Network Applications & eCommerce

1. Why has the web grown so dramatically?

The web has grown so dramatically because of its usefulness and the connection it provides to people all around the globe.

-        As computers became more accessible, the rise of the Internet/the web was able to move closely behind it.

-        Advanced technology (software, hardware, media) also had a place in this growth.

-        Invention of Internet softwares such as Microsoft’s Internet Explorer, Firefox and Safari, have made the internet much easier to access and navigate.

-        Easier communication through email and now social networks has also impacted on this.

2. What is Web 2.0, how does it differ from 1.0?

Web 2.0 is known as the Live Web. Personal users using Web 2.0 are able to build their own content online.

The main features of Web 2.0 are tags, blogs, RSS (Really Simple Syndication) and Wikipedia.

Web 2.0 differs from Web 1.0 in the following ways:

Web 1.0	Web 2.0
Britannica Online	Wikipedia
mp3.com	Napster, Limewire, Bearshare
Personal websites	Blogging
Directories	Tagging
Ofoto	Flickr
Publishing	Participation

3. How could a web 2.0 technology be used in business?

Business users can use Web 2.0 to access information for their employees and customers:

Internal Use	External Use
Blogs – to let employees or company stakeholders be up to date and informed on what’s going on in the company.	Reviews – on the company’s own products or those of their competitors. This allows the business to see how their product is fairing against others in the market.
Email – easier, and more environmentally-friendly communication.	Email – communication to people outside of the business; e.g. potential partners, customers, etc.
RSS – statistics are readily available to managers in real time.	RSS – can easily update potential customers on the company’s products and their news.
Intranet – the company website for employee’s only.	Website – this can work alongside the RSS.

4. What is eBusiness, how does it differ from eCommerce?

eBusiness is when a business operates via the internet. This process isn’t only used for buying and selling products or resources, but also for serving customers and also communicating with the company’s business contacts & partners.

eCommerce is the buying and selling of goods & services via the Internet. It is online transactions.

The differences between these two is that a company using eBusiness tools is connected to its customers; it makes its sales via the Internet. Whereas an eCommerce business does not do this.

eBusiness also participates in online exchanges of information.

5. What is pure and partial eCommerce?

Pure eCommerce:

Pure eCommerce is a type of business whose transactions are mainly carried out via the Internet.

Partial eCommerce:

Partial eCommerce is a type of business whose transactions are mainly done in the real world (‘offline’), but does also use the internet for some transactions.

6. List and describe the various eBusiness models?

A eBusiness Model is an approach to conducting electronic business over the internet.

Model:	Definition	Examples
Business-to-business (B2B)	Businesses that buy/sell to each other over the Internet.	eMarketplaces
Business-to-consumer (B2C)	Businesses that sell to consumers over the Internet.	eShops, eMalls
Consumer-to-business (C2B)	Consumers that sell products/services to businesses over the Internet.	-
Consumer-to-consumer (C2C)	‘Websites that offer goods/services to assist consumers interacting with each other over the Internet.’	eAuctions – eBay, C2C communities

eMarketplaces – interactive business communities that provide a central market where many buyers/sellers can interact and engage in eBusiness activies.

eShops – a retail store where customers can shop 24/7 without leaving their home/office.

eMalls – a number of eShops; it’s a gateway where consumers can access many eShops.

eAuctions – ‘sellers and buyers solicit consecutive bids from each other and prices are determined dynamically.

7. List and describe the major B2B models?

The major B2B models are:

-        Sell-side B2BWhere one seller sells to multiple buyers.

-        Buy-side B2BWhere one buyer buys from multiple sellers.

-        Electronice ExchangeWhere a business acts as an intermediary between multiple buyers and sellers.

-        Collaborative CommerceWhere a ‘Hub Manager’ acts as an intermediary between buyers, sellers, industry associations, universities, communities, governments and other bodies.

8. Outline 2 opportunities and 2 challenges faced by companies doing business online?

Opportunities
Customer Loyalty	Customer loyalty can potentially increase through eBusiness. This is because with the additional channels for communication, responding to and accessing customers is a lot easier.
Convenience	‘eBusiness automates and improves many of the activities that make up a buying experience.’

Challenges
Security	Because the Internet is universal, companies have to be able to protect themselves against accidental or malicious misuse. ‘System security must not create prohibitive complexity or reduce flexibility. Customer information must be protected from internal and external misuse.’
Leveraging Existing Systems	The Internet is an alternative way to conduct business. Therefore a company must incorporate its existing system with its online system to avoid duplicating functionality and to maintain usability, performance and reliability.