Lecture 1

eHospitalityAsia, InceHospitalityAsia, Inc.


About the Class

• About Myself

• Syllabus

• LEARN & SHARE

• Don’t Bring to Class, Please – ego

• Administration of Class

• Get to know you and get to know me


Course Outline

• What is Electronic Commerce (EC)?– Now and Then– Driving Forces– What is?

• Why EC?– In the Eyes of Consumers– In the Eyes of Businesses– In the Eyes of Governments


Outline

• How to EC?– Models– Organization Infrastructure– Information & Internet Technology

• Social and Ethnical Considerations– Legally Speaking– Governments

• Future– Where is IT Heading?– What Others Are Saying?


• Peanuts• Garfield• Batman• Superman

Doing Business is Simple

BackOffice

FrontOffice


• Peanuts• Garfield• Batman• Superman

Doing e-Business is ??

BackOffice

FrontOffice

Mom-&-Pop Shop? Established Chain, e.g., B&N


Electronic Commerce

Everybody is talking about it: SCMP/Technology Post: November 23, 1999 (Tuesday)

• e-Commerce revenues– 2,182 millions : 1999– 5,543 : 2000; 87,467 : 2004 (International Data Corp.)

• “Hong Kong-based Champion Technology is developing an electronic mall it hopes will attract retail tenants and evolve into one of the region’s main Web sites for cyber-shopping.”

• “…e-Business is forming new business dynamics. The structure of companies is becoming more virtual. It’s either you go e-business or you go out of business.” Raymond Lane, president of Oracle.


Electronic Commerce

• “This is no longer a push economy where we send out the salespeople to push ideas to customers. It’s a pull economy where we allow our customers to interface with the supply chain, where the customer is king, where our business is totally transparenttransparent to the customer.” Lane.

• “Don’t you get it? Internet access device is a network computer. Cell phone with a browser is a network computer. They are the same thing. They are all appliances to access the network, windows to the Internet. We saw it five years ago.” Larry Ellison, CEO, Oracle.

• “The world is moving towards a broadband and networked environment. Digital content is what will drvie people to the network, and new digital hardware will enable consumers to manipulate it.” Nobuyuki Idei, President and CEO, Sony


Comdex, Las Vegas

Page 6:E-commerce merchants need to improve their operations and especially their

relationships with customersrelationships with customers, …

E-commerce roadblocks include lack of high-speed connections and compelling on-line applications, security concerns and bad Internet experiences…John Chambers, president and CEO, Cisco

Last year, many commerce sites were not equipped to handle the volume of traffice and exxperienced failures, which left orders unfilled and customers upset. During the holiday season, on-line merchants are expected to be plagued with orders for out-of-stock items, unfilled orders and ignored customer inquiries. In addition, on-line merchants need to simplify the simplify the shopping experienceshopping experience and provide an entertaining and pleasant environmentan entertaining and pleasant environment, just like real-world storeslike real-world stores.


What is Your Opinion?


Infrastructure Comparison(page 33, Treese & Stewart)

• First water-independent transportation infrastructure

• Passenger traffice; military

• Width of tracks (guage)

• Railway police hired to manage new crimes

• Steel production, accounting, logistics

• Industrial age (key enabler: steam engine)

• First global public information infrastrcuture

• Military and civil defense; research

• Network and communications protocols (TCP/IP)

• Security protocols and stands

• Software, networking, fiber optics

• Information age (key enabler: computer)

New Infrastructure >>

Original Purpose >>

Importance of Standard >>

New Security Challenges >>

Source of innovation >>

Accelerator >


Historic View

Before the Railroad• Travel between New York

and Boston in four days• Transportation depends on weather

and location of waterways

• Dispersed work force (92% of population in 1830 is rural)

• 8,000 U.S. time zones

• Vacation (if at all) near home• Transport a ton of goods for 5-15

cents per mile (wagon or steamboat in 1825)

After the Railroad• Travel between New York

and Boston in less than one day

• Transportation depends on the ability to lay rails

• Concentrated work force (50% population in urban)

• 4 U.S. Time Zone

• Vacation away from home• Transport a ton of goods for 1 cent

per mile (by rail in 1884)


What About Now

With Internet/EC• No need to travel between

any two cities; view them• Transportation depends on traffic

and your line speed• Dispersed work force

(telecommuter)• One Time Zone (mine)• Vacation in home or never

take one• Transport a ton of goods for much

more than one cents because of inflation and other factors

After the Railroad• Travel between New Yock

and Boston in less than one day

• Transportation depends on the ability to lay rails

• Concentrated work force (50% population in urban)

• 4 U.S. Time Zone

• Vacation away from home• Transport a ton of goods for 1 cent

per mile (by rail in 1884)


1972-1974


1975-1976


1977-1978


1978-1979


1980-1981


1982-1983


1983-1984


1984-1985


1985-1987


1988-1990


1990-1993(Source: IEEE Computer)


1993-1996(Source: IEEE Computer)


1997-1999

• e-Commerce

• Servlets

• XML

• Merced

• What else?


Traditional Businesses

BookStores

Supermarkets

ComputerStores

ClothingStores

Banks

DrugStores


E-Business Design• Not like introduction of a new product or a new

service; infrastructure is already there• Many challenges

– One new e-door: from nothing to something– Two doors: One existing (tradtional) door + one new e-

door• Do these two doors lead to the same room (ideal), different

rooms (tight interface), or the existing traditional business room (create chaos)

– One Big e-door: with the existing door goes to the background and slowly migrate into the e-business side (www.egghead.com)

http://www.egghead.com/


E-Business Strategy Creation

• Top down, analytic planning– Problems?

• Bottom-up, “just do it” tactical planning

Documents

Lecture 1