Chapter 3: Ebusiness: Electronic Business Value

Ebusiness Advantages

-expanding global reach -opening new markets -reducing costs -improving operations -improving effectiveness

disruptive technology

A new way of doing things that initially does not meet the needs of existing customers

eBusiness model

A plan that details how a company creates, delivers, and generates revenues on the internet

Pop-up ad

A small web page containing an advertisement that appears outside of the current website loaded in the browser

Viral marketing

A technique that induces websites or users to pass on a marketing message to other websites or users, creating exponential growth in message's visibility and effect

Web Browser

Allows users to access the WWW

World Wide Web Consortium (W3C)

An international community that develops open standards for the Web.

Marketing Benefits from Ebusiness

Associate Programs Banner ad Click Through Cookie Pop-up ad Viral Marketing

Search Engine Optimization (SEO)

Combines art along with science to determine how to make URLs more attractive to search engines resulting in higher search engine ranking

Ebusiness forms

Content providers infomediaries online marketplaces portals service providers transaction brokers

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

Personalization

Occurs when a company knows enough about a customer's likes and dislikes that it can fashion offers more likely to appeal to that person

World Wide Web

Provides access to Internet information through documents including text, graphics, audio, and video files that use a special formatting language called HTML

Search engine

Website software that finds other pages based on keyword matching similar to Google

Internet

a massive network that connects computers all over the world and allows them to communicate with one another

Business-to-business (B2B)

applies to businesses buying from and selling to each other over the internet

Online marketplace

bring together buyers and sellers of products and services

Transaction brokers

process online sales transactions

Heat map

two-dimensional representation of data in which values are represented by colors

Sustaining technology

Produces an improved product customers are eager to buy

Hypertext Transport Protocol (HTTP)

The Internet protocol Web browsers use to request and display Web pages using URL - universal resource locator

Mass customization

The ability of an organization to tailor its products or services to the customers' specifications. (Order M&Ms in special colors or with customized sayings)

Ebusiness Revenue Models

Advertising fees License fees Subscription fees Transaction fees Value-added service fees

Banner ad

Box running across a web page that contains advertisements and products and services of another business, usually another ebusiness

Technology (Ebusiness) Tool

Email, Instant Messaging, Podcasting, Videoconferencing, Web Conferencing, Content Management System

Ebusiness

Includes ecommerce along with all activities related to internal and external business operations such as servicing customer accounts, collaborating with partners, and exchanging real-time information

Click-and-mortar Business

a business that operates in a physical store and on the internet

Brick-and-Mortar Business

a business that operates in a physical store without an internet presence

Pure-Play (Virtual) Business

a business that operates on the internet only without a physical store

Internet Service Provider (ISP)

a company that provides access to the internet for a monthly fee

Click Through

a count of the number of people who visit one site and click on an advertisement that takes them to the site of the advertiser

Internet Corporation for Assigned Names and Numbers (ICANN)

a nonprofit organization that has assumed the responsibility for Internet Protocol (IP) address space allocation, protocol parameter assignment, domain name system management, and root server system management functions previously performed under U.S. government contract

Business model

a plan that details how a company creates, delivers, and generates revenues

Applet

a program that runs within another application such as a website

Domain name hosting (web hosting)

a service that allows the owner of a domain name to maintain a simple website and provide email capacity

Instant messaging (IMing)

a service that enables instant or real-time communication between people

Cookie

a small file deposited on a hard drive by a website, containing information about customers and their browsing activities

Web 1.0 (Business 1.0)

a term to refer to the World Wide Web during its first few years of operation between 1991 and 2003

Intermediaries

agents, software, or businesses that provide a trading infrastructure to bring buyers and sellers together

Affiliate programs

allows a business to generate commissions or referral fees when a customer visiting its website clicks a link to another merchant's website

associate (affiliate) program

allows a business to generate commissions or referral fees when a customer visiting its website clicks a link to another merchant's website

videoconference

allows people at two or more locations to interact via two-way video and audio transmissions simultaneously as well as share documents, data, computer displays, and whiteboards

cyborg anthropology

an individual who studies the interaction between humans and technology, observing how technology can shape humans' lives

eshop/estore/etailer

an online version of a retail store where customers can shop at any hour

Web Real-Time Communications (WebRTC)

an open source project that seeks to embed real-time voice, text, and video communications capabilities in web browsers

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 who 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

web conferencing (webinar)

blends videoconferencing with document sharing and allows the user to deliver a presentation over the web to a group of geographically dispersed participants

Podcasting

converts an audio broadcast to a digital music player

Hitbots

create the illusion that a large number of potential customers are clicking the advertiser's links, when in fact there is no likelihood that any of the clicks will lead to profit for the advertiser

Search engine ranking

evaluates variables that search engines use to determine where a URL appears on the list of search results

Content providers

generate revenues by providing digital content such as news, music, photos, or videos

Pay-per-call

generates revenue each time a user clicks on a link that takes the user directly to an online agent waiting for a call

Pay-per-click

generates revenue each time a user clicks on a link to a retailer's website

Pay-per-conversion

generates revenue each time a website visitor is converted to a customer

content management system

helps companies manage the creation, storage, editing, and publication of their website content

challenges facing ebusiness

identifying limited market segments, managing consumer trust, ensuring consumer protection, adhering to taxation rules

Adwords

keywords that advertisers choose to pay for and appear as sponsored links on the Google results pages

Interactivity

measures advertising effectiveness by counting visitor interactions with the target ad, including time spent viewing the ad, number of pages viewed, and number of repeat visits to the advertisement

Information reach

measures the number of people a firm can communicate with all over the world

Disintermediation

occurs when a business sells directly to the customer online and cuts out the intermediary

Paradigm shift

occurs when a new radical form of business enters the market that reshapes the way companies and organizations behave

Real-time communication

occurs when a system updates information at the same rate it receives it

Portals

operate a central website for users to access specialized content and other services

Service providers

provide services such as photo sharing, video sharing, online backup and storage

Intermediaries (Ebusiness form)

provide specialized information on behalf of producers of goods and services and their potential customers

Hypertext Markup Language (HTML)

publishes hypertext on the WWW, which allows users to move from one document to another simply by clicking a hot spot or link

Long tail

referring to the tail of a typical sales curve

Cybermediation

refers to the creation of new kinds of intermediaries that simply could not have existed before the advent of ebusiness

Information richness

refers to the depth and breadth of details contained in a piece of textual, graphic, audio, or video information

Reintermediation

steps are added to the value chain as new players find ways to add value to the business process

Universal Resource Locator (URL)

the address of a file or resource on the web such as www.apple.com

Ecommerce

the buying and selling of goods and services over the internet

HTML 5

the current version of HTML delivers everything from animation to graphics and music to movies; it can also be used to build complicated web applications and works across platforms, including a PC, tablet, smartphone, or smart TV

Dot-com

the original term for a company operating on the internet

Clickstream

the path the visitor takes through a website

Click fraud

the practice of artificially inflating traffic statistics for online advertisements

Clickstream analytics

the process of collecting, analyzing and reporting aggregate data about which pages a website visitor visits - and in what order

Taxonomy

the scientific classification of organisms into groups based on similarities of structure or origin

URL shortening

the transition of a long URL into an abbreviated alternative that redirects to the longer URL

Website ebusiness analytics

uses clickstream data to determine the effectiveness of the sire as a channel-to-market

Website traffic analytics

uses clickstream data to determine the efficiency of the site for the users and operates at the server level