Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
EBUSINESS: ELECTRONIC
BUSINESS VALUE
One-hour lm 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. Specic 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: Dening the Next Generation of Online Business
Opportunities
3
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
redene the competitive playing elds 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 o;er a new way of doing things that initially does not
meet the needs of existing customers. Disruptive technologies redene the
competitive playing elds 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 rst 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 rst
forms of ebusiness. Ebusiness advantages include expanding global reach,
opening new markets, reducing costs, and improving operations and
e;ectiveness.
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 o;ering 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 rms 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 benets 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 lms. 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 redene the competitive playing elds 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 ndings to the class and o;er a small prize to the winner.
A few examples include:
Computers that o;er smells, click on a perfume and the scent permeates
from your computer, movie theatres will o;er 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 o;er 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 rst “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 rst 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 t this bill way back in the 1800s. The parallels
between the now-ubiquitous Internet and the telegraph are amazing, o;ering
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 o;ers 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 nd 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 di;erent 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-prots?
• What are the disadvantages of using social networking for raising funds
for non-prots?
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.
