Giáo trình Thương mại điện tử - Business Technology and Society

CSC 330 E-CommerceTeacher Ahmed Mumtaz Mustehsan GM-IT CIIT Islamabad Virtual Campus, CIIT COMSATS Institute of Information TechnologyT1-Lecture-1E Commerce:Business Technology and SocietyChapter-1T1-Lecture-1For Lecture Material/Slides Thanks to: Copyright © 2010 Pearson Education, IncObjectives:Introduction to CSC 330 E Commerce Course Objectives; Outline,; Text Books and Reference Books,.Delivery of the course and grading policy.e-commerce todayE Commerce and social networking.E-commerce trends, 2010-2011 and onwards.Define e-commerce and describe how it differs from e-business.T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncIntroduction to Instructor’s ProfileCourse InstructorAhmed Mumtaz MustehsanGeneral Manager-ITCOMSATS 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, IslamabadSystem Manager, Jafrana Limited, CanadaManager Data Processing, SUPARCODirector, Satellite Ground Station, SUPARCOAssociate Professor, University of LahoreHead Department of Computer Sciences, CIITGeneral 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. Introduction to:CSC 330 E-CommerceCredit Hours 4( 3,1)3 hours Teaching plus 3 hours LabFor Lecture Material/Slides Thanks to: Copyright © 2010 Pearson Education, IncPolicy: Delivery, Evaluation & Grading:T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz MustehsanDelivery :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.Policy: Delivery, Evaluation & GradingT1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz MustehsanEvaluation & Grading :Quizzes 4 10%Assignments 4 10%Graded Discussions 4 5% Midterm Examination 2 First Sessional 1 12.5%Second Sessional 1 12.5%Terminal Examination 1 50%Course ObjectivesTo understand the role of ecommerce in world economy. Introduction & clear understanding of all types of e-commerce, associated technologies & their integration & 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.T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncText BookE-Commerce: Business Technology and SocietyKenneth c. Laudon, Caral G. Traver 7th editionE-Commerce: Business Technology and SocietyKenneth c. Laudon, Caral G. Traver 6th editionT1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncISBN-10: 0273-75084-4ISBN-13: 978-0-273-75084-0Edition: 7Pub. Date: 2011Publisher: Prentice HallISBN:0136100570ISBN-13:9780136100577Edition:6Pub. Date: November 2009Publisher: Prentice HallNote: The older editions along with lecture material will also be sufficient for this courseReference BookThe Complete E- Commerce Book Design, Build, & maintain a successful Web Based Business. REYNOLDS 2nd EditionAlso follow the references provided in the lectures and E-Commerce articles published.T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncCourse OutlineT1: Track-I: will be based upon the following text books T2: Track-2: will cover HTML, XML, Java Script, PHP and ASP TechnologiesNote; Detailed outline and Lecture Breakdown is available at Course web site.T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncFacebook: 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.T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncFacebook: The New Face of E-Commerce?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. T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncFacebook: The New Face of E-Commerce?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”T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncE-commerce Trends 2010-2011 and onwards: Business, Technology and SocietyBusinessNew “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 e-commerce marketplace, utilizing infrastructure created by industrial giants such as Apple, Facebook, Google, Amazon, eBay... etc .. etcT1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncE-commerce Trends 2010-2011 and onwardTechnologyWireless Internet connections (Wi-Fi, Wi-Max, and 3G telephone) grow rapidly.A mobile computing and communications platform based on iphones, BlackBerries, and other smartphones, netbooks, computers and iPad becomes a reality and begins to challange PC.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.The global population using the internet continues to expand.T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncE-commerce Trends 2010-2011 and onwardSocietyConsumer 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. Internet security worsens due to malware spams and identify theft occurrences.T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncThe First 30 Secondsfirst ten years of e-commerce represents just the beginning—also called the first thirty seconds of the e-commerce revolution.Technologies continue to evolve at exponential ratesDisruptive business changeNew opportunitiesThe twenty-first century will be the age of a digitally enabled social and commercial life, the outlines of which we can barely perceive at this time.The next five years hold out extraordinary 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.T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncRetail E-Commerce (Non-Travel) Growth RatesExcludes Auctions, Autos and Large Corporate PurchasesTotal U.S. – Home/Work/University LocationsSource: comScore, Inc. Quarter E-Commerce Spending ($ Millions) Y/Y Percent Change Q1 2007 $27,970 17% Q2 2007 $27,176 23% Q3 2007 $28,441 23% Q4 2007 $39,132 19% Q1 2008 $31,178 11% Q2 2008 $30,581 13% Q3 2008 $30,274 6% Q4 2008 $38,071 -3% Q1 2009 $31,031 0% Q2 2009 $30,169 -1% Q3 2009 $29,552 -2% Q4 2009 $39,045 3% T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncUS Census Bereau 2008 e-Store ReportT1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncWhat is E-commerce? Use of Internet and Web for business transection.More formally:Digitally enabled commercial transactions between and among organizations and individuals.T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncE-commerce vs. E-businessE-business:Digital enablement 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 boundariesCopyright © 2002 Pearson Education, Inc.Slide 1-22The Difference Between E-commerce and E-BusinessT1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncWhy Study E-commerce?E-commerce technology is different, more powerful than previous technologiesE-commerce bringing fundamental changes to commerce. Introduce new buzz words:Marketplace: a physical place you use for business transection.Marketspace: marketplace extended beyond traditional boundaries; removed from temporal and geographic locations.Information asymmetry: any disparity in relevant market information among parties in a transection.T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncUnique Features of E-commerce TechnologyUbiquity: 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).Global reach: The technology reaches across national boundaries, around the earth.Universal standards: There is one set of technology standards, namely Internet standards as compared to different standards followed by different nations.Information richness: unlimited information of a product is available through Video, audio, and text messages at internet and social media.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.Information density: The technology reduces information costs and raises quality through social media. The authenticity achieved through public domain. 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 behaviorSocial 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 worldwide communities.T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncUnique Features of E-commerce TechnologyT1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncWeb 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 LifeWikipediaT1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncTypes of E-commerceClassified by market relationshipBusiness-to-Consumer (B2C)e-commerce online businesses attempt to reach individual consumers.Business-to-Business (B2B)e-commerce online businesses selling to other businessesConsumer-to-Consumer (C2C)e-commerce consumers selling to other consumersT1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncTypes of E-commerceClassified by technology usedPeer-to-Peer (P2P)e-commerce use of peer-to-peer technology, which enables Internet users to share files and computer resources directly without having to go through a central Web server, in e-commerceMobile commerce (M-commerce)m-commerce use of wireless digital devices to enable transactions on the WebT1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncThe 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 T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncThe Growth of the Internet, Measured by Number of Internet Hosts with Domain NamesSOURCE: Internet Systems Consortium, Inc., 2009.T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncThe 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 40–50 billion pages today (2010) T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncOrigins & Growth of E-commercePrecursors:Baxter Healthcare Electronic Data Interchange (EDI) French Minitel (1980s videotext system)None had functionality of Internet1995: Beginning of e-commerceFirst sales of banner advertisementsSince then, e-commerce fastest growing form of commerce in the United States T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncThe Growth of B2C E-commerceFigure 1.4, Page 25SOURCES: eMarketer, Inc., 2009a; U.S. Census Bureau, 2009b; authors’ estimates.The Growth of B2B E-commerceSOURCES: U.S. Census Bureau, 2009a; authors’ estimates.T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncTechnology and E-commerce in PerspectiveThe Internet and Web: Just two of a long list of technologies that have greatly changed commerceAutomobilesRadioTVE-commerce growth will eventually cap as it confronts its own fundamental limitations.T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncPotential Limitations on the Growth of B2C E-commerceExpensive technology Sophisticated skill set Persistent cultural attraction of physical markets and traditional shopping experiencesPersistent global inequality limiting access to telephones and computersSaturation and ceiling effectsT1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncE-commerce: A Brief History1995–2000: InnovationKey concepts developedDot-coms; heavy venture capital investment2001–2006: ConsolidationEmphasis on business-driven approach2006–Present: ReinventionExtension of technologiesNew models based on user-generated content, social networking, servicesT1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncEarly 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 investment—first mover advantageT1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncEarly Visionary introduced new terminologies Disintermediation: displacement of market middlemen who traditionally are intermediaries between producers and consumers by a new direct relationship between manufacturers and content originators with their customers.friction-free commerce : a vision of commerce in which 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.first mover: a firm that is first to market in a particular area and that moves quickly to gather market share.network effect: occurs where users receive value from the fact that everyone else uses the same tool or productT1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncThe Internet InvestmentDiscussion Points for the ClassWhat impact has created by OLX in our society? What type of risk is involved?What was the effect of the big bust of March 2000 on e-commerce investment?What is the value to investors of a company such as YouTube which has yet to show profitability?Why do you think investors today would be interested in investing in or purchasing e-commerce companies? Would you invest in an e-commerce company today? T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncAssessing E-commerceMany early visions not fulfilledFriction-free commerceConsumers less price sensitiveConsiderable price dispersionPerfect competitionInformation asymmetries persistDisintermediationSmart people/ firms buy and sell goods using their expertise, end-user is still paying more.First mover advantageFast-followers often overtake first moversT1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncPredictions 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 energyT1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncUnderstanding 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 policyT1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncThe Internet and the Evolution of Corporate ComputingT1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncT1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncE-COMMERCE TECHNOLOGIESA commercial HistoryPrivacy Online: Does Anybody Care?Points of DiscussionsWhat techniques of privacy invasion are prevailing through social media?Which of these techniques is the most privacy-invading? Why?Is e-commerce any different than traditional markets with respect to privacy? Don’t merchants always want to know their customer?How do you protect your privacy on the Web?T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, IncAcademic Disciplines Concerned with E-commerceTechnical approachComputer scienceManagement scienceInformation systemsBehavioral approachInformation systemsEconomicsMarketingManagementFinance/accountingSociologyT1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, Inc48Advantages of Electronic CommerceElectronic commerce can increase sales and decrease costsIf advertising is done well on the Web, it can get a firm’s promotional message out to potential customers in every country Using e-commerce sales support and order-taking processes, a business can:Reduce costs of handling sales inquiriesProvide price quotes 49Ecommerce increases purchasing opportunities for buyersmakes easier negotiating price and delivery termsAdvantages of Electronic Commerce50Disadvantages of Electronic CommercePerishable products are difficult to sell onlineIt is difficult to:Calculate return on investmentIntegrate existing databases and transaction-processing software into software that enables e-commerceCultural and legal obstacles also existThank YouT1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, Inc