Tutorial Questions: Chapter Three

1.       Why has the web grown so dramatically?

There are several reasons why the web has grown so dramatically. Due to the revolution of the microcomputer it has been made possible for many people worldwide to purchase a computer for their home. Advancements in technology have allowed businesses to connect PC computers into a large network, therefore providing enterprises with an outlet to share and manage business related information across vast areas. Another reason why the web has grown so dramatically is the revolution of email. Email provides businesses with the convenience, low cost and speed and has proven to be a necessity for business communication.

2.       What is web 2.0, how does it differ from web 1.0?

Web 2.0 can be identified as the next generation of the internet as it matches the features required by a modern audience. It also allows for user interaction which relies on the involvement of the user, for example, a web 2.0 application can include ‘Facebook’. Compared to web 2.0 , web 1.0 is much more simplistic as it does not provide an interactive user interface and is usually read only data, for example, Mp3.com.

3.       How can web 2.0 be used in business?

Web 2.0 technology is constantly used in modern businesses today. The web 2.0 application, facebook is frequently used as a mode for business advertisement. A vast amount of people access the extremely popular social networking site and is viewed an excellent resource for businesses to promote their products and/or services. Web 2.0 site ‘Ebay’ is a popular site and is often used by businesses to sell goods, this provides businesses today with a technological medium which is sued to reach a much wider consumer market.

4.       What is e-business, how does it differ from ecommerce?

E-commerce can be identified as the buying and sells of good through technological means; or ‘online transactions’. The term E-business differs slightly as it means the conduction of business using the internet. E-business processes may include the collaboration of partners, buying and selling and serving customers through the internet.

5.       What is pure and partial e-Commerce?

Pure e-commerce can be defined as the occurrence of businesses operations conducted purely on the internet. For example; the ‘Itunes’ application has the ability to process transactions and only serves the customer on the internet. Partial e-commerce is when only some of the business operations are carried out online and the main business processes are still conducted manually.

6.       List and describe the various e-Business models.

Business to business- This term refers to the buying and selling between businesses over the internet.

Business to consumer- When businesses sell goods over the internet to their customers

Consumer to business- When a consumer sells products/services over the internet to businesses

Consumer to consumer- When internet sites offer good/services to assist consumers interacting with each other over the internet (Baltzan et al. 2010, p123).

7.       List and describe the major B2B models.

Sell side e-market place: A market place available on the web; it is viewed as a business that sells to many businesses from e-catalogues or auctions e.g. selling from electronic catalogues and selling via forward options e.g. AANX.

Buyer side Market place: is known as an acquisition site that uses reverse auctions, negotiations, group purchasing or any other e-procedure method. This method works by using a ‘request for quote’ systems when a group of buyers open an e-market place.

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

E-business is a medium for the buying and selling of goods online, this method of profit earning can often uncover opportunities for businesses, however challenges for the business may also arise. Several opportunities may include: The expansion of businesses into new markets, creating a greater chance to produce more profits. And greater public awareness can be gained by the business as there are many people who access the internet compared to a domestic audience.

Several challenges that may arise with e-business, may include: The challenge to create a website as there may not be adequate technology or experience to manage an e-business system. Another challenge that may be experienced by a business is the greater amount of rival competitors; with the internet comes a greater range of competitors whom sell the same products/services.

Interesting Link: http://www.winterparkartists.com/FiveBige-BusinessOpportunities.pdf

(accessed 3/4/11)