E­commerce 2016

business. technology. society.

Chapter 1 twelfth edition
THE REVOLUTION
IS
JUST
BEGINNING
Kenneth C. Laudon
Carol Guercio Traver
 E-commerce Trends 2014–2015
 Retail e-commerce grows over 14%
 Continued expansion of mobile,social, and local e-commerce
 On-demand service firms show explosive growth
 Cloud computing completes transformation of mobile platform by
storing user content
 Continued growth in Big Data and business analytics
 Government surveillance of online communications expands (Giám sát của 
chính phủ về việc mở rộng truyền thông trực tuyến)
 The First 30 Seconds
 First 20 years of e-commerce

 Just the beginning

 Rapid growth and change

 Technologies continue to evolve at exponential rates

 Disruptive business change

 New opportunities
 What Is E-commerce?
 Use of Internet and Web to transact business
 More formally:
 Digitally enabled commercial transactions between
and among organizations and individuals
 Class Discussion
The Uber-ization of Everything
 Have you used Uber or any other on-demand service
companies? (Bạn đã sử dụng Uber hoặc bất kỳ công ty dịch vụ theo 
yêu cầu nào khác chưa?) 
 What is the appeal of these companies for users and
providers? (Sự hấp dẫn của các công ty này đối với người dùng và nhà 
cung cấp là gì?)
 Are there any negative consequences to the increased
use of on-demand services like Uber and Airbnb? (Sự 
hấp dẫn của các công ty này đối với người dùng và nhà cung cấp là gì?)
 E-commerce vs. E-business
 E-business:

 Digital enabling of transactions and processes within a

firm, involving information systems under firm’s control
(Cho phép số hóa các giao dịch và quy trình trong một công ty, liên quan đến các hệ
thống thông tin dưới sự kiểm soát của công ty)

 Does not include commercial transactions involving an

exchange of value across organizational boundaries (Không
bao gồm các giao dịch thương mại liên quan đến việc trao đổi giá trị
xuyên qua các ranh giới tổ chức)
 Why Study E-commerce?
 E-commerce technology is different, more powerful than
previous technologies

 E-commerce brings fundamental changes to commerce

 Traditional commerce:
 Consumer as passive targets …………………………………………………………………………………………………………
 Mass-marketing driven …………………………………………………………………………………………………………

 Sales-force driven …………………………………………………………………………………………………………

 Fixed prices …………………………………………………………………………………………………………

 Information asymmetry (Thông tin bất cân xứng) ………. …………………………………………………

 Eight Unique Features of
E-commerce Technology
…………………………………………………………………… 1. Ubiquity (Đặc biệt)
…………………………………………………………………… 2. Global reach
…………………………………………………………………… 3. Universal standards
…………………………………………………………………… 4. Information richness
…………………………………………………………………… 5. Interactivity
…………………………………………………………………… 6. Information density (Mật độ thông tin)
…………………………………………………………………… 7. Personalization/customization
…………………………………………………………………… 8. Social technology
 Types of E-commerce
 May be classified by market relationship or technology

 Business-to-Consumer (B2C)
 Business-to-Business (B2B)
 Consumer-to-Consumer (C2C)
 Mobile e-commerce (M-commerce)
 Social e-commerce
 Local e-commerce
 The Growth of B2C E-commerce in the U.S.
Figure 1.3, Page 19

SOURCE: Based on data from eMarketer, Inc., 2015c, 2015d; authors’ estimates.
 The Growth of B2B E-commerce in the U.S.
Figure 1.4, Page 20

SOURCE: Based on data from U.S. Census Bureau, 2015; authors’ estimates.
 The Internet
 Worldwide network of computer networks bu
on common standards
 Created in late 1960s
 Services include the Web, e-mail, file transfers
and many more
 Can measure growth by number of Internet ho
with domain names
 The Web
 Most popular Internet service
 Developed in early 1990s
 Provides access to Web pages
 HTML documents that may include text, graphic
animations, music, videos
 Web content has grown exponentially
 Google reports over 60 trillion unique URLs
 Deep Web may be 1000 times greater
 The Mobile Platform
 Most recent development in Internet
infrastructure
 Enables access to the Internet via
wireless networks or cell-phone service
 Mobile devices include
 Tablets
 Smartphones
 Ultra-lightweight laptops
 Insight on Technology: Class Discussion

Will Apps Make the Web Irrelevant?

 What are the advantages and disadvantages of
apps, compared with Web sites, for mobile
users?

 What are the benefits of apps for content

owners and creators?

 Will apps eventually make the Web irrelevant?

Why or why not?
 Origins and Growth of E-commerce
 Precursors:
 Baxter Healthcare
 Electronic Data Interchange (EDI)
 French Minitel (1980s videotex system)
 None had functionality of Internet

 1995: Beginning of e-commerce

 First sales of banner advertisements

 E-commerce fastest growing form of

commerce in United States
 E-commerce: A Brief History
 1995–2000: Invention
 Key concepts developed
 Limited bandwidth and media
 Euphoric (~excited) visions of
 Friction-free commerce
 Lowered search costs, disintermediation, price
transparency, elimination of unfair competitive
advantage
 First-mover advantages
 Network profits

 Dot-com crash (~broken) of 2000

 E-commerce: A Brief History (cont.)
 2001–2006: Consolidation
 Emphasis on business-driven approach
 Traditional large firms expand presence
 Start-up financing shrinks up (co lại)
 More complex products and services sold
 Growth of search engine advertising
 Business Web presences expand to include e-
mail, display and search advertising, and limited
community feedback features
 E-commerce: A Brief History (cont.)
 2007–Present: Reinvention
 Rapid growth of:
 Web 2.0, including online social networks
 Mobile platform
 Local commerce

 Entertainment content develops as source of revenues

 Transformation of marketing
 On-demand personal services businesses
Periods in the Development of E-commerce
Figure 1.8, Page 28
 Assessing E-commerce
Many early visions not fulfilled
 Friction-free commerce
 Perfect competition
 Intermediaries (between lenders and borrowers) have not disappeared
 Fast-follower advantages

Unanticipated surprises
 Mobile platform
 Social networks
 On-demand e-commerce
 Insight on Business: Class Discussion

Start-up Boot Camp

 Why do you think investors today are still interested
in investing in start-ups? (Tại sao bạn nghĩ rằng các nhà đầu tư 
ngày nay vẫn quan tâm đến việc đầu tư vào khởi nghiệp?)

 What are the benefits of investing in a company that

is a graduate of a Y Combinator boot camp?
 Is an incubator the best solution for start-ups to find
funding? Why or why not? (vườn ươm có phải là giải pháp tốt 
nhất cho các doanh nghiệp khởi nghiệp có thể tìm kiếm nguồn tài trợ?)
 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 (Sở 
hữu trí tuệ, quyền riêng tư cá nhân, chính sách phúc lợi công cộng)
The Internet
and the
Evolution
of Corporate
Computing
Figure 1.11, Page 41
 Insight on Society: Class Discussion

Facebook and the Age of Privacy

 Why are social network sites interested in collecting user
information? (Tại sao các trang mạng xã hội quan tâm đến việc thu thập thông tin người 
dùng?)
 What types of privacy invasion are described in the case? Which
is the most privacy-invading (xâm phạm quyền riêng tư) , and why?
 Is e-commerce any different than traditional markets with
respect to privacy? (Sự liên quan đến quyền riêng tư trong Thương mại điện tử có khác gì 
so với các thị trường truyền thống không?)
 Don’t merchants always want to know their customer? How do
you protect your privacy on the Web?
(Làm thế nào để bạn bảo vệ sự riêng tư của bạn trên Web?)
 Academic Disciplines
Concerned with E-commerce
 Technical approach  Behavioral approach
 Computer science  Information systems
 Management science  Economics
 Information systems  Marketing
 Management
 Finance/accounting
 Sociology