E Commerce and Travel
E-Commerce and Travel/Tourism
Issues and Challenges
Hannes Werthner
EC3 – E-Commerce Competence Center, Vienna IFITT
Context
• Globalization (alliances - mergers) and differentiation complexity • Convergence (also industries) and „cross overs“ • Information economy
– importance of digital products and information as integral partof economic activities (Bell 1973, Tapscott 1998)
• Network economy
– growing interdependencies among (economic) actors with network e ffects (Kelly 1999)
• Prosumption - from Customer-focused to Customer-driven • Acceleration of change • Digital Divide
Werthner, OECD Berlin 2001 2
1
Technological Trends
• • • • From computer to media machine Transparent technology and access Mobile computing Drivers
– Computing power doubles every 18 months – transmission capacity every 12 months – IP addresses every 6 - 9 months – 30 Million Chips per year are produced for PC’s, > 250 Million go to other devices – Average American household approx. 30 microprocessors “Disappearance of PC” - Ambient Intelligence
Werthner, OECD Berlin 2001 3
E-Commerce
• EC turnover double every 9-12 month • In 1998 forecast for 1999: 8-50 Bn. US$; in reality: > 100 Bn. US$ • B2B 5-10 times bigger than B2C • USA dominates (70 - 90%)
• E-commerce is sharing business information, maintaining business relationships, and conducting business transactions by means of telecomm. networks. (Kalakota and Whinston 96) • Business occurring over open, non-proprietary networks (=Internet), including “dedicated” infrastructure; value generating activities within firms, suppliers and customers (OECD 98) • covers information, negotiation, settlement and after sales phases
Werthner, OECD Berlin 2001 4
2
B2C Evolution
2500 2000 1500 1000 500 0 1996 1997 1998 1999 2000
computer products travel entertainment apparel gifts & flowers food & drink other
European B2C (Forrester 1999) Werthner, OECD Berlin 2001 5
IT and Tourism
• Travel/Tourism
Issues and Challenges
Hannes Werthner
EC3 – E-Commerce Competence Center, Vienna IFITT
Context
• Globalization (alliances - mergers) and differentiation complexity • Convergence (also industries) and „cross overs“ • Information economy
– importance of digital products and information as integral partof economic activities (Bell 1973, Tapscott 1998)
• Network economy
– growing interdependencies among (economic) actors with network e ffects (Kelly 1999)
• Prosumption - from Customer-focused to Customer-driven • Acceleration of change • Digital Divide
Werthner, OECD Berlin 2001 2
1
Technological Trends
• • • • From computer to media machine Transparent technology and access Mobile computing Drivers
– Computing power doubles every 18 months – transmission capacity every 12 months – IP addresses every 6 - 9 months – 30 Million Chips per year are produced for PC’s, > 250 Million go to other devices – Average American household approx. 30 microprocessors “Disappearance of PC” - Ambient Intelligence
Werthner, OECD Berlin 2001 3
E-Commerce
• EC turnover double every 9-12 month • In 1998 forecast for 1999: 8-50 Bn. US$; in reality: > 100 Bn. US$ • B2B 5-10 times bigger than B2C • USA dominates (70 - 90%)
• E-commerce is sharing business information, maintaining business relationships, and conducting business transactions by means of telecomm. networks. (Kalakota and Whinston 96) • Business occurring over open, non-proprietary networks (=Internet), including “dedicated” infrastructure; value generating activities within firms, suppliers and customers (OECD 98) • covers information, negotiation, settlement and after sales phases
Werthner, OECD Berlin 2001 4
2
B2C Evolution
2500 2000 1500 1000 500 0 1996 1997 1998 1999 2000
computer products travel entertainment apparel gifts & flowers food & drink other
European B2C (Forrester 1999) Werthner, OECD Berlin 2001 5
IT and Tourism
• Travel/Tourism