EBUSINESS
Why has the web grown so dramatically?
There are multiple reasons for the dramatic growth of the web. Firstly, the microcomputer revolution made it possible for an average person to own a computer, and advancements in networking hardware, software, and media made it possible for business PC’s to be inexpensively connected to larger networks. The web is also a fast, convenient and inexpensive communication channel for both business and personal use, as email is now an indispensable tool. Basic web pages are easy to create and extremely flexible, and along with Microsoft’s Internet Explorer to, more people are allowed and welcomed to produce and navigate the web rather than aiming it at people with certain academic ability.
What is the Web 2.0, how does it differ from 1.0?
Web 2.0 is a set of economic, social and technology trends that collectively form the basis for the net generation of the Internet – a more mature, distinctive medium characterised by user participation, openness and network effects. It is also referred to as the Live Web, as users can collaborate and build their own content. Web 2.0 differs from 1.0 in many ways, as 2.0 is not only linking text, it is also linking people. This development is apparent through the changes between 1.0 and 2.0 including the online encyclopedias - Britannica Online (1.0) to Wikipedia (2.0) – music file sharing/downloading – Mp3.com (1.0) to Napster (2.0) – and even personal websites (1.0) to Blogs (2.0).
A short video on Web 2.0
How could a web 2.0 technology be used in business?
Web 2.0 technology can be used in businesses to enhance communication. An example of this could be CEO’s using Blogs to enhance communication and build trust within the organisation, also further developing a positive image of the company. Also, RSS feed provides website statistics to managers and has the potential to update customers with product updates ad company news.
What is eBusiness, how does it differ from eCommerce?
eBusiness is the conducting of business on the internet, including buying and selling, serving customers and collaborating with business partners. eCommerce is the buying and selling of goods and services over the internet, referring only to online transactions. The primary difference between eCommerce and eBusiness is that eBusiness also refers to online exchanges of information, such as a manufacturer allowing its suppliers to monitor production schedules or a financial institution allowing its customers to review their banking, credit card and mortgage accounts.
eBusiness vs. eCommerce
"Ebusiness goes far beyond ecommerce or buying and selling over the Internet, and deep into the processes and cultures of an enterprise. It is the powerful business environment that is created when you connect critical business systems directly to customers, employees, vendors, and business partners, using Intranets, Extranets, ecommerce technologies, collaborative applications, and the Web."
What is pure and partial eCommerce?
Pure and partial eCommerce refers to the product, process and delivery agent of eCommerce being physical or digital. For example, Brick-and-mortar organizations are purely physical, whereas click-and-mortar organisations are those that conduct some eCommerce activities, yet their business is primarily done in the physical world i.e. partial eCommerce. Virtual organisations are companies that engage solely in ecommerce, which is also known as pure play.
List and describe the various eBusiness models.
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| A diagram on the relation of the various eBusiness models. |
An eBusiness model is an approach to conducting electronic business on the Internet, and these business transactions take place between the two main entities – businesses and consumers. There are four main types of eBusiness models:
- Business-to-business (B2B), which applies to businesses buying from and selling to each other over the Internet.
- Business-to-consumer (B2C), which applies to any business that sells its products or services to consumers over the Internet. Common B2C eBusiness models include e-shops and e-mails.
- Consumer-to-business (C2B), which applies to any consumer that sells a product or service to a business over the Internet. An example of this would be an individual using advertising services on Amazon.com.
- Consumer-to-consumer (C2C), which applies to sites primarily offering goods and services to assist consumers interacting with each other over the Internet. An example of this is eBay which is the most successful C2C online auction website, linking like-minded buyers and sellers for a small commission.
List and describe the major B2B models.
There are 4 main B2B models:
- Buyer side; a corporate based acquisition site that uses reverse auctions, negotiations, group purchasing, or any other e-procurement method. Groups of buyers open an e-market place and invite buyers to bid on services/goods, also known as the request for quote (RFQ) methodology (the invitation to participate in a bidding system.
- Seller side; a web-based niche marketplace in which one company sells to many business buyers from e-catalogues or auctions frequently over an extranet. The three major pricing methods used are selling from electronic catalogues, selling via forward auctions, and one-to-one selling usual under a negotiated long term contract.
- Electronic exchange; where sellers, buyers, and the services are all linked via the exchange.
- Collaborative commerce; where the Hub Manager is the central link between buyers, sellers, universities, governments, communities, and other industry associations.
Outline 2 opportunities and 2 challenges faced by companies doing business online.
Two opportunities faced by companies doing business online is that they are available to an extremely broader market, as well as eliminating the factor of distance between the business and the consumer. These to opportunities allow the company to expand their business over the Internet, which essentially expands it globally without having to physically go the distance of offering your services to consumers.
Two challenges that companies may face by doing business online are security threats, and having different legal systems within different countries. There are always security threats to personal information being entered into the internet i.e. a consumer’s billing information being entered into an online store, which may result in the consumer being reuctant to use the company’s online service. Also, different legal systems in different countries pose as a challenge to companies taking their business online as the legal system of the origin of the business is the only one that is applicable to the business, whereas in countries with a different legal system, particular attributes of the online business may be illegal.
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