Slide 1© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
CHAPTER THREE
Advantages of Ebusiness
The Challenges of Ebusiness
Networking Communities with Business 2.0
Business 2.0 Tools for Collaborating
The Challenges of Business 2.0
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© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
SECTION 3.1
WEB 1.0
LEARNING OUTCOMES
Compare disruptive and sustaining technologies and explain how the Internet and WWW caused business disruption
Describe Web 1.0 along with ebusiness and its associated advantages
Compare the four categories of ebusiness models
Describe the six ebusiness tools for connecting and communicating
Identify the four challenges associated with ebusiness
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DISRUPTIVE TECHNOLOGIES AND WEB 1.0
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?
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First instant camera in the late 1940s
The Polaroid camera, whose pictures developed themselves, was one of most exiting technological advances in photography industry.
Stock price dropped from $60 per share in 1997 to $0.08 per share in 2002.
The company declared bankruptcy.
Disruptive versus Sustaining Technology
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
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Disruptive technologies redefine the competitive playing fields of their respective markets
Disruptive technologies tend to open new markets and destroy old ones
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Sustaining technologies
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Listened to existing customers
Invented aggressively in technology
Had their competitive antenna up
Still lost their market-dominant positions
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Classroom Exercise
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The Internet and World Wide Web – The Ultimate Business Disruptors
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The Internet and World Wide Web – The Ultimate Business Disruptors
The Internet began as an emergency military communications system operated by the Department of Defense
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The Internet and World Wide Web – 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
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The Internet and World Wide Web – The Ultimate Business Disruptors
Reasons for growth of the WWW
Microcomputer revolution
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Web 1.0 – The Catalyst For Ebusiness
The Internet has had an impact on almost every industry including
Travel
Entertainment
Electronics
Web 1.0 – The Catalyst For Ebusiness
Web 1.0 – A term to refer to the WWW during its first few years of operation between 1991 and 2003
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Easy to compile
Increased information richness
Increased information reach
Opening New Markets
Mass customization – The ability of an organization to tailor its products or services to the customers’ specifications
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Opening New Markets
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Disintermediation
Reintermediation
Cybermediation
Improving Effectiveness
Clickstream data tracks the exact pattern of a consumer’s navigation through a website
Clickstream data can reveal
Date and time visited
Number of abandoned shopping carts
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Generating revenue on the Internet
Online ad (banner ad) - Box running across a web page that contains advertisements
Pop-up ad - A small web page containing an advertisement
Associate program (affiliate program) - Businesses generate commissions or royalties
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EBUSINESS MODELS
Ebusiness model – A plan that details how a company creates, delivers, and generates revenues on the internet
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Common ebusiness forms
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Ebusiness Forms and Revenue-Generating Strategies
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
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Ebusiness revenue models
what are the business advantages of videoconferencing?
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Email
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© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
SECTION 3.2
Explain how Business 2.0 is helping communities network and collaborate
Describe the three Business 2.0 tools for collaborating
Explain the three challenges associated with Business 2.0
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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
Characteristics of Business 2.0
Content Sharing Through Open Sourcing
Open 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 system
Source code
Open source
User-Contributed Content
User-contributed content – Created and updated by many users for many users
Reputation system – Where buyers post feedback on sellers
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Collaboration Inside the Organization
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
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Knowledge-based assets fall into two categories
Explicit knowledge – Consists of anything that can be documented, achieved, and codified, often with the help of IT
Tacit knowledge – Knowledge contained in people’s heads
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Asynchronous communication
Synchronous communication
Social media – Websites that rely on user participation and user-contributed content
Social network – An application that connects people by matching profile information
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Social Tagging
Tags – Specific keywords or phrases incorporated into website content for means of classification or taxonomy
Social tagging
Social Tagging
Social tagging - Describes the collaborative activity of marking shared online content with keywords or tags as a way to organize it for future navigation, filtering, or search.
Folksonomy - Similar to taxonomy except that crowdsourcing determines the tags or keyword-based classification system.
Website bookmark - A locally stored URL or the address of a file or Internet page saved as a shortcut.
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Blogs
Blog – Online journal that allows users to post their own comments, graphics, and video
Microblogging
Wikis
Wiki – Collaborative Web page that allows users to add, remove, and change content, which can be easily organization and reorganized as required
Mashups
Mashup – Website or Web application that uses content from more than one source to create a completely new product or service
Application programming interface
Mashups
1001 Secret Fishing Holes: Over a thousand fishing spots in national parks, wildlife refuges, lakes, campgrounds, historic trails etc. (Google Maps API).
25 Best Companies to Work For: Map of the 100 best U.S. companies to work for as rated by Fortune magazine. (Google Maps API).
Album Covers: Uses the Amazon API and an Ajax-style user interface to retrieve CD/DVD covers from the Amazon catalog (Amazon eCommerce API).
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WEB 3.0
Web 3.0 – Based on “intelligent” Web applications using natural language processing, machine-based learning and reasoning, and intelligence applications
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The Government Moves Online
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The chapter discussed many ways that businesses are growing and increasing profits through ebusiness
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Supporting Anywhere Business
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