Ch. 5: eCommerce: New Ways of Doing Business Flashcards
Definition of Internet
“A network of networks”. The Internet is broadly defined as a collection of networked computers that can “talk to one another”. The Internet is an infrastructure upon which services - such as e-mail, the Web, instant messaging, and many others - are delivered.
Internet
The worldwide publicly accessible system of interconnected computer networks that transmit data by packet switching.
Examples of various Internet services
The Web, Electronic mail (e-mail), Instant Messaging (IM), Voice over IP (VoIP), Blogs, Real Simple Syndication feeds (RSS), discussion groups (asynchronous electronic discussion), chat rooms (synchronous electronic discussion), File Transfer Protocol (FTP)
Electronic Data Interchange (EDI)
It enabled computer-to-computer exchange of structured data by two or more organizations that agreed on message standards.
Minitel
Introduced by France Telecom about 30 years ago as a tool to check telephone directories, ordering flowers, purchasing train/airline tickets, etc.
B2C
Transactions that involve a for-profit organization on one side as seller and an end consumer on the other as buyer.
B2B
Transactions in which two or more business entities take part.
C2C
Transactions that enable individual customers to interact and exchange directly.
C2B
Transactions that involve a for-profit organization on one side as buyer and an end consumer on the other as seller.
eGovernment
Electronic government refers to all transactions involving legislative and administrative institutions.
Brick and Mortar
Firms that have physical locations, such as stores.
Bricks and Clicks
Firms that have a hybrid operation: Both physical (store) and online (website)
Pure Pay
Firms that have no stores and provide their services entirely thru the Internet.
Business Model
The firm’s concept of: what product/service it offers, based on what value proposition, and how it will achieve a dominant position.
Revenue Model
How a firm plans to make money.
Pay for Service Revenue Model
The revenue model in which the firm offers a product/service and charges based on usage.
Subscription Revenue Model
The revenue model in which the firm offers a product/service and charges based on access regardless of the amount of usage.
Advertisement Support Revenue Model
The revenue model in which the firm offers a product/service for free but sells access to its audience to interested advertisers.
Affiliate Revenue Model
A revenue model in which revenue is generated from a third party based on customer traffic to the firm’s website.
Freemium Revenue Model
A revenue model in which the firm gives away its product/service for free, but then offers premium services for a fee.
The revenue model of NetFlix.com
(Subscription) Customers pay for the right to access the content and then are able to use as much of the service as they need.
Dominant Business Models
As the Internet and the Web emerged as a stable platform for commerce, a number of business models were proposed by entrepreneurs and organizations seeking to profit in the “network economy”. The most relevent models were Online Retailing, Infomediaries, Content providers, Online Communities, and Exchanges.
Infomediary
Firms that provide specialized information on behalf of product/service providers by linking to online retailers and receiving compensation for referrals as well as advertisement.
Exchanges
Firms that bring buyers and sellers together in a marketplace.
Disintermediation
It is exemplified by many travel agents that found it difficult to stay in business after airlines started selling directly to customers and eliminated travel agent commissions.
Reintermediation
It is exemplified by Orbitz, a website that acts a s a new form of intermediary between customers and airline companies.
Market Efficiency
It is exemplified by travel meta-search infomediaries, such as Skyscanner, which eliminated significant costs of searching for products/services to customers.
Channel Conflict
It’s exemplified by Compaq which faced significant resistance from electronics store chains carrying its devices when it created its direct-sale website.
Emergent Structure
Technology that makes it easier for users to interact with and customize online applications, such as creating a folksonomy.
What is Web 2.0 and what are some examples of Web 2.0 services & technologies
Web 2.0: is relatively general and not precisely defined, it has the value of enabling us to group a wave of technologies and IT innovations that helped move the Web from a static platform made of flat pages, to a dynamic place both in terms of user experience and content.
Services: Wiki, SideWiki, Blogs, RSS, Tags, AJAX, Microblogs
Technologies: Social Networking, Long-tail strategies, Mashups
Wiki
A technology that enables coauthoring and editing of Web content.
Blog
An online journal published on the web by an individual.
RSS
A technology that enables the creation of short summaries of content with a link to the full-fledged version.
Tags
Short descriptors associated with an object to categorize the increasing amount of available content.
AJAX
Technologies that enable the development of interactive client-side application running on the Web.
Microblogs
Unidirectional, short bursts of communication to a self-selected audience of followers.
Long-Tail Strategy
When customer interests are highly varied, this strategy focuses on selling “specialty” (not very popular) products to a large number of customers rather than selling very popular products to a relatively small number of customers.
Mashup
Stringing together available digital resources into a novel web application that delivers new functionalities.
