Chapter 5

Q1. Describe the underlying technologies, applications and types of Web sites that comprise Web 2.0.



Web 2.0 allows users to build and express their own internet content. There are new features compared to web 1.0. Key features include;

• Tag- Uses can make reference to data about data. Tags are used to describe a piece of web related content.

• Wiki- Blogs/ discussion forums to facilitate employee and customer discussions.

• Ajax- Technique that allows areas of a webpage to quickly reload new data.

• RSS- A technology that allows content to be created once and then republished on other websites (i.e. News links).

• Podcasts- Used by radio media to reach larger audience, which is for free.

Web 2.0 is becoming increasing important and popular as the demand for technology increases. Large social networking sites are a common example of web 2.0 interfaces used in the larger community.

The Diagram below shows the functions of both Web 1.o & Web 2.0

2. Describe the function of Web services.

Web services are a technology that enables us to do specific functions on the internet. Some of the protocols include;

• Extensible Markup Language (XML) - Once put in this format, can be read on any system.

• Simple Object Access Protocol (SOAP) - Both of these protocols allow data movement between applications. SOAP allows communication through firewalls.

• WebServices Description Language- Formats XML

• Universal Description, Discovery and Integration- Finds web services.

Increasing web services will increase internet connectivity and the amount of programs online to users.

3. Describe how you see Social Networking being used in Business.



Social networking has become an increasing web service used more and more in today's society. Internet websites such as Facebook, Myspace and Twitter have revolutionized the social networking scene and have altered the way companies can now conduct business. Businesses can use social networking as an extended tool to their system of developing and spreading the product or service they produce. The important element of using this software is the key factor that it is for free. The use of this service will allow business to openly allow companies to announce product launches and provide customers (potential) to first see their products online. This will also give a great edge as now customers have another form of marketing that allows the name and reputation of the company to be seen across the world 24/7. Social networking is already been used today as a key resource and can only see the technology furthered in current corporations business plan.

Picture below show's the variety of social networks available to use

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Chapter 6

1. Define e-commerce and distinguish it from e-business.



E-commerce describes the buying, selling, transferring or exchanging of products, services and information via computer networks, including the Internet.



E-business is a broader definition of (EC), including buying and selling of goods and services, and also servicing customers, collaborating with partners, conducting e-learning and conducting electronic transactions within an organisation.





2. Distinguish among B2C, B2B, C2C and B2E electronic commerce.



Business to Customer - the transaction of goods and services between business and customers e.g. David Jones sells shirts to customers



Business to Business - the transaction of raw materials/inventory between companies e.g. Wholesaler of Widgets sells to Manufacturer



Customer to Customer - the transactions between customers and customers e.g. E-Bay



Business to Employee - transactions where business allow employees to manage their benefits, take training classes, buy discounted insurance, travel packages and event tickets e.g. Westpac offering shares to employees at discount price.

Diagram show's the process of a C2C transaction

3. List some benefits and limitations of e-commerce.



Business

E-commerce offers many benefits to business regarding to their market share and net profit. Some benefits include the increase of national and local markets become more accessible. With the ability of internet barriers become easier to enter and access to people across the globe. Business also have downsize in relation to their cost of processing, distributing and retrieving the information. Some limitations of e-commerce include technological and non-technological.



Technological:

• Lack of universally accepted payment and security standards

• Insufficient telecommunications bandwidth in some areas

• Not everyone has access/access varies

• Lots of IT solutions – which to choose?

Non-Technological

• Perception that EC is unsecure/not reliable

• Unresolved legal issues, e.g. tax related

• Harder to market to consumers?

Customer

The world wide web is 24/7 and this provides customers access to information and products anytime and anywhere. Customers have the ease of having a variety and many products to choose form, this in turn has increased their bargaining power in regards to price. This in turn has provided the customer to have more power than ever before. Some limitations still surround the security of the internet and the potential of fraud and false transactions. This has cause grey areas in the ability of security issues, laws, privacy.



4. What are spamming, permission marketing and viral marketing?



Spamming is the large random action of information to many individuals without their knowledge or permission.



Permission Marketing is used by business to apply to current customers/clients about future or current products that may occur or in development. It is gaining permission from existing customers to gain market based on their needs. e.g. Nike asking questions on preferred sport etc



Viral Marketing is the most appropriate and desirable outcome for most business and that is basically the spreading of information from customers to potential customers/investors.



5. What are micropayments?



Micropayments are essentially small, substantial payments to the company. These are generally in nature of high frequency and are recorded numerous times a day by many customers in a large context e.g. road tolls using e-tolls. The increase of software and other modern technologies has allowed for a recognition system that records all entries of the customer of their dealings and subsequently provides what is owed in full balance. In addition to these nominal fees small payments for caring technologies are paid e.g. buying the e-tag.


6. What is Multichanneling?



A multichannel is a business that offers customers more than one way to buy something - for example, in both retail stores, Online, Large Department Stores etc. This method considers both the virtual and physical context that enhances the spread of products within the market. This process will more often than not lead to disintermediation, a process where the distributors of a product a sliced out of the cycle and made straight to retail or further more from the corporation that created the product. This process as such has caused concerns as traditional roles of wholesalers (middle man) are taking from the equation.

Diagram show's the process of Multichannel's

7. List some ethical issues in EC.



The most significant and most noticeable ethical issue of e-commerce is the disappearance of the human dealings with unknown individuals and corporations purchasing products and services. This leads to the false representations such as the sale of goods to restricted groups (minors), terrioists and criminals. Issues include:

- Privacy Issues

- Cookies - organisations marketing system to create a profile of customer needs and wants.

- Security of customer’s information - this includes both personal and financial.



The link further's the issues of ethcis in E-commerce:

http://www.youtube.com/watch?v=7FYqgkIaQH4



8. List the major legal issues of EC.



The major legal issues that surround e-commerce is what is acceptable in one country may not be in another. This is critical as online buying can be conducted from another person in another country where law's and regulations are significantly different. These include:

• Trade restrictions - countries that have set outlaws of certain products from one country to another.
• Name registarrtoin problems - may not be acceptable in another country - cultural sensitivity
• Most importantly Privacy Laws - Intentional privacy laws surrounding the use and spread of personal data information from one entity to a next may be subject to law restrictions.
• Breach of tax requirements