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Ecommerce2016

business. technology.
society.
twelfth edition
global edition

Kenneth C.
Laudon
Carol Guercio
Traver
Copyright 2017 Pearson Education Ltd.
Chapter 1
Introduction to E-commerce

Copyright 2017 Pearson Education Ltd.


Class Discussion

The Uber-ization of Everything


Have you used Uber or any other
on-demand service companies?
What is the appeal of these
companies for users and
providers?
Are there any negative
consequences to the increased use
of on-demand services like Uber?

Copyright 2017 Pearson Education Ltd. Slide 1-3


E-commerce Trends 2014
2015
Retail e-commerce grows over 14%
Continued expansion of mobile, social, and
local e-commerce
On-demand service firms show explosive
growth
Cloud computing completes transformation
of mobile platform by storing user content
Continued growth in Big Data and business
analytics
Government surveillance of online
communications expands

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The First 30 Seconds
First 20 years of e-commerce
Justthe beginning
Rapid growth and change

Technologies continue to
evolve at exponential rates
Disruptive
business change
New opportunities

Copyright 2017 Pearson Education Ltd. Slide 1-5


What Is E-commerce?
Use of Internet and Web to
transact business
More formally:
Digitally enabled commercial
transactions between and among
organizations and individuals

Copyright 2017 Pearson Education Ltd. Slide 1-6


E-commerce vs. E-business
E-business:
Digitalenabling 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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Why Study E-commerce?
E-commerce technology is different,
more powerful than previous
technologies
E-commerce brings fundamental
changes to commerce
Traditional commerce:
Consumer as passive targets
Mass-marketing driven
Sales-force driven
Fixed prices
Information asymmetry

Copyright 2017 Pearson Education Ltd. Slide 1-8


Eight Unique Features of
E-commerce Technology
1. Ubiquity
2. Global reach
3. Universal standards
4. Information richness
5. Interactivity
6. Information density
7. Personalization/customization
8. Social technology

Copyright 2017 Pearson Education Ltd. Slide 1-9


Types of E-commerce
May be classified by market relationship or
technology
Business-to-Consumer (B2C)
Business-to-Business (B2B)
Consumer-to-Consumer (C2C)
Mobile e-commerce (M-commerce)
Social e-commerce
Local e-commerce

Copyright 2017 Pearson Education Ltd. Slide 1-10


The Internet
Worldwide network of computer
networks built on common
standards
Created in late 1960s
Services include the Web, e-mail,
file transfers, and many more
Can measure growth by number of
Internet hosts with domain names

Copyright 2017 Pearson Education Ltd. Slide 1-11


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 over 60 trillion unique URLs
Deep Web may be 1000 times greater

Copyright 2017 Pearson Education Ltd. Slide 1-12


The Mobile Platform
Most recent development in
Internet infrastructure
Enables access to the Internet via
wireless networks or cell-phone
service
Mobile devices include
Tablets
Smartphones
Ultra-lightweight laptops

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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?

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Origins and Growth of E-
commerce
Precursors:
Baxter Healthcare
Electronic Data Interchange (EDI)
French Minitel (1980s videotex system)
None had functionality of Internet

1995: Beginning of e-commerce


First sales of banner advertisements
E-commerce fastest growing form
of commerce in United States

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E-commerce: A Brief
19952000:History
Invention
Key concepts developed
Limited bandwidth and media
Euphoric visions of
Friction-free commerce
Lowered search costs, disintermediation, price
transparency, elimination of unfair competitive
advantage
First-mover advantages
Network profits
Dot-com crash of 2000

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E-commerce: A Brief
History
20012006: (cont.)
Consolidation
Emphasis on business-driven approach
Traditional large firms expand presence
Start-up financing shrinks up
More complex products and services sold
Growth of search engine advertising
Business Web presences expand to include
e-mail, display and search advertising,
and limited community feedback features

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E-commerce: A Brief
History Reinvention
2007Present: (cont.)
Rapid growth of:
Web 2.0, including online social networks
Mobile platform
Local commerce

Entertainment content develops as


source of revenues
Transformation of marketing
On-demand personal services businesses

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Periods in the Development of E-
commerce
Figure 1.8, Page 68

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Assessing E-commerce
Many early visions not fulfilled
Friction-freecommerce
Perfect competition
Intermediaries have not disappeared
Fast-follower advantages

Unanticipated surprises
Mobile platform
Social networks
On-demand e-commerce

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Understanding E-
commerce: Organizing
Technology:
Themes
Development and mastery of digital computing
and communications technology
Business:
New technologies present businesses with new
ways of organizing production and transacting
business
Society:
Intellectual property, individual privacy, public
welfare policy

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The Internet
and the
Evolution
of Corporate

Computing
Figure 1.11, Page 81

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Academic Disciplines
Concerned with E-commerce
Technical Behavioral
approach approach
Computer science Information

Management systems
science Economics

Information Marketing

systems Management
Finance/accounting
Sociology

Copyright 2017 Pearson Education Ltd. Slide 1-23