Preperation

Cours #1 BIBA
3C UK
PREPARING COURSE #1 BIBA UK
• Preparatory work to Session 1 :
• Scope definition: The international e-commerce landscape (tools such
as AI and chatbot, cookies adhering to local and international data
protection regulations (e.g. GDPR-RGPD), competing global
marketplaces and game changers GAFAMI vs BATHX and other new
entrants...
• User experience (UX) at the heart of the configuration of an ecosystem
• - "Theory of activity" Leontiev
• - Emergence of Avatars in metaverses & virtual social networks
• - industrial bridges
COURSE => Introduction: what are the foundations of the digital transformation of companies?

Improving it is a moving target over time, but there are 3 main structural and systemic approaches (Digital
Transformation of the business organization TDE, Digitization = DL or digital transformation of processes, and
Digitization = DT: transformation into data digital)
18 clusters
blockchain

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Subscription to the Newsletter of The Economist

https://www.economist.com/newsletters/the-economist-today/?utm_campaign=r.the-economist-this-we
ek&utm_medium=email.internal-newsletter.np
HOW TO SUCCEED IN YOUR PITCH?

You are about to face the dreaded ordeal of the oral

presentation of your project. The few minutes that a jury will
devote to listening to you, made up of personalities who
sometimes do not have the same criteria. You will need to
get everyone on board. A real challenge! In the family of
formidable obligations in the life of an entrepreneur, we
named the pitch. It's an art to master if you plan to get the
highest place, get support, receive money, or even convince
investors!

https://www.dynamique-mag.com/article/comment-reussir-pitch.5414
 Internet :
a journey since
1995
… and a wrong
prediction
http://cbre.vo.llnwd.net/grgservices/secure/CBRE%20Global%20E-commerce%20Outlook%202021.pdf?e=1643
980563&h=c5a526d1b992ed214ce4e510b5a8a84b

https://www.visualcapitalist.com/the-tech-giants-worth-compared-economies-countries/
The market capitalization of
APPLE $3Trn

PGE
THE FUNDAMENTALS
Relative weight of digital usages USA - CHINA
UNDERSTANDING CHINA DIGITAL BANS !

2006 QQ COIN TENCENT

2016 P2P Lending BAN
2017 ICO BAN
2021 Bitcoin BAN
 CoVId crisis and impact on tourism = DROP of 1 billion!!! Impact
compensated by virtualization, gamification & distance

https://fr.statista.com/infographie/21806/tourisme-mondial-nombre-arrivees-internationales-touristes-impact-covid-pandemie
 The beginning of virtual currencies & loyalty program
https://www.economist.com/finance-and-economics/2021/11/20/frequent-flyer-schemes-provide-airlines-with-a-lifeline

American
Airlines
=> valuation
13Bn$

Loyalty Schem
=> valuation
30Bn$

A virtual
currency
contributed to
raising 30Bn$ of
debts and
avoided
bankrupcy
The submarine cables that connect the world

https://fr.statista.com/infographie/25622/principaux-cables-sous-marins-de-telecommunication-internet-longueur-mise-en-service/
The submarine cables, geopolitics challenges
Submarine cables for internet speed 99% of internet data traffic passes through them vs satellite 1%
because more expensive and slower...

https://www.20minutes.fr/societe/3156875-20211028-internet-pourquoi-vulnerabilite-cables-sous-marins-menace-europe

Et vidéo au fil des ans https://www.youtube.com/watch?v=6dkiqJ_IZGw

Nearly 99% of total global internet traffic travels over more than 420 submarine lines, according to our partner The Conversation.
However, the extreme geographical concentration of these cables, particularly at their landing point, makes them particularly vulnerable, listened to by Russian submarines.
GAFAMI VS BATHX

• Alibaba Galaxy & November 11th 2021 festival

• Market capitalization of Appel reached 3Trn$...
• Much more than the GDP of many G7 Countries
The Economist
E-commerce in Chine 2021 at 1,4Trn$ – Newsletter de l’Ambassade de France à Pékin 1/2
• In 2020, e-commerce sales reached 11,800 billion CNY (1,583 billion EUR) in China. China is the world's
largest e-commerce market, far ahead of the United States. In 2019, e-commerce accounted for 20% of retail
sales67. This proportion reached more than 30% in April 2020, at the height of the covid-19 crisis, which
accelerated the transformation of consumption habits. Online sales on social networks could reach 363 billion
USD (314 billion EUR) in 2021 (+35.5% y/y) according to the firm Insider Intelligence68, i.e. 13.1% of total
sales in distribution . According to Accenture69, 71% of Chinese consumers would be willing to make
purchases on social networks, compared to only 42% in the rest of the world. This proportion even reaches
80% for 18-39 year olds.
• This convergence benefits from the trust that consumers place in key opinion leaders (KOL), who host live
streaming sales videos. In a market where consumer trends are changing very rapidly, and faced with
increasingly demanding consumers, brands are turning to these personalities in order to give visibility to their
products, but above all to gain the trust of consumers, who rely on the judgment of their favorite influencers.
Between 2017 and 2020, streaming sales in China rose from 31 billion CNY (4.2 billion EUR) to 600 billion
CNY (estimated - 81 billion EUR)70.
• November 11 "Singles' Day" (double 11) is an annual promotional event initiated by Alibaba in 2008. This day
sees massive sales every year. In 2020, the main platforms recorded sales of EUR 64 billion for TMall (+26%),
the B2C platform of the Alibaba group, and EUR 35 billion (+32%) for JD.com, i.e. historic records. These
figures can also be explained by the fact that this event has spanned several days since 2020 during which
promotional campaigns, live streaming sales and communications on social networks have followed one
another. Thus, 66,000 online sales events, hosted by KOLs, were broadcast in 2020, for nearly 709 million
views71. 67 China Internet Watch, « China online retail sales up 15.4% in the first eleven months of 2021 » (décembre 2021)
68 Andrew Lipsman, « US social commerce is following in China’s footsteps» (février 2021)
69 Accenture, « Chinese consumer trends revisited» (2021)
70 Qianzhan, «2020 年中国直播电商研究报告 »(mai 2020)
71 World Economic Forum, «What can China tell us about the future of social commerce and content? » (mai 2021)
E-commerce in Chine 2021 at 1,4Trn$ – Newsletter de l’Ambassade de France à Pékin 2/2
• The platforms seek to integrate brands and consumers into their ecosystem to enhance the data generated while receiving the highest
possible commission. To retain their targets, they offer advantageous conditions and develop specific tools. Thus, Alibaba receives
only 10% commission on products ordered on Taobao's live streaming platform, compared to 37% on average for products ordered
from Kuaishou or Douyin. Nevertheless, certain agreements have been made between the players in the sector to distribute the
commissions collected.

• Brands must adapt their strategy of interaction with consumers: they can follow two distinct models for this. Some give preference to
private traffic ( 私域流量 )72, making it possible to dispense with the intermediary of large platforms to manage buyer data, and thus
maintain a form of direct engagement. In particular, this makes it possible to reduce costs for brands whose reputation makes it
possible to overcome the recommendation algorithms of platforms, and which have their own internal marketing and customer
relations resources73. Conversely, other sellers prefer public traffic ( 公域流量 ), leaving it to the platforms to promote their offer and
follow up with customers. In this case, the platforms charge a high commission and value consumer data via their own tools.

• Influencers, or key opinion leaders (KOL), play a key role in brand sales strategy. This influence gives them strong bargaining power
vis-à-vis the brands themselves and the platforms74.

• New players, commonly called multichannel networks (MCN), are positioning themselves as intermediaries between KOLs and brands
in order to optimize the marketing strategy and the visibility of the latter on the various sales channels. According to iiMedia, there
were about 28,000 MCNs in China in 2020.

• Consumers themselves play an active role in the marketing strategy of brands and can add value to these actions. 80% of impulse
purchases in China are made on the basis of social recommendations75, often through social networks. Aware of the importance of
these interactions, brands seek to encourage Internet users to be proactive in promoting their products76. At the same time, these
practices encourage consumption (impulse purchases) and force Internet users to engage very actively on the platform. The monetary
gains are therefore indirectly offset by the time spent participating in/relaying promotional operations.
 GAFAMI vs BATHX : Alibaba Galaxy & November 11th 2021
• Ahead of this year's 11.11 Global Shopping Festival, Alibaba Group fully migrated all of its systems and
operations to its public cloud. The use of renewable energy in the Zhangbei County data center, which plays a
major role in supporting Alibaba's e-commerce businesses, has reduced carbon emissions by more than 26,000
tons.
• Highlights of 11.11 Global Shopping Festival 2021
• 78 brands recorded VBM exceeding RMB 100 million this year, compared to VBM of RMB 10 million last year,
while 698 brands exceeded VBM 10 million RMB this year, compared to VBM of RMB 1 million last year .
• More than 45% of consumers who made purchases were born in the 90s and 2000s. The number of consumers
born in the 2000s increased by 25% compared to last year.
• 500,000 products with official Green Product Certification sold by more than 2,000 merchants were showcased
in a vertical space dedicated to the environment on Tmall.
• More than 1,600 brands participated in the new membership challenge campaign on Tmall and attracted more
than 97 million new members during this Global Shopping Festival.
• More than 1.3 million new products were submitted by more than 29,000 overseas brands that participated
through Tmall Global this year, and some 2,800 overseas brands joined us for the first time.
• From November 1-10, 90 emerging brands were among the top brands by VBM in their respective small
categories for the third consecutive year. 275 emerging brands have seen their VBM double year-over-year for
three consecutive years.
• More than one million packages were delivered by approximately 350 Xiaomanlv driverless vehicles from
November 1 to 10, exceeding the volume of packages delivered by these same Xiaomanlv vehicles from
September 2020 to September 2021. https://www.businesswire.com/news/home/20211111006189/fr/
Market capitalization of listed companies : APPLE at 3Trn$

”Apple is an extraordinary company, which follows its path imperturbably.

She has technical, design and marketing agility that is hard to match.
Darker side, also of a single market power, based on the capacities offered
by the new digital techniques to chain the consumer.

The press is dazed with the threshold that the company briefly touched in terms of capitalization: 3 Tr$, that is to say nearly 10% more than
the GDP of the whole of France.

But that's not the right number to remember. The two that stand out the most are those of profitability, $95 billion in the year ending September
2021, and almost the same amount, $87 billion, of money returned to shareholders, including $14 billion in the form of dividends. and $73
billion in share buybacks.

Why is the capitalization figure misleading? Because it can only be judged in relation to other capitalizations, and much less in relation to most
other economic variables. For example, LVMH, another superb company, capitalized the sum of $440 billion on the same day that Apple hit 3
Tr$. So Apple does LVMH 7 times. Five years ago, it was the same ratio, 7 to 1. The PER ratio is 32.5X for Apple, 38X for LVMH. Is it
overrated either way? Many think so, but few risk taking the bet. Some hedge funds burned their fingers and even their arms for massively
"shorting" Tesla stock when capitalization passed $500 billion a year ago. Today it is close to 1.2 Tr$.”

https://www.finance-gestion.com/vox-fi/apple-a-3-trillions-de-dollars-so-what/
 CHINA’s digital dashboard

. https://www.mckinsey.com/~/media/mckinsey/featured%20insights/china/the%20future
%20of%20digital%20innovation%20in%20china%20megatrends%20shaping%20one%20of
%20the%20worlds%20fastest%20evolving%20digital%20ecosystems/future-of-digital-
innovation-in-china.pdf

“Ecommerce is a dominant force in China’s retail market, with 30% of the annual retail
value spent online. Definition of omnichannel : it is having a multichannel approach to
customer fulfilment, making sure that products and services can reach consumers by a
variety of different channels… and SIZE of Datalake CN/USA/EU/FR “
Time to reach the 1Bn mark of Active Users

https://www.economist.com/graphic-detail/2021/10/07/tiktoks-rapid-growth-shows-the-potency-of-video?utm_campaign=the-economist-today&utm_medium=newsletter&utm_source=salesforce-marketing-cloud&utm_term=2021-10-07&utm_content=article-
image-6&etear=nl_today_6
 TikTok génère plus de trafic que tous les services de Google réunis

https://siecledigital.fr/2021/12/23/tiktok-trafic-google

• In 2021, TikTok therefore won the throne of the web from Google. This means that TikTok generates
more traffic than all of the services in the google.com domain: search engine, mapping, translation,
news, photos, office... It's just amazing. This fantastic rise in the rankings earned Facebook a jump
from second to third place. Mark Zuckerberg can therefore no longer boast of owning the first social
network in the world. Even though Facebook still has many more users than TikTok.

https://www.economist.com/books-and-arts/2021/11/06/booktok-has-passion-and-enormous-marketing-power

BookTok is passionate. It is also profitable—at

least for publishers. Bloomsbury, a publishing
house based in Britain, recently reported record
sales and a 220% rise in profits, which Nigel
Newton, its boss, put down partly to the “absolute
phenomenon” of BookTok. On Amazon, BookTok
is so influential that it has leapt into the titles of
books themselves. The novel “It Ends With Us”, for
instance, is now listed as “It Ends With Us: TikTok
made me buy it!”
Un avatar pour quoi faire ?
Let’s get ready with Microsoft Teams & Facebook metaverse

https://www.linkedin.com/posts/lamiamamlouk_web3metaverse-chat-with-mark-zuckerberg-activity-6865284803109945344-2KDN/ TOP video de Zuck

https://www-cnet-com.cdn.ampproject.org/c/s/www.cnet.com/google-amp/news/microsoft-teams-is-getting-avatars-launching-in-vr-and-ar-next-year/ article
Other means of Avatars … NFT & Blockchain
• “OpenSea, a market place where you can sell and buy
certified digital works of art on the blockchain, but also video
game items, digital avatars, tickets for online events... It's
where you can buy the CryptoPunks ($7.6M for the 3100) or
the Bored Ape Yacht Club, those overpriced avatars that
celebrities love.
• The total amount of monthly transactions on OpenSea is
around 3 billion dollars with only 300,000 users. Devin Finzer
and Alex Atallah founded the company in 2017 when NFTs
were still an almost unknown acronym. We can say that they
had a fine nose. Their net worth is estimated at $2.2 billion
each according to Forbes.
• Despite its success, OpenSea is already dragging a few pans.
The platform is also known for its many fraudsters. Unlike
other NFT marketplaces, OpenSea is open to everyone, and
the site struggles to control NFTs created from stolen works.
80% of NFTs offered for sale on the marketplace are either
plagiarism, fake collections or spam, according to a figure put
forward by OpenSea on its Twitter account.
https://www.ladn.eu/tech-a-suivre/qui-sont-les-nouveaux-patrons-star-du-web3-ce-nouveau-web-dope-aux-cryptos/
Environment
 Activity Theory
ANALYZING ACTIVITIES: ACTIVITY THEORY
Activity Theory is a relevant theoretical support for analyzing practices in virtual universes (Vygotsky, Leontiev),
indeed this theory analyzes human practices (work, learning) by defining activity as the central element. An activity is
defined as a relationship between a subject (individual or group) and its environment via an objective, this
relationship leads to expected or unexpected results that modify the environment.

This theory has been strongly mobilized in studies on collective work (Bourguin and Derycke, 2005)
The relationship is mediated by the tools used (technical or mental). The observation of the activity makes it possible
to study how the tools evolve and how, in return, they influence the knowledge and practice of social groups. The
tool that mediates the relationship between the subject and the objective is composed of two parts: the technical
artefact and knowledge which, when fully internalized, is added to the tool to enrich it. This last point can be
illustrated by the practices of research and navigation on the Internet which come to be grafted into the tools (the
tags in particular).

Source : Economie 3D et integration des univers virtuels en entreprise.

L’apport écoligique des TIC, Bernard QUINIO, Gilbert REVEILLON,
Andese ”Vie & Sciences de l’entreprise” 2008/2 N° 179-180 page 76 à 93
Source : Economie 3D et integration des univers virtuels en entreprise.
L’apport écoligique des TIC, Bernard QUINIO, Gilbert REVEILLON,
Andese ”Vie & Sciences de l’entreprise” 2008/2 N° 179-180 page 76 à 93