Lecture E-Commerce - Chapter 1: E Commerce - Business technology and society

In this chapter, the learning objectives are: Introduction to E-Commerce delivery of the course and grading policy, e-commerce today, e commerce and social networking, e-commerce trends, define e-commerce and describe how it differs from e-business.

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CSC 330 E-Commerce

Teacher

Ahmed Mumtaz Mustehsan

GM-IT CIIT Islamabad

COMSATS Institute of Information Technology

T1-Lecture-1

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E Commerce:

Business Technology and Society

Chapter-1

T1-Lecture-1

For Lecture Material/Slides Thanks to:

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Introduction to Instructor’s Profile

Course Instructor Ahmed Mumtaz Mustehsan

General Manager-IT COMSATS Institute of Informational Technology, Islamabad

Qualifications: Master in Computer Sciences (1979-81)

Quaid-e-Azam university Islamabad

Area of Expertise &

Specialization: Satellite Image Processing and GIS Specialize at SEP, La defance PARIS, France, (1986-1989 Informal)

Experience: 32 years of experience in the field of IT industry, Education and R & D

Served on: Different Reputable Posts at Middle and Top Management at National and

International Organizations AS:

Scientific Officer, PAEC, Islamabad.

In-charge CTC, UGC, COBS, PAEC, H-9, Islamabad System Manager, Jafrana Limited, Canada

Manager Data Processing, SUPARCO Director, Satellite Ground Station, SUPARCO Associate Professor, University of Lahore Head Department of Computer Sciences, CIIT General Manager IT, CIIT, Islamabad.

Hands on: Development of System software, Information systems and Interactive system

Man machine interface.

Assembly , FORTRAN, COBAL, Java and C Languages.

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Introduction to:

CSC 330 E-Commerce

Credit Hours 4( 3,1)

3 hours Teaching plus 3 hours Lab

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Policy: Delivery, Evaluation & Grading:

T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan

Delivery :

•The course will be imparted through two tracks Track-1 (T1) comprising theoretical components of the course and Track-2 (T2) covering practical expects comprising tools like HTML, XML, Java Scripts, PHP and ASP etc

•T2 will further be covered through Lab exercises and assignments

Note: The students are directed to keep the pace with both the tracks The assessment will be based upon T1 as well as T2

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Policy: Delivery, Evaluation &

Grading……

Evaluation & Grading :

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e-& effective interaction among these technologies

Design & implementation of e-commerce applications and associated hardware, network & security infrastructure Thorough understanding of the payment systems & methods

Business, financial, marketing & behavioral model for ecommerce business

Marketing & social impacts of ecommerce

To gain a practical experience in some of the ecommerce techniques.

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Text Book

E-Commerce: Business Technology and Society

Kenneth c Laudon, Caral G Traver 6th edition

 Pub Date: November 2009

 Publisher: Prentice Hall

Note: The older editions along with lecture material will also be sufficient for this course

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Reference Book

The Complete E- Commerce

Book Design, Build, & maintain

a successful Web Based Business

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Course Outline

T1: Track-I : will be based upon the following text books

T2: Track-2 : will cover HTML, XML, Java Script, PHP

and ASP Technologies

Note; Detailed outline and Lecture Breakdown is available at Course web site.

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Facebook:

The New Face of E-Commerce?

The Facebook is considered to be a new face for the E-Commerce as there are number of

applications available for the users that enable them to interact through the online channels

and buy various new products.

Do you use Facebook?

sure most of you do!! Why?

Facebook today (4 October , 2012)) announced that it

has passed the 1 billion user milestone This makes

Facebook the first social network to reach the 10-figure mark; one out of every seven individuals on the planet now use the service

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Facebook:

Have you purchased anything based on an advertisement at internet?

sure most of you did !! Why?

“Big Data in Today’s Business and Technology

Environment”

 2.7 Zetabytes of data exist in the digital universe today

 IDC Estimates that by 2020,business transactions on the internet- business-to-business (B2B) and business-to-

consumer (B2C) – will reach 450 billion per day

 Facebook stores, accesses, and analyzes 30+ Petabytes

of user generated data

 More than 5 billion people are calling, texting, tweeting and browsing on mobile phones worldwide

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Facebook:

Are you concerned about the privacy of the

information you have posted on Facebook?

sure most of you are least bothered !!

Why?

Default Old policy of facebook:

“ Only your friends will know about your face book profile”

New Default Policy of facebook:

“ no privacy”

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E-commerce Trends 2010-2011 and onwards:

Business, Technology and Society

Business

 New “social e-commerce” platform is emerging based upon networks and support by advertising.

 Social and mobile advertising platforms show strong growth.

 Online business continues to strengthen profitability by referring business model and relying the capabilities of internet.

 Retail e-commerce resumes double digit growth 12.5% annually 6 times faster than traditional retail.

 Twitter continues to grow

 The bandwidth of internet grows especially for entertainment with the result there is explosive growth in online video viewing.

 Small business and entrepreneurs continue to flood into commerce marketplace, utilizing infrastructure created by industrial giants such as Apple, Facebook, Google, Amazon, eBay.

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E-commerce Trends 2010-2011 and onward

 Over million Apps (October 2013) in Apple’s App Store, a new model of delivering services and software.

 Bandwidth prices fall as telecommunications companies expand their capacities with new technologies.

 Computing and networking component prices continue to fall.

 Cloud computing and web services expand B2B opportunities and significantly reduce the cost of Infrastructure needed for e- commerce.

 Real time advertising becomes a reality as firms gain in computing power and database speed.

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E-commerce Trends 2010-2011 and onward

Society

 Consumer and user generated contents at Social networks, Tweets, Blogs, wikis and virtual lives keep growing providing self publishing forums.

 Newspapers and other traditional media adopt online, interactive models.

 Social networks encourage self disclosures while threating privacy.

 Traditional media continue to loose subscribers as online interactive models gaining popularities.

 Copyrights conflicts are slowly being settling down as an informal understanding between internet users and copyright owners is being developed.

 Explosive growth in the use of entertainment media continues.

 Participation of adults in social networks such as facebook is increasing

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The First 30 Seconds

e-commerce revolution

enabled social and commercial life, the outlines of

which we can barely perceive at this time

opportunities as well as risks for new and traditional

business as it offers the possibility of extraordinary

gains in social wealth as the digital revolution is taking place

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Retail E-Commerce (Non-Travel) Growth Rates

Excludes Auctions, Autos and Large

Corporate Purchases

Total U.S – Home/Work/University Locations

Source: comScore, Inc

US Census Bereau 2008 e-Store Report

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What is E-commerce?

between and among organizations and

individuals

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E-commerce vs E-business

◦ Digital enablement of transactions and

processes within a firm, involving information

systems under firm’s control.

involving an exchange of value across

organizational boundaries

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Slid

e 22The Difference Between E-commerce

1-and E-Business

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Why Study E-commerce?

than previous technologies

commerce Introduce new buzz words:

transection

boundaries; removed from temporal and geographic locations

information among parties in a transection

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Unique Features of E-commerce Technology

1 Ubiquity: Available everywhere and all the time, i.e

Internet/Web technology is available everywhere; at work,

at home, and elsewhere via mobile devices and round the clock (anytime).

2 Global reach: The technology reaches across national

boundaries, around the earth.

3 Universal standards: There is one set of technology

standards, namely Internet standards as compared to

different standards followed by different nations.

4 Information richness: unlimited information of a product is

available through Video, audio, and text messages at

internet and social media.

5 Interactivity: The technology works through interaction with

the user One shopkeeper can handle large number of

clients simultaneously at internet as compared to traditional e-commerce.

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5 Information density: The technology reduces information

costs and raises quality through social media The

authenticity achieved through public domain

6 Personalization/customization: Personalization: The

targeting of marketing messages to specific individuals by adjusting the message to a person's name, interests, and past Purchases (Customization) Changing the delivered product or service based on a user's preferences or prior behavior

7 Social technology: user content generation and social

networking The e-commerce technologies have evolved users to create and generate contents in the form of web, Facebook pages, text, video, music and photos with

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Web 2.0

and online personas

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resources directly without having to go through a

central Web server, in e-commerce

◦m-commerce use of wireless digital devices to enable transactions on the Web

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The Internet

common standards

hosts with domain names

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The Growth of the Internet, Measured by

Number of Internet Hosts with Domain Names

SOURCE: Internet Systems Consortium,

Inc., 2009.

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The Web

animations, music, videos

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Origins & Growth of E-commerce

commerce in the United States

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The Growth of B2C E-commerce

Figure 1.4, Page 25

SOURCES: eMarketer, Inc., 2009a; U.S Census Bureau, 2009b; authors’ estimates.

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The Growth of B2B E-commerce

SOURCES: U.S Census Bureau, 2009a; authors’ estimates.

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Technology and E-commerce in Perspective

technologies that have greatly changed commerce

confronts its own fundamental limitations

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Potential Limitations on the Growth of B2C E-commerce

traditional shopping experiences

and computers

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E-commerce: A Brief History

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Early Visions of E-commerce

environment accessible by all

commerce

transparency, elimination of unfair competitive

advantage

returns on investment—first mover advantage

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Early Visionary introduced new terminologies

who traditionally are intermediaries between producers and consumers by a new direct relationship between

manufacturers and content originators with their

customers

information is equally distributed, transaction costs are low, prices can be dynamically adjusted to reflect actual demand, intermediaries decline, and unfair competitive advantages are eliminated

area and that moves quickly to gather market share

the fact that everyone else uses the same tool or product

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The Internet Investment

Discussion Points for the Class

What type of risk is involved?

on e-commerce investment?

YouTube which has yet to show profitability?

in investing in or purchasing e-commerce

companies? Would you invest in an e-commerce

company today?

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Assessing E-commerce

Many early visions not fulfilled

their expertise, end-user is still paying more

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