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IS4838
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How new information technologies and networks will affect the exchange of goods ... 'test-driving' new products, customisation of products, e.g. ABEBooks, Dell, ... – PowerPoint PPT presentation
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Title: IS4838
1
IS4838
- Fundamentals of Electronic Commerce
Robert Davison http//www.is.cityu.edu.hk/staff/is
robert
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Aims
- How new information technologies and networks
will affect the exchange of goods and services
between buyers and sellers in the 21st century
in Hong Kong and globally
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Objectives
- Assessment and understanding of
- Technologies - Internet, interactive television,
virtual reality, digital cash, etc. - Business strategies and initiatives
- Contextual issues politics, economics, consumer
psychology and global forces
4
Syllabus
- Impact of emerging national and global
information superhighways on the way goods and
services are transacted - Stakeholder issues
- Transaction types advertising, purchasing,
customer service - Critical evaluation of business strategies
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Syllabus
- Models of web-based business
- E-Commerce developments in China
- Effectiveness of web sites for commerce
- Legal and ethical issues
- Practitioner Perspectives guest lectures
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Week by Week
- 1 Introduction
- 2 Infrastructure
- 3 Regulatory Framework
- 4 Virtual Teams
- 5 B2B
- 6 B2C
- 7 - Trust
- 8 Internet Marketing
- 9 EC in China Guest Speaker
- 10 M-Commerce, L-Commerce U-Commerce
- 11 B2C Guest Speaker
- 12 To be decided
- 13 Revision
7
Week by Week
- Cultural Perspectives
- Legal Issues
- Ethical Concerns
- Privacy Matters
- Local Examples
- Global Perceptions
- E-everything?
- Virtual Teams
- Virtual Organisations
- The Social Dimension
- Political Realities
- Psychological Differences
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Teaching Methods
- Lectures concepts, models, examples
- Tutorials a mixture of lab and discussion
- case studies of successful (and unsuccessful)
instances of EC - problems in EC for discussion
- critical analyses
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Assessment
- Exam (2 hours) 50
- Coursework 50
- Coursework
- One group, virtual team project (40)
- Participation in tutorial classes (10)
- Questions, answers, ideas, willingness to be
involved there will be many opportunities!
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Set Texts
- Farhoomand, A. and Lovelock, P. (2001) Global
E-Commerce, Prentice Hall 0-13-061229-4 - Turban, E., Lee, J., King, D. and Chung, H.M.
(2002) Electronic Commerce A Managerial
Perspective, Prentice Hall 0-13-975285-4
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Flavour of IS4838
- Primarily looking at consumer and organisational
perspectives of electronic commerce. - Less attention to systems analysis/design and
developmental issues this is not intended to be
a technical course (the only prerequisite is
FB2500 which itself is essentially
non-technical) - !
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The Marketspace Ecosystem
- A virtual location on the web where transactions
take place - A location that is defined and governed by
information - Reliable, quality information is of paramount
importance for effective decision making by all
stakeholders - A new ecosystem with new objects and
relationships, models and dynamics
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Spaces
- Buying/selling - Marketspace
- Working - Workspace
- Info-/Enter- tainment Infospace
- There is an almost unlimited variety of spaces
for different purposes, where many different
types of digitised information products can be
transacted much more cheaply than in the
physical marketplace
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Products
- Documents
- Data (inc. statistics)
- Dictionaries/Encyc.
- Investments
- Bookings and tickets
- News
- Musical performance
- Images
- Video (inc. TV, VC)
- info, enter, edu tainment
- Money - digicash
- Insurance
- Software
- Weather forecasts
- etc.
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E.g. Financial Products/Services
- Teller-based transaction costs 10
- Internet-based transaction costs 0.1
- Travel reservation through an agent 80
- Travel reservation through the Internet 16
- Stock purchase through an agent 500 up
- Stock purchase on the Internet 0 up
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Marketplace vs. Marketspace
- In the transition from place to space,
information is a critical strategic resource - Adding efficiency and adding value.
- Linking businesses, partners, customers ever
more dynamically into a virtual value chain - The vast majority of companies operate in both
space and place few are space only.
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Mixing and Matching
- In the marketspace, we can mix and match product
and infrastructure characteristics so as to add
value - Building relationships with non-traditional
partners - Identifying new customers
- Personalisation is a major part of this new wave
of mix 'n' match
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Personalisation
- Content online information in online stock
trading - Context development of customer loyalty e.g.
Amazon, - Infrastructure searching for products,
'test-driving' new products, customisation of
products, e.g. ABEBooks, Dell,
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Marketspace Types I
- Seller-controlled Cisco www.cisco.com
- On-line ordering, customisation, documentation
- Buyer-controlled JAL www.jal.co.jp
- On-line procurement to search for suppliers
- Buyer intermediaries Freemarkets
www.freemarkets.com - act as agents or aggregators, identifying a pool
of competitive suppliers
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Marketspace Types II
- Neutral auction houses and other third-party
intermediaries - FastParts www.fastparts.com
- anonymous spot market for trade in electronics
components - eBay www.ebay.com
- Red Dots www.red-dots.com
- consumer-consumer trading
- IceRed www.icered.com
- consumer-consumer conversations
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Marketspace Themes I
- EC is changing the importance of time. 24-hour
communication continuous buying and selling - EC is diminishing the importance of geographical
boundaries anytime, anyplace transactions, but - legal issues? logistics? finance/payment?
security/jurisdictions? culture?
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Marketspace Themes II
- EC is changing the character of intermediation
- HK has traditionally built much of its wealth out
of intermediating trade between China and the
outside - Intermediation functions still exist, but they
look different with disintermediation and
reintermediation
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Marketspace Themes III
- EC is premised on technical and philosophical
openness - The Internet is fundamentally open and
non-proprietary - Customers can be partners a new open strategic
approach - Major implications for CRM, social
transformations, transparency and privacy
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Marketspace Themes IV
- EC acts as a catalyst to many other changes in
economics, politics and organisational
structures, including globalisation - EC produces synergies, with multiple winners and
win-win scenarios
25
Virtual Value Chains
- The value chain is a model that describes how
value is added to a product as it progresses from
raw materials through design, production and out
to the customer. - Producer gt Wholesaler gt Retailer gt Consumer 200
- Producer gt Retailer gt Consumer 145
- Producer gt Consumer 88
- IT enables the producer to disintermediate the
wholesaler and retailer
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Infomediaries I
- New entrants can disintermediate existing
relationships online travel agents, stock
brokers, etc. - Established organisations can reintermediate or
reinvent existing markets, creating new value for
customers - Both practices come from the emergence of
information as a critical strategic resource.
27
Infomediaries II
- An infomediary (information intermediary) derives
its primary or only source of revenue from
consumer information and profiling for use by
(selected) third-party vendors - Infomediaries negotiate with consumers for their
information - Analysis of website visitors www.doubleclick.net
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Summary
- In the shift from marketplace to marketspace,
there are fundamental business and economic
changes. - New business models emerge.
- Information is a source of value, not just a
supporting element. - Sustainability in the longer term depends on
building and maintaning a critical mass of
consumers, stable networks, trust, security,
standardisation and compelling content.
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