MINSOOSHIN©2012HANYANGUNIVERSITYe-BusinessWeek2MinsooShine-BusinessMINSOOSHIN©2012HANYANGUNIVERSITYLecturesasscheduledOverviewofe-BusinessIntroducinge-BusinessworldMINSOOSHIN©2012HANYANGUNIVERSITYFacebook:TheNewFaceofE-commerce?DoyouuseFacebook,andifso,howoften?Whathastheexperiencebeenlike?HaveyoupurchasedanythingbasedonanadvertisementonFacebookorbyusingalinkprovidedbyafriend?AreyouconcernedabouttheprivacyoftheinformationyouhavepostedonFacebook?MINSOOSHIN©2012HANYANGUNIVERSITYE-commerceTrends2011–2012SocialnetworkingcontinuestogrowExpansionofsociale-commerceplatformMobileplatformbeginstorivalPCplatformLocalizationofe-commerce(Groupon)ExplosivegrowthinonlinevideoviewingContinuedprivacyandsecurityconcernsMINSOOSHIN©2012HANYANGUNIVERSITYTheFirst30SecondsFirst16yearsofe-commerceJustthebeginningRapidgrowthandchangeTechnologiescontinuetoevolveatexponentialratesDisruptivebusinesschangeNewopportunitiesMINSOOSHIN©2012HANYANGUNIVERSITYWhatIsE-commerce?UseofInternetandWebtotransactbusinessMoreformally:DigitallyenabledcommercialtransactionsbetweenandamongorganizationsandindividualsMINSOOSHIN©2012HANYANGUNIVERSITYE-commercevs.E-businessE-business:Digitalenablingoftransactionsandprocesseswithinafirm,involvinginformationsystemsunderfirm’scontrolDoesnotincludecommercialtransactionsinvolvinganexchangeofvalueacrossorganizationalboundariesMINSOOSHIN©2012HANYANGUNIVERSITYWhyStudyE-commerce?E-commercetechnologyisdifferent,morepowerfulthanprevioustechnologiesE-commercebringsfundamentalchangestocommerceTraditionalcommerce:ConsumeraspassivetargetsSales-forcedrivenFixedpricesInformationasymmetryMINSOOSHIN©2012HANYANGUNIVERSITYUniqueFeaturesofE-commerceTechnologyIsubiquitous(availableeverywhere,allthetime)Offersglobalreach(acrosscultural/nationalboundaries)Operatesaccordingtouniversalstandards(lowersmarketentryformerchantsandsearchcostsforconsumers)Providesinformationrichness(morepowerfulsellingenvironment)Isinteractive(cansimulateface-to-faceexperience,butonaglobalscale)Increasesinformationdensity(amountandqualityofinformationavailabletoallmarketparticipants)Permitspersonalization/customizationSocialtechnologyMINSOOSHIN©2012HANYANGUNIVERSITYWeb2.0User-centeredapplicationsandsocialmediatechnologiesUser-generatedcontentandcommunicationHighlyinteractive,socialcommunitiesLargeaudiences;yetmostlyunprovenbusinessmodelse.g.,Twitter,YouTube,Facebook,SecondLife,Wikipedia,DiggMINSOOSHIN©2012HANYANGUNIVERSITYTypesofE-commerceClassifiedbymarketrelationshipBusiness-to-Consumer(B2C)Business-to-Business(B2B)Consumer-to-Consumer(C2C)ClassifiedbytechnologyusedPeer-to-Peer(P2P)Mobilecommerce(M-commerce)MINSOOSHIN©2012HANYANGUNIVERSITYTheInternetWorldwidenetworkofcomputernetworksbuiltoncommonstandardsCreatedinlate1960sServicesincludetheWeb,e-mail,filetransfers,etc.CanmeasuregrowthbylookingatnumberofInternethostswithdomainnamesMINSOOSHIN©2012HANYANGUNIVERSITYTheGrowthoftheInternet,MeasuredbyNumberofInternetHostswithDomainNamesSOURCE:InternetSystemsConsortium,Inc.,2011.MINSOOSHIN©2012HANYANGUNIVERSITYTheWebMostpopularInternetserviceDevelopedinearly1990sProvidesaccesstoWebpagesHTMLdocumentsthatmayincludetext,graphics,animations,music,videosWebcontenthasgrownexponentiallyGooglereports1trillionuniqueURLs;120billionpagesindexedMINSOOSHIN©2012HANYANGUNIVERSITYSpiderWebs,BowTies,Scale-FreeNetworks,andtheDeepWebWhatisthe“smallworld”theoryoftheWeb?Whatisthesignificanceofthe“bow-tie”formoftheWeb?WhydoesBarabasicalltheWeba“scale-freenetwork”with“veryconnectedsupernodes”?MINSOOSHIN©2012HANYANGUNIVERSITYWhatisthe“smallworld”theoryoftheWeb?Inthe“smallworld”theoryoftheWeb,everyWebpageisthoughttobeseparatedfromanyotherWebpagebyanaverageofabout19clicks.In1968,sociologistStanleyMilgraminventedsmall-worldtheoryforsocialnetworksbynotingthateveryhumanwasseparatedfromanyotherhumanbyonlysixdegreesofseparation.OntheWeb,thesmallworldtheorywassupportedbyearlyresearchonasmallsamplingofWebsites.MINSOOSHIN©2012HANYANGUNIVERSITYWhatisthesignificanceofthe“bow-tie”formoftheWeb?TheresearchersdiscoveredthattheWebwasnotlikeaspiderwebatall,butratherlikeabowtie.Thebow-tieWebhada“stronglyconnectedcomponent”(SCC)composedofabout56millionWebpages.Ontherightsideofthebowtiewasasetof44millionOUTpagesthatyoucouldgettofromthecenter,butcouldnotreturntothecenterfrom.Finally,therewere16millionpagestotallydisconnectedfromeverything.MINSOOSHIN©2012HANYANGUNIVERSITYWhydoesBarabasicalltheWeba“scalefreenetwork”with“veryconnectedsupernodes”?Barabasi’steamfoundthatfarfrombeingarandom,exponentiallyexplodingnetworkof8billionWebpages,activityontheWebwasactuallyhighlyconcentratedin“veryconnectedsupernodes”thatprovidedtheconnectivitytolesswell-connectednodes.Barabasidubbedthistypeofnetworka“scale-free”networkandfoundparallelsinthegrowthofcancers,diseasetransmission,andcomputerviruses.Asitsturnsout,scale-free”networksarehighlyvulnerabletodestruction.Destroytheirsupernodesandtransmissionofmessagesbreaksdownrapidly....MINSOOSHIN©2012HANYANGUNIVERSITYOriginsandGrowthofE-commercePrecursors:BaxterHealthcareTelephone-