When it comes to computers, 127.0.0.1 is the “localhost”. In computer networking the local host is “this computer”. Or home. We have a changing landscape in computer usage (shift to mobile) and we notice the same trend in human behavior. People change places more than before. Decreased cost in transportation and relocation means we can move from one place to another without much hassle.
But there is no place like home, right? Well – what is home? Apparently our digital hubs have become our homes when we are on the move. Social networks are now our go-to place when we want to connect with our friends, even when we are away. Photo sharing apps like Instagram or Flickr store our memories and we can access them on the fly whenever we are away.
Even our local shop gets replaced by the increasingly present favorite online shop brand. There is a pattern that shows mobile buyers (those that change residential areas) are more prone to purchasing online and staying loyal to their favorite online store brand:
“For example, customers at Diapers.com who change locations become more or less likely to shop online, depending on the increase or decrease in their offline shopping costs in their new neighborhoods. Specifically, shoppers who have some experience shopping online and then move to a new location with homes with more storage capacity and relatively few stores will increase their online shopping activity.” Source: MIT Sloan Review
We, human beings, do not enjoy change all that much. In a fast moving world – we need stability. We need a fixed point. And after all it is all relative. If we’re constantly on the move – the only fixed point is that which moves with us or is everywhere around. Brick and mortar stores are fixed and therefore always moving for the traveler. Our fixed point is in the cloud. Our fixed point is the mobile.
If you think about someone who was there when ecommerce started, who would you picture? Jeff Bezos? You may be wrong because Bezos started Amazon in 1995, a full 17 years after ecommerce was born, in the UK.
The ecommerce revolution was televised
Back in 1979 a 38 year old innovator put together an online shopping system called Videotex. It was one of the first end-user technologies that displayed interactive information on a TV screen. Unlike most other connectivity breakthroughs of that age, the Videotex was more of a TV than a computer.
It was basically a domestic TV connected through a phone line to a central transaction processor. It might sound simple now but at the time things like e-commerce, online orders, online banking and others were pretty close to science-fiction.
One day, early 1979, Michael Aldrich received in his office a 26” TV, capable of teletext. The TV was able to display news and weather information, broadcasted by the BBC. It had several components that allowed it to do that. Among them – a modem and an auto-dialer.
Those two components proved to be really useful to Aldrich. Later that year, after superficially examining the device, Aldrich was out with his wife, walking their dog, Tessa.
They chatted about the kids and such. At some point the subject of weekly supermarket expedition came up. Aldrich was thinking of how could he make that boring trip easier – and that’s when it hit him: He could connect the modem enabled TV to a central server and help companies process transactions and sell things. Things such as groceries.
Online shopping before the Internet
He worked with his colleagues, set up a basic system and demo-ed it to major companies. As he had sales and marketing jobs before, he was able to convince executives of the system’s competitive advantage.
It as a hit and his team received some heavy requests for the system. He spent most of the ’80s designing and implementing online shopping systems. Remember – this was an era predating even the most basic forms of computer technology – such as MS DOS, the IBM PC , internet and yes, the World Wide Web.
It wasn’t until 1990 that another great brit, Tim Berners Lee would write the World Wide Web and unlock the Internet’s potential.
Tesco shipped the first online shopping order
Truth be told, Videotex never really caught up with end consumers. It was mainly used as a B2B shopping / ordering technology. But people did use it to place the world’s first online shopping orders.
She needed only 15 minutes to learn how to use the remote. After that she was able to choose from the 1000 products available on Videotex. Her order was payed on delivery as no card processing was available at that time. But she did order and the order did arrive.
She, among other senior shoppers, were the first to shop online. What was then a local experiment with little success is now a $1 trillion industry and growing fast.
Aldrich, now a grandfather of 8 grandchildren, may not have been the Jeff Bezos of its time but he is the man that invented online shopping, among others. There was no B2C market for him to work on, but there was a B2B market. His innovations started what we now call the IT industry and revolutionized the way people thought of media (from few-to-many to many-to-many).
This is a man that innovated his way to ecommerce, the IT industry, and basic Social Media notions we apply today. Pretty great, right?