Chapter 1 - The Revolution is Just Beginning

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1. 3 credit equifax 11. EC phases 95-00: Innovation (explosive growth)

bureaus in experian 01-06: Consolidation (business-
U.S. transunion driven emphasis, char by
reassessment of EC co's and value)
2. 3 1. tech: dev't + mastery of digital computing + cx
06-Now: Reinvention (consumer gen
organizing tech
content, SN, virtual lives)
themes
2. business: new techs present bus with new 12. Electronic Data ...
ways of org prodxn and transacting business Interchange
13. failures of EC 1. friction free commerce
3. society: IP, individual privacy, public policy
-consumers less price sensitive than
3. 8 unique 1. ubiquity (available everywhere, always) expected
features of 2. global reach -considerable price dispersion
e- 3. universal standards remains
commerce 4. info richness (media ads)
5. interactivity 2. perfect competition
6. info density (tech reduces info costs and -transaxn costs still high
raises quality) -info assyms persist
7. personalization/customization
8. social technology (user content gen + SN) 3. disintermed
-intermeds haven't disappeared
4. Baxter throughout the 1980s and 1990s the company
Healthcare expanded to deliver a wider variety of products
4. 1st mover advantage
and services (including vaccines, a greater
-fast followers overtake first movers
variety of blood products) through acquisitions
of various companies. 14. French Minitel ...
5. beginning 1995 15. internet global computer networks built on
of EC first sales of banner ads common stds
made in late 1960s
6. commercial involve the exchange of value across org or
services: web, e-mail, file tx
transaxns indiv boundaries in return for p/s
measure growth: look at # of hosts
7. digitally include all transaxns mediated by digital tech with domain names
enabled
16. limits on B2C growth 1. expensive tech
transaxns
2. sophisticated skills set
8. E- involves digitally enabled commercial 3. persistent cultural attraxn of phys
commerce transaxns b/w and among orgs and indivs mkts and tradl shopping experiences
definition 4. persistent global inequality
9. E- -mobile platform solidifies limiting access to phones + comps
Commerce -mobile e-commerce explodes 5. saturation + ceiling effects (growth
Trends -continued growth of social networks in the Internet pop slows as it
2012-2013 -expansion of social and local e-commerce approaches the size of the total pop)
-explosive growth in "Big Data" 17. name technologies internet
-e-books gain wide acceptance that have greatly web
10. e- EB: digital enabling of transaxns and processes changed commerce cars
commerce WITHIN a firm, involving IS under firm's control (4) radio
vs e- (internet) 18. Precursors of EC Baxter Healthcare
business EB: does NOT include commercial transaxns Electronic Data Interchange
with an exchange of value across org French Minitel (1980s videotext sys)
boundaries NONE with fxnality of internet
19. predictions of EC 1. prices will cover real cost of doing 27. the web most popular service on the internet
business and pay high ROR made in early 1990s
2. margins and profits will rise to gives access to web pages (HTML)
levels more typical of retailers includes text, graphics, animation,
(fortune 500 cos will play dominant music, vidoes
role) content grown exponentially
3. # of soccessful pure online stores
28. Web 2.0 user-centered apps + SM tech
will remain smaller than integrated
user-gen content + cx
online/offline stores
highly interactive
4. regulatory activity worldwide will
large audiences
grow
5. success = can it be digitized?
*Twitter, YouTube, FB, Instagram, etc.
6. creativity!
7. trusted 3rd parties will become 29. why study e- diff + more powerful than any previous
important commerce? tech
8.
20. t/f: EC is fastest TRUE
growing form of EC But only 2.8% of mkt share
in US?
21. traditional 1. consumer = passive target
commerce 2. sales force driven
3. fixed prices
4. info asymmetry
22. trust and reputation ---
related systems are
critical to the
success of EC
23. Types of EC B2C
B2B
C2B
Social EC
Mobile EC (M-commerce)
Local EC
24. vision for EC: -internet shouldn't be controlled by
computer scientists gov and remain free for all
25. vision for EC: -nearly perfect competitive mkt
economists (friction-free commerce)
-char by low transaxn + search + menu
costs, price transparency, dynamic
pricing, disintermed, elim of unfair
competitive advantages
26. vision for EC: -opp for high ROI bc of:
entrepreneurs
1. worldwide access to consumers
2. new, universal, cheap, powerful
mkting techniques + cx
3. ability to segment mkt
4. 1st mover advantages (built in
switching costs)
5. network effects