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