1. Comp1503 E-Business/E-Commerce History and Trends
2001
Comp1503 E-Business/E-Commerce History and Trends
Daniel L. Silver, Ph.D.
Daniel L. Silver

2. Theme
“To thrive in the e-commerce world, companies need to structurally transform their internal foundations to be effective. They need to integrate their creaky applications into a potent e-business infrastructure.”
from the E-Business: Roadmap for Success by
Dr. Ravi Kalakota
2001
Daniel L. Silver

3. Outline History of E-Commerce/E-Business
Effects of E-Commerce/E-Business
Trends effecting E-Commerce/E-Business
The Rules of E-Business
Constructing the E-Business Architecture
2001
Daniel L. Silver

4. History of E-Commerce ARPAnet created in 1969 (evolved to TCP/IP)
Personal computers exploded in 1981
Processing power increases, cost decreases
LANs and WANs became requirements in 1980s
The Internet was of significant size by mid 1980s
WWW started in 1990 with HTTP and HTML
General browser technology created in 1993 (used HTTP, ftp, gopher, and .gif and .jpg images)
Search engines soon followed (AltaVista, Lycos)
2001
Daniel L. Silver

5. History of Internet Growth
B.C.
Novelty
Utility
Ubiquity
Build-out
Mainstream awareness
Real applications
Useful, safe, fun
Transparent
Omnipresence
Experimental
Reid, 1997

6. History of E-Commerce
Businesses transformed Internet technologies into intranets, extranets to solve integration problems
Object Oriented Programming (Java) and the Web provide new client-server paradigm
Audio (.wav), video (.mpg), animation (Flash) standards
Broadcast and Push technologies, e.g. PointCast
Portals, intelligent web agents, personalization
General telecom (audio, video) over IP
Wireless Internet access (cell phones and PDAs) … pervasive computing
2001
Daniel L. Silver

7. Key Technologies Enabling E-Commerce Evolution
Decreasing cost of increasingly more powerful hardware – GHz processors, Mb nets,GB drives
Integration of voice, data, image, video data
Distributed database methods
Graphical user interfaces (GUI)
Communications (TCP/IP, HTTP) protocols and content/ publication (HTML, XML) standards
Object oriented methods (Java, J2EE, ORB)
Lightweight electronics for mobile IT (Palm, RIM, Pocket PC)
2001
Daniel L. Silver

8. Business Evolution on Web
Functionality
Processes
Web-enabled
applicatons
Transactions
Interactivity
Dynamic web pages
Publishing
Static web pages
Time or Maturity
2001
Daniel L. Silver

9. Effects of E-Commerce Spam Bandwidth load shift Work load time shift
Work place shift
Play time shift
Growth of on-line “virtual communities”
Privacy challenges / new privacy products
2001
Daniel L. Silver

10. Effects of E-Commerce Liberalization of pornography
Promises of wealth creation beyond your wildest dreams … seemed unbelievable … well it was!!
Reducing TV consumption?
Dynamic and free content
Uncharted legal issues
Reinforcing media / converging media
Access to commodities such as prescription drugs without normal levels of control
2001
Daniel L. Silver

11. Effects of E-commerce Credit card fraud Tax avoidance
Many new copyright issues
Free access to information
How to save a life (CPR, FirstAid, choking)
How to build a bomb, or counterfeiting instructions
Accuracy of information sources in question
Hacking and computer viruses
Shifting barriers of competition
Disintermediation and reintermediation
2001
Daniel L. Silver

12. Where has E-Commerce Had the Greatest Impacts?
Postal service
Real estate
Communications
Radio / TV
Finance (banks)
Entertainment
Travel agents
Stock brokers
What do all these
Businesses have
in common?
Information = $
Time = $
Client self-service
is acceptable
2001
Daniel L. Silver

13. Pre- dot.com Crash 8 Rules of E-Business
Technology is the cause and driver, it is no longer an after thought
Information collection, integration and timely dissemination is the business
Outdated business processes must go or your business will die
Create flexible outsourcing that excites customers
2001
Daniel L. Silver

14. Pre- dot.com Crash 8 Rules of E-Business
E-Commerce means: “the cheapest”, “the most familiar” or “the best”
Enhance the entire experience around the product (selection, order, receipt, service)
Promote reconfigurable business models to meet customer needs
The tough task: Align business strategies and processes fast, right, and all at once
2001
Daniel L. Silver

15. Before the dot.com Crash
$125B in financial capital sunk into the new dot.com companies from venture capitalists and later mutual fund holders
The vision was an easily accessible world-wide market that was self-regulated
The extraordinary profits would go to first movers – the new intermediaries
The first E-Commerce period was driven by gold-rush fever
Few real objectives, few business plans, few winners
2001
Daniel L. Silver

16. Reasons for the dot.com Crash
Corporate America was rebuilding their internal business systems in , when this completed – Crash!
Huge competition in the telecomm. Industry caused revenue to – Crash!
Xmas 1999 showed that E-Comm shopping was not really that popular – Crash!
Re-valuations of IT companies (dot.coms) – Crash!
2001
Daniel L. Silver

17. Lesson from the dot.com Crash
From technology perspective – “E-” !
Ramp-up from 1000’s to ’s of users
A solid technological base (DC,DP,DB)
From business perspective – “-Commerce”?
Only ~ 10% of dot.coms survived
Remember eToys.com, Furniture.com
Yet B2C sales growing at ~50% per year
Users have learned to use the web for information about products andservices
2001
Daniel L. Silver

18. Trends effecting E-Commerce/E-Business
Consumer Trends
Speed of Service, Self-Service (empowerment)
Integrated solutions, not piecemeal products
Service/Process Trends
Convergence of sales and service
Long-term Customer Relationship Management
Flexible fulfillment and service delivery
2001
Daniel L. Silver

19. Trends effecting E-Commerce/E-Business
Organizational Trends
Brand not capital: contract JIT manufacturing
Retain the core, outsource the rest
Increase process visibility (to customers, suppliers)
Employee retention, cont. learning/innovation
Technology Use Trends
Enterprise wide applications, use middleware for integration
Integrate voice, data, video comm. channels
Handheld and wireless – an explosion !
2001
Daniel L. Silver

20. Five Major Predictions for the E-Commerce Future
E-Commerce technology take-up will continue to grow by ~50% until about ~2006
E-Commerce prices will rise to cover real costs of doing business on the web
E-Commerce profits will rise to meet levels of bricks and mortar stores
Major players will become the experienced Fortune 500 companies who have been watching (eg. WalMart, Sears, JC Penny, the Gap)
The number of successful dot.coms will further reduce and adopt “clicks and bricks “ strategies
2001
Daniel L. Silver

21. Constructing the E-Business Architecture
The New Era of Cross-Functional Integrated Applications
Middleware
Supply
Chain
Management
Procurement
Management
Enterprise
Resource
Planning
Knowledge
Management
Selling
Chain
Management
Customer
Relationship
Management
2001
Daniel L. Silver

22. Constructing the E-Business Architecture
The New Era of Cross-Functional Integrated Applications
CRM = Customer Relationship Management
ERP = Enterprise Resource Planning
SupCM = Supply Chain Management
SellCM = Selling Chain Management
PM = Procurement (Operational Resource) Management
Middleware = Integration Applications
KM = Knowledge Management (DW/Analytics)
2001
Daniel L. Silver

23. Constructing the E-Business Architecture
CRM = Customer Relationship Management
Marketing, Sales, Service
ERP = Enterprise Resource Planning
Forecasting and Planning
Purchasing and Material Management
Inventory Management
Finished Porduct distribution
Accounting and Finance
2001
Daniel L. Silver

24. Constructing the E-Business Architecture
SupCM = Supply Chain Management
Market demand
Resource and capacity constraints
Real-time scheduling
SellCM = Selling Chain Management
Product Customization
Pricing, Contract and Commission Management
Quote and Proposal Generation
Promotions Management
2001
Daniel L. Silver

25. Constructing the E-Business Architecture
PM = Procurement Management
Office Supplies, Business Travel, Entertainment, Service contracting, IT h/w, s/w and networking
KM = Knowledge Management (DW/Analytics)
Data Warehousing
Business Analytics (data mining)
Executive Info Systems, Decision Support Systems
Middleware = Integration Applications
e.g. SAP (ERP) to SAS (KM)
2001
Daniel L. Silver

26. The E-Business Architecture
Partners, Suppliers
SupCM PM KM
ERP
Employees
Stakeholders
Middleware
SellCM
CRM
Customers, Distributors
2001
Daniel L. Silver

27. Who will be affected the most by this trend?
Question …
In Groups of 2 or 3 answer the following:
What do you predict to be the most significant new trend (paradigm) in E-Business / E-Commerce?
Who will be affected the most by this trend?
2001
Daniel L. Silver

28. THE END danny.silver@acadiau.ca