Electronic Commerce Dr. Robert Chi Chair and Professor, IS department Chief editor, Journal of...
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Transcript of Electronic Commerce Dr. Robert Chi Chair and Professor, IS department Chief editor, Journal of...
Electronic Commerce
Dr. Robert Chi
Chair and Professor, IS department
Chief editor, Journal of Electronic Commerce Research
Year 2000, The bubble burst?
• The party is over – the New York Post
• Next big thing? There never was; There never will be?
What is E-commerce
• Disintermediation• Examples
– Yahoo, myyahoo.com• Individualization
– Dell• Mass customization
– Fedex• Interactivity
– Walmart• Extranet
Origin of the Internet
• Innovation Phase (1961-1974)
• Institutional phase (1975-1995)
• Commercialization Phase (1995-present)
Impacts (1)
• Makes a massive quantitative of data more available and easier to access then ever before (information transparency)– Bring buyers and seller together
• Instantaneous and two way information exchange (Interactivity)– Efficiency, effectiveness and Better customer service
• Customization and individualization– Demand driven business model, Customer centered
approach
Impacts (2)
• Digitalization– Digital products– Digital transaction– Digital delivery
• Globalization– Offshore outsourcing– Globalized logistics
7 unique features of E-commerce Technology)
• Ubiquity
• Global reach
• Universal Standard
• Richness
• Interactivity
• Information Density
• Personalization/Customization
Types of E-commerce
• B2C (150 billion in 2005)
0
50
100
150
200
250
1997 1999 2001 2003 2005 2007
Revenue
• B2B (4000 billion in 2005)
0
1000
2000
3000
4000
5000
6000
1998 2000 2002 2004 2006
B2B (billion)
• C2C
• C2B
• M-commerce
E-commerce I and I
E-commerce I E-commerce II
Technology driven Business driven
Revenue growth emphasis Earning and profits emphasis
Venture capital financing Traditional financing
Ungoverned Strong regulation and governance
Entrepreneurial Large traditional firms
Dis-intermediation Strengthening intermediaries
Perfect markets Imperfect markets, brands and network effects
Pure online strategies Mixed clicks and bricks strategies
First move advantages Strategic follower strength; complimentary assets
E-commerce Business Models– Business models?
• A set of planned activities (business processes) designed to result in a profit in a marketplace.
– Key factors• Value proposition
– How a company’s product or services fulfill the needs of customers. Why should the customer buy from you?
• Revenue model– How the firm will earn revenue, generate profits.
• Market opportunity– What market space do you intend to serve and what is its size
• Competitive environment– What special advantages does your firm bring to the market space
• Market strategy– How do you plan to promote your products or services to attract your target audience
Continued..
• Organizational development– What types of organizational structures within the firm are
necessary to carry out the business plan
• Management team– What kinds of experience and background are important
for the company’s leaders to have
Major B2C Business Models (handout 1)
• Portal: yahoo.com
• Etailer: amazon.com
• Content provider: wsj.com
• Transaction broker: etrade.com
• Market creator: ebay.com
• Service provider: mycfo.com
• Community provider: about.com
Major B2B Business Models (handout 2)
• Net Marketplaces– E-distributor: staples.com
– E-purcurement: Ariba.com
– Exchanges: gepolymerland.com
– Industry consortia:
• Private Industrial Networks– Single firm networks
• Buyer, seller
– Industry-wide networks
Other Business Models (handout 2)
• C2C: ebay.com
• P2P” kazaa.com
• M-commerce:
Web design
• Static vs. dynamic web design– HTML, XML..– ASP, Coldfusion…
• Color Scheme
• Layout
• Domain Names
In class exercise
• Develop an e-commerce business model which is preferred to be unique and design the first page of its web site
• Teamwork, 20 minutes
Internet Marketing Strategy
• Strategy – What to do– How to do it– Led by a slogan
• Microsoft: anywhere anytime• What do you want to do today• Starbucks: a cup at a time• Disneyland: the happiest place on earth
– A company with a good strategy • Conscious • capable
Marketing strategy (handout 6)
• Pure Play– Segmentation
• Meaningful and actionable
– Target market selection• Segment size and growth• Structure attractiveness: porter’s 5 forces model• objectives and resources:
– Positioning: articulate what the brand stand for in the consumer’s mind
The future Infrastructure
• Current limitations– bandwidth, services, architecture, HTML, wired
• The Internet2 project (Next generation Internet project)– High speed network
– Including revolutionary internet applications
– Rapid transfer of new network services ands applications to the broader internet community
Fiber optics and wireless (handout 4,5)
• Fiber• Wireless
– Telephone wireless access• 460 million cell phones sold in 2003• 1G: analog transmission, circuit switch• 2G: digital transmission, circuit switch• 3G: digital transmission, packet switch• Global system for mobile communication (GSM) vs. Code
division multiple access(CDMA)
– Computer network wireless access• WiFi, WiFi5, WiMax, BlueTooth