Audio Transcript Auto-generated
- 00:01 - 00:02
Hello. I'm Christopher Nunez.
- 00:02 - 00:07
And from my presentation on digitization I chose online shopping.
- 00:07 - 00:09
You might ask yourself what is it
- 00:11 - 00:14
when you think of online shopping everyone automatically thinks
- 00:14 - 00:15
amazon
- 00:15 - 00:19
amazon is the largest online shopping platform. There is right now
- 00:19 - 00:21
and there's other people like walmart that see
- 00:21 - 00:23
the benefits of having such a large presence
- 00:24 - 00:28
that are increasingly putting effort into their online store to try to compete with
- 00:29 - 00:30
companies like amazon.
- 00:31 - 00:33
There's also there's also other platforms that
- 00:33 - 00:36
most people don't think of when it comes to online shopping
- 00:36 - 00:38
as Shopify
- 00:38 - 00:40
which allows people to create their online website
- 00:41 - 00:42
for their store
- 00:42 - 00:44
to sell directly to the customer
- 00:46 - 00:48
when thinking about online shopping.
- 00:48 - 00:53
The characteristics of digitalization that come up our digital footprint
- 00:53 - 00:56
like where externalities, economies of scale
- 00:56 - 00:59
and algorithmic application which is also a I
- 01:00 - 01:02
I'll start with dessert footprint.
- 01:03 - 01:04
What is it?
- 01:04 - 01:08
Well digital footprint is the data you leave behind after you have been online.
- 01:08 - 01:10
In my case specifically from online shopping.
- 01:11 - 01:14
So what data do you think you leave online when you shop?
- 01:15 - 01:16
The biggest thing you leave
- 01:16 - 01:18
is the credit card information,
- 01:19 - 01:20
your personal identity
- 01:21 - 01:22
as your name,
- 01:24 - 01:26
first name and last name and your location
- 01:26 - 01:28
because you need a place
- 01:28 - 01:31
to get your goods after you buy them.
- 01:31 - 01:34
So we leave these three huge important things
- 01:35 - 01:36
that we would never give to a stranger.
- 01:37 - 01:39
We give them online
- 01:39 - 01:41
every single day without even thinking about it.
- 01:41 - 01:43
These are some of the biggest things that
- 01:45 - 01:47
we leave behind as our digital footprint.
- 01:48 - 01:51
Next I'll talk about network externalities
- 01:51 - 01:52
and what is it?
- 01:53 - 01:56
Network externalities is when the valuable product to one user,
- 01:56 - 02:00
depends on how many other users there are or using that product
- 02:01 - 02:04
in these pictures. I illustrated an example from amazon
- 02:05 - 02:06
which are little badges that they put on
- 02:06 - 02:09
their products when you go on their online store
- 02:09 - 02:12
one is # one bestseller and Amazon's choice.
- 02:13 - 02:14
These two things
- 02:14 - 02:16
increasing the effect,
- 02:17 - 02:20
how likely you are to buy a product or not?
- 02:21 - 02:26
When something is bad, number one bestseller you automatically flocked to because
- 02:26 - 02:28
other people are using it.
- 02:28 - 02:31
And that increases the value of the product because you think
- 02:31 - 02:34
more people are using it because it is of higher quality.
- 02:35 - 02:36
And same with Amazon's choice,
- 02:36 - 02:39
you know when something has a badge that has amazon choice,
- 02:39 - 02:41
you know a lot of people are using on it
- 02:42 - 02:44
and there's high value placed on that product.
- 02:46 - 02:48
Another aspect of network externalities
- 02:49 - 02:51
is being able to leave reviews
- 02:51 - 02:55
because these reviews let you know how many people have used it if they like it
- 02:55 - 02:59
or not of its effective if it's any good and thus increasing the value of the product
- 03:00 - 03:02
if a lot of people are using it
- 03:02 - 03:04
and if they're giving it good ratings.
- 03:06 - 03:09
Next. I'll talk about economies of scale,
- 03:10 - 03:11
what is the economies of scale,
- 03:12 - 03:16
constant scale is a saving and cost gained by an increase of level of production
- 03:17 - 03:20
and when we think of this we think of things
- 03:20 - 03:21
like Costco
- 03:22 - 03:25
Costco wholesale selling, which is literally in their name
- 03:25 - 03:29
that they buy in bulk to decrease
- 03:30 - 03:34
the price that they give to themselves to buy. And for the consumer.
- 03:35 - 03:36
We've seen this also on amazon
- 03:37 - 03:37
that
- 03:38 - 03:39
do you usually find
- 03:39 - 03:41
lower prices on their website?
- 03:42 - 03:45
And Costco is doing the same thing. They have their online store where you could
- 03:46 - 03:48
gain the benefits of lower
- 03:49 - 03:50
sales price
- 03:51 - 03:54
and not having to go in person about it.
- 03:55 - 03:55
So
- 03:56 - 03:57
when you have a bigger production
- 03:58 - 03:58
you save money
- 03:59 - 04:02
and that's why more people tend to go with the bigger companies.
- 04:03 - 04:05
And in this case
- 04:05 - 04:06
online shopping
- 04:07 - 04:09
goes hand in hand with it because of
- 04:09 - 04:12
amazon has demonstrated how big it's gotten and the
- 04:13 - 04:16
price to access their products has been
- 04:16 - 04:17
increasing ever since.
- 04:19 - 04:24
Lastly I'll talk about algorithmic application which is a hardware to say.
- 04:24 - 04:25
But it also stands for a
- 04:27 - 04:28
so what is it?
- 04:28 - 04:32
It's the routines and decisions that were previously executed by humans
- 04:32 - 04:35
that are now being done by algorithms or machine.
- 04:36 - 04:37
So when we think of this
- 04:37 - 04:38
we think of
- 04:39 - 04:41
online shopping. Well that's everything. We don't have
- 04:42 - 04:43
workers no more or we don't have
- 04:44 - 04:46
people stocking. We don't have people
- 04:47 - 04:48
of
- 04:48 - 04:53
on the check online. So you think it's everything. But also some of the main things
- 04:53 - 04:56
that we've seen our customer service before.
- 04:56 - 05:00
We think we used to think of people in cubicles just answering the phone all day.
- 05:00 - 05:02
And now there's things of
- 05:02 - 05:03
like chat box
- 05:04 - 05:10
which is very prevalent in big online shopping stores like amazon for instance,
- 05:10 - 05:11
the other day,
- 05:11 - 05:14
a package said it was delivered but it wasn't in my
- 05:14 - 05:16
front yard and all I had to do was go online,
- 05:17 - 05:18
talk to their bodies
- 05:18 - 05:21
and I got everything sorted out in minutes.
- 05:21 - 05:22
And that's how much
- 05:24 - 05:29
it has changed from before, where you had to call and wait and argue and this and that.
- 05:29 - 05:32
Now it's done in minutes with no hassle
- 05:32 - 05:34
and it's become
- 05:35 - 05:37
very easy and something that's not tedious and
- 05:37 - 05:39
it's almost enjoyable.
- 05:41 - 05:44
And that was my presentation of online shopping.