INFS1000 Lec 10 eBusiness and Web2.0

Question 1

What is E-COMMERCE? What is E-BUSINESS?

Answer 1

• E-commerce is the process of buying / selling products / services on the internet.
• E-business refers to the broader context in which e-commerce takes place. (e.g. electronic marketing, customer service).

Question 2

What are the 5 main categories of e-Business? and give examples of each.

Answer 2

1. B2C (e.g. Amazon).
2. B2B (e.g. Alibaba wholesale).
3. C2C (e.g. Ebay).
4. G2C government to citizen (e.g. medicare online).
5. m-Commerce (e.g. location based services like weather, traffic).

Question 3

What are the 3 major issues with online selling?

Answer 3

1. Channel conflict: cannibalisation of traditional store sales, price conflicts leading to customer confusion.
2. Logistics expenses: customs issues, products returns, may be higher than expected.
3. Customer service expenses: added services must be considered.

Question 4

What the characteristics of Web2.0 - “Social Media”? (5)

Answer 4

1. INTERACTIVE: user generated content.
2. Software as a FREE SERVICE.
3. Based on freely available OPEN SOURCE code.
4. Product value increases with use (e.g. FB, Amazon).
5. Social participation and communities, ACTIVE consumption of info and SERVICES.

Question 5

What are the characteristics of Web1.0 - “Online Catalogue”? (5)

Answer 5

1. CONTROLLED: can only visit sites, cannot contribute.
2. Software as a PRODUCT with LICENSE FEES. (e.g. Word)
3. Based on PROPRIETARY TECH so users can’t see / change how app works.
4. Product value fixed.
5. PASSIVE consumption of info and products. (no network effect).

Question 6

What are the 4 ways a business can benefit from Web2.0?

Answer 6

1. Social networking (e.g. FB, Linkedin): platform to connect individuals based on interests, location, profession, create sense of community, pursue shared interests.
2. Mashups and API’s
3. Market Research
4. Crowdsorucing

Question 7

How can business benefit from MASHUPS and API’s?

Answer 7

Webpage/apps that uses and combines data / funoctionality from 2 or more sources to create new services. (e.g. safe2pee.org, address maps).

Question 8

What are the 3 ways a business can benefit from MARKET RESEARCH?

Answer 8

1. Feedback websites: referral value is huge because “crowd mind” “herding behaviour” (e.g. Zomato).
2. Sentiment analysis: using software to analyse data on social media platforms.
3. Systematically monitor social media to sense public image of your brand.

Question 9

What are the benefits of CROWDSOURCING? (e.g. YouTube)

Answer 9

• Can tap into wide range of talent.
• Interdisiplinary collaboration brings fresh input.
• Problems explored quickly at low cost.

Question 10

What are DIGITAL PRODUCTS?

Answer 10

Text / image / multimedia resources that can be distributed / consumed online, that do not have a PHYSICAL EXISTENCE, and delivered through COMMERCIAL PLATFORMS (e.g. iTunes, YouTube).

Question 11

What are the 3 characteristics of digital products?

Answer 11

1. High first copy cost: low marginal costs, hence value based pricing (as opposed to cost based pricing).
2. Easy to transfer and replicate without quality loss: commodity like - same no matter where you aquire (e.g. music files).
3. Easy to modify: to produce new / divergent products from original source.