What are Internet Business models? Essay Example
What are Internet Business models? Essay Example

What are Internet Business models? Essay Example

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  • Pages: 13 (3374 words)
  • Published: August 20, 2017
  • Type: Case Study
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The Internet can help companies create and capture profit in new ways by adding extra value to existing products and services or by providing the foundation for new products and services. The Internet Business models are abstraction of what and how the enterprise delivers product or service, showing how the enterprise creates wealth by taking advantages of the Internet's rich communication capabilities. They provide the customer with a new product or service; they provide additional information or service along with a traditional product or service, or they provide a product or service at a much lower cost than traditional means.

The most important Internet Business models that have emerged include:Virtual storefront. It sells physical goods or services on-line instead of through a physical storefront or retail outlet. Examples are Amazon.com, WingspanBank.comMarketplace concentrator. It concentrates information about products and services from multiple providers at o


ne central point.

Examples are ShopNow.com, InsureMareketOn-line exchange. It is a bid-ask system where multiple buyers can purchase from multiple sellers. Examples are Asia Capacity Exchange, E-Steel.

Information broker. It provides product, pricing, and availability information. Example is PartNet.Transaction broker. It enables buyers to view rates and terms from various sources.

Example is E*TRADE.Auction. It provides electronic clearinghouse for products where price and availability are constantly changing, in response to customer demand. Examples are eBay, Ubid.

Reverse auction. It enables consumers to submit a bid to multiple seller s to buy goods or services at a buyer-specified price. Example is Priceline.com.Aggregator. It enables groups of people who want to purchase a particular product sigh up and then seek a volume discount from vendors.

Example is MobShop.com.Digital product delivery. It sells are delivers software, multimedia, an

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other digital products over the Internet. Examples are Regards.com, PhotoDisc.

Content provider. It creates value through providing client for a fee, and advertising. Examples are Salon.com, TheStreet.com.On-line service provider.

It provides service and support for hardware and software users. Examples are PCSupport.com, Xdrive.com.Virtual community. It provides on-line meeting place where people can communicate and find useful information.

Examples are Geocities, FortuneCity.Portal. It provides initial point of entry to the Web along with specialized content and other services. Example is Yahoo.Syndicator. It aggregates multiple sources and resells them to other companies.

Example is Thinq.Outline the options and considerations for storage technology that may be available for complex data storage requirements such as that found at Q-Star PLC.Since the company's sensitive data must e held for at least 50 years, it may consider using optical disks. Optical disks, also called compact disks can store data at densities many times than those of magnetic disks. Optical disks are most appropriate for applications where enormous qualities of unchanging data must be stored compactly for easy retrieval.Since the company is operating globally, it would appear that there are significant advantages to accessing the data remotely.

SANs (Storage Area Networks) is a high-speed network dedicated to storage, which connects different kinds of storage devices, such as tape libraries and disk arrays. It can provide a solution for companies with the need to share information across applications and computing platforms. The network moves data among pools of servers and storage devices, creating an enterprise-wide infrastructure for data storage. The SAN creates a large central pool of storage that can be shared by multiple servers so that users can rapidly share data across the

SAN.Critically evaluate " We must use Java, XML and OOPs.

If we do not, our company will lag behind our competitors in innovative practice."A growing backlog of software projects and the need for business to fashion systems that are flexible or that can run over the Internet have stimulated approaches to software development based on object-oriented programming tools and new programming languages such as Java and Extensible Markup Language (HML).Object-oriented programming (OOP) combines data and the specific procedures that operate on those data into one object. The object combines data and program code.

Programs send a message for an object to perform a procedure that is already embedded into it. An object's data are encapsulated from other parts of the system, so each system is an independent software building block that can be used in many different systems without changing the program code. Thus, OOP is expected to reduce the time and cost of writing software by producing reusable program code or software chips that can be reused in other related systems.Java is a platform-independent object-oriented programming language developed by Sun Microsystems.

Java is designed to run on any computer or computing device, regardless of the specific microprocessor or operating system it uses. Hence, it is important for Internet, since it can run on any client. Java can be used to create miniature programs called Applets designed to reside on centralized network servers. The network delivers only the applets required for a specific function.

With Java applets residing on a network, a users can download only the software functions and data that he needs to perform a particular task, such as analyzing the revenue from

one sales territory. Java can be used with network computers because it enables all processing software and data to be stored on a network server, downloaded via a network as needed, and then placed back on the network server.Java is also a very robust language that can handle text, data, graphics, sound, and video, all within one program if needed. Java applets often are used to provide interactive capabilities for Web pages. Java allows PC users to manipulate data on networked systems using Web browsers, reducing the need to write specialized software.

XML is a new specification originally designed to improve usefulness of Web documents. It describes what the data in the documents mean, making the information in documents usable in computer programs. As it helps disparate applications identify and use a variety of information form otherwise incompatible sources, XML enables companies to respond to customers, cooperators and suppliers quickly.E-Government is all about "joint-up" Government. What technical considerations are there for implementing "joined-up" information technology?Outline the key consideration that you would include in your report to the clothes manufacturer who want to access their customers stock databases.

" We need to get into e-commerce an we need it fast, with great bandwidth."What applications would you recommend that you would consider important to "getting into e-business"?What is bandwidth and why is it important?Bandwidth is the range of frequencies that can be accommodated on a particular telecommunications channel. It is measured by the difference between the highest and lowest frequencies that can be transmitted by that channel. It is important because the greater the bandwidth, the greater the channel's transmission capacity.What is the difference between "application development lifecycle" and

"systems development lifecycle"?Normally the application development lifecycle refers to the development process in the normal waterfall type way. It is about the activities within the computer application.

Systems is a more complex term when focusing on 'management systems'. What it is about is not the technology, but human activities. Therefore the SDLC is a wider term in which the technology plays a role, and the ADLC is acomponent of the SDLC.What is end-user development? What are the risks associated with end-user development? How can these risks be controlled? Make comment on the issues raised in the finding of PMR.

End-user development is the development of information systems by end users with little or no formal assistance from technical specialists using 4th generation tools. Although the end-user development allows uses to specify their own business needs and leads to a higher level of user involvement and satisfaction with the system, end-user computing poses organizational risks because it occurs outside of traditional mechanisms for information system management and control. When systems are created rapidly, without a formal development methodology, testing and documentation may be inadequate. Control over data can be lost in systems outside the traditional information systems department.

When users create their on applications and files, it becomes increasingly difficult to determine where data are located and to ensure that the same piece of information is used consistently throughout the organization. Other weaknesses include: relatively inefficient, slow transaction processing, may carry high cost, large files can degrade performance, nonprocedural approach may hamper logic and updating requirements and "Island of technology" ( no information flow between them).The development of end-user applications should be controlled by requiring cost justifications of

end-user information system projects and by establishing hardware, software, and quality standards for user-developed applications. When end-user computing first become popular ,organizations used information centres to promote standards for hardware an software so that end-users would not introduce many disparate an incompatible technologies into the firm.(i) When applying financial analysis to information systems, what are the six limitations of financial models that should be considered?Many well-known problems emerge when financial analysis is applied to information systems.

(1) Financial models do not express the risks and uncertainty of their own cost and benefit estimates. (2) Costs and benefits do not occur in the same time frame-costs tend to be upfront and tangible, whereas benefits tend to be back loaded and intangible.(4) Inflation may affect costs and benefits differently. (4) Technology-especially information technology-can change during the course of the project, causing estimates to vary greatly. (5) Intangible benefits are difficult to qualify.

These factors wreak havoc with financial models.Investment in information system technology requires special consideration in financial modeling. Capital budgeting historically concerned itself with manufacturing equipment and other long-term investments such as electrical generating facilities and telephone networks. These investments had expected lives of more than 1 year and up to 25 years. (6)However, information systems differ from manufacturing systems in that their expected life is shorter. The very high rate of technological change in computer-based information systems means that most systems are seriously out of date in 5 to 8 years.

The high rate of technological obsolescence in budgeting for systems means simply that the payback period must be shorter and the rates of return higher than typical capital projects with much longer useful lives.The

bottom line with financial models is to use them cautiously and to put the results into a broader context of business analysis.(ii) What are "intangible benefits?" Identify five intangible benefits when applied to information systems.Intangible benefits are benefits that are not easily and immediately quantified but may lead to quantifiable gains in the long run; they include more efficient customer service or enhanced decision making.

Five intangible benefits include improved asset utilization, improved organizational planning, more timely information, increased job satisfaction and better corporate image.Outline the (i) key technologies for Internet security; (ii) levels of Internet access to database.(i) What is WAP technology and what is its potential for creating new business?Wireless Application Protocol (WAP) is a system of protocols and technologies that lets cell phones and other wireless devices with tiny displays, low bandwidth connections, and minimal memory access Web-based information and services. New business include instant messaging, e-mail, searching for a movie or restaurant using a cell phone, purchasing stocks, concert tickets, searching for the best price of an item using a cell phone and buying it in on the Web..

.(ii)What is an ISP and why would an organization use one?An Internet Service Provider (ISP) is a commercial organization with a permanent connection to the Internet that sells temporary connections to subscribers. It makes the Net a very inexpensive communications medium and a very fast method of communication.Lecure1. Introduction to MISDistinguish the terms " Information Systems" from " Information Technology".

An information system can be defined technically as a set of interrelated components working together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization in an organization.Information Technology

means computer hardware, software, data and storage technology, and networks providing a portfolio of shared information technology resources for the organization.Lecture 2. Electronic Commerce & Electronic BusinessWhat is an Internet Business model?The Internet can help companies create and capture profit in new ways by adding extra value to existing products and services or by providing the foundation for new products and services. The Internet Business models are abstraction of what and how the enterprise delivers and product or service, showing how the enterprise creates wealth by taking advantages of the Internet's rich communication capabilities.

They provide the customer with a new product or service; they provide additional information or service along with a traditional product or service, or they provide a product or service at a much lower cost than traditional means.2 . Outline the characteristics of each.Outline how Internet Business Models might be used in practice?People can make on-line bids for items posted by sellers from around the world.(2) People can make on-line communication. In the Internet communities, where people with similar interests can exchange ideas from many different locations.

(3)Some of these virtual communities are providing the foundation for new business.(4) A major source of revenue for these communities is providing ways for corporate clients to target customer. Companies can purchase electronic commerce services from syndicators to use on their Web sites.Lecture 3.

Managing hardware assetsLecture 4. Managing software assetsLecture 5. Application Development1. What is meant by "waterfall stages" in application development?In application development, waterfall stages are stages involved in the system development process.

SSADM( Structured System Analysis and Design Methodology) is part of it. It includes feasibility study, requirement analysis, requirement specification

and logical system specification. Other stages of "waterfall" include physical design, development, testing, implementation, maintenance and review.2.

Distinguish " system development" and "application development".Normally the application development lifecycle refers to the development process in the normal waterfall type way.Systems is a more complex term when focusing on 'management systems'. Therefore the SDLC is a wider term in which the technology plays a role, and the ADLC is acomponent of the SDLC.Lecture 6.

DatabaseWhat would you see as the key problems of application specific data storage?Data redundancy and confusion, program-data dependence, lack of flexibility, poor security and lack of data sharing and availability.Explain the nature, purpose and operation of a data warehouse.A data warehouse is a database, with reporting and query tools, that stores current and historical data extracted from various operational systems and consolidated for management reporting and analysis.Data warehouses enable decision makers to access data as often as they need without affecting the performance of the underlying operational systems. The purpose of a data warehouse is to provide an enterprise-wide view of the information needed by management for management analysis and decision making.The operation of data warehouse: the data originate in many core operational systems and external sources, including Web site transactions, each with different data models.

The data from the diverse systems are copied into the data warehouse database as often as needed. The data are standardized into a common data model and consolidated so that they can be used across the enterprise for management analysis and decision making. As more and more corporate data comes from changing external information sources such as the Web, data warehouse technology will need to find ways

to incorporating changing data structures. The data are available for anyone to access as needed but cannot be altered.Lecture 7.

Entity Relationship ModelingWhat are the limitations of " application specific file organization"?Data Redundancy and Confusion. Data redundancy is the presence of duplicate data in multiple data files. Data redundancy occurs when different divisions, functional areas, and groups in an organization independently collect the same piece of information.Program- Data Dependence. Program-data dependence is the tight relationship between data stored in files and the specific programs required to update and maintain those files.

Every computer program has to describe the location and nature of the data with which it works. In a traditional file environment, any change in data requires a change in all programs that access the data. Such changes may cost millions of dollars to implement in programs that require the revised data.Lack of Flexibility. A traditional file system can deliver routine scheduled reports after extensive programming efforts, but it cannot deliver ad hoc reports or respond to unanticipated information requirements in a timely fashion.

Poor Security. Because there is little control or management of data, access to and dissemination of information may be out of control. Management may have no way of knowing who is accessing or even making changes to the organization's data.Lack of Data Sharing and Availability. The lack of control over access to data in this confused environment does not make it easy for people to obtain information.

Because pieces of information in different files and different parts of the organization cannot be related to one another, it is virtually impossible for information to be shared or accessed in timely manner. Information

cannot flow freely across different functional areas or different parts of the organization.What advantages does the database approach have over "application specific file organization"?Database technology can cut through many of the problems a traditional file organization creates. A database is a collection of data organized to service many applications efficiently by centralizing the data and minimizing redundant data.

Rather than storing data in separate files for each application, data are stored physically to appear to users as being stored in only one location. A single database services multiple applications. The most important feature of the DBMS (Database Management System) is its ability to separate the logical and physical views of data.Lecture 8 Networks & Telecommunicationsoutline 4 technologies that are used for internet security.Firewalls,What is ISP and why would you use one?Outline the technology behind WAP technology, and what do you think the Business applications are of this technology?WAP uses Wireless Markup Language (WML), which is based on XML and optimized for tiny displays. Like XML, WML describes data rather than only the way data are displayed.

A person with a WAP-compliant phone uses the built-in microbrowser to make a request in WML. A microbrowser is an Internet browser with a small file size that can work with low memory constraints of handheld wireless devices and low bandwidth of wireless networks. The request is passed to a WAP gateway, which retrieves the information from an Internet server in either standard HTML format or WML. The gateway translates HTML content back into WML so that it can be received by the WAP client.

WAP supports most wireless network standards and operating systems for handheld computing devices such

as PalmOS and Windows CE.Name six applications that are important for electronic Business.Financial and AccountingIt includes general ledger reporting, project costing, annual reports and budgeting. Intranets can be very valuable for finance and accounting, because they can provide an integrated view of financial and accounting information on-line in an easy-to-use format.Human ResourcesHuman resources can use intranet for on-line publishing of corporate policy manuals, job postings and internal job transfers, company telephone directories and training classes.

Employees can use an intranet to enroll in healthcare, employee savings and other benefit plans. Human resource departments can rapidly deliver information about updating events or company developments to employees using electronic bulletin boards or e-mail.Sales and MarketingOversee and coordinate the activities of the sales force. Make sales contacts.

Sales staff can dial in for updates on pricing, promotions, rebates, or customers or to obtain information about competitors. They can access presentations and sales documents and customize them for customers.Manufacturing and ProductionIntranets coordinating the flow of information between lathes, controllers, inventory systems, and other components of a production system can make manufacturing information more accessible to different parts of the organization, increasing precision and lowering costs. The applications include quality measurement, maintenance schedules, design specifications, machine output, order tracking, etc.Digital Information ServicesPowerful and far-reaching digital information services enable networked PC and workstation users to obtain information from outside the firm instantly without leaving their desks. Commercial service provides desired mix.

Distance LearningDistance learning is education or training delivered over a distance to individuals in one or more locations. It can be accomplished with print-based materials and based on information technology, including teleconferencing or interactive multimedia, including the Web sites.

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