SAMENVATTING INTRODUCTION
Lecture 1:
“E-commerce refers to the buying and selling of goods and services, or the
transmitting of funds or data, over an electronic network, primarily the
internet.” (Kalakota & Whinston, 1997)
In this sentence:
buying and selling of goods and services includes transactions between
businesses (B2B), businesses and consumers (B2C), consumers and other
consumers (C2C), and even consumers and businesses (C2B).
transmitting of funds secure transmission of money over electronic
networks, primarily the internet; integral to completing transactions
(allows customers to pay)
data Order details: Sending order confirmations and updates from seller
to buyer.
• Customer information: Transmitting personal and financial information
securely during transactions.
• Inventory updates: Automatically updating stock levels between the e-
commerce platform and the
inventory management system.
• Analytics data: Sending user behavior and transaction data to analytics
tools for business insights.
Bumble:
Main purpose: facilitate social connections— primarily romantic, but also
friendships and professional networking through its different modes (Date,
BFF, and Bizz).
Monetization vs. Commerce: generates revenue through in-app
purchases and subscription services (like Bumble Boost or Bumble
Premium), but not same as the traditional e-commerce model where
physical or digital goods/services are bought and sold.
Data transmission: User profiles, messages, and interactions. However,
focused on enabling social interactions rather than commercial
transactions.
B2B (Business-to-Business):Transactions between businesses.
• B2C (Business-to-Consumer):Transactions between businesses and end
consumers.
• C2C (Consumer-to-Consumer):Transactions between consumers, typically
facilitated
by third-party platforms (e.g., eBay).
• C2B (Consumer-to-Business):Transactions where consumers sell products
or
services to businesses (e.g., influencer marketing).
• G2C (Government-to-Consumer):Transactions between governments and
citizens
(e.g., tax filing, licenses).
,BRIEF HISTORY OF E-COMMERCE:
1. Early Beginnings: Electronic Data Interchange (EDI) (1960s-1970s):
• Definition: EDI refers to the electronic transfer of standardized business
documents, such as purchase orders and invoices, between companies.
• Importance: It laid the groundwork for e-commerce by allowing
businesses to exchange data digitally, reducing the need for paper-based
transactions and manual data entry.
• Development: The first standards for EDI were developed in the 1960s,
but widespread adoption began in the 1970s, particularly in industries like
retail and manufacturing.
2. The Advent of the Internet and the Birth of E-Commerce (1980s-1990s):
• 1982: The introduction of the Transmission Control Protocol/Internet
Protocol (TCP/IP) standardized communication between computers and
allowed the Internet to expand.
• 1984: CompuServe, one of the first major commercial online service
providers, introduces the Electronic Mall, which allowed customers to
purchase products directly from over 110 different merchants.
• 1991: The World Wide Web is made publicly available, which opens up
new possibilities for online business and commerce.
• 1994: Netscape introduces SSL (Secure Sockets Layer) encryption, which
makes secure online transactions possible, paving the way for the first
online purchases.
• 1995: Amazon: Jeff Bezos launches Amazon.com, initially as an online
bookstore, which later evolves into the largest e-commerce platform. eBay:
Pierre Omidyar launches AuctionWeb (later renamed eBay), introducing
the concept of consumer- to-consumer (C2C) transactions.
• 1998: PayPal is founded, providing a secure and easy-to-use online
payment system that further fuels the growth of e-commerce.
3. The Dot-Com Boom and Bust (Late 1990s - Early 2000s):
• Boom: The late 1990s saw a surge of investment in internet-based
companies, leading to rapid growth in e-commerce businesses.
• Dot-Com Bubble: Overvaluation and speculative investments lead to the
dot-com bubble bursting in 2000-2001, resulting in the collapse of many
early e-commerce companies.
• Survivors: Companies like Amazon and eBay survived the crash and
continued to grow, laying the foundation for modern e-commerce.
4. The Rise of Modern Online Marketplaces (2000s-Present):
• 2005: Amazon introduces Amazon Prime, a subscription service offering
faster shipping and other benefits, which significantly increases customer
loyalty and purchase frequency.
,• 2008: Alibaba's Taobao dominates the Chinese market, showcasing the
power of localized e-commerce platforms.
• 2010s:
• Mobile Commerce (m-commerce): The proliferation of smartphones and
mobile apps leads to the growth of mobile commerce, with consumers
shopping directly from their devices.
• Social Commerce: Platforms like Facebook, Instagram, and Pinterest
integrate shopping features, blurring the lines between social media and
e-commerce.
• 2020s:
• The Impact of COVID-19: The pandemic accelerates the shift to online
shopping, with a massive increase in e-commerce sales across the globe.
• New Technologies: The integration of AI, AR/VR, and blockchain
technology starts shaping the future of e-commerce, enhancing customer
experience and trust.
“E-business refers to the use of internet technologies to conduct and
manage a
company’s business processes."(Laudon & Traver, 2017)
BUMBLE:
Digital service delievery: operates entirely online, providing digital service
where users can connect; leverages internet technology to manage user
profiles, match users based on preferences, and facilitate communication
between users.
Monetization: generates revenue through premium subscriptions and in-
app purchases, which are common business models for digital services.
This monetization strategy is a key component of its e-business
operations.
Data managtement: processes and analyzes large amounts of user data to
improve matchmaking algorithms, personalize user experiences, and make
data-driven business decisions. ➔ core components of e-business.
Difference between E-Commerce and E-Business:
• E-Commerce: Focuses specifically on buying and selling transactions
online.
• E-Business: Encompasses a broader scope including internal processes
like supply chain management, CRM, and HR management.
• Examples:
• E-Commerce example: An online retailer selling products directly to
consumers.
• E-Business example: A company using an ERP system to manage supply
chains, alongside its e-commerce activities.
, Benefits e-com:
Convenience: 24/7 availability for customers to shop from anywhere.
• Cost efficiency: Lower overhead costs compared to brick-and-mortar
stores.
• Global reach: Ability to reach international markets without significant
investment in physical infrastructure.
• Data-driven decision making: Enhanced ability to collect and analyze
customer data for personalized experiences.
• Automation: Streamlining operations and reducing human errors through
technology.
Challenges of e-com:
Security and privacy: Issues related to protecting customer data and
transactions.
• Logistics: Managing shipping, inventory, and returns effectively.
• Market saturation: High competition in the digital marketplace.
• Customer trust: Building and maintaining trust in online transactions.
• Regulatory compliance: Adhering to laws and regulations across different
regions.
TECHNOLOGICAL FOUNDATIONS: WHAT DO WE NEED TO MAKE E-COM
WORK?
Lecture 1:
“E-commerce refers to the buying and selling of goods and services, or the
transmitting of funds or data, over an electronic network, primarily the
internet.” (Kalakota & Whinston, 1997)
In this sentence:
buying and selling of goods and services includes transactions between
businesses (B2B), businesses and consumers (B2C), consumers and other
consumers (C2C), and even consumers and businesses (C2B).
transmitting of funds secure transmission of money over electronic
networks, primarily the internet; integral to completing transactions
(allows customers to pay)
data Order details: Sending order confirmations and updates from seller
to buyer.
• Customer information: Transmitting personal and financial information
securely during transactions.
• Inventory updates: Automatically updating stock levels between the e-
commerce platform and the
inventory management system.
• Analytics data: Sending user behavior and transaction data to analytics
tools for business insights.
Bumble:
Main purpose: facilitate social connections— primarily romantic, but also
friendships and professional networking through its different modes (Date,
BFF, and Bizz).
Monetization vs. Commerce: generates revenue through in-app
purchases and subscription services (like Bumble Boost or Bumble
Premium), but not same as the traditional e-commerce model where
physical or digital goods/services are bought and sold.
Data transmission: User profiles, messages, and interactions. However,
focused on enabling social interactions rather than commercial
transactions.
B2B (Business-to-Business):Transactions between businesses.
• B2C (Business-to-Consumer):Transactions between businesses and end
consumers.
• C2C (Consumer-to-Consumer):Transactions between consumers, typically
facilitated
by third-party platforms (e.g., eBay).
• C2B (Consumer-to-Business):Transactions where consumers sell products
or
services to businesses (e.g., influencer marketing).
• G2C (Government-to-Consumer):Transactions between governments and
citizens
(e.g., tax filing, licenses).
,BRIEF HISTORY OF E-COMMERCE:
1. Early Beginnings: Electronic Data Interchange (EDI) (1960s-1970s):
• Definition: EDI refers to the electronic transfer of standardized business
documents, such as purchase orders and invoices, between companies.
• Importance: It laid the groundwork for e-commerce by allowing
businesses to exchange data digitally, reducing the need for paper-based
transactions and manual data entry.
• Development: The first standards for EDI were developed in the 1960s,
but widespread adoption began in the 1970s, particularly in industries like
retail and manufacturing.
2. The Advent of the Internet and the Birth of E-Commerce (1980s-1990s):
• 1982: The introduction of the Transmission Control Protocol/Internet
Protocol (TCP/IP) standardized communication between computers and
allowed the Internet to expand.
• 1984: CompuServe, one of the first major commercial online service
providers, introduces the Electronic Mall, which allowed customers to
purchase products directly from over 110 different merchants.
• 1991: The World Wide Web is made publicly available, which opens up
new possibilities for online business and commerce.
• 1994: Netscape introduces SSL (Secure Sockets Layer) encryption, which
makes secure online transactions possible, paving the way for the first
online purchases.
• 1995: Amazon: Jeff Bezos launches Amazon.com, initially as an online
bookstore, which later evolves into the largest e-commerce platform. eBay:
Pierre Omidyar launches AuctionWeb (later renamed eBay), introducing
the concept of consumer- to-consumer (C2C) transactions.
• 1998: PayPal is founded, providing a secure and easy-to-use online
payment system that further fuels the growth of e-commerce.
3. The Dot-Com Boom and Bust (Late 1990s - Early 2000s):
• Boom: The late 1990s saw a surge of investment in internet-based
companies, leading to rapid growth in e-commerce businesses.
• Dot-Com Bubble: Overvaluation and speculative investments lead to the
dot-com bubble bursting in 2000-2001, resulting in the collapse of many
early e-commerce companies.
• Survivors: Companies like Amazon and eBay survived the crash and
continued to grow, laying the foundation for modern e-commerce.
4. The Rise of Modern Online Marketplaces (2000s-Present):
• 2005: Amazon introduces Amazon Prime, a subscription service offering
faster shipping and other benefits, which significantly increases customer
loyalty and purchase frequency.
,• 2008: Alibaba's Taobao dominates the Chinese market, showcasing the
power of localized e-commerce platforms.
• 2010s:
• Mobile Commerce (m-commerce): The proliferation of smartphones and
mobile apps leads to the growth of mobile commerce, with consumers
shopping directly from their devices.
• Social Commerce: Platforms like Facebook, Instagram, and Pinterest
integrate shopping features, blurring the lines between social media and
e-commerce.
• 2020s:
• The Impact of COVID-19: The pandemic accelerates the shift to online
shopping, with a massive increase in e-commerce sales across the globe.
• New Technologies: The integration of AI, AR/VR, and blockchain
technology starts shaping the future of e-commerce, enhancing customer
experience and trust.
“E-business refers to the use of internet technologies to conduct and
manage a
company’s business processes."(Laudon & Traver, 2017)
BUMBLE:
Digital service delievery: operates entirely online, providing digital service
where users can connect; leverages internet technology to manage user
profiles, match users based on preferences, and facilitate communication
between users.
Monetization: generates revenue through premium subscriptions and in-
app purchases, which are common business models for digital services.
This monetization strategy is a key component of its e-business
operations.
Data managtement: processes and analyzes large amounts of user data to
improve matchmaking algorithms, personalize user experiences, and make
data-driven business decisions. ➔ core components of e-business.
Difference between E-Commerce and E-Business:
• E-Commerce: Focuses specifically on buying and selling transactions
online.
• E-Business: Encompasses a broader scope including internal processes
like supply chain management, CRM, and HR management.
• Examples:
• E-Commerce example: An online retailer selling products directly to
consumers.
• E-Business example: A company using an ERP system to manage supply
chains, alongside its e-commerce activities.
, Benefits e-com:
Convenience: 24/7 availability for customers to shop from anywhere.
• Cost efficiency: Lower overhead costs compared to brick-and-mortar
stores.
• Global reach: Ability to reach international markets without significant
investment in physical infrastructure.
• Data-driven decision making: Enhanced ability to collect and analyze
customer data for personalized experiences.
• Automation: Streamlining operations and reducing human errors through
technology.
Challenges of e-com:
Security and privacy: Issues related to protecting customer data and
transactions.
• Logistics: Managing shipping, inventory, and returns effectively.
• Market saturation: High competition in the digital marketplace.
• Customer trust: Building and maintaining trust in online transactions.
• Regulatory compliance: Adhering to laws and regulations across different
regions.
TECHNOLOGICAL FOUNDATIONS: WHAT DO WE NEED TO MAKE E-COM
WORK?
