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Lecture 1

 Year 1994, E Commerce did not even exist

 Rapid growth in E Commerce in the first


5-6 years (almost 100% per year)

 Still growing rapidly

 Vision 2050: All the commerce to be the


E Commerce
 The use of internet and web to transact
business
OR
 Digitally enabled commercial transactions
between and among the organizations and
individuals

Commercial Transaction: Exchange of


value in the return of product(s) or
service(s)
 Refers to the digitally enabled
transactions
 within the firm
 involving Information Systems
 under the control the of the firm

Example: a company’s online inventory


management mechanism
E Commerce E Business
 Purely commercial  Generally non-
transactions i.e. commercial
focuses revenue transactions
generation
 Encompasses all  Encompasses all
the electronic internal/external
activities of the electronic
firm that supports activities
the market
exchanges
1. Ubiquity
2. Global Reach
3. Universal Standards
4. Richness
5. Interactivity
6. Information Density
7. Personalization/Customization
1. Ubiquity
 Available everywhere: home, office, or elsewhere via mobile devices
 Available anytime

Business Significance:
 Marketplace extended beyond traditional boundaries, and
 is removed from the temporal and geographical location
 “Marketspace” is created: shopping can take place anywhere
 Enhanced customer convenience at low shopping costs
2. Global Reach
 Reaches across cross-country boundaries across the
world

Business Significance:
 Millions of potential customers & businesses around the
world
 Convenient & cost-effective commercial transactions
3. Universal Standards
 One set of technology: internet standards

Business Significance:
 Lower market entry cost
4. Richness
 Refers to complexity & content of the message:
audio, video, text etc

Business Significance:
 Integration of audio, video, text etc in the
marketing message for
 better customer experience
5. Interactivity
 Interaction with user: two way communication

Business Significance:
 Customer engagement & experience
6. Information Density
 Refers to the total information available to all market
participants

Business Significance:
 Low costs for information storage, processing &
communication
 Improved currency, accuracy & timeliness
7. Personalization/ Customization
 Targeting Individuals
 Matching the product/service based on individual
preference or behavior

Business Significance:
 Buying behavior/Trends
 Customer loyalty
E Commerce I E Commerce II
 Beginning of 1995  Beginning of 2001
 Technology driven  Business driven
 Focus revenue  Focus earning &
growth profits
 Ungoverned  Stronger
regulations
 Pureonline  Mixed ‘click &

strategies bricks’ strategies


Type Example
What is a Business Model?

 Set of planned activities or business processes


 designed to result profits in the marketplace

“The way of doing business & making money”


Business Model Examples Revenue Model
Lecture 2
 Before the firms begin to sell their
products/services online,
 they must understand
 what kind of people they will find online;
and
 how those people behave in online
marketplace (i.e. marketspace)
In this module, we will discuss:

 Identifying the key features of internet


audience
 Discussion of the basic concepts of
consumer behavior & purchasing decisions
 Understanding how consumer behave
online
Knowing the customer on following
parameters:
 Intensity of usage
 Scope of use
 Demographics & Access
 Ethnicity
 Education
 Gender
 Lifestyle impacts
 Media choices
Knowing the customer on following
parameters:
 Intensity of usage
How much time or how frequently

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