Module 5 E-Business Chapter 3 Baltzan PDF

Because learning changes everything.® MODULE 5: E-BUSINESS CHAPTER THREE, BALTZAN © 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 Tec...

Because learning changes everything.® MODULE 5: E-BUSINESS CHAPTER THREE, BALTZAN © 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. MODULE 5: Web 2.0: Advantages of Business 2.0. E-BUSINESS Networking Communities with Business 2.0. OVERVIEW CHAPTER THREE, BALTZAN Business 2.0 Tools for Collaborating. Web 3.0: Defining the Next Generation of Online Business Opportunities. © McGraw Hill LLC 2  SECTION 3.1: WEB 1.0 EBUSINESS © McGraw Hill LLC 3  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 4. Describe the six ebusiness tools for connecting and OUTCOMES 1 communicating © McGraw Hill LLC 4  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? © McGraw Hill LLC 5  DISRUPTIVE VERSUS SUSTAINING TECHNOLOGY 1 What do steamboats, transistor radios, and Intel’s 8088 processor all have in common? 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. © McGraw Hill LLC 6  DISRUPTIVE VERSUS SUSTAINING TECHNOLOGY 2 Innovator’s Dilemma discusses how established companies can take advantage of disruptive technologies without hindering existing relationships with customers, partners, and stakeholders. © McGraw Hill LLC 7  THE INTERNET AND WWW – THE ULTIMATE BUSINESS DISRUPTORS 1 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. © McGraw Hill LLC 8  THE INTERNET AND WWW – THE ULTIMATE BUSINESS DISRUPTORS 2 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. © McGraw Hill LLC 9  THE INTERNET AND WWW – THE ULTIMATE BUSINESS DISRUPTORS 3 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. © McGraw Hill LLC 10  WEB 1.0: THE CATALYST FOR EBUSINESS 1 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. Paradigm shift - Occurs when a new, radical form of business enters the market that reshapes the way companies and organizations behave. Web 1.0 – A term to refer to the WWW during its first few years of operation between 1991 and 2003. © McGraw Hill LLC 11  WEB 1.0: THE CATALYST FOR EBUSINESS 2 Access the text alternative for slide images. © McGraw Hill LLC 12  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. © McGraw Hill LLC 13  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. © McGraw Hill LLC 14  REDUCING COSTS 1 The Long Tail – Refers to the tail of a typically sales curve. © McGraw Hill LLC 15  REDUCING COSTS 2 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. Access the text alternative for slide images. © McGraw Hill LLC 16  IMPROVING EFFECTIVENESS Heat map - A two-dimensional representation of data in which values are represented by colors. 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. © McGraw Hill LLC 17  ANALYZING WEBSITE DATA 1 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. © McGraw Hill LLC 18  ANALYZING WEBSITE DATA 2 Clickstream analytics - The process of collecting, analyzing and reporting aggregate data about which pages a website visitor visits— and in what order. Website traffic analytics - Uses clickstream data to determine the efficiency of the site for the users and operates at the server level. Website ebusiness analytics - Uses clickstream data to determine the effectiveness of the site as a channel-to-market. Showrooming - Occurs when a customer browses at a physical store and then decides to purchase the product online for a reduced cost. © McGraw Hill LLC 19  THE FOUR EBUSINESS MODELS 1 Ebusiness model – A plan that details how a company creates, delivers, and generates revenues on the internet. Access the text alternative for slide images. © McGraw Hill LLC 20  THE FOUR EBUSINESS MODELS 2 E-business Term Definition Business-to- Applies to businesses buying from and selling Dot-com - The business (B2B) to each other over the Internet. original term for a company operating Business-to- Applies to any business that sells its products on the Internet. consumer (B2C) or services to consumers over the Internet. Consumer-to- Applies to any consumer that sells a product or business (C2B) service to a business over the Internet. Consumer-to- Applies to sites primarily offering goods and consumer (C2C) services to assist consumers interacting with each other over the Internet. © McGraw Hill LLC 21  FORMS OF B2C OPERATIONS Common B2C Ebusiness Models. Access the text alternative for slide images. © McGraw Hill LLC 22  EBUSINESS FORMS AND REVENUE-GENERATING STRATEGIES Common ebusiness forms. Content providers. Infomediaries. Online marketplaces. Portals. Service providers. Transaction brokers. © McGraw Hill LLC 23  SEARCH ENGINES 1 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. © McGraw Hill LLC 24  SEARCH ENGINES 2 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. © McGraw Hill LLC 25  SEARCH ENGINES 3 Ebusiness revenue models. Advertising fees. License fees. Subscription fees. Transaction fees. Value-added service fees. Pay-per-click. Pay-per-call. Pay-per-conversion. © McGraw Hill LLC 26  EBUSINESS FRAUD 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. Click fraud - The practice of artificially inflating traffic statistics for online advertisements. Hitbots - Create the illusion that a large number of potential customers are clicking the advertiser's links, when in fact there is no likelihood that any of the clicks will lead to profit for the advertiser. © McGraw Hill LLC 27  EBUSINESS TOOLS FOR CONNECTING AND COMMUNICATING 1 Ebusiness Tools © McGraw Hill LLC 28  EBUSINESS TOOLS FOR CONNECTING AND COMMUNICATING 2 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. © McGraw Hill LLC 29  SECTION 3.2: WEB 2.0: BUSINESS 2.0 © McGraw Hill LLC 30  5. Explain Web 2.0 and identify its four characteristics 6. Explain how Business 2.0 is helping communities' network and collaborate LEARNING 7. Describe Web 3.0 and the next generation of OUTCOMES 2 online business © McGraw Hill LLC 31  WEB 2.0: ADVANTAGES OF BUSINESS 2.0 1 Web 2.0 – The next generation of Internet use – a more mature, distinctive communications platform characterized by three qualities. Collaboration. Sharing. Free. © McGraw Hill LLC 32  WEB 2.0: ADVANTAGES OF BUSINESS 2.0 2 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. © McGraw Hill LLC 33  WEB 2.0: ADVANTAGES OF BUSINESS 2.0 3 Characteristics of Business 2.0. Access the text alternative for slide images. © McGraw Hill LLC 34  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. © McGraw Hill LLC 35  USER-CONTRIBUTED CONTENT User-contributed content – Created and updated by many users for many users. Native advertising - An online marketing concept in which the advertiser attempts to gain attention by providing content in the context of the user’s experience in terms of its content, format, style, or placement. Reputation system - Buyers post feedback on sellers. © McGraw Hill LLC 36  COLLABORATION INSIDE THE ORGANIZATION 1 Collaboration system – Tools that support the work of teams or groups by facilitating the sharing and flow of information. Collective intelligence – Collaborating and tapping into the core knowledge of all employees, partners, and customers. Knowledge management - Involves capturing, classifying, evaluating, retrieving, and sharing information assets in a way that provides context for effective decisions and actions. © McGraw Hill LLC 37  COLLABORATION INSIDE THE ORGANIZATION 2 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. © McGraw Hill LLC 38  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. © McGraw Hill LLC 39  BUSINESS 2.0: ALL ABOUT SOCIAL 1 Social media – Websites that rely on user participation and user-contributed content. Social network – An application that connects people by matching profile information. © McGraw Hill LLC 40  BUSINESS 2.0: ALL ABOUT SOCIAL 2 Social networking – The practice of expanding your business and/or social contacts by a personal network. Social networking analysis (SNA) - Maps group contacts (personal and professional) identifying who knows each other and who works together. © McGraw Hill LLC Source: Google Images. http://www.google.com/images? 41  SOCIAL TAGGING 1 Tags – Specific keywords or phrases incorporated into website content for means of classification or taxonomy. Hashtag. Folksonomy. Social tagging. Social bookmarking. Website bookmark. © McGraw Hill LLC Radius Images/Alamy Stock Photo 42  SOCIAL TAGGING 2 Folksonomy: Similar to taxonomy except that crowdsourcing determines the tags or keyword-based classification system. Folksonomy for Cellular Phones. © McGraw Hill LLC Chinnapong/Shutterstock 43  SOCIAL COLLABORATION Snackable content - Content that is designed to be easy for readers to consume and to share. © McGraw Hill LLC 44  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. © McGraw Hill LLC 45  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. © McGraw Hill LLC 46  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. © McGraw Hill LLC 47  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. Deep web - The large part of the Internet that is inaccessible to conventional search engines. Dark web - The portion of the Internet that is intentionally hidden from search engines, uses masked IP addresses, and is accessible only with a special web browser. © McGraw Hill LLC 48  Now that you have finished the chapter, please review the learning outcomes in your text. LEARNING OUTCOME REVIEW © McGraw Hill LLC 49  Because learning changes everything. ® www.mheducation.com © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.