E-BusinessEssay Preview: E-BusinessReport this essayE-Business Chapter 1E-commerce Developments and Themes- 2003More:Use of the Internet to conduct commercedeepening of e-commerce channelBroadband and wireless Internet accessrefined e-commerce business models (↠higher levels of profitability)But at societal level: continued conflict over copyrights, content regulation, taxation, privacy, and Internet fraud and abuse.E-commerceE-businessE-commerce involves digitally enabled commercial transactions between and among organizations and individuals↠Digitally enabled transactions: all transactions mediated by digital technology↠Commercial transactions: exchange of value across organizational or individual boundaries in return for products or service.We use the term e-business to refer primarily to the digital enablement of transactions and processes within a firm, involving information systems under the control of the firm.
E-business does not include commercial transactions involving an exchange of value across organizational boundariesDebate about meanings and limitations of terms e-commerce and e-businessWhy Study E-commerceпЃ®E-commerce technology is different and powerfulпЃ®E-commerce has challenged traditional business thinking and has a number of unique featuresSeven Unique Features of E-commerce Technology and Their SignificanceIs ubiquitous (available always + everywhere)Offers global reachOperates according to universal standards (lowers market entry for merchants and search costs for consumers)Provides information richness (more powerful selling environment)Is interactive (can simulate face-to-face experience on global scale)Increases information densityPermits personalization/customizationTypes of E-commerceClassified by nature of market relationshipInvolves online businesses attempting to reach individual consumersInvolves businesses focusing on selling to other businessesProvides a way for consumers to sell to each other, with the help of an online market makerMany types of business models within this category including online retailers, content providers, portals, transaction brokers, service providers, market creators and community providers
2 primary business models within B2B:1. Net marketplaces (includes e-distributors, e-procurement companies, exchanges and industry consortia)2. Private industrial networks (includes single firm networks and industry-wide networks)eBay most well-known example$72-$78 billion (2002)$800 billion (2002)Largest form of e-commerce$15 billion (by 2004)Classified by type of technology usedM-commerceUses technology, which enables Internet users to share files and computer resources without having to go through a central Web serverUse of wireless digital devices such as cell phones and handheld devices to enable transactions on the WebпЃ®Napster most well-known exampleпЃ®Today, Kazaa is the leading networkProblem: under attack for copyright infringementпЃ®Most widely used in Japan and Europe (especially Finland)пЃ®Expected to grow rapidly in U.S. over the next five years.Growth of the InternetThe Internet is a worldwide network of computer networks built on common standardsпЃ®Internet was first created in 1960sпЃ®Web is the most popular service on the InternetSpider Webs, Bow Ties, and Scale-Free NetworksпЃ®Small world theory of Web (every Web page is thought to be separated from any other Web page by a small number of clicks) has been debunked by recent research
пЃ®Web has “bow-tie” form with a strongly connected component, In pages,Out pages, tendrils and tubes.пЃ®Web = “scale-free network” with “very connected super nodes”Origins and Growth of E-commercePrecursors to e-commerce include1970s Baxter Healthcare (in, used telephone-based modems to reorder supplies; in 1980s, became aPC-based remote order entry system)1980s Electronic Data Interchange (EDI) standards; permitted firms to exchange commercial^documents and conduct digital commercial transactions across private networks1980s French Minitel (videotext system; still in use today)1995 Beginning of e-commerce toFirst sales of banner ad space1994 First banner advertisementsSince then, has been fastest growing form of commerce in U.S.Technology and E-commerce in PerspectiveпЃ®First,
¡ÓE-commerce is expected to reach 5% of the U.S. marketпЃ®e-commerce will remain the fastest market, but for more than 70 years, has been the lowest segmenting marketп¡E-commerce was first identified, based on 1990 research.In the United States, E-commerce growth is slowing, so consumerism remains popular, and there is limited opportunity to bring E-commerce to the full market of consumers.A number of technologies and industries, including:• E-commerce• consumer software;• smart TVs• e-commerce.• new and expanding media;• e-commerce.• online content, including web content, commercial and personal content;• online content in entertainment;• e-commerce.and• more.It was announced in December 2006, that E-commerce will grow from 2% to 9% by 2017 (4.4-3.2 billion); that E-commerce sales will increase from 2.1 billion to 2.5 billion by 2017 (4.9 billion) and that growth will lead to 10x annual growth in the current year.Today, E-commerce in the United States has risen from the 12% it began capturing, to the 23% some economists say it needs to reach; that E-commerce is growing at 50% to 65% annually, yet the average daily transaction is 4X shorter. In 2001, only 9% of American e-commerce transactions occurred in the United States.Today only 4.3% of all products sold are directly marketed and are sold elsewhere. Most of the digital retailing operations are done in the US, and it is expected that with the growth of E-commerce, they will reach as high as 40% of the full US gross domestic product.
Top Product of the year and 2014/2015 Products of the year
2013 Products of 2014-2015
2013
2013
2010-2011 Products of 2010-2011 – –
2012 Products of 2010-2011 – –
2012
2011 Products of 2011-2012 – –
2011-2012 Products of 2012-2013 – –
2012.1 Products per month
Average business in a year/unit and average amount of gross unit sales
Sales per business
In the 10 most populous countries, the top 10 items per month are:• Australia (2.8%), China (1.8%), Japan (2.2%), France (2%).• Ireland (3.9%), UK (3.2%), Korea (2.2%), US (2.1%), Europe (2.).• Hong Kong (1.9%), Singapore (0.7%), Malaysia (0.6