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Electronic Commerce
The Revolution Is Just Beginning
Types of Commerce
2
Traditional Commerce
Finding
Sellers
• Buyers find
sellers
• Sellers
advertise
Selection of
Goods
• Sellers
present
their goods
Negotiation
• Sale
• Payment
• Delivery
3
What is Commerce?
 Commerce = com- (together)+ mercis-
(merchandise).
 1530s, from Middle French commerce (14c.),
 from Latin commercium "trade, trafficking,"
 from com- "together" + merx (genitive mercis)
"merchandise“
Source: Online Etymology Dictionary, retrieved on 29.09.2013 from http://www.etymonline.com
4
Introduction – What is E-commerce
 The use of the Internet, the Web, and apps to
transact business. More formally, digitally enabled
commercial transactions between and among
organizations and individuals.
 The process of buying, selling, or exchanging
products, services, or information via computer
networks
 All electronically mediated information exchanges
between an organization and its external
stakeholders
Kalakota and Whinston (1997) refer to a range of different
perspectives for e-commerce:
1 A communications perspective – the delivery of information,
products or services or payment by electronic means.
2 A business process perspective – the application of technology
towards the automation of business transactions and work-
flows.
3 A service perspective – enabling cost cutting at the same time
as increasing the speed and quality of service delivery.
4 An online perspective – the buying and selling of products and
information online.
What is Electronic Business?
Electronic
Commerce
Collaborating
with partners
Servicing
Customers
Conducting
transactions
within an
organization
Conducting E-
Learning
7
Different perspectives on EC
 Doing business electronically by completing business
processes over networks
 A tool to cut service costs while improving the quality of
customer service and increasing the speed of service
delivery
 Enabler of online learning and training
 Framework for inter- and intra-organizational
collaboration
 A gathering place for community members to learn,
transact, and collaborate such as in social networks
8
E-Commerce
Digitally enabled transactions include all transactions
mediated by digital technology. For the most part, this means
transactions that occur over the Internet, the Web and/or via
mobile apps. Commercial transactions involve the exchange of
value (e.g., money) across organizational or individual
boundaries in return for products and services.
Exchange of value is important for understanding the limits of
e-commerce.
Without an exchange of value, no commerce occurs.
Origins
Although e-commerce is not very old, it already has a
tumultuous history. The history of e-commerce can be
usefully divided into three periods:
1995–2000, the period of invention;
2001–2006, the period of consolidation;
2007–present, a period of reinvention with social,
mobile, and local expansion.
lec1.ppt.ppt
Origins and Growth of E-commerce
 1995: Beginning of e-commerce
 beginning in 1995 with the first widespread use of the Web to advertise,
First sales of banner advertisements products
 E-commerce meant selling retail goods, usually, quite simple goods, on the
Internet. There simply was not enough bandwidth for more complex
products. Marketing was limited to unsophisticated static display ads and
not very powerful search engines.
 E-commerce fastest growing form of commerce in
United States
E-commerce: A Brief History
 1995–2000: Invention
Key concepts developed
Dot-coms; heavy venture capital investment
 2001–2006: Consolidation
Emphasis on business-driven approach
 2006–Present: Reinvention
Extension of technologies
New models based on user-generated content,
social networks, services
E-commerce Trends 2012–2013
 Mobile platform solidifies
 Mobile e-commerce explodes
 Continued growth of social networks
 Expansion of social and local
e-commerce
 Explosive growth in “Big Data”
 E-books gain wide acceptance
Dimensions of Electronic Commerce
15
 Pure vs. Partial
– Partial, when at least 1 dim is electronic such
as ordering food online
– Pure, when no physical dimensions is involved
 Internet vs. Non-Internet EC
– Internet
– Private networks (e.g., ATM)
– LAN (e.g., using services at airports accessed
via intranet)
16
Organisations
17
 Brick-and-mortar (old economy) organizations
– Primary business conducted offline
– E.g. the super market around the corner
 Virtual (pure-play) organizations
– business conducted purely online
– E.g. online gaming; providing web space
 Click-and-mortar (click-and-brick) organizations
– Some EC activities
– E.g., the super store around the SUT Metro
station uses an eShop to sell food, drinks, and
fruit
Intranet and Extranet
 Intranet :
A private network within a single company using
Internet standards to enable employees to
access and share information using web
publishing technology.
 Extranet :
A service provided through Internet and web
technology delivered by extending an intranet
beyond a company to customers, suppliers and
collaborators.
Information Systems
19
 Interorganizational information systems (IOSs)
Communications systems that allow routine
transaction processing and information flow
between two or more organizations
 Intraorganizational information systems
Communication systems that enable e-commerce
activities to go on within individual organizations
summarizes the evolution of digital
and web-related technologies
 Since the Web 2.0 concept has been widely applied, it is
natural that commentators would try to evolve the concept to
Web 3.0, although the term hasn’t been widely applied to date.
We can suggest that as web functionality evolves, these
approaches which could be deemed ‘Web 3.0’ will become
more important:
1.Web applications. Usage of web-based applications and
services (like Google word processor and spreadsheets) using
the web in this way is sometimes termed ‘cloud computing’
where all that is really needed for many activities is a computer
with a web browser, with local software applications used less
widely.
2. Syndication. Increased incorporation of syndicated content and
services from other sites or a network into a site (using tools
such as Yahoo! Pipes and XML exchange between widgets).
3.Streamed video or IPTV. Increased use of streamed
video from existing TV providers and user-
generated content (as suggested by use of YouTube
and IPTV services such as Joost);
4. Virtual worlds. Increased use of immersive virtual
environments such as Second Life;
5. Personal data integration. Increased exchange of
data between social networks fulfilling different
needs (as indicated by the recent Google
development of OpenSocial);
6. The semantic web. Increased use of semantic
markup leading to the semantic web envisioned by
Tim Berners-Lee over 10 years ago.
Figure 1.7 Evolution of web technologies
Source: Adapted from Spivack (2007)

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lec1.ppt.ppt

  • 3. Traditional Commerce Finding Sellers • Buyers find sellers • Sellers advertise Selection of Goods • Sellers present their goods Negotiation • Sale • Payment • Delivery 3
  • 4. What is Commerce?  Commerce = com- (together)+ mercis- (merchandise).  1530s, from Middle French commerce (14c.),  from Latin commercium "trade, trafficking,"  from com- "together" + merx (genitive mercis) "merchandise“ Source: Online Etymology Dictionary, retrieved on 29.09.2013 from http://www.etymonline.com 4
  • 5. Introduction – What is E-commerce  The use of the Internet, the Web, and apps to transact business. More formally, digitally enabled commercial transactions between and among organizations and individuals.  The process of buying, selling, or exchanging products, services, or information via computer networks  All electronically mediated information exchanges between an organization and its external stakeholders
  • 6. Kalakota and Whinston (1997) refer to a range of different perspectives for e-commerce: 1 A communications perspective – the delivery of information, products or services or payment by electronic means. 2 A business process perspective – the application of technology towards the automation of business transactions and work- flows. 3 A service perspective – enabling cost cutting at the same time as increasing the speed and quality of service delivery. 4 An online perspective – the buying and selling of products and information online.
  • 7. What is Electronic Business? Electronic Commerce Collaborating with partners Servicing Customers Conducting transactions within an organization Conducting E- Learning 7
  • 8. Different perspectives on EC  Doing business electronically by completing business processes over networks  A tool to cut service costs while improving the quality of customer service and increasing the speed of service delivery  Enabler of online learning and training  Framework for inter- and intra-organizational collaboration  A gathering place for community members to learn, transact, and collaborate such as in social networks 8
  • 9. E-Commerce Digitally enabled transactions include all transactions mediated by digital technology. For the most part, this means transactions that occur over the Internet, the Web and/or via mobile apps. Commercial transactions involve the exchange of value (e.g., money) across organizational or individual boundaries in return for products and services. Exchange of value is important for understanding the limits of e-commerce. Without an exchange of value, no commerce occurs.
  • 10. Origins Although e-commerce is not very old, it already has a tumultuous history. The history of e-commerce can be usefully divided into three periods: 1995–2000, the period of invention; 2001–2006, the period of consolidation; 2007–present, a period of reinvention with social, mobile, and local expansion.
  • 12. Origins and Growth of E-commerce  1995: Beginning of e-commerce  beginning in 1995 with the first widespread use of the Web to advertise, First sales of banner advertisements products  E-commerce meant selling retail goods, usually, quite simple goods, on the Internet. There simply was not enough bandwidth for more complex products. Marketing was limited to unsophisticated static display ads and not very powerful search engines.  E-commerce fastest growing form of commerce in United States
  • 13. E-commerce: A Brief History  1995–2000: Invention Key concepts developed Dot-coms; heavy venture capital investment  2001–2006: Consolidation Emphasis on business-driven approach  2006–Present: Reinvention Extension of technologies New models based on user-generated content, social networks, services
  • 14. E-commerce Trends 2012–2013  Mobile platform solidifies  Mobile e-commerce explodes  Continued growth of social networks  Expansion of social and local e-commerce  Explosive growth in “Big Data”  E-books gain wide acceptance
  • 16.  Pure vs. Partial – Partial, when at least 1 dim is electronic such as ordering food online – Pure, when no physical dimensions is involved  Internet vs. Non-Internet EC – Internet – Private networks (e.g., ATM) – LAN (e.g., using services at airports accessed via intranet) 16
  • 17. Organisations 17  Brick-and-mortar (old economy) organizations – Primary business conducted offline – E.g. the super market around the corner  Virtual (pure-play) organizations – business conducted purely online – E.g. online gaming; providing web space  Click-and-mortar (click-and-brick) organizations – Some EC activities – E.g., the super store around the SUT Metro station uses an eShop to sell food, drinks, and fruit
  • 18. Intranet and Extranet  Intranet : A private network within a single company using Internet standards to enable employees to access and share information using web publishing technology.  Extranet : A service provided through Internet and web technology delivered by extending an intranet beyond a company to customers, suppliers and collaborators.
  • 19. Information Systems 19  Interorganizational information systems (IOSs) Communications systems that allow routine transaction processing and information flow between two or more organizations  Intraorganizational information systems Communication systems that enable e-commerce activities to go on within individual organizations
  • 20. summarizes the evolution of digital and web-related technologies  Since the Web 2.0 concept has been widely applied, it is natural that commentators would try to evolve the concept to Web 3.0, although the term hasn’t been widely applied to date. We can suggest that as web functionality evolves, these approaches which could be deemed ‘Web 3.0’ will become more important: 1.Web applications. Usage of web-based applications and services (like Google word processor and spreadsheets) using the web in this way is sometimes termed ‘cloud computing’ where all that is really needed for many activities is a computer with a web browser, with local software applications used less widely. 2. Syndication. Increased incorporation of syndicated content and services from other sites or a network into a site (using tools such as Yahoo! Pipes and XML exchange between widgets).
  • 21. 3.Streamed video or IPTV. Increased use of streamed video from existing TV providers and user- generated content (as suggested by use of YouTube and IPTV services such as Joost); 4. Virtual worlds. Increased use of immersive virtual environments such as Second Life; 5. Personal data integration. Increased exchange of data between social networks fulfilling different needs (as indicated by the recent Google development of OpenSocial); 6. The semantic web. Increased use of semantic markup leading to the semantic web envisioned by Tim Berners-Lee over 10 years ago.
  • 22. Figure 1.7 Evolution of web technologies Source: Adapted from Spivack (2007)