Hi, My Name is Karen! GLOBAL E-BUSINESS & TRADE. Karen s Decision. Karen had a beautiful baby boy BUT her son would never know his father 2/24/2015

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1 1-1 Hi, My Name is Karen! 2 GLOBAL E-BUSINESS & TRADE Part I: Introduction and Developments in E-Business and E-Commerce Past, Present, and Future Karen had a problem. She was ling in Copenhagen with her baby son AUGUST August had NEVER SEEN his father and Karen had no idea where to find him and didnot EVEN know his name. Global E-Business and Trade, 2015 Spring, Assist. Prof. Dr. Ozge Ozgen 3 Karen had a beautiful baby boy BUT her son would never know his father Karen had met a male tourist, ended up having one-night stand and shorthly aferwards found out she was pregnant. 4 Karen s Decision Karen was feeling that she was desperate and helpless In Sept. 2009, with August 18 months old, Karen decided to find August s father by the help of internet. 1

Global E-Business and Trade, 2015 Spring, Assist. Prof. Dr.

Just in few days over a million people watched the video Bloggers, social media users shared

2 Karen s Actions Karen26 Video 5 6 Web Page Blog Simple exploratory film on Youtube 7 What happened? Just in few days over a million people watched the video Bloggers, social media users shared Karen s youtube video Home-made video reached incredible coverage And what happenned? 8 HOUSTON WE HAVE A PROBLEM! Karen was a FAKE! Karen was an actor and the wholestory created and paid for by 2

3 Karen26 Video VisitDenmark VIRAL CAMPAIGN 9 10 Low Costs Mass Coverage No reference Per view based Fast widespread coverage 153 countries in first week Afterthat, 2.5 million views in 216 countries Youtube top 10 most viewed list Reference of VisitDenmark not mentioned on video People Believed that it was real Ethical Discussion??? VisitDenmark s Argument Video was proper to target market of Denmark as destination Aim was creating positive recall Vide is showing that Denmark is broad-minded country where you can do what you want Dignified, independent Danish women 11 Negative Reactions People who shared the video felt themselves stupid Instead of positive recall, negative recall occured FINALLY; creators of video said sorry and video is removed from Youtube BUT? IS IT ENOUGH TO REMOVE??? 12 IS IT POSSIBLE TO REMOVE CREATED CONTENT ON INTERNET? Video was extensively parodied, remixed & remade by Youtube users 3

?? VisitDenmark s Argument Video was proper to target market of Denmark as destination Aim was creating positive recall Vide is showing that Denmark is broad-minded country where you can do what you

4 13 IS IT POSSIBLE TO REMOVE CREATED CONTENT ON INTERNET? Today, karen26 search result on Google E-commerce Trends Retail e-commerce grows over 15% Continued expansion of mobile, social, and local e-commerce Mobile platform rivals PC platform Continued growth of cloud computing Explosive growth in Big Data Continued growth of user-generated content on social networks, blogs, wikis The First 30 Seconds First 20 years of e-commerce Just the beginning Rapid growth and change Technologies continue to evolve at exponential rates Disruptive business change New opportunities What Is E-commerce? Use of Internet and Web to transact business More formally: Digitally enabled commercial transactions between and among organizations and individuals 4

platform Continued growth of cloud computing Explosive growth in Big Data Continued growth of user-generated content on social networks, blogs, wikis The First 30 Seconds First 20 years of

into a site and linking to social networking sites can help understand customers needs and increase conversion to sale. E-commerce vs.

5 Copyright 2015 Pearson Education, Inc. 2/24/2015 Buy-side E-commerce vs. Sell-side E-commerce Social commerce Social commerce is an increasingly important part of e-commerce for site owners since incorporating reviews and ratings into a site and linking to social networking sites can help understand customers needs and increase conversion to sale. E-commerce vs. E-business E-business: Digital enabling of transactions and processes within a firm, involving information systems under firm s control Does not only include commercial transactions involving an exchange of value across organizational boundaries 20 Intranets, Extranets and the Internet 5

6 Why Study E-commerce? Why E-business? 22 E-commerce technology is different, more powerful than previous technologies E-commerce brings fundamental changes to commerce Traditional commerce: Consumer as passive targets Mass-marketing driven Sales-force driven Fixed prices Information asymmetry New opportunities with THE COMBINATION OF Cost saving methods Revenue increasing methods Benefits of E-Business and E-Commerce DEBATE ISSUE 23 Adoption of e-business by established SMEs is generally less than that in larger businesses. WHY? No perceived benefit Lack of trust Security problems Lack of skills Cost 6

Consumer as passive targets Mass-marketing driven Sales-force driven Fixed prices Information asymmetry New opportunities with THE COMBINATION OF Cost

7 Copyright 2015 Pearson Education, Inc. Copyright 2015 Pearson Education, Inc. 2/24/2015 Eight Unique Features of E-commerce Technology 1. Ubiquity 1. it is available just about everywhere, at all times 2. Marketspace a marketplace extended beyond traditional boundaries and removed from a temporal and geographic location. 2. Global reach 3. Universal standards 4. Information richness 1. the complexity and content of a message 26 Information Richness Number of Web sites is currently estimated at more than 1.2 billion Number of Web pages is over 50 billion Deep Web TRILLIONS... Eight Unique Features of E-commerce Technology 5. Interactivity 1. two-way communication 6. Information density 1. the total amount and quality of information available to all market participants 7. Personalization/customization the targeting of marketing messages to specific individuals by adjusting the message to a person s name, interests, and past purchases 8. Social technology Development of E-Business : First Phase People think that they have to have online presence : Second Phase Buying and selling over digital media After 2000 Focus on how internet can impact profitability 7

Universal standards 4. Information richness 1. the complexity and content of a message 26 Information Richness http://www.internetlivestats.

8 Web The Internet started in 1969 as the ARPANET, a network for academic and military use. Web pages and browsers appeared in The first generation of e-business was like a gold rush. Between 2000 and 2002, more than 500 internet firms shut down in the U.S. By Q4 2003, almost 60% of public dot-coms were profitable. DEVELOPMENT OF INTERNET AND WEB E-Business to Just Business PETS.COM CASE Exhibit 1.5 Pets.com was a former dot-com enterprise that sold pet supplies to retail customers. Excellent domain name!!! It began operations in August 1998 and closed in November Entrepreneurs should ask!!! Why should people buy from us? 8

By Q4 2003, almost 60% of public dot-coms were profitable. DEVELOPMENT OF INTERNET AND WEB E-Business to Just Business PETS.COM CASE 1-31 32 Exhibit 1.5 Pets.

9 33 What are the reasons of PETS.COM failure? Pet food and pet supplies were not the type of goods that the average consumer will order in advance and wait for 3-5 days to receive. Pets.com couldn t compete with the convenience of local pet stores and grocery stores. 12,000 different products Low value-to-weight ratio Shipping costs of pet food Pet products in all shapes, sizes and weights No sustainable advantage over a tradional store!!! Power Shift from Companies to Individuals Web 2.0 Web Web 1.0 connected people to networks. Web 2.0 connected people with machines and each other. Web 2.0 is the second generation of internet technology and includes: Blogs Social networking Photo, video, and bookmark sharing The newest technologies allow marketers to focus on user: Engagement Participation Co-creation Definition A description of the web around 2009 incorporating high- speed connectivity, complex cross- community interactions, full range of digital media (text, voice, video) and an intelligent or semantic web where automated applications can access data to perform complex tasks. 9

12,000 different products Low value-to-weight ratio Shipping costs of pet food Pet products in all shapes, sizes and weights No sustainable advantage over a tradional store!

10 Copyright 2015 Pearson Education, Inc. 2/24/2015 Types of E-commerce 37 May be classified by market relationship or technology Business-to-Consumer (B2C) Business-to-Business (B2B) Consumer-to-Consumer (C2C) Mobile e-commerce (M-commerce) Social e-commerce Local e-commerce The Growth of B2C E-commerce in the U.S. Figure 1.3, Page 19 The Growth of B2B E-commerce in the U.S. Figure 1.4, Page 20 SOURCE: Based on data from emarketer, Inc., 2014b; authors estimates. SOURCE: Based on data from U.S. Census Bureau, 2014; authors estimates. Slide

(B2B) Consumer-to-Consumer (C2C) Mobile e-commerce (M-commerce) Social e-commerce Local e-commerce The Growth of B2C E-commerce in the U.

11 Copyright 2015 Pearson Education, Inc. 2/24/2015 E-business: A Brief History (Cont.) E-Business is Bigger than the Web Present: Reinvention Rapid growth of: Online social networks Mobile platform Local commerce Entertainment content develops as source of revenues Transformation of marketing Coordinated marketing on social, mobile, local platforms Analytic technologies The Web is the portion of the internet that supports a graphical user interface for hypertext navigation with a browser. The Web is what most people think about when they think of the Internet E-Business is Bigger than Technology The internet provides individual users with convenient and continuous access to information, entertainment, and communication. Communities form around shared photos, videos, and online profiles. The digital environment enhances processes and activities for businesses. Societies are enhanced through more efficient markets, more jobs, and information access. Understanding E-business: Organizing Themes Technology: Development and mastery of digital computing and communications technology Business: New technologies present businesses with new ways of organizing production and transacting business Society: Intellectual property, individual privacy, public welfare policy Slide

Transformation of marketing Coordinated marketing on social, mobile, local platforms Analytic technologies The Web is the portion of the internet that supports a graphical user interface for

12 Academic Disciplines Concerned with E-commerce Slide 1-45 Technical approach Computer science Management science Information systems Behavioral approach Information systems Economics Marketing Management Finance/accounting Sociology 12

Information systems Behavioral approach Information

E-commerce. business. technology. society. Kenneth C. Laudon Carol Guercio Traver. Third Edition. Copyright 2007 Pearson Education, Inc.

E-commerce. business. technology. society. Kenneth C. Laudon Carol Guercio Traver. Third Edition. Copyright 2007 Pearson Education, Inc. Copyright 2007 Pearson Education, Inc. Slide 1-1 E-commerce business. technology. society. Third Edition Kenneth C. Laudon Carol Guercio Traver Copyright 2007 Pearson Education, Inc. Slide 1-2 Chapter