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Unit I the Dawn of a Maturing Industry First Things First UNIT I THE DAWN OF A MATURING INDUSTRY LESSON 1 FIRST THINGS FIRST CONTENTS 1.1.1 INTRODUCTION 1.1.2 FIRST THINGS FIRST 1.1.2.1 THE GOOD LIFE IN BLOGGING 1.1.2.2 THE DIGITAL DIVIDE 1.1.2.3 E-LEARNING 1.1.3 MARKS OF MATURITY AIMS AND OBJECTIVES In this lesson, we have discussed about the basics of E-commerce. After reading this lesson, you should be able to Define a blog. Define E-learning. 1.1.1 INTRODUCTION If you have a personal computer (PC) with a browser, you can connect to the internet and do business online. No more worries about programming. No more looking for phone numbers, paying long-distance charges, or keeping the store open late into the evening .Just get on the Web, launch an online store, and watch your business grow. It is that straightforward. Welcome to the wired world of business, where technology, human talent, and a new way of doing business make up today’s growing worldwide economy. The back bone of electronic commerce is the Internet. The wired world is not about technology; it is about information, decision making, and communication. The wired world is changing life for everyone - from the individual house-hold to the largest corporation. No business can afford to ignore the potential of today’s connected economy. If you look closely at the changes that have taken place during the past two decades, you find that computers, information technology, and networking have joined together to replace labor-intensive business across industries and in government. In banking, for example, the change has been seen in the widespread use of automated teller machines (ATMs), credit cards, debit cards, smart cards and Internet leading. This type of computer-based, bank-to-bank, 1 bank-to-consumer, and consumer-to-consumer transactional and informational exchange is what electronic commerce is all about. More recently, wireless transmission paved the way for consumers to shop, to trade, and to access information from anywhere at any time in a matter of seconds using a cell phone. Mobile commerce has taken on the “business of time”. It is already showing savings and adding value in business-to-business transactions and other Internet-based areas as well. In this lesson we cover the essence of electronic commerce - what it is, what it is not, where it is used, its benefits and limitations, and its impact on the value chain and supply chain management concepts of doing business. 1.1.2 First things first Welcome to the new world of electronic commerce (e-commerce or EC) – an industry that has matured in the United States in less than a decade. It is the industry of the twenty-first century, where you can now do business electronically and via satellite from virtually anywhere in the world that has a computer. Electronic commerce has brought dramatic changes to business firms, markets, and consumer behavior. In 2004 alone, e-commerce generated well over $100 billion in retail business and over $1.5 trillion business-to- business traffic. Nobody knows how much more mature it will become, but it has already been recognized as the fastest form of commerce on the planet. These lessons are about modern electronic commerce and how it has revolutionized the way we do business in the U.S and abroad. It is the new breed that grew out of the explosive growth period of 1995 to 2000. That time was a period of exploration, cost justification, and risky investment by big business with deep pockets like Wal-Mart, General-Electric, and General Motors. It was also the beginning of early birds like eBay, Amazon.com, and Expedia that survived the recession of 2001-2003. For each survivor, dozens have failed. That is one reason why we have, Web trash on the Internet. Hundreds of the once high-flying dot-com firms that entered the fray failed to make money, abandoned their Web sites, failed to update them, or simply lost interest in the whole venture. Before delving into this exciting industry, you should know what precipitated the revolution. It was the Internet – an international network of independent computer systems. It is the fastest superhighway of unmonitored information ever built. It is also the fastest-maturing tool for free enterprise. Speed and momentum are giving us a new way of doing businesses, saving time and energy in virtually all walks of life. Despite security, privacy, and other problems, the Internet has permeated virtually every phase of society – economic, social, psychological, political, and military. It is in households, in schools, in police cars, and aboard airplanes. A decade ago, it was a novelty; today, it is a necessary. We can now learn much faster and far more than we could before. 2 1.1.2.1 The Good life in Blogging The rise of specialized Web sites and Web logs (blogs) generated opportunities to read and write on a vast array of topics. You can chat, share, collaborate, and communicate knowledge (not just information) about virtually any topic any time, 24 hours a day, year round. My hobby is online backgammon. On command, a specialized Web site (zone.com) lines up an opponent from another country at my “expert” level, turns on the chat, sets up the backgammon table on the screen, keeps the score, and declares the winner – I never have to leave the comfort of my office at the farm. A blog is a shared online journal where people post entries about their hobbies or personal experiences on the job, on vacation, and so forth. (See www.blogger.com). Blogs are available on the Internet exactly like any other Web page. They are automatically indexed by search engines like Yahoo.com and Google.com. There are eight million personal blogs in the United States, according to the Pew Internet and American Life Project. People write blogs to talk about their days, family outings, or days gone away. But certain types of news or views can also get you in hot water, as reported in Box 1.1.1. On the international scene, blogging in China is causing the Chinese Communist Party some discomfort. This wrestling match of history is evidenced by self-appointed journalist Li Xinde’s www.yulunch.com. Xinde started the Chinese Public Surveillance Net, one of four million blogs in China. Some 100 million Chinese citizens now surf the net, use e-mail, and visit chat rooms. A growing number of Web dissidents have been arrested, but there just aren’t enough police to control the Internet (Kristof, 2005). BOX 1.1.1 Free Expression Can be Costly Under the pseudonym of and co-workers at the Durham (N. C) sarcastic Journalist, Rachel Mosteller Herald-Sun were well aware of her wrote this entry on her personal Web Web log. The day after that posting, log one day last April: she was fired. I really hate my place of Usually bloggers have little employment. Seriously, Okay, first protection. In most states, if an off. They have these stupid little employer doesn’t like what you say or awards that are supposed to boost share, they can simply let you go. It company morale. So you go and do seems that blogging is a good way to something “spectacular” (most improve communication between the likely, you’re doing your JOB) and employer and the employee and help then someone says “Why golly, that community building. Google Inc., the was spectacular.” Then they sign search engine company, has a blog for your name on some paper, they employees that share such things as bring you chocolate and some stories about the company dog and balloons. the person who creates the holiday art at Google.com. It sort of turned into a very informal access to the public. But 3 Okay two people in the newsroom Google had its own controversy just got it. recently when a blog by employee Mark Jen suddenly went dark, FOR DOING THEIR JOB. sparking a flurry of speculation on This post, like entries in what had happened to him. Google Mosteller’s online diary, did not name confirmed that Jen is no longer an her company or give her name. If did employee, but the company would not not name co-workers or bosses. It did discuss why. not say where the company was based. But apparently,Mosteller’s supervisors Today’s Internet promotes individualism. Consumers can personalize and customize their own products and their own communications universe. This means a dramatic increase in individual control over content and an obvious decrease in the power of intermediaries like newspapers and broadcasters. One positive side effect is to encourage collaboration and teamwork on special projects. The overall result is to widen our horizons and open the door for creativity and energy not experienced before. The 2004 presidential campaign was fought and advertised on specialized Web sites that could be accessed worldwide. Military personnel in Iraq and Afghanistan had no problem staying tuned into ongoing political activities at home. Internet-based political strategies included e-mail solicitations, donations, and online advertising. This is just one slice of the Internet pie. 1.1.2.2 The Digital Divide On the surface, everything about e-commerce seems rosy. One thing worth keeping in mind, however, is that computers are increasingly conditioning the country. The digital divide refers to the gap between the haves and the have not’s in computers, Internet access, access to information, and e- commerce. The divide has widened social gaps, especially among young people.
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