Electronic Commerce –Lessons Learned and a

Look to the Future

Electronic Commerce –Lessons Learned and a

Look to the Future

Dr. H. E. (Buster) DunsmorePurdue University

Department of Computer Sciences

Dr. H. E. (Buster) DunsmorePurdue University

Department of Computer Sciences

Electronic CommerceElectronic Commerce

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

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

• 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)

What Went Right?

• Easy Internet connectivity• Web advances in presenting information

and interactivity• Websites to learn about businesses,

organizations, products, services, FAQs, customer support, telephone and email contact information

• Email and chat correspondence

What Went Right?

• Web-based ordering, status checking, tracking

• 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)

What Went Wrong?

• Organizations not ready for volume of traffic on Websites

• Poor navigation, difficulty getting around Website

• Poor reliability – lost and faulty orders, disconnection from Website

• Lack of human contact in case of trouble• Lack of privacy and security

What Went Wrong?

• Junk mail and spam – email 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

• No viable model has yet been developed for distance learning

What does the future hold for electronic commerce?

• 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

• 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

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

• 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

• Better use of ads – “Neilsen” ratings for Websites, targeted ads, visit-specific ads

• Better privacy and security

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

• Opt-in email – customers voluntarily sign up to receive email about product categories or other subjects they are interested in

• 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”

• 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)

• 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.

• 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 email when the order is confirmed, when the order is shipped, and after the order arrives.

• Electronic commerce will become an integral part of commerce

What does the Future Hold for Internet and

Computing Technology?

Networking TechnologyNetworking Technology

Power-Line NetworkingPower-Line Networking

Way to connect computers in home or office using electrical wiring

• More convenient than phone lines

• Connect computer to network through the outlet that provides power

• Data travels through electrical wiring

• Requires no new wiring and adds no cost to electric bill

• Power-line networking is inexpensive method for connecting computers in different places in home or office

Power-Line NetworkingPower-Line Networking

Wireless NetworkingWireless Networking

• Creates network by sending infrared or radio signals between computers

• Better than Power-line networking; some computers are not “plugged in” to electrical outlet

• Laptop with wireless network card is completely portable throughout home or office

• IrDA (Infrared Direct Access) is standard for devices to communicate using infrared light pulses

• Infrared devices must be in direct line of sight with each other (like TV remote… which uses same infrared technology)

• Infrared is almost always “one to one” technology

• Radio signals better because no line of sight requirement and ability to broadcast to multiple recipients

Wireless NetworkingWireless Networking

BluetoothBluetooth• Bluetooth is new standard being developed

by a group of electronics manufacturers

• Will allow any sort of electronic equipment to communicate with each other

• Can be used among computers, keyboard, mouse, printer, headphone, cell phone

• Bluetooth-like radio communications should take place of wires or infrared signals for connecting devices

BluetoothBluetooth

• Very small radio module to be built into each device

• Wireless: No need for cables or cords to any device

• Inexpensive: Should add only about $5-10 to price of product

• Simple: Devices find one another and strike up conversation without any work on your part

• Why is it called Bluetooth?•Harald Bluetooth was king of Denmark

around the turn of the last millenium•He united Denmark and part of

Norway into a single kingdom

BluetoothBluetooth

About 120 universities and 25 corporate sponsors are working on better Internet infrastructure “Internet 2”

The Next Generation Internet

The Next Generation Internet

The Next Generation Internet

The Next Generation Internet

• Larger bandwidth• Faster speeds• Better reliability• Better security• Better compression techniques (smaller

files to be transmitted)• Caching – leaving copies around closer

to the point of need• All developments will eventually

become part of standard internet

Internet Protocol Version 6 (IPv6)

Internet Protocol Version 6 (IPv6)

Today’s Internet uses Internet Protocol Version 4 (IPv4) – approximately 20 years old

Internet Protocol Version 6 (IPv6) (also called IPng) will eventually replace IPv4

• IPv6 fixes a number of problems in IPv4, such as limited number of available IPv4 addresses

• IPv6 goes from 32 to 128 bits per address

• If whole Earth was a beach, more than enough IP addresses for every grain of sand ... hope that will be enough

• IPv6 also routes messages better, auto-configures for missing computers, and includes security components for encryption and authentication

Internet Protocol Version 6 (IPv6)

Internet Protocol Version 6 (IPv6)

• Researchers have recently made breakthroughs in developing displays out of polyethylene terephthalate (PET)

• Thin, flexible, rugged plastic that you can bend, roll up, fold, or form into practically any shape

Consumer Computer Technology

Consumer Computer Technology

Plastic DisplaysPlastic Displays

Plastic DisplaysPlastic Displays

• Mass production of plastic displays is approximately five years away

• Applications could include notebook and desktop displays, hand-held appliances

• Also, wearable displays sewn into clothing, and paper thin electronic books and newspapers

Wearable ComputersWearable Computers• Obvious applications like

hearing aids with sound enhancement software

• “Glasses” with multi-informational display about what is being seen, where you are

• Wrist computers, PDAs, cell phones

• Next step is computerized clothing• Including computers in standard clothing items like shoes, pants, shirts, jackets, belts…even underwear

Wearable ComputersWearable Computers

Uses include….• Health related – monitor blood pressure,

pulse rate, blood sugar, useful for life threatening conditions that need continual monitoring

• Navigation – directions, maps, airline information, restaurant and hotel information

• Safety and security – connections to police, fire, medical, auto towing and repair

• Entertainment – music, news, video, sporting events

Wearable ComputersWearable Computers• Some of these devices already making their

way into consumer market

• Working to integrate computers and related devices directly into clothing, so that they are virtually invisible

• Interaction via sensors, all fabric keypads, speakers, voice recognition receivers, thin light-emitting diode (LED) monitors, flat screen (plastic) displays, holographic projectors

• Another step in making computers and devices portable without having to carry and manipulate plethora of gadgets