LECTURE 1:
INTRODUCTION TO E-COMMERCE
WHAT IS E-COMMERCE? Eight Unique Features of E-commerce Technology
Electronic Commerce is a term for any type of business, or
commercial transaction that involves the transfer of
information across the internet.
E-commerce is the purchasing, selling and exchanging
goods and services over computer networks (internet)
through which transaction or terms of sale are performed
electronically.
It consist of buying and selling goods and services over an
electronic systems Such as the internet and other computer
networks. Ubiquity—Internet/Web technology is available
everywhere: at work, at home, and elsewhere via
Commercial Transactions mobile devices, anytime.
Involves the exchange of value (e.g., money) across
Global reach—The technology reaches across
organizational or individual boundaries in return for products
national boundaries, around the earth.
and services. Exchange of value is important for
understanding the limits of e-commerce. Without an Universal standards—There is one set of technology
exchange of value, no commerce occurs. standards, namely Internet standards.
WHAT IS E-BUSINESS? Richness—Video, audio, and text messages are
Electronic business, or e-business, refers to the use of possible.
digital technology and the Internet to execute the major
business processes in the enterprise. Interactivity—The technology works through
It includes activities for the internal management of the firm interaction with the user.
and for coordination with suppliers and other business Information density—The technology reduces
partners.
information costs and raises quality.
Digital enabling of transactions and processes within a firm,
involving information systems under firm’s control Personalization/Customization—The technology
Does not include commercial transactions involving an allows personalized messages to be delivered to
exchange of value across organizational boundaries individuals as well as groups.
Social technology—User content generation and
social networks.
Lecture 1: Introduction to E-Commerce | Prepared by: Jovelyn D. Ocampo
TYPES OF E-COMMERCE ORIGINS AND GROWTH OF E-COMMERCE
May be classified by market relationship or technology
Precursors:
Business-to-Business (B2B) Baxter Healthcare
- businesses focus on selling to other businesses, is the - a pharmaceutical firm in the late 1970s that
initiated a primitive form of B2B e-commerce by
largest form of e-commerce
using a telephone-based modem that permitted
hospitals to reorder supplies from Baxter
Electronic Data Interchange (EDI)
- Its standards permitted firms to exchange
commercial documents and conduct digital
commercial transactions across private
networks.
Minitel (1980s videotex system)
- a French videotext system that combined a
Business-to-Consumer (B2C) telephone with an 8-inch screen
- online businesses attempt to reach individual consumers.
B2C commerce includes purchases of retail goods, travel None had functionality of Internet
services, and online content.
1995: Beginning of e-commerce
First sales of banner advertisements
1995–2000: Invention
Key concepts developed
Limited bandwidth and media
Friction-free commerce
- Lowered search costs,
disintermediation, price transparency,
Consumer-to-Consumer (C2C) elimination of unfair competitive
- provides a way for consumers to sell to each other, with advantage
the help of an online market maker such as eBay or OLX. First-mover advantages
2001–2006: Consolidation
Emphasis on business-driven approach
Traditional large firms expand presence
Start-up financing shrinks up
More complex products and services sold
Growth of search engine advertising
Business Web presences expand to include
Social e-commerce e-mail, display and search advertising, and
- an e-commerce that is enabled by social networks and limited community feedback features
online social relationships. It is sometimes also referred
to as Facebook commerce, but in actuality is a much 2007–Present: Reinvention
larger phenomenon that extends beyond just Facebook. Rapid growth of:
- Online social networks
- Mobile platform
Mobile e-commerce (M-commerce) - Local commerce
- It refers to the use of mobile devices to enable online Entertainment content develops as source of
transactions. revenues
Transformation of marketing
Local e-commerce - Coordinated marketing on social, mobile,
- It is a form of e-commerce that is focused on engaging local platforms
the consumer based on his or her current geographic - Analytic technologies
location.
Lecture 1: Introduction to E-Commerce | Prepared by: Jovelyn D. Ocampo
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
ACADEMIC DISCIPLINES CONCERNED WITH E-COMMERCE
Technical approach
Computer science
Management science
Information systems
Behavioral approach
Economics
Marketing
Management
Finance/accounting
Sociology
Lecture 1: Introduction to E-Commerce | Prepared by: Jovelyn D. Ocampo
