CIS310 CH03-S
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Slide 1© 2014 by McGraw-Hill Education. This is proprietary
material solely for authorized instructor use. Not authorized for
sale or distribution in any manner. This document may not be
copied, scanned, duplicated, forwarded, distributed, or posted on a
website, in whole or part.
CHAPTER THREE
Advantages of Ebusiness
The Challenges of Ebusiness
Networking Communities with Business 2.0
Business 2.0 Tools for Collaborating
The Challenges of Business 2.0
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© 2014 by McGraw-Hill Education. This is proprietary material
solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied,
scanned, duplicated, forwarded, distributed, or posted on a
website, in whole or part.
SECTION 3.1
WEB 1.0
LEARNING OUTCOMES
Compare disruptive and sustaining technologies and explain how the
Internet and WWW caused business disruption
Describe Web 1.0 along with ebusiness and its associated
advantages
Compare the four categories of ebusiness models
Describe the six ebusiness tools for connecting and
communicating
Identify the four challenges associated with ebusiness
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DISRUPTIVE TECHNOLOGIES AND WEB 1.0
Digital Darwinism – Implies that organizations which cannot adapt
to the new demands placed on them for surviving in the information
age are doomed to extinction
How can a company like Polaroid go bankrupt?
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First instant camera in the late 1940s
The Polaroid camera, whose pictures developed themselves, was one
of most exiting technological advances in photography
industry.
Stock price dropped from $60 per share in 1997 to $0.08 per share
in 2002.
The company declared bankruptcy.
Disruptive versus Sustaining Technology
What do steamboats, transistor radios, and Intel’s 8088 processor
all have in common?
Disruptive technology – A new way of doing things that initially
does not meet the needs of existing customers
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Disruptive technologies redefine the competitive playing fields of
their respective markets
Disruptive technologies tend to open new markets and destroy old
ones
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Sustaining technologies
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Listened to existing customers
Invented aggressively in technology
Had their competitive antenna up
Still lost their market-dominant positions
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Classroom Exercise
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The Internet and World Wide Web – The Ultimate Business
Disruptors
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The Internet and World Wide Web – The Ultimate Business
Disruptors
The Internet began as an emergency military communications system
operated by the Department of Defense
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The Internet and World Wide Web – The Ultimate Business
Disruptors
World Wide Web (WWW) – Provides access to Internet information
through documents including text, graphics, audio, and video files
that use a special formatting language called HTML – hypertext
markup language
Web browser – Allows users to access the WWW
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The Internet and World Wide Web – The Ultimate Business
Disruptors
Reasons for growth of the WWW
Microcomputer revolution
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Web 1.0 – The Catalyst For Ebusiness
The Internet has had an impact on almost every industry
including
Travel
Entertainment
Electronics
Web 1.0 – The Catalyst For Ebusiness
Web 1.0 – A term to refer to the WWW during its first few years of
operation between 1991 and 2003
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Easy to compile
Increased information richness
Increased information reach
Opening New Markets
Mass customization – The ability of an organization to tailor its
products or services to the customers’ specifications
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Opening New Markets
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Disintermediation
Reintermediation
Cybermediation
Improving Effectiveness
Clickstream data tracks the exact pattern of a consumer’s
navigation through a website
Clickstream data can reveal
Date and time visited
Number of abandoned shopping carts
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Generating revenue on the Internet
Online ad (banner ad) - Box running across a web page that contains
advertisements
Pop-up ad - A small web page containing an advertisement
Associate program (affiliate program) - Businesses generate
commissions or royalties
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EBUSINESS MODELS
Ebusiness model – A plan that details how a company creates,
delivers, and generates revenues on the internet
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Common ebusiness forms
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Ebusiness Forms and Revenue-Generating Strategies
Search engine – Website software that finds other pages based on
keyword matching similar to Google
Search engine ranking – Evaluates variables that search engines use
to determine where a URL appears on the list of search
results
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Ebusiness revenue models
what are the business advantages of videoconferencing?
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Email
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© 2014 by McGraw-Hill Education. This is proprietary material
solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied,
scanned, duplicated, forwarded, distributed, or posted on a
website, in whole or part.
SECTION 3.2
Explain how Business 2.0 is helping communities network and
collaborate
Describe the three Business 2.0 tools for collaborating
Explain the three challenges associated with Business 2.0
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WEB 2.0: ADVANTAGES OF BUSINESS 2.0
Web 2.0 – The next generation of Internet use – a more mature,
distinctive communications platform characterized by three
qualities
Collaboration
Sharing
Free
Characteristics of Business 2.0
Content Sharing Through Open Sourcing
Open system – Nonproprietary hardware and software based on
publicly known standards that allows third parties to create add-on
products to plug into or interoperate with the system
Source code
Open source
User-Contributed Content
User-contributed content – Created and updated by many users for
many users
Reputation system – Where buyers post feedback on sellers
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Collaboration Inside the Organization
Collaboration system – Tools that support the work of teams or
groups by facilitating the sharing and flow of information
Collective intelligence – Collaborating and tapping into the core
knowledge of all employees, partners, and customers
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Knowledge-based assets fall into two categories
Explicit knowledge – Consists of anything that can be documented,
achieved, and codified, often with the help of IT
Tacit knowledge – Knowledge contained in people’s heads
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Asynchronous communication
Synchronous communication
Social media – Websites that rely on user participation and
user-contributed content
Social network – An application that connects people by matching
profile information
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Social Tagging
Tags – Specific keywords or phrases incorporated into website
content for means of classification or taxonomy
Social tagging
Social Tagging
Social tagging - Describes the collaborative activity of marking
shared online content with keywords or tags as a way to organize it
for future navigation, filtering, or search.
Folksonomy - Similar to taxonomy except that crowdsourcing
determines the tags or keyword-based classification system.
Website bookmark - A locally stored URL or the address of a file or
Internet page saved as a shortcut.
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Blogs
Blog – Online journal that allows users to post their own comments,
graphics, and video
Microblogging
Wikis
Wiki – Collaborative Web page that allows users to add, remove, and
change content, which can be easily organization and reorganized as
required
Mashups
Mashup – Website or Web application that uses content from more
than one source to create a completely new product or service
Application programming interface
Mashups
1001 Secret Fishing Holes: Over a thousand fishing spots in
national parks, wildlife refuges, lakes, campgrounds, historic
trails etc. (Google Maps API).
25 Best Companies to Work For: Map of the 100 best U.S. companies
to work for as rated by Fortune magazine. (Google Maps API).
Album Covers: Uses the Amazon API and an Ajax-style user interface
to retrieve CD/DVD covers from the Amazon catalog (Amazon eCommerce
API).
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WEB 3.0
Web 3.0 – Based on “intelligent” Web applications using natural
language processing, machine-based learning and reasoning, and
intelligence applications
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The Government Moves Online
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The chapter discussed many ways that businesses are growing and
increasing profits through ebusiness
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Supporting Anywhere Business
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