Exam 1 ReviewRecap of…

1. E-commerce history and concepts

2. Internet & WWW technology

3. Terminology and acronyms

Why Study E-commerce? Why exactly is E-commerce more important

to business than other technologies? Hint: The features of e-commerce are very

unique compared to other technologies

Structure of WWW What possible relevance could the structure of

the WWW have on areas like? Business Strategy Marketing etc.

Structure of WWWRemember the article we read: The WWW is not completely connected

it’s not a web. There is a connected core of web pages

out cluster of web pages (linked from the core, but dead-ends)

in cluster (linked to the core, but unreachable from the core)

Where should you place ads?

Structure of the WWW What does strongly connected mean?

Consider the how rapidly the WWW is growing millions of new pages every week

Why will there always be an in-cluster? Think about the websites we just created

Operationally Attuned Knowing how something works (or how

something is put together) helps you use it more effectively.

Aside from the obvious, what are some other ways that knowing how the WWW works can help you use if more effectively for business?

7 Feature of E-commerce1. Ubiquity

2. Global Reach

3. Universal Standards

4. Richness

5. Interactivity

6. Information Density

7. Personalization/Customization

7 Feature of E-commerceFeature E-commerce

TechnologyTelephone Technology

TelevisionTechnology

Ubiquity Yes Yes, cell phones, onstar

Maybe someday

Global Reach Yes, but No 3rd World

Yes Yes

Universal Standards Yes Yes Pretty much

Richness Yes No video, no images

Yes

Interactivity Yes Yes No

Information Density Yes No, only fax Yes, only audio video

Customization/Personal. Yes Not really Not really

7 Features of E-commerceStandardization Low Entry Cost More completion.

Standardization Information integration More price discovery opportunities.

More competition + price discovery opportunity = lower consumer prices

7 Features of E-commerce How does increased information density

reduce costs for a business?

How does increased information density increase the quality of information?

Running an E-commerce BusinessSix things you need: Human Resources Organizational Capabilities Hardware Software Telecommunications Site Design

E-commerce Business Which of the six things probably costs the

most? #1 #2

Which of the six things may not be available throughout the world?

Types of E-commerce B2B vs. B2C What is the difference between C2C and P2P

(Peer to Peer)? Hint: It has to do with the middleman?

Growth of the InternetHow many web servers (hosts) are currently

connected to the Internet. More than 1 billion More than 100 million More than 10 million More then 1 million

Growth of the WWWHow many web pages? More than 500 billion More than 50 billion More 5 billion More than 500 million More than 50 million More than 5 million

Global Reach? (not really) What are some factors that limit customer

participation in E-commerce?

E-commerce (Era I vs. Era II) Era I: Pre-1999 Era II: Post-2000 What are some of the differences?

Key Concepts Network effect – First Mover – Friction-Free Commerce –

Key Concepts Friction-Free Commerce –

info is equally distributed transaction costs are low prices adjust automatically based on demand middle-men are eliminated unfair competitive advantages are eliminated

E-commerce II Disintermediation – get rid of the middle

man, create a new direct relationship between manufacturers and customers Disintermediation is good, right? How can it be bad? Consider this: A manufacturing business that has

no expertise in sales, marketing, and micro distribution.

Key Concepts After 2000, business realized that friction-free

commerce was a dream (not full possible) Many of the successful E-commerce

companies are now simply middle-men: Amazon Travelocity E-bay etc.

Acronyms HTTP HTTPS DNS FTP WWW TCP/IP URL IP Address

WWW vs. Internet IP Address goes with? URL goes with? HTTP goes with? DNS goes with?

BTW, what is the entire purpose of DNS? It’s a very complicated system just to achieve a

very simply, common-sense way to find things.

Web Servers What 3 things do you need to serve up web pages?

Actually, you need a 4th thing, but its obviously part of the question.

Internet HistoryWhen did it all start? Innovation Phase 1960’s 1970’s 1980’s 1990’s

Internet HistoryWhen was it institutionalized and brought into

the mainstream… 1967-1980 1980-1993 1993-2007

Internet HistoryWhen was is commercialized? 1967-1980 1980-1993 1993-2007

Domain Names From a marketing or business point of view,

what are important criteria in selecting the Domain name for a business website?

Hosting Service Aside from low cost and features what are

three other criteria that are important when selecting a hosting service?

Internet What are three technological characteristics that

truly define the Internet?

BTW, what is packet switching anyway? Describe it in your own words?

How is TCP/IP related to the 7 features of E-commerce?