Lecture 1 - Introduction to e-commerce.pptx
- 1. By Falema G. Course Title: E-Commerce Lecture one : Introduction to E-Commerce By Falema G. Addis Ababa University School of Information Science Department of Information Systems
- 2. E-Commerce E-commerce involves the use of the Internet, the World Wide Web (Web), and mobile apps and browsers running on mobile devices to transact business. Digitally enabled transactions include all transactions mediated by digital technology Commercial transactions involve the exchange of value (e.g., money) across organizational or individual boundaries in return for products and services By Falema G.
- 3. E-Commerce vs E-Business ●E-Commerce is not “anything digital” that a firm does. ●E-Business refers primarily to the digital enabling of transactions and processes within a firm, involving information systems under the control of the firm. ●E-Business does not include commercial transactions involving an exchange of value across organizational boundaries. By Falema G.
- 4. Eight Unique Features of E-commerce Technology UBIQUITY GLOBAL REACH UNIVERSAL STANDARDS INFORMATION RICHNESS INTERACTIVITY INFORMATION DENSITY PERSONALIZATION/ CUSTOMIZATION SOCIAL TECHNOLOGY
- 5. UBIQUITY ● It is available just about everywhere and at all times. ● Marketplace vs Marketspace ● Reduce Cognitive Energy (Advantage) ○ Examples:- ● Accessing a bank account (24/7) ● Purchasing from Internet. ● Online Tracking ● Online Ticket Reservation ● Paying Utility Bills By Falema G.
- 6. GLOBAL REACH ●Reach: the number of user or customers an e- commerce business can obtain. - Traditional Commerce base on Television , Radio, Newspaper and Sales force. - Using Internet Commercial transactions to cross cultural and national boundaries Examples:- ○310 million customers | http://www.amazon.com/ ○3.07 billion Active Users | http://www.facebook.com/ ○Growing Mobile Social Network By Falema G.
- 7. UNIVERSAL STANDARDS ●Standards (i.e. INTERNET) shared by all nations around the world - Traditional commerce technologies differ from one nation to the next ( Radio, Newspaper, TV ) etc. - Using Internet Commercial transactions to cross cultural and national boundaries Benefits of Universal Standards ○Reduced search costs for consumers| http://www.google.com/ ○simpler, faster, with more accurate price discovery ○Lower market entry costs for merchants ○find many of the suppliers, prices, and delivery terms of a specific product
- 8. RICHNESS ●The complexity and content of a message ●Traditional commerce national sales forces, and small retail stores have great richness face-to-face service using aural and visual cues when making a sale. ●But there is Trade-off between richness and reach - Benefits of Richness ■more information richness than traditional media ■chatting with an online customer support person ■sell ‘complex’ goods and services ■Compare All (Prices, attributes, Services etc) By Falema G.
- 9. INTERACTIVITY ●Communication between the merchant and the consumer. ●Traditional commerce national sales forces, and small retail stores have great richness face-to-face service using aural and visual cues when making a sale. - Interactivity in E-Commerce ●Customer Support ●Customer Reviews ●Feedback, FAQ’s, Newsletter Option ●Email Support ●Live Help with customer representative By Falema G.
- 10. INFORMATION DENSITY ●Total amount and quality of information available to all market participants ●Internet and the web vastly increase information density. ●Ecommerce technologies reduce information collection, storage, processing, and communication costs. ●Due to E-commerce Technologies information becomes more plentiful, less expensive and of higher quality. ●Go to Amazon, Ebay or walmart website you can find variety of products and prices. ●Growth in information density could result in ■Greater price transparency, Cost,Segmentation
- 11. PERSONALIZATION & CUSTOMIZATION ●PERSONALIZATION: The targeting of marketing messages to specific individuals by adjusting the message to a person’s name, interest, and past purchases. Examples:- 1. Product search history on amazon.com 2. Welcome message by name on Gmail. ●CUSTOMIZATION: Changing the delivered product or service by Customer. Examples:- 1. Add Text or Images not included in the original design 2. Customize a laptop on Dell.com. 3. Add Text , Color to customize Shirts. By Falema G.
- 12. SOCIAL TECHNOLOGY ●User content generation and social networking technologies. - socializing traditional e-commerce sites by integrating social elements into existing retail websites. - Social technologies are increasingly being used to connect with customers to build strong and lasting relationships, through ratings and reviews, blogs, Wiki’s, micro-blogging, forums and communities like Facebook. Social Media Examples ○Facebook | plugins integration ○Twitter | plugins integration ○Pinterest | plugins integration ○Google+ | plugins integration By Falema G.
- 13. Types of e-commerce ●Business-to-Consumer: Amazon ●Business-to-Business: Metalshub ●Consumer-to-Consumer: e-bay ●Mobile e-commerce ●Social e-commerce: Telegram ●Local e-commerce: Groupon By Falema G.
- 14. TYPES OF E-COMMERCE There are a number of different types of e-commerce and many different ways to characterize them. By Falema G.
- 15. MAJOR TRENDS IN E-COMMERCE ● The Covid-19 pandemic fuels a surge in retail e-commerce and m- commerce. ● The mobile app ecosystem continues to grow, with almost 2.8 billion people ● Social e-commerce, based on social networks and supported by advertising, emerges and continues to grow, generating an estimated $90 billion worldwide in 2020. ● Mobile advertising continues growing at astronomical rates, accounting for over 70% of all digital ad spending. ● Small businesses and entrepreneurs went neck to neck with the major players like Google, Amazon,Fb,Apple and etc. Business By Falema G.
- 16. TECHNOLOGY ● A mobile computing and communications platform based on smartphones, tablet computers, wearable devices, and mobile apps becomes a reality, creating an alternative platform for online transactions, marketing, advertising, and media viewing. ● Smart speakers such as Amazon Echo and Google Home become increasingly popular, providing an additional platform for e-commerce. ● Cloud computing completes the transformation of the mobile platform by storing consumer content and software on “cloud” (Internet-based) servers and making it available to any consumer-connected device, from the desktop to a smartphone. ● The Internet of Things (IoT), comprised of billions of Internet-connected devices, continues to grow exponentially. ● In order to make sense out of big data, firms turn to sophisticated software called business analytics (or web analytics). By Falema G.
- 17. SOCIETY ○ User-generated content, published online as social network posts, tweets, blogs, and pins, as well as video and photo-sharing, continues to grow and provides a method of self-publishing that engages millions. ○ Social networks encourage self-revelation, threatening privacy, as Facebook comes under fire for allowing third parties such as Cambridge Analytica, device makers, and app developers to mine its database of user information without user consent. ○ The EU General Data Protection Regulation impacts all companies that operate in any of the EU member nations. ○ Concerns over commercial and governmental privacy invasion increase. ○ Online security continues to decline as major companies are hacked and lose control over customer information. ○ Spam remains a significant problem.
- 18. E-Commerce themes 1. Technology— the Internet, the Web, and mobile platform, and a host of complementary technologies —cloud computing, desktop computers, smartphones, tablet computers, local area networks, client/server computing, packet-switched communications, protocols such as TCP/IP, web servers, HTML, and relational and non-relational databases, among others. 2. Business—electronic markets, information goods, business models, firm and industry value chains, industry structure, and consumer behaviour in digital markets. While technology provides the infrastructure, it is the business applications—the potential for extraordinary returns on investment— that create the interest and excitement in e- commerce. 3. Society—intellectual property, individual privacy, and public policy, etc
- 19. Reading Assignment 1. Laudon and Traver (2021) E-commerce 2020-21 (17th ed.); E-commerce: A brief History; PP 63- 73. 2. How to Write a Case Study: Bookmarkable Guide & Template. Braden Baker. https://blog.hubspot.com/blog/tabid/6307/bid/33282/the-ultimate-guide-to-creating-comp elling-case-studies.aspx 3. Read about Ethiopia’s top E-commerce websites By Falema G.