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INSTRUCTOR SLIDES

BE SURE TO REVIEW THE DETAILED TEACHING NOTES IN EACH SLIDE FOR CLASSROOM IDEAS, DEBATES, EXERCISES, AND VIDEOS

PELASE DO NOT SHARE THESE SLIDES WITH STUDENTS OR POST ON THE INTERNET

THE STUDENT VERSION OF THESE SLIDES DO NOT INCLUDE ANY CLASSROOM TEACHING MATERIALS

BE SURE TO REVIEW THE DETAILED TEACHING NOTES IN EACH SLIDE FOR CLASSROOM IDEAS, DEBATES, EXERCISES, AND VIDEOS

CHAPTER three

EBUSINESS

ELECTRONIC BUSINESS VALUE

CLASSROOM OPENER: GREAT BUSINESS DECISIONS – Edwin Land Develops the Polaroid Camera

In 1937, Edwin Land started a company that made a polarizing plastic and named it Polaroid. The business boomed. Land was taking family pictures on his vacation in 1943 when his three-year-old daughter asked why they had to wait so long to see the developed photographs. Land was struck with the idea of combining the polarization technology with developing films. By 1950, Land had a camera that produced black-and-white images and by 1963, he released a camera that produced color pictures. The Polaroid camera took off and by the late 1960s, it was estimated that 50 percent of American households owned one.

CLASSROOM EXERCISE – COULD YOU HAVE SAVED POLAROID?

If Polaroid executives had used Porter’s Five Forces analysis would they have discovered the threat of substitute products of the digital camera?

What could they have done to combat this threat?

CHAPTER three OVERVIEW

SECTION 3.1 – WEB 1.0 - EBUSINESS

Web 1.0: Disruptive Technology

The Four Ebusiness Models

Ebusiness Tools for Connecting and Communicating

SECTION 3.2 – WEB 2.0 – BUSINESS 2.0

Web 2.0: Advantages of Business 2.0

Networking Communities with Business 2.0

Business 2.0 Tools for Collaborating

Web 3.0: Defining the Next Generation of Online Business Opportunities

SECTION 3.1: WEB 1.0 EBUSINESS

One-hour film processing and digital cameras both contributed to the demise of Polaroid, a solid company that had an innovative technology and a captive customer base.

The dilemma that faced Polaroid is a dilemma that most organization face – the criteria an organization uses to make business decisions for its present business could possibly create issues for its future business. Essentially, what is best for the current business could ruin it in the long term.

In the past few years, ebusiness seems to have permeated every aspect of daily life. In just a short time, both individuals and organizations have embraced Internet technologies to enhance productivity, maximize convenience, and improve communications globally.

This chapter focuses on the disruptive technology, the Internet, and ebusiness processes that are changing the nature of the buyer-seller relationship, the role of information technology (IT), and organizational structures and tasks.

The chapter also discusses the opportunities and advantages found with developing ebusinesses. Specific relationships have been developed in the chapter between disruptive technologies and ebusinesses.

Learning outcomes

Compare disruptive and sustaining technologies and explain how the Internet and WWW caused business disruption

Describe ebusiness and its associated advantages

Compare the four ebusiness models

Describe the six ebusiness tools for connecting and communicating

A detailed review of the learning outcomes can be found at the end of the chapter in the textbook

Disruptive technology

Digital Darwinism – Implies that organizations which cannot adapt to the new demands placed on them for surviving in the information age are doomed to extinction

How can a company like Polaroid go bankrupt?

CLASSROOM EXERCISE: BUSINESS DRIVEN ETHICS AND SECURITY: DUCKDUCKGO!

Have you ever been online and noticed an ad pop-up for something you searched for two weeks ago? Creepy, right? This is the power of Google ad networks. Can you imagine someone having access to all of your Google searches? What could they find out about you? Most of your intimate secrets are shared with your search engine, including medical, financial, and personal questions. Should this information be private?

On Google your searches are tracked via your IP address and browser fingerprints, mined, and packaged into a data profile for advertisers to follow you around the Internet through banner ads. It is how Google makes money—selling search. Google is also tracking you on YouTube, Gmail, Chrome, Android, Gmaps, and all of its other services. Google analytics is installed on most websites, tracking you behind the scenes and allowing website owners to know who is visiting their sites, but also feeding that information back to Google.

DuckDuckGo is an alternative to Google for search and operates on the premise that it does not track your searches or allow advertising on your browsing habits. Every search on DuckDuckGo is like a new search, and the site does not even know who you are or track your IP. The site does not store any of your personal information or tie search history together that can later be tied back to you.

In a group, visit the DuckDuckGo website.

Do you believe Google has the right to track you, your search history, and your website browsing actions?

How are marketing firms using your search and browsing history to cyberstalk you with banner ads?

DISRUPTIVE VERSUS SUSTAINING TECHNOLOGY

What do steamboats, transistor radios, and Intel’s 8088 processor all have in common?

Disruptive technology – A new way of doing things that initially does not meet the needs of existing customers

Sustaining technology – Produces an improved product customers are eager to buy

CLASSROOM EXERCISE: DISRUPTING THE CLASSROOM

What do steamboats, transistor radios, and Intel’s 8088 processor all have in common?

They are all disruptive technologies

Break your students into groups and ask them to identify the primary differences between disruptive and sustaining technologies, along with several current examples of each

Disruptive technologies:

Disruptive technologies redefine the competitive playing fields of their respective markets

Disruptive technologies tend to open new markets and destroy old ones

Disruptive technologies typically cut into the low end of the marketplace and eventually evolve to displace high-end competitors and their reigning technologies

Sustaining technologies:

Sustaining technologies tend to provide us with better, faster, and cheaper products in established markets

Sustaining technologies virtually never lead in markets opened by new and disruptive technologies

DISRUPTIVE VERSUS SUSTAINING TECHNOLOGY

Innovator’s Dilemma discusses how established companies can take advantage of disruptive technologies without hindering existing relationships with customers, partners, and stakeholders

The Innovator’s Dilemma is a book by Clayton M. Christensen

Companies like Xerox, IBM, Sears, and DEC all listened to existing customers, invented aggressively in technology, had their competitive antenna up, and still lost their market-dominate positions

CLASSROOM EXERCISE: CLAYTON IN YOUR CLASSROOM

Have your students visit: http://claytonchristensen.com/

Show your student’s the video on MIT highlighting Clayton Christensen, simply google Clayton Christensen for his list of talks on disruptive technologies

Blockbuster Video

Borders Books

Land Lines

Cable TV

According to Christensen “Sound theory is at the heart of what we do. When applied correctly, these theories help explain important causal relationships in the world around us.”

Christensen believes that companies that feel victim to the innovators dilemma placed too great an emphasis on satisfying customers’ current needs, while forgetting to adopt new disruptive technology that will meet customers’ future needs, thus causing the companies to eventually fall behind

Ask your student to identify several additional companies that fell victim to the innovator’s dilemma

The internet and www – ultimate business disruptors

Internet – A massive network that connects computers all over the world and allows them to communicate with one another

Organizations must be able to transform as markets, economic environments, and technologies change

The Internet began as an emergency military communications system operated by the Department of Defense

Gradually the Internet moved from a military pipeline to a communication tool for scientists to businesses

Do your students agree that the Internet is an example of a disruptive technology?

When it was first introduced would they consider it a form of disruptive technology?

CLASSROOM EXERCISE: FINDING INNOVATION

Innovation, new ideas, and new technology are exciting. It is currently estimated that everything we know technically will represent 1 percent of all technology in 2050. Break your students into groups and ask them to search the Internet for the most exciting form of innovation that is going to hit our market and change our lives over the next ten years. Have your students present their findings to the class and offer a small prize to the winner.

A few examples include:

Computers that offer smells - click on a perfume and the scent permeates from your computer, movie theatres will offer smells that correspond to the movie

Electronic toilets – analyze output and let you know if you getting sick days before the cold actually hits. Great for rest homes and hospitals

Planes the size of small ships that offer shopping and restaurants

Ships the size of small cities where you can purchase an apartment

What's For Dinner? Just Call Your Refrigerator – Google smart appliances to show your students what’s new in the kitchen!

The internet and www – ultimate business disruptors

World Wide Web (WWW) – Provides access to Internet information through documents including text, graphics, audio, and video files that use a special formatting language called HTML – hypertext markup language

Web browser – Allows users to access the WWW

Hypertext Transport Protocol – The Internet protocol Web browsers use to request and display Web pages using URL – universal resource locator

Internet – Computer networks that pass information from one to another using common computer protocols

Protocol – Standards that specify the format of data as well as the rules to be followed during transmission

Are the Internet and the WWW synonymous?

People often interchange the terms Internet and the World Wide Web, but these terms are not synonymous – ask your students to explain why

The Internet is a global public network of computer networks that pass information from one to another using common computer protocols

The World Wide Web is a global hypertext system that uses the Internet as its transport mechanism

The World Wide Web operates on the Internet

CLASSROOM EXERCISE: INTERNET ENABLED HOMES

There are currently around 150 million smart homes worldwide – it won't be long before Internet-connected homes are the norm.

The average person now spends almost 10 hours a day online – we spend more time on the Internet that we do sleeping!

How do Internet enabled homes work?

What are the best features of an Internet-enabled home?

If you could have one device in your Internet-enabled home what would it be and how would it work?

In a group, create a new device for the Internet-enabled home of the future

The internet and www – ultimate business disruptors

Reasons for growth of the WWW

Microcomputer revolution

Advancements in networking

Easy browser software

Speed, convenience, and low cost of email

Web pages easy to create and flexible

What are the two primary reasons for growth of the WWW?

Two events changed the history of the Internet

On August 6, 1991 Tim Berners-Lee built the first website

Marc Andreesen built and distributed Mosaic

CLASSROOM VIDEO: INTERVIEW: SIR TIM BERNERS-LEE

20 years ago, Tim Berners-Lee invented the World Wide Web.

For his next project, he's building a web for open, linked data that could do for numbers what the Web did for words, pictures, video: unlock our data and reframe the way we use it together.

The Next Web Video http://www.ted.com/talks/tim_berners_lee_on_the_next_web

At TED2009, Tim Berners-Lee called for "raw data now" — for governments, scientists and institutions to make their data openly available on the web. At TED University in 2010, he shows a few of the interesting results when the data gets linked up.

The Year Open Data Went Worldwide: https://www.ted.com/talks/tim_berners_lee_the_year_open_data_went_worldwide

Web 1.0: the catalyst for ebusiness

Web 1.0 – A term to refer to the WWW during its first few years of operation between 1991 and 2003

Ecommerce – Buying and selling of goods and services over the Internet

Ebusiness – Includes ecommerce along with all activities related to internal and external business operations

Ebusiness opened up a new marketplace for any company willing to move its business operations online

Paradigm shift – Occurs when a new radical form of business enters the market that reshapes the way companies and organizations behave

CLASSROOM EXERCISE: FIND BUSINESS DISRUPTORS

5 billion Google searches are performed on the Internet each day!

Do you consider that a paradigm shift?

Ask your students to list other types of paradigm shifts besides the Internet

Radio

Printing press

What are new technological trends that will impact business?

IoT

M2M

Web 1.0: the catalyst for ebusiness

Both individuals and organizations have embraced ebusiness to enhance productivity, maximize convenience, and improve communications

CLASSROOM EXERCISE: TOP THREE WEBSITES

Google is ranked as the most popular website worldwide, with Youtube coming in second and Facebook third

What advantages does Google offer a business?

What advantages does Youtube offer a business?

What advantages does Facebook offer a business?

Do any of these companies offer challenges to a business?

EXPANDING GLOBAL REACH

The Internet’s impact on information

Easy to compile

Increased richness

Increased reach

Improved content

Internet’s Impact on Information

Easy to compile - Searching for information on products, prices, customers, suppliers, and partners is faster and easier when using the Internet.

Increased richness - refers to the depth and breadth of information transferred between customers and business. Businesses and

customers can collect and track more detailed information when using the Internet.

Increased reach - refers to the number of people a business can communicate with, on a global basis. Businesses can share information with numerous customers all over the world.

Improved content - A key element of the Internet is its ability to provide dynamic relevant content. Buyers need good content descriptions to make informed purchases, and sellers use content to properly market and differentiate themselves from the competition. Content and product description establish the common understanding between both parties to the transaction. As a result, the reach and richness of that content directly affects the transaction.

CLASSROOM EXERCISE: WHAT IS THE DIFFERENCE?

What is the difference between information richness and information reach?

Information richness refers to the depth and breath of information transferred between customers and business

Instead of a company catalog with a simple text box and perhaps a small photo, the Web allows companies to post 3-dimensional photos, video, customer reviews, newspaper and magazine articles, product comparisons including price, etc.

Information reach refers to the number of people a business can communicate with, on a global basis

Companies can now reach customers around the world, not just customers who can physically travel to their store

Do you believe there is more business power in information richness or information reach?

OPENING NEW MARKETS

Mass customization – The ability of an organization to tailor its products or services to the customers’ specifications

Personalization – Occurs when a company knows enough about a customer’s likes and dislikes that it can fashion offers more likely to appeal to that person

Mass customization – The ability of an organization to tailor its products or services to the customers’ specifications

Personalization occurs when a website can know enough about a person’s likes and dislikes that it can fashion offers that are more likely to appeal to that person.

Personalization involves tailoring a presentation of an ebusiness website to individuals or groups of customers based on profile information, demographics, or prior transactions. Amazon uses personalization to create a unique portal for each of its customers.

CLASSROOM EXERCISE: CUSTOMIZE OR PERSONALIZE – YOUR CHOICE?

Ask your students to create a list of companies or products that are using mass customization

Mini Cooper

Nike shoes

M&Ms

Ask your students to create a list of products that feature personalization

Amazon is the best example

Netflix

If you could only chose one competitive advantage would it be mass customization or personalization? Why?

REDUCING COSTS

The Long Tail – Refers to the tail of a typically sales curve

CLASSROOM EXERCISE: LISTING PRODUCTS IN THE LONG TAIL

Ask your students to list products they would include in the head of the sales curve

Top 40 music

Top 40 movies

Brand name apparel

Top selling books

Regular sized shoes and clothes

Top destination travel locations

Ask your students to list products they would include in the long tail of the sales curve

Indie bands

Indie movies

Irregular sized shoes and clothes

Books on specific topics

Remote travel locations

CLASSROOM EXERCISE: VIDEO: CHRIS ANDERSON – THE LONG TAIL VIDEO

Chris Anderson, the editor of WIRED (not to be confused with the curator of TED, who has the same name), explores the four key stages of any viable technology: setting the right price, gaining market share, displacing an established technology and, finally, becoming ubiquitous.

To demonstrate this trajectory, Anderson explores the evolution of the DVD player as it passes through each of these four tipping points, then offers specific examples of current trends in technology -- ranging from DNA sequencing to the hybrid -- to illustrate each stage of the game.

http://www.ted.com/index.php/talks/view/id/72

I Can Name Anything

Did you know you can make a living naming things? Eli Altman has been naming things since he was 6 years old and has named more than 400 companies and brands while working for A Hundred Monkeys, a branding consulting company. Altman recently noticed an unfamiliar trend in the industry: nonsensical names such as Flickr, Socializr, Zoomr, Rowdii, Yuuguu, and Oooooc. Why are names like this becoming popular?

The reason is “domain squatting” or “cyber squatting,” the practice of buying a domain to profit from a trademarked name. For example, if you wanted to start a business called Drink, chances are a domain squatter has already purchased drink.com and is just waiting for you to pay big bucks for the right to buy it. Domain squatting is illegal and outlawed under the Anticybersquatting Consumer Protection Act.

Do you agree that domain squatting should be illegal? Why or why not? If you were starting a business and someone were squatting on your domain, what would you do?

REDUCING COSTS

Intermediary – Agents, software, or businesses that provide a trading infrastructure to bring buyers and sellers together

Disintermediation

Reintermediation

Cybermediation

Disintermediation – Occurs when a business sells directly to the customer online and cuts out the intermediary

Reintermediation – Steps are added to the value chain as new players find ways to add value to the business process

Cybermediation – Refers to the creation of new kinds of intermediaries that simply could not have existed before the advent of ebusiness

CLASSROOM EXERCISE: DISINTERMEDIATION OF YOUR MAJOR

Ask your students their majors – accounting, finance, marketing, management, human resources, information technology, etc.

List the different majors on the board and ask them to identify how their industry has been disintermediated or reintermediated

Accounting – Turbotax, Quickbooks, ADP Payroll

Marketing – Google Analytics, Social Media

Finance – Mint.com, Mortgage company, Digital wallets

CLASSROOM EXERCISE: OPENING CASE STUDY: THE WARBY PARKER WAY

The direct-to-consumer (DTC) space is viciously competitive and yet extremely exciting to watch as hundreds of products from razors to mattresses are attempting to dominate this space. This market has come to fruition with the invention of the Internet and mass distribution of PCs and mobile devices. The appeal of the DTC movement goes like this: By selling directly to consumers online, you can avoid exorbitant retail markups and therefore afford to offer some combination of better design, quality, service, and lower prices because you've cut out the intermediary. By connecting directly with consumers online, you can also better control your messages to them and, in turn, gather data about their purchase behavior, thereby enabling you to build a smarter product engine. If you do this while developing an “authentic” brand—one that stands for something more than selling stuff—you can effectively steal the future out from under giant legacy corporations. There are now an estimated 400-plus DTC start-ups that have collectively raised some $3 billion in venture capital since 2012.

IMPROVING EFFECTIVENESS

Interactivity - Measures advertising effectiveness by counting visitor interactions with the target ad, including time spent viewing the ad, number of pages viewed, and number of repeat visits to the advertisement.

Heat map - A two-dimensional representation of data in which values are represented by colors.

CLASSROOM EXERCISE: VIRTUAL ABANDONMENT

Approximately 35 percent of online shopping carts are abandoned prior to checkout.

Abandoned shopping carts relates directly to lost revenues for a business.

It is like customers walking out of the store, leaving their cart full of chosen items.

Businesses need to focus on why the customers are virtually walking out of their stores.

The problem typically lies in the checkout process. Ask your students how this issue can be fixed? Here are a few sample ideas!

Make sure the checkout button is easy to find.

Make sure personal information is safe and the website’s security is visible.

Streamline the checkout process so the customer has as few clicks as possible.

Do not ask shoppers to create an account prior to checkout, but you can ask them to create an account after checkout.

Ensure your return policy is visible.

Have you ever abandoned a virtual shopping cart? In a group, visit a website that you or your peers have recently abandoned and review the checkout process. Was it difficult, cumbersome, or lacking security? Then visit Amazon.com and review its checkout process and determine whether Amazon is meeting the preceding recommendations.

Ask your students why a company would want to review a heat map of its website?

Heat maps will tell the company where the majority of traffic lands, where they leave, the videos they are watching, the products they are looking at – heat maps can tell the company the hot spots for the website!

IMPROVING EFFECTIVENESS

Clickstream data tracks the exact pattern of a consumer’s navigation through a website

Clickstream data can reveal

Number of page views

Pattern of websites visited

Length of stay on a website

Date and time visited

Number of customers with shopping carts

Number of abandoned shopping carts

Clickstream data can reveal a number of basic data points on how consumers interact with websites

Ask your students what an organization can learn from understanding click-stream data

For example, what does number of abandoned shopping carts tell an organization?

What does a customer who stays on one webpage for 8 hours indicate?

What does a customer who stays on one webpage for 5 seconds indicate?

CLASSROOM EXERCISE: WORKING WITH YOUR HEART—KIVA

Kiva’s mission is to connect people through lending for the sake of alleviating poverty.

Kiva is a microlending online nonprofit organization that enables individuals to lend directly to entrepreneurs throughout the world.

If you want to participate in Kiva, you simply browse the website (www.kiva.org) and choose an entrepreneur that interests you, make a loan, then track your entrepreneur for the next 6 to 12 months while he or she builds the business and makes the funds to repay the loan.

When the loan is up, you can relend the money to someone else who is in need.

Kiva is an excellent example of blending ethics and information technology.

How is Kiva operating differently than traditional nonprofits?

What are the risks associated with investing in Kiva?

When you invest in Kiva, you run three primary risks: entrepreneur risk, local field partner risk, and country risk.

Analyze each of these risks for potential unethical issues that might arise when donating to Kiva.

IMPROVING EFFECTIVENESS

Generating marketing revenue on the Internet

Associate program (affiliate program) - Businesses generate commissions or royalties

Banner ad - Box running across a web page that contains advertisements

Pop-up ad - A small web page containing an advertisement

Viral marketing - A technique that induces websites or users to pass on a marketing message

Associate programs (affiliate programs) allow businesses to generate commissions or royalties from an Internet site. For example, a business can sign up as an associate of a major commercial site such as Amazon. The business then sends potential buyers to the Amazon site using a code or banner ad. The business receives a commission when the referred customer makes a purchase on Amazon.

An Banner ad is a box running across a web page that is often used to contain advertisements. The banner generally contains a link to the advertiser’s website. Web-based advertising services can track the number of times users click the banner, generating statistics that enable advertisers to judge whether the advertising fees are worth paying. Banner ads are like living, breathing classified ads.

A pop-up ad is a small web page containing an advertisement that appears on the web page outside of the current website loaded in the web browser. A pop-under ad is a form of a pop-up ad that users do not see until they close the current web browser screen.

Viral marketing is a technique that induces websites or users to pass on a marketing message to other websites or users, creating exponential growth in the message’s visibility and effect. One example of successful viral marketing is Hotmail, which promotes its service and its own advertisers’ messages in every user’s email notes. Viral marketing encourages users of a product or service supplied by an ebusiness to encourage friends to join. Viral marketing is a word-of-mouth type advertising program.

CLASSROOM EXERCISE: VIRAL MARKETING VIDEO CLIP

From Spam to Viral Marketing from John Cleese

John Cleese Viral Video Generates over 280,000 Downloads; LiveVault's Popular Institute for Backup Trauma Viral Video Starring John Cleese Generates 120,000 New Downloads Three Months After Release

This is one of the original examples of a successful viral marketing campaign.

https://www.youtube.com/watch?v=GZ2lShDM4-0 (If this link is down please Google “John Cleese Institute for Backup Trauma”

IMPROVING EFFECTIVENESS

Clickstream analytics - The process of collecting, analyzing and reporting aggregate data about which pages a website visitor visits—and in what order.

Website traffic analytics - Uses clickstream data to determine the efficiency of the site for the users and operates at the server level.

Website ebusiness analytics - Uses clickstream data to determine the effectiveness of the site as a channel-to-market.

CLASSROOM EXERCISE: BUSINESS DRIVEN ANALYTICS: WEBSITE ANALYTICS

Ask your students to differentiate between Website traffic analytics and Website ebusiness analytics

Website traffic analytics will help a company understand ease of use of the website – the efficiency

Website ebusiness analytics will help a company understand buying patterns and if the right customers are finding the right products to purchase

Have your students review the exercise in the textbook: Website Analytics

Stars Inc. is a large clothing corporation that specializes in reselling clothes worn by celebrities. The company’s four websites generate 75 percent of its sales. The remaining 25 percent of sales occur directly through the company’s warehouse. You have recently been hired as the director of sales. The only information you can find about the success of the four websites is displayed in the table below.

You decide that maintaining four websites is expensive and adds little business value. You propose consolidating to one site. Create a report detailing the business value gained by consolidating to a single website, along with your recommendation for consolidation. Be sure to include your website profitability analysis. Assume that, at a minimum, 10 percent of hits result in a sale; at an average, 30 percent of hits result in a sale; and at a maximum, 60 percent of hits result in a sale.

THE FOUR EBUSINESS MODELS

Ebusiness model – A plan that details how a company creates, delivers, and generates revenues on the internet

CLASSROOM EXERCISE: EBUSINESS BUSINESS

Can a business operate with more than one ebusiness model?

Yes, eBay and Amazon are prime examples.

eBay and Amazon’s ebusiness models change depending on who is posting the goods for sale and who is buying the goods for sale?

Ask your students to list the types of companies they want to work for when they graduate

List the companies on the board and categorize them by industry

Assign each industry to a group, or assign the industry to each individual depending on the company they want to work for, and have the students research how the different industries are using ebusiness

Manufacturing and Retail: RFID, online payments and orders, sales via the Internet, customer service via the Internet

Financial: online banking, online mortgages, online loans

Telecommunications: Voice over the Internet (VoIP)

Healthcare: digital hospitals, pharmacy orders via the Internet

Travel: online reservations, Travelocity, Expedia

THE FOUR EBUSINESS MODELS

CLASSROOM EXERCISE: GET THEM THINKING

Can you define a business that operates in each segment?

B2B: Electronic marketplace, Google search marketing

B2C: Progressive insurance, Carfax, Best Buy, Amazon

C2B: eBay, Amazon

C2C: eBay, Amazon

BUSINESS-TO-BUSINESS (B2c)

Common B2C Ebusiness Models

Business Types:

Brick-and-mortar business - operates in a physical store without an Internet presence.

Pure-play (virtual) business - a business that operates on the Internet only without a physical store. Examples include Amazon.com and Expedia.com.

Click-and-mortar business – a business that operates in a physical store and on the Internet. Examples include REI and Barnes and Noble.

CLASSROOM EXERCISE: GET THEM THINKING

Can you name a company that operates in each of the different business types?

Brick-and-mortar business – local book store, college book store (there are not many today)

Pure-play business – Amazon.com, eBay

Click-and-mortar business – Barnes and Noble

Amazon is now opening stores.

Does this business strategy make sense to move from a pure-play to a click-and-mortar?

Is this is type of reintermediation?

Will the Amazon stores be successful?

EBUSINESS FORMS AND REVENUE-GENERATING STRATEGIES

Common ebusiness forms

Content providers

Infomediaries

Online marketplaces

Portals

Service providers

Transaction brokers

Discuss the Figure from the text which highlights the different types of intermediaries

Explain the relationship between intermediaries and reintermediation

Reintermediation occurred because of intermediaries

CLASSROOM EXERCISE: LET’S TRAVEL

Have your students create a trip itinerary for a 7 day trip to Paris with a nice hotel and rental car on Priceline or Kayak

Which site did they like best?

Which site had the best website? Most effective?

Which site will they continue to use? Most efficient?

EBUSINESS FORMS AND REVENUE-GENERATING STRATEGIES

Search engine – Website software that finds other pages based on keyword matching similar to Google

Search engine ranking – Evaluates variables that search engines use to determine where a URL appears on the list of search results

Search engine optimization – Combines art along with science to determine how to make URLs more attractive to search engines resulting in higher search engine ranking

CLASSROOM EXERCISE: GET THEM THINKING

Ask your students how frequently they search and the different types of search they use

Ask your students if they started a business which type of search would be most effective? Which type of search would be least effective?

Ask your students to categorize the different types of search according to business models for each of the following:

- Retail store

- Movie theater

- Book store

- Grocery store

- Coffee shop

Auto dealer

CLASSROOM EXERCISE: BUSINESS DRIVEN START-UP: ARE YOU READY FOR YOUR NEXT GIG?

The word gig comes from the music world; a gig is a paid appearance of limited duration.

A gig economy is an environment in which temporary employment is common and organizations contract with independent workers for short-term engagements.

Today’s workforce is expected to change jobs at least seven times before retirement.

The gig economy will make workers independent of one company, and job changing will be far easier than ever before.

Forces driving the gig economy include the proliferation of websites and mobile applications designed to help employers and people seeking part-time work find each other.

Another important influence is a millennial generation workforce that values work–life balance. Today’s workforce is increasingly mobile, and if a job is decoupled from location and work can be done from anywhere, gig workers are free to choose to work a series of jobs that are interesting and enjoyable, rather than making a long-term commitment to a single job that’s not interesting or enjoyable, just for the sake of financial security.

From a business perspective, a gig economy can save a company money with lower investments in health insurance, office space, and training expenses.

Businesses can also hire experts for individual projects, choosing from the best professionals available without having to maintain high-salaried workers.

A study by Intuit predicted that by 2025, 50 percent of American workers would be independent contractors and members of the gig economy.

What are the pros and cons to working in the gig economy?

Do you believe you will be part of the gig economy? How can this course help you prepare for work in the gig economy?

EBUSINESS FORMS AND REVENUE-GENERATING STRATEGIES

Ebusiness revenue models

Advertising fees

License fees

Subscription fees

Transaction fees

Value-added service fees

Pay-per-click

Pay-per-call

Pay-per-conversion

eBay is the Internet’s most successful C2C site and is now ranked in the top 15 retailers in the United States

Which type of revenue models would the following industries use?

Car

Boat

Vacation

Bicycle

Clothing

Streaming Content

Pet grooming service

Dog walking service

Wedding catering

CLASSROOM EXERCISE: THE COMPETITIVE NATURE OF WEBSITES

Have students team up with two or three classmates to select and compare websites of two retailers that are in the same business (as an example jcrew.com vs. abercrombie.com, or Amazon.com vs. bn.com).

Have students use the list of "do's and don'ts" from a Google search and compare the two sites, along with other criteria you might like to add.

Have students review the range of information resources and services used in the sites and the ways in which they are organized, designed, and presented.

The basic question the groups should attempt to answer is how well the sites support the conduct of ebusiness.

After analyzing the sites, have students compare the strengths and weaknesses of the two sites.

Students should be able to draw a conclusion as to which one they think does the best job of attracting customers to the website and retaining them once they get there. Also, have students comment on how well they think each site…

Offers a fast and convenient shopping experience

Provides access to help or additional information

Selects desirable products and displays them and describes them in an attractive and easy-to understand manner

Describes its method for getting purchases to customers promptly

Uses online ads, affiliate programs, viral marketing, and email marketing

EBUSINESS FRAUD

Affiliate program - Allows a business to generate commissions or referral fees when a customer visiting its website clicks a link to another merchant’s website.

Click fraud - The practice of artificially inflating traffic statistics for online advertisements.

Hitbots - Create the illusion that a large number of potential customers are clicking the advertiser's links, when in fact there is no likelihood that any of the clicks will lead to profit for the advertiser.

Ask your students why a company would engage in click fraud to hurt a rival or competitor?

Ask your students why a company might use hitbots on its own website?

CLASSROOM EXERCISE: PROTECTING CUSTOMERS

Identity theft is rising and there are great examples on the Internet

Ask your students to compile a listing of identity theft and phising scams by researching the Internet to find examples

Discuss all of the examples to help spread awareness to your students

What can a company do to help prevent identity theft and phising scams?

EBUSINESS TOOLS FOR CONNECTING AND COMMUNICATING

Instant messaging

Podcasting

Videoconferencing

Web conferencing

Content management system

Identity theft is already so common that there are entire units within law enforcement that deal with this issue every day

There are toll-free numbers, websites and documents that clearly define incident response procedures

As firms began to move online, more MIS tools were created to support ebusiness processes and requirements

Videoconference is a set of interactive telecommunication technologies that allow two or more locations to interact via two-way video and audio transmissions simultaneously. It has also been called visual collaboration and is a type of groupware.

Videoconferencing uses telecommunications of audio and video to bring people at different sites together for a meeting. This can be as simple as a conversation between two people in private offices (point-to-point) or involve several sites (multi-point) with more than one person in large rooms at different sites. Besides the audio and visual transmission of people, videoconferencing can be used to share documents, computer-displayed information, and whiteboards

CLASSROOM EXERCISE: GET THEM THINKING

Ask your students what are the business advantages of videoconferencing?

What industries are at risk because of videoconference?

Airlines, hotels, rental cars (all businesses used in business travel which becomes nonexistent with the use of videoconferencing)

Web conferencing blends audio, video, and document-sharing technologies to create virtual meeting rooms where people “gather” at a password-protected Web site. There, they can chat in conference calls or use real-time text messages. They can mark up a shared document as if it were a blackboard, and even watch live software demos or video clips.

Perhaps the biggest surprise about Web conferencing is its simplicity. Users only need to set up an account and download a few small software files. The best part about a Web conference is that attendees do not have to have the same hardware or software. Every participant can see what is on anyone else’s screen, regardless of the application being used

Ask your students what are the business advantages of videoconferencing?

What industries are at risk because of videoconference?

Airlines, hotels, rental cars (all businesses used in business travel which becomes nonexistent with the use of videoconferencing)

SECTION 3.2: WEB 2.0: BUSINESS 2.0

CLASSROOM OPENER: GREAT BUSINESS DECISIONS – JEFF BEZOS DECIDES TO SELL BOOKS OVER THE INTERNET

Jeff Bezos owns 41 percent of Amazon and is estimated to be worth over $900 million. Bezos graduated from Princeton and was the youngest Vice President at Banker’s Trust in New York. Bezos had to make a decision to stay and receive his 1994 Wall Street bonus or leave and start a business on the Internet. “I tried to imagine being eighty years old, looking back on my life. I knew that I would hardly regret having missed the 1994 Wall Street bonus. But having missed being part of the Internet boom – that would have really hurt,” stated Bezos. The first books ordered through Amazon were dispatched in the fall of 1994 (personally packaged by Bezos and his wife). Amazon.com is now the biggest bookstore on the planet. It is the exemplar of electronic business.

LEARNING OUTCOMES

Explain Web 2.0 and identify its four characteristics

Explain how Business 2.0 is helping communities network and collaborate

Describe the three Business 2.0 tools for collaborating

Describe Web 3.0 and the next generation of online business

A detailed review of the learning outcomes can be found at the end of the chapter in the textbook

WEB 2.0: ADVANTAGES OF BUSINESS 2.0

Web 2.0 – The next generation of Internet use – a more mature, distinctive communications platform characterized by three qualities

Collaboration

Sharing

Free

More than just the latest technology buzzword, Web 2.0 is a transformative force that is propelling companies across all industries toward a new way of doing business.

What is causing this change? Consider the following raw demographic and technological drivers:

One billion people around the globe now have access to the Internet.

Mobile devices outnumber desktop computers by a factor of two.

Nearly 50 percent of all U.S. Internet access is now via always-on broadband connections.

CLASSROOM EXERCISE: THE WEB’S MOST USEFUL SITES

You have lots of stuff to get done. And these next-generation services can help with everything from wrangling passwords to throwing a party. Google the most useful websites for a current listing of what is hot on the net. Here are a few exciting sites to share with your students.

BugMeNot: Are you bugged constantly to sign up for websites, even though you do not wish to share your email? If yes, then BugMeNot is for you. Instead of creating new logins, BugMeNot has shared logins across thousands of websites which can be used.

Get Notify: This nifty little website tracks whether the emails sent by you were opened and read by the receiver. Moreover, it also provides the recipient’s IP Address, location, browser details, and more.

Zero Dollar Movies: If you are on a constant lookout of free full length movies, then Zero Dollar movies provides a collection of over 15,000 movies in multiple languages that are available to watch for free on Youtube. It indexes only full length movies and no trailers, or partial uploads. In addition, it has a clean interface, contributing to a good movie watching experience.

Livestream: Livestream allows you to watch and broadcast events live to viewers on any platform. For the next time when you want to share your company’s annual CEO speech live to employees who are on remote locations, Livestream serves as a perfect platform.

scr.im: scr.im converts your email address into a short custom URLs, that can be shared on public websites. This prevents your email id from getting picked up by spam robots, and email harvesters who are on a constant lookout from your email id.

TinEye: TinEye is a Reverse Image search tool which is as accurate as Google’s Reverse Image search tool. As opposed to Google, TinEye provides a set of APIs that can be used for personal and commercial purposes, which makes it very useful for developers.

Stickk: Is it difficult for you to stick to goals ? If yes, then let Stickk help you reach your goals. It makes use of commitment contracts to empower you to better your lifestyle.

Boxoh: Boxoh can track the status of any shipment package on Google Maps.

WEB 2.0: ADVANTAGES OF BUSINESS 2.0

Direct-to-Consumer (DTC) - Ebusiness model where companies build, market, sell, and ship their products themselves, without relying on traditional stores or intermediaries

Customer Experience

Data Collection

Reduced Costs

Customer Experience: Consumers are demanding a better experience. Customer experience is the new battlefield and customers want it seamless. When wholesale manufacturers sell through retail distributors, they have very little say on how the product is sold. They’re at the mercy of the distributor to ensure that the customer leaves the store (or the website) happy and satisfied. By selling directly to consumers, companies can envision how the customer journey should take place and execute the tactics required to make that vision a reality. A huge competitive advantage for any company wishing to attract and retain loyal customers. Data Collection: Direct sales allows them to collect customer data. For many brands, the most compelling reason to sell directly to consumers is the potential to collect massive amounts of customer data. Clothes retailer Zara collects more information from its returns than from the products customers keep. A huge win for not only Zara but also the clothing manufacturers.

Reduced Costs: DTC companies manufacture and ship their products directly to buyers without relying on traditional stores or other intermediaries. This allows DTC companies to sell their products at lower costs than traditional consumer brands, and to maintain end-to-end control over the making, marketing, and distribution of products. Selling DTC avoids the exorbitant retail markups and therefore affords to offer some combination of better design, quality, and service at a lower price. DTC eliminates the use of intermediaries.

CLASSROOM EXERCISE: DTC A PRODUCT

Warby Parker set the stage for a new exciting business model – DTC.

Harry’s razors soon followed.

In a group, create an idea for a product that you could use the DTC model to produce.

Would customers prefer your product over store brands?

How would you ensure a cheaper product?

What are the key features of a DTC model?

WEB 2.0: ADVANTAGES OF BUSINESS 2.0

Characteristics of Business 2.0

It is getting harder and harder for any one individual to perform organizational activities in isolation

The majority of work today is performed in groups and teams

These teams can be departmental, interdepartmental, cross-functional, internal, and external

CLASSROOM EXERCISE: ANTISOCIAL NETWORKING

Ask your students to list types of organizational activities that are performed by individuals

Ans: For the most part, almost all organizational activities are performed in teams. For example, a customer service representative usually needs to talk with many coworkers to discover customer issues and problem resolution

A marketing executive will need to work with sales representatives to determine what is “hot” in the market, what is selling, and what issues/complaints customers have before launching a new product

Before the Internet, angry customers could write letters or make phone calls, but their individual power to find satisfaction or bring about change was relatively weak.

Now, disgruntled consumers can create a website or upload a video bashing a product or service, and their efforts can be instantly seen by millions of people.

Though many companies monitor the Internet and try to respond to such postings quickly, power has clearly shifted to the consumer.

Create an argument for or against the following statement: “Social networking has given power to the consumer that benefits society and creates socially responsible corporations.”

CONTENT SHARING THROUGH OPEN SOURCING

Open system – Nonproprietary hardware and software based on publicly known standards that allows third parties to create add-on products to plug into or interoperate with the system

Source code

Open source

Closed source

Source code – contains instructions written by a programmer specifying the actions to be performed by computer software

Open source – any software whose source code is made available free for any third party to review and modify

Collaboration systems, such as groupware, enable, support, and facilitate internal and external team collaboration

This is a good time to mention the importance of people skills, or soft skills, in additional to business knowledge. Your students should anticipate working with many coworkers from different areas of the business when solving issues or finding opportunities. Building soft skills is just as important as building analytical skills. Successful people rarely work in isolation.

Collaboration solves specific business tasks such as telecommuting, online meetings, deploying applications, and remote project and sales management

Collaboration allows people, teams, and organizations to leverage and build upon the ideas and talents of staff, suppliers, customers, and business partners

It involves a unique set of business challenges that:

Include complex interactions between people who may be in different locations and desire to work across function and discipline areas

Require flexibility in work process and the ability to involve others quickly and easily

Create and share information rapidly and effortlessly within a team

Increasingly, organizations are extending their focus from internal operations like planning and scheduling, enterprise resource planning and sales force automation, toward operations beyond their own four walls with external customers and suppliers

This chapter focuses on the need for collaboration, the technology that supports collaboration, and collaboration trends

s It Web 1.0 or Web 2.0?

Deciding whether a given site is Web 1.0 or Web 2.0 is not as straightforward as it appears. Websites do not have version numbers, and many are dynamic enough to be in permanent beta testing. Facebook and MySpace are good Web 2.0 examples, primarily due to their social networking functions and their reliance on user-generated content. Some sites are easy to identify as Web 1.0 in their approach: Craigslist, for example, emulates an email list server and has no public user profiles or dynamic pages. Many other sites are hard to categorize.

Amazon.com launched in the mid-1990s and has gradually added features over time. The principal content (product descriptions) is not user-created, but much of the site’s value is added by user reviews and ratings. Profiles of users do exist, but social features such as friend links, although present, are not widely adopted.

Review the following websites and categorize them as Web 1.0, Web 2.0, or both. Be sure to justify your answer with the characteristics that classify the website as 1.0, 2.0, or both. Why would certain types of businesses choose to remain Web 1.0 and not offer collaboration or open source capabilities?

www.ebay.com; www.amazon.com; www.facebook.com; www.craigslist.com; www.paypal.com; www.twitter.com; www.irs.gov; www.google.com; www.youtube.com. www.wikipedia.com

For the following, be sure to use your personal websites as references: your college’s website; www.YourVisaCard.com; www.YourBank.com.

USER-CONTRIBUTED CONTENT

User-contributed content – Created and updated by many users for many users

Reputation system

Native advertising

CLASSROOM EXERCISE: QUESTION YOUR THINKING

Ask your students to identify websites that operate using user-contributed content

YouTube

Wikipedia

Yelp

Rate My Professor

CLASSROOM EXERCISE: BUSINESS DRIVEN GLOBALIZATION: DEBATE ON SEARCH ENGINES

Did you know that a single Google search takes more energy than it took to send Apollo 11 to the moon?

Google searches have gone from 500,000 searches per day in 1998 to 2.3 million searches per second. Search engines such as Google and Firefox collect, analyze, and return content on demand.

Enter a search term into the search engine's prompt, and a three-stage process launches and completes within seconds. When you use a search engine, you rely on its ability to return the websites that provide you with updated, accurate content.

Did you know some countries ban websites or edit the content that can be displayed?

Google Search is partially blocked in China, and requests from the mainland to Google Search, including Google.com and Google.cn, are automatically redirected to Google.com.hk, the company’s Hong Kong servers. Depending on what you search for, the results may or may not be censored. Searching in Chinese for sensitive keywords—Dalai Lama, Falun Gong, Tiananmen Square incident, etc.—will likely turn up an error page. This is a result of keyword filtering by the Great Firewall, China’s nationwide Internet censorship system. More benign searches may return results normally, but whether links are accessible depends on their individual standing with Chinese authorities.

Although the Internet and WWW have connected the world, there are still problems with sharing information.

o you agree with a country's right to block websites or censor keywords for search results?

COLLABORATION INSIDE THE ORGANIZATION

Collaboration system – Tools that support the work of teams or groups by facilitating the sharing and flow of information

Collective intelligence – Collaborating and tapping into the core knowledge of all employees, partners, and customers

Knowledge management - Involves capturing, classifying, evaluating, retrieving, and sharing information assets in a way that provides context for effective decisions and actions

Collaboration system – set of tools that supports the work of teams or groups by facilitating the sharing and flow of information

Collective intelligence - Collaborating and tapping into the core knowledge of all employees, partners, and customers.

Knowledge management - Involves capturing, classifying, evaluating, retrieving, and sharing information assets in a way that provides context for effective decisions and actions. –

Knowledge management system - Supports the capturing, organization, and dissemination of knowledge (i.e., know-how) throughout an organization

Why is knowledge one of the real competitive advantages?

It is difficult to duplicate knowledge

It can take years to acquire

It is a personal asset

What if an organization could capture all of a persons knowledge using technology?

You would no longer need that person in the organization

COLLABORATION INSIDE THE ORGANIZATION

Knowledge-based assets fall into two categories

Explicit knowledge – Consists of anything that can be documented, achieved, and codified

Tacit knowledge – Knowledge contained in people’s heads

CLASSROOM EXERCISE: QUESTION YOUR THINKING

Identify two types of explicit knowledge and tacit knowledge

Explicit knowledge – payroll information, customer address, student grades, faculty courses taught

Tacit knowledge – how to perform a process, how to perform an activity, how you feel about something

COLLABORATION OUTSIDE THE ORGANIZATION

Crowdsourcing – the wisdom of the crowd

Asynchronous communication

Synchronous communication

Asynchronous communication such as email in which the message and the response do not occur at the same time.

Synchronous communications that occur at the same time such as IM or chat.

CLASSROOM EXERCISE: BUSINESS DRIVEN START-UP: DISRUPT YOURSELF

The employment marketplace is highly competitive, and landing your dream job is typically on the top of a student's goals when graduating from college. Have you ever thought of how you can apply disruptive innovation to yourself to ensure you are the number one choice for the job? In a group, answer the following questions:

Can you target a need that is currently not being met or met well? Disruptors look for gaps where they can add value and disrupt a market.

What are your disruptive strengths? As you think about disrupting yourself, don't think just about what you do well—think about what you do well that most other people cannot do. Perhaps you have searchlight intelligence, the ability to see connections across different areas and find opportunities for new ventures.

How will you build the right skills to find your niche? You are the engine driving your future. If you want to move the world forward, you will need to be innovative, building skills in many different areas.

How will you deploy your personal disruption strategy? Disruptors do not follow a traditional career path. To be disruptive, you will need to strike out on new paths, rather than travel traditional paths.

NETWORKING COMMUNITIES WITH BUSINESS 2.0

Social media – Websites that rely on user participation and user-contributed content

Social network – An application that connects people by matching profile information

Social networking – The practice of expanding your business and/or social contacts by a personal network

Social networking analysis - Maps group contacts identifying who knows each other and who works together.

KM is not a purely technology-based concept

Organizations that implement a centralized database system, electronic message board, Web portal, or any other collaborative tool in the hope that they have established a KMS are wasting both their time and money

CLASSROOM EXERCISE: QUESTION YOUR THINKING

What types of knowledge management programs could your college pursue to help new students adapt to the college?

Effective study habits

Writing rules

Research databases

Course evaluations

Instructor resources

SOCIAL TAGGING

Tags – Specific keywords or phrases incorporated into website content for means of classification or taxonomy

Social tagging

Folksonomy

Website bookmark

Social bookmarking

Social tagging - Describes the collaborative activity of marking shared online content with keywords or tags as a way to organize it for future navigation, filtering, or search.

Folksonomy - Similar to taxonomy except that crowdsourcing determines the tags or keyword-based classification system.

Website bookmark - A locally stored URL or the address of a file or Internet page saved as a shortcut.

Social bookmarking - Allows users to share, organize, search, and manage bookmarks.

CLASSROOM EXERCISE: BUSINESS DRIVEN MIS: SOCIAL MEDIA MARKETING

One of the first things you need to determine when planning your social media marketing platform is what best suits your target market. Are you trying to reach consumers or businesses? Does a mass-market site (Facebook, Twitter, YouTube), a special interest site (such as Hello Fresh), or a professional networking site (LinkedIn) suit your offerings? Before launching a social media campaign, answer two very important questions: Where are my customers? and Where are my competitors?

How will you find out where your customers and competitors are? Once you find the answers to these two critical questions, you can then choose the social media site that best fits your needs. In a group, brainstorm different ways you can find your customers and competitors. Then list the target audience and potential social media marketing strategy for each of the following:

Facebook

YouTube

Ask your students to research the Internet to determine how tagging can impact an organization

SOCIAL TAGGING

Folksonomy for Cellular Phones

Social tagging - Describes the collaborative activity of marking shared online content with keywords or tags as a way to organize it for future navigation, filtering, or search.

Folksonomy - Similar to taxonomy except that crowdsourcing determines the tags or keyword-based classification system.

Website bookmark - A locally stored URL or the address of a file or Internet page saved as a shortcut.

Social bookmarking - Allows users to share, organize, search, and manage bookmarks.

CLASSROOM EXERCISE: USING HASHTAGS

If you have ever seen a word with a # before it in Facebook or Twitter, you have seen a hashtag. A hashtag is a keyword or phrase used to identify a topic and is preceded by a hash or pound sign (#). Hashtags provide an online audience to expand business exposure and directly engage with customers. Customers can type any search keyword in a social media site with a hashtag before the word and the search results will show all related posts. Hashtags can be used to reference promotions, observe market trends, and even provide links to helpful tips.

When you understand hashtags, you can use them to find business ideas and research potential employers. Pick a company you would like to work for and see whether you can find any related hashtags including what they are tweeting and posting. See whether you can find any information on partners and competitors. Which hashtags generate discussion or offer business insights? Check Twitter’s and Facebook’s trending topics to see whether there are any issues or insights on your career area.

BUSINESS 2.0 TOOLS FOR COLLABORATING

Blog - An online journal that allows users to post their own comments, graphics, and video.

Wiki – A type of collaborative Web page that allows users to add, remove, and change content, which can be easily organized and reorganized as required.

Mashup - A website or Web application that uses content from more than one source to create a completely new product or service.

Mashup editor - WYSIWYGs or What You See Is What You Get tools

CLASSROOM EXERCISE: PROCESS OF COLLABORATION

Collaboration is always operating through certain group processes — processes of communication, coordination, cooperation, but also information sharing.

Split students into groups, each representing one of the above areas.

Have each group make a list of the collaborative technologies differentiated by the collaboration processes they support.

These processes do not work independently of one another but are usually intermingled and determined by each other.

True collaboration tools will try to provide help for all those collaboration processes, but their main focus is mostly on one of these areas.

BLOGS

Blog – Online journal that allows users to post their own comments, graphics, and video

Microblogging

Real simple syndication

Blog – Online journal that allows users to post their own comments, graphics, and video

Microblogging - The practice of sending brief posts (140 to 200 characters) to a personal blog, either publicly or to a private group of subscribers who can read the posts as IMs or as text

Real simple syndication -A Web format used to publish frequently updated works, such as blogs, news headlines, audio, and video in a standardized format.

CLASSROOM EXERCISE: GET ON IT: START YOUR OWN BLOG

One of the best ways to get your ideas into the market is by blogging. Have any of your students ever thought of starting a blog? Now is the time and here are a few simple steps to get them started.

How to Start a Blog: There are three main steps you need to do in order to start a blog. If you follow this guide exactly, you’ll have your own blog set up in 30 minutes or less.

Choose a great blog platform (Wordpress is recommended, you can also use Tumbler, Blogger)

Choose a web host for your blog or setup a blog on your own domain

Domain: The domain is basically the URL of your website. Examples: google.com (Google.com is the domain), Facebook.com (Facebook.com is the domain). See? Simple!

Hosting: Hosting is basically the company that puts your website up on the internet so everyone else can see it. Everything will be saved on there. Think of it as a computer hard-drive on the internet where your blog will be saved.

3. Design your new blog

Useful resources for blogging: 5 Beginning Blogging Mistakes You Can Fix; Choosing a Blogging Niche; How We Communicate: FAQs for Beginning Bloggers; 7 Ways to Boost your success as a Blogger

WIKIS

Wiki – Collaborative Web page that allows users to add, remove, and change content, which can be easily organization and reorganized as required

Network effect

CLASSROOM EXERCISE: THE TOUGHEST COLLEGE TEST YOU’LL EVER TAKE

If your professor asked you today to kick your social networking habits, do you think you could do it?

Can you go without Facebook, cell phones, or the Internet for a week? For a day?

A University of Minnesota professor challenged her public relations class to go five days without media or gadgets that didn’t exist before 1984.

Out of the 43 students in the class, just a handful made it even three days without new technology.

Among those who didn’t, one student said, “My mother thought I died.” How long could you go without any social media?

What types of issues might you encounter without constant connections to your friends?

How has social media affected society? How has social media affected businesses?

MASHUPS

Mashup – Website or Web application that uses content from more than one source to create a completely new product or service

Application programming interface

Mashup editor

Application programming interface (API) - A set of routines, protocols, and tools for building software applications.

Mashup editor - WYSIWYGs or What You See Is What You Get tools

A Web mashup is a website or web application that uses content from more than one source to create a completely new service. The term is typically used in the context of music; putting Jay-Z lyrics over a Radiohead song makes something old become new. The Web version of a mashup allows users to mix map data, photos, video, news feeds, blog entries and so on.

Content used in mashups is typically sourced from an application programming interface (API), which is a set of routines, protocols, and tools for building software applications.

Mashup editors are WSYIWYGs (What You See Is What You Get) for mashups. They provide a visual interface to build a mashup, often allowing the user to drag and drop data points into a Web application

CLASSROOM EXERCISE: START A MASHUP WEBSITE

Review the following mashups – including one of the most famous – Zillow (a mashup of Google Maps and the housing database)

Zillow: Millions of homes listed for sale helping to disintermediate the relator

1001 Secret Fishing Holes: Over a thousand fishing spots in national parks, wildlife refuges, lakes, campgrounds, historic trails etc. (Google Maps API).

25 Best Companies to Work For: Map of the 100 best U.S. companies to work for as rated by Fortune magazine. (Google Maps API).

Album Covers: Uses the Amazon API and an Ajax-style user interface to retrieve CD/DVD covers from the Amazon catalog (Amazon eCommerce API).

Gawker: A handy mashup for keeping up with celebrity sightings in New York City. Readers are encouraged to e-mail as soon as the celeb is spotted (Google Maps API).

The Hype Machine: Combines blog posts from a set of curated music blogs with Amazon sales data and upcoming events. The Hype Machine tracks songs and discussion posted on the best blogs about music. It integrates with iTunes to take customers right from the Web page to the track they are interested in. If the customer prefers buying through Amazon, The Hype Machine figures out what CD page to display.

If you could create a mashup – what would it be? What two websites would you use to collectively gather and use their unique intelligence.

WEB 3.0

Deep web - The large part of the Internet that is inaccessible to conventional search engines.

Dark web - The portion of the Internet that is intentionally hidden from search engines, uses masked IP addresses, and is accessible only with a special web browser

The deep web, sometimes called the invisible web, is the large part of the Internet that is inaccessible to conventional search engines. Deep web content includes email messages, chat messages, private content on social media sites, electronic bank statements, electronic health records, and other content that is accessible over the Internet but is not crawled and indexed by search engines such as Google, Yahoo, or Bing.

The term deep web was coined by BrightPlanet in a 2001 white paper entitled "The Deep Web: Surfacing Hidden Value" and is often confused in the media with the term dark web. The dark web is the portion of the Internet that is intentionally hidden from search engines, uses masked IP addresses, and is accessible only with a special web browser. The key takeaway here is that the dark web is part of the deep web.

CLASSROOM EXERCISE: BUSINESS DRIVEN DEBATE: THE DISRUPTION DEBATE

Clayton Christensen's theory of disruptive innovation has been a powerful tool for predicting which industry entrants would succeed and which would fail. However, many believe the "disruptive" label has often been applied incorrectly, simply because a newcomer shakes up a market.

For example, Zipcar qualifies as a disruptive innovation as it launched a market for cars rented by the hour.

However, Uber is not classified as disruptive because it neither offered a low-end service nor created a new market. Uber is basically a taxi service, and it not considered a disruptive innovation.

Do you agree or disagree with the assessment that Zipcar is disruptive innovation and Uber is not?

WEB 3.0

Web 3.0 – Based on “intelligent” Web applications using natural language processing, machine-based learning and reasoning, and intelligence applications

Semantic Web – A component of Web 2.0 that describes things in a way that computers can understand

CLASSROOM EXERCISE: QUESTION YOUR THINKING

In addition to the classic “Web of documents” W3C is helping to build a technology stack to support a “Web of data,” the sort of data you find in databases. The ultimate goal of the Web of data is to enable computers to do more useful work and to develop systems that can support trusted interactions over the network. The term “Semantic Web” refers to W3C’s vision of the Web of linked data. Semantic Web technologies enable people to create data stores on the Web, build vocabularies, and write rules for handling data. Linked data are empowered by technologies such as RDF, SPARQL, OWL, and SKOS.

Ask your students to review the W3C website (https://www.w3.org/standards/semanticweb/ ) that provides an overview of the semantic web including the following areas:

Linked data

Vocabularies

Query

Inference

Vertical applications

How will each area impact business?

What is the most important area?

What is the least important area?

Which area has the greatest potential to disrupt business?

Learning outcome review

Now that you have finished the chapter please review the learning outcomes in your text

Be sure to review the learning outcomes included in the end-of-chapter material