E-business

Chapter 3 

                                                   

1.Why has the web grown so dramatically?

There are many influencing factors within technology, which makes it greatly popular within society, and this has allowed it to dramatically grow. Much use of the Internet within business it due to the information that can be found within the many sites that the ‘world wide web’ proves. The fact that there is such a variety of information and that it is so content rich allows for greater use to new and old businesses. It is also personalized to particular people and companies and it is easy to access and is open to the public. The main reasoning for it is grow in the past years is due to its ability to be useful to people in all different areas of life.

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

To put it in general terms Web 2.0 is much more complex and interactive when measured up against web 1.0. Web 1.0 is generally explained as ‘read only’ web, this means that a business (for example) creates a website to inform its target market about the products, where they are available and even upcoming events and functions. Though this is helpful to the market, as technology grows the ability for this information to be more two way then one way becomes apparent. Web 2.0 allows for the respondent of the information and data that is presents on a site to ‘respond’ to that information. A prime example of this would be on a blogsite where information is posted and then responded to through comments; Facebook the social networking program is another example of how web 2.0 is a more complex yet user enhancing web system.

Figure 3: How does web 1.0 and 2.0 compare?

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

Web 2.0 is a very effective way for business to improve different areas of marketing, communication and relation both within the company and between the company and the consumer. It allows for the managers of the company and the employees to quickly communicate through internal IM sites. To the general public web 2.0 allows for them to be able to ask questions and receive quick answers about queries they have and it also allows for things about the product to be constantly promoted to the people of the world.

Figure 4: Web 2.0

4.   What is E-Business, how does it differ from E-commerce?

E-business refers to the complete workings of a business within an online forum. From buying and selling, serving the customers and relating to business partners E-business refers to each aspect of the company and how it relates via the Internet to its customers. E-commerce on the other had refers to the buying and selling of products over the Internet. The main difference between the two is the e-business refers to online exchanges with the manufacture and suppliers being able to view and monitor production schedules and financial companies allowing there customers to view their banking and other money related accounts online.

5.   What is pure and partial eCommerce?

There are many examples of partial and pure e-commerce transacting that are used everyday by people around the world. Pure e-commerce refers to transitions that happen via digital means where the product is online transferred to the customer in digital copy. An example of a program that uses pure e-commerce is Itunes, there data and products are never purchased as hard copy and are received onto the computer online there transfer of music, applications and even books creates a reduction of the materials that would be needed when one of these products is purchased within a store. Partial e-commerce on the other hand refers to the purchasing of goods over the Internet when receiving a physical product in the future.

6.   List and describe the various E-Business models?
There are 4 major models of e-business:
Business-to-business (B2B): Applies to businesses buying and selling ther products on the internet to each-other.
Business-to-consumer (B2C): any business which sells its products over the internet to its consumers. Examples; eShops and eMalls.
Consumer-to-business (C2B): Any consumer who sells his or her products or services to a business over the internet. this could refer to such as artists (painters/photographers) selling the works to magazines or to exhibition houses and can even hold things like customers fulfilling surveys on business websites as being part of the C2B model.      
Consumer-to-consumer (C2C): Ebay is a prime example of a C2C system, where like-minded buyers and sellers are connected through the online auction. This model aims to connect customers via offering goods and services which assist consumer interaction with each-other over the internet. 

7.   List and describe the major B2B models? 

The main way that B2B models work is through electronic or eMarketplaces. When it comes to buying and selling products eMarketplaces aim at tightening the relation between buyers and sellers. In a business-to-business model this style of market place alows for businesses to browse the options and pricing of products that they wish to purchase.

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

There are many opportunities and challenges that can be faced when business begin to create an online version of their company. Opportunities for growth are seen within companies that explore their online market. When companies use online business their product is not only seen in the community that it is based but is also seen by the nation and even possibly by an international audience, this can create more work within a company and bring what there aims are to a much larger group of people. The use of the internet as a tool within business is effective as it is a simple way to communicate to other business and people whom may be interested in the company and also allows for the company’s aims and values to be known by a larger number of people.

Along with the opportunities of online businesses there are also challenges. The major challenge within an online business is that the information on the site is available to all who approach the site (within or outside the company), this poses a risk with security of patrons, their details and there identities. For example if a purchase is made online a credit card is gerentally needed this in itself can lead to grate loss of money if the wrong people were able to access the information that is contributed within that transaction. Another less significant downfall of online business is that, particularly with reference to online shopping, the products are not physically able to be tested, seen or tried on and therefore products may be not as good or not correct compared to what the customers thought they were purchasing. When these problems occur there is generally an exchange or refund policy that is sighted somewhere on the web site.

Advantages and disadvantages aside the idea that business can become electronic opens many new jobs and areas which can be explored and built on to create new ways for companies to communicate within a society.

Stratigic decision making:

Chapter 2

 1.   Define TPS & DSS, and explain how an organisation can use these
systems to make decisions and gain competitive advantages

TPS stands for Transaction processing system and is the analyst in an organisation. The most common example of this type of system is a pay roll or order-entry system. This is essential within a business as it is able to store transactional data and is able to assist in analysis of, for example daily sales.

DSS stands for Decision support system and is also successful with analysis of data. A common example of the use of this system in a business is the Wellington taxi company ‘combined taxis’. They used this system to compete with other rival taxi companies by allowing it to use GPS systems to allow taxis closest to a call to attend a pick up. This use of the system shortened the waiting time for customers and ‘In 2009, as a result of such technology upgrades, the company was still the largest of 27 taxi companies servicing the greater Wellington region’ (http://www.taxi.co.nz). These types of advantages can be gained by the technology used in systems such as DSS.

     2. Describe the three quantitative models typically used by decision support systems.

Sensitivity analysis: studies the impact that changes in one (or more) of a model will have on the rest of the model. The general test when using this style of analysis is to change one value and monitor its effect on the other variables.

What-if analysis: analysis of the impact of an assumption of a change on a model.

Goal-seek Analysis: aims to find a value or piece of data, which is necessary to input so as to obtain a goal solution. Unlike what-if analysis, which inputs data in, to test what the outcome will be on a situation goal-seek analysis inputs a target value and then alters the other variable until the goal value is achieved. 

     3. Describe a business processes and their importance to an organisation.

The business process refers to the way in which the business runs internally to create success within the market in which it is set. By creating a business process there is a physically determined process or set of steps in which the business must take so as there tasks are successful. This means that if the business process is not precise and focused directly on what will benefit the business then the business is going to be less profitable or thriving that its competitors. In general is said that the better the business process the more successful the business will become.

     4. Compare business process improvement and business process re-engineering.

Business process improvement is a continual assessment and improvement of the workings within a business. There is a continual mapping out of the steps within the company’s business process and revaluating what is being done, what can be done better and what can be added to the process to make the business more successful. Business re-engineering does not assess the success of the business process buy adding or re-vamping what is already being done. This actually refers to the total reconstruction of the business process when it is seen to be unsuccessful. In reality business process should be more successful and more cost effective.

     5. Describe the importance of business process modeling (or mapping) and business process models.

Business process models are graphic description of how the business runs and the business process modeling (or mapping) is the physical activity of creating a graphic form of the business process in the form of a flow chart or process map. These types of stages in a business allows for images of how the company runs to be seen and then for steps of analysis such as the goal-seek or what-if analysis to be used to improve and determine the best and most successful steps within the business process and the ones which are not necessary for the business to run successfully. 

Information systems in business:

Chapter 1

     1. Explain information technology’s role in business and describe how you measure success?

Technology has enhanced the workings of businesses all around the world. It works with efficiency of how the company runs so as they are able to reduce costs, improving productivity and generating growth within the company. The Growths of technology has not only improved efficiency but has improved effectiveness of things such as communication. Within companies the use of wireless Internet connections, smart phones and instant messaging communication has become simpler and the ability for work to be taken out of the office and begin before they arrive at the office.

     2. List and describe each of the forces in Porter’s Five Forces Model?



Figure 1: Porters 5 forces model.



Buyer power: Refers to the ability to impact the price that a product will cost. Loyalty programs are one way in which businesses can reduce the power the buyers have. They do this so as to encourage interaction between the buyer and the company by rewarding their ‘loyalty’ to the company.

Supplier power: Supplier power is highest when there is one main supplier has total power over a particular industry. For example when the supplier raises the price on a product the final price is generally risen so as the smaller business makes a profit. This also means that the suppliers have power over how much buyers will spend if they want to purchase a product.

 Threat of substitutes: Highest when there are many different aspects of a product or service and low when there are alternatives to choose  from.                                                                                                                                                                  
Threat of mobility: becomes more possible when it is easy for new companies and products to enter a market. Different aspects of a company are added to create difficulty for new business. For example a company entering a particular market must be able to supply the same or better products and additional advantages to successfully enter the market area.

Rivalry among existing competitors: This is high when there is an area, which is largely competitive and low when the need or want a particular product is low.

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     3. Describe the relationship between business processes and value chains?

Business process: by definition is a set of activities, which accomplish a specific task, e.g. processing a customers order.

Value chains: This approach attempts to enable the “organization to provide unique value to its customers.” To create a value chain the company must assess their organization within a series of process and identifying which facet of their business is of best value to the success of the company.

Value chains tend to be more focused on how to better the company where the business process is how a specific task is taken out. The value chain is often aligned with porter’s five forces model.

     4. Compare Porter’s three generic strategies?

Each of these generic strategies are used by businesses that are beginning to break through in a specific industry. The three things porter specifies are cost leadership, differentiation or focus strategies when formulating a business focus. Broad strategies focus on a large market segment while focused strategies on smaller ‘niche’ markets. Focus strategies also focus on either cost leadership of differentiation.



Figure 2:Model of porters Generic stratagies!



Cost leadership: attempting to be the lowest price on the market so as to make the highest profit from sales. This refers back to the value chain, but focuses on cost reduction so as to lower pricing of products. Though this may benefit the company’s incoming funds the focus on cost leadership can diminish other areas of the business.

Differentiation: differentiation is an analysis and focus on one company’s service level to customers in comparison with other competitors. This type of focus though is effective in creating more successful processing compared to other business but it may lead to extra costs placed on the business, for example advertising the differentiated product.

Focus strategies: porter identified focus as a ‘mediator’ between cost leadership and differentiation. This section of the model focuses on a particular niche’ of society and aims to produce products that that particular area wants or needs. The use of the other strategies enhances the advantages of the focus strategy. 

Each strategies works on their own and would probably not work when put together though each focuses on different aspects of the business that is using the strategy.

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