Trends & Impacts of eBusiness - VDIS10026 Lecture 2 Virtu Design Institute
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Trends & Impacts of eBusiness is a lecture in the subject VDIS10026 Managing Design and eBusiness in the Advanced Diploma of Graphic Design at the Virtu Design Institute.

Trends & Impacts of eBusiness is a lecture in the subject VDIS10026 Managing Design and eBusiness in the Advanced Diploma of Graphic Design at the Virtu Design Institute.

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Trends & Impacts of eBusiness - VDIS10026 Lecture 2 Virtu Design Institute Presentation Transcript

  • 1. Lecture 2 Trends and Impacts of eBusiness by Ron Newman VDIS10026 Managing Design and eBusiness
  • 2. Trends and Impacts of eBusiness VDIS10026 Managing Design and eBusiness Global  trends   In  2010,  the  United  Kingdom  had  the  biggest  eCommerce  market   in  the  world  when  measured  by  the  amount  spent  per  capita.  The   Czech  Republic  is  the  European  country  where  ecommerce  delivers   the  biggest  contribuDon  to  the  enterprises´  total  revenue.  Almost   a  quarter  (24%)  of  the  country’s  total  turnover  is  generated  via  the   online  channel.  Among  emerging  economies,  China's  eCommerce   presence  conDnues  to  expand  every  year.  With  384  million   internet  users,  China's  online  shopping  sales  rose  to  $36.6  billion  in   2009  and  one  of  the  reasons  behind  the  huge  growth  has  been  the   improved  trust  level  for  shoppers.  
  • 3. Trends and Impacts of eBusiness VDIS10026 Managing Design and eBusiness Global  trends   The  Chinese  retailers  have  been  able  to  help  consumers  feel  more   comfortable  shopping  online.  China's  cross-­‐border  eCommerce  is   also  growing  rapidly.  eCommerce  transacDons  between  China  and   other  countries  increased  32%  to  2.3  trillion  yuan  ($375.8  billion)   in  2012  and  accounted  for  9.6%  of  China's  total  internaDonal  trade       Other  BRIC  countries  are  witnessing  the  accelerated  growth  of   eCommerce  as  well.  In  Russia,  the  total  eCommerce  market  is   projected  to  total  somewhere  between  690  billion  rubles  ($23   billion)  and  900  billion  rubles  ($30  billion)  in  2015,  at  2010  values.  
  • 4. Trends and Impacts of eBusiness VDIS10026 Managing Design and eBusiness Global  trends   eCommerce  will  equal  5%  of  total  retail  volume  in  Russia.  Longer-­‐ term,  the  market  size  of  Russian  e-­‐commerce  could  reach  $50   billion  by  2020.  Ecommerce  players  need  to  understand  unique   insights  about  trust  factor,  online  payments  and  language   peculiariDes  to  penetrate  the  Russian  market.       Brazil's  eCommerce  is  growing  quickly  with  retail  eCommerce  sales   expected  to  grow  at  a  healthy  double-­‐digit  pace  through  2014.  By   2016,  eMarketer  expects  retail  ecommerce  sales  in  Brazil  to  reach   $17.3  billion.  
  • 5. Trends and Impacts of eBusiness VDIS10026 Managing Design and eBusiness Global  trends   India's  eCommerce  growth,  on  the  other  hand,  has  been  slower   although  the  country's  potenDal  remains  solid  considering  its   surging  economy,  the  rapid  growth  of  internet  penetraDon,  English   language  proficiency  and  a  vast  market  of  1.2  billion  consumers   (although  perhaps  only  50  million  access  the  internet  through  PCs   and  some  esDmate  the  most  acDve  group  of  eCommerce   customers  numbers  only  2-­‐3  million).  eCommerce  traffic  grew   about  50%  from  2011  to  2012,  from  26.1  million  to  37.5  million,   according  to  a  report  released  by  Com  Score.  Much  of  the  14   billion  dollars  in  2012  eCommerce  was  generated  from  travel  sites.  
  • 6. Trends and Impacts of eBusiness VDIS10026 Managing Design and eBusiness Global  trends   eCommerce  is  also  expanding  across  the  Middle  East.  Having   recorded  the  world's  fastest  growth  in  internet  usage  between   2000  and  2009,  the  region  is  home  to  more  than  60  million   internet  users.  Retail,  travel  and  gaming  are  the  region's  top   eCommerce  segments,  in  spite  of  difficulDes  such  as  the  lack  of   region-­‐wide  legal  frameworks  and  logisDcal  problems  in  cross-­‐ border  transportaDon.  eCommerce  has  become  an  important  tool   for  small  and  large  businesses  worldwide,  not  only  to  sell  to   customers,  but  also  to  engage  them.  In  2012,  ecommerce  sales   topped  $1  trillion  for  the  first  Dme  in  history.    
  • 7. Trends and Impacts of eBusiness VDIS10026 Managing Design and eBusiness Global  trends   Mobile  devices  are  playing  an  increasing  role  in  eCommerce.  Some   esDmates  show  that  purchases  made  on  mobile  devices  will  make   up  25%  of  the  market  by  2017.  According  to  Cisco  Visual   Networking  Index,  in  2014  the  amount  of  mobile  devices  will   outnumber  world  populaDon.  MulDchannel  Selling  is  also  worth   menDoning  though  it  is  relaDvely  young  it  has  already  managed  to   become  a  key  driver  for  promoDon  of  small  business  companies   unable  to  compete  with  media  giants  like  Google.  The  essence  of  it   lies  in  equipping  a  few  shopping  plaforms  like  Amazon  or  Nextag   for  goods  promoDon.  
  • 8. Trends and Impacts of eBusiness VDIS10026 Managing Design and eBusiness Governmental  regula1on   In  the  United  States,  some  electronic  commerce  acDviDes  are   regulated  by  the  Federal  Trade  Commission  (FTC).  These  acDviDes   include  the  use  of  commercial  e-­‐mails,  online  adverDsing  &   consumer  privacy.  The  CAN-­‐SPAM  Act  203  establishes  naDonal   standards  for  direct  markeDng  over  e-­‐mail.  The  FTC  Act  regulates   all  forms  of  adverDsing,  including  online  adverDsing,  and  states   that  adverDsing  must  be  truthful  and  non-­‐decepDve.  Using  its   authority  under  the  Act,  which  prohibits  unfair  or  decepDve   pracDces,  the  FTC  has  brought  cases  enforcing  promises  in   corporate  privacy  statements,  including  promises  about  the   security  of  consumers'  personal  informaDon.
  • 9. Trends and Impacts of eBusiness VDIS10026 Managing Design and eBusiness Governmental  regula1on   As  result,  any  corporate  privacy  policy  related  to  e-­‐commerce   acDvity  may  be  subject  to  enforcement  by  the  FTC.  In  the  USA  the   Ryan  Haight  Online  Pharmacy  Consumer  ProtecDon  Act  of  2008,   which  came  into  law  in  2008,  amends  the  Controlled  Substances   Act  to  address  online  pharmacies.     Interna1onally  the  InternaDonal  Consumer  ProtecDon  and   Enforcement  Network  (ICPEN),  was  formed  in  1991  from  an   informal  network  of  government  customer  fair  trade   organisaDons.  
  • 10. Trends and Impacts of eBusiness VDIS10026 Managing Design and eBusiness Governmental  regula1on   The  purpose  of  the  ICPEN  is  to  find  ways  of  co-­‐operaDng  on   tackling  consumer  problems  from  cross-­‐border  transacDons  in   both  goods  and  services,  ensuring  exchanges  of  informaDon   among  the  parDcipants  for  mutual  benefit  and  understanding.   From  this  came  Econsumer.gov,  an  ICPEN  iniDaDve  since  April   2001,  a  portal  to  report  complaints  about  online  and  related   transacDons  with  foreign  companies.  Also  Asia  Pacific  Economic   Coopera1on  (APEC)  was  established  in  1989  to  achieve  stability,   security  &  prosperity  for  the  region  through  free  and  open  trade  &   investment.  APEC  has  an  Electronic  Commerce  Steering  Group  &   works  on  common  privacy  regulaDons  in  the  APEC  region.  
  • 11. Trends and Impacts of eBusiness VDIS10026 Managing Design and eBusiness Governmental  regula1on   In  Australia,  Trade  is  covered  under  Australian  Treasury  Guidelines   for  electronic  commerce,  and  the  Australian  CompeDDon  &   Consumer  Commission  regulates  and  offers  advice  on  how  to  deal   with  businesses  online,  and  offers  specific  advice  on  what  happens   if  things  go  wrong.  Also  Australian  government  commerce  website   provides  informaDon  on  e-­‐commerce  in  Australia.  In  the  United   Kingdom,  The  FSA  (Financial  Services  Authority)  is  the  competent   authority  for  most  aspects  of  the  Payment  Services  DirecDve  (PSD).   The  UK  implemented  the  PSD  through  the  Payment  Services   RegulaDons  2009  (PSRs),  which  came  into  effect  on  1  Nov  2009.  
  • 12. Trends and Impacts of eBusiness VDIS10026 Managing Design and eBusiness Governmental  regula1on   The  UK  PSR  affects  firms  providing  payment  services  and  their   customers.  These  firms  include  banks,  non-­‐bank  credit  card  issuers   and  non-­‐bank  merchant  acquirers,  e-­‐money  issuers,  etc.  The  PSRs   created  a  new  class  of  regulated  firms  known  as  payment   insDtuDons  (PIs)  (such  as  Paypal),  who  are  subject  to  new  strict   prudenDal  requirements.       ArDcle  87  of  the  PSD  required  the  European  Commission  to  report   and  act  on  the  implementaDon  of  the  PSD  by  1  Nov  2012.  
  • 13. Trends and Impacts of eBusiness VDIS10026 Managing Design and eBusiness Forms  of  eCommerce  Ac1vity   Contemporary  electronic  commerce  involves  everything  from   ordering  "digital"  content  for  immediate  online  consumpDon,  to   ordering  convenDonal  goods  and  services,  to  "meta"  services  to   facilitate  other  types  of  electronic  commerce.  On  the  insDtuDonal   level,  big  corporaDons  and  financial  insDtuDons  use  the  internet  to   exchange  financial  data  to  facilitate  domesDc  and  internaDonal   business.  Data  integrity  and  security  are  very  hot  and  pressing   issues  for  electronic  commerce.  Other  nomenclature  aside  from   tradiDonal  e-­‐Commerce,  m-­‐Commerce  worth  researching  are  t-­‐ Commerce  channels,  olen  seen  as  the  2013  poster  children  of   electronic  I-­‐Commerce.  
  • 14. Trends and Impacts of eBusiness VDIS10026 Managing Design and eBusiness Impact  on  markets  and  retailers   Economists  have  theorised  that  eCommerce  ought  to  lead  to   intensified  price  compeDDon,  as  it  increases  consumers'  ability  to   gather  informaDon  about  products  and  prices.  Research  by  four   economists  at  the  University  of  Chicago  has  found  that  the  growth   of  online  shopping  has  also  affected  industry  structure  in  two   areas  that  have  seen  significant  growth  in  e-­‐commerce;  bookshops   and  travel  agencies.  Generally,  larger  firms  are  able  to  use   economies  of  scale  and  offer  lower  prices.  One  of  a  few  excepDons   to  this  panern  has  been  the  very  smallest  category  of  retailers   such  as  the  bookseller  shops  with  between  one  and  four   employees,  which  appear  to  have  withstood  the  trend.  
  • 15. Trends and Impacts of eBusiness VDIS10026 Managing Design and eBusiness Impact  on  markets  and  retailers   Individual  or  business  involved  in  eCommerce  whether  buyers  or   sellers  rely  on  Internet-­‐based  technology  in  order  to  accomplish   their  transacDons.  eCommerce  is  recognised  for  its  ability  to  allow   business  to  communicate  and  to  form  transacDon  anyDme  and   anyplace.  Wherever  an  individual  is  in  the  world,  business  can  be   conducted  through  the  internet.  The  power  of  eCommerce  allows   geophysical  barriers  to  disappear,  making  all  consumers  and   businesses  on  earth  potenDal  customers  and  suppliers.  E-­‐bay  is  a   good  example  of  eCommerce  business  where  individuals  and   businesses  are  able  to  post  their  items  for  sale  around  the  globe.  
  • 16. Trends and Impacts of eBusiness VDIS10026 Managing Design and eBusiness eCommerce  Business  Types   eCommerce  has  grown  in  importance  as  companies  have  adopted   pure-­‐click  and  brick-­‐and-­‐click  channel  systems.     Pure-­‐click  or  pureplay  companies  are  those  that  have  launched  a   website  without  any  previous  existence  as  a  firm.  Bricks-­‐and-­‐clicks   companies  are  those  exisDng  companies  that  have  added  an  online   site  for  eCommerce.       Click-­‐to-­‐brick  online  retailers  are  those  that  later  open  physical   locaDons  to  supplement  their  online  efforts.  
  • 17. Lecture 2 Trends and Impacts of eBusiness by Ron Newman VDIS10026 Managing Design and eBusiness