3/1/021 electronic commerce -- what went right? what went wrong? what does the future hold?...

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Electronic Commerce -- What went right? What went wrong? What does the future hold?

Presenter: Dr. H.E. (Buster) DunsmoreAssociate Professor, Computer SciencePurdue University

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Presented by Barnes & Thornburg BTECH Group

Also sponsored by:

New Economy New Rules Briefing

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BTECH * Business and Technology Group of Barnes & Thornburg * www.btlaw.com© 2001 Barnes & Thornburg. All Rights Reserved. This page may be freely copied and distributed as long as it is kept intact and the copyright notice appears.


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Electronic CommerceWhat went right?

What went wrong? What does the future hold?

Dr. H.E. (Buster) Dunsmore

Department of Computer Science

Purdue University

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Electronic Commerce

• Commerce = negotiated exchange of products and/or services between buyer and seller

• New developments have become part of commerce through centuries– cargo ships, printing press, railroad, telephone

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Electronic Commerce 2• Internet and World-Wide Web began to be

used in commerce in 1990s– birth of Electronic Commerce (e-commerce)

• Result of:– Invention of Web

– Proliferation of fast PCs with audio and video capabilities

– Internet access through fast modems and Internet Service Providers (ISPs)

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What Went Right?

• Easy Internet connectivity

• Web advances in presenting information and interactivity

• Websites to learn about businesses, organizations, products, services

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What Went Right 2

• FAQs, customer support, telephone and e-mail contact information

• E-Mail and chat correspondence

• Web-based ordering, status checking, tracking

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What Went Right 3

• 24-hour availability, global reach, multimedia, always up-to-date

• Web access to bank accounts, credit card accounts, investment portfolios

• Payment via credit card and bank account

• New businesses based entirely on Web invented (for example, auctions)

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What Went Wrong?

• Organizations not ready for volume of traffic on Websites

• Poor navigation, difficulty getting around on Website

• Poor reliability– lost and faulty orders, disconnection from

Website

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What Went Wrong 2

• Lack of human contact in case of trouble

• Lack of privacy and security

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What Went Wrong 3

• Junk mail and spam– e-mail containing unsolicited ads to consumers

and other business prospects

• Companies did not develop good business models for Web

• Some businesses based entirely on Web sales have vanished

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What Went Wrong 4

• No viable model has yet been developed for distance learning

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What Does the Future Hold?

• Organizations learn how to integrate Internet/Web with everything else ... including educational organizations incorporating distance learning

• Customers expect organization to have Web access for information and transactions

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What Does the Future Hold 2

• Customers will have access to Web wherever they are

• Connectivity speeds will continue to increase

• Reliability will get better– greatly decreasing lost and faulty orders,

disconnection from Website

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• Organizations gather data about prospects and customers in unprecedented amounts– through site registration, questionnaires, and as

part of taking orders

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• Online stores can tell who comes to their Website– What products they look at

– How long they stay

– Which promotions they respond to

– What they buy

– How many leave without making a purchase

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• Better use of ads– “Neilsen" ratings for Websites

– Targeted ads

– Visit-specific ads

• Electronic payment systems– credit card, bank funds transfer, ecash

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• Better privacy and security

• Opt-in e-mail– customers voluntarily sign up to receive e-mail

about product categories or other subjects they are interested in

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• Lower transaction costs– If an e-commerce site is implemented well, the

Web can significantly lower both order-taking costs up front and customer service costs after the sale

• Larger purchases per transaction– Customer can be presented "what other people

who ordered this product/service also purchased”

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• Larger catalogs– A company can present a catalog on the web

that would never fit in an ordinary mailbox (for example, Amazon's 3,000,000 books)

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• Integration into the business cycle– A Website that is well-integrated into the

business cycle can offer customers more information than previously available.

– For example:• manufacturing, shipping, tracking like Dell and

Fedex do now

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• Improved customer interactions– With automated tools it is possible to interact

with a customer in richer ways at virtually no cost.

– For example:• the customer might get an e-mail when the order is

confirmed, when the order is shipped, and after the order arrives

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Electronic commerce will become an integral part of

commerce

Thank You

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High Tech Tuesday: March 12, 2002

20 Years in the Technology Arena

David Becker, CEO of First Internet Bank

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Also sponsored by:


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Next Session: April 5, 2002

Computer Crimes: The Challenges We Face

Russ Fox, FBI Special Agent for Computer Crime

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Also sponsored by:


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3/1/021 electronic commerce -- what went right? what went wrong? what does the future hold?...

Documents

telephone slide

website slide

electronic commerce

security slide

transactions slide

distance learning slide

web sales

uptodate web access