Week 4: eBusiness

1) Why has the web grown so dramatically?

The web has grown so dramatically because of the fact that the majority of society now owns a computer. Organizations now have the ability to transform themselves over a larger base and reach a much wider audience. Advancements in hardware and software in regards to computers allow speed and convenience and at a quarter of the cost.

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 characterized by user participation, openness and network effects. This allows users to collaborate and build their own content. Examples of this include Wiki, Blogger, RSS and even podcasts. Web 1.0 however is the ‘read only web’. This means that the web user is only capable of finding information and reading it. This is very little user interaction or contribution.

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

Web 2.0 technology could be used to the advantage of any business. Blogs/social networking sites/RSS could be used to update stakeholders or even people who are generally interested in a business and about what is going on. They create a more intimate setting so that others can communicate.

4) What is eBusiness, how does it differ from e-Commerce?

eBusiness is also known as electronic business is a business that is done over the Internet. E-Commerce is the buying and selling of goods and services over the Internet. The term e-Commerce, refers only to online transactions. e-Business, derived from e-commerce, is the conducting of business on the Internet including buying, selling, serving customers and collaborating with business partners. For example, eBay, Amazon

5) What is pure and partial e-Commerce?

6) List and describe the various eBusiness models

The various eBusiness models include:

-       Business to business (B2B) applies to businesses buying from and selling to each other over the internet

-       Business to consumer (B2C) applies to any business that sells its products or services to consumers online

-       Consumer to Consumer (C2C) applies to any consumer that sells a product or service to a business online

-       Consumer to Business (C2B) applies to sites primarily offering goods and services to assist consumers when interacting with each other over the internet

7) List and describe the major B2B models

-       Sell-side B2B

A web based niche marketplace in which one company sells to many business buyers from e-catalogues or auctions, frequently over an extranet

-       Buyer-side market place

A corporate based acquisition site that uses reverse auctions, negotiations, group purchasing or any other e-procurement methods

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

-       Opportunities

1.     Quick and simple. The message that needs to be sent goes through automatically and on a familiar platform

2.     Better communication. No external sources interrupt.

-       Challenges

1.     Security. Unsure of who may be on the connection or could see the information being relayed.

2.     Disruption in information. Information could be lost or unable to open on another computer. This could waste time and resources.