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.

CSC 330 E-Commerce Teacher Ahmed Mumtaz Mustehsan GM-IT CIIT Islamabad Virtual Campus, CIIT COMSATS Institute of Information Technology T1-Lecture-1 E Commerce: Business Technology and Society Chapter-1 T1-Lecture-1 For Lecture Material/Slides Thanks to: Copyright © 2010 Pearson Education, Inc Objectives:        Introduction to CSC 330 E Commerce Course Objectives; Outline,; Text Books and Reference Books, Delivery of the course and grading policy e-commerce today E Commerce and social networking E-commerce trends, 2010-2011 and onwards Define e-commerce and describe how it differs from ebusiness T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, Inc 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 Introduction to: CSC 330 E-Commerce Credit Hours 4( 3,1) hours Teaching plus hours Lab For Lecture Material/Slides Thanks to: Copyright © 2010 Pearson Education, Inc Policy: Delivery, Evaluation & Grading: 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 T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Policy: Delivery, Evaluation & Grading…… Evaluation & Grading : Quizzes Assignments Graded Discussions 4 Midterm Examination First Sessional Second Sessional Terminal Examination 1 T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan 10% 10% 5% 12.5% 12.5% 50% Course Objectives  To understand the role of ecommerce in world economy  Introduction & clear understanding of all types of ecommerce, 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  To & social impacts of ecommerce gain a practical experience in some of the Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, Inc ecommerce techniques T1-Lecture-1 CSC330 E Commerce Text Book E-Commerce: Business Technology and Society Kenneth c Laudon, Caral G Traver 7th edition      ISBN-10: 0273-75084-4 ISBN-13: 978-0-273-75084-0 Edition: Pub Date: 2011 Publisher: Prentice Hall E-Commerce: Business Technology and Society Kenneth c Laudon, Caral G Traver 6th edition      ISBN:0136100570 ISBN-13:9780136100577 Edition:6 Pub Date: November 2009 Publisher: Prentice Hall Note: The older editions along with lecture material will also be sufficient for this course T1-Lecture-1 CSC330 E Commerce Inc Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, Reference Book The Complete E- Commerce Book Design, Build, & maintain a successful Web Based Business REYNOLDS 2nd Edition Also follow the references provided in the lectures and E-Commerce articles published T1-Lecture-1 CSC330 E Commerce Inc Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, E-commerce: A Brief History  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 T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, Inc Early Visions of E-commerce  Computer scientists: ◦Inexpensive, universal communications and computing environment accessible by all  Economists: ◦Nearly perfect competitive market and friction-free commerce ◦Lowered search costs, disintermediation, price transparency, elimination of unfair competitive advantage  Entrepreneurs: ◦Extraordinary opportunity to earn far above normal returns on investment—first mover advantage T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, Inc Early 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 product T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, Inc The Internet Investment Discussion Points for the Class  What 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 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, Inc Assessing E-commerce Many early visions not fulfilled  Friction-free commerce  Consumers less price sensitive  Considerable price dispersion  Perfect competition  Information asymmetries persist  Disintermediation  Smart people/ firms buy and sell goods using their expertise, end-user is still paying more First mover advantage  Fast-followers often overtake first movers T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, Inc Predictions for the Future  Technology  Prices will propagate through all commercial activity will rise to cover the real cost of doing business  E-commerce margins and profits will rise to levels more typical of all retailers  Cast of players will change ◦ Traditional Fortune 500 companies will play dominant role ◦ New startup ventures will emerge with new products, services  Number of successful pure online stores will remain smaller than integrated offline/online stores  Growth of regulatory activity worldwide  Influence of cost of energy T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, Inc 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 T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, Inc The Internet and the Evolution of Corporate Computing T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, Inc E-COMMERCE TECHNOLOGIES A commercial History T1-Lecture-1 CSC330 E Commerce Education, Inc Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Privacy Online: Does Anybody Care? Points of Discussions What techniques of privacy invasion are prevailing through social media? Which of these techniques is the most privacyinvading? Why? Is e-commerce any different than traditional markets with respect to privacy? Don’t merchants always want to know their customer? How you protect your privacy on the Web? T1-Lecture-1 CSC330 E Commerce Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, Inc Academic Disciplines Concerned with E-commerce  Technical approach ◦Computer science ◦Management science ◦Information systems T1-Lecture-1 CSC330 E Commerce  Behavioral approach ◦Information systems ◦Economics ◦Marketing ◦Management ◦Finance/accounting ◦Sociology Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, Inc Advantages of Electronic Commerce  Electronic commerce can increase sales and decrease costs  If 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 inquiries  Provide price quotes 48 Advantages of Electronic Commerce  Ecommerce … ◦increases purchasing opportunities for buyers ◦makes easier negotiating price and delivery terms 49 Disadvantages of Electronic Commerce  Perishable  It products are difficult to sell online is difficult to: ◦Calculate return on investment ◦Integrate existing databases and transactionprocessing software into software that enables ecommerce  Cultural and legal obstacles also exist 50 Thank You T1-Lecture-1 CSC330 E Commerce Inc Ahmed Mumtaz Mustehsan Copyright © 2010 Pearson Education, ... 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... 330 E Commerce Course Objectives; Outline,; Text Books and Reference Books, Delivery of the course and grading policy e- commerce today E Commerce and social networking E- commerce trends, 201 0-2 011... of E- commerce Technology 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