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Early development
The meaning of electronic commerce has changed over the last 30
years. Originally, electronic commerce meant the facilitation of
commercial transactions electronically, using technology such as
Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT).
These were both introduced in the late 1970s, allowing businesses to
send commercial documents like purchase orders or invoices
electronically. The growth and acceptance of credit cards, automated
teller machines (ATM) and telephone banking in the 1980s were also forms
of electronic commerce. Another form of e-commerce was the airline
reservation system typified by Sabre in the USA and Travicom in the UK.
Online shopping, a form of electronic commerce, pre-dates the IBM PC,
Microsoft, Apple Inc. and the Internet/www. In 1979 Michael Aldrich,an
English inventor, connected a modified 26" colour domestic television to
a real-time transaction processing computer via a domestic telephone
line and invented online shopping.[1] The first recorded B2B was Thomson
Holidays 1981[2] The first recorded B2C was Gateshead SIS/Tesco in
1984.[3] The world's first recorded online home shopper was Mrs Jane
Snowball,72, of Gateshead, England in May 1984.[4] During the 1980s
Aldrich sold many systems mainly in the UK including Ford, Peugeot [then
trading as Talbot Motors], General Motors and Nissan.[5] The Nissan
system of 1984/5 was revolutionary. It enabled a car buyer on a dealer's
lot to both buy and finance the car, including credit check, online.[6]
Aldrich invented both the online shopping system and the business
rationale for using it. His system was copied and his ideas were
plagiarised. His 1980s systems were as fast as 2010 internet shopping
systems. They used dial-up and leased telephone lines as broadband was
not available. He never patented his shopping system and his ideas are
the basis of internet shopping.
From the 1990s onwards, electronic commerce would additionally
include enterprise resource planning systems (ERP), data mining and data
warehousing.
An early example of many-to-many electronic commerce in physical
goods was the Boston Computer Exchange, a marketplace for used computers
launched in 1982. An early online information marketplace, including
online consulting, was the American Information Exchange, another pre
Internet[clarification needed] online system introduced in 1991.
In 1990 Tim Berners-Lee invented the WorldWideWeb web browser and
transformed an academic telecommunication network into a worldwide
everyman everyday communication system called internet/www. Commercial
enterprise on the Internet was strictly prohibited until 1991 .[7]
Although the Internet became popular worldwide around 1994 when the
first internet online shopping started, it took about five years to
introduce security protocols and DSL allowing continual connection to
the Internet. By the end of 2000, many European and American business
companies offered their services through the World Wide Web. Since then
people began to associate a word "ecommerce" with the ability of
purchasing various goods through the Internet using secure protocols and
electronic payment services.
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