MIS Chapter 3

Ebusiness Advantages

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

3 challenges of business 2.0

1. technology dependence 2. information vandalism 3. violations of copyright and plagiarism

website bookmark

A locally stored URL or the address of a file or Internet page saved as a shortcut

Disruptive Technology

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

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.

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

viral marketing

A technique that induces websites or users to pass on a marketing message

Web 1.0

A term to refer to the WWW during its first few years of operation between 1991 and 2003

web browsers

Allow users to access the WWW

Information Vandalism

Allowing anyone to edit anything opens the door for individuals to purposely damage, destroy, or vandalize website content

social network

An application that connects people by matching profile information

World Wide Web Consortium (W3C)

An international community that develops open standards for the Web.

Allowed business to...

Answer simple questions quickly and easily. Resolve questions or problems immediately. Transmit messages as fast as naturally flowing conversation. Easily hold simultaneous IM sessions with multiple people. Eliminate long-distance phone charges. Quickly identify which employees are at their computer

Technology Dependence

As society becomes more technology-dependent, outages hold the potential to cause ever-greater havoc for people, businesses, and educational institutions.

Web 3.0

Based on "intelligent" Web applications using natural language processing, machine-based learning and reasoning, and intelligence applications

banner ad

Box running across a web page that contains advertisements

collective intelligence

Collaborating and tapping into the core knowledge of all employees, partners, and customers

wiki

Collaborative Web site that allows users to create, add, remove, or moify content

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

Adhering to Taxation Rules

Companies that operate online must obey a patchwork of rules about which customers are subject to sales tax on their purchases and which are not

social tagging

Describes that collaborative activity of marking shared online content with keywords or tags as a way to organize it for future navigation, filtering, or search

search engine ranking

Evaluates variable that search engines use to determine where a URL appears on the list of search results

Content Provider

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

Ebusiness

Includes ecommerce along with all activities related to internal and external business operations

Managing Consumer Trust

Internet marketers must develop a trustworthy relationship to make that initial sale and generate customer loyalty

Knowledge Management (KM)

Involves capturing, classifying, evaluating, retrieving, and sharing information assets in a way that provides context for effective decisions and actions

Egovernment

Involves the use of strategies and technologies to transform government(s) by improving the delivery of services and enhancing the quality of interaction between the citizen-consumer within all branches of government

tacit knowledge

Knowledge contained in people's heads

personalization (opening new markets)

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

Violations of Copyright and Plagiarism

Online collaboration makes plagiarism as easy as clicking a mouse

sustaining technology

Produces an improved product customers are eager to buy

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

tags

Specific keywords or phrases incorporated into website content for means of classification or taxonomy

hypertext transport protocol

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

mobile business

The ability to purchase goods and services through a wireless Internet-enabled device

Identifying Limited Market Segments

The main challenge of ebusiness is the lack of growth in some sectors due to product or service limitations

Ensuring Consumer Protection

The need for a company to protect its customers. System's security must allow the site to be flexible and easy to use.

Web 2.0

The next generation of Internet use - a more mature, distinctive communications platform characterized by three qualities Collaboration Sharing Free

types of clickstream data metrics

The number of page views (i.e., the number of times a particular page has been presented to a visitor). The pattern of websites visited, including most frequent exit page and most frequent prior website. Length of stay on the website. Dates and times of visits. Number of registrations filled out per 100 visitors. Number of abandoned registrations. Demographics of registered visitors. Number of customers with shopping carts. Number of abandoned shopping carts.

Microblogging

The practice of sending brief posts (140 to 200 characters) to a personal blog, either publicly or to a private group of subscribers who can read the posts as IMs or as text messages.

capturing the long tail

This strategy demonstrates how niche products can have viable and profitable business models when selling via ebusiness. In traditional sales models, a store is limited by shelf space when selecting products to sell. For this reason, store owners typically purchase products that will be wanted or needed by masses, and the store is stocked with broad products as there is not room on the shelf for niche products that only a few customers might purchase. Ebusinesses such as Amazon and eBay eliminated the shelf-space dilemma and were able to offer infinite products.

Brick-and-Mortar Business

Traditional businesses with actual stores in which trade or retail occurs, without an internet presence

search engine

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

Click-and-Mortar Business

a business that operates in a physical store and on the Internet EX: Barnes & Noble

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

hashtag

a keyword or phrase used to identify a topic and is preceded by a hash or pound sign (#)

internet

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

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

Application Programming Interface (API)

a set of routines, protocols, and tools for building software applications used for mash ups

collaboration system

a set of tools that supports the work of teams or groups by facilitating the sharing and flow of information

cookie

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

Real Simple Syndication

a web format used to publish frequently updated works, such as blogs, news headlines, audio, and video, in a standardized format

intermediaries

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

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

videoconferencing

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

social bookmarking

allows users to share, organize, search, and manage bookmarks

blog

an online journal that allows users to post their own comments, graphics, and video

native advertising

an online marketing concept in which the advertiser attempts to gain attention by providing content in the context of the user's experience in terms of its content, format, style, or placement

eshop

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

closed source

any proprietary software licensed under exclusive legal right of the copyright holder

Business-to-consumer (B2C)

applies to any business that sells its products or services to consumers over the internet EX amazon

Consumer-to-business (C2B)

applies to any consumer who sells a product or service to a business on the internet EX priceline.com

Business-to-business (B2B)

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

Consumer-to-consumer (C2C)

applies to customers offering goods and services to each other on the internet EX ebay, craigslist

mashup editors

are WYSIWYG, or what you see is what you get tools. They provide a visual interface to build a mashup, often allowing the user to drag and drop data points into a web application

web conferencing

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

online marketplaces

bring together buyers and sellers of products and services

asynchronous communication

communication such as email in which the message and the response do not occur at the same time

synchronous communication

communications that occur at the same time such as IM or chat

explicit knowledge

consists of anything that can be documented, archived, and codified, often with the help of IT

open system

consists of nonproprietary hardware and software based on publicly known standards that allow third parties to create add-on products to plug into or interoperate with the system

source code

contains instructions written by a programmer specifying the actions to be performed by computer software

user contributed content

content created and updated by many users for many users

mash up

content from more than one source to create a new product or service

4 characteristics of Web 2.0

content sharing through open sourcing user-contributed content collaboration inside the organization collaboration outside the organization

Podcasting

converts an audio broadcast to a digital music player

network effect

describes how products in a network increase in value to users as the number of users increases

clickstream data

exact pattern of a consumer's navigation through a site

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

4 Challenges of Ebusiness

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

Digital Darwinism

implies that organizations that cannot adapt to the new demands placed on them for surviving in the information age are doomed to extinction

Adwords

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

social network analysis

maps group contacts identifying who knows each other and who works together

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 (Expanding Global 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 central website for users to access specialized content and other services

Pure-Play (Virtual) Business

operates only in the internet EX. google

transaction broker

processes online sales transaction

service providers

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

Infomediaries

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 (reducing costs)

referring to the tail of a typical sales curve

open source

refers to any software whose source code is made available free for any third party to review and modify

Cybermediation

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

information richness (Expanding Global Reach)

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

crowdsourcing

refers to the wisdom of the crowd

social media

refers to websites that rely on user participation and user-contributed content

social graphs

represent the interconnection of relationships in a social network

Folksonomy

similar to taxonomy except that crowdsourcing determines the tags or keyword-based classification system

crowd funding

sources capital for a project by raising many small amounts from a large number of individuals, typically via the internet

Reintermediation

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

Knowledge Management Systems

supports the capture, organization, and dissemination of knowledge throughout an organization

mass customization (opening new markets)

the ability of an organization to tailor its products or services to customers specifications

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

social networking

the practice of expanding your business and/or social contacts by constructing a personal network

Information Architecture

the set of ideas about how all information in a given context should be organized

reputation system

where buyers post feedback on sellers