© 2005 Prentice Hall 17-1 Chapter 17 The Digital Revolution and Global Electronic Marketplace...

© 2005 Prentice Hall 17-1

Chapter 17 The Digital Revolution and

Global Electronic Marketplace

PowerPointBy

Kristopher BlanchardNorth Central University


The Digital Revolution: A Brief History

1937 to 1942 world’s first electronic digital computer was developed at Iowa State University

1947 the transistor was invented

1950’s saw the invention of the silicon chip

1970’s was the decade for companies like Atari, Commodore and Apple



1981 IBM introduced is first Personal Computer (PC)

1984 Apple introduced the Macintosh

1982 the 286 microprocessor was unveiled

1993 was the creation of the Pentium



1969 is where the Internet can trace its origins (Defense Advanced Research Projects Agency)1972 E-mail was sent for the first time1973 saw the creation of a cross-network protocol; the true birth of a network of networks or the Internet1993 Tim Berners-Lee invented URL, HTML and Http. Also the first commercial browser was createdIn 1993 there were 600,000 web users; in 2003 there are an estimated 580 million PCs accessing the Internet


Convergence

A term that refers to the coming together of previously separate industries and product categories


Value Networks and Disruptive Technologies

Innovator’s Dilemma

Value Network

Sustaining Technologies

Disruptive Technologies


Global E-Commerce

In 2003, global e-commerce revenues stood at $1.6 trillion and growing According to a report released by the University of California-Berkeley, in 2002, five exabytes of information—an amount equal to every word spoken by humans—were generated worldwide. China has more than 68 million Internet users; in Shanghai, Beijing and Guangzhou, one-third of all residents use the Internet. Japan has about 60 million Internet users, and Japan accounted for $1.6 billion in online revenue in 2004.


Global E-Commerce

Can be divided into 3 broad categories– Business to Business (B2B)– Business to Consumer (B2C)– Consumer to Consumer (Peer-to-Peer)


Web Sites

Classified by Purpose– Promotion sites to promote goods or services– Content sites that provide new and

entertainment– Transaction sites allow consumers to purchase

goods and services


Web Sites

Companies must be willing to integrate interactive media into the marketing mix

Can be developed in house or by an outside firm


Web Sites

“Shopping on the Internet is no different than traditional sales channels. It’s all about trusting the brand and having a strong

relationship with one’s customers.”

—Ron Fry, Internet Business Manager, Lands’ End


Web Sites

Things to consider when creating a global Web Site– Localize the Web site in the native language

and business nomenclature of the target market– Should reflect local culture, customs, and

aesthetic preferences– Privacy


Web Sites

What makes a ‘good’ Web site?– Technology and functionality. This category includes

layout, ease of navigation, and print-out opportunities. Does the site offer interactive functions such as order forms and e-mail subscriptions?

– Content. This category includes e-mail address information for key people or corporate functions; corporate information such as mission, vision, and company history; and financial information such as quarterly reports in PDF or HTML format.


Broadband

Has sufficient capacity to carry multiple voice, data, or video channels simultaneously

Bandwidth determines the range of frequencies that can pass over a transmission channel


Broadband

Creates opportunities for streaming audio, video, and media

On-line gaming

Online education

Medical diagnosis and treatment

E-Commerce


Mobile Commerce and Wireless Connectivity

Mobile commerce or M-commerce is the term for conducting commercial transactions using wireless handheld devices such as PDA’s

Wi-fi – (Wireless Fidelity) permits laptop and PDA users to establish high-speed wireless Internet connections

Bluetooth – uses less power than wi-fi, works well with cell phones and covers shorter distances than wi-fi


Smart Cell Phones

400 million cellular handsets are sold annually

Smart phones give users some of the capabilities of computers – currently 5% of the market

Cell phone users bought 5 million ring tones in 2003


Technology Forecast

By 2008, the global market for cell phone games could reach $7 million.

- Strategy Analytics


Internet Phone Service

The next big thing for the telecommunications industry

Has the potential to render the current telecommunications infrastructure obsolete

Currently only accounts for 3% of total global calling


Global Marketing

End of Chapter 17


Innovator’s Dilemma

Innovator’s Dilemma – Staying committed to a current, profitable

technology – Failing to provide adequate levels of

investment to new and riskier technologies – Company is responding to the needs of

established customers

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Value Network

Found in every industry

Cost structure that dictates the margins needed to achieve profitability

Boundaries are defined by the unique rank ordering of the importance of various product attributes

Each network has its own metrics of value

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Sustaining Technologies

Incremental or radical innovations that improve product performance

Most new technologies developed by established companies are sustaining in nature

The vast majority of innovations are sustaining in nature

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Disruptive Technologies

Redefine performance

New entrants to an industry

Enable something to be done that was previously deemed impossible

Enable new markets to emerge

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© 2005 Prentice Hall 17-1 Chapter 17 The Digital Revolution and Global Electronic Marketplace...

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