Basics and History of E-Commerce

clashjudiciousElectronics - Devices

Nov 8, 2013 (3 years and 9 months ago)

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Basics and History of E
-
Commerce


Distributing, buying, selling and marketing
products and services over electronic systems


E
-
business for commercial transactions


Involves supply chain management, e
-
marketing, online marketing, EDI


Uses electronic technology such as:


-

Internet


-

Extranet/Intranet


-

Protocols


Internet:

-
A collection of computers that speak a common
language


protocol


Intranet:



-

Private version of the Internet


-

Main purpose to share company
information and computing resources
among employees


Extranet:


-

Private network that users outside the
company can access


-

Requires security and privacy


-

Collaborate with other companies



3

4


Digitalization &
Connectivity


Intranets : connect people
within a company.


Extranets : connect a
company with its
suppliers, distributors, and
outside partners.


Internet : connects users
around the world.


Internet Explosion


Explosive worldwide
growth forms the heart of
the New Economy.



Increasing numbers of
users each month.



Companies must adopt
Internet technology or
risk being left behind.


New Types of Intermediaries:


Direct selling via the Internet bypassed existing
intermediaries (disintermediation).


“Brick
-
and
-
mortar” firms became “click
-
and
-
mortar” companies.



Customization and Customerization:


With customization, the company custom designs
the market offering for the customer.



With customerization, the customer designs the
market offering and the company makes it.



Started as a US government project in 1969.



The purpose was to create a net that can
function even if one center is destroyed in a
military attack.

-

“Hub and spokes” can be useless if the hub is
destroyed.

-
Network can continue to be functional even if some
nodes are destroyed, as long as information can
pass through other nodes.



Effective in 1971 with computers on both
coasts of the US.



Personal computers or terminals were
connected to a server.



The server was a mainframe, or connected to a
mainframe computer.



The mainframe was connected to another
mainframe of the company in another location
via dedicated lines.



Only large companies could afford the expense
and investment in equipment
.



Connections across countries




continents made through dedicated fast
lines.


Mainframes:



-

term for very large computers


-

used to handle large amount of data or


complex processes


-

main advantage is reliability


Midrange:


-

medium sized, less expensive and smaller


-

usually a server


Micro
-
computer:


-

work stations with computing capabilities


-

single
-
users systems linked to form a
network



Local area network (LAN): small area, share
a single server



Metropolitan area network (MAN): a wider
network, can bridge several LAN’s



Wide area network (WAN): a broader area
covered, can include several MAN’s



Internet: a network of networks that covers
the entire globe


Internet uses TCP/IP, therefore every
computer on the Internet has an IP address



IP address is numerical, separated by dots



Works with DNS:


-

com: for commercial purposes


-

net: for Internet Service Providers


-

org: for non
-
profit, non
-
commercial groups


-

gov: reserved for government


-

mil: reserved for military


-

int: reserved for international organizations



Technology first adopted to increase
efficiency


doing the same tasks faster e.g.
word processing instead of typing



Technology next adopted to increase
effectiveness


doing tasks not only faster
but better e.g. spreadsheets transformed
finance and accounting (as well as science
and other fields)



E
-
Commerce, Web, Networks, Internet


The evolution of new businesses


The adoption of Brick and Mortar companies to
the new economy


Market failures and economic explanations for
the new economy


EC applications first
developed in the
early 1970s

-

Electronic funds
transfer (EFT)


Limited to:

-

Large corporations

-

Financial institutions

-

A few other daring
businesses



Electronic funds transfer between banks over
secure private networks changed financial
markets. EFT optimizes electronic payments
with electronically provided remittance
information.


Today there are many variants e.g. debit
card


During

the

late

1970
s

and

early

1980
s,

electronic

commerce

became

wide

spread

within

companies

in

the

form

of

electronic

messaging

technologies
:

EDI

and

electronic

mail
.

Electronic

messaging

technologies

streamline

business

processes

by

reducing

paperwork

and

increasing

automation
.



Transformation of economic activity into digital
media

-

Exchange information, content, agreements, and
services among parties that are connected to through
the Internet.


Enables new ways of creating, delivering and
capturing value to customers.

-

Availability

-

Convenience



World Wide Web (Web):

-

A collection of documents that reside on
computers, and that can be accessed by other
computers on the Internet.


Multimedia documents:

-

Text

-

Images

-

Sounds

-

Drawings

-

Video


Hypertext:

-

Links to other documents

-

Can begin execution of a program

2
0




Computer programs that can:

-

Display Web documents

-

Follow links

-

Execute other programs

-

Enhance applications such as real
-
time audio or video


Netscape and Internet Explorer



Computers that run server software.


A server waits for request to arrive from a user.

-

The request is typically for a document.


The server sends (serves) the document to the
requesting computer.


Sometimes the server allows a user to fill in
information on a document, and the then
transfers the information to another program or
a server.


The World Wide Web (WWW) is not the Internet


Access to the Internet doesn’t mean you have e
-
commerce


WWW works in HTTP


Web pages works in HTML


Web browser provide access to information on
the WWW