Electronic Commerce

1
Electronic Commerce Lessons Learned and a Look
to the Future

• Dr. H. E. (Buster) Dunsmore
• Purdue University
• Department of Computer Sciences

2
Electronic Commerce

• Commerce negotiated exchange of products and/or
  service between buyer and seller
• New developments have become part of commerce
  through centuries cargo ships, printing press,
  railroad, telephone
• Internet and World-Wide Web began to be used in
  commerce in 1990s birth of Electronic Commerce
  (e-commerce)

3
Result of

• Invention of Web
• Proliferation of fast PCs with audio and video
  capabilities
• Internet access through fast modems and Internet
  Service Providers (ISPs)

4
What Went Right?

• Easy Internet connectivity
• Web advances in presenting information and
  interactivity
• Websites to learn about businesses,
  organizations, products, services, FAQs, customer
  support, telephone and email contact information
• Email and chat correspondence

5
What Went Right?

• Web-based ordering, status checking, tracking
• 24-hour availability, global reach, multimedia,
  always up-to-date
• Web access to bank accounts, credit card
  accounts, investment portfolios
• Payment via credit card and bank account
• New businesses based entirely on Web invented
  (for example, auctions)

6
What Went Wrong?

• Organizations not ready for volume of traffic on
  Websites
• Poor navigation, difficulty getting around
  Website
• Poor reliability lost and faulty orders,
  disconnection from Website
• Lack of human contact in case of trouble
• Lack of privacy and security

7
What Went Wrong?

• Junk mail and spam email containing unsolicited
  ads to consumers and other business prospects
• Companies did not develop good business models
  for Web
• Some businesses based entirely on Web sales have
  vanished
• No viable model has yet been developed for
  distance learning

8
What does the future hold for electronic commerce?

• Organizations learn how to integrate Internet/Web
  with everything else including educational
  organizations incorporating distance learning
• Customers expect organization to have Web access
  for information and transactions
• Customers will have access to Web wherever they
  are
• Connectivity speeds will continue to increase

9

• Reliability will get better greatly decreasing
  lost and faulty orders, disconnection from
  Website
• Organizations gather data about prospects and
  customers in unprecedented amounts through site
  registration, questionnaires, and as part of
  taking orders
• Online stores can tell
• Who comes to their Website
• What products they look at
• How long they stay
• Which promotions they respond to
• What they buy
• How many leave without making a purchase

10

• Better use of ads Neilsen ratings for
  Websites, targeted ads, visit-specific ads
• Better privacy and security
• Electronic payment systems credit card, bank
  funds transfer, ecash
• Opt-in email customers voluntarily sign up to
  receive email about product categories or other
  subjects they are interested in
• Lower transaction costs if an e-commerce site
  is implemented well, the Web can significantly
  lower both order-taking costs up front and
  customer service costs after the sale

11

• Larger purchases per transaction Customer can
  be presented what other people who ordered this
  product/service also purchased
• Larger catalogs A company can present a catalog
  on the web that would never fit in an ordinary
  mailbox (for example, Amazons 3,000,000 books)
• Integration into the business cycle A Website
  that is well-integrated into the business cycle
  can offer customers more information than
  previously available. For example,
  manufacturing, shipping, tracking like Dell and
  FedEx do now.

12

• Improved customer interactions With automated
  tools it is possible to interact with a customer
  in richer ways at virtually no cost. For
  example, the customer might get an email when the
  order is confirmed, when the order is shipped,
  and after the order arrives.
• Electronic commerce will become an integral part
  of commerce

13
What does the Future Hold for Internet and
Computing Technology?
14
Networking Technology
Power-Line Networking
Way to connect computers in home or office using
electrical wiring
15
Power-Line Networking

• More convenient than phone lines
• Connect computer to network through the outlet
  that provides power
• Data travels through electrical wiring
• Requires no new wiring and adds no cost to
  electric bill
• Power-line networking is inexpensive method for
  connecting computers in different places in home
  or office

16
Wireless Networking

• Creates network by sending infrared or radio
  signals between computers
• Better than Power-line networking some computers
  are not plugged in to electrical outlet
• Laptop with wireless network card is completely
  portable throughout home or office
• IrDA (Infrared Direct Access) is standard for
  devices to communicate using infrared light
  pulses

17
Wireless Networking

• Infrared devices must be in direct line of sight
  with each other (like TV remote which uses same
  infrared technology)
• Infrared is almost always one to one technology
• Radio signals better because no line of sight
  requirement and ability to broadcast to multiple
  recipients

18
Bluetooth

• Bluetooth is new standard being developed by a
  group of electronics manufacturers
• Will allow any sort of electronic equipment to
  communicate with each other
• Can be used among computers, keyboard, mouse,
  printer, headphone, cell phone
• Bluetooth-like radio communications should take
  place of wires or infrared signals for connecting
  devices

19
Bluetooth

• Very small radio module to be built into each
  device
• Wireless No need for cables or cords to any
  device

20
Bluetooth

• Inexpensive Should add only about 5-10 to price
  of product
• Simple Devices find one another and strike up
  conversation without any work on your part
• Why is it called Bluetooth?
• Harald Bluetooth was king of Denmark around the
  turn of the last millenium
• He united Denmark and part of Norway into a
  single kingdom

21
The Next Generation Internet

• About 120 universities and 25 corporate
  sponsors are working on better Internet
  infrastructure Internet 2

22
The Next Generation Internet

• Larger bandwidth
• Faster speeds
• Better reliability
• Better security
• Better compression techniques (smaller files to
  be transmitted)
• Caching leaving copies around closer to the
  point of need
• All developments will eventually become part of
  standard internet

23
Internet Protocol Version 6 (IPv6)

• Todays Internet uses Internet Protocol Version
  4 (IPv4) approximately 20 years old
• Internet Protocol Version 6 (IPv6) (also called
  IPng) will eventually replace IPv4

24
Internet Protocol Version 6 (IPv6)

• IPv6 fixes a number of problems in IPv4, such as
  limited number of available IPv4 addresses
• IPv6 goes from 32 to 128 bits per address
• If whole Earth was a beach, more than enough IP
  addresses for every grain of sand ... hope that
  will be enough
• IPv6 also routes messages better, auto-configures
  for missing computers, and includes security
  components for encryption and authentication

25
Consumer Computer Technology
Plastic Displays

• Researchers have recently made breakthroughs in
  developing displays out of polyethylene
  terephthalate (PET)
• Thin, flexible, rugged plastic that you can bend,
  roll up, fold, or form into practically any shape

26
Plastic Displays

• Mass production of plastic displays is
  approximately five years away
• Applications could include notebook and desktop
  displays, hand-held appliances
• Also, wearable displays sewn into clothing, and
  paper thin electronic books and newspapers

27
Wearable Computers

• Obvious applications like hearing aids with sound
  enhancement software
• Glasses with multi-informational display about
  what is being seen, where you are
• Wrist computers, PDAs, cell phones

• Next step is computerized clothing
• Including computers in standard clothing items
  like shoes, pants, shirts, jackets, beltseven
  underwear

28
Wearable Computers

• Uses include.
• Health related monitor blood pressure, pulse
  rate, blood sugar, useful for life threatening
  conditions that need continual monitoring
• Navigation directions, maps, airline
  information, restaurant and hotel information
• Safety and security connections to police,
  fire, medical, auto towing and repair
• Entertainment music, news, video, sporting
  events

29
Wearable Computers

• Some of these devices already making their way
  into consumer market
• Working to integrate computers and related
  devices directly into clothing, so that they are
  virtually invisible
• Interaction via sensors, all fabric keypads,
  speakers, voice recognition receivers, thin
  light-emitting diode (LED) monitors, flat screen
  (plastic) displays, holographic projectors
• Another step in making computers and devices
  portable without having to carry and manipulate
  plethora of gadgets

30
(No Transcript)