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Lecture 1

Lecture 1. About the Class. About Myself Syllabus LEARN & SHARE Don’t Bring to Class, Please – ego Administration of Class Get to know you and get to know me. Course Outline. What is Electronic Commerce (EC)? Now and Then Driving Forces What is ? Why EC? In the Eyes of Consumers

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Lecture 1

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  1. Lecture 1 eHospitalityAsia, Inc.

  2. About the Class • About Myself • Syllabus • LEARN & SHARE • Don’t Bring to Class, Please – ego • Administration of Class • Get to know you and get to know me eHospitalityAsia, Inc.

  3. Course Outline • What is Electronic Commerce (EC)? • Now and Then • Driving Forces • What is? • Why EC? • In the Eyes of Consumers • In the Eyes of Businesses • In the Eyes of Governments eHospitalityAsia, Inc.

  4. Outline • How to EC? • Models • Organization Infrastructure • Information & Internet Technology • Social and Ethnical Considerations • Legally Speaking • Governments • Future • Where is IT Heading? • What Others Are Saying? eHospitalityAsia, Inc.

  5. Back Office Front Office Book Store X • Peanuts • Garfield • Batman • Superman Doing Business is Simple eHospitalityAsia, Inc.

  6. Back Office Front Office Book Store X • Peanuts • Garfield • Batman • Superman Doing e-Business is ?? Mom-&-Pop Shop? Established Chain, e.g., B&N eHospitalityAsia, Inc.

  7. Electronic Commerce Everybody is talking about it: SCMP/Technology Post: November 23, 1999 (Tuesday) • e-Commerce revenues • 2,182 millions : 1999 • 5,543 : 2000; 87,467 : 2004 (International Data Corp.) • “Hong Kong-based Champion Technology is developing an electronic mall it hopes will attract retail tenants and evolve into one of the region’s main Web sites for cyber-shopping.” • “…e-Business is forming new business dynamics. The structure of companies is becoming more virtual. It’s either you go e-business or you go out of business.” Raymond Lane, president of Oracle. eHospitalityAsia, Inc.

  8. Electronic Commerce • “This is no longer a push economy where we send out the salespeople to push ideas to customers. It’s a pull economy where we allow our customers to interface with the supply chain, where the customer is king, where our business is totally transparent to the customer.” Lane. • “Don’t you get it? Internet access device is a network computer. Cell phone with a browser is a network computer. They are the same thing. They are all appliances to access the network, windows to the Internet. We saw it five years ago.” Larry Ellison, CEO, Oracle. • “The world is moving towards a broadband and networked environment. Digital content is what will drvie people to the network, and new digital hardware will enable consumers to manipulate it.” Nobuyuki Idei, President and CEO, Sony eHospitalityAsia, Inc.

  9. Comdex, Las Vegas Page 6: E-commerce merchants need to improve their operations and especially their relationships with customers, … E-commerce roadblocks include lack of high-speed connections and compelling on-line applications, security concerns and bad Internet experiences…John Chambers, president and CEO, Cisco Last year, many commerce sites were not equipped to handle the volume of traffice and exxperienced failures, which left orders unfilled and customers upset. During the holiday season, on-line merchants are expected to be plagued with orders for out-of-stock items, unfilled orders and ignored customer inquiries. In addition, on-line merchants need to simplify the shopping experience and provide an entertaining and pleasant environment, just like real-world stores. eHospitalityAsia, Inc.

  10. What is Your Opinion? eHospitalityAsia, Inc.

  11. First water-independent transportation infrastructure Passenger traffice; military Width of tracks (guage) Railway police hired to manage new crimes Steel production, accounting, logistics Industrial age (key enabler: steam engine) First global public information infrastrcuture Military and civil defense; research Network and communications protocols (TCP/IP) Security protocols and stands Software, networking, fiber optics Information age (key enabler: computer) Infrastructure Comparison(page 33, Treese & Stewart) New Infrastructure >> Original Purpose >> Importance of Standard >> New Security Challenges >> Source of innovation >> Accelerator > eHospitalityAsia, Inc.

  12. Before the Railroad Travel between New York and Boston in four days Transportation depends on weather and location of waterways Dispersed work force (92% of population in 1830 is rural) 8,000 U.S. time zones Vacation (if at all) near home Transport a ton of goods for 5-15 cents per mile (wagon or steamboat in 1825) After the Railroad Travel between New York and Boston in less than one day Transportation depends on the ability to lay rails Concentrated work force (50% population in urban) 4 U.S. Time Zone Vacation away from home Transport a ton of goods for 1 cent per mile (by rail in 1884) Historic View eHospitalityAsia, Inc.

  13. With Internet/EC No need to travel between any two cities; view them Transportation depends on traffic and your line speed Dispersed work force (telecommuter) One Time Zone (mine) Vacation in home or never take one Transport a ton of goods for much more than one cents because of inflation and other factors After the Railroad Travel between New Yock and Boston in less than one day Transportation depends on the ability to lay rails Concentrated work force (50% population in urban) 4 U.S. Time Zone Vacation away from home Transport a ton of goods for 1 cent per mile (by rail in 1884) What About Now eHospitalityAsia, Inc.

  14. 1972-1974 eHospitalityAsia, Inc.

  15. 1975-1976 eHospitalityAsia, Inc.

  16. 1977-1978 eHospitalityAsia, Inc.

  17. 1978-1979 eHospitalityAsia, Inc.

  18. 1980-1981 eHospitalityAsia, Inc.

  19. 1982-1983 eHospitalityAsia, Inc.

  20. 1983-1984 eHospitalityAsia, Inc.

  21. 1984-1985 eHospitalityAsia, Inc.

  22. 1985-1987 eHospitalityAsia, Inc.

  23. 1988-1990 eHospitalityAsia, Inc.

  24. 1990-1993(Source: IEEE Computer) eHospitalityAsia, Inc.

  25. 1993-1996(Source: IEEE Computer) eHospitalityAsia, Inc.

  26. 1997-1999 • e-Commerce • Servlets • XML • Merced • What else? eHospitalityAsia, Inc.

  27. Traditional Businesses Computer Stores Drug Stores BookStores Clothing Stores Supermarkets Banks eHospitalityAsia, Inc.

  28. E-Business Design • Not like introduction of a new product or a new service; infrastructure is already there • Many challenges • One new e-door: from nothing to something • Two doors: One existing (tradtional) door + one new e-door • Do these two doors lead to the same room (ideal), different rooms (tight interface), or the existing traditional business room (create chaos) • One Big e-door: with the existing door goes to the background and slowly migrate into the e-business side (www.egghead.com) eHospitalityAsia, Inc.

  29. E-Business Strategy Creation • Top down, analytic planning • Problems? • Bottom-up, “just do it” tactical planning eHospitalityAsia, Inc.

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