Untitled Quiz

Module 5: E-Business

• Module 5 of the Business Driven Information Systems course focuses on e-business.
• The course material is presented in the form of slides or lecture notes.
• The content covers Web 1.0 e-business, Web 2.0 business 2.0, characteristics of Web 2.0, common e-business forms, and e-business tools.

Section 3.1: Web 1.0 E-Business

• Web 1.0 is a disruptive technology.
• The four e-business models are presented.
• E-business tools for communication and connection are discussed.

Section 3.2: Web 2.0 - Business 2.0

• Web 2.0: Advantages of Business 2.0 are discussed, including expanding global reach, opening new markets, reducing costs, and improving effectiveness.
• Web 2.0 technologies, including networking communities and business 2.0 tools for collaboration, are explored.
• The next generation of online business opportunities (Web 3.0) is mentioned.

Disruptive vs. Sustaining Technology

• Digital Darwinism implies that organizations failing to adapt to information age demands face extinction.
• Disruptive technology initially fails to meet existing customer needs but creates new markets in the long run.
• Sustaining technology improves existing products and meets customer demands.
• The Internet and World Wide Web (WWW) are disruptive technologies that caused a major shift in business models.

The Internet and WWW

• The Internet is a massive network connecting global computers for communication.
• The WWW provides access to internet information, including text, graphics, audio, and video files via special formatting languages, like HTML.
• Web browsers enable users to access the WWW using URLs.

Reasons for WWW growth

• Microcomputer revolution.
• Advancements in networking.
• Easy browser software.
• Speed, convenience, and low cost of email.
• Web pages easy to create and flexible.

Web 1.0: Catalyst for E-business

• E-business includes e-commerce and internal/external business operations.
• E-commerce refers to buying and selling goods/services online.
• A paradigm shift occurs when a new business model reshapes how companies operate.
• Web 1.0 refers to the initial years of the WWW (1991-2003).

Advantages of E-business

• Expanding global reach.
• Opening new markets.
• Reducing costs.
• Improving effectiveness.

Expanding Global Reach

• Information richness refers to the depth/breadth of information in a piece of information.
• Information reach measures the number of people a firm can communicate with worldwide.

Opening New Markets

• Mass customization tailors products/services to individual customer specifications.
• Personalization tailors offers based on customer preferences and dislikes.

Reducing Costs

• The long tail refers to sales of niche products, beyond the typical sales curve.
• Disintermediation removes intermediaries, allowing direct sales to consumers online.
• Intermediaries are agents, software, or businesses that link buyers and sellers.

Improving Effectiveness

• Heat maps visualize data using colors.
• Interactivity measures the effectiveness of ads through user interactions.
• Stickiness measures time users spend on a website/application.

Analyzing Website Data

• Viral marketing spreads marketing messages exponentially.
• Clickstreams trace user browsing paths on websites.
• Clickstream data helps understand consumer navigation patterns.
• Website traffic analytics assesses website efficiency from a server perspective.
• Website e-business analytics analyses site effectiveness as a market channel.
• Showrooming involves physical store browsing followed by online purchase.

The Four E-Business Models

• Business models outline how companies generate revenue online.
• Common models include Business-to-Business (B2B), Business-to-Consumer (B2C), Consumer-to-Business (C2B), and Consumer-to-Consumer (C2C).
• Brick-and-Mortar, Click-and-Mortar, and Pure-Play/Virtual businesses are common B2C models.
• Content providers, Infomediaries, Marketplaces, Portals, Service providers, and Transaction brokers are forms of e-businesses.

Search Engines

• Keywords are used in searches.
• Search engines find pages matching keywords (e.g., Google).
• Search engine ranking uses algorithms to order results.
• Search engine optimization improves rankings.
• Organic search involves unpaid results relevant to keywords, while paid search shows ads based on keywords.
• E-business revenue models include advertising fees, license/subscription fees, transaction fees, value-added service fees and pay-per-click, pay-per-call, and pay-per-conversion.

E-Business Fraud

• Affiliate programs allow commissions for referring customers.
• Click fraud artificially inflates ad traffic statistics.
• Hitbots create the illusion of high ad traffic.

E-Business Tools for Connecting and Communicating

• Email, Video Chat, Instant Messaging, Podcasting, and Content Management help connect and communicate.
• Content Management Systems (CMSs) manage content creation, storage, editing., and publication online.
• Email allows for digital message exchange across the internet.
• Instant Messaging (IM) enables real-time communication.
• Podcasts are digital audio broadcasts converted into music files.

Web 2.0: Advantages of Business 2.0

• Characteristics of Web 2.0 are detailed, including collaboration, sharing, and free content.
• Direct-to-Consumer (DTC) e-business models are discussed, including customer experience, data collection, and reduced costs.
• Content sharing through open sourcing refers to the sharing of openly licensed content.

Collaboration Inside the Organization

• Collaboration systems facilitate team/group information flow.
• Collective intelligence harnesses knowledge from inside an organization.
• Knowledge management captures, classifies, and shares company knowledge.
• Explicit knowledge is documented and codified, while tacit knowledge resides in people's understanding/experience.

Collaboration Outside the Organization

• Crowdsourcing leverages the wisdom of the crowd.
• Crowdfunding raises capital from many individuals online.
• Asynchronous communication allows for message/reply exchange outside of real-time interactions.
• Synchronous communication facilitates instant messaging and other real-time exchanges.

Business 2.0: All About Social

• Social media platforms rely on user participation.
• Social networks connect people using profile information.
• Social networking analysis charts and analyzes personal and professional connections and collaboration within groups.

Social Tagging

• Tags incorporate keywords into website content.
• Folksonomy is a user-generated tagging system.
• Social tagging, hashtag, social bookmarking, and website bookmarking are methods for classifying content.

Social Collaboration

• Snackable content is designed for easy consumption and sharing.

Blogs

• Blogs are online journals for users to share comments, graphics, and videos.
• Selfies are self-portraits used on social media.
• Microblogging involves sending short posts publicly or privately.

Wikis

• Wikis are collaborative web pages allowing users to edit, add, and remove content.
• Metcalfe's law states that network value increases with the square of the number of users.
• Network effect describes how the value of a product increases as the number of users increases.

Social Trust

• Misinformation spreads false information.
• Disinformation spreads intentionally false information.
• Fake news spreads false news stories.

Web 3.0

• The semantic web enables computers to understand information.
• The deep web is a section of the internet inaccessible to regular search engines.
• The dark web is a hidden section of the internet, requiring specialized tools to access.

Learning Outcome Review

• Students should review the learning outcomes in the text materials.