i. Internet risks; give 4 examples that can go wrong with a transactional site?
o Security breaches
o User error- Incorrect orders placed by customers
o Peoples (customers) unwillingness to give there bank details online
o Computer errors
ii. Write down a definition for each
o E-commerce: All electronically mediated information exchanges between an organisations and its external stakeholders. To types of e-commerce include- sell-side & buy-side.
o E-business: All electronically mediated information exchanges, both within an organisation and with external stakeholders supporting the range of business processes.
[Chaffey, 2004]
iii. What is the difference between buy side & sell side ecommerce?
Buy-side e-commerce is transactions between a purchasing organisation and its suppliers, whereas sell-side e-commerce refers to transactions between a supplier organisation and its customers.
iv. Describe the different types of e-business
1. B2C: Business to Consumer
2. B2B: Business to Business
3. B2G: Business to Government
4. C2C: Consumer to Consumer
5. C2B: Consumer to Business
6. C2G: Consumer to Government
7. G2C: Government to Consumer
8. G2B: Government to Business
9. G2G: Government to Government
v. Which digital technology has the highest penetration rate? Explain & source your answer
Mobile phones can be identified as being the digital technology with the highest penetration rate. Statistics from a survey from the United Kingdom show, with mobile, internet and digital TV use, it is shown that 85% of people have mobiles while only 64% have TV’s and 61% have internet.
[Source: Topic 1: Introduction to eBusiness, lecture slides, Ian Knox, pg 14]
[Source: Topic 1: Introduction to eBusiness, lecture slides, Ian Knox, pg 14]
vi. List; Four drivers to adoption of sell-side e-commerce by business
1. Larger exposure to potential buyers: A larger proportion of people access the internet on a daily basis, there is a highly likelihood that a business will attract a larger customer base, when able to be accessed online.
2. Reduced staff costs: less staff required to run the business (i.e. No staff needed to serve customers) which will result in larger profit margins.
3. Keeping up with the ‘times’: is a likely driver of sell-side e-commerce, because in order to remain profitable a business must adapt to the advances in technology. This is also likely to drive the adoption as businesses must keep up with what is happening around them, and if the type of business can be found on the internet this may be favourable to customers.
vii. List; Four barriers to adoption of sell-side e-commerce by business
1. Technology barrier: Even though the use of technology is widely used and accepted worldwide there is still a large proportion of people who are opposed to using technology as well as the lack of knowledge possessed by people to utilise the technology. People, especially from older generations are opposed to their bank details online to purchase products.
2. Developing a website: Can be expensive and time consuming. There is options for designing and developing your own website, by this brings about publicity issues as well the development of a user-friendly site, which maybe unachievable by someone with little skill in this area.
3. Running costs: The costs involved in maintaining and updating the website might outweigh the costs that would be involved in servicing the customers face-to-face.
4. Appealing to customers: Are your customers going to benefit from and online presence? What will they prefer? This is a barrier as all factors need to be considered as to what can be identified as ‘what customers will prefer’.
viii. How might a restaurant in Sturt street benefit from an online presence?
o Potential for increased revenue arising from increased reach to a larger customer base and encouraging loyalty and repeat purchases
o Cost reduction through delivering services electronically including; staff costs, and materials costs.
ix. What are some examples of digital information?
Digital media is a form of electronic media where data is stored in digital (as opposed to analog) form. Examples include; digital video, augmented reality or digital art.
x. What is the semantic web? Are we there yet?
The semantic web is defined as interrelated content including data with defined meaning, enabling better exchange of information between computers and between people and computers. [Chaffey, 2004] IT would appear that we have some way to go before we reach the semantic web.
