The document discusses e-commerce, defining it as digitally enabled commercial transactions between organizations and individuals, and distinguishing it from e-business. It describes the unique features of e-commerce technology, types of e-commerce such as business-to-consumer (B2C), business-to-business (B2B), and consumer-to-consumer (C2C), as well as the impact of the internet on e-commerce growth and dynamics. Additionally, it covers related concepts like e-government, e-learning, and the historical context leading to the evolution of e-commerce.

1. 5-1
Electronic Commerce
Chapter 5

2. 5-2
Learning Objectives
• Define e-commerce and describe how it differs from e-
business
• Identify the unique features of e-commerce technology
and discuss their business significance
• Describe the major types of e-commerce
• Understand the visions and forces behind the E-
commerce
• Understand the limitations of E-commerce
• Identify the major academic disciplines contributing to e-
commerce research

3. E-commerce Defined
• E-commerce involves digitally enabled
commercial transactions between and
among organizations and individuals
• Digitally enabled transactions include all
transactions mediated by digital technology
• Commercial transactions involve the
exchange of value across organizational or
individual boundaries in return for products
or services
5-3

4. E-commerce vs. E-business
• Debate among consultants and academics
about meanings and limitations of terms e-
commerce and e-business
• We use the term e-business to refer primarily
to the digital enablement of transactions and
processes within a firm, involving information
systems under the control of the firm
• E-business does not include commercial
transactions involving an exchange of value
across organizational boundaries
5-4

5. Seven Unique Features of E-commerce
Technology and Their Significance
• Is ubiquitous (available everywhere, all the time)
• Offers global reach (across cultural/national boundaries)
• Operates according to universal standards (lowers market
entry for merchants and search costs for consumers)
• Provides information richness (more powerful selling
environment)
• Is interactive (can simulate face-to-face experience, but on
global scale)
• Increases information density (amount and quality of
information available to all market participants)
• Permits personalization/customization
5-5

6. Slide 1-6
Seven Unique Features of E-commerce Technology
Table 1.2,
Page 12

7. Types of E-commerce
Classified by nature of market
relationship
• Business-to-Consumer (B2C)
• Business-to-Business (B2B)
• Consumer-to-Consumer (C2C)
5-7

8. Business-to-Consumer (B2C)
E-commerce
• Involves online businesses attempting to
reach individual consumers
• In 2010, total B2C revenues were about
$255 billion
• Many types of business models within
this category including online retailers,
content providers, portals, transaction
brokers, service providers, market
creators and community providers
5-8

9. Business-to-Business (B2B)
E-commerce
• Involves businesses focusing on selling to other
businesses
• Largest form of e-commerce ($3.6 trillion in
2010)
• Two primary business models within B2B:
 Net marketplaces (includes e-distributors, e-
procurement companies, exchanges and
industry consortia)
 Private industrial networks (includes single
firm networks and industry-wide networks)
5-9

10. Consumer-to-Consumer (C2C) E-
commerce
• Provides a way for consumers to sell to each
other, with the help of an online market maker
• eBay most well-known example
• Estimated that size of C2C commerce will
reach $80 billion by 2010
5-10

11. E-government
• Use of Internet technologies and e-commerce to
deliver information and services to citizens
– Gives citizens more access to information
– Allows for more feedback from citizens
– Facilitates fundamental changes in relationships between
citizen and government
• Types
– Government-to-citizens (G2C)
• Electronic benefits transfer, payment of taxes
– Government-to-business (G2B)
• RFQs, RFBs, reverse auctions
– Government-to-government (G2G)
• Sharing of databases, information
5-11

12. E-learning
• Online delivery of information for educational or
training purposes
• Benefits
– Eliminates barriers of time, distance, socioeconomic
status
– Saves money, reduces travel time
– Increases access to experts
– Enables large numbers to take classes
– Provides on-demand, self-paced learning
• Limitations
– Special training for instructors and students
– Requires special equipment and support services
– Lack of face-to-face interaction
5-12

13. Growth of the Internet
• The Internet is a worldwide network of computer
networks built on common standards
• Internet was first created in 1960s
• Today is world’s largest network, connecting over 1
billion computers worldwide
• Services include the Web, e-mail, file transfers, etc.
• Can measure growth of Internet by looking at number
of Internet hosts with domain names:
 In January 2010, there were 732 million Internet
hosts with domain names, up from 70 million in
2000
5-13

14. Copyright © 2004 Pearson Education, Inc. Slide 1-14
The Growth of the Internet, Measured by Number of
Internet Hosts with Domain Names
Figure 1.3, Page 20

15. Growth of the Web
• Web is the most popular service on the Internet
• Developed in early 1990s
• Provides access to Web pages -- documents
created with HTML
• Can include text, graphics, animations, music,
videos
• Web content in form of Web pages has grown
exponentially, from over 2 billion pages in 2000
to over 75-100 billion pages in 2010
5-15

16. Copyright © 2004 Pearson Education, Inc. Slide 1-16
The Growth of Web Content
Figure 1.4, Page 21

17. Origins and Growth of E-commerce
• Precursors to e-commerce include
 Baxter Healthcare (in 1970s, used telephone-based
modems to reorder supplies; in 1980s, became a PC-
based remote order entry system)
 Electronic Data Interchange (EDI) standards
developed in 1980s; permitted firms to exchange
commercial documents and conduct digital
commercial transactions across private networks
 French Minitel (1980s videotext system; still in use
today)
• None of these precursor system had functionality of
Internet
5-17

18. Copyright © 2004 Pearson Education, Inc. Slide 1-18
The Growth of B2C E-commerce
Figure 1.5, Page 24

19. Copyright © 2004 Pearson Education, Inc. Slide 1-19
The Growth of B2B E-commerce
Figure 1.6, Page 25

20. Copyright © 2004 Pearson Education, Inc. Slide 1-20
Limitations on the Growth of B2C E-commerce
Table 1.4, Page 26

21. Growth Projections for Wireless Web Devices and Broadband Home
Connections in the United States
Figure 1.7, Page 27
5-21

22. E-commerce I and E-commerce II
• E-commerce I: A period of explosive growth and
extraordinary innovation; key concepts developed
and explored
 Begins in 1995, ends in March 2000 when
stock market valuations for dot.com companies
begin to collapse
 Thousands of dot.com companies formed,
backed by over $125 billion in financial capital
• E-commerce II: Characterized by a reassessment
of e-commerce companies and their value
 Begins in January 2001; ongoing
5-22