© 2005 Prentice Hall 17-1 Chapter 17 The Digital Revolution and Global Electronic Marketplace PowerPoint By Kristopher Blanchard North Central University
Dec 18, 2015
© 2005 Prentice Hall 17-1
Chapter 17 The Digital Revolution and
Global Electronic Marketplace
PowerPointBy
Kristopher BlanchardNorth Central University
© 2005 Prentice Hall 17-2
The Digital Revolution: A Brief History
1937 to 1942 world’s first electronic digital computer was developed at Iowa State University
1947 the transistor was invented
1950’s saw the invention of the silicon chip
1970’s was the decade for companies like Atari, Commodore and Apple
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The Digital Revolution: A Brief History
1981 IBM introduced is first Personal Computer (PC)
1984 Apple introduced the Macintosh
1982 the 286 microprocessor was unveiled
1993 was the creation of the Pentium
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The Digital Revolution: A Brief History
1969 is where the Internet can trace its origins (Defense Advanced Research Projects Agency)1972 E-mail was sent for the first time1973 saw the creation of a cross-network protocol; the true birth of a network of networks or the Internet1993 Tim Berners-Lee invented URL, HTML and Http. Also the first commercial browser was createdIn 1993 there were 600,000 web users; in 2003 there are an estimated 580 million PCs accessing the Internet
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Convergence
A term that refers to the coming together of previously separate industries and product categories
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Value Networks and Disruptive Technologies
Innovator’s Dilemma
Value Network
Sustaining Technologies
Disruptive Technologies
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Global E-Commerce
In 2003, global e-commerce revenues stood at $1.6 trillion and growing According to a report released by the University of California-Berkeley, in 2002, five exabytes of information—an amount equal to every word spoken by humans—were generated worldwide. China has more than 68 million Internet users; in Shanghai, Beijing and Guangzhou, one-third of all residents use the Internet. Japan has about 60 million Internet users, and Japan accounted for $1.6 billion in online revenue in 2004.
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Global E-Commerce
Can be divided into 3 broad categories– Business to Business (B2B)– Business to Consumer (B2C)– Consumer to Consumer (Peer-to-Peer)
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Web Sites
Classified by Purpose– Promotion sites to promote goods or services– Content sites that provide new and
entertainment– Transaction sites allow consumers to purchase
goods and services
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Web Sites
Companies must be willing to integrate interactive media into the marketing mix
Can be developed in house or by an outside firm
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Web Sites
“Shopping on the Internet is no different than traditional sales channels. It’s all about trusting the brand and having a strong
relationship with one’s customers.”
—Ron Fry, Internet Business Manager, Lands’ End
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Web Sites
Things to consider when creating a global Web Site– Localize the Web site in the native language
and business nomenclature of the target market– Should reflect local culture, customs, and
aesthetic preferences– Privacy
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Web Sites
What makes a ‘good’ Web site?– Technology and functionality. This category includes
layout, ease of navigation, and print-out opportunities. Does the site offer interactive functions such as order forms and e-mail subscriptions?
– Content. This category includes e-mail address information for key people or corporate functions; corporate information such as mission, vision, and company history; and financial information such as quarterly reports in PDF or HTML format.
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Broadband
Has sufficient capacity to carry multiple voice, data, or video channels simultaneously
Bandwidth determines the range of frequencies that can pass over a transmission channel
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Broadband
Creates opportunities for streaming audio, video, and media
On-line gaming
Online education
Medical diagnosis and treatment
E-Commerce
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Mobile Commerce and Wireless Connectivity
Mobile commerce or M-commerce is the term for conducting commercial transactions using wireless handheld devices such as PDA’s
Wi-fi – (Wireless Fidelity) permits laptop and PDA users to establish high-speed wireless Internet connections
Bluetooth – uses less power than wi-fi, works well with cell phones and covers shorter distances than wi-fi
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Smart Cell Phones
400 million cellular handsets are sold annually
Smart phones give users some of the capabilities of computers – currently 5% of the market
Cell phone users bought 5 million ring tones in 2003
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Technology Forecast
By 2008, the global market for cell phone games could reach $7 million.
- Strategy Analytics
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Internet Phone Service
The next big thing for the telecommunications industry
Has the potential to render the current telecommunications infrastructure obsolete
Currently only accounts for 3% of total global calling
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Innovator’s Dilemma
Innovator’s Dilemma – Staying committed to a current, profitable
technology – Failing to provide adequate levels of
investment to new and riskier technologies – Company is responding to the needs of
established customers
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Value Network
Found in every industry
Cost structure that dictates the margins needed to achieve profitability
Boundaries are defined by the unique rank ordering of the importance of various product attributes
Each network has its own metrics of value
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Sustaining Technologies
Incremental or radical innovations that improve product performance
Most new technologies developed by established companies are sustaining in nature
The vast majority of innovations are sustaining in nature
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