1 ELC 200 Introduction to E-Commerce Copyright, Tony Gauvin, UMFK, 2006

2 Introduction Class roll call Instructor Introduction Instructor’s Educational Philosophy Syllabus review Classroom Contract General Information about class WebCT accounts The Changing Face of eCommerce

3 Instructor Tony Gauvin  Assistant Professor Of E-Commerce  216 Nadeau Hall  (207) or Extension 7519   WebCT  Tony's Resume Tony's Resume

4 Instructional Philosophy Out-Come based education Would rather discuss than lecture  Requires student preparation Hate grading assignments  Especially LATE assignments Use class interaction, assignments, quizzes and projects to determine if outcomes are met.

5 ELC 200 Survival Primer Read Material BEFORE the class discussion  Summary & Key Terms at EOC  Test Your Understanding and Discussion Questions in EOC  Web Exercises Check WebCT Often Use the additional resources identified in syllabus & in WebCT ASK questions about what you didn’t understand in readings DON’T do homework at last minute. REVEIW lectures and notes Seek HELP if you are having difficulties OFFER feedback and suggestions to the instructor in a constructive manner Student Study Groups are STONGLY Encouraged

6 Bribe List (2007) 2007 BMW M HD FLH “knucklehead” 2007 Ford Shelby Cobra GT Audi R8 Redneck Engineering Chopper  “curves frame” Waltz HardCore Chopper 1950 Buick RoadMaster Convertible

7 ELC 200 Specifics WebCT used to augment course Two Desired outcomes  E-Commerce’s impact on Business & Global Economies  Entrepreneurship Students have the ability to create the framework for a viable e- commerce initiative Managerial Perspectives instead of technical  Technical Portions will be covered in COS XXX classes  Understanding “Why” instead of “How”

8 Computer Accounts Computer login  Sys admin Pete Cyr (x7547) or Art Drolet (x7809)  Applications MSDN Academic Alliance  Free Stuff  See Dr. Ray Albert Access Cards  $10 deposit  See Lisa Fournier

9 WebCT Login  First name. Last Name  John Doe  John.Doe  Initial password is webct Help with WebCT available from Blake Library staff All quizzes and assignments will be administered from WebCT

10 Syllabus review Requirements Grading Course outline Special Notes Subject to change

11 UMFK’s Definition of E-Commerce An attempt to achieve transactional efficiency in all aspects of the design, production, marketing and sales of products or services for existing and developing marketplaces through the utilization of current and emerging electronic technologies E-Commerce IS NOT  E-Business  DOT-COMS (or Dot-Bombs)  E-Marketing  Easy or Cheap  NEW There are other definitions..The text book’s author has another less inclusive definition  Electronic commerce is the process of buying, selling, or exchanging products, services, and information via computer networks.

12 E-Commerce Degree Program Combination of Technical Skills and Management know-how Prepares students for Leadership Roles  Cadre (team) building  Broad-based technical underpinnings with one or two specialist areas  Understanding of implications of E-Commerce within an organizational context and within broader social issues

13 Management Capabilities Financial Ethical Marketing Human Resources Leadership Project planning and management Operations management

14 Technical Skills Programming  Procedural & Scripting  Object Oriented  Markup Languages System analysis  Needs assessment  System design and Specification  Project Management Networks  Design  Administration  Security Databases  Design  Transaction programming  Administration

15 The Changing Face of eCommerce Tony Gauvin Assistant Professor of eCommerce University of Maine at Fort Kent

16 Overview The Beginnings 1 st Generation of eCommerce  Dot Coms 2 nd Generation of eCommerce  Main Stream eBusiness The Future of eCommerce

17 The beginnings of eCommerce The Real Beginning  EFT, electronic finds transfer (1970’s)  EDI, electronic data Interchange (1980’s) The Visible Beginning  April 1995, the Internet moved from the Federal Sector to the commercial sector when NSF decommissioned NSFNET and moved assets to vBNS (very-High-Speed Backbone Network Service) which allowed for ISPs (Internet Service Providers) to develop.  February 1996, The Telecommunications Act Deregulation (move to industry self-regulation)

18 1 st Generation eCommerce ( ) Explosive Growth … mostly in “Dot Coms”  All about taking ideas to market FAST  The funding required for growth was investors not consumers  The goal was IPO  Talent left the major firms and joined start-ups Traded job security for the instant millionaire promise of stock options

19 Millions Raised by Dot Coms Business Services Content Retail Infrastructu re ISPs Software Totals Data Source: PriceWaterhouse Coopers Moneytree Survey 2001

20 Reality Check (from Thomson Financial)  1% of IPOs traded below $1 per share one year after going public Between  12% of IPOs traded below $1 per share on April 1, 2001  Some of these IPOs with their stock highs IVillage.com $ Ask Jeeves.com $ NetZero $40.00 Drkoop.com $45.75

21 The End of the Beginning Only 10% of dot coms formed since 1995 still survive  An even smaller percentage generate a profit Some projections ( E-Commerce, Lauden and Traver, Addison Welsey,2002 )  B2C revenues in 2001 are growing at 45% to 55% per year  By 2005 eCommerce revenue should grow to $647 billion (about 20% of total retail)

22 Estimated Quarterly U.S. Retail E-commerce Sales as a Percent of Total Quarterly Retail Sales: 4th Quarter 1999–3rd Quarter 2006 Percent of Total Source:

23 Table 4. Estimated Quarterly U.S. Retail Sales (Not Adjusted 1 ): Total and E-commerce 2 (Estimates are based on data from the Monthly Retail Trade Survey and administrative records.) Source:

24 The 2 nd Generation eCommerce become eBusiness 5 major components all geared to any firm’s desire to gain competitive advantage in their marketplace  eCommerce buying & selling using the Internet  Business Intelligence gathering and processing of information internal and external to firm in order gain strategic advantage  Customer relationship management solidify and expand relationships across all stakeholders  Supply Chain Management unified operations for transferring of goods from suppliers to manufactures and ultimately to the consumers  Enterprise Resource Management the digital streamlining of an company’s processes

25 2 nd Generation Business Involvement with eCommerce Source: adapted from

26 eCommerce Models B2B  Business to Business B2C  Business to Consumer C2C  Consumer to Consumer G2C  Government to Constituent C2G  Constituent to Government G2B  Government to Business B2G  Business to Government G2G  Government to Government

27 1 st and 2 nd Generations Compared 1 st Generation  Technology-driven  Revenue growth emphasis  Venture capital financing  Ungoverned  Entrepreneurial  Disintermediation  Perfect Markets  Pure Online strategies  First Mover advantage 2 nd Generation  Business-driven  Earnings and profits emphasis  Traditional financing  Stronger regulation and governance  Larger traditional firms  Strengthening intermediaries  Imperfect markets, brands, and network effects  Mixed “clicks and Bricks” Strategies  Strategic follower strength

28 An eCommerce Timeline SOURCE: the Gartner Group High Visibility

29 The future of eCommerce Continued integration of technology into business and organizational entities until at some point there will be no distinct line of demarcation  Business become eCommerce and eCommerce becomes business  Business continues to be the driver of technology

30 The future of eCommerce The creation of a discontinuous marketplace economy in which firms will compete in one of only two possible marketplaces  Commodity based products and services Major differentiation between competing products is cost eCommerce adds to increased efficiency and effectiveness  Boutiques Major differentiation between competing products is perceived quality or higher service eCommerce adds increased distribution possibilities and increased marketing potential

31 Future of eCommerce 7 features of eCommerce (E-Commerce: The Revolution is Just Beginning, Lauden and Traver, 2002) Ubiquity Global Reach Universal Standards Information richness Interactivity Information density Personalization/Customization

32 Questions?? Tony Gauvin Assistant Professor of eCommerce University of Maine at Fort Kent 23 University Drive Fort Kent, me (207)

33 For Next Class Get Familiar with all the resources identified in the syllabus and WebCT Read Chapter 1 Start thinking about an eCommerce business idea  Something to sell over the internet Existing or new product or service  A way to use the Internet to enhance a traditional brick and mortar business model