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ITM 350 Study Guide - Midterm Guide: Internet Of Things, Pinterest, Sitecore


Department
Information Technology Management
Course Code
ITM 350
Professor
Franklyn Prescod
Study Guide
Midterm

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350 E-commerce
C HAPTER 1: INTRO DUC TION
(pg 43) E-commerce growing towards the social and mobile concepts.
C ommercial transac tion exchange of value (money) across organizational/individual boundaries in return
for products/ services.
E-c ommerce use of Internet (network of computer networks), the web (internet’s service) and mobile apps
and browsers running on mobile devices to transact business. Digitally enabled commercial transactions.
Ex: Use of internet, web, mobile apps to make transactions with customers; aka DIG ITAL C O MMER C E
E-bus ines s digital enabling of transactions within a firm, involving information systems under firms control.
Doesn’t include commercial transaction. Ex: company’s online inventory control with suppliers which is
under the firms control
Traditional c ommerce:
Information as ymmetry: disparity in relevant market info among parties. Ex: prices were hidden
from consumer, creating profitable information asymmetry
Fixed prices : expensive to change prices
S ales-force driven
Mas s -marketing driven: Larger audience reached, less information richness ; printing press,
broadcast model (one to many) where content is created in central location.
C ons umer as pas s ive targets : influencing for long-term product perceptions and immediate
purchasing behavior; consumers were trapped by geographical and social boundaries, unable to
search widely for best price and quality.
Regional/loc al reach: only reaches limited networks to attract local customers
Marketplac e physical space for transaction. Ex: consumers go to S ephora to make a purchase
Markets pace beyond traditional boundaries and removed from temporal & geographical location
Reac h - total # of customers that can be obtained
Ric hnes s complexity and content of a message. Ex: face-to-face/personal services, visual cues
Menu cos t cost incurred by merchants in having to change product prices
E-Commerce’s 8 Features :
1. Ubiquity: the shop is available anywhere at all times (because online); reduces transaction costs
(time and travel costs) and cognitive energy (mental effort)
2. G lobal reac h: national networks to attract national audience.
3. Universal s tandard: technical standards of the internet/conducting e -commerce are universal
standards (shared by all nations around the world); Reduces market entry costs and (consumer)
search costs; price discovery becomes faster and more accurate. Network externalities (benefits
from everyone using same technology)
4. Information ric hnes s : technologies offer more information richness because they are interactive
and adjust the message to individual users. Ex: complex goods/services are sold through
interactive online sales person or emailing.
5. Interac tivity: two-way communication between merchant and consumer. Ex: televisions is only
one way, however smartphones, social networks, twitter have interactivity.
6. Information dens ity: quantity and quality of information available to all market participants.
Enables price (variety of prices) and cost (actual cost merchants pay) transparency; enables price
discrimination (selling same goods at different prices to different group) Ex: sell more expensive
goods to people willing to pay at premium price
o C os t trans parenc y ease of finding actual costs merchants pay
o Price trans parenc y ease of finding variety of prices
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350 E-commerce
7. Personalization/c us tomization (market of one customer): Personalization (adjusting message to
target individual); C ustomization (changing product/service based on individual preferences);
allows you to see your own preferred content.
8. S oc ial tec hnolog y: permits users to program own content consumption. Many-to-many model of
mass communication.
Types O f E-c ommerce:
B2C business selling to customers. Ex: retail goods
B2B business to other businesses. Ex: net marketplace , Facebook
C 2C consumers selling to consumers. Ex: Kijiji, C raigslist, Uber, eBay, Etsy
M-c ommerce (mobile) wireless networks connecting to laptops, smartphones and tablets to
conduct commercial transactions
S oc ial e-commerce social networks & online social relationships. Ex: Facebook, Twitter users
clicking ads., Twitter, Pininterest
Loc al e-c ommerce engaging consumer based on current geographical location. Ex: G roupon,
Uber, Airbnb
US Meas ures :
1. B2B: $6.3 Trillion (Largest)
2. B2C : $531 Billion (grown double digit rates 2010-2015)
3. Mobile: $128 Billion
4. C 2C : $100 Billion
5. Local: $25 Billion
6. S ocial: $3.3 Billion
Tablets: (159 mill)
Internet hosts (1 bill)
The Internet (1960) worldwide network of computer networks built on common standards. Includes
services like the web, email, file transfers, etc. Measured growth by numbers of internet hosts with domain
names.
The Web (1990s) Worldwide Web most popular internet service used to provide access to webpages
(HTML documents including text, graphics, animations, music, video); Ex: 60 trillion unique URLS (G oogle
reports), Deep Web 1000x greater
Mobile Most recent in internet infrastructure; enables internet via wireless networks. Includes tablets and
smartphones, ultra-lightweight laptops; Over 350 million mobile devices in US , expected to grow 370 mil. By
2019
Will Apps make the web irrelevant?
Ever since Apple launched the App S tore (2008) it had disrupted many industries. Uber is an app that had
disrupted the taxi industry. C onsumers are trying new apps all the time which give app developers time to
innovate. 2014 Americans uses apps more than desktop computers to access the internet. C onsumers
gravitate towards apps because they can be used anywhere in remote locations. However the depth of web
browsing increases the user experience. With the diverse array of sites and browsers. The use of HTML5 is
a new markup language that creates dynamic webpages. However there are more users transitioning to
mobile, which makes web-based companies prone to fall by the wayside.
Avg US consumer spends 2+ hrs a day using apps
Apps easier to control and monetize than websites
Users spend more time using apps than desktops/websites
280 million people launch apps more than 60 times a day
Prec ursors (1995)
Invention (1995-2000)
Retail
C ons olidatio n (2001-2006)
Retail + S ervices
Reinventio n (2007-Pres ent)
Retail + S ervices + C ontent
First sales of banner advertisement
Baxter healthcare
system
French Minitel (first
large-scale digitally
enabled transaction
system)
Key concepts developed: maintain basic
web site depicting firm’s brand
Limited bandwidth and media
Friction-free commerce: information
equally distributed, lowered search cost,
price transparency, elimination of unfair
competitive advantage
Business-driven approach
Traditional large firms expand
presence
S tart0up financing shrinks
More complex products/services
sold
G rowth of search engine advertising
Web 2.0: set of
applications & tech that
enable user-generated
content (blogs, social
networks, photo sharing,
video sharing and wikis)
Mobile platform grows
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350 E-commerce
Electronic Data
Interchange (EDI)
standards
Dec reas ed Dis intermediation: market
middlemen between producer and
consumer will disappear
Firs t-mover advantag es : a firm that is
first to market in a particular area and
moves quickly to gather market share
gets the most net profits.
Dot-com c ras h (2000)
Business Web Presences expand
(email, display and search
advertising, feedback features)
S trateg ic -follower s treng th
Local commerce
Entertainment content
develops
Transformation of
marketing
O n-demand personal
service businesses
S ocial phenomenon
Brand extension + strengthening > creating new
brands
Mobile, social and local e-commerce
In hopes to fulfill many early visions, there are some not fulfilled:
Friction-free commerce (transaction costs not decreasing)
Perfect competition
Intermediaries have not disappeared
Fast-follower advantages
Organizing themes :
Tec hnolog y: mastery of digital computing and communications technology, mobile messaging, Big
Data analytics (TC P/IP, HTML5, C S S )
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