Mgmt. 298D: Electronic Commerce
Prof. A. Geoffrion

"The Emerging Digital Economy"




Ch. 1  The Digital Revolution (+ Appendix 1)

See Hobbes' Internet Timeline at http://info.isoc.org/guest/zakon/Internet/History/HIT.html


Ch. 2  Building Out the Internet (+ Appendix 2)
 

Ch. 3  E-Commerce Between Businesses (+ Appendix 3)

Drivers:

1. Lower Purchasing Costs

2. Reduced Inventories/Right Products in Stock (hence lower inventory-related and G&A costs, lower mfg costs)

3. Lower Cycle Times to build a product (reduces time-dependent costs, usually found among "fixed" costs)

4. More Efficient and Effective Customer Service

5. Lower Sales & Marketing Costs

6. New Sales Opportunities

Issues (inhibitors): uncertainty about
1) Legal environment

2) e-Commerce taxation

3) Internet's performance, reliability, security


Ch. 4  Digital Delivery of Goods and Services
(+ Appendix 4)

Drivers for news, info, entertainment:

1. Increasing Consumer Demand

2. Lower Capital and Distribution Costs

3. Expected Shift in Ad Revenues to Internet

Drivers for travel:
1. Lower Sales & Marketing Costs

2. Increased Consumer Choice & Convenience

Drivers for retail banking:
1. Lower Operating Costs

2. New Service Opportunities

3. One-to-One Marketing Opportunities

Drivers for insurance (term life, auto, homeowners):
1. Lower Sales & Service Costs

2. Increased Competition

3. New Sales Opportunities

4. Increasing Consumer Demand

Issues (inhibitors):
1) Protecting copyrights and IP

2) Need for greater bandwidth


Ch. 5  Retail Sale of Tangible Goods & Services
(+ Appen. 5)

Drivers for Consumers:

1. Convenience

2. Ease of Research

3. Good Prices

4. Good Selection/Availability

Drivers for Business:
1. Cost Savings

2. Customized Marketing

3. New Sales Opportunities

4. Consumer Convenience

Issues (inhibitors):
1) Web consumer ability to judge quality

2) Inconvenience of returning merchandise

3) Concerns re credit card security, consumer privacy

4) Uncertain legal & regulatory environment


Ch. 6  Consumers in the Digital Age

Recap of drivers for consumers:

1. More choices

2. More purchase-related info

3. Greater convenience

4. More individualized service

5. Perhaps lower prices and higher quality

6. Better availability


Ch. 7  Workers in the Digital Age (skipped)
 

Ch. 8  Challenges Ahead (role of government)

See www.ecommerce.gov for details.