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.

Week 3: Strategic Decision Making

1) Define TPS and DSS, provide some examples of these systems in business

Transaction Processing Systems (TPS) are the basic business systems that serves the operational level (analysts) in an organization. They were the first system to be automated because these repetitive, consistent and high volume tasks were ideal candidates for ‘computerization’. The most common example of a TPS is an operational accounting system such as payroll system or an order-entry system and Point of Sale systems (POS). In today’s society however, it has moved to online transaction processes such as PayPal.

Decision Support Systems (DSS) assist decision making to make more complex problems simpler. For example, estimating future cash flows from the use of long-lived assets or preparing an operating budget for the next 5 years.

2) Describe the three quantitative models typically used by decision support systems

The three quantitative models that are typically used by decision support systems include:

-       Sensitivity analysis

Which is the study of the impact that changes in one (or more) parts of the model

-       What-if analysis

Checks the impact of a change in an assumption on the proposed solution

-       Goal-seeking analysis

Finds the inputs necessary to achieve a goal such as a desired level of output

3) Describe a business process and their importance to an organization, outline an example of how they are used

A business process is a standardized set of activities that accomplish a specific task, such as processing a customer’s order. It organizes, coordinates and focuses to produce a valuable product or service for the business.

An organization can only be as effective as their business process, therefore, if they do not have a strict set of procedures and rules to follow, they will not be able to operate effectively as a business. An example of this process being used is when a person wants to travel overseas

4) Compare business process improvement and business process re-engineering

Business Process Improvement attempts to understand and measure the current process and make performance improvements accordingly. It requires taking a broad view of both information technology and business activity and the relationships between the two in order to understand and make these improvements. Business process re-engineering however is the analysis and redesign of workflow within and between enterprises. It is about improving the experience for the company and often attempts to set new standards for the industry.

5) Describe the importance of business process modeling (or mapping) and business process models

The importance of business process modeling is the activity of creating a detailed flowchart or process map of a work process, showing its inputs, tasks and activities in a structured sequence. A business process model is a graphic description of a process, showing the sequence of process tasks, which is developed for a specific purpose and from a selected viewpoint. By making a detailed flowchart, a business can then show their process details in a gradual and controlled manner, encourage consciousness and accuracy in describing the process model, focus attention on the process model interfaces and provide a powerful process analysis and consistent design vocabulary. 

Week 2: Information Systems in Business

1) Explain information technology’s role in business.

Information Technology is found in all aspects of a business including:

-       Accounting; deals with the strategic financial issues associated with the value of the business

-       Finance; deals with strategic financial issues associated with increasing the value of business whilst observing social responsibilities

-       Human Resources (HR); includes policies, plans and procedures for effective management of employees

-       Sales; the function of selling a good or service and focuses on customer sales to increase company revenue

-       Marketing; the process associated with promoting the sale of goods or services. This department supports the sales department by creating promotions that help sell products

-       Operations Management; the management of systems or processes that converts or transforms resources into goods and services including human resources

-       Management information systems (MIS); business function and academic discipline covering the application of people, technologies and procedures to solve business problems

2) What are efficiency and effectiveness metrics? Provide some examples of each.

Efficiency IT metrics focus on the technology itself. While efficiency metrics are important to monitor, they do not always guarantee effectiveness.. Efficiency focuses on the extent to which an organization is using its resources in an optimal way,

for example, throughput, speed and availability.

Effectiveness metrics are determined according to an organization’s goals, strategies and objectives. It focuses on how well an organization is achieving its goals and objectives,

for example, customer satisfaction, conversion rates and sell-through increases.

3) What does Porter’s five forces model attempt to explain? How does the internet affect the model?

Understanding Porter’s five forces can help a company to identify any potential opportunities to create a competitive advantage while deterring potential rivals. The five forces that are enforced in order to determine the attractiveness of an industry include:

-       Buying power

-       Selling power

-       Threat of substitute products or services

-       Threat of new entrants

-       Rivalry among existing competitors

4) Describe the relationship between business processes and value chains

A business process in a standardized set of activities that accomplish a specific task such as processing a customer’s order. Value chains however views an organization as a series of processes, each of which adds value to the product or service for each customer.