Week Four - eBusiness

1.     What is Web 2.0, how does it differ from 1.0?

Web 2.0 is referred to as the Live Web. Users can collaborate and build their own content. A more mature, distinctive medium characterised by user participation, openness and network effects. Businesses are using Web 2.0 to enable access to critical business application for employees and customers, E.g – travellers can share experiences about their experiences, they can recommend or warn others.

The diagram above illustrates the way in which web 1.0 differs from web 2.0

How could a web 2.0 technology be used in business?

An example of web 2.0 in business is as follows; CEO’s using Blogs to enhance communication, build trust, supplement press releases and talk from the heart. A content rich blog can enhance the positive image of the company.

What is eBusiness, how does it differ from eCommerce?

—  e-Commerce – the buying and selling of goods and services over the Internet

—  E-Business – is derived from e-commerce, is the conducting of business on the Internet including, not only buying and selling, but also serving customers and collaborating with business partners.

The primary differebce between e-commerce and e-business is that e-business also refers to online exchanges of information, such as a manufacturer allowing its suppliers to monitor production schedules or a financial institution alloowing its customers to review their banking, credit card and mortgage accounts.

E-business has permeated every aspect of daily life.Both individuals and orginisations have embraced internet technologies to enhance productivity, maximise convinience and improve communications globally.From banking to shopping to entertainment, the internet has become integral to daily life.

What is pure and partial eCommerce

Pure EC: all dimensions are digital

• Pure online (virtual) organizations

• Pure Play

• New-economy organization

• Sell products or services only online

 Partial EC: a mix of digital and physical dimensions

• Conduct EC activities

• Do their primary business in the physical world

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 marketplace models?

business-to-business e-commerce (B2B EC) Transactions between businesses conducted electronically over the Internet, extranets, intranets, or private networks.

sell-side e-marketplace

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

—  Three major pricing methods:

1.       Selling from electronic catalogs;

2.       Selling via forward auctions; and

3.       One-to-one selling, usually under a negotiated long-term contract. (e.g ioffer.com)

Buy side marketplace

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

—  Group of buyers open an e market place and invite buyers to bid on services / goods – RFQ methodology

 request for quote (RFQ) The “invitation” to participate in a tendering (bidding) system

—  Automates ordering, fulfillment, sales data analysis

Sell side market place

Selling from the Company’s Own Site

—  Large, well-known companies that conduct catalogue sales, 0r build an auction mechanism on the company’s own site

—  Using Auctions on the Sell-Side

—  Revenue generation

—  Cost savings

—  Increased page views

—  Member acquisition and retention

sell-side e-marketplace

 

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

—  Three major pricing methods:

1.       Selling from electronic catalogs;

2.       Selling via forward auctions; and

3.       One-to-one selling, usually under a negotiated long-term contract. (e.g ioffer.com)

Buy side marketplace

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

—  Group of buyers open an e market place and invite buyers to bid on services / goods – RFQ methodology

 request for quote (RFQ) The “invitation” to participate in a tendering (bidding) system

—  Automates ordering, fulfillment, sales data analysis

Sell side market place

Selling from the Company’s Own Site

—  Large, well-known companies that conduct catalogue sales, 0r build an auction mechanism on the company’s own site

—  Using Auctions on the Sell-Side

—  Revenue generation

—  Cost savings

—  Increased page views

—  Member acquisition and retention