E-commerce 2023-2024: Business, Technology, Society - Chapter 1 PDF

E-commerce 2023–2024: business. technology. society. Eighteenth Edition Chapter 1 Introduction to E- commerce © 2023 Pearson Education Ltd. All Rights Reserved ...

E-commerce 2023–2024: business. technology. society. Eighteenth Edition Chapter 1 Introduction to E- commerce © 2023 Pearson Education Ltd. All Rights Reserved Learning Objectives 1.1 Understand why it is important to study e-commerce. 1.2 Define e-commerce, understand how e-commerce differs from e- business, identify the primary technological building blocks underlying e-commerce, and recognize major current themes in e-commerce. 1.3 Identify and describe the unique features of e-commerce technology and discuss their business significance. 1.4 Describe the major types of e-commerce. 1.5 Understand the evolution of e-commerce from its early years to today. 1.6 Describe the major themes underlying the study of e-commerce. © 2023 Pearson Education Ltd. All Rights Reserved TikTok: Creators and the Creator Economy Class Discussion – Why is TikTok so popular? – Do you use TikTok? If so, in what manner—do you just view content or also post content? – Do you consider yourself a creator? Have you ever received payments for content you have created? – What are some of the negative consequences associated with being a creator? © 2023 Pearson Education Ltd. All Rights Reserved The First Five Minutes: Why You Should Study E-commerce First quarter-century or so of e-commerce – Still 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 © 2023 Pearson Education Ltd. All Rights Reserved What Is 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 individuals © 2023 Pearson Education Ltd. All Rights Reserved 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 © 2023 Pearson Education Ltd. All Rights Reserved Figure 1.1 The Difference Between E-commerce and E-business © 2023 Pearson Education Ltd. All Rights Reserved Technological Building Blocks Underlying E-commerce The Internet – Worldwide network of computer networks built on common standards The World Wide Web – Provides access to trillions of web pages created in HTML – “Surface” Web versus “deep” Web Mobile platform – Smartphones, tablets, ultra-lightweight laptops – Mobile apps © 2023 Pearson Education Ltd. All Rights Reserved Insight on Technology: Will Apps Make the Web Irrelevant? Class Discussion – What are the advantages and disadvantages of apps, compared with websites, for mobile users? – What are the benefits of apps for content owners and creators? – What are progressive web apps and how do they differ from native apps? – Will apps eventually make the Web irrelevant? Why or why not? © 2023 Pearson Education Ltd. All Rights Reserved Major Trends in E-commerce (1 of 3) Business trends include: – Retail e-commerce and m-commerce settle back to normal growth rates (around 10%) after Covid-19 pandemic – Mobile app ecosystem: almost 250 million U.S. adults use smartphone apps – Social e-commerce estimated to generate around $55 billion in 2022 – B2B e-commerce revenues expected to reach about $8.5 trillion in 2022 © 2023 Pearson Education Ltd. All Rights Reserved Major Trends in E-commerce (2 of 3) Technology trends include: – Mobile platform – Cloud computing – Internet of Things – Big data – Artificial intelligence technologies – Blockchain – Web3 – Metaverse © 2023 Pearson Education Ltd. All Rights Reserved Major Trends in E-commerce (3 of 3) Societal trends include: – User-generated content – Commercial and governmental invasion of privacy – Concerns about increasing market dominance of Amazon, Google, Meta (Big Tech) – Online security issues © 2023 Pearson Education Ltd. All Rights Reserved Unique Features of E-commerce Technology (1 of 2) 1. Ubiquity 2. Global reach 3. Universal standards 4. Information richness © 2023 Pearson Education Ltd. All Rights Reserved Unique Features of E-commerce Technology (2 of 2) 5. Interactivity 6. Information density 7. Personalization/customization 8. Social technology © 2023 Pearson Education Ltd. All Rights Reserved Figure 1.4 Eight Unique Features of E-commerce Technology © 2023 Pearson Education Ltd. All Rights Reserved Types of E-commerce Business-to-consumer (B2C) Business-to-business (B2B) Consumer-to-consumer (C2C) Mobile e-commerce (M-commerce) Social e-commerce Local e-commerce © 2023 Pearson Education Ltd. All Rights Reserved Figure 1.9 The Relative Size of Different Types of E-commerce © 2023 Pearson Education Ltd. All Rights Reserved E-commerce: A Brief History (1 of 4) Precursors – Baxter Healthcare modem-based system (1970s) – Order entry systems (1980s) – Electronic Data Interchange (EDI) standards (1980s) – French Minitel (1981) © 2023 Pearson Education Ltd. All Rights Reserved E-commerce: A Brief History (2 of 4) 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 © 2023 Pearson Education Ltd. All Rights Reserved E-commerce: A Brief History (3 of 4) 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 © 2023 Pearson Education Ltd. All Rights Reserved E-commerce: A Brief History (4 of 4) 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 © 2023 Pearson Education Ltd. All Rights Reserved Figure 1.10 Periods in the Development of E-commerce © 2023 Pearson Education Ltd. All Rights Reserved Insight on Business: Rocket Internet Class Discussion – What are the benefits of investing in a company that Rocket Internet has launched? – Is an incubator the best solution for start-ups to find funding? Why or why not? – Why is Rocket Internet controversial? © 2023 Pearson Education Ltd. All Rights Reserved Assessing E-commerce (1 of 2) 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 © 2023 Pearson Education Ltd. All Rights Reserved Assessing E-commerce (2 of 2) Other surprises – Fast-follower advantages – Start-up costs – Impact of mobile platform – Emergence of on-demand e-commerce © 2023 Pearson Education Ltd. All Rights Reserved 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 © 2023 Pearson Education Ltd. All Rights Reserved Insight on Society: Facebook and the Age of Privacy Class Discussion – Why are social networks interested in collecting user information? – What types of privacy invasion are described in the case? Which is the most privacy-invading, and why? – Was the Federal Trade Commission’s $5 billion fine and its placement of restrictions on Facebook’s business operations sufficient in light of Facebook’s history with respect to privacy violations? – How do you protect your privacy online? © 2023 Pearson Education Ltd. All Rights Reserved Careers in E-commerce Position: Category Specialist in the E-commerce Retail Program Qualification/Skills Preparing for the Interview Possible Interview Questions © 2023 Pearson Education Ltd. All Rights Reserved Copyright This work is protected by United Kingdom copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning. Dissemination or sale of any part of this work (including on the World Wide Web) will destroy the integrity of the work and is not permitted. The work and materials from it should never be made available to students except by instructors using the accompanying text in their classes. All recipients of this work are expected to abide by these restrictions and to honor the intended pedagogical purposes and the needs of other instructors who rely on these materials. © 2023 Pearson Education Ltd. All Rights Reserved