Chapter 3 PDF - Ebusiness

BE SURE TO REVIEW THE DETAILED TEACHING NOTES IN EACH SLIDE FOR CLASSROOM IDEAS, DEBATES, EXERCISES, AND VIDEOS PELASE DO NOT SHARE THESE SLIDES WITH STUDENTS OR POST ON THE INTERNET INSTRUCTOR THE STUDENT VERSION OF THESE SLIDES DO NOT S...

BE SURE TO REVIEW THE DETAILED TEACHING NOTES IN EACH SLIDE FOR CLASSROOM IDEAS, DEBATES, EXERCISES, AND VIDEOS PELASE DO NOT SHARE THESE SLIDES WITH STUDENTS OR POST ON THE INTERNET INSTRUCTOR THE STUDENT VERSION OF THESE SLIDES DO NOT SLIDES INCLUDE ANY CLASSROOM TEACHING MATERIALS CHAPTER THREE © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  SECTION 3.1 – WEB 1.0 - EBUSINESS Web 1.0: Disruptive Technology The Four Ebusiness Models Ebusiness Tools for Connecting and Communicating SECTION 3.2 – WEB 2.0 – BUSINESS 2.0 Web 2.0: Advantages of Business 2.0 Networking Communities with Business 2.0 CHAPTER THREE Business 2.0 Tools for Collaborating OVERVIEW Web 3.0: Defining the Next Generation of Online Business Opportunities SECTION 3.1: WEB 1.0 EBUSINESS 1. Compare disruptive and sustaining technologies and explain how the Internet and WWW caused business disruption 2. Describe ebusiness and its associated advantages 3. Compare the four ebusiness models LEARNING OUTCOMES 4. Describe the six ebusiness tools for connecting and communicating DISRUPTIVE TECHNOLOGY Digital Darwinism – Implies that organizations which cannot adapt to the new demands placed on them for surviving in the information age are doomed to extinction How can a company like Polaroid go bankrupt? DISRUPTIVE VERSUS SUSTAINING TECHNOLOGY Disruptive technology – A new way of doing things that initially does not meet the needs of existing customers Sustaining technology – Produces an improved product customers are eager to buy THE INTERNET AND WWW – THE ULTIMATE BUSINESS DISRUPTORS Internet – A massive network that connects computers all over the world and allows them to communicate with one another Organizations must be able to transform as markets, economic environments, and technologies change The Internet began as an emergency military communications system operated by the Department of Defense Gradually the Internet moved from a military pipeline to a communication tool for scientists to businesses THE INTERNET AND WWW – THE ULTIMATE BUSINESS DISRUPTORS World Wide Web (WWW) – Provides access to Internet information through documents including text, graphics, audio, and video files that use a special formatting language called HTML – hypertext markup language Web browser – Allows users to access the WWW Hypertext Transport Protocol – The Internet protocol Web browsers use to request and display Web pages using URL – universal resource locator  THE INTERNET AND WWW – THE ULTIMATE BUSINESS DISRUPTORS Reasons for growth of the WWW 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: THE CATALYST FOR EBUSINESS Ebusiness – Includes ecommerce along with all activities related to internal and external business operations Ecommerce – Buying and selling of goods and services over the Internet Web 1.0 – A term to refer to the WWW during its first few years of operation between 1991 and 2003 WEB 1.0: THE CATALYST FOR EBUSINESS EXPANDING GLOBAL REACH Information richness - Refers to the depth and breadth of details contained in a piece of textual, graphic, audio, or video information Information reach - Measures the number of people a firm can communicate with all over the world  OPENING NEW MARKETS Mass customization – The ability of an organization to tailor its products or services to the customers’ specifications Personalization – Occurs when a company knows enough about a customer’s likes and dislikes that it can fashion offers more likely to appeal to that person  REDUCING COSTS The Long Tail – Refers to the tail of a typically sales curve  REDUCING COSTS Disintermediation - Occurs when a business sells directly to the customer online and cuts out the intermediary Intermediaries - Agents, software, or businesses that provide a trading infrastructure to bring buyers and sellers together  IMPROVING EFFECTIVENESS Interactivity - Measures advertising effectiveness by counting visitor interactions with the target ad, including time spent viewing the ad, number of pages viewed, and number of repeat visits to the advertisement Stickiness - Measures the amount of time visitors spend on a website or application Heat map - A two-dimensional representation of data in which values are represented by colors ANALYZING WEBSITE DATA Viral marketing - A technique that induces websites or users to pass on a marketing message to other websites or users, creating exponential growth in the message’s visibility and effect Clickstream - The exact path a visitor takes through a website including the pattern of a consumer’s navigation Clickstream data can reveal Length of stay on a website Number of page views How they arrived on the page Where they went after leaving the page Number of abandoned shopping carts Clickstream analytics - The process of collecting, analyzing and reporting aggregate data about which pages a website visitor visits—and in what order  THE FOUR EBUSINESS MODELS Ebusiness model – A plan that details how a company creates, delivers, and generates revenues on the internet  THE FOUR EBUSINESS MODELS Dot-com - The original term for a company operating on the Internet FORMS OF B2C OPERATIONS Common B2C Ebusiness Models EBUSINESS FORMS AND REVENUE-GENERATING STRATEGIES Common ebusiness forms Content providers Infomediaries Online marketplaces Portals Service providers Transaction brokers  SEARCH ENGINES Keyword – A word used in performing a search Search engine – Website software that finds other pages based on keyword matching similar to Google Search engine ranking – Evaluates variables that search engines use to determine where a URL appears on the list of search results SEARCH ENGINES Search engine optimization – Combines art along with science to determine how to make URLs more attractive to search engines resulting in higher search engine ranking Organic search - The unpaid entries in a search engine results page that were derived based on their contents’ relevance to the keyword query Paid search - Links a company paid to have displayed based on your keywords SEARCH ENGINES Ebusiness revenue models Advertising fees License fees Subscription fees Transaction fees Value-added service fees Pay-per-click Pay-per-call Pay-per-conversion Affiliate program - Allows a business to generate commissions or referral fees when a customer visiting its website clicks a link to another merchant’s website EBUSINESS TOOLS FOR CONNECTING AND COMMUNICATING Ebusiness Tools EBUSINESS TOOLS FOR CONNECTING AND COMMUNICATING Content management systems (CMSs)- Help companies manage the creation, storage, editing, and publication of their website content Email - The exchange of digital messages over the Internet Instant messaging (IM, or IMing) - A service that enables instant or real- time communication between people Podcasting - Converts an audio broadcast to a digital music player Video chat - An online face-to-face, visual communication performed with other Internet users by using a webcam and dedicated software SECTION 3.2: WEB 2.0: BUSINESS 2.0 5. Explain Web 2.0 and identify its four characteristics 6. Explain how Business 2.0 is helping communities' network and collaborate 7. Describe Web 3.0 and the next generation of LEARNING online business OUTCOMES WEB 2.0: ADVANTAGES OF BUSINESS 2.0 Web 2.0 – The next generation of Internet use – a more mature, distinctive communications platform characterized by three qualities Collaboration Sharing Free WEB 2.0: ADVANTAGES OF BUSINESS 2.0 Direct-to-Consumer (DTC) - Ebusiness model where companies build, market, sell, and ship their products themselves, without relying on traditional stores or intermediaries Customer Experience Data Collection Reduced Costs  WEB 2.0: ADVANTAGES OF BUSINESS 2.0 Characteristics of Business 2.0  CONTENT SHARING THROUGH OPEN SOURCING Open system - Consists of nonproprietary hardware and software based on publicly known standards that allow third parties to create add-on products to plug into or interoperate with the system Source code - Contains instructions written by a programmer specifying the actions to be performed by computer software Open source - Refers to any software whose source code is made available free (not on a fee or licensing basis as in ebusiness) for any third party to review and modify Closed source - Any proprietary software licensed under exclusive legal right of the copyright holder  USER-CONTRIBUTED CONTENT User-contributed content – Created and updated by many users for many users Reputation system - Buyers post feedback on sellers COLLABORATION INSIDE THE ORGANIZATION Collaboration system – Tools that support the work of teams or groups by facilitating the sharing and flow of information Knowledge management - Involves capturing, classifying, evaluating, retrieving, and sharing information assets in a way that provides context for effective decisions and actions Knowledge management system (KMS) - Supports the capture, organization, and dissemination of knowledge throughout an organization Knowledge-based assets fall into two categories Explicit knowledge – Consists of anything that can be documented, achieved, and codified Tacit knowledge – Knowledge contained in people’s heads COLLABORATION OUTSIDE THE ORGANIZATION Crowdsourcing – The wisdom of the crowd Crowdfunding - Sources capital for a project by raising many small amounts from a large number of individuals, typically via the Internet Asynchronous communication - Communication, such as email, in which the message and the response do not occur at the same time Synchronous communication - Communications that occur at the same time, such as IM or chat  BUSINESS 2.0: ALL ABOUT SOCIAL Social media – Websites that rely on user participation and user-contributed content Social network – An application that connects people by matching profile information BLOGS Blog – Online journal that allows users to post their own comments, graphics, and video Selfie – A self-photograph placed on a social media website Microblogging - The practice of sending brief posts (140 to 200 characters) to a personal blog, either publicly or to a private group of subscribers who can read the posts as IMs or as text messages WIKIS Wiki – Collaborative Web page that allows users to add, remove, and change content, which can be easily organization and reorganized as required Metcalfe's law - States that the value of a telecommunications network is proportional to the square of the number of connected users of the system Network effect - Describes how products in a network increase in value to users as the number of users increases SOCIAL TRUST Misinformation: Refers to false information that is presented as fact without an intent to deceive Disinformation: Refers to false information that is presented as fact, with an intent to deceive and mislead Fake news: Refers to false news stories created to be widely shared or distributed for the purpose of promoting or discrediting a public figure, political movement, or a company WEB 3.0 Tim Berners-Lee has described the semantic web as a component of Web 3.0 that describes things in a way that computers can understand  Now that you have finished the chapter, please review the learning outcomes in your text LEARNING OUTCOME REVIEW