Learning Objectives 1.1 Understand why it is important to study e-commerce. 1.2 Define e-commerce, understand how e-commerce differs from e-business, identify the primary technological building blocks underlying e-commerce, and recognize major current themes in e-commerce. 1.3 Identify and describe the unique features of e-commerce technology and discuss their business significance. 1.4 Describe the major types of e-commerce. 1.5 Understand the evolution of e-commerce from its early years to today. 1.6 Describe the major themes underlying the study of e-commerce. 1.7 Identify the major academic disciplines contributing to e-commerce.
Everything On Demand: The “Grabization” of E-commerce • Class Discussion • Have you used Grab 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 Grab and Airbnb?
The First Thirty Seconds • First two decades of e-commerce • Just the beginning • Rapid growth and change • Technologies evolve at exponential rates • Disruptive business change • New opportunities • Why study e-commerce • Understand opportunities and risks • Analyze e-commerce ideas, models, issues
Introduction to E-commerce • Use of Internet to transact business • Includes Web, mobile browsers and apps • More formally: • Digitally enabled commercial transactions between and among organizations and individuals
The Difference between E-commerce and E-business • E-business: • Digital enabling of transactions and processes within a firm, involving information systems under firm’s control • Does not include commercial transactions involving an exchange of value across organizational boundaries
Insight on Technology: Will Apps Make the Web Irrelevant? • Class Discussion • What are the advantages and disadvantages of apps, compared with websites, 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?
Major Trends in E-commerce • Business trends include: • All forms of e-commerce show very strong growth • Technology trends include: • Mobile platform has made mobile e-commerce reality • Societal trends include: • Increased online social interaction and sharing
E-commerce: A Brief History (1 of 4) • Precursors • Baxter Healthcare modem-based system • Order entry systems • Electronic Data Interchange (EDI) standards • French Minitel (1980s videotex system)
E-commerce: A Brief History (2 of 4) • 1995–2000: Invention • Sale of simple retail goods • Limited bandwidth and media • Euphoric visions of • Friction-free commerce • First-mover advantages • Dot-com crash of 2000
E-commerce: A Brief History (3 of 4) • 2001–2006: Consolidation • Emphasis on business-driven approach • Traditional large firms expand presence • Start-up financing shrinks • More complex products and services sold • Growth of search engine advertising • Business web presences expand
E-commerce: A Brief History (4 of 4) • 2007–Present: Reinvention • Rapid growth of: • Web 2.0, including online social networks • Mobile platform • Local commerce • On-demand service economy • Entertainment content develops as source of revenues • Transformation of marketing • Web 3.0
Insight on Business: Rocket Internet • Class Discussion • What are the benefits of investing in a company that Rocket Internet has launched? • Is an incubator the best solution for start-ups to find funding? Why or why not? • Why is Rocket Internet controversial?
Assessing E-commerce (1 of 2) • Stunning technological success • Early years a mixed business success • Few early dot-coms have survived • Online sales growing rapidly • Many early visions not fulfilled • Price dispersion • Information asymmetry • New intermediaries
Assessing E-commerce (2 of 2) • Other surprises • Fast-follower advantages • Start-up costs • Impact of mobile platform • Emergence of on-demand e-commerce
Understanding E-commerce: Organizing Themes • Technology: • 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
Insight on Society: Facebook and the Age of Privacy • Class discussion: • Why are social networks interested in collecting user information? • What types of privacy invasion are described in the case? Which is the most privacy-invading, and why? • How is e-commerce different from traditional markets with respect to privacy? Don’t merchants always want to know their customer? • How do you protect your privacy online?
Academic Disciplines Concerned with E-commerce • Technical • Computer science, management science, information systems • Behavioral • Information systems research, economics, marketing, management, finance/accounting, sociology
Careers in E-commerce • Position: Category specialist in E-commerce Retail Program • Qualification/Skills • Preparing for the Interview • Possible Interview Questions
