E-COMMERCE

PRESENTER:
P O N D A V I L L A , A N D R I A N E P.
OBJECTIVES FOR
CHAPTER 1
a. Know and explain the evolution of information and
communication technology in relation to the general
conduct of trade and commerce;
b. Discuss the role played by telecommunication facilities and
computers in relation to the conduct of the
eCommerce/eBusiness;
c. Distinguish the basic functions and benefits of information
and communication technology;
d. Discuss the capabilities of information technologies and
their organizational make-up in the industry and business
organizations; and
e. Appreciate how information and communication
technology support value chain activities and
eCommerce/eBusiness.
 LET’S PLAY EVOLUTION
A GAME!
- “may be defined as any net
directional change or any
cumulative change in the
characteristics of organisms or
populations over many
generations”
STANDFORD ENCYCLOPEDIA OF
PHILOSOPHY
 LET’S PLAY
A GAME!

DEVELOPMENT
• a process that creates growth, progress,
positive change or the addition of
physical, economic, environmental, social
and demographic components.
- Sid Israel (economist)
 LET’S PLAY
A GAME!

INNOVATION
- is a process by which a domain, a product, or
a service is renewed and brought up to date by
applying new processes, introducing new
techniques, or establishing successful ideas to
create new value.
- Harvard Business School
DOES CHANGE IS
INEVITABLE?

eCommerce
EVOLUTION

CHANGE

DEVELOPMENT INNOVATION
 THE
CHAPTER 1 CHANGING
LANDSCAPE
TO P I C 1

OF THE EARTH
THE CHANGING LANDSCAPE OF THE
EARTH
• Planet earth has changed its face from what was
once forested mountains and valleys to what is now a
community of humans and developed regions as well
as cities.
- many of them are now connected to
electrical power lines
- allowing the use of electro-mechanical
devices, some of them capable of doing home-
based livelihood opportunities.
- promote convenience and enhance
productivity resulting to the so-called small-
scale industries or micro enterprises.
 THE CHANGING LANDSCAPE
OF THE EARTH
• During the last 2000 years, humanity has witnessed a
variety of inventions, innovations and developments
that have propelled its growth and have given mankind
the convenience as well as comforts. While there are
pros and cons, it cannot be denied that in many ways,
technologies have played.

- cities and regions are now mushroomed with

concrete-based structures and skyscrapers as
well as steel-based structures with
electrical/electronic cable lines connecting them
for its power and telecommunications needs.
THE CHANGING
LANDSCAPE OF THE EARTH
• The last quarter of the 20th century has shown
humanity the use of its human talent and skills
leading to a variety of inventions and discoveries.
Among these are inventions and innovation in the
area of medicine and mechanical as well as
electrical and electronic communications.

CHANGE IS INEVITABLE

“THE ONLY WAY TO MAKE SENSE OUT OF

CHANGE IS TO PLUNGE INTO IT, MOVE WITH IT,
AND JOIN THE DANCE.”
- ALAN WATTS
 ENTRY
CHAPTER 1
TO P I C 2 OF VARIOUS
TECHNOLOGIES
 THE EVOLUTION OF DIGITAL ECONOMY
7
PRESENT DAY
ENTRY OF VARIOUS 6

TECHNOLOGIES

WORLD ECONOMY
5 DIGITAL
ECONOMY
4
GLOBAL
- This figure indicates a slow ECONOMY

growth of development from the 3

agrarian economy towards the SERVICE

2 ECONOMY
industrial and service economy
and how it reaches the DIGITAL INDUSTRIAL
1
ECONOMY
ECONOMY ERA. AGRICULTURAL
0 ECONOMY
1700 1800 1900 2000
Series 1 Column1 Column2
 WHAT IS DIGITAL
ECONOMY?
“A digital economy refers to the
transformation of everyday economic
activities, thus becoming digitalized and
increasingly dependent on the internet.
Online systems and establishments replace
traditional brick-and-mortar structures.
Information and communication technology
is the backbone of a digitalized economy.
And the internet, fueled by
hyperconnectivity, is its most important
part.”
- Dheeraj Vaidya (CFA, FRM)
 INTERNET as MASS
ENTRY OF VARIOUS MEDIUM-NORTH AMERICAN
TECHNOLOGIES ADOPTATION CURVES

Figure 2

Figure 2 and Table 1, however,

revealed astonishing figures on
the growth and level of adoption
of cable and Internet technology
vis-à-vis radio and television
system. The evolution and
adoption of information and
communication technology are
shown in Table 1.
Table 1
 CONCEPT OF
I N F O R M AT I O N
AND
C O M M U N I C AT I O N
TECHNOLOGY
CHAPTER 1
TO P I C 3
 CONCEPT OF INFORMATION AND
COMMUNICATION TECHNOLOGY

ln the era of the digital, economy The term information and

or the so-called information communication technology
age, the words information and (ICT) refers to a collective and
communication technology generic term that covers the
ICT) have become a byword or broad range of systems, devices,
a common terminology.This is hardware, peripherals as well as
particularly true among users variety of programs or software
and enthusiasts where used in conjunction with
computers any computers and
telecommunication systems are telecommunication devices in
part of the provisions of the aid of doing electronic-based
workplace. business transactions.
CONCEPT OF INFORMATION
AND COMMUNICATION
TECHNOLOGY
• Information Technology (IT)
- the use of any computers, storage, networking
and other physical devices, infrastructure and processes
to create, process, store, secure and exchange all forms of
electronic data

Information and Communication Technology (ICT)

- ICT is technology that supports activities involving
information. Such activities include gathering,
processing, storing and presenting data. Increasingly these
activities also involve collaboration and communication.
Hence IT has become ICT: information and communication
technology.
BASIC FUNCTIONS OF
I N F O R M AT I O N A N D
C O M M U N I C AT I O N
TECHNOLOGY

CHAPTER 1
TO P I C 4
BASIC FUNCTIONS OF INFORMATION AND
COMMUNICATION TECHNOLOGY

CAPTURE PROCESSING

James A. Senn (1998) categorize the six

basic functions of ICT.
These includes the following:
TRANSMISSION GENERATION

Perhaps owing to its direct relationship,

Senn has fused retrieval/storage function
in the diagram shown in Figure 3. RETRIEVAL STORAGE
BASIC FUNCTIONS OF INFORMATION AND
COMMUNICATION
TECHNOLOGY

CAPTURE FUNCTION - the way of using devices like

scanners and cameras thus allowing storage of vital data and
information for the future use. Below are some of the basic
examples and situations.
➢The voice and data recorders in aircraft cockpits capture the
pilot’s conversations and record flight data about the
aircraft’s location and performance.
➢When a performer does a live show, the entire performance
or a part of it is captured by audio systems and video
cameras then transferred later to a cassette or video tape or
compact disc (CD) for listening or viewing at a later time and
date
BASIC FUNCTIONS OF INFORMATION AND
COMMUNICATION TECHNOLOGY
• PROCESSING FUNCTION - (sometimes referred to as information processing)
is a function of ICT that involves the transformation of any type of information into
a different type of information. Text, Sound and Images can all be processed using
a computer and related device and application software.

Information processing may come in a variety of ways namely:

• Word processing- Involves the creation of text-based documents, including
reports, newsletters, and correspondence.
• Image processing- Includes converting visual information (drawing, graphics, and
photos) into a format that can be managed within computer system or transmitted
between people and other computers.
• Voice processing- Involves transformation and transmission of spoken information
BASIC FUNCTIONS OF INFORMATION
AND COMMUNICATION TECHNOLOGY

GENERATION FUNCTION - refers to the organization of

data and information to useful form, whether as number, text,
sound, or visual image. Sometimes, data or information is
regenerated in its original form.

Some other examples of generation function are the following:

• Tabulating questionnaire data into processable formats,
e.g., in Excel format
• Downloading data/information from the internet sources
• Creating tables and graphs from data on file
BASIC FUNCTIONS OF
INFORMATION AND
COMMUNICATION TECHNOLOGY

STORAGE and RETRIEVAL FUNCTION - The storage

function enables computers to keep data and information
for later use. Stored data and information are place on a
storage medium (e.g., magnetic disk, compact disk,
diskettes, USB storage devices, SD/micro-SD) that the
computer can read when it needs to.

• RETRIEVAL FUNCTION entails locating and copying

stored data or information for further processing or for
transmission to another user.
BASIC FUNCTIONS OF
INFORMATION AND
COMMUNICATION TECHNOLOGY

TRANSMISSION FUNCTION - a function of ICT that allows sending

data and information from one location to another. Telephone devices
transmit conversation from a point of origin to a destination around the
world. Computer systems do precisely the same thing, often using
telephone lines. There are two common forms of information
transmission, which are:

• Electronic mail - is typified by the acceptance, storage and

transmission of texts and image messages between users of
computer system.
• Voice messaging- Is a function of ICT that allows callers to leave
spoken messages entered though their telephone receiver.
CHAPTER 1 BENEFITS OF
ICT
TO P I C 5
 BENEFITS OF ICT
a) SPEED - is directly associated with computers and ICT.
Depending on the hardware specifications, speed of
computing tasks can be as fast as split-second. As Senn
(1998) has pointed in fact, computers do everything in
fractions of a second.

b) CONSISTENCY - is another benefit as compared

with what humans can do. People often have difficulty
doing repetitive and monotonous actions.

c) PRECISION - is another aspect unmatched by

humans particularly in doing a multitude of simultaneous
tasks or a number of products or services at any given
time.

d) RELIABILITY - is another benefit that can be

expected from computers given the appropriate work
environment the machines deserve
 “TECHNOLOGY IS A USEFUL
S E R V A N T B U T, A D A N G E R O U S
MASTER.”

- CHRISTIAN LOUS LANGE

- E N D O F R E P O R T-
RESOURCES:
• https://aims.fao.org/information-and-communication-
technologies-
ict#:~:text=Information%20and%20Communication%20
Technologies%20(ICTs,other%20media%20applications
%20and%20services
• https://www.techopedia.com/definition/24152/informati
on-and-communications-technology-ict
• https://www.bizmanualz.com/leverage-
technology/using-ict-improves-business-processes.html
• https://www.confederationcollege.ca/program/informati
on-communication-technology-ict-solutions-business