ECommerce

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E-Commerce

• Jui Chao
• Shih-hao Hsieh
• Ryan Fedyk
• Tom Turner

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Electronic Commerce

• E-Commerce consists of the buying and selling of
  products or services over electronic systems such
  as the internet or other electronic systems.

Source Wikipedia, http//en.wikipedia.org/wiki/E_
commerce
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Two Types of e-commerce

• Business-to-Business
• - the buying and selling of goods and services
  between companies online or by means of other
  electronic systems
• Business-to-Consumer

Source Pan Western e-business team .
http//www.e-future.ca/sask/pdf/b2b_basics.pdf
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E-Commerce Product Share
Source Forrester Research, 2002.
http//www.oecd.org/dataoecd/34/36/1864439.pdf
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(No Transcript)
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Source Internet World Stats, June 2007
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Source Internet World Stats, June 2007
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Source Internet World Stats, June 2007
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Introduction to Taiwan
Also Known As Ilha Formosa, the beautiful
island. Area 35,980 square kilometersPopulatio
n 22.7 millionCapital Taipei CityLanguage
Mandarin (official), Taiwanese, and Hakka.
Religion Buddhism/Taoism/Christianity/Islam
Source EIU CountryData, 2006 estimates.
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Taiwan E-Readiness
Remarks1. Total population 22.73 million
(22,730,819) 2. Total households 7.2 million
(7245047) Source (2006 January) 1. Taiwan
Network Information Center 2. Ministry of
Transportation and Communications 3. Ministry of
Interior
11

SourcesPEW pew /internet http//www.pewinternet.o
rg
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The DOI serves as a tool for measuring citizens'
ability to access and use ICTs. It is a
composite index consisting of 11 indicators which
are grouped into three categories Opportunity,
Infrastructure and Utilization.
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E-commerce Status in Taiwan
53.1
57
58.9
USD Million
Currency Rate 33 NTD 1 USD
Source http//www.lib.tku.edu.tw/esource/webtopi
c/BusinessClass/ImformationMannage/reports/Inf_rep
ortslist.html
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Estimated Quarterly U.S. Retail Sales Total and
E-commerce
Source US Department of Commerce, August 2007
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Unique E-Commerce in Taiwan

• 1. Fortune-Teller
• Name
• http//clickfate.com.tw/namefate/namefate251.sh
  tml
• Birthday
• http//mindcity.sina.com.tw/east/MC-ziwai/index.
  shtml
• Feng-Shui (??)
• http//www.e-rent.com.tw/fengshui/

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Fortune-Teller(Cont.)

• Constellation
• http//mindcity.sina.com.tw/index.shtml
• The book of Changes(??)
• http//iching.shoppy.cc/
• Horoscope
• http//star.pchome.com.tw/
• The Five Elements The Eight Diagrams
• http//www.czu168.idv.tw/

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Unique E-Commerce in Taiwan

• 2. On-line Worship
• Buddhism
• http//areyo.virtualave.net/cgi-bin/light/lightind
  exd.htm
• http//web.thu.edu.tw/chiu/www/bpray/pray.htm
• Taoism
• http//www.intellect.com.tw/temple/
• Confucianism
• http//www.tccg.gov.tw/sys/SM_theme?page455019ae
• http//www.tccg.gov.tw/confucian/Chinese/a15.htm

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Higher Traffic

• Constellation
• Horoscope

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Lower Traffic

• Feng-Shui

• The book
• of Changes

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Online Gambling Estimates and Projections
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Online Poker Revenues

• Over 2 Billion in 2005, 30 times 2001 revenue

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Online vs. Offline Casinos From Casinos
Perspective

• Brick and Mortar have difficulty profiting from
  poker.
• Opportunity costs by not using space for slot
  machines.
• Adding another online table doesnt take up
  space.
• Low stakes available online attract beginners

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Unlawful Internet Gambling Act

• Bans American banks and credit card companies
  from completing transactions with Internet
  gambling companies
• Slipped in as rider bill to unrelated Safe Port
  Act
• The Act was passed at midnight on the day
  Congress adjourned for the 2006 Elections
  reading of last minute additions waived
• No separate vote was taken on the Gambling
  Enforcement Act itself.

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Bill Frist
Thinks AIDS can be transferred through sweat and
tears.
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Casino Lobbyists

• 25 Million spent in donations to politicians
  from gambling industry to ban online betting.
• Online companies responded with 1.3 Million in
  lobbying efforts the first half of 2007 in
  support of new legislation.

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Fallout

• 6 out of top 10 stopped accepting US customers
• 888 stock dropped over 50 following bills
  passing
• PartyGaming(PartyPoker) dropped 60 in the first
  24 hours and 75 overall

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Party Poker mucks hand
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Mobile Phone Gambling

• Expected to rise from 2B in 2006 to 23B in 2011.

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Legal Impact

• Is poker a game of chance?
• Poker sites/Third party providers offshore- not
  necessarily subject to US regulations
• Will FTC enforce regulations?
• Affiliates(advertising)
• Search Engines

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The Real Impact

• US players still play(legal or not)
• Companies, not people, feel the effects
• Becoming more expensive 3rd party providers
  added cost

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Popular Gambling Websites

• Bodog
• Sportsbook Poker
• Absolute Poker
• Poker.com
• PokerStars
• Full Tilt Poker

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US Online Gambling Deposit MethodsThird party
Providers

• Nucharge Prepaid phone card
• Echecks
• Paypal, Neteller no longer accepting US customers

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2007 Legislation

• Skill Game Protection Act - would legalize
  Internet poker, bridge, chess, and other games of
  skill. Has 35 co-sponsors.
• Internet Gambling Tax Act - would legislate
  Internet gambling tax collection requirements

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US defies WTO

• US goes against a 1994 World Trade Organization
  agreement by not allowing offshore online
  gambling
• WTO recently ruled against the US, saying they
  must comply or pay compensation
• US will not comply, vague on compensation
• Why join WTO?

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Definition of e-Government

• e-Government refers to governments use of
  information technology to exchange information
  and services with citizens, businesses, and other
  arms of government.

Source http//en.wikipedia.org/wiki/E-government
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E-Government Ranking by Countries

• Survey Based on the followings
• Online Information
• Electronic Services
• Privacy Security
• Disability Access
• Foreign Language Access
• Ads, Users Fees, and Premium Fees
• Public Outreach

Source Brown University http//www.insidepolitics
.org/egovtdata.html
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Main Reasons for Using E-Government
Source e-Usage at http//www.find.org.tw/eng/news
.asp?msgid290subjectid4pos0
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The Strategic Approach towards e-Government
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Promoting Service Outsourcing

• Share-in-saving
• Self-funded
• Self-funded-hybrid
• Operation outsourcing
• Application-service-provider (ASP)

Source Research, Development and Evaluation
Commission http//www.redc.gov.tw
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Investment in e-Government
From 2003 to 2006. Taiwan government has
invested US 370 million in e-Government
Project Averagely spent US92.5 million per year
on e-Government Project
I USD33 NTD
Source e-government progress in Taiwan Report
to CIA 40th conference http//www.zujee.com/data/
SiWanLiNian-GDPTaiwan-Annual-GDP1980-2006.htm
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RDEC Development Evaluation Commission
Source Research, Development and Evaluation
Commission http//www.redc.gov.tw
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Source Research, Development and Evaluation
Commission http//www.redc.gov.tw
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Centralized Government Portal
http//english.www.gov.tw/e-Gov/index.jsp
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Administrative Applications
1. Online Vehicle Oversight Service System

• Provide 21 application and payment services
• Payment of traffic fines
• Payment of auto fuel taxes
• Reporting of stolen motorcycles
• Reporting of change of motor vehicle ownership or
  address

Source Research, Development and Evaluation
Commission http//www.redc.gov.tw
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Administrative Applications
-Pay your taxes online
Source Research, Development and Evaluation
Commission http//www.redc.gov.tw
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Administrative Applications
2. Information Security of e-Government/Government
Certificate Authority
Source Research, Development and Evaluation
Commission http//www.redc.gov.tw
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Administrative Applications
3. The Electronic Exchange of Official
Documents-Paperless

• Reduce document transmission time-2 months to 2
  minutes
• Raised the level of automation
• 100,000 documents being exchanged every day
• Reduction in annual postage expense of around USD
  6.3 million

Source Research, Development and Evaluation
Commission http//www.redc.gov.tw
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Administrative Applications
4. Online Payment Services
Source Research, Development and Evaluation
Commission http//www.redc.gov.tw
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Administrative Applications
6. Handicap-Free Websites

• Set up web content accessibility guidelines 1.0
  in accordance with the WAI (Web Accessibility
  Initiative)of W3C
• According to the e-government report of 2006 by
  Brown University, Taiwan is continuously leading
  the other advanced countries in promoting
  websites for the disabled

7. Government Procurement System(GPS)

• Provide contractors government e-procurement
  services

Source Research, Development and Evaluation
Commission http//www.redc.gov.tw
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Administrative Applications
8. e-Housekeeper Service
Source Research, Development and Evaluation
Commission http//www.redc.gov.tw
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The impacts on implementation of e-government

• Government agencies are becoming more flexible
  and responsive
• Government becomes able to act faster
• Government service times are extended
• Government service points become ubiquitous
• An even broader range of government services is
  turning to be available
• The cost of government services is falling

Source Research, Development and Evaluation
Commission http//www.redc.gov.tw
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E-Government Service Quality SurveyConducted by
RDEC, 2006
Source Report to ICA 40th Conference September
2006
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Other Interesting E-commerce Businesses

• Virtual Classrooms
• Second Life
• Mobile-commerce

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Virtual Classrooms

• Universities include
• Harvard
• Pepperdine
• Drexel
• Rice
• North Carolina

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2nd Life

• Internet virtual world
• Launched in 2003
• Reportedly over 1 Million residents (corante)
• Residents can explore, meet other Residents,
  socialize, participate in individual and group
  activities, create and trade items (virtual
  property) and services from one another.

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Second Life

• Second Life's virtual currency is the Linden
  Dollar (Linden, or L) and is exchangeable for US
  Dollars in a marketplace consisting of residents,
  Linden Lab and real life companies.

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Second Life

• Some make up to thousands of US per month
• Can purchase land or islands
• Countries with Second Life embassies The
  Maldives, Sweden

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Get a First Life
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Mobile Commerce

• Mobile spending will pass the 500 million mark
  in 2008
• Sprint users spend an average of 9.75 on
  non-voice services such as downloadable music,
  ring tones, TV shows, maps, and directions
• mShopper use your cell phone to buy any product
  by giving product info and customer info

Source e-Commerce Times. http//www.ecommercetime
s.com/story/59330.html
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Life-Cycle of E-commerce Growth
Source Dryden, J. Business to Consumer
E-commerce Statistics. CONSUMERS IN THE ONLINE
MARKETPLACE OECD WORKSHOP ON THE GUIDELINES ONE
YEAR LATER Berlin, 13-14 March 2001.
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Online Privacy

• Lack of consumer confidence in online privacy is
  a major problem hampering the growth of
  e-commerce
• 94.5 of Americans including internet and
  non-internet users, are concerned about the
  privacy of their personal information when or if
  they buy online

Source Malhothra N. Marketing Research An
Applied Orientation 5th ed. p 275
63
Legal Issues

• To avoid legal issues, a franchise company should
  obtain appropriate authorizations and consents
  from its franchisees
• Ex privacy consents, warnings of online risk,
  disclaimers
• Provide order summaries
• Contractual terms with an I Agree button

Source Rogers, J., Bennett, C., Grewal,
S.E-commerce for Successful Franchisors.
Franchising World. Aug 2007. Vol. 39 Issue 8,
p23-24.
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Online Retailer Customer Satisfaction
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Developing Area

• E-commerce has less than a 2 share of the global
  economy as of 2006

Source Malhothra N. Marketing Research An
Applied Orientation 5th ed. p 275
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The Future of Ecommerce

• Large companies that implemented new Internet
  technologies saw improvements of 13 percent to
  21 in performance measures
• Small businesses with annual revenues of less
  than 10 million saw improvements of 40 percent
  to 50
• Room for growth - Still less than 1 of retail
  sales

http//www.ipowerweb.com/manage/business/trends/20
024.htm
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Estimated E-Commerce Revenue(Including Travel)

• Source Forrester Research

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Upcoming Holiday Sales

• Online retail sales are expected to increase by
  over 20 this season compared to 2006, surpassing
  39 billion
• According to JupiterResearchs U.S. Retail
  Holiday Forecast for 2007

Source Morphy, E. Report Cheery Outlook for
Holiday E-Shopping Season. E-Commerce Times
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How to Succeed

• Adapt as the market changes
• Simplicity
• Users do not want to click numerous times
• Add value to the purchasing process
• Free shipping, special online deals

Source http//www.school-for-champions.com/ecomme
rce.htm
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How to Succeed

• Ensure privacy and legalities
• Customer Service
• Purchase assistance, follow-up emails, help desk
• Pick a descriptive, memorable name
• -The business name is the web address
• -ex books.com, etrade.com, travelocity.com

Source http//www.school-for-champions.com/ecomme
rce.htm
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Overall Message

• E-commerce can prove effective when conducted
  properly. It is an area where businesses need to
  pay ongoing attention, as developing trends may
  provide them with an edge in the electronic
  marketplace.

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References

• Internet World Stats. http//www.internetworldstat
  s.com Accessed Sep 17,2007
• Nielsen Net Ratings http//www.nielsen-netratings.
  com Accessed Sep 17,2007
• Burns, E. The ClickZ Network. Top 10 Search
  Providers, 2007. Aug 30, 2007 http//www.clickz.c
  om/3626904 Accessed Sep 17, 2007
• United States Census Bureau. Quarterly Estimated
  E-Commerce and Retail Sales. U.S. Census Bureau
  News. Aug 16,2007. http//www.census.gov/mrts/www/
  data/html/07Q2.html. Accessed Sep 17, 2007.
• Wikipedia, http//en.wikipedia.org/wiki/E_commerce
  . Accessed October 12,2007.
• Assessing Organizational Innovation Capability
  and its Effect on E-commerce Initiatives.
  Journal of Computer Information Systems,
  Fall2007, Vol. 48 Issue 1, p133-145.
• Bills, Steve. Citi Launches Two Trials of Mobile
  P-to-P Technology. American Banker. Aug 6,2007,
  Vol. 172 Issue 150, p18-18.
• Rogers, J., Bennett, C., Grewal, S.E-commerce
  for Successful Franchisors. Franchising World.
  Aug 2007. Vol. 39 Issue 8, p23-24.
• Malhothra N. .Marketing Research An Applied
  Orientation. 5th ed. 2007. p 275.
• Pan Western e-business team . http//www.e-future.
  ca/sask/pdf/b2b_basics.pdf Accessed Oct
  15,2007.
• Dryden, J. Business to Consumer E-commerce
  Statistics. CONSUMERS IN THE ONLINE MARKETPLACE
  OECD WORKSHOP ON THE GUIDELINES ONE YEAR LATER
  Berlin, 13-14 March 2001. http//www.oecd.org/data
  oecd/34/36/1864439.pdf
• Jupiter Internet Shopping Model
• Morphy, E. Report Cheery Outlook for Holiday
  E-Shopping Season. E-Commerce Times. Oct 23,
  2007. http//www.ecommercetimes.com/story/59964.ht
  ml

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References

• Berger, C. How to Succeed in e-Commerce.
  Chartec Magazine. Feb 2002. http//www.bgatereport
  er.com/assets/bgate/b88.pdf
• School for Champions http//www.school-for-champi
  ons.com/ecommerce.htm Accessed Oct 23,2007
• Regan, K. Sprint Cuts Ribbon on Mobile Shopping
  Service. E-commerce Times. Sep 13, 2007.
  http//www.ecommercetimes.com/story/59330.html