Chapter 14 - Supporting Knowledge Work Flashcards
What is e-commerce?
A buying and selling of goods/service over the internet
Digitally enabled commercial transactions between and among orgs and individuals
What are the 8 unique features of e-commerce?
1) Ubiquity
2) Global Reach
3) Universal Standards
4) Social Technology
5) Personalization/Customization
6) Information Density
7) Interactivity
8) Richness
What does e-commerce ubiquity mean?
It means that it can be everywhere
What does e-commerce global reach mean?
Potential market scale is roughly equivalent to the size of the internet which is ~world
What does e-commerce universal standards mean?
Technical standards of the internet can reduce cost of entry and price of goods?>
Also make existing bus tech easier to delpy
What does e-commerce richness mean?
E-commerce platforms can deliver video, audio and animations which can enhance richness of info about product and. service
What does e-commerce interactivity mean?
Allows for two-way communication between bus and consumers
What does e-commerce density mean?
Ecommerce reduces cost of collection, storage and processing data
Increases currency, accuracy and opportunities/timeliness of information making it more useful
What does e-commerce customization mean?
Allows for customization of products and marketing messaging.
Can change prod and servuces based on consumer preferences or past behavior
What does e-commerce social technology mean?
Using social media to increase engagement
What are some e-commerce trends?
- Size will reach $5trillion by 2021
- Many business owners are taking their businesses online by creating websites and selling products/services through website
- Consumer preferences are driving growth of e-commerce especially with covid
- Sales are projected to reach 17.5% of retailer sales by 2021
- Not selling online, missing out on opportunity to reach massive pool of potential buyers (21.8% of world pop)
- US b2b ecomm will reach $1.8 trillion by 2023
- 73% of shoppers use multiple channels (Google, social media, email) to do their shopping
- 95% of all transactions are expected to be via ecomm by 2040
What are some benefits of e-comm?
- convenience and accessibility
- overcomes physcial geo limitations
- earning while you sleep instead of just in store hours
- scalability - expand with less costs than physical store
- personalizaiton - ai can be used to create a personalized shopping experinece
- access to innovative tech - more ways to streamline business
- affordability marketing - range of affordable marketing channels to drive people to store
What are the types of e-commerce?
1) B2C
2) B2B
3) C2C
+
a) mobile
b) social network
c) local e-comm
Why do customers prefer B2C ecomm?
Simplicity, More convenient and better prices
What are the types of B2C sellers?
1) Direct sellers - e.g. Zappos, Amazon books, can be mfg, sellers
2) Intermediaries - e.g. Amazon, brokers deals between two parties
3) Fee-based - Netflix, Spotify, content on-demand for a fee, usually subscription fee
4) Advertising Based - high quality free content to attract visitors then sell ads e.g. youtube
5) Community Based - selling targeted ads based on demographics e.g. FB
What is the key challenge for B2C ecomm?
Attracting customers
What is the projected rev growth of ecomm in us?
$95.7B 2003, ->229.9B 2008
- promosing but full potential not realized
- constantly increaasing rate and more due to pandemic
Canada
- in 2019 retail e-comm sailes growth by 8%
What is the difference between B2B and B2C
B2b is to business, tend to have higher order value and more recurring purchases
- typically higher order value
- include mfg equipment, distribution, sw etc…
- prods and services needed to grow
Is B2C bigger than B2B ecomm?
No - in Canada and US B2B is about 10x bigger (~$7.6T)
- in 2020 projected to be over $9T
What is C2C ecomm?
Trade between private individuals
Consumers communicate with each other directly
e.g. online auctions
Sometimes intermediaries with flat fees, expected to grow due to cost effectiveness
- projected to grow in future due to cost effectiveness
Craigslist - classified ads, very friendly, sell items
Etsy - provides advice for growth, easily handle orders
Ebay - fixed price and auction
What are the three periods of e-comm?
1995-2000 - Retail, basic static websites
- selling simple retail goods
- not enough bandwidth for complex
- ads limited to hunches
- basic static website
2000-2007 - Consolidation, web used to strengthen positions, new services online
- emerged after dot com crash
- large traditional firms learned how to use web
- new services include travel and banking
2007 - now - Reinvention, web 2.0 with consumer devices + content
- started with invention of smart phones
- rise of personal devices
What are the three themes of ecomm?
Tech - Tech needed from last 50 years (e.g. web, mobile devices, DB, cloud computing etc…)
Bus - New tech presents new ways of doing bus, new strategies needed
Society - Intellectual property, ind privacy, welfare - need to understand society before conducting successful bus
Evolution of corporate computing
1950 - 1975 - mainfram computers
1970 - 1980 - mini computers - supports bus app by providing automation at cheaper price, hr, design
1980 - personal computers - desktop automation, word processors, spreadsheets
1980 - LAN/Client-server - share docs, pm, email
1990 - enterprise-wide comp - resource planning, advance resource planning
1995 - web and mobile - industrial sys automation, supply chain management, cloud
E-bus
e-bus includes all bus activities via business
- include e-commerce
E-commerce infrastructure
- collection of entities needed to run e-commerce
- right infra, better bus performance
Categorization:
- ecomm environment
- ecomm soln providers (end-to-end solution)
- ecomm infra services (e.g. authentication, checkout, payment)
History of internet
- began as a search for transferring info efficiently over comp networks got to destination without being scrambled
- no one predicted in first phase it would reach here
- link mianframes on diff comp campuses
- vulnerable if one network went down
- USDD wanted to built network robust enough to survivce nuclear war
- encourage expansion via marketshare
Key tech concepts
IP
- comm protocols used in internet
- transmission control protocol (TCP)
- Internet protocol (IP)
- provide end to end data comm, describe how data should be packetized, transmitted and recieved
- 4 abstraaction layers (linked, internet, transport (h2h), application (p2p))
Mobile Platform
- primary access to internet
- 42% of cellphone users (1.84billion) are smartphone users
Cloud computing
- provider manges collection of sw and hw
- data centers availble to many customers
- single org or many orgs
- sharing of resources to achieve econ of scale
- avoid or minimize upfront costs
- improves time of application up and running
Who governs the internet?
ICANN - assigned names and numbers
IETF int eng task f - develops and promotes internet standards for protocols
IRTF int res - long term issues of eng
IESG eng steer group -
IAB int arch board -
ISOS - provide leadership in internet related standards, policies and eduction
IGF int gov forum - discussion of policies, informs and inspiures policy makers
WWWC - full time staff for standards of www (recall www is only one service of internet, otehrs include email)
INOG int net ops group
Limitations of current internet
bandwidth - insufficent capacity in last mile, todays internet is kind of slow, not good at sharing large files
quality of service limitations - latency caused by uneven distrivution of info sending
language dev limitations - html not good enough
network arch - cannot keep up with norms and expect of customers
wired internet - based on physical cables, mobile networks overloaded
Internet 2
lead by 450 institutions
- creating leading edge super high speed network for national research community
- full exploiting broadband through use of new gen applications
- transferring new network services and apps to all levels of education and borader world
GENI
Global Env network inn
- goal is to enhance research in comp netwroks
Future internet
- new research in internet arch
- long term, several years before implement
- generally slow incremental improements
- provide latency solutions
- guaranteed service level
- lower error rates
- reduce costs
- IoT improvement
Web Servers and Web Clients
Web Servers & SW
- Enables comps to deliver pages to clients that request
- e.g. Apache
- includes basic security FTP, search, data capture
- captable pof making http requests and access to internet
Web 2.0
- emphasize user gen content
- social network
- blogs
- RSS (allows users to have content sent directly to comp)
- wiki
- web video
- internet telphone
- intelligent assistants or chatbots
- video conferencing
Mobile Apps
- 80% of shoppers are mobile shoppers as well
- increasing use of tablets
- differrent platforms and OS
Criteria for choosing ecomm infrastructure
Flexibility - easy to manage for all users, ability to respond quickly to change
Usability - any failures limit ability to deliver
Scalability - growth rapidly, env that does not collaps when growth high traffic, doesnt slow in peaks
Security -
