2014.
The Most Popular Search Engines | eBizMBA
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