E-commerce & Digital Markets (Module 8) - Final MISY PDF

# Module 8: E-commerce: Digital Markets, Digital Goods ## Q: Define E-business? Refers to the use of digital technology and the Internet to drive major business processes. ## Q: Define E-commerce? It's a subset of E-Business that involves buying and selling goods and services through the Internet....

# Module 8: E-commerce: Digital Markets, Digital Goods ## Q: Define E-business? Refers to the use of digital technology and the Internet to drive major business processes. ## Q: Define E-commerce? It's a subset of E-Business that involves buying and selling goods and services through the Internet. ## Q: Why does E-commerce use Information Systems? 1. To reduce administrative costs and 2. To streamline processes. ## Q: Business information systems are used in e-commerce for? 1. Stock control. 2. Supply chain management. 3. Customer experience. ## Q: E-Commerce Today? - Uses the Internet and web to transact business. - Began in 1995 and grew exponentially; still stable. - Companies that survived the dot-com bubble now thrive (e.g. Amazon, eBay). ##  Q: Define The following e-commerce? 1. **Social ecommerce**: Sell where people are with similar interests (Facebook, Instagram, LinkedIn). 2. **Mobile ecommerce**: The use of the mobile is growing faster than desktops; people want to be able to do everything on their mobiles. 3. **Local ecommerce**: Based on GPS map services. - Geosocial services - Where friends are. - Geo-advertising -What shops are nearby. - Geo-information services – i.e. Price of house you are passing. # Q: Why E-commerce Is Different? ## Ubiquity: - Marketspace is virtual; available everywhere and anywhere. - Transaction costs reduced. - Mobile devices extend services. ## Global reach: - Transactions cross cultural and national boundaries ## Universal standards: - One set of technology standards: Internet standards – so all different computers can communicate. ## Richness: - Supports video, audio, and text messages in a single marketing message & consumer experience. ## Interactivity: - Two-way communication between seller and consumers; and among consumers (shares, likes) ## Information density: - Consumers have more price and cost information. - Merchants know more about consumer segments (enables price discrimination since some people are willing to pay more). - Information costs are reduced, and quality is increased. ## Personalization/customization: - Technology permits personalization of messages, goods to groups and individuals. ## Social technology: - Promotes user content generation and social networking. # Q: What are the Key Concepts in E-Commerce? ## Disintermediation: - Reduction in the use of intermediaries between producers and consumers, for example by investing directly in the securities market rather than through a bank. ## Information asymmetry: - One party to a transaction has more or more superior information compared to another. ## Personalization/customization: - Technology permits personalization of messages, goods to groups and individuals. # Q: What are the Three major Types of E-commerce? 1. **Business-to-consumer (B2C)**. - Example: Barnes and Noble.com. 2. **Business-to-business (B2B)**. - Example: ChemConnect. 3. **Consumer-to-Consumer (C2C)**. - Example: eBay. # Q: What are the 7 E-commerce Business Models? 1. **Portal:** - Gateways to the web that users set as their home page. This varies from search engines, social media sites, news sites, and others (Google, Facebook, MSN). 2. **E-tailer:** - Online retail stores and subsidiaries of physical stores that sell to the end consumer (Amazon.com, Zara.com). 3. **Content provider:** - Provides content. Content is all forms of intellectual property, i.e. videos, music, photos, text, artwork (Disney.com, iTunes). 4. **Transaction broker:** - Process transactions for others, such as financial institutions (PayPal). 5. **Market creator:** - Build a digital environment where buyers and sellers can meet. (eBay, Amazon) 6. **Service provider:** - Provide online services, i.e. photo sharing and data backup, cloud-based apps (Office 365) 7. **Community provider:** - Create an online space where people with similar interests can transact (buy/sell), share interests, photos, videos, and communicate (Facebook, Instagram, LinkedIn). These are the fastest growing websites. # Q: What are the 6 E-commerce Revenue Models? 1. **Advertising:** - A website generates revenue by attracting a large audience, who are exposed to advertisements i.e. Banner ads and Targeted advertising based on previous searches (Portal). 2. **Sales:** - Sell goods, information, or services (E-tailer). 3. **Subscription:** - Offer information or services for an on-going fee (i.e. Content providers -Netflix). 4. **Free/Freemium:** - Offer basic service or information for free, then charge a premium for advanced or special services. 5. **Transaction fee:** - Organization receives a fee for enabling or executing a transaction. 6. **Affiliate:** - Websites send visitors to other websites for a commission if they buy from the second website. # Q: Define M-Commerce? A: Mobile ecommerce (m-commerce) is the selling of music, videos, ring tones, applications, movies, television, and others through mobile devices. # Q: What is M-commerce services and apps? - Location-based - Banking and financial - Wireless Advertising - Games and entertainment # Q: Explain the M-commerce Location-based services? A: Built-in global positioning system (GPS) and compass can identify your precise location and where your phone is pointed. I.e. map, weather, directory services # Q: Explain the M-commerce Banking and Financial? A: Banks and credit card companies provide services to customers to manage their accounts via mobile devices. - Ei. Mobile banking, Apple Pay # Q: Explain the M-commerce Wireless Advertising? A: Includes SMS advertising, shopping, bookings and reservations, mobile coupon or voucher, travel vouchers, ads on homepage (Google), mobile application, games, videos, websites # Q: Explain the M-commerce Games and entertainment? A: Mobiles have become portable entertainment platforms, i.e.. Broadband services like video clips, weather reports, TV shows, Live TV, social networking mobile apps, game apps # Module 9: Improving Decision Making # Q: What is the Business Value of Improved Decision Making? - Possible to measure value of improved decision making - Decisions made at all levels of the firm - Some are common, routine, and numerous - Although the value of improving any single decision may be small, improving hundreds of thousands of “small” decisions adds up to large annual value for the business. # Q: What are the Types of Decisions? 1. **Structured:** - Repetitive and routine. - Involve definite procedure for handling them so do not have to be treated as new. 2. **Semi-structured:** - Only part of the problem has a clear-cut answer provided by accepted procedure. 3. **Unstructured:** - Decision maker must provide judgment to solve problem. - Novel, important, nonroutine. - Not well-understood or agreed-upon procedure for making them. # Q: What are The Decision-Making Process Stages? 1. **Intelligence:** - Discovering, identifying, and understanding the problems occurring in the organization. 2. **Design:** - Identifying and exploring various solutions. 3. **Choice** - Choosing among solution alternatives. 4. **Implementation** - Making chosen alternative work and monitoring how well solution is working. # Q: What is High-Velocity Automated Decision Making? - Humans eliminated. - Decision-making process captured by computer algorithms. - Predefined range of acceptable solutions. - Decisions are made faster than managers can monitor and control. - E.g., Google search: The Google algorithm decides which display ads appear on screens in milliseconds. # Q: What is the Quality of Decisions and Decision Making? 1. **Accuracy:** Decision reflects reality. 2. **Comprehensiveness:** Decision reflects a full consideration of the facts and circumstances. 3. **Fairness:** Decision reflects concerns of interested parties. 4. **Speed (efficiency):** Decision making is efficient with respect to time and resources of interested parties. 5. **Coherence:** Decision reflects a rational process which can be explained to others. 6. **Due process:** Decision is the result of a known process which can be appealed to a higher authority.