CHAPTER OVERVIEW
SECTION 3.1 – WEB 1.0 - EBUSINESS
Disruptive Technologies and Web 1.0
Advantages of Ebusiness
Ebusiness Models
Ebusiness Tools for Connecting and Communicating
The Challenges of Ebusiness
SECTION 3.2 – WEB 2.0 – BUSINESS 2.0
Web 2.0: Advantages of Business 2.0
Networking Communities with Business 2.0
Business 2.0 Tools for Collaborating
The Challenges of Business 2.0
Web 3.0: Defining the Next Generation of Online Business Opportunities
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CHAPTER THREEEBUSINESSELECTRONIC BUSINESS VALUECHAPTER OVERVIEWSECTION 3.1 – WEB 1.0 - EBUSINESSDisruptive Technologies and Web 1.0Advantages of EbusinessEbusiness ModelsEbusiness Tools for Connecting and CommunicatingThe Challenges of EbusinessSECTION 3.2 – WEB 2.0 – BUSINESS 2.0Web 2.0: Advantages of Business 2.0Networking Communities with Business 2.0Business 2.0 Tools for CollaboratingThe Challenges of Business 2.0Web 3.0: Defining the Next Generation of Online Business OpportunitiesSECTION 3.1WEB 1.0EBUSINESSLEARNING OUTCOMESCompare disruptive and sustaining technologies and explain how the Internet and WWW caused business disruptionDescribe Web 1.0 along with ebusiness and its associated advantagesCompare the four categories of ebusiness modelsDescribe the six ebusiness tools for connecting and communicatingIdentify the four challenges associated with ebusinessDISRUPTIVE TECHNOLOGIES AND WEB 1.0Digital Darwinism – Implies that organizations which cannot adapt to the new demands placed on them for surviving in the information age are doomed to extinctionHow can a company like Polaroid go bankrupt?Disruptive versus Sustaining TechnologyWhat 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 customersSustaining technology – Produces an improved product customers are eager to buyDisruptive versus Sustaining TechnologyDisruptive versus Sustaining TechnologyInnovator’s Dilemma discusses how established companies can take advantage of disruptive technologies without hindering existing relationships with customers, partners, and stakeholdersDisruptive versus Sustaining TechnologyThe Internet and World Wide Web – The Ultimate Business DisruptorsOne of the biggest forces changing business is the Internet – A massive network that connects computers all over the world and allows them to communicate with one anotherOrganizations must be able to transform as markets, economic environments, and technologies changeFocusing on the unexpected allows an organization to capitalize on the opportunity for new business growth from a disruptive technologyThe Internet and World Wide Web – The Ultimate Business DisruptorsThe Internet began as an emergency military communications system operated by the Department of DefenseGradually the Internet moved from a military pipeline to a communication tool for scientists to businessesThe Internet and World Wide Web – The Ultimate Business DisruptorsWorld 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 languageWeb browser – Allows users to access the WWWHypertext Transport Protocol – The Internet protocol Web browsers use to request and display Web pages using URL – universal resource locatorThe Internet and World Wide Web – The Ultimate Business DisruptorsReasons for growth of the WWWMicrocomputer revolutionAdvancements in networkingEasy browser softwareSpeed, convenience, and low cost of emailWeb pages easy to create and flexibleWeb 1.0 – The Catalyst For EbusinessThe Internet has had an impact on almost every industry includingTravelEntertainmentElectronicsFinancial servicesRetailAutomobilesEducation and trainingWeb 1.0 – The Catalyst For EbusinessWeb 1.0 – A term to refer to the WWW during its first few years of operation between 1991 and 2003Ecommerce – Buying and selling of goods and services over the InternetEbusiness – Includes ecommerce along with all activities related to internal and external business operations ADVANTAGES OF EBUSINESS Expanding Global Reach The Internet’s impact on informationEasy to compile Increased richness Increased reach Improved content Opening New MarketsMass customization – The ability of an organization to tailor its products or services to the customers’ specificationsPersonalization – Occurs when a company knows enough about a customer’s likes and dislikes that it can fashion offers more likely to appeal to that personOpening New MarketsThe Long Tail – Refers to the tail of a typically sales curveOpening New MarketsIntermeidary – Agents, software, or businesses that provide a trading infrastructure to bring buyers and sellers togetherDisintermediation ReintermediationCybermediationOpening New MarketsBusiness Value of DisintermediationImproving EffectivenessClickstream data tracks the exact pattern of a consumer’s navigation through a websiteClickstream data can revealNumber of pageviewsPattern of websites visitedLength of stay on a websiteDate and time visitedNumber of customers with shopping cartsNumber of abandoned shopping cartsMarketing/SalesGenerating revenue on the Internet Online ad (banner ad) - Box running across a web page that contains advertisementsPop-up ad - A small web page containing an advertisement Associate program (affiliate program) - Businesses generate commissions or royalties Viral marketing - A technique that induces websites or users to pass on a marketing message Improving EffectivenessWebsite metrics includeVisitor metricsExposure metricsVisit metricsHit metricsEBUSINESS MODELSEbusiness model – A plan that details how a company creates, delivers, and generates revenues on the internetEBUSINESS MODELSBusiness-to-Consumer (B2C)Common B2C Ebusiness Models Ebusiness Forms and Revenue-Generating StrategiesCommon ebusiness formsContent providersInformediariesOnline marketplacesPortalsService providersTransaction brokersEbusiness Forms and Revenue-Generating StrategiesEbusiness Forms and Revenue-Generating StrategiesSearch engine – Website software that finds other pages based on keyword matching similar to GoogleSearch engine ranking – Evaluates variables that search engines use to determine where a URL appears on the list of search resultsSearch engine optimization – Combines art along with science to determine how to make URLs more attractive to search engines resulting in higher search engine rankingEbusiness Forms and Revenue-Generating StrategiesEbusiness revenue modelsAdvertising feesLicense feesSubscription feesTransaction feesValue-added service feesPay-per-clickPay-per-callPay-per-conversionEBUSINESS TOOLS FOR CONNECTING AND COMMUNICATINGEBUSINESS TOOLS FOR CONNECTING AND COMMUNICATINGEmail Instant messagingPodcastingVideoconferencingWeb conferencingContent management systemTaxonomyInformation architecture THE CHALLENGES OF EBUSINESSSECTION 3.2WEB 2.0: BUSINESS 2.0LEARNING OUTCOMESExplain Web 2.0 and identify its four characteristicsExplain how Business 2.0 is helping communities network and collaborateDescribe the three Business 2.0 tools for collaboratingExplain the three challenges associated with Business 2.0Describe Web 3.0 and the next generation of online businessWEB 2.0: ADVANTAGES OF BUSINESS 2.0Web 2.0 – The next generation of Internet use – a more mature, distinctive communications platform characterized by three qualitiesCollaborationSharingFreeWEB 2.0: ADVANTAGES OF BUSINESS 2.0Characteristics of Business 2.0Content Sharing Through Open SourcingOpen system – Nonproprietary hardware and software based on publicly known standards that allows third parties to create add-on products to plug into or interoperate with the systemSource codeOpen sourceUser-Contributed ContentUser-contributed content – Created and updated by many users for many usersReputation system – Where buyers post feedback on sellersCollaboration Inside the OrganizationCollaboration system – Tools that support the work of teams or groups by facilitating the sharing and flow of informationCollective intelligence – Collaborating and tapping into the core knowledge of all employees, partners, and customersKnowledge management - Involves capturing, classifying, evaluating, retrieving, and sharing information assets in a way that provides context for effective decisions and actionsCollaboration Inside the OrganizationKnowledge-based assets fall into two categoriesExplicit knowledge – Consists of anything that can be documented, achieved, and codified, often with the help of ITTacit knowledge – Knowledge contained in people’s headsCollaboration Outside the OrganizationCrowdsourcing – the wisdom of the crowdAsynchronous communicationSynchronous communicationNETWORKING COMMUNITIES WITH BUSINESS 2.0Social media – Websites that rely on user participation and user-contributed contentSocial network – An application that connects people by matching profile informationSocial networking – The practice of expanding your business and/or social contacts by a personal networkSocial TaggingTags – Specific keywords or phrases incorporated into website content for means of classification or taxonomySocial taggingFolksonomyWebsite bookmarkSocial bookmarkingSocial TaggingFolksonomy for Cellular PhonesBUSINESS 2.0 TOOLS FOR COLLABORATINGBlogsBlog – Online journal that allows users to post their own comments, graphics, and videoMicroblogging Real simple syndicationWikisWiki – Collaborative Web page that allows users to add, remove, and change content, which can be easily organization and reorganized as requiredNetwork effectMashupsMashup – Website or Web application that uses content from more than one source to create a completely new product or serviceApplication programming interfaceMashup editorTHE CHALLENGES OF BUSINESS 2.0WEB 3.0Web 3.0 – Based on “intelligent” Web applications using natural language processing, machine-based learning and reasoning, and intelligence applicationsSemantic Web – A component of Web 2.0 that describes things in a way that computers can understandEgovernment: The Government Moves OnlineEgovernment - Involves the use of strategies and technologies to transform government(s) by improving the delivery of services and enhancing the quality of interaction between the citizen-consumer within all branches of government Egovernment: Government Moves OnlineMbusiness: Supporting Anywhere BusinessMobile business - The ability to purchase goods and services through a wireless Internet-enabled device LEARNING OUTCOME REVIEWNow that you have finished the chapter please review the learning outcomes in your text