7 essentials of business information systems chapter

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Unformatted text preview: still in its early stages 9.7 Essentials of Business Information Systems Chapter 9 E-Commerce: Digital Markets, Digital Goods Electronic Commerce and the Internet The Growth of E-Commerce Retail e-commerce revenues have grown exponentially since 1995 and have only recently “slowed” to a very rapid 25 percent annual increase, which is projected to remain the same until 2010. 9.8 Figure 9-1 Essentials of Business Information Systems Chapter 9 E-Commerce: Digital Markets, Digital Goods Electronic Commerce and the Internet Unique Features of E-commerce Technology • Ubiquity • Internet/Web technology available everywhere: work, home, etc., anytime. • Effect: • Marketplace removed from temporal, geographic locations to become “marketspace” • Enhanced customer convenience and reduced shopping costs 9.9 Essentials of Business Information Systems Chapter 9 E-Commerce: Digital Markets, Digital Goods Electronic Commerce and the Internet Unique Features of E-commerce Technology • Global reach • The technology reaches across national boundaries, around Earth • Effect: • Commerce enabled across cultural and national boundaries seamlessly and without modification • Marketspace includes, potentially, billions of consumers and millions of businesses worldwide 9.10 Essentials of Business Information Systems Chapter 9 E-Commerce: Digital Markets, Digital Goods Electronic Commerce and the Internet Unique Features of E-commerce Technology • Universal standards • One set of technology standards: Internet standards • Effect: • Disparate computer systems easily communicate with each other • Lower market entry costs—costs merchants must pay to bring goods to market • Lower consumers’ search costs—effort required to find suitable products 9.11 Essentials of Business Information Systems Chapter 9 E-Commerce: Digital Markets, Digital Goods Electronic Commerce and the Internet Unique Features of E-commerce Technology • Richness • Supports video, audio, and text messages • Effect: • Possible to deliver rich messages with text, audio, and video simultaneously to large numbers of people • Video, audio, an...
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