Upload
phamdung
View
220
Download
2
Embed Size (px)
Citation preview
Facebook and MySpace: It’s All About You
How many people use Facebook or MySpace?
In 2009 , Facebook had around 92 million unique U. S. visitors, while MySpace had about 64 million.
How is Facebook different from MySpace?
Have you used Facebook or MySpace, and if so, how often? What was your experience?
Why do you think Facebook has overtaken MySpace as the most popular social networking site?
Slide 1-6
The Internet
Worldwide network of computer networks built on common standards
Created in late 1960s
Services include the Web, e-mail, file transfers, etc.
Can measure growth by looking at number of Internet hosts with domain names
Slide 1-8
The Growth of the Internet, Measured by Number of Internet Hosts with Domain Names
Slide 1-9
SOURCE: Internet Systems Consortium,
Inc., 2009.
The Web
Most popular Internet service
Developed in early 1990s
Provides access to Web pages
HTML documents that may include text, graphics, animations, music, videos
Web content has grown exponentially
2 billion Web pages in 2000
At least 40–50 billion pages today Slide 1-10
What is E-commerce?
Use of Internet and Web to transact business
More formally:
Digitally enabled commercial transactions between and among organizations and individuals (B2C and B2B)
Slide 1-11
E-commerce vs. E-business
E-business:
Digital enablement of transactions and processes within a firm, involving information systems under firm’s control
Does not include commercial transactions involving an exchange of value across organizational boundaries
Slide 1-12
E-commerce Trends 2009–2010
New business models based on social technologies, consumer-generated content, and services
2009 a flat year, but growth expected to resume in 2010
Broadband and wireless access continue to grow
Mobile e-commerce begins to take off
Web 2.0 has revolutionized e-commerce
Traditional media losing subscribers
Slide 1-14
Why Study E-commerce?
E-commerce technology is different, more powerful than previous technologies
E-commerce bringing fundamental changes to commerce
Traditional commerce:
Passive consumer
Sales-force driven
Fixed prices
Information asymmetry
You can virtually run your business from any part of the world
Slide 1-15
What is Ecommerce all about Facebook passes Google as most visited site of 2010
Will Cloud computing establish itself?
Monetizing Digital Content e.g iTunes
M-commerce
Semantic Search
Role of Video - YouTube
E-commerce Security Challenge
Social Networking – Egyptian Revolution
Web 2.0/3.0/4.0
O2O - Groupon
Push Shopping
Virtual Goods and Currency
Slide 1-17
Unique Features of E-commerce Technology
Is ubiquitous (available everywhere, all the time)
Offers global reach (across cultural/national boundaries)
Operates according to universal standards (lowers market entry for merchants and search costs for consumers)
Provides information richness (more powerful selling environment)
Is interactive (can simulate face-to-face experience, but on global scale)
Increases information density (amount and quality of information available to all market participants)
Permits personalization/customization
Social technology
Slide 1-18
Web 2.0
Applications, technologies that allow users to: Create and share content, preferences, bookmarks, and
online personas
Participate in virtual lives
Build online communities
Examples YouTube, Photobucket, Flickr, Google, iPhone
MySpace, Facebook, LinkedIn
Second Life
Wikipedia
Slide 1-19
Types of E-commerce
Classified by market relationship
Business-to-Consumer (B2C)
Business-to-Business (B2B)
Consumer-to-Consumer (C2C)
Classified by technology used
Peer-to-Peer (P2P)
Mobile commerce (M-commerce)
Slide 1-20
B2C
Involves online businesses attempting to reach individual consumers
Many types of business models within this category including online retailers, content providers, portals, transaction brokers, service providers, market creators and community providers
E.g. BarnesandNoble.com, 1800Flowers.com, Godiva.com, REI.com
Slide 1-21
The Growth of B2C E-commerce
Slide 1-22
SOURCES: eMarketer, Inc., 2009a; U.S. Census Bureau, 2009b; authors’ estimates.
B2B
Involves businesses focusing on selling to other businesses
Two primary business models within B2B: Net marketplaces (includes e-distributors, e-procurement
companies, exchanges and industry consortia)
Private industrial networks (includes single firm networks and industry-wide networks)
E.g.Direct email marketing company(mail chimp), online CRM application (salesforce.com), grainger.com, techdata.com, alibaba.com, etc
Slide 1-23
The Growth of B2B E-commerce Figure 1.5, Page 28
Slide 1-24
SOURCES: U.S. Census Bureau, 2009a; authors’ estimates.
C2C
Provides a way for consumers to sell to each other, with the help of an online market maker
eBay, half.com, craigslist, etc
Slide 1-25
P2P
Uses peer-to-peer technology, which enables Internet users to share files and computer resources without having to go through a central Web server
E.g: Torrents, limewire, etc
Slide 1-26
M-commerce
Use of wireless digital devices such as cell phones and handheld devices to enable transactions on the Web
E.g Mobile banking, Mobile ticketing, etc
Slide 1-27
Potential Limitations on the Growth of B2C E-commerce
Expensive technology
Sophisticated skill set
Persistent cultural attraction of physical markets and traditional shopping experiences
Persistent global inequality limiting access to telephones and computers
Saturation and ceiling effects Slide 1-28
Origins & Growth of E-commerce
Precursors to e-commerce include
Baxter Healthcare (in 1970s, used telephone-based modems to reorder supplies; in 1980s, became a PC-based remote order entry system)
Electronic Data Interchange (EDI) standards developed in 1980s; permitted firms to exchange commercial documents and conduct digital commercial transactions across private networks
French Minitel (1980s videotext system; still in use today)
None of these precursor system had functionality of Internet
Slide 1-29
E-commerce: A Brief History
1995–2000: Innovation Key concepts developed
Dot-coms; heavy venture capital investment
First Banner Ad in 1994
2001–2006: Consolidation Emphasis on business-driven approach
2006–Present: Reinvention Extension of technologies
New models based on user-generated content, social networking, services Slide 1-30
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
Slide 1-31
Ecommerce I & II Rollercoaster Ride
E-commerce I: A period of explosive growth and extraordinary innovation; key concepts developed and explored
Begins in 1995, ends in March 2000 when stock market valuations for dot.com companies begin to collapse
Thousands of dot.com companies formed, backed by over $125 billion in financial capital
E-commerce II: Characterized by a reassessment of e-commerce companies and their value
Begins in January 2001; ongoing
Slide 1-32
Assessing E-commerce
Many early visions not fulfilled
Friction-free commerce
Consumers less price sensitive
Considerable price dispersion
Perfect competition
Information asymmetries persist
Disintermediation
First mover advantage
Fast-followers often overtake first movers
Slide 1-33
Predictions for the Future
Technology will propagate through all commercial activity
Prices 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
Slide 1-34
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
Slide 1-35
Academic Disciplines Concerned with E-commerce
Technical approach Computer science
Management science
Information systems
Behavioral approach Information systems
Economics
Marketing
Management
Finance/accounting
Sociology
Slide 1-37
Case Questions
1. How can P2P file-sharing networks make money if they do not sell music?
2. Into which category or categories of e-commerce do P2P file-sharing networks fall?
3. What social issues are raised by P2P file-sharing protocols and programs such as BitTorrent? Is the record industry justified in attempting to shut them down? Why or why not?
4. Will the Supreme Court’s decision inhibit the development of P2P technology or the Internet itself, as proponents of P2P services have claimed?
5. Why do people older than 21 tend to use legitimate downloading sites whereas younger people tend to use illegal sites?
6. What difference would it make if the existing music labels disappeared for lack of revenue? What legitimate function do the music labels perform in the creation and distribution of original music
Slide 1-38