Lecture E-Commerce - Chapter 2: E-Commerce

CSC 330 E-Commerce
Teacher

Ahmed Mumtaz Mustehsan
GM-IT CIIT Islamabad

Virtual Campus, CIIT
COMSATS Institute of Information Technology

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E Commerce:
Chapter-1
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Objectives
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Classification of computers. Computer network.
Introduction to internet, growth of internet.
Introduction to web and growth of web.
Internet and Web gave birth to e- commerce.
Understand the evolution from internet to e-commerce.
Define e-commerce and describe how it differs from e-business.
Identify and describe the unique features of e-commerce
technology and discuss their business significance.
Describe the major types of e-commerce.
Evolution of e-commerce.
Discuss the origins and growth of e-commerce.
Identify the factors that will define the future of e-commerce.
Describe the major themes underlying the study of e-commerce.
Identify the major academic disciplines contributing to ecommerce.

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Computer classifications
 Mainframes:

- term for very large computers

- used to handle large amount of data or
complex processes
- main advantage is reliability
 Midrange:
- medium sized, less expensive and smaller
- usually a server
 Micro-computer:
- work stations with computing capabilities
- single-users systems linked to form a network
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What is a network
 Series

of points or nodes interconnected by
communication paths
 Node is a connection point for transmitting data
 Network can interconnect with other networks to
form global networks

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Benefits of a network
 Facilitates

resource sharing
 Provides reliability
 Cost effective
 Provide a powerful medium across geographical
divide

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when internet born
 Worldwide

network of computer networks built on
common standards
 Created in late 1960s (1969) when terminals were
connected with mainframe computers.
 The purpose was to create a net that can function
even if one center is destroyed in a military attack.

◦Network can continue to be functional even if some
nodes are destroyed, as long as information can
pass through other nodes.
 Services include the Web, e-mail, file transfers, etc.

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In the 1980´s
 Personal

computers or terminals were connected to a

server.
 The server was a mainframe, or connected to a
mainframe computer.
 The mainframe was connected to another mainframe
of the company in another location via dedicated
lines.
 Only large companies could afford the expense and
investment in equipment.

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Geographical Distance
 Local

area network (LAN): small area, share a
single server
 Metropolitan area network (MAN): a wider network,
can bridge several LAN’s
 Wide area network (WAN): a broader area covered,
can include several MAN’s

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Network crossed boundaries
 Internet:

a network of networks that covers the entire

globe
 Connections across countries and continents made

through dedicated fast lines.
 A company may have one local network (LAN) in NY,
which is connected to the Internet through a Regional
network.
 Well established in North America, Europe and
certain Asian countries

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When The Web born
 Most

popular Internet service
 Developed in early 1990s
 Provides access to Web pages
◦HTML documents that may include text, graphics,
animations, music, videos
 Web content has grown exponentially
◦2 billion Web pages in 2000
◦ At least 40–50 billion pages today (2010)
◦Now ? (Crossed Trillian)

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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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web to web 2.0 ; another evolution
e-commerce, internet, set of applications and social
media brought together the evolution of web usually
called web 2.0;
The Applications and Technologies allowed the users to:
Create

and share content, preferences,

bookmarks, and online personas, participate in
virtual lives, build online communities
Examples
◦YouTube, Photobucket, Flickr, Google, iPhone,
MySpace, Facebook, LinkedIn, Second Life,
Wikipedia
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The Internet and
the evolution
of corporate
computing gives
birth to
e-commerce

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What is E-commerce?

 Use

of Internet and Web for business transection.

 More

formally:

◦Digitally enabled commercial transactions
between and among organizations and
individuals.

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E-commerce vs. E-business
E-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
boundaries

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The Difference Between E-commerce
and E-Business

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Why Study E-commerce?
 E-commerce

technology is different, more powerful
than previous technologies

 E-commerce

bringing fundamental changes to
commerce. Introduce new buzz words:

Marketplace: a physical place where you go for
business transection.
Marketspace: marketplace extended beyond traditional
boundaries; removed from temporal and geographic
limitations.
Information asymmetry: any disparity in relevant market
information among parties in a transection.
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Unique Features of E-commerce Technology
Ubiquity: available everywhere anytime, 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 total number of users or customers an ecommerce business can obtain is a measure of its reach.
The technology reaches across cultural and national
boundaries, round the globe.
3. Universal standards: technical standard of conducting ecommerce. There is one set of technology standards,
namely Internet standards as compared to different
standards followed by different nations.

4. Information richness: complexity of the content of a
message. Unlimited information of a product is available
through video, audio, and text messages at internet and
social media.
1.

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Unique Features of E-commerce Technology
Interactivity: The technology works through interaction with
the user. One shopkeeper can handle large number of
clients simultaneously at internet.
6. Information density: the total amount of information
available to all market stakeholders. the technology
reduces information collection costs and raises quality
through social media.
7. 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) delivery of product or
service based on a user's preferences or prior behavior
8. 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
worldwide communities.
5.

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Types of E-commerce
Classified by Market Relationship
Business-to-Consumer

(B2C)

◦e-commerce online businesses attempt to reach
individual consumers.
Business-to-Business

(B2B)

◦e-commerce online businesses selling to other
businesses
Consumer-to-Consumer

(C2C)

◦e-commerce consumers selling to other consumers

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Types of E-commerce
Classified by Technology used
Peer-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, (example sharing videos through
Torrents)

Mobile

commerce (M-commerce)

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

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Evolution of E-Commerce
 1995–2000:

Innovation
◦Key concepts developed
◦Dot-coms; heavy venture capital investment

 2001–2006:

Consolidation
◦Emphasis on business-driven approach

 2006–Present:

Reinvention
◦Extension of technologies
◦New models based on user-generated content,
social networking, services

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Origins & Growth of E-commerce
 Precursors:

◦Baxter Healthcare
◦Electronic Data Interchange (EDI)
◦French Minitel (1980s videotext system)
◦None had functionality of Internet
 1995:

Beginning of e-commerce

◦First sales of banner advertisements

 Since

then, e-commerce fastest growing form of
commerce in the United States

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E-COMMERCE TECHNOLOGIES
A commercial History

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