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Copyright 2010 Pearson Education, Inc.E-commerce Kenneth C.
LaudonCarol Guercio Traver
business. technology. society.Sixth Edition
Copyright 2010 Pearson Education, Inc.
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Copyright 2010 Pearson Education, Inc.Copyright 2007 Pearson
Education, Inc.Slide 1-*Chapter 1The Revolution Is Just
Beginning
Copyright 2010 Pearson Education, Inc.
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Copyright 2010 Pearson Education, Inc.Facebook and MySpace: Its
All About YouClass DiscussionHow is Facebook different from
MySpace? Have you used Facebook or MySpace, and if so, how often?
What was your experience?Why do you think Facebook has overtaken
MySpace as the most popular social networking site?Slide 1-*
Copyright 2010 Pearson Education, Inc.
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Copyright 2010 Pearson Education, Inc.E-commerce Trends
20092010New business models based on social technologies,
consumer-generated content, and services 2009 a flat year, but
growth expected to resume in 2010Broadband and wireless access
continue to growMobile e-commerce begins to take offTraditional
media losing subscribers
Slide 1-*
Copyright 2010 Pearson Education, Inc.
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Copyright 2010 Pearson Education, Inc.What is E-commerce? Use of
Internet and Web to transact businessMore formally:Digitally
enabled commercial transactions between and among organizations and
individualsSlide 1-*
Copyright 2010 Pearson Education, Inc.
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Copyright 2010 Pearson Education, Inc.E-commerce vs.
E-businessE-business:Digital enablement of transactions and
processes within a firm, involving information systems under firms
controlDoes not include commercial transactions involving an
exchange of value across organizational boundariesSlide 1-*
Copyright 2010 Pearson Education, Inc.
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Copyright 2010 Pearson Education, Inc.Why Study
E-commerce?E-commerce technology is different, more powerful than
previous technologiesE-commerce bringing fundamental changes to
commerceTraditional commerce:Passive consumerSales-force
drivenFixed pricesInformation asymmetry
Slide 1-*
Copyright 2010 Pearson Education, Inc.
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Copyright 2010 Pearson Education, Inc.Why Study
E-commerce?Traditional commerce:Time consumingWastage of
resourcesLess informativeLess comparative Sales-force
drivenInformation asymmetry (irregularity)Prone to human error in
terms of money change
Slide 1-*
Copyright 2010 Pearson Education, Inc.
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Copyright 2010 Pearson Education, Inc.Unique Features of
E-commerce TechnologyUbiquity (It is available just about
everywhere and at all times)Global reach (The potential market size
is roughly equal to the size of the online population of the
world.) Universal standards (The technical standards of the
Internet and therefore of conducting e-commerce, are shared by all
of the nations in the world)Information richness (Information that
is complex and content-rich can be delivered without sacrificing
reach.)Interactivity (E-commerce technologies allow two-way
communication between the merchant and the consumer). Information
density (The total amount and quality of information available to
all market participants is vastly increased and is cheaper to
deliver. Personalization/customizationSocial technologySlide
1-*
Copyright 2010 Pearson Education, Inc.
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Copyright 2010 Pearson Education, Inc.Web 2.0Applications,
technologies that allow users to: Create and share content,
preferences, bookmarks, and online personasParticipate in virtual
livesBuild online communitiesExamplesYouTube, Photobucket, Flickr,
Google, iPhoneMySpace, Facebook, LinkedInSecond LifeWikipedia
Slide 1-*
Copyright 2010 Pearson Education, Inc.
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Copyright 2010 Pearson Education, Inc.Types of
E-commerceClassified by market relationshipBusiness-to-Consumer
(B2C)Business-to-Business (B2B)Consumer-to-Consumer (C2C)Classified
by technology usedPeer-to-Peer (P2P)Mobile commerce
(M-commerce)
Slide 1-*
Copyright 2010 Pearson Education, Inc.
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Copyright 2010 Pearson Education, Inc.The InternetWorldwide
network of computer networks built on common standardsCreated in
late 1960sServices include the Web, e-mail, file transfers, etc.Can
measure growth by looking at number of Internet hosts with domain
names Slide 1-*
Copyright 2010 Pearson Education, Inc.
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Copyright 2010 Pearson Education, Inc.The Growth of the
Internet, Measured by Number of Internet Hosts with Domain
Names
Figure 1.3, Page 23
Slide 1-*SOURCE: Internet Systems Consortium, Inc., 2009.
Copyright 2010 Pearson Education, Inc.
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Copyright 2010 Pearson Education, Inc.The WebMost popular
Internet serviceDeveloped in early 1990sProvides access to Web
pages HTML documents that may include text, graphics, animations,
music, videosWeb content has grown exponentially2 billion Web pages
in 2000 At least 4050 billion pages todaySlide 1-*
Copyright 2010 Pearson Education, Inc.
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Copyright 2010 Pearson Education, Inc.The Growth of B2C
E-commerceFigure 1.4, Page 25
Slide 1-*SOURCES: eMarketer, Inc., 2009a; U.S. Census Bureau,
2009b; authors estimates.
Copyright 2010 Pearson Education, Inc.
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Copyright 2010 Pearson Education, Inc.The Growth of B2B
E-commerceFigure 1.5, Page 28
Slide 1-*SOURCES: U.S. Census Bureau, 2009a; authors
estimates.
Copyright 2010 Pearson Education, Inc.
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Copyright 2010 Pearson Education, Inc.Early Visions of
E-commerceComputer scientists: Inexpensive, universal
communications and computing environment accessible by
allEconomists: Nearly perfect competitive market and friction-free
commerceLowered search costs, disintermediation, price
transparency, elimination of unfair competitive
advantageEntrepreneurs: Extraordinary opportunity to earn far above
normal returns on investmentfirst mover advantage
Slide 1-*
Copyright 2010 Pearson Education, Inc.
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Copyright 2010 Pearson Education, Inc.Predictions for the
FutureTechnology will propagate through all commercial
activityPrices will rise to cover the real cost of doing
businessE-commerce margins and profits will rise to levels more
typical of all retailersCast of players will changeTraditional
Fortune 500 companies will play dominant roleNew startup ventures
will emerge with new products, servicesNumber of successful pure
online stores will remain smaller than integrated offline/online
storesGrowth of regulatory activity worldwideInfluence of cost of
energySlide 1-*
Copyright 2010 Pearson Education, Inc.
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Copyright 2010 Pearson Education, Inc.Understanding E-commerce:
Organizing ThemesTechnology: Development and mastery of digital
computing and communications technology Business: New technologies
present businesses with new ways of organizing production and
transacting businessSociety: Intellectual property, individual
privacy, public welfare policy
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Copyright 2010 Pearson Education, Inc.
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Copyright 2010 Pearson Education, Inc.The Internet and the
Evolution of Corporate Computing
Figure 1.9, Page 44
Slide 1-*
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Copyright 2010 Pearson Education, Inc.Academic Disciplines
Concerned with E-commerceTechnical approachComputer
scienceManagement scienceInformation systems
Behavioral approachInformation
systemsEconomicsMarketingManagementFinance/accountingSociology
Slide 1-*
Copyright 2010 Pearson Education, Inc.
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Copyright 2010 Pearson Education, Inc.Slide 1-*All rights
reserved. No part of this publication may be reproduced, stored in
a retrieval system, or transmitted, in any form or by any means,
electronic, mechanical, photocopying, recording, or otherwise,
without the prior written permission of the publisher. Printed in
the United States of America.Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Copyright 2010 Pearson Education, Inc.
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