1 The trade cycle Conducting a commercial transaction involves the following steps: – Pre-Sale: Search - finding a supplier Negotiate – agreeing the terms of trade – Execution: Order Delivery – Settlement: Invoice Payment – After-sales, e.g. warrantee and service

Learning Objectives  Understand the successes and failures of E-Commerce I  Identify several factors that will define the E-commerce II era  Describe the major themes underlying the study of e-commerce  Identify the major academic disciplines contributing to e-commerce research

Amazon.com: Before and After  Most well-known e-commerce company  Conceived by Jeff Bezos in 1994  Opened in July 1995  Four compelling reasons to shop  Selection (1.1 million titles)  Convenience (anytime, anywhere)  Price (high discounts on bestsellers)  Service (automated order confirmation, tracking, and shipping information)

Amazon.com: Before and After ($1.4 Billion)$2.7 Billion2000 ($720 Million)$1.6 Billion1999 ($125 Million)$610 Million1998 ($31 Million)$148 Million1997 ($6.24 Million)$15.6 Million1996 EarningsRevenues Revenues and Earnings

E-commerce vs. E-business E-commerce involves  Digitally enabled commercial transactions between organizations and individuals.  Digitally enabled transactions include all transactions mediated by digital technology  Commercial transactions involve the exchange of value across organizational or individual boundaries in return for products or services

E-commerce vs. E-business E-business involves  Digital enablement of transactions and processes within a firm, involving information systems under the control of the firm  E-business does not involve commercial transactions across organizational boundaries where value is exchanged

The Difference Between E- commerce and E-Business Page 8, Figure 1.1