A new way of doing things that initially does not meet the needs of existing customers

INSS 300 chapter 3

3.1 Compare disruptive and sustaining technologies.

§  Disruptive technology – a new way of doing things that initially does not meet the needs of existing customers

§  Disruptive technologies redefine the competitive playing fields of their respective markets and tend to open new markets and destroy old ones

§  Disruptive technologies typically cut into the low end of the marketplace and eventually evolve to displace high-end competitors and their reigning technologies

§  Sustaining technology – produces an improved product customers are eager to buy, such as a faster car or larger hard drive

§  Sustaining technologies tend to provide us with better, faster, and cheaper products in established markets and virtually never lead in markets opened by disruptive technologies

3.2 Explain how the Internet caused disruption among businesses.

§  The Internet has completely disrupted the way businesses operate, employees communicate, and products are developed and sold. Here are a few examples:

§  Travel site Expedia.com is now the biggest leisure-travel agency, with higher profit margins then even American Express

§  $35 billion annual online music downloads are wrecking the traditional music business

§  Dell increases profit margins while cutting prices by using the Internet to link suppliers and customers

§  eBay is one of the nation’s top 15 retailers

3.3. Define the relationship between the Internet and the World Wide Web.

§  The Internet is a global public network of computer networks that pass information from one to another using common computer protocols. The World Wide Web is a global hypertext system that uses the Internet as its transport mechanism. The World Wide Web operates on the Internet.

3.4  Describe the different methods an organization can use to access information.

§  An organization can use four common tools to access Internet information

§  Intranet – an internalized portion of the Internet, protected from outside access, that allows an organization to provide access to information and application software to only its employees

§  Extranet – an intranet that is available to strategic allies (such as customers, suppliers, and partners)

§  Portal – a website that offers a broad array of resources and services, such as email, online discussion groups, search engines, and online shopping malls

§  Kiosk – a publicly accessible computer system that has been set up to allow interactive information browsing

3.5  Compare the three different types of service providers.

§  There are three common forms of service providers including:

§  Internet service provider (ISP) – a company that provides individuals and other companies access to the Internet along with additional related services, such as website building

§  Online service provider (OSP) – offers an extensive array of unique services such as its own version of a Web browser

§  Application service provider (ASP) – a company that offers an organization access over the Internet to systems and related services that would otherwise have to be located in personal or organizational computers

3.6. Compare the four types of ebusiness models.

§  Business-to-business (B2B) Applies to businesses buying from and selling to each other over the Internet.

§  Business-to-consumer (B2C) Applies to any business that sells its products or services to consumers over the Internet.

§  Consumer-to-business (C2B) Applies to any consumer that sells a product or service to a business over the Internet.

§  Consumer-to-consumer (C2C) Applies to sites primarily offering goods and services to assist consumers interacting with each other over the Internet.

§  The primary difference between B2B and B2C are the customers; B2B customers are other businesses while B2C markets to consumers. Overall, B2B relations are more complex and have higher security needs; plus B2B is the dominant ebusiness force, representing 80 percent of all online business

3.7.  Describe how an organization’s marketing, sales, accounting, and customer service departments can use ebusiness to increase revenues or reduce costs.

§  Marketing and sales departments can use Internet marketing strategies such as online ads, associate programs, viral marketing, mass customization, personalization, blogs, and podcasting to increase the company’s visibility. These types of marketing techniques provide an easy way to penetrate a new geographic territory and extend global reach. Large, small, or specialized businesses can use their online sales sites to sell on a worldwide basis with little extra cost.

§  Accounting departments can use ebusiness to help distribute information with greater convenience and richness than is currently available. They can also offer a variety of online payment methods such as financial cybermediaries, electronic checks, electronic bill presentment and payment, electronic data interchange, financial EDI, and digital wallets. 

§  Customer service departments can use ebusiness to enable customers to help themselves with the communications capability of a traditional customer response system available 24x7 over the Internet.

3.8. Explain why an organization would use metrics to determine a website’s success.

§  Without metrics there is no way to determine if a website is successful. website metrics allow an organization to determine the efficiency and effectiveness of its site. Interactivity measures the visitors interactions with the target ad. Such interaction measures include the duration of time the visitor spends viewing the ad, the number of pages viewed, and even the number of repeat visits to the target ad.

Describe ebusiness along with its benefits and challenges.

§  ebusiness is the conducting of business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners. ebusiness benefits include:

§  Highly accessible

§  Increased customer loyalty

§  Improved information content

§  Increased convenience

§  Increased global reach

§  Decreased cost

§  ebusiness challenges include:

§  Protecting consumers

§  Leveraging existing systems

§  Increasing liability

§  Providing security

§  Adhering to taxation rules

3.10 Define mcommerce and explain how an egovernment could use it to increase its efficiency and effectiveness.

§  Mobile commerce, or mcommerce, is the ability to purchase goods and services through a wireless Internet-enabled device. egovernment involves the use of strategies and technologies to transform government(s) by improving the delivery of services and enhancing the quality of interaction between the citizen-consumer within all branches of government(s). egovernments could use mcommerce to facilitate the exchange of goods and services between the different branches of government and citizens. People could pay their taxes through an mcommerce device or receive a disability payment or social security payment to their mcommerce device making the process of receiving and distributing payments more efficient and effective for everyone.

What is a new way of doing things that initially does not meet the needs of existing customers quizlet?

What is a new way of doing things that initially does not meet the needs?

Which technology helps manage the creation storage editing and publication of their website content without needing to know web programming languages?

What is the difference between sustaining and disruptive technology?