Topics Covered ================================================================ Computer and Computer Network Introduction to Internet, Web & Their Growth What is E-commerce? Define E-commerce and Describe How it Differs From E-business Why Study E-commerce? Unique Features of E-commerce Major Types and Dimensions of E-commerce

1. CS7330
ELECTRONIC COMMERCE
Mr. Dilawar
Lecturer,
Computer Science Faculty,
Bakhtar University
Kabul, Afghanistan.

2. Course Objectives
After successfully completing this course, you will be able to:
• Understand the three major driving forces behind E-commerce—
technology change, business development, and social issues—to
provide a coherent conceptual framework for understanding the field.

3. Course Outline
• PART I: INTRODUCTION TO E-commerce
• The Revolution is Just Beginning
• E-commerce Business Model
• PART II: TECHNOLOGY INFRASTRUCTURE FOR E-commerce
• E-commerce Infrastructure: The Internet, Web, and Mobile Platform
• Building an E-commerce Presence: Web Sites, Mobile Sites, and Apps
• E-commerce Security and Payment Systems

4. Course Outline
• Part III: BUSINESS CONCEPTS AND SOCAL SCIENCE
• E-commerce Marketing and Advertising Concepts
• Social, Mobile, and Local Marketing
• Ethical, Social, and Political Issues in E-commerce
• Part IV: ECOMMERCE IN ACTION
• Online Retail and Services
• Online Content and Media
• Social Networks, Auctions and Portals

5. Text Books to Follow
• E-commerce: Business Technology and Society Kenneth C. Laudon,
Caral G. Traver 10th Edition
• The Complete E-commerce Book Design, Build, & Maintain a
Successful Web Based Business. Reynolds 2nd Edition

6. The Revolution is Just Beginning
Chapter 1

7. Lecture Outline
• Computer and Computer Network
• Introduction to Internet, Web & Their Growth
• What is E-commerce?
• Define E-commerce and Describe How it Differs From E-business
• Why Study E-commerce?
• Unique Features of E-commerce
• Major Types and Dimensions of E-commerce

8. Computer and Computer Network
• An electronic machine that performs operations million time faster
than a human being can.
• Group of computers connected with each other to forms a network.
• Node is a connection point for transmitting data.
• Networks can interconnect with other networks to form global
network.

9. Computer and Computer Network
• Benefits of Network
• Facilitates resource sharing
• Provides reliability
• Provide a powerful medium across geographical boundary

10. Computer and Computer Network
• Geographical Distance:
• Local Area Network (LAN) – Small area, share a single server.
• Metropolitan Area Network (MAN) – A wider network that can bridge several
LAN’s.
• Wide Area Network (WAN) – A broader area covered means include several
MAN’s.

11. Introduction to Internet, Web & their Growth
• A network of networks that covers the entire globe – Internet.
• Connections across countries and continents made through dedicated
fast lines.
• A company may have one local network (LAN) in one city, which is
connected to the internet through a regional network.
• Well established in North America, Europe and certain Asian
countries.

12. Introduction to Internet, Web & their Growth
• A powerful service of internet that provides information – Web.
• Developed in 1990’s.
• Information on the web is stored in a file – webpage.
• Webpages are HTML documents that may include text, graphics,
animations, music, and videos.
• People uses web browsers to access webpages from web.
• Web content has grown rapidly.
• 30 trillion unique URLs and Google indexes at least 120 billion Web pages.

13. Introduction to Internet, Web & their Growth
• Web 2.0 developed in the late 2004 – Another evolution.
• It is the second generation of the WWW that is focused on the ability
for people to collaborate and share information online.
• It is basically a transition from static HTML webpages to more
dynamic web.
• Youtube, PhotoBucket, Flicker, Google, iPhone, MySpace, Facebook,
LinkedIn, Second Life, Wikipedia.

14. What is E-commerce?
• Use of internet, web and mobile apps for business transaction –
Electronic Commerce.
• More formally:
• Digitally enabled commercial transactions between and among organizations
and individuals.
• Digitally enabled transaction – all transaction mediated by digital technology.
• Commercial transactions – involve the exchange of value (e.g., money).

15. What is E-business?
• Digital enablement of transactions and processes within a firm,
involving information systems under firm’s control – Electronic
Business.
• Does not include commercial transactions involving an exchange of
value across organizational boundaries.
• E.g. a company online inventory control mechanism are a component
of E-business, but such internal processes do not generate revenue
for the firm from outside businesses or consumers as E-commerce.

16. E-commerce Versus E-business

17. Why Study E-commerce?
• E-commerce technology is different, more powerful than previous
technologies.
• E-commerce bringing fundamental changes to commerce.
• Marketplace – a physical place where you go for business transaction.
• Market space – marketplace extended beyond traditional boundaries.
Removed the temporal and geographic limitations.
• Information Asymmetry – Any difference in relevant market information
among parties in a transaction.

18. Unique Features of E-commerce

19. Unique Features of E-commerce
• Ubiquity
• Available just everywhere, at all time.
• Traditional commerce relates to the marketplace.
• Reduces transaction cost and cognitive energy.

20. Unique Features of E-commerce
• Global Reach
• It permits commercial transactions to cross cultural and national boundaries –
global audience.
• The traditional commerce involves local outlets.
• Television, radio, newspaper are powerful local network that can attract
national audience.

21. Unique Features of E-commerce
• Universal Standards
• The technological standards for conducting E-commerce.
• These standards are shared by all nations around the world.
• Lowers market entry costs and search costs for consumers.
• Users of the Internet, both businesses and individuals, also experience
network externalities.

22. Unique Features of E-commerce
• Information Richness
• Complexity and content of a message (Evans and Wurster, 1999).
• Traditional markets have great richness.
• Tradeoff/see-saw between richness and reach.
• Unlimited information of a product is available through video, audio, and text
messages at internet and social media.

23. Unique Features of E-commerce
• Interactivity
• The technology that allows for two-way communication between merchant
and consumer and among consumers.
• Traditional technologies cannot ask viewers or enter into conversation with them or
request for customer information.

24. Unique Features of E-commerce
• Information Density
• The total amount and quality of information available to all market
participants.
• Reduces information collection, storage, processing and communication costs.
• Greater increases the value, accuracy, and timeliness of information.
• Business consequences from the growth in information density
• Price transparency and Cost transparency.
• Gathering information of consumers – market segmentation to engage in price
discrimination.

25. Unique Features of E-commerce
• Personalization & Customization
• The targeting of marketing messages to specific individuals by adjusting the
message to a person’s name, interests, and past purchases – Personalization.
• Changing the delivered products or services based on a user’s preferences or
prior behavior – Customization.

26. Unique Features of E-commerce
• Social Technology
• User content generation and social networking.
• The E-commerce technologies has evolved users to create and generate
contents in the form of web, Facebook pages, text, video, music, and photos
with world wide communities.

27. Unique Features of E-commerce

28. Unique Features of E-commerce

29. Types of E-commerce

30. Types of E-commerce
• Business – to – Consumer (B2C)
• Online businesses selling to individual
consumers such as amazon.
• $419 billion in 2013 in the US.
• Portals, online retailers, content
providers, transaction brokers, market
creators, service providers, and
community providers.

31. Types of E-commerce
• Business – to – Business (B2B)
• Online businesses selling to other
businesses.
• $4.7 trillion in 2013 in the US.
• Net marketplaces, which include e-
distributors, e-procurement
companies, exchanges and industry
consortia, and private industrial
networks.

32. Types of E-commerce
• Consumer – to – Consumer (C2C)
• Consumers selling to consumers such as eBay.
• $75 billion in 2013 for eBay.
• Consumer place product for auction or sale.
• Relies on market maker.

33. Types of E-commerce
• Social E-commerce
• E-commerce enabled by social networks and online social relationships.
• $5 billion in 2013 in the US.
• M-Commerce
• Use of mobile devices to enable online transactions.
• $40 billion in 2013 in the US.
• Local E-commerce
• E-commerce that is focused on engaging the consumer based on his or her current
geographic location.
• $4.4 billion in 2013 in the US.

34. Types of E-commerce

35. Dimensions of Electronic Commerce
• Traditional commerce
• Buy books at university bookstore.
• Partial E-commerce
• Order physical book from Amazon.com
• Pure E-commerce
• Order and download book from Amazon.com

36. Summery
• Computer and Computer Network
• Introduction to Internet, Web & Their Growth
• What is E-commerce?
• Define E-commerce and Describe How it Differs From E-business
• Why Study E-commerce?
• Unique Features of E-commerce
• Major Types and Dimensions of E-commerce

37. Thank You
For your Patience