1. Introduction to E-Commerce
ELC 200
Introduction to E-Commerce
Copyright, Tony Gauvin, UMFK, 2011

2. Introduction Class roll call Instructor Introduction
Instructor’s Educational Philosophy
BlackBoard accounts
Syllabus review
General Information about class
Classroom Contract Discussion
The Revolution Is Just Beginning

3. Instructor Tony Gauvin Associate Professor Of E-Commerce
216 Nadeau Hall
(207) or Extension 7519
BlackBoard
Tony's Resume
WebSite (

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 Check BlackBoard Often Use textbook’s website
Read Material BEFORE the class discussion
Summary & Key Concepts at EOC
Projects and Questions in EOC
Use textbook’s website
Check BlackBoard Often
Use the additional resources identified in syllabus & in BlackBoard
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

6. ELC 200 Specifics Blackboard used to augment course
Two Desired outcomes
E-Commerce’s impact on Business, Global Economies and Society
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”

7. Blackboard https://www.courses.maine.edu Login
name and password
Help with Blackboard is available from Blake Library staff
All quizzes and assignments will be administered from BlackBoard
New version of BlackBoard

8. Computer Accounts Computer login MSDN Academic Alliance Access Cards
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. Syllabus review Requirements Grading Course outline Special Notes
Subject to change

10. Contract on Classroom Behavior
A contract for students and Professor on what is expected and encouraged behavior in the classroom
Created through a collaborative process

11. Premise to Contract
The Business Management, eCommerce and Computer Application programs are preparing students for professional positions where professional behaviors will be expected of them. These behaviors will be reinforced by requiring the students to adopt the rules agreed to in this contract. Adherence to the rules in this contract will be part of the student’s grade in this class.
Learning is a group activity, and the behavior of each person in class in some way or the other affects the learning outcomes of others. If we keep these thoughts and the following rules in mind, the classroom experience will be a better one for everyone involved.
More serious breeches of student behavior in the classroom will be dealt with through the UMS Student Conduct Code procedures outlined in the conduct code booklet which can be found at the following link.

12. My thoughts
Most students exhibit appropriate behavior in class, but there is some disagreement what “appropriate” behavior is. At times, a consumer culture creeps into the classroom, with students sometimes perceiving faculty as employees hired to serve them. This is not the appropriate comparison – a professor is not here to give you what you want, but rather to help you obtain what you need. A professor is more like a physician. Just as any doctor who tells you “everything is fine” so that you’ll be happy (when everything isn’t fine) should be sued for malpractice, any faculty member who gives you an “A” regardless of your performance or allows anything to happen primarily because that is what will make you happy is doing you and other students a disservice.

13. Suggested rules (Professor)
This professor
Will be knowledgeable and current on the topics
Will be a role model of a professional in the discipline
Will provide prompt feedback on assignments and quizzes (within one week)
Will not cancel classes without a good reason and will inform students promptly of his absence
Will make time available outside of classes for student professor meetings
Will be fair and impartial in student assessments
Will follow published UMFK policy
Will be sensitive to issues of gender, diversity, disability and student privacy
Will “stick” to the syllabus and will not make any unnecessary changes to the class that adversely effects student learning outcomes
???

14. Copyright 2005 Prentice Hall
Bribe List (2011)
1947 HD FLH “knucklehead”
2011 Audi R8
1950 Buick RoadMaster
Convertible or Sedanette
1957 Buick Special
1972 SS 402 El Camino
1970 Oldsmobile 442 (W-30 option)
1965 Shelby Cobra S/C 427
1995 Ferrari 348 Spyder
2006 Dodge Viper SRT
Copyright 2005 Prentice Hall

15. E-commerce: business. technology. society.
seventh edition
Kenneth C. Laudon
Carol Guercio Traver
Copyright © 2011 Pearson Education, Inc.

16. Chapter 1: The Revolution Is Just Beginning
Copyright © 2007 Pearson Education, Inc.
Copyright © 2011 Pearson Education, Inc.

17. Objectives
Define e-commerce and describe how it differs from e-business.
Identify and describe the unique features of e-commerce technology and discuss their business significance.
Recognize and describe Web 2.0 applications.
Describe the major types of e-commerce.
Discuss the origins and growth of e-commerce.
Understand the evolution of e-commerce from its early years to today.
Identify the factors that will define the future of e-commerce.
Describe the major themes underlying the study of e-commerce.
Identify the major academic disciplines contributing to e-commerce.

18. Facebook: The New Face of E-Commerce? Class Discussion
Do you use Facebook, and if so, how often? What has the experience been like?
Have you purchased anything based on an advertisement on Facebook or by using a link provided by a friend?
Are you concerned about the privacy of the information you have posted on Facebook?
Copyright © 2011 Pearson Education, Inc.

19. E-commerce Trends 2010-2011 Social networking continues to grow
Social e-commerce platform emerges
Online consumer sales return to growth
Mobile computing begins to rival PC
Explosive growth in online video viewing
Continued privacy and security concerns
Copyright © 2011 Pearson Education, Inc.

20. US Census Bereau 2009 e-Stats report
Retail E-Commerce (Non-Travel) Growth Rates Excludes Auctions, Autos and Large Corporate Purchases Total U.S. – Home & Work Locations Source: comScore, Inc.
Quarter
E-Commerce Spending ($ Millions)
Y/Y Percent Change
Q1 2007
$27,970
17%
Q2 2007
$27,176
23%
Q3 2007
$28,441
Q4 2007
$39,132
19%
Q1 2008
$31,178
11%
Q2 2008
$30,581
13%
Q3 2008
$30,274 6%
Q4 2008
$38,071
-3%
Q1 2009
$31,031 0%
Q2 2009
$30,169
-1%
Q3 2009
$29,552
-2%
Q4 2009
$39,045 3%
Q1 2010
$33,984
10%
Q2 2010
$32,942 9%
Q3 2010
$32,133
Q4 2010
$43,432
Q1 2011
$38,002
12%
Q2 2011
$37,501
14%
US Census Bereau 2009 e-Stats report

21. First 16 years of e-commerce
The First 30 Seconds
First 16 years of e-commerce
Just the beginning
Rapid growth and change
Technologies continue to evolve at exponential rates
Disruptive business change
New opportunities
Copyright © 2011 Pearson Education, Inc.

22. Use of Internet and Web to transact business
What is E-commerce?
Use of Internet and Web to transact business
More formally:
Digitally enabled commercial transactions between and among organizations and individuals
Copyright © 2011 Pearson Education, Inc.

23. E-commerce vs. 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
Copyright © 2011 Pearson Education, Inc.

24. 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
Copyright © 2011 Pearson Education, Inc.

25. Unique Features of E-commerce Technology
Ubiquity
Global reach
Universal standards
Information richness
Interactivity
Information density
Personalization/customization
Social technology
Copyright © 2011 Pearson Education, Inc.

26. Technologies that allow users to:
Web 2.0
Technologies that allow users to:
Create and share content, preferences, bookmarks, and online personas
Participate in virtual lives
Build online communities
E.g. Twitter, YouTube, Facebook, Second Life, Wikipedia, Digg
Copyright © 2011 Pearson Education, Inc.

27. Classified by market relationship
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)
Copyright © 2011 Pearson Education, Inc.

28. The Internet
Worldwide network of computer networks built on common standards
Created in late 1960s
Services include the Web, , file transfers, etc.
Can measure growth by looking at number of Internet hosts with domain names
Copyright © 2011 Pearson Education, Inc.

29. The Growth of the Internet, Measured by Number of Internet Hosts with Domain Names Figure 1.3, Page 23
SOURCE: Internet Systems Consortium, Inc. , 2010.
Copyright © 2011 Pearson Education, Inc.

30. Most popular Internet service Developed in early 1990s
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
Google indexes between 75 – 100 billion pages
Copyright © 2011 Pearson Education, Inc.

31. What is the “small world” theory of the Web?
Insight on Technology: Spider Webs, Bow Ties, Scale-Free Networks, and the Deep Web Class Discussion
What is the “small world” theory of the Web?
What is the significance of the “bow-tie” form of the Web?
Why does Barabasi call the Web a “scale-free network” with “very connected super nodes”?
Copyright © 2011 Pearson Education, Inc.

32. Origins & Growth of E-commerce
Precursors:
Baxter Healthcare
Electronic Data Interchange (EDI)
French Minitel (1980s videotex system)
None had functionality of Internet
1995: Beginning of e-commerce
First sales of banner advertisements
E-commerce fastest growing form of commerce in United States
Copyright © 2011 Pearson Education, Inc.

33. The Growth of B2C E-commerce Figure 1.4, Page 25
SOURCES: Based on data from eMarketer, Inc., 2010; authors’ estimates.
Copyright © 2011 Pearson Education, Inc.

34. The Growth of B2B E-commerce Figure 1.5, Page 28
SOURCES: Based on data from U.S. Census Bureau, 2010; authors’ estimates.
Copyright © 2011 Pearson Education, Inc.

35. Technology and E-commerce in Perspective
The Internet and Web: Just two of a long list of technologies that have greatly changed commerce
Automobiles
Radio
E-commerce growth will eventually cap as it confronts its own fundamental limitations.
Copyright © 2011 Pearson Education, Inc.

36. 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
Copyright © 2011 Pearson Education, Inc.

37. E-commerce: A Brief History
: Innovation
Key concepts developed
Dot-coms; heavy venture capital investment
: Consolidation
Emphasis on business-driven approach
2006-Present: Reinvention
Extension of technologies
New models based on user-generated content, social networks, services
Copyright © 2011 Pearson Education, Inc.

38. 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
Copyright © 2011 Pearson Education, Inc.

39. Insight on Business “Noodlenomics” Guides Internet Investment in 2010 Class Discussion
What explains the rapid growth in private investment in e-commerce firms in the period 1998–2000? Was this investment irrational?
What was the effect of the big bust of March 2000 on e- commerce investment?
What is the value to investors of a company such as YouTube which has yet to show profitability?
Why do you think investors today would be interested in investing in or purchasing e-commerce companies? Would you invest in an e-commerce company today?
Copyright © 2011 Pearson Education, Inc.

40. Many early visions not fulfilled
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
Copyright © 2011 Pearson Education, Inc.

41. 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.
Regulatory activity worldwide will grow.
Cost of energy will have an influence.
Copyright © 2011 Pearson Education, Inc.

42. 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
Copyright © 2011 Pearson Education, Inc.

43. The Internet and the Evolution of Corporate Computing Figure 1
The Internet and the Evolution of Corporate Computing Figure 1.9, Page 44
Copyright © 2011 Pearson Education, Inc.

44. What techniques of privacy invasion are described in the case?
Insight on Society Who Really Cares About Online Privacy? Class Discussion
What techniques of privacy invasion are described in the case?
Which of these techniques is the most privacy- invading? Why?
Is e-commerce any different than traditional markets with respect to privacy? Don’t merchants always want to know their customer?
How do you protect your privacy on the Web?
Copyright © 2011 Pearson Education, Inc.

45. Academic Disciplines Concerned with E-commerce
Technical approach
Computer science
Management science
Information systems
Behavioral approach
Information systems
Economics
Marketing
Management
Finance/accounting
Sociology
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46. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
Copyright © 2011 Pearson Education, Inc.  
Publishing as Prentice Hall
Copyright © 2011 Pearson Education, Inc.