Weekly Questions week 4

Weekly Questions (Week 4)

Chapter Three: eBusiness

  1.      Why has the web grown so dramatically?

Globalisation has had a great impact on the design and creation of new technology and the internet. This has increased the speed in which data can be transferred from one location to another. Search engines and metasearch engines have made finding information much easier and accurate due to the numerous amounts of resources available. Virtually anyone is able to access the internet due to its ease of access.

Textbook: Baltzan, Philips, Lynch & Blakey, Business Driven Information Systems (Australian/New Zealand edition) pg 109

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

Difference Between Web 1.0 and Web 2.0
 (Diagram 1)

 Web 2.0 relates to web applications which allow users to collaborate and share information, building on their own content. Web 2.0 may include tagging, the use of blog sites, Really Simple Syndication (live sports updates, social networking (Facebook, Twitter) and video sharing (YouTube). Conversely, this differs from Web 1.0 which can be considered as the first stage of the internet. Web1.0 consists of ‘one-way’ information e.g. static pages, in which the responder is only able to read the content.  
For Further Information, visit: 

http://oreilly.com/web2/archive/what-is-web-20.html

http://en.wikipedia.org/wiki/Web2.0  
Textbook: Baltzan, Philips, Lynch & Blakey, Business Driven Information Systems (Australian/New Zealand edition) pg 110



Web 2 (Diagram 2)



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

 The use of Web 2.0 technology would allow a business to gain exposure and potentially business growth. Businesses can gain exposure by advertising on social networking sites, and use blog sites to communicate with stakeholders (consumers, suppliers).  The use of blog sites is a cheaper and faster method of exposure and communication to people outside of the business, as oppose to the media (newspapers, television, radio).

Textbook: Baltzan, Philips, Lynch & Blakey, Business Driven Information Systems (Australian/New Zealand edition) pg127-128

4.  What is eBusiness, how does it differ from eCommerce?

E-business involves the selling and buying of goods over the internet, serving consumers, conducting business online, and linking business processing systems with partners and suppliers in order to increase efficiency. Conversely, e-commerce is only the selling and buying of goods over the internet.
For further information, visit:

http://www.mariosalexandrou.com/definition/ebusiness.asp

Textbook: Baltzan, Philips, Lynch & Blakey, Business Driven Information Systems (Australian/New Zealand edition) pg 122

 5. What is pure and partial eCommerce?

Example of Pure Ecommerce (Diagram 3)

 Pure e-commerce involves transactions being facilitated by digital processes, where the product sold or bought is a digital good and cannot be physically touched. E.g. Songs bought on iTunes. Conversely, partial e-commerce involves a business using some sort of e-commerce; however their business is mainly operated in the physical world.

6.  List and describe the various eBusiness models?

E-business models are approaches to conducting business over the internet. There are four main e-business models:

·         Business-to-Business (B2B) - when businesses buy and sell products to other businesses over the internet.

eBusiness Models (Diagram 4)

·         Business-to-Consumer (B2C) – when a business sells its products to consumers over the internet. E-shop and e-mall are two Business-to-Consumer models.

·         Consumer-to-Business (C2B) – when a consumer sells a product or service to a business over the internet.

·         Consumer-to-Consumer (C2C) – websites which allow consumers to buy and sell products by interacting over the internet. These sites may include eBay and TradeMe.

·         Business-to-government (B2G) – when a business provides services or products to government and government agencies

Textbook: Baltzan, Philips, Lynch & Blakey, Business Driven Information Systems (Australian/New Zealand edition) pg 123

Foward Auction (Diagram 5)

7. List and describe the major B2B models?

Major B2B models include:

·         Buyer-side B2B – when there is one seller and many buyers. The single seller may use methods such as Forward auctions (as time increases, so too does the price), one-on-one (when the terms of purchase are negotiated).

·         Seller-side B2B – when there is one buyer and many sellers of the same product. Methods commonly associated with this model are reverse auctions (as time increases, price decreases and through negotiations.)

·         Electronic Exchange – when many sellers and buyers are brought together in an e market place and transactions are made.

Reverse Auction (Diagram 6)

Electronic Exchange (Diagram 7)

Textbook: Baltzan, Philips, Lynch & Blakey,Business Driven Information Systems (Australian/New Zealand edition) pg125

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

 Two benefits and opportunities may include:

·         High accessibility and increased global reach: allows a business to enter new markets and operate at any time. This is convenient to both the business and consumers.

·         Increased loyalty: operating online gives the business more channels of contact with consumers, allowing the business to respond to consumers questions and enquires.

   Two challenges a business may face include:

·         Increased liabilities: due to the different internet commerce laws in different countries, the use of e-business has raised ethical and social issues such as identity theft, the selling of client details and manipulation of information.

·         Providing security: As the internet can be accessed by any individual, businesses must implement security systems in order to protect their assets and clients details. Many internet users believe that providing credit card details or any personal information over the internet is unsafe and this makes them reluctant to purchase goods online.   

Textbook: Baltzan, Philips, Lynch & Blakey, Business Driven Information Systems (Australian/New Zealand edition) pg 138-139

Diagram Reference

Diagram 1 - http://primarytech.global2.vic.edu.au/2009/03/17/what-is-web-20/

Diagram 2 - http://sabusvirtual.wordpress.com/

Diagram 3 - http://www.apple.com/support/ipod101/musicstore/ 
Diagram 4 - http://www.dtpprofessionals.com/marketing.html
Diagram 5 - http://tbmdb.blogspot.com/2008/12/auction-based-business-models.html 
Diagram 6 - http://tbmdb.blogspot.com/2008/12/auction-based-business-models.html 
Diagram 7 - http://tbmdb.blogspot.com/2008/12/auction-based-business-models.html 

Weekly Questions week 3

Weekly Questions (Week 3)

Chapter Two:  Strategic Decision Making

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

Transactional Process Systems (TPS) are the basic business systems used to manage business activities at an operational level. This may include things such as sales, orders and receipts. A Decision Support System (DSS) can be considered as analytical systems used by managers of a business to make more complex decisions which go beyond a simple transaction. The nature of these problems are usually semi structured or unstructured. E.g. budget preparation, negotiating, project scheduling. An organisation can use these systems to evaluate the business’ performance in regards to its daily operations or operations in a particular time period. Management is able to assess sales, create budgets and forecasts, and review the efficiency and effectiveness of the business. This in turn will allow an organisation to evaluate its position in the marketplace, and also the needs and wants of consumers. Understanding this will provide an organisation with a competitive advantage.

Textbook: Baltzan, Philips, Lynch & Blakey, Business Driven Information Systems (Australian/New Zealand edition) pg58-59

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

Three quantitative models used by decision support systems include:

Sensitivity analysis –when one or more variables are changed in parts of a model and the result it has on other variables. The user repeatedly changes one variable and observes the impact it has on other variables. E.g. how a change in price of a product can affect quantity sold.

Goal-Seeking Analysis (Diagram 1)

What-if analysis – investigates the impact of how an assumption will affect the proposed solution. E.g. natural disaster depletes supplies by 20% 
Goal-seeking analysis – investigates what amount of input is necessary for the business to achieve its goal or output. Unlike the sensitivity analysis and what-if analysis, which investigate the impact of how the changes of one or more variables affect other variables, the goal-seeking analysis sets a target value and the system will process all other variables until the target value is met.

Textbook: Baltzan, Philips, Lynch & Blakey, Business Driven Information Systems (Australian/New Zealand edition) pg59

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

Business processes are a set of activities which a business undertakes in order to complete a specific task. This involves planning, organising and coordinating the operations needed to transform inputs(raw materials) into outputs(final product). Business processes have great importance in relation to a business’s survival in the continually changing market place and the business's viability/profitability. Due to the continual changes in consumer needs, demands and expectations , business’s must re-evaluate their business processes in an attempt to improve efficiency and effectiveness. The more efficient the business process, the less cost/waste is produced, increasing profits. Similarly, effective business processes increase customer satisfaction. 

Textbook: Baltzan, Philips, Lynch & Blakey, Business Driven Information Systems (Australian/New Zealand edition) pg70

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

Business Process Improvement
(Diagram 2)

Business process improvement is a systematic approach which attempts to understand and measure the current process, and make performance improvements to increase efficiency. However, business process re-engineering is the assumption that the business process is broken and irrelevant, where a new process is designed and implemented.
For further information, visit:

http://en.wikipedia.org/wiki/Business_process_improvement

Textbook: Baltzan, Philips, Lynch & Blakey, Business Driven Information Systems (Australian/New Zealand edition) pg71-72

 

Process Re-engineering(Diagram 3)





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

Sample Process Model (Diagram 4)

Process modeling (or mapping) is the process of creating a detailed flowchart of the current process, including all tasks, and inputs involved. The business remodeling begins with an ‘As-is process model’ showing the present operation process. A ‘To-be process model’ is then created in attempt to simplify and improve the existing model. Business process models have great importance as they allow the business to visualise the process, identify any problems, and opportunities to improve overall efficiency and effectiveness. 
For further information, visit:

http://en.wikipedia.org/wiki/Business_process_modeling

Textbook: Baltzan, Philips, Lynch & Blakey, Business Driven Information Systems (Australian/New Zealand edition) pg78-79

Diagram Reference

Diagram 1 -http://www.java2s.com/Tutorial/Microsoft-Office-Excel-2007/0200__Data-Analysis/CreateaWhatIfScenariowithGoalSeek.htm

Diagram 2 -  http://www.executivebrief.com/process-improvement/business-process-improvement-strategic/ 

Diagram 3 -http://upload.wikimedia.org/wikipedia/commons/b/b4/Conduct_Business_Process_Reengineering.jpg

Diagram 4 - http://www.ibm.com/developerworks/webservices/library/ws-ref5/

Weekly Questions week 2

Weekly Questions (Week 2)

Chapter One: Information systems in business

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

Information Technology has a very important role in determining a business’s success or failure. Due to the modern world being dominated by the use of technology, it is important that businesses are able to adapt to new technology. When used correctly, Information technology has the ability to reduce a business’s costs, improve productivity and even generate growth through improving communication within and between organisations. Measuring the success of Information Technology can be very difficult; however, there are ‘Key performance indicators’ which can be used. This involves efficiency and effectiveness IT metrics and baseline metrics. ‘Efficiency It metrics’ measure the IT system’s performance which includes speed, availability, information accuracy. However, ‘Effectiveness’ is measuring the effect the IT system has on the business’s performance including processes and activities, usability, customer satisfaction and conversion rates. ‘Baseline metrics’ involves benchmarking the business’s actual system results with the optimal system performance and evaluating what measures can be taken to improve performance.

Textbook: Baltzan, Philips, Lynch & Blakey, Business Driven Information Systems (Australian/New Zealand edition) pg 19-23

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

 Forces in “Porters Five Forces Model” include:

·         Buyer power – buyers power can be seen as the buyer’s ability to impact the price of a product or service. Buyer power is low when there are few suppliers or sellers. Similarly, a buyer’s power will be high if there are many sellers of a product or service. Buyer power can be reduced through the use of ‘loyalty programs’ which aim to reward repeat customers for doing business with one organisation. 

Porters 5 Forces (Diagram 1)

·         Supplier power – supplier power is high when there are few competitors and this means that the supplier can concentrate their power in an industry, being able to influence the prices, quantity of goods produced, and shifting costs to buyers.

·         Threat of Substituteproducts and services – When there are many products in the marketplace which are alternatives to a business’s product or service, the Threat of Substitute products and services is high. Similarly, if there are very few alternatives in the marketplace, the Threat of Substitute products and services are low.

·         Threat of new entrants – the threat of new entrants is the ease of a new competitor entering the marketplace. The Threat of new entrants is high if it is easy for a competitor to enter the market and is low when it is difficult for them to enter. Through the use of ‘entry barriers’, a business is able to reduce the ‘Threat of entrants’. Entry barriers are usually features which are expected by consumers when purchasing the product or service and must be offered by the business in order to survive. As such, this adds costs to new entrants as they must provide these expected features.

·         Rivalry among existing competitors - Level of Rivalry among existing competitors is high when competition is fierce in a market and is low when the competition complacent. ‘Switching costs’ are a way of reducing a competitor’s power. Switching costs are costs (monetary or non-monetary) consumers consider as an inconvenience or nuisance if they change products. This then discourages them to switch to another product. 

For further information on Porter's Forces and Strategies, visit this website for a Video explanation:
http://www.marketingteacher.com/lesson-store/lesson-generic-strategies.html

Textbook: Baltzan, Philips, Lynch & Blakey, Business Driven Information Systems (Australian/New Zealand edition) pg26-29

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

Generic model of Business Porcess(Diagram 3)

Business processes are the steps or set of activities which are taken to complete a specific task. A business’ supporting activities must function well for the primary functions to be successful, resulting in greater efficiency and effectiveness. As a result of this increase in efficiency and effectiveness, the business is able to reduce material wastage and costs, and produce products that are seen as superior to competitors, thus increasing the value chain.

Value Chain (Diagram 2)

Textbook: Baltzan, Philips, Lynch & Blakey, Business Driven Information Systems (Australian/New Zealand edition) pg 31-33



4. Compare Porter’s three generic strategies?

 Porter’s three generic strategies include:

·         Broad cost leadership

·         Broad differentiation

·         Focused strategy

Broad market strategies either focus on product differentiation or cost leadership but are targeted at a larger segment of the overall market; however, focused strategy is targeted at a smaller market (niche). 

Porter's Generic Strategies (Diagram 4) 

Cost leadership is a strategy used by organisations which aims to win market share by attracting cost conscious consumers. This can be achieved by having the lowest prices for a particular product and this will encourage consumers to buy the product. Product differentiation is when a business’s product or service has a distinct difference in comparison to their competitors. This aims to persuade consumers to buying their product as it is seen as superior. The Focused strategy also uses cost leadership or differentiation but is concentrated at a smaller portion of the market. This allows the creation of a marketing mix which caters for a specific clientele. 

For further information on  Porter's Forces and Strategies, visit this website for a Video explanation: http://www.marketingteacher.com/lesson-store/lesson-generic-strategies.html

Textbook: Baltzan, Philips, Lynch & Blakey, Business Driven Information Systems (Australian/New Zealand edition) pg 30


Diagram Reference 
Diagram 1-http://www.businessteacher.org.uk/wp-content/porters-5-forces-analysis.jpg
Diagram 2 - http://www.winsite.com/graphics/screen/business-taxes-porters-generic-strategies-software-41649.gif
Diagram 3 - http://www.insemble.com/software-value-chain.html
Diagram 4- http://www.marketingteacher.com/lesson-store/exercise-generic-strategies.html