Week 4 Questions

eBusiness

1. Why has the web grown so dramatically?

The world wide web has grown dramatically for the following reasons:

• The microcomputer revolution made it possible for an average person to own a computer

• Advancements in hardware, software and media made is possible for business PCs to be inexpensively connected to larger networks

• Software such as Microsoft's Internet explorer gave computer users an easy-to-use graphical interface to find, download and display web pages

• The speed, convenience and low cost of email have made it an indispensable tool for business and personal communications

• Basic webpages are easy to create and very flexible

2. What is 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 next generation of the internet. A more mature, distinctive medium characterised by user participation, openness and network effects.

Web 1.0 vs Web 2.0

3. How could a web 2.0 technology be used in business?

Web 2.0 is a transformative force that is propelling companies across all industries towards a new way of doing business. Those who act on the Web 2.0 opportunity stand to gain an early-mover advantage in their markets. Web 2.0 is the business revolution in the computer industry caused by the move to the internet as platform, and an attempt to understand the rules for success on that new platform. The web is no longer just linking texts; it is linking people.

4. What is eBusiness, how does it differ from eCommerce?

e-Commerce is the buying and selling of goods and services over the internet. e-Business, derived from e-Commerce, is the conducting of business on the internet, including buying and selling, serving customers and collaborating with business partner. The main difference between e-commerce and e-business is that e-business also refers to online exchanges of information, such as a financial institution allowing it customers to review their banking, credit care and mortgage accounts.

5. What is pure and partial eCommerce

Pure e-commerce concerns businesses whose transactions are largely carried out on the internet. Whereas, partial e-commerce on the other hand concerns businesses in which a large part of the transaction takes place in the off-line real world.

6. List and describe the various eBusiness models?

An e-business model is an approach to conducting electronic business on the Internet. The various eBusiness models include:

• Business-to-business (B2B) applies to businesses buying from and selling to each other over the Internet. Online access to data, including expected shipping date, delivery date and shipping status, provided either by the seller or a third-party provider, is widely supported by B2B models. Electronic marketplaces represent a new wave in B2B e-Business models.

• Business-to-consumer (B2C) applies to any business that sells its products or services to consumers over the internet. Corporate Express is a leading B2C distributor of business products, including IT products, office supplies, furniture, print, promotional products, and canteen and facilities supplies.

• Consumer-to-business (C2B) applies to any consumer that sells a product or service to a business over the Internet. Examples of this e-business model are a web master offering advertising services on Amazon.com. The demand for C2B e-Business will increase over the next few years due to customers' desire for greater convenience and lower prices.

7. List and describe the major B2B models?

Business-to-business (B2B) applies to businesses buying from and selling to each other over the internet. Online access to data, including expected shipping date and shipping status, provided either by the seller or a third party provider, is widely supported by B2B models. Electronic marketplaces represent a new wave in B2B e-business models. E-marketplaces are interactive business communities providing a central market where multiple buyers and sellers can engage in e-business activities. The present structures for conducting commercial exchange, consolidating supply chains and creating new sales channels. Their primary goal is to increase market efficiency by tightening the relationship between buyers and sellers.

An e-Marketplace

8. Outline 2 opportunities and 2 challenges faced by companies doing business online?

Opportunities	Challenges
Highly accessible - businesses can operate 24/7, 365 days a year.	Protecting consumers - consumers must be protects from unsolicited good and communication, illegal or harmful goods, invasion of privacy and cyber fraud
Increased customer loyalty - additional methods of contacting, responding to and accessing customers improves customer loyalty	Increasing liability - e-business exposes suppliers to unknown liabilities as internet commerce law differs from country to county and is vague. Issues raised include identity theft and information manipulation.