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Business Driven Information Systems 5th Edition

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978-0073402987

978-0073402987 Chapter 3 Section 3.1 Web 1.0 – Ebusiness

April 4, 2019

EBUSINESS: ELECTRONIC

BUSINESS VALUE

One-hour film processing and digital cameras both contributed to

the demise of Polaroid, a solid company that had an innovative technology

and a captive customer base. The dilemma that faced Polaroid is a dilemma

that most organization face – the criteria an organization uses to make

business decisions for its present business could possibly create issues for its

future business. Essentially, what is best for the current business could ruin

it in the long term.

In the past few years, ebusiness seems to have permeated every aspect of

daily life. In just a short time, both individuals and organizations have

embraced Internet technologies to enhance productivity, maximize

convenience, and improve communications globally. This chapter focuses on

the disruptive technology, the Internet, and ebusiness processes that are

changing the nature of the buyer-seller relationship, the role of information

technology (IT), and organizational structures and tasks. The chapter also

discusses the opportunities and advantages found with developing

ebusinesses. Specific relationships have been developed in the chapter

between disruptive technologies and ebusinesses.

SECTION 3.1 – WEB 1.0 - EBUSINESS

•Web 1.0: Disruptive Technology

•The Four Ebusiness Models

•Ebusiness Tools for Connecting and Communicating

•The Challenges of Ebusiness

•

SECTION 3.2 – WEB 2.0 – BUSINESS 2.0

•Web 2.0: Advantages of Business 2.0

•Networking Communities with Business 2.0

•Business 2.0 Tools for Collaborating

•The Challenges of Business 2.0

•Web 3.0: Defining the Next Generation of Online Business

Opportunities

CHAPTER

SECTION 3.1

WEB 1.0 - EBUSINESS

What do steamboats, transistor radios, and Intel’s 8088 processor all have in

common? They are all disruptive technologies. Disruptive technologies

redefine the competitive playing fields of their respective markets.

Disruptive technologies tend to open new markets and destroy old ones.

Sustaining technologies tend to provide us with better, faster, and cheaper

products in established markets, but virtually never lead in markets opened

by new and disruptive technologies.

LEARNING OUTCOMES

Learning Outcome 3.1: Compare disruptive and sustaining

technologies, and explain how the Internet and WWW caused

business disruption.

Disruptive technologies offer a new way of doing things that initially does not

meet the needs of existing customers. Disruptive technologies redefine the

competitive playing fields of their respective markets, open new markets and

destroy old ones, and cut into the low end of the marketplace and eventually

evolve to displace high-end competitors and their reigning technologies.

Sustaining technologies produce improved products customers are eager to

buy, such as a faster car or larger hard drive. Sustaining technologies tend to

provide us with better, faster, and cheaper products in established markets

and virtually never lead in markets opened by new and disruptive

technologies.

The Internet and WWW caused business disruption by allowing people to

communicate and collaborate in ways that were not possible before the

information age. The Internet and WWW completely disrupted the way

businesses operate, employees communicate, and products are developed

and sold.

Learning Outcome 3.2: Describe Web 1.0 along with ebusiness and

its associated advantages.

Web 1.0 is a term to refer to the World Wide Web during its first few years of

operation between 1991 and 2003. 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. During Web 1.0, entrepreneurs began creating the first

forms of ebusiness. Ebusiness advantages include expanding global reach,

opening new markets, reducing costs, and improving operations and

effectiveness.

Learning Outcome 3.3: Compare the four categories of 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.

The primary di;erence between B2B and B2C are the customers; B2B

customers are other businesses while B2C markets to consumers. Overall,

B2B relations are more complex and have higher security needs; plus B2B is

the dominant ebusiness force, representing 80 percent of all online business.

Learning Outcome 3.4: Describe the six ebusiness tools for

connecting and communicating.

As firms began to move online, more MIS tools were created to support

ebusiness processes and requirements. The ebusiness tools used to connect

and communicate include email, instant messaging, podcasting, content

management systems, videoconferencing, and Web conferencing.

Learning Outcome 3.5: Identify the four challenges associated with

ebusiness.

Although the benefits of ebusiness are enticing, developing, deploying, and

managing ebusiness systems is not always easy. The challenges associated

with ebusiness include identifying limited market segments, managing

consumer trust, ensuring consumer protection, and adhering to taxation

rules.

CLASSROOM OPENER

GREAT BUSINESS DECISIONS – Edwin Land Develops the

Polaroid Camera

In 1937, Edwin Land started a company that made a polarizing plastic and

named it Polaroid. The business boomed. Land was taking family pictures

on his vacation in 1943 when his three-year-old daughter asked why they

had to wait so long to see the developed photographs. Land was struck with

the idea of combining the polarization technology with developing films. By

1950, Land had a camera that produced black-and-white images and by

1963, he released a camera that produced color pictures. The Polaroid

camera took o; and by the late 1960s, it was estimated that 50 percent of

American households owned one.

CLASSROOM EXERCISE

Disrupting the Classroom

Break your students into groups and ask them to identify the primary

di;erences between disruptive and sustaining technologies, along with

several current examples of each

Disruptive technologies:

Disruptive technologies redefine the competitive playing fields of their

respective markets

Disruptive technologies tend to open new markets and destroy old ones

Disruptive technologies typically cut into the low end of the marketplace

and eventually evolve to displace high-end competitors and their reigning

technologies

Sustaining technologies:

Sustaining technologies tend to provide us with better, faster, and

cheaper products in established markets

Sustaining technologies virtually never lead in markets opened by new

and disruptive technologies

CLASSROOM EXERCISE

VIDEOS TO START YOUR DISCUSSIONS

• WEB 2.0 The Machine Is Using Us

http://www.youtube.com/watch?v=6gmP4nk0EOE

• WEB 2.0 How Stu; Works

http://computer.howstuffworks.com/web-20.htm

CLASSROOM EXERCISE

Video Interview: Sir Tim Berners-Lee

The big talk at the WWW2006 conference is about the semantic web with its

promise of an "intelligent" net

Pallab Ghosh caught up with Sir Tim Berners-Lee - the man who invented the

world wide web back in 1991

http://news.bbc.co.uk/nolavconsole/ukfs_news/hi/newsid_5010000/newsid_50

14600/nb_wm_5014644.stm

CLASSROOM EXERCISE

Finding Innovation

Innovation, new ideas, and new technology are exciting. It is currently

estimated that everything we know technically will represent 1 percent of all

technology in 2050. Break your students into groups and ask them to search

the Internet for the most exciting form of innovation that is going to hit our

market and change our lives over the next ten years. Have your students

present their findings to the class and offer a small prize to the winner.

A few examples include:

Computers that offer smells, click on a perfume and the scent permeates

from your computer, movie theatres will offer smells that correspond to

the movie

Electronic toilets – analyze output and let you know if you getting sick

days before the cold actually hits. Great for rest homes and hospitals

Planes the size of small ships that offer shopping and restaurants

CLASSROOM EXERCISE

Where the Internet Really Started

Ask students, “How did the Internet (really) get started.” A few responses

might include: Al Gore (“Information Superhighway”), or the Department of

Defense (ARPANET), or even Bill Gates (Microsoft).

For many people, the Internet is the epitome of cutting-edge technology.

However, in the nineteenth century, the first “online communications

network” was already in place - the telegraph! In addition, at the time, it

was just as perplexing, controversial, and revolutionary as the Internet is

today. In essence, the telegraph was the first incarnation of the Internet.

Ask students to “Imagine an almost instantaneous communication system

that would allow people and governments all over the world to send and

receive messages about politics, war, illness, and family events. The

government has tried and failed to control it.” Was it the Internet? Nope,

the humble telegraph fit this bill way back in the 1800s. The parallels

between the now-ubiquitous Internet and the telegraph are amazing, offering

insight into the ways new technologies can change the very fabric of society

within a single generation.

Emphasize the history of the telegraph:

Begin with the funny story of a mile-long line of monks holding a wire and

getting simultaneous shocks in the interest of investigating electricity,

and ending with the advent of the telephone (this is the true scenario).

Discuss the early “online” pioneers: Samuel Morse, Thomas Edison, and a

seemingly endless parade of code-makers, entrepreneurs, and spies who

helped ensure the success of this communications revolution.

With the invention of the telegraph, the world of communications was forever

changed. The telegraph gave rise to creative business practices and new

forms of crime. Romances blossomed over its wires. In addition, attitudes

toward everything from news gathering to war had to be completely

rethought. The saga of the telegraph offers many parallels to that of the

Internet in our own time, and is a remarkable episode in the history of

technology.

CLASSROOM EXERCISE

First Movers that Flopped

The right technology at the wrong time. Ask your students to research the

Internet and find products that failed. This exercise can result in some

extremely funny products.

CLASSROOM EXERCISE

The 13 Most Embarrassing Web Moments

The Internet is the most eMcient information distribution system ever known.

But if you're not careful, it's also the perfect way to embarrass yourself in

front of the entire world.

http://www.pcworld.com/article/127823/EmbarrassingMoments.html

CLASSROOM EXERCISE

The Web’s Most Useful Sights

You have lots of stu; to get done. And these next-generation services can

help with everything from wrangling passwords to throwing a party.

http://www.pcworld.com/article/150897/UsefulSites.html

Will these sites be useful in Web 2.0?

How will these sites be different in Web 2.0?

CLASSROOM EXERCISE

AMNESTY INTERNATIONAL TURNS TO SOCIAL MEDIA

Social media users are to be given the chance to raise money for a

hard-hitting Amnesty International campaign against Shell. The U.K. branch

of the 50-year-old organization announced over the weekend that it is to use

its Twitter, Facebook, and MySpace accounts to bring in cash to run a

full-page newspaper ad next Tuesday, May 18, the day of Shell's AGM.

Ask your students to read the article and discuss the following:

• What are the advantages of using social networking for raising funds

for non-profits?

• What are the disadvantages of using social networking for raising funds

for non-profits?

http://www.fastcompany.com/1642747/amnesty-international-turns-to-social-

media-to-fund-anti-shell-ad-campaign?partner=rss

CLASSROOM EXERCISE

48 HOUR MAGAZINE

That sound you hear, of thousands of writers, designers and photographers

banging their heads against the wall to the beat of a ticking clock? That's the

sound of 48 Hour Magazine, a new publication that aims to go from

inspiration to execution in 48 hours and begins....now. Exactly two days from

now, 48 Hour will be available to you, the eager public, as a real, printed

magazine (and as a Web site, too, of course, don't be silly).

Ask your students to read the article and discuss the following:

• What are the limitations of “old media”?

• How are the editors of the 48 Hour Magazine using technology to

overcome these limitations?

• What are the advantages and disadvantages of the 48 Hour Magazine’s

model?

• If you had $50,000 would you invest in the 48 Hour Magazine? Why or

why not?

http://www.fastcompany.com/1640042/theme-is-announced-for-48-hour-mag

azine?partner=rss

CLASSROOM EXERCISE

WALL STREET JOURNAL AND FOURSQUARE

Foursquare, the social networking geotagging game has just pulled o; what

may one of its biggest partnership coups yet: It's snagged the Wall Street

Journal as a geolocation ad check-in. It's a fascinating old media meets new

Web media crossover.

Ask your students to read the article and answer the following:

1. Explain GPS and its role in Foursquare

2. Explain the statement in the article: “old media meets new web media”?

3. If your school could partner with Foursquare how would you recommend

using it to attract potential students?

4. If your school could partner with Foursquare how would you recommend

using it for current students?

http://www.fastcompany.com/1627992/foursquare-partners-wall-st-journal-ge

otagging-location-based-services-game-social-networkin?partner=rss

CORE MATERIAL

The core chapter material is covered in detail in the PowerPoint slides. Each

slide contains detailed teaching notes including exercises, class activities,

questions, and examples. Please review the PowerPoint slides for detailed

notes on how to teach and enhance the core chapter material.

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