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Wednesday, 7 September 2011

Week 4 Questions- E-Business

Why has the web grown so dramatically?
- The internet was restricted to non-commercial activities, and it's users included employees, government, researchers and so on. The World Wide Web has changed the purpose and use of the Internet.  
Reasons for growth of the World Wide Web
- The microcomputer revolution made it possible for an average person to own a computer.
- Advancements in networking hardware software and media made it possible for business PCs to be inexpensively connected to larger networks.
- Browser software such as Microsoft's Internet Explorer and Netscape Navigator gave computer users an easy-to-use graphical interface to find, download and display webpages.
- The speed, convenience and low cost of email have made it an indispensable tool for business and personal communications.
- basic wed-pages are easy to create and extremely flexible.

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 colletively form the basis for the next generation of the Internet. It is a more mature distinctive medium characterised by user participation, openness and network effects.
The Web 2.0 refers to changes in the way software developers and end-users use the web as a platform. Web 2.0 is a transformative force that is propelling companies scross all industries towards a new way of doing business.


Web 2.0 includes user-driven online services such as Myspace, Wikipedia, and Youtube. These technologies which rely on user collaboration, include Web services, peer to peer networking, blogs podcasts, and online social networks.


 How could a web 2.0 technology be used in business?
 Businesses aren't relying on the best-known web 2.0 trends such as blogs, instead they place the importance on technologies that enable automation and networking. Businesses can use social network websites

What is eBusiness, how does it differ from eCommerce?

E-commerce: commercial transactions conducted electronically on the Internet.
E-business: any business that draws majority of its income from selling products or services in an online format.
What is pure and partial eCommerce
Pure e-commerce: concerns business whose transactions are largely carried out on the Internet.
Partial e-commerce: concerns business in which large part of transaction takes place in the off-line real world. (E.G. Amazon sells books online, but stored in warehouses and delivered.)
List and describe the various eBusiness models?
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 over the Internet.
Consumer-to-business (C2B) - applies to any consumer that sells a product or
service to a business over the Internet.
Consumer-to-consumer (C2C) - applies to sites primarily offering goods and services to assist consumers interacting with each other over the Internet.
List and describe the major B2B models?
E- Distributor:
company that supplies products and services directly to individual businesses.
owned by one company seeking to serve many customers
revenue through sale of goods


E-Procurement
create and sell access to digital electronic markets.
it is the B2B purchase and sale of supplies and services over the Internet.


Exchanges (B2B hubs)
an electronic digital marketplace where suppliers and commercial purchasers can conduct transactions.
usually owned by independent firms whose business is making a market
generate revenue by charging transaction fees




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


E-business benefits and challenges


E-business benefits
- Highly accessible (Busines can operate 24 hours a day, 7 days a week, 365 days a year)
- Increased customer loyalty
- Improved information content
- Increased convenience
- Increased global reach
- Decreased Cost


E-business challenges
- Protecting consumers
- Leveraging existing systems
- Increasing liability
- Providing security
- Adhering tazation rules

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