Week One: What is Week One: What is Electronic Commerce?Electronic Commerce?

Dr. Virginia F. KleistDr. Virginia F. Kleist

West Virginia UniversityWest Virginia University

MANG 493LMANG 493L

Outline for What is Outline for What is Ecommerce:Ecommerce:

1.1 Introduction, syllabus1.1 Introduction, syllabus

1.2 Technology is not static1.2 Technology is not static

1.3 Introduction to Ecommerce1.3 Introduction to Ecommerce

1.4 Evolution of Programming, 1.4 Evolution of Programming, SoftwareSoftware

1.5 History of the Internet1.5 History of the Internet

1.6 Evolution of Hardware1.6 Evolution of Hardware

1.7 Object oriented Technology1.7 Object oriented Technology

Outline for What is Outline for What is Ecommerce, cont’d:Ecommerce, cont’d:

1.8 JavaScript1.8 JavaScript

1.9 The .com bust1.9 The .com bust

1.10 Why study Ecommerce?1.10 Why study Ecommerce?

1.1 Introduction, syllabus1.1 Introduction, syllabus

Background to Dr. Kleist, researchBackground to Dr. Kleist, research What will we cover in this class?What will we cover in this class? Rappa, Deitel, et al. and Network Rappa, Deitel, et al. and Network

Security textsSecurity texts How will I grade you?How will I grade you? How do you get in touch with meHow do you get in touch with me Sample testsSample tests Lab work on Network security, JavaScript, Lab work on Network security, JavaScript,

HTML, XML, Dreamweaver, and FlashHTML, XML, Dreamweaver, and Flash

1.2 Technology is not 1.2 Technology is not StaticStatic

Use of internet increasingUse of internet increasing Capabilities have expandedCapabilities have expanded Cost has decreased (Moore’s Law)Cost has decreased (Moore’s Law) Potential increasedPotential increased Technology of web is not static, nor Technology of web is not static, nor

are the solutions of ecommerceare the solutions of ecommerce What will future ecommerce sites look What will future ecommerce sites look

like?like?

1.3 Introduction to 1.3 Introduction to EcommerceEcommerce

What is ecommerce?What is ecommerce? eBusiness, ecommerce, electronic eBusiness, ecommerce, electronic

commerce, etc.commerce, etc. New business models:New business models:

1. Virtual Storefront1. Virtual Storefront 6. Reverse auction6. Reverse auction

2. Marketplace concentrator2. Marketplace concentrator 7. Digital product delivery7. Digital product delivery3. Information broker3. Information broker 8. Content provider8. Content provider4. Transactions broker4. Transactions broker 9. On-line service provider9. On-line service provider5. Electronic clearinghouse5. Electronic clearinghouse (Laudon and Laudon, 2000)(Laudon and Laudon, 2000)

1.3 Introduction to 1.3 Introduction to Ecommerce, cont’dEcommerce, cont’d

eBay and online auctionseBay and online auctions Priceline.comPriceline.com Economics of attentionEconomics of attention

1.3 Introduction to 1.3 Introduction to Ecommerce, cont’d Ecommerce, cont’d (Neitel, et al, 2000)(Neitel, et al, 2000)

Provides goods and services 24 Provides goods and services 24 hours a dayhours a day

unlimited inventoryunlimited inventory consumer comparison shoppingconsumer comparison shopping essential to business successessential to business success replacing “bricks and mortar”replacing “bricks and mortar” personalize user experiencepersonalize user experience

1.4 Evolution of 1.4 Evolution of Programming, SoftwareProgramming, Software Computers, hardware, softwareComputers, hardware, software Types of Programming languages (machine, Types of Programming languages (machine,

assembly, high level)assembly, high level) FORTRAN, COBOL, PascalFORTRAN, COBOL, Pascal Structured ProgrammingStructured Programming MultitaskingMultitasking Mosaic, Netscape, IEMosaic, Netscape, IE Tim Berners-LeeTim Berners-Lee Computing and networksComputing and networks Intranets, extranets, internetsIntranets, extranets, internets Improving technologiesImproving technologies

1.5 History of the Internet1.5 History of the Internet

The internet is the technological The internet is the technological enabler of ecommerceenabler of ecommerce

TCP/IPTCP/IP Distributed computingDistributed computing Cheap HWCheap HW Platform independent SWPlatform independent SW DoD developments, 60s, 70sDoD developments, 60s, 70s

1.5 History of the Internet1.5 History of the Internet

Origins in DoD workOrigins in DoD work Internet enablesInternet enables TCP/IP packet networks vs. circuit TCP/IP packet networks vs. circuit

switched networksswitched networks SurvivabilitySurvivability Issues of “Last Mile Problem”Issues of “Last Mile Problem” Timeline of evolution from centralized Timeline of evolution from centralized

computing, to PC, to client server to computing, to PC, to client server to networks.networks.

1.6 Evolution of Hardware1.6 Evolution of Hardware

(partially from Deitel, et al, 2001)(partially from Deitel, et al, 2001)

– Internet community thrives on improvements of Internet community thrives on improvements of HardwareHardware SoftwareSoftware CommunicationsCommunications

– Cost of products and services Cost of products and services Consistently dropping over the decadesConsistently dropping over the decades

– Computer capacity and speed Computer capacity and speed Doubles every two years (on average)Doubles every two years (on average)

– Microprocessor chipMicroprocessor chip Laid groundwork in late 1970s and 1980s forLaid groundwork in late 1970s and 1980s for productivity productivity

improvements of the 1990simprovements of the 1990s MemoryMemory StorageStorage

1.7 Object Oriented 1.7 Object Oriented Technology Technology (Deitel, et al. 2001)(Deitel, et al. 2001)

Objects Objects – Reusable software components that model items in Reusable software components that model items in

the real worldthe real world– Meaningful software unitsMeaningful software units

Date objects, time objects, paycheck objects, Date objects, time objects, paycheck objects, invoice objects, audio objects, video objects, file invoice objects, audio objects, video objects, file objects, record objects, etc.objects, record objects, etc.

Any noun can be represented as an objectAny noun can be represented as an object– More understandable, better organized, and easier to More understandable, better organized, and easier to

maintain than procedural programmingmaintain than procedural programming– Favor modularityFavor modularity

1.8 JavaScript 1.8 JavaScript (Deitel, et al, 2001)(Deitel, et al, 2001)

JavaScriptJavaScript– Attractive package for advancing level of Attractive package for advancing level of

programming language educationprogramming language education– Object-based language Object-based language – Supports proper software engineering techniquesSupports proper software engineering techniques– Free for download in today’s most popular Web Free for download in today’s most popular Web

browsersbrowsers Attractive to collegesAttractive to colleges Bug fixes and new versions easily obtainedBug fixes and new versions easily obtained

– Powerful scripting languagePowerful scripting language PortablePortable Programs execute interpretively on client machinesPrograms execute interpretively on client machines

1.9 The .com bust1.9 The .com bust

Not everything is great with Not everything is great with ecommerceecommerce

Privacy invasionPrivacy invasion Intellectual property theftIntellectual property theft Hype, internet bubble, speculationsHype, internet bubble, speculations TulipmaniaTulipmania www.satirewire.comwww.satirewire.com

1.9 Concerns for being 1.9 Concerns for being online online Amor, 2002, p. 28)Amor, 2002, p. 28)

Channel conflictChannel conflict CompetitionCompetition CopyrightCopyright Customer acceptance Customer acceptance Legal issuesLegal issues LoyaltyLoyalty PricingPricing SecuritySecurity ServiceService ViabilityViability

1.10 Advantages from 1.10 Advantages from ecommerce?ecommerce? (Amor, 2002, p. 17) (Amor, 2002, p. 17)

Global accessibility and sales reachGlobal accessibility and sales reach Closer relationshipsCloser relationships Free samplesFree samples Reduced costsReduced costs Media breaksMedia breaks Time to marketTime to market Customer loyaltyCustomer loyalty

1.10 Reasons for Going 1.10 Reasons for Going Online Online (Amor, 2002, Chpt. 1)(Amor, 2002, Chpt. 1)

Expanding market reachExpanding market reach Generating VisibilityGenerating Visibility Strengthening business relationshipsStrengthening business relationships ResponsivenessResponsiveness Offering new servicesOffering new services Cost reductionCost reduction Just in time inventoryJust in time inventory

1.10 Reasons for Going 1.10 Reasons for Going Online, cont’d Online, cont’d (Amor, 2002, Chpt. 1)(Amor, 2002, Chpt. 1)

Preventing financial lossPreventing financial loss Relevance to ITRelevance to IT Concerns about going onlineConcerns about going online

1.10 Why Study 1.10 Why Study ecommerce, cont’decommerce, cont’d

CiscoCisco DellDell PNC BankPNC Bank Freemarkets.comFreemarkets.com TransformationTransformation B2BB2B Porter’s value chainPorter’s value chain