CS7330 - Electronic Commerce - lecture (1)

CS7330ELECTRONIC COMMERCE

Mr. Dilawar

Lecturer,Computer Science Faculty,

Bakhtar UniversityKabul, Afghanistan.

Course Objectives

After successfully completing this course, you will be able to:

• Understand the three major driving forces behind E-commerce—technology change, business development, and social issues—to provide a coherent conceptual framework for understanding the field.

Course Outline

• PART I: INTRODUCTION TO E-commerce

• The Revolution is Just Beginning

• E-commerce Business Model

• PART II: TECHNOLOGY INFRASTRUCTURE FOR E-commerce

• E-commerce Infrastructure: The Internet, Web, and Mobile Platform

• Building an E-commerce Presence: Web Sites, Mobile Sites, and Apps

• E-commerce Security and Payment Systems

Course Outline

• Part III: BUSINESS CONCEPTS AND SOCAL SCIENCE

• E-commerce Marketing and Advertising Concepts

• Social, Mobile, and Local Marketing

• Ethical, Social, and Political Issues in E-commerce

• Part IV: ECOMMERCE IN ACTION

• Online Retail and Services

• Online Content and Media

• Social Networks, Auctions and Portals

Text Books to Follow

• E-commerce: Business Technology and Society Kenneth C. Laudon, Caral G. Traver 10th Edition

• The Complete E-commerce Book Design, Build, & Maintain a Successful Web Based Business. Reynolds 2nd Edition

The Revolution is Just BeginningChapter 1

Lecture Outline

• Computer and Computer Network

• Introduction to Internet, Web & Their Growth

• What is E-commerce?

• Define E-commerce and Describe How it Differs From E-business

• Why Study E-commerce?

• Unique Features of E-commerce

• Major Types and Dimensions of E-commerce

Computer and Computer Network

• An electronic machine that performs operations million time faster than a human being can.

• Group of computers connected with each other to forms a network.

• Node is a connection point for transmitting data.

• Networks can interconnect with other networks to form global network.


• Benefits of Network

• Facilitates resource sharing

• Provides reliability

• Provide a powerful medium across geographical boundary


• Geographical Distance:

• Local Area Network (LAN) – Small area, share a single server.

• Metropolitan Area Network (MAN) – A wider network that can bridge several LAN’s.

• Wide Area Network (WAN) – A broader area covered means include several MAN’s.

Introduction to Internet, Web & their Growth

• A network of networks that covers the entire globe – Internet.

• Connections across countries and continents made through dedicated fast lines.

• A company may have one local network (LAN) in one city, which is connected to the internet through a regional network.

• Well established in North America, Europe and certain Asian countries.


• A powerful service of internet that provides information – Web.

• Developed in 1990’s.

• Information on the web is stored in a file – webpage.

• Webpages are HTML documents that may include text, graphics, animations, music, and videos.

• People uses web browsers to access webpages from web.

• Web content has grown rapidly.

• 30 trillion unique URLs and Google indexes at least 120 billion Web pages.


• Web 2.0 developed in the late 2004 – Another evolution.

• It is the second generation of the WWW that is focused on the ability for people to collaborate and share information online.

• It is basically a transition from static HTML webpages to more dynamic web.

• Youtube, PhotoBucket, Flicker, Google, iPhone, MySpace, Facebook, LinkedIn, Second Life, Wikipedia.

What is E-commerce?

• Use of internet, web and mobile apps for business transaction –Electronic Commerce.

• More formally:

• Digitally enabled commercial transactions between and among organizations and individuals.

• Digitally enabled transaction – all transaction mediated by digital technology.

• Commercial transactions – involve the exchange of value (e.g., money).

What is E-business?

• Digital enablement of transactions and processes within a firm, involving information systems under firm’s control – Electronic Business.

• Does not include commercial transactions involving an exchange of value across organizational boundaries.

• E.g. a company online inventory control mechanism are a component of E-business, but such internal processes do not generate revenue for the firm from outside businesses or consumers as E-commerce.

E-commerce Versus E-business

Why Study E-commerce?

• E-commerce technology is different, more powerful than previous technologies.

• E-commerce bringing fundamental changes to commerce.

• Marketplace – a physical place where you go for business transaction.

• Market space – marketplace extended beyond traditional boundaries. Removed the temporal and geographic limitations.

• Information Asymmetry – Any difference in relevant market information among parties in a transaction.

Unique Features of E-commerce


• Ubiquity

• Available just everywhere, at all time.

• Traditional commerce relates to the marketplace.

• Reduces transaction cost and cognitive energy.


• Global Reach

• It permits commercial transactions to cross cultural and national boundaries –global audience.

• The traditional commerce involves local outlets.

• Television, radio, newspaper are powerful local network that can attract national audience.


• Universal Standards

• The technological standards for conducting E-commerce.

• These standards are shared by all nations around the world.

• Lowers market entry costs and search costs for consumers.

• Users of the Internet, both businesses and individuals, also experience network externalities.


• Information Richness

• Complexity and content of a message (Evans and Wurster, 1999).

• Traditional markets have great richness.

• Tradeoff/see-saw between richness and reach.

• Unlimited information of a product is available through video, audio, and text messages at internet and social media.


• Interactivity

• The technology that allows for two-way communication between merchant and consumer and among consumers.

• Traditional technologies cannot ask viewers or enter into conversation with them or request for customer information.


• Information Density

• The total amount and quality of information available to all market participants.

• Reduces information collection, storage, processing and communication costs.

• Greater increases the value, accuracy, and timeliness of information.

• Business consequences from the growth in information density

• Price transparency and Cost transparency.

• Gathering information of consumers – market segmentation to engage in price discrimination.


• Personalization & Customization

• The targeting of marketing messages to specific individuals by adjusting the message to a person’s name, interests, and past purchases – Personalization.

• Changing the delivered products or services based on a user’s preferences or prior behavior – Customization.


• Social Technology

• User content generation and social networking.

• The E-commerce technologies has evolved users to create and generate contents in the form of web, Facebook pages, text, video, music, and photos with world wide communities.

Types of E-commerce

Types of E-commerce

• Business – to – Consumer (B2C)

• Online businesses selling to individual consumers such as amazon.

• $419 billion in 2013 in the US.

• Portals, online retailers, content providers, transaction brokers, market creators, service providers, and community providers.

Types of E-commerce

• Business – to – Business (B2B)

• Online businesses selling to other businesses.

• $4.7 trillion in 2013 in the US.

• Net marketplaces, which include e-distributors, e-procurement companies, exchanges and industry consortia, and private industrial networks.

Types of E-commerce

• Consumer – to – Consumer (C2C)

• Consumers selling to consumers such as eBay.

• $75 billion in 2013 for eBay.

• Consumer place product for auction or sale.

• Relies on market maker.

Types of E-commerce

• Social E-commerce• E-commerce enabled by social networks and online social relationships.


• M-Commerce• Use of mobile devices to enable online transactions.


• Local E-commerce• E-commerce that is focused on engaging the consumer based on his or her current

geographic location.

• $4.4 billion in 2013 in the US.

Types of E-commerce

Dimensions of Electronic Commerce

• Traditional commerce

• Buy books at university bookstore.

• Partial E-commerce

• Order physical book from Amazon.com

• Pure E-commerce

• Order and download book from Amazon.com

Summery

• Computer and Computer Network

• Introduction to Internet, Web & Their Growth

• What is E-commerce?

• Define E-commerce and Describe How it Differs From E-business

• Why Study E-commerce?

• Unique Features of E-commerce

• Major Types and Dimensions of E-commerce

Thank YouFor your Patience

CS7330 - Electronic Commerce - lecture (1)

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