Comp1503 Introduction to E-Commerce Technology201047195213

Document Sample
Comp1503 Introduction to E-Commerce Technology201047195213 Powered By Docstoc
   History and Trends
“To thrive in the e-commerce world,
  companies need to structurally transform
  their internal foundations to be effective.
  They need to integrate their creaky
  applications into a potent e-business
     from the E-Business: Roadmap for Success by
     Dr. Ravi Kalakota

                         COMP 2513                 2
•   History of E-Commerce/E-Business
•   Effects of E-Commerce/E-Business
•   Trends effecting E-Commerce/E-Business
•   The Rules of E-Business
•   Constructing the E-Business Architecture

                    COMP 2513                  3
       History of E-Commerce
• ARPAnet created in 1969 (evolved to TCP/IP)
• Personal computers exploded in 1981
    – Processing power increases, cost decreases
• LANs and WANs became requirements in 1980s
• The Internet was of significant size by mid 1980s
• WWW started in 1990 with HTTP and HTML
• General browser technology created in 1993 (used
  HTTP, ftp, gopher, and .gif and .jpg images)
• Search engines soon followed (AltaVista, Lycos)

                           COMP 2513                  4
       History of Internet Growth

    B.C.         Novelty               Utility               Ubiquity


1992 1993 1994 1995 1996 1997 1998 1999 2000
Experimental   Build-out              Real applications   Transparent
               Mainstream awareness   Useful, safe, fun   Omnipresence
                                                                         Reid, 1997
      History of E-Commerce
• Businesses transformed Internet technologies into
  intranets and extranets to solve integration problems.
• Object Oriented Programming (Java) and the Web
  provide new client-server paradigm.
• Audio (.wav), video (.mpg), animation (Flash) were
  standardized and available to all.
• Broadcast and Push technologies, e.g. PointCast.
• Portals, intelligent web agents, personalization.
• General telecom (audio, video) over IP.
• Wireless Internet access (cell phones and PDAs) …
  pervasive computing.

                        COMP 2513                          6
   Key Technologies Enabling
    E-Commerce Evolution
• Decreasing cost of increasingly more powerful
  hardware – GHz processors, Mb nets,GB drives
• Integration of voice, data, image, video data
• Distributed database methods
• Graphical user interfaces (GUI)
• Communications (TCP/IP, HTTP) protocols and
  content/ publication (HTML, XML) standards
• Object oriented methods (Java, J2EE, ORB)
• Lightweight electronics for mobile IT (Palm, RIM,
  Pocket PC)

                         COMP 2513                    7
          Business Evolution on Web
                                    Transactions      applicatons

                                     Dynamic web pages

                     Static web pages

                             Time or Maturity
                                COMP 2513                      8
        Effects of E-Commerce
•   Spam
•   Bandwidth load shift
•   Work load time shift
•   Work place shift
•   Play time shift
•   Growth of on-line “virtual communities”
•   Privacy challenges / new privacy products

                     COMP 2513                  9
     Effects of E-Commerce
• Liberalization of pornography
• Promises of wealth creation beyond your wildest
  dreams … seemed unbelievable … well it was!!
• Reducing TV consumption?
• Dynamic and free content
• Uncharted legal issues
• Reinforcing media / converging media
• Access to commodities such as prescription
  drugs without normal levels of control

                     COMP 2513                      10
       Effects of E-commerce
•   Credit card fraud
•   Tax avoidance
•   Many new copyright issues
•   Free access to information
    – How to save a life (CPR, FirstAid, choking)
    – How to build a bomb, or counterfeiting instructions
•   Accuracy of information sources in question
•   Hacking (cracking) and computer viruses
•   Shifting barriers of competition
•   Disintermediation and reintermediation
                         COMP 2513                          11
Where has E-Commerce Had the
      Greatest Impacts?
  •   Postal service
                              What do all these
  •   Real estate             Businesses have
  •   Communications          in common?
  •   Radio / TV
  •   Finance (banks)         Information = $
  •   Entertainment           Time = $
  •   Travel agents           Client self-service
  •   Stock brokers              is acceptable
                  COMP 2513                         12
         Pre- Crash
        8 Rules of E-Business
1. Technology is the cause and driver, it is
   no longer an afterthought
2. Information collection, integration and
   timely dissemination is the business
3. Outdated business processes must go or
   your business will die
4. Create flexible outsourcing that excites
                   COMP 2513               13
          Pre- Crash
         8 Rules of E-Business
5. E-Commerce means: “the cheapest”, “the most
   familiar” or “the best”
6. Enhance the entire experience around the
   product (selection, order, receipt, service)
7. Promote reconfigurable business models to
   meet customer needs
8. The tough task: Align business strategies and
   processes fast, right, and all at once

                     COMP 2513                14
     Before the Crash
• 1995-2000 $125B in financial capital sunk into
  the new companies from venture
  capitalists and later mutual fund holders
• The vision was an easily accessible world-wide
  market that was self-regulated
• The extraordinary profits would go to first
  movers – the new intermediaries
• The first E-Commerce period was driven by
  gold-rush fever
• Few real objectives, few business plans, few

                     COMP 2513                     15
Reasons for the Crash
• Corporate America was rebuilding their
  internal business systems in 1999-2000,
  when this completed – Crash!
• Huge competition in the telecomm. Industry
  caused revenue to – Crash!
• Christmas 1999 showed that E-Commerce
  shopping was not really that popular –
• Re-valuations of IT companies (dot.coms) –
                    COMP 2513                  16
Lesson from the Crash
• From technology perspective – “E-” !
  – Ramp-up from 1000’s to 1,000,000’s of users
  – A solid technological base
  – From business perspective – “-Commerce”?
  – Only ~ 10% of dot.coms survived
     • Remember,
  – Yet B2C sales growing at ~50% per year
  – Users have learned to use the web for
    information about products and services
                      COMP 2513               17
        Trends effecting
• Consumer Trends
  – Speed of Service, Self-Service
  – Integrated solutions, not piecemeal products
• Service/Process Trends
  – Convergence of sales and service
  – Long-term Customer Relationship
  – Flexible fulfillment and service delivery
                      COMP 2513                    18
          Trends effecting
• Organizational Trends
  –   Brand, not capital: contract JIT manufacturing
  –   Retain the core, outsource the rest
  –   Increase process visibility (to customers, suppliers)
  –   Employee retention, continued learning/innovation
• Technology Use Trends
  – Enterprise wide applications, use middleware for
  – Integrate voice, data, video comm. channels
  – Handheld and wireless – an explosion !

                           COMP 2513                          19
     Five Major Predictions for the
         E-Commerce Future
1. E-Commerce technology take-up will continue to grow
   by ~50% until about ~2006
2. E-Commerce prices will rise to cover real costs of doing
   business on the web
3. E-Commerce profits will rise to meet levels of bricks
   and mortar stores
4. Major players will become the experienced Fortune 500
   companies who have been watching (eg. WalMart,
   Sears, JC Penny, The Gap)
5. The number of successful dot.coms will further reduce
   and adopt “brick and click” strategies

                         COMP 2513                       20
   Constructing the E-Business
• The New Era of Cross-Functional
  Integrated Applications

                                Middleware     Supply
          Procurement                          Chain
          Management                         Management
                     Resource Knowledge
                     Planning Management
             Selling                   Customer
             Chain                   Relationship
           Management                Management
                        COMP 2513                         21
  Constructing the E-Business
• The New Era of Cross-Functional Integrated
  – CRM = Customer Relationship Management
  – ERP = Enterprise Resource Planning
  – SupCM = Supply Chain Management
  – SellCM = Selling Chain Management
  – PM = Procurement (Operational Resource)
  – Middleware = Integration Applications
  – KM = Knowledge Management (DW/Analytics)
                     COMP 2513                 22
  Constructing the E-Business
• CRM = Customer Relationship
  – Marketing, Sales, Service
• ERP = Enterprise Resource Planning
  – Forecasting and Planning
  – Purchasing and Material Management
  – Inventory Management
  – Finished Product distribution
  – Accounting and Finance
                     COMP 2513           23
  Constructing the E-Business
• SupCM = Supply Chain Management
  – Market demand
  – Resource and capacity constraints
  – Real-time scheduling
• SellCM = Selling Chain Management
  –   Product Customization
  –   Pricing, Contract and Commission Management
  –   Quote and Proposal Generation
  –   Promotions Management

                        COMP 2513                   24
   Constructing the E-Business
• PM = Procurement Management
  – Office Supplies, Business Travel, Entertainment,
    Service contracting, IT h/w, s/w and networking
• KM = Knowledge Management (DW/Analytics)
  – Data Warehousing
  – Business Analytics (data mining)
  – Executive Info Systems, Decision Support Systems
• Middleware = Integration Applications
  – e.g. SAP (ERP) to SAS (KM)

                        COMP 2513                      25
   The E-Business Architecture
             Partners, Suppliers

            SupCM             PM

Employees   ERP           KM          Stakeholders


            SellCM        CRM

            Customers, Distributors
                  COMP 2513                    26
              Question …
• In Groups of 2 or 3 answer the following:

    What do you predict to be the most
     significant new trend (paradigm) in
        E-Business / E-Commerce?

Who will be affected the most by this trend?

                   COMP 2513                  27

Shared By: