Chap 3- Web 1.0 Business(1)

Introduction and Overview

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Chapter Introduction

• Learning Theme: How learning transforms everything.

Chapter Overview

Section 3.1: Web 1.0—Ebusiness

• Focus on disruptive technology.

• Explore four ebusiness models.

• Discuss tools for connecting and communicating in ebusiness.

Section 3.2: Web 2.0—Business 2.0

• Understand advantages of Business 2.0.

• Explore networking communities with Business 2.0.

• Examine Business 2.0 tools for collaborating.

• Define Web 3.0 opportunities.

Introduction to Web Business

• Focus on Technology & Coexistence

• Discuss the role of technology in modern business.

• Highlight readiness for Web 3.0.

Disruptive Technology

Digital Darwinism

• Companies unable to adapt to new demands face extinction risks.

• Example: Polaroid's bankruptcy.

Disruptive vs. Sustaining Technology

Disruptive Technology

• Introduces new methods not initially linked to existing customer needs.

Sustaining Technology

• Improves on existing products to meet customer demands.

The Innovator’s Dilemma

• Understanding the Dilemma: Established companies can leverage disruptive tech while maintaining customer relations.

Internet and WWW as Disruptors

Internet Overview

• Global network connecting computers for communication.

• Transition from military to commercial applications.

World Wide Web (WWW)

Defining the WWW

• Provides access to documents via HTML.

• Web Browsers: Facilitate access to WWW.

• HTTP: Protocol for requesting web pages via URLs.

Growth Factors of the WWW

Reasons for Expansion

• Microcomputer revolution, networking advancements, ease of browser use, email cost-effectiveness, and flexibility in web creation.

Web 1.0 Introduction

Ebusiness Definition

• Encompasses ecommerce and all related business operations.

• Ecommerce: Internet-based buying and selling.

Paradigm Shift

• New business forms reshape organizational behavior.

• Web 1.0: Early stages of the WWW (1991-2003).

Ebusiness Advantages

Benefits of Ebusiness

• Global Reach: Enhances communication worldwide.

• Market Expansion

• Cost Reduction

• Effectiveness Improvement

Global Reach

Information Richness & Reach

• Richness: Details in information.

• Reach: Communication potential across global audiences.

New Market Opportunities

Mass Customization

• Tailor products/services to customer specifications.

Personalization

• Offers tailored to customer preferences based on data.

Cost Reduction Strategies

The Long Tail Concept

• Reference to sales curve indicating revenue opportunities from niche markets.

Disintermediation

Direct Sales

• Bypasses intermediaries for online customer sales.

Intermediaries

• Entities that facilitate transactions between buyers and sellers.

Improving Effectiveness

Heat Map

• Visual data representation using color to represent values.

Interactivity

• Measures visitor engagement with ads.

Stickiness

• Time spent on websites.

Website Data Analysis

Viral Marketing

• Strategies propagate marketing messages for increased visibility.

Clickstream

• Tracks visitor navigation and website behavior metrics.

Clickstream Analytics

Definition and Use

• Analyzing visitor navigation patterns for marketing effectiveness.

Showrooming

• Physical browsing followed by online purchasing for cost savings.

Ebusiness Models Overview

Definition

• Framework outlining how a company generates revenues online.

Four Ebusiness Models

Model

• B2B: Business buying/selling to each other online.

• B2C: Business selling products/services to consumers online.

• C2B: Consumers offering products/services to businesses online.

• C2C: Consumers trading with each other online.

B2C Operations

B2C Ebusiness Models

• Overview of different operations in B2C.

Common Ebusiness Forms

Ebusiness Types

• Content Providers

• Infomediaries

• Online Marketplaces

• Portals

• Service Providers

• Transaction Brokers

Search Engine Basics

Keyword Usage

• Keywords enable searches on the internet.

Search Engine Functionality

• Finds pages using key word matching; Example: Google.

Search Engine Optimization (SEO)

SEO Definition

• Combines various techniques to enhance website visibility in search results.

Search Results Types

• Organic: Unpaid results relevant to key words.

• Paid: Links purchased to appear in search results.

Ebusiness Revenue Models

Types of Revenue Models

• Advertising, license, subscription, transaction fees, value-added service fees.

• Pay-per-click, pay-per-call, pay-per-conversion.

Ebusiness Fraud

Affiliate Program

• Generates commissions through customer referrals to other merchant sites.

Click Fraud

• Artificially inflating traffic statistics for ads.

Hitbots

• Generate fictitious clicks without potential profit.

Ebusiness Communication Tools

Tools

• Email, podcasting, video chat, instant messaging, content management systems (CMSs).

Detailed Ebusiness Tools

Communication Overview

• Email: Digital message exchange.

• Instant Messaging: Real-time communication tool.

• Podcasting: Digital audio broadcast feature.

• Video Chat: Online visual communication using webcam technology.

Introduction to Web 2.0

Web 2.0

• Next-gen internet characterized by enhanced collaboration, sharing, and free information exchange.

Learning Outcomes for Web 2.0

Web 2.0 Characteristics

• Collaboration

• Sharing

• Free Information Flow

Advantages of Business 2.0

Direct-to-Consumer Model

• DTC: Companies control marketing, selling, and shipping.

• Impact on Customer Experience: Enhanced data collection and reduced operational costs.

Business 2.0 Characteristics

Overview

• Key elements that distinguish Business 2.0 from previous models.

Content Sharing and Open Sourcing

Open Systems

• Nonproprietary hardware/software supporting add-ons and interoperability.

Open Source & Closed Source

• Open source: Free access to modifying software.

• Closed source: Proprietary software with limited user access rights.

User-Contributed Content

Definition and Elements

• Created and updated by users collectively.

Native Advertising

• Content designed to fit the user's experience context.

Reputation Systems

• Buyer feedback mechanisms for sellers.

Collaboration Inside Organizations

Collaboration Tools

• Assist teams in sharing/information flow.

Collective Intelligence

• Leverages collective knowledge for better decision-making.

Knowledge Management

• Captures, classifies, and disseminates knowledge effectively.

Knowledge Management Systems (KMS)

KMS Functions

• Organized knowledge management.

• Types of Knowledge: Explicit (documented) and Tacit (personal insight).

Collaboration Outside Organizations

Crowdsourcing

• Taps collective wisdom for solutions.

Crowdfunding

• Raises small amounts for projects online.

Communication Types

• Asynchronous (email) vs. Synchronous (live chat).

Business 2.0 and Social Networking

Social Media Framework

• User participation as a foundation for content.

Social Networks

• Applications that connect individuals via profile information.

Expanding Business through Networking

Social Networking Definitions

• Building professional and personal connections.

Social Networking Analysis (SNA)

• Maps contacts, identifying connections among network members.

Social Tagging

Tagging Mechanisms

• Keywords for content classification.

Folksonomy and User-Driven Classification

Folksonomy

• Crowdsourced classification through tagging.

Collaborative Content Creation

Snackable Content

• Easy-to-consume and share content formats.

Understanding Blogs

Blog Definition

• Online journals allowing user-generated content.

Microblogging

• Brief posts distributed to followers.

Wikis and Collaborative Editing

Wiki Definition

• Collaborative pages allowing content edits by multiple users.

Metcalfe's Law

• Network value proportional to user connections.

Social Trust and Information Accuracy

Misinformation vs. Disinformation

• Misinformation is unintentional; disinformation is deceptive.

Fake News

• False stories created for dissemination with intent to mislead.

Introduction to Web 3.0

Semantic Web Concept

• The next generation of web understanding for machines.

Deep Web vs. Dark Web

• Deep web: Not indexed by standard search engines.

• Dark web: Hidden and requires specific access tools.

Learning Outcome Review

Final Note

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