1. Copyright © 2002 Pearson Education, Inc. Slide 1-1

2. Copyright © 2002 Pearson Education, Inc. Slide 1-2 CHAPTER 1 Created by, David Zolzer, Northwestern State University—Louisiana The Revolution Is Just Beginning

3. Copyright © 2002 Pearson Education, Inc. Slide 1-3 PERTEMUAN 1

4. Copyright © 2002 Pearson Education, Inc. Slide 1-4 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)

5. Copyright © 2002 Pearson Education, Inc. Slide 1-5 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

6. Copyright © 2002 Pearson Education, Inc. Slide 1-6 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

7. Copyright © 2002 Pearson Education, Inc. Slide 1-7 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

8. Copyright © 2002 Pearson Education, Inc. Slide 1-8 The Difference Between E- Commerce and E-Business Page 8, Figure 1.1

9. Copyright © 2002 Pearson Education, Inc. Slide 1-9 Seven Unique Features of E-commerce Technology and Their Business Significance Page 9, Table 1.1

10. Copyright © 2002 Pearson Education, Inc. Slide 1-10 Page 11, Figure 1.2 Changing Trade-Off Between Richness and Reach

11. Copyright © 2002 Pearson Education, Inc. Slide 1-11 Major Types of E-Commerce  Market relationships  Business-to-Consumers (B2C)  Business-to-Business (B2B)  Consumer-to-Consumer (C2C)  Technology-based  Peer-to-Peer (P2P)  Mobile Commerce (M-commerce)

12. Copyright © 2002 Pearson Education, Inc. Slide 1-12 Major Types of E-Commerce Page 14, Table 1.2

13. Copyright © 2002 Pearson Education, Inc. Slide 1-13 Business-to-Consumer E- commerce  Most commonly discussed type  Online businesses attempt to reach individual consumers  Consumers will spend $65 billion in 2001.

14. Copyright © 2002 Pearson Education, Inc. Slide 1-14 Business-to-Business E-commerce  Businesses focus on sell to other businesses  Largest form of e-commerce  $700 billion in transactions in 2001  Primarily involved inter-business exchanges at first  Other models have developed  e-distributors  infomediaries  B2B service providers

15. Copyright © 2002 Pearson Education, Inc. Slide 1-15 Consumer-to-Consumer E- commerce  Provide a way for consumers to sell to each other  Estimated $5 billion market  Consumer:  prepares the product for market  places the product for auction or sale  relies on market maker to provide catalog, search engine, and transaction clearing capabilities

16. Copyright © 2002 Pearson Education, Inc. Slide 1-16 Peer-to-Peer E-commerce  Enables Internet users to share files and computer resources  Napster

17. Copyright © 2002 Pearson Education, Inc. Slide 1-17 Mobile E-commerce  Wireless digital devices enable transactions on the Web  Uses personal digital assistants (PDAs) to connect  Used most widely in Japan and Europe

18. Copyright © 2002 Pearson Education, Inc. Slide 1-18 AKHIR PERTEMUAN 1

19. Copyright © 2002 Pearson Education, Inc. Slide 1-19 PERTEMUAN 2

20. Copyright © 2002 Pearson Education, Inc. Slide 1-20 Growth of the Internet and the Web  Created in the late 1960s  About 350 million computers worldwide to date  Links businesses, educational institutions, government agencies, and individuals  Provides services such as e-mail, document transfer, newsgroups, shopping, research, instant messaging, music, video, and news

21. Copyright © 2002 Pearson Education, Inc. Slide 1-21 Growth of the Internet and the Web  Internet hosts are growing at a rate of 45% per year  Extraordinary growth -- time to reach 30% US households  Radio - 38 years  Television - 17 years  Internet/Web - 8 years (1993)

22. Copyright © 2002 Pearson Education, Inc. Slide 1-22 The Growth of the Internet Page 16, Figure 1.3

23. Copyright © 2002 Pearson Education, Inc. Slide 1-23 The Growth of Web Content Page 17, Figure 1.4

24. Copyright © 2002 Pearson Education, Inc. Slide 1-24 The Growth of B2C E-Commerce Page 20, Figure 1.5

25. Copyright © 2002 Pearson Education, Inc. Slide 1-25 The Growth of B2B E-Commerce Page 21, Figure 1.6

26. Copyright © 2002 Pearson Education, Inc. Slide 1-26 Origins and Growth of E-Commerce  Baxter Healthcare  Primitive form of B2B using telephone-based modem to permit hospitals to reorder supplies (early 1970s)  PC-based remote order entry system (1980s)  Electronic Data Interchange (EDI) standards developed that permitted firms to exchange commercial documents and conduct digital commercial transactions across private networks (1980s)

27. Copyright © 2002 Pearson Education, Inc. Slide 1-27 Origins and Growth of E-Commerce  French Minitel videotext system  First B2C arena (1981)  15 million in use throughout France  World Wide Web  1993 first browsers  1995 first banner ads

28. Copyright © 2002 Pearson Education, Inc. Slide 1-28 Technology and E-Commerce in Perspective Internet and the Web are just two of a long list of technologies that have greatly change commerce  Other technologies spawned business models and strategies  Explosive early growth followed by retrenchment and then long- term successful exploitation of the technology

29. Copyright © 2002 Pearson Education, Inc. Slide 1-29 Technology and E-Commerce in Perspective Although e-commerce has grown explosively, there is no guarantee it will continue to grow  Confront own fundamental limitations  B2C only about 1% of overall retail market  With current growth rates, B2C will roughly equal the annual revenue of Wal-Mart in 2005

30. Copyright © 2002 Pearson Education, Inc. Slide 1-30 Limitations of the Growth of B2C E-Commerce Page 23, Table 1.3

31. Copyright © 2002 Pearson Education, Inc. Slide 1-31 Web Access Via Wireless Devices in the United States Page 24, Figure 1.7

32. Copyright © 2002 Pearson Education, Inc. Slide 1-32 E-Commerce I and II  E-Commerce I  Explosive growth starting in 1995  Widespread of Web to advertise products  Ended in 2000 when dot.com began to collapse  E-Commerce II  Began in January 2001  Reassessment of e-commerce companies

33. Copyright © 2002 Pearson Education, Inc. Slide 1-33 E-Commerce I 1995-2000  For computer scientist and information technologists  Vindication of a set of information technologies developed over 40 years  Extending from the early Internet to the PC and local area networks  The vision of universal communications

34. Copyright © 2002 Pearson Education, Inc. Slide 1-34 E-Commerce I 1995-2000  For economists  Raised realistic prospect of perfect Bertrand Market  where price, cost, and quality information is equally distributed  where a nearly infinite set of suppliers compete against one another  where customers have access to all revelant market information worldwide  Merchants have equal direct access to hundreds of millions of customers

35. Copyright © 2002 Pearson Education, Inc. Slide 1-35 E-Commerce I 1995-2000 Disintermediation  displacement of market middlemen who traditionally are intermediaries between producers and consumers by a new direct relationship between manufacturers and content originators with their customers

36. Copyright © 2002 Pearson Education, Inc. Slide 1-36 E-Commerce I 1995-2000 Friction-free commerce  a vision of commerce in which  information is equally distributed  transaction costs are low  prices can be dynamically adjusted to reflect actual demand  intermediaries decline  unfair competitive advantages are eliminated

37. Copyright © 2002 Pearson Education, Inc. Slide 1-37 E-Commerce I 1995-2000  First mover  a firm that is first to market in a particular area and that moves quickly to gather market share  Network effect  occurs where users receive value from the fact that everyone else uses the same tool or product

38. Copyright © 2002 Pearson Education, Inc. Slide 1-38 E-Commerce II 2001-2006  Crash in stock market values of E- commerce I companies throughout 2000 is an end to E-commerce I  Led to a sobering reassessment of the prospects of e-commerce and the methods of achieving business success.  E-commerce II begins in 2001 and ends five year later -- the limit for making technology and business projections

39. Copyright © 2002 Pearson Education, Inc. Slide 1-39 E-Commerce II 2001-2006  Reasons for the end of E-Commerce I  run-up in technology stocks due to enormous information technology capital expenditure of firms rebuilding their internal business systems to withstand Y2K  telecommunications industry had built excess capacity in high-speed fiber optic networks  1999 e-commerce Christmas season provided less sales growth that anticipated and demonstrated e-commerce was not easy (eToys.com)  valuations of dot.com and technology companies had risen so high supporters were questioning whether earnings could justify the prices of the shares.

40. Copyright © 2002 Pearson Education, Inc. Slide 1-40 E-Commerce I and E-Commerce II Compared Page 32, Table 1.5

41. Copyright © 2002 Pearson Education, Inc. Slide 1-41 Understanding E-Commerce: Organizing Themes  Technology: Infrastructure  development and mastery of digital computing and communications technology  Business: Basic Concepts  new technologies present businesses and entrepreneurs with new ways of organizing production and transacting business  Society: Taming the Juggernaught  global nature of e-commerce poses public policy issues of equity, equal access, content regulation, and taxation

42. Copyright © 2002 Pearson Education, Inc. Slide 1-42 The Internet and the Evolution of Corporate Computing Page 37, Figure 1.8

43. Copyright © 2002 Pearson Education, Inc. Slide 1-43 Disciplines Concerned with E- Commerce Page 39, Figure 1.9

44. Copyright © 2002 Pearson Education, Inc. Slide 1-44 AKHIR PERTEMUAN 2