Chapter 1: The Revolution Is Just Beginning
1.1 - The First Thirty Seconds: why you should study e-commerce
The First Thirty Seconds
● First two decades of e-commerce
○ Just the beginning
○ Rapid growth and change
● Technologies evolve at exponential rates
○ Disruptive business change
○ New opportunities
● Why study e-commerce
○ Understand opportunities and risks
○ Analyze e-commerce ideas, models, issues
1.2 - Introduction to E-commerce
Introduction to E-commerce
● Use of Internet to transact business
○ Includes Web, mobile browsers and apps
● More formally:
○ Digitally enabled commercial transactions between and among organizations and individual
The Difference Between E-commerce and E-business
● E-business
○ Digital enabling of transactions and processes within a firm, involving information systems
under firm’s control
○ Does not include commercial transactions involving an exchange of value across
organizational boundaries
● E-Commerce
○ Internal processes that directly generate revenue for the firm from outside businesses or
consumers
Technological Building Blocks Underlying E-commerce
● Internet:
○ Worldwide network of computer networks built on common standards
● World Wide Web:
○ An information system running on Internet infrastructure that provides access to billions of
web pages (HTML)
○ Deep Web vs. Surface Web
● Mobile platform
○ Provides the ability to access the Internet from a variety of mobile devices such as
smartphones, tablets, and other ultra lightweight laptop computers
Major Trends in E-commerce
● Business trends include:
○ Covid-19 pandemic fuels surge in retail e-commerce, m-commerce, and certain on-demand
services
● Technology trends include:
○ Mobile platform and cloud computing
○ Big data and Internet of Things
● Societal trends include:
, ○ Increased concern about impact of social networks
○ Concerns about increasing market dominance of big technology firms
1.3 - Unique features of e-commerce technology
Unique Features of E-commerce Technology
● Ubiquity
○ E-commerce technology is available everywhere: at work, at home, and elsewhere via mobile
devices, anytime
● Global reach
○ The technology reaches across national boundaries, around the earth
● Universal standards
○ Standards that are shared by all nations around the world, which lower market entry and
search costs
● Information richness
○ Video, audio, and text messages are possible
● Interactivity
○ Technology that allows for two-way communication between merchant and consumer
● Information density
○ Higher total amount and quality of information available to all market participants
● Personalization / customization
○ Adjusting the message to a person’s name, interests, and past purchases and changing the
delivered product or service based on a user’s preferences or prior behavior
● Social technology
○ User-generated content and social networks
1.4 - Types of E-commerce
Types of E-commerce
● Business-to-Consumer (B2C)
○ Online businesses selling to individual consumers
● Business-to-Business (B2B)
○ Online businesses selling to other businesses
● Consumer-to-Consumer (C2C)
○ Consumers selling to other consumers
● Mobile e-commerce (M-commerce)
○ Use of mobile devices to enable online transactions
● Social e-commerce
○ E-commerce enabled by social networks and online social relationships
● Local e-commerce
○ E-commerce that is focused on engaging the consumer based on his or her current geographic
location
1.5 - E-commerce: A Brief History
E-commerce: A Brief History
● Precursors
○ Baxter Healthcare modem-based system (1970s)
○ Order entry systems (1980s)
○ Electronic Data Interchange (EDI) standards (1980s)
○ French Minitel (1981)
● 1995–2000: Invention
, ○ Sale of simple retail goods
○ Limited bandwidth and media
○ Euphoric visions of
■ Friction-free commerce
■ First-mover advantages
○ Dot-com crash of 2000
● 2001–2006: Consolidation
○ Emphasis on business-driven approach
○ Traditional large firms expand presence
○ Start-up financing shrinks
○ More complex products and services sold
○ Growth of search engine advertising
○ Business web presences expand
● 2007–Present: Reinvention
○ Rapid growth of:
■ Web 2.0, including online social networks
■ Mobile platform
■ Local commerce
■ On-demand service economy
○ Entertainment content develops as source of revenues
○ Transformation of marketing
Assessing E-commerce
● Stunning technological success
● Early years a mixed business success
○ Few early dot-coms have survived
○ Online sales growing rapidly
● Many early visions not fulfilled
○ Price dispersion
○ Information asymmetry
○ New intermediaries
● Other surprises
○ Fast-follower advantages
○ Start-up costs
○ Impact of mobile platform
○ Emergence of on-demand e-commerce
1.6 - Understanding E-commerce: Organizing Themes
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
The Internet and the Evolution of Corporate Computing
Chapter 2: E-commerce Infrastructure: The Internet, Web, and Mobile Platform
2.1 - The Internet: Technology Background
The Internet: Technology Background
● Internet
○ Interconnected network of thousands of networks and millions of computers
○ Links businesses, educational institutions, government agencies, and individuals
● World Wide Web (Web)
○ One of the Internet’s most popular services
○ Provides access to billions, possibly trillions, of web pages
The Evolution of the Internet (1961–Present)
● Innovation Phase, 1961–1974
○ Creation of fundamental building blocks
○ Basic ideas and technologies were developed
● Institutionalization Phase, 1975–1995
○ Large institutions provide funding and legitimization
○ These ideas were brought to life
● Commercialization Phase, 1995–present
○ Private corporations take over, expand Internet backbone and local service
○ Once the ideas and technologies had been proven, private companies brought the Internet to
millions of people worldwide.
1.1 - The First Thirty Seconds: why you should study e-commerce
The First Thirty Seconds
● First two decades of e-commerce
○ Just the beginning
○ Rapid growth and change
● Technologies evolve at exponential rates
○ Disruptive business change
○ New opportunities
● Why study e-commerce
○ Understand opportunities and risks
○ Analyze e-commerce ideas, models, issues
1.2 - Introduction to E-commerce
Introduction to E-commerce
● Use of Internet to transact business
○ Includes Web, mobile browsers and apps
● More formally:
○ Digitally enabled commercial transactions between and among organizations and individual
The Difference Between E-commerce and E-business
● E-business
○ Digital enabling of transactions and processes within a firm, involving information systems
under firm’s control
○ Does not include commercial transactions involving an exchange of value across
organizational boundaries
● E-Commerce
○ Internal processes that directly generate revenue for the firm from outside businesses or
consumers
Technological Building Blocks Underlying E-commerce
● Internet:
○ Worldwide network of computer networks built on common standards
● World Wide Web:
○ An information system running on Internet infrastructure that provides access to billions of
web pages (HTML)
○ Deep Web vs. Surface Web
● Mobile platform
○ Provides the ability to access the Internet from a variety of mobile devices such as
smartphones, tablets, and other ultra lightweight laptop computers
Major Trends in E-commerce
● Business trends include:
○ Covid-19 pandemic fuels surge in retail e-commerce, m-commerce, and certain on-demand
services
● Technology trends include:
○ Mobile platform and cloud computing
○ Big data and Internet of Things
● Societal trends include:
, ○ Increased concern about impact of social networks
○ Concerns about increasing market dominance of big technology firms
1.3 - Unique features of e-commerce technology
Unique Features of E-commerce Technology
● Ubiquity
○ E-commerce technology is available everywhere: at work, at home, and elsewhere via mobile
devices, anytime
● Global reach
○ The technology reaches across national boundaries, around the earth
● Universal standards
○ Standards that are shared by all nations around the world, which lower market entry and
search costs
● Information richness
○ Video, audio, and text messages are possible
● Interactivity
○ Technology that allows for two-way communication between merchant and consumer
● Information density
○ Higher total amount and quality of information available to all market participants
● Personalization / customization
○ Adjusting the message to a person’s name, interests, and past purchases and changing the
delivered product or service based on a user’s preferences or prior behavior
● Social technology
○ User-generated content and social networks
1.4 - Types of E-commerce
Types of E-commerce
● Business-to-Consumer (B2C)
○ Online businesses selling to individual consumers
● Business-to-Business (B2B)
○ Online businesses selling to other businesses
● Consumer-to-Consumer (C2C)
○ Consumers selling to other consumers
● Mobile e-commerce (M-commerce)
○ Use of mobile devices to enable online transactions
● Social e-commerce
○ E-commerce enabled by social networks and online social relationships
● Local e-commerce
○ E-commerce that is focused on engaging the consumer based on his or her current geographic
location
1.5 - E-commerce: A Brief History
E-commerce: A Brief History
● Precursors
○ Baxter Healthcare modem-based system (1970s)
○ Order entry systems (1980s)
○ Electronic Data Interchange (EDI) standards (1980s)
○ French Minitel (1981)
● 1995–2000: Invention
, ○ Sale of simple retail goods
○ Limited bandwidth and media
○ Euphoric visions of
■ Friction-free commerce
■ First-mover advantages
○ Dot-com crash of 2000
● 2001–2006: Consolidation
○ Emphasis on business-driven approach
○ Traditional large firms expand presence
○ Start-up financing shrinks
○ More complex products and services sold
○ Growth of search engine advertising
○ Business web presences expand
● 2007–Present: Reinvention
○ Rapid growth of:
■ Web 2.0, including online social networks
■ Mobile platform
■ Local commerce
■ On-demand service economy
○ Entertainment content develops as source of revenues
○ Transformation of marketing
Assessing E-commerce
● Stunning technological success
● Early years a mixed business success
○ Few early dot-coms have survived
○ Online sales growing rapidly
● Many early visions not fulfilled
○ Price dispersion
○ Information asymmetry
○ New intermediaries
● Other surprises
○ Fast-follower advantages
○ Start-up costs
○ Impact of mobile platform
○ Emergence of on-demand e-commerce
1.6 - Understanding E-commerce: Organizing Themes
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
The Internet and the Evolution of Corporate Computing
Chapter 2: E-commerce Infrastructure: The Internet, Web, and Mobile Platform
2.1 - The Internet: Technology Background
The Internet: Technology Background
● Internet
○ Interconnected network of thousands of networks and millions of computers
○ Links businesses, educational institutions, government agencies, and individuals
● World Wide Web (Web)
○ One of the Internet’s most popular services
○ Provides access to billions, possibly trillions, of web pages
The Evolution of the Internet (1961–Present)
● Innovation Phase, 1961–1974
○ Creation of fundamental building blocks
○ Basic ideas and technologies were developed
● Institutionalization Phase, 1975–1995
○ Large institutions provide funding and legitimization
○ These ideas were brought to life
● Commercialization Phase, 1995–present
○ Private corporations take over, expand Internet backbone and local service
○ Once the ideas and technologies had been proven, private companies brought the Internet to
millions of people worldwide.
