Topic 5 - Business Models

Business Models

Business models could be considered the least understood aspect of the web today, there has been talk about how the Internet has changed the traditional business model, but there is no evidence of what this actually means. Below are the 9 types of business models, their main features and a example to help you understand.

Brokerage
Brings the buyer and seller together
usually charge a fee for advertising
complete transaction 
A good example of a brokerage site is EBAY. They act as third party providers to the buyer and seller.

Advertising
Banner ad's are the main source of revenue
High level of traffic needed to be successful
A example: Classifieds for a small fee they list advertisements for items you want to buy or sell Tradingpost 

Infomediary
collects data on consumer habits and trends
assists buyers and sellers in understanding the market
Advertising networks: collects data to analyse marketing effectiveness
Incentive marketing: a example of customer loyalty schemes is MyerOne which offers incentives to customers like redeemable points which add up to gift cards.

Merchant
companies that offer goods and services
may be fixed price or auction
virtual market: solely run online The Iconic 
click and mortar: have a shop front and a online store New Generation


Manufacturer (Direct)
Manufacturer reaches the buyer directly
compress the distribution channel
is efficient, has improved customer service and has a better understanding of customer preference
a Example of this is Alice.com which eliminated the retail middle-man

Affiliate
provides purchase opportunities wherever people are on the wed
drives high volume traffic to one site
offers financial incentives to affiliated partner sites
Amazon uses banners, pay-per-click and revenue sharing

Community
Based on user loyalty
Revenue comes from advertising
Open content: volunteer workers create the content Wikipedia
Public Broadcasting: free to air radio and television Seven

Subscription
Users are charged a fee (daily, monthly, yearly)
Sites often offer free material and subscription material
Internet service providers example is Bigpond who provide Internet for payment
Content service provider example is Foxtel who provide video and audio to people for a subscription fee

Utility
Is based on metering usage - pay as you go
With metered usage you are billed on actual usage of a service, for example household utilities. (Power, Water, Gas)

1) What is the Mobile phone use /100 population - compare Australia, USA, China, India, Your Country

Mobile telephone subscriptions (post-paid and pre-paid) per 100 population out of 144 countries. 

Australia Rank 67 Value 108.3USA        Rank 95 Value 92.7
China     Rank 115 Value 73.2
India      Rank 117 Value 72.0
(The Global Information Technology Report 2013, pg 330)

2) Internet use / 100 population - compare Australia, USA, China, India, Your Country

Percentage of individuals using the Internet out of 144 countries. 

Australia  Rank 18  Value 79.0USA         Rank 20 Value 77.9
China      Rank 74  Value 38.3
India       Rank 119 Value 10.1
(The Global Information Technology Report 2013, pg 331)

3) Compare main strengths and weaknesses of Australia or your home country in the survey

Some of the things i find are Australia's greatest strengths are the capacity for innovation, our economy, availability of skilled employees and the availability of space which leaves room for growth.
The things i would consider to be weaknesses are we have a low population considered to countries like China and India. 

4) What does the survey suggest to you about the Information Technology readiness of Australian business compared to Australian consumers?

The survey suggests that Australian businesses are just as information technology ready as the consumers and world partners.  

Sources:

Knox, I. (2013). Week 5 notes. BUEBU1501. Retrieved April 10, 2013 from http://ubonline.ballarat.edu.au/mod/page/view.php?id=267537&inpopup=1 . 
Rappa, M. (2009). Managing the digital enterprise. Retrieved April 10, 2013 from http://digitalenterprise.org/models/models.html#Advertising
Beñat Bilbao-Osorio, Soumitra Dutta, and Bruno Lanvin. (2013) The Global Information Technology Report. Retrieved April 10, 2013 from http://www3.weforum.org/docs/WEF_GITR_Report_2013.pdf

Topic 4 - Digital Design

1. In two paragraphs explain why a customer centric Web site design is so important, yet so difficult to accomplish.

One thing i hate is a website that is hard to navigate, the common benefits of creating a 'customer centric' website are increased sales. If a customer can easily navigate your webpage and you have the product they are looking for that increases your chance of a sale. The website must offer a easy transaction from start to finish which is appealing to the customer (from finding the item, information regarding the item, reviewing the item, purchasing the item, or giving feedback)

Why is it so hard to find? Simple, everybody is different. A design that suits someone isn't going to suit someone else, that's life. What businesses need to do is find a design that balances between different people. The design needs to be easily navigated and offer a smooth process. If customers like your site they will continue to use it and recommend it to their friends.

2. Define the term ‘presence’. Write an additional paragraph that describes why firms that do business on the Web should be more concerned about presence than firms that operate in the physical world.

presence - pres·ence - (The Free Dictionary, 2013)

• The state or fact of existing, occurring, or being present in a place or thing.
• Immediate proximity in time or space.

Website presence means having your page positioned so it can be found when a customer searches for it, chances are if your site isn't seen in the first few pages of a search it wont be found at all. A organisation who runs a a internet only site needs to ensure they have a well found website presence so ensure success of the business.  

3. Usable Doesn’t Have To Mean Ugly ‘for a web design to be truly beautiful, it has to be functional, have purpose and contribute in some way to the website’s intuitiveness, usefulness and branding. All of these things contribute to the overall effect of a design’. This is a quote from one of the articles on web design linked on Web pages that suck. Find a web page that ‘does not suck’ and discuss the features that make it work. A website i LOVE is THEICONIC. Possibly the one of the best sites, i think even my Nan could use this site. It is easy to navigate around and takes less than a minute to find something, and buy it. Features of the site: Offers a search bar to search for what you are looking for. Offers a livechat help function which has a maximum wait time of 3 minutes Has the 'Contact us' Number in the header of the site which is easily visible on all pages of the site Is NAB and Norton Security approved so it is safe Has paypal purchasing - which is the safer, easier way to pay.

Topic 3 – Security and Privacy

It seems like everyday in the news i read or hear about another scam taking place online, So how can you increase your chance of not getting scammed?

• Use passwords that are hard to guess avoid nicknames, important dates and pets names as these can be easily picked, try using a password with a combination of words letters and symbols as these all increase the strength of the password
• Scam emails are common, If it sounds to good to be true - it more than likely is, don't clink links or send information.
• Never Ever give out your bank details to a site that isn't trustworthy and secure.
• its not just computers we need to think about, these days everyone uses smart phones, tools such as pass code locks on phones are important as we now store more personal information on mobile phones then ever before. 

Question One.

See if you can find an example of a privacy breach that was reported in the Australian or international news in the last 6 months. What were the consequences? i.e. legal, political, financial, personal etc. What action was taken in response to the privacy breach?

On the 15th of March 2013 Google was fined $7million for a privacy breach that saw them using a snoopy software program that enabled them to intercept emails, passwords and other sensitive information such as bank details, insurance policies etc that were sent several years ago over unprotected wireless networks in neighborhoods across the world. 

The software was designed to track where people were using wireless connections for googles research purposes but instead traced and share peoples personal data with others and on site accidentally.

Although the information was not intentionally leaked it didn't stop people asking what where they collecting data like that and storing it for in the first place. Google was forced to destroy all information it gathered in the breach and pay the fine.

it makes me wonder how a organisation with the slogan "Don't Be Evil" got its self caught up in such a scandal.

Further information can be found in this article

What AmI technologies are identified in the case?

• AMI collects data about individuals from hundreds of sources and then sells the aggregated data back to many of those sources (insurance companies, retail chains, media conglomerates,credit-reporting agencies, mobile phone companies, law enforcement agencies, customs and immigration authorities, and intelligence agencies). 
• They have managed to side step legislation and constraints as they merge with other companies.
  
  

What drives DMC’s officers to take the actions they took?

• The biggest driver was money, there clients were willing to pay big money for the information

DMC is the clear market leader in the aggregation of AmI data. Are there any comparisons you can make to technology companies today?

• i searched the web but couldn't find anything relevant to other companies doing this although i do believe there are others doing this i just don't know who

How realistic is the description of governments using the technology and prohibiting immigration from states with no AmI data aggregation information?

• It's called personal information for a reason its personal, if people don't want this information shared then it shouldn't be shared.

List some of the ‘unintended consequences’ described in the case.

• They obviously didn't intend on the public finding out what was going on.
• That the information would be stolen
• They would be taken to court

Topic Two

1) Listen to the podcast on Navigation which can be found on the Digital Enterprise Page (Google – the digital enterprise).

Managing the Digital Enterprise - Michael Rappa - Navigating the Web.

Podcast

a) What are the four (4) main points Michael Rappa makes about search? 

1) Data Storage: He discussed how data storage and collection have made it easier for business's not only to store data but also collect it. Data collection on a computer is a much faster and economical way to collect data as apposed to pen and paper. He also discussed how storing data on a computer is much more cost efficient and effective way.

"The speed and declining cost of data collection, storage and transmission provide amble opportunities for managers to make decisions based on empirical data and analysis."(Rappa, 2005)

2) Promotional/Advertising Purposes: The Internet allows businesses to promote their business online, businesses are now using the Internet to reach future customers, promote their products and brand and to communicate with current and future clients. 
Dealing with search based advertising, 


3) Search Engines: He discusses the importance of search engines and explains how its a combination of key words, text and images that are compiled to deliver the results you are looking for. 

"The popularity of sites like Google and Yahoo has given them a unique status because they serve users as a point of entry to the web. Knowing how they work is key to understanding how to search and how to be found on the web."(Rappa, 2005)

4) Search Based Advertising: he discussed how rapidly this is expanding.

"How do i tie in the process of someone looking for something, with the opportunity of companies wanting to advertise something"

Rappa, Podcast

Rappa,M.(2005). Managing the Digital Enterprise. Retrieved on March 8, 2013 from the Digital Enterprise website: http://digitalenterprise.org/navigation/nav.html

b) Watch or read the Marissa Mayer interview. Marissa says ‘search is in its infancy’. Do you agree or disagree with this statement? What is your personal experience with search?  There are no right or wrong answers here, I just want your opinion.

I agree that search is still in its infancy, with technology changing all the time this means search will be changing with it, advancements will be made to suit the current technology. My personal experience with search is a positive experience, having the ability to locate what you want quickly makes life so much easier.

2) Please watch the Bill Joy video, and it will give you a good background to the Internet and particularly to the emergence of the World Wide Web.

a) So what are the 6 webs?

• The Near Web -- that is emerging around the smaller screen, the laptop
• The Here Web -- the smart phone, the mobile screen
• The Far Web -- TV and lean back technologies
• The Weird Web -- the smart, intelligent interface that knows what your body does and can read you
• The B2B Web -- what happens on Wall Street, taking over how business interacts
• The D2D Web --smart censors that manage environment and how they relate

b) Could there be more?

Joy expresses deep concerns over the development of modern technologies.

c) What does it mean for business?

This means business can now reach a wider audience with the greater exposure its gained. 

ETC: Bill Joys six webs. (2005 September 29). Retrieved March 11, 2013 from:http://www.technologyreview.com/blog/pontin/14964/

Topic One.

1) Internet risks – give examples of four things that can go wrong with a transactional site?

Orders details can be entered incorrectly
A lot of people have concerns about Internet security, sites need to be constantly checked to ensure personal information isn't been shared
Technical issues can occur meaning businesses can lose sales. For examples - Sites may crash, slow connections etc
possibility of purchasing from a fake of fraudulent website, or item may not be to the standard the customer expected

A transactional site is a website that allows you to complete a full transaction, there is a connection between the business and the customer. For example Amazon and eBay are transactional sites.

2) Write down a definition for each:

E-commerce: (electric Commerce) is the process of buying and selling of a product or service over the Internet, this allows people to purchase goods with out having to leave the house
E-business: is the conducting of business on the Internet (hence Internet business) not only buying and selling, but also serving customers and collaborating with business partners. A good example is eBay which is a Internet business.

3) What is the difference between buy side and sell side eCommerce?

Buy side e-commerce is when a business organisation buys product from another business like a supplier or manufacturer.
Sell side e-commerce is when a business sells a product or service using the internet and and webpage.

Buy Side - Sell Side

4) Describe the different types of eBusiness

Figure taken from:

eBusiness - McGraw-Hill

03/03/2013

5) Which digital technology has the highest penetration rate? Explain and source your answer.

The Smart Phone: 50% penetration rate in less than ten years. This is because the smartphone offers so much more than any other phone, it allows you full access to the internet, take/make calls/texts/emails etc at any time anywhere.

6) Four drivers to adoption of sell-side e-commerce by business.

Expansion of their market
Decrease amount of inventory needed
Reduced Costs
Reduced risk of Cost

7) Four barriers to adoption of sell-side e-commerce by business.

Lack of time and resources
Lack of knowledge
Cost
Both parties need to be tech savvy

8) How might a restaurant benefit from an online presence?

A restaurant would benefit greatly from a online presence, personally i know I'm always 'googleing' places to eat and those places without a online presence don't get a look in. It gives customers the ability to see operating hours, specials, read menu's online and in some cases even allows you to book online. I think all restaurants should have a online presence to stay in the game.

9) What are some examples of Digital information?

Computers
Mobile phones/Tables
TV's
CD's/DVD's
Text
Music
Images/Pictures
Videos
E-Books

10) What is the semantic web? Are we there yet?

The Semantic Web is the extension of the World Wide Web that enables people to share content beyond the boundaries of applications and websites. Semantic Web

No, I don't feel we have a semantic web yet as the web is still dominated by search engines such as Google and Bing which require you to sift through information to find the correct thing.

PENA

Describe whether your experience of completing the PENA was positive or negative and give your reasons for your answer.

The experience with PENA was positive. It didn't take very long and most of the questions were easy to understand and answer.

Could you suggest an alternative delivery method for the PENA utilising any alternative media and/or technologies? Include any additional comments you may have

Possibly implementing the use of Video, as some people absorb more watching a video rather than reading.

Yo!

Hi Everyone! I'm Courtney, I am currently studying a Bachelor of Management  (Human Resource Management) at the University of Ballarat. 

This blog is a requirement of the e-Business class i'm taking. Over the next 12 weeks you can expect to find information relating to the world of e-Business including class questions and anything else i deem necessary to share. 

I'm fairly new to this blogging business so feel free to drop me some feedback.

Peace XO