Week 6 - Digital Markets

Read or listen to the podcast on Managing the Digital Enterprise on digital markets, then answer the questions about an online shopping experience you have had. There are three questions to answer.

Question 1

a) What experiences have you had with shopping online?

I have had many experiences with shopping online, I have purchased clothing, DVDs, phone accessories and much more.

b) Describe a good experience.

I recently went to purchase a present for a work mate through an Australian seller on eBay, only to find that I did not have enough money in my PayPal at the time and would have to wait 3 - 5 business days for the payment to clear. This was a problem because I needed the product within two days, I contacted the seller and told them my issue. The seller expressed posted the product for me and was trusting enough to do so prior to my payment clearing.

c) What did you like about the online store you used?

eBay is always a really good site for online shopping as it has many products from around the world, includes customer feed back and has many options when it comes to finding and paying for products.

d) Describe a bad experience.

Two weeks ago I purchased a jumper online from Dotti, the purchase was simple however when I checked out I had the option of standard post or express post. It showed that express post was a cost of $9.95 and did not show a price for standard post I selected standard post then continued to make my purchase, upon payment I found that standard post was $7.95, so I ended choosing express post.

e) What problems did you have with the online store?

The price of standard post was not specified when asking what post type you would like.

f) What features make an online store more appealing?

Professional look, appealing design and easy to access and use.

g) What features make an online store less appealing?

Pop-up ads, messy/ unprofessional design and difficult to use.

h) Should we expect to see the prices of goods and services rise or fall due to the migration of consumers online?

To accommodate for the shift to online shopping I think the prices of goods and services will have to drop to stay competitive.

Question 2

I have included an additional reading from MIT (Understanding Digital Markets). After reading it please discuss the following statements and indicate if you agree with them or not. Please note there may not be a right or wrong answer.

a) The dispersion of prices (that is, the spread between the lowest and highest price for a particular product) will narrow.

I believe this statement to be true, because information is so easy to access people will be able to compare prices quickly and without any trouble.

b) The importance of brand names will decrease.

I believe that the importance of brand names will decrease, because access to brand name products will become so easy that the significance of brand names will diminish. 

c) Price competition will make all products cheaper.

Yes, I believe all markets will become more competitive and as a result products will become cheaper.

d) Digital markets will become dominated by a handful 

of mega-sites, like Amazon.com.

I believe this to be untrue, digital markets will become so common that it will be hard to dominate.

e) How do you think the balance of power between buyer’s and seller’s will change?

I think buyers will have all the power because they have so much choice.

f) Prices are clustered online.

All prices will be similar for similar products, so they can be competitive.

g) Online prices are elastic. ( i.e. immune to change up and down with demand)

Online prices are inelastic because the demand and supply effects the prices.

h) Online prices are generally transparent (the extent to which prices for a given product or service are known by buyers in the marketplace.).

This is true, because prices are easily compared.

Question 3

a) What types of m-commerce services does your cell phone provider offer?

• Internet Banking
• Apps
• Internet
• Mobile Ticketing
• Mobile Entertainment
• Mobile Sales
• Mobile Marketing
• Mobile Payments

b) Which of these services do you use?

All of the above

c) What types of transactions do you perform through your cell phone or other wireless device?

• Banking
• Music/ App Download
• Online Shopping

d) What types of transactions would you like to perform, but are currently unable to?

I am currently happy with all the transaction I am able to perform on my mobile device.

e) What is your opinion of wireless advertising/mobile marketing?

It is inconvenient when it appears whilst I am using an app.

Reference:

Business Driven Information Systems 2nd Edition (Baltzan, Lynch and Blakey)

Week 5 - Business Models

There are nine types of business models and below are examples of each:

Brokerage

- bring buyers and sellers together

- facilitate transactions

- charges a fee for each transaction
Example: PayPal is an example of brokerage, it brings the buyer to the seller and makes for easier transactions.

Advertising

- provides visual content in the form of banner ads

- banner ads are a major source of revenue

- works better with larger volumes of traffic

Example: Gumtree it is an on line buy/swap/sell site which requires you to become a member and may charge a fee for the content that you upload.


Infomediary

- collects data on consumers and their habits and trends

- assist buyers and sellers to understand the market

- allows an advantage to buyers and sellers

Example: Pop up ads/banners that appear when you go on certain websites.

Merchant

- concerns wholesalers and retailers of their goods and services

- Sales are based on price lists or through auctions.

Example: A store that operates solely on the internet, such as the iTunes store.

Manufacturer (Direct)

- allows manufacturer to reach buyers directly

- compresses the distribution channel

- more efficient, better customer service and a better understanding of customer preference.

Example: Renting movies on line through the iTunes store, in agency with the 'Terms & Conditions".


Affiliate

- provides purchase opportunities to when ever a potential buyer is on the web

- offers financial incentives to partner sites

- It is a pay-for-performance model

Example: On line book stores that are linked with amazon.com and share a percentage of the sales.


Community
- based on user loyalty and the time they spend

- revenue can be based on voluntary contribution or based on the sales of ancillary products and services.

- more fertile area of development

Example: Wikipedia is open globally to the content and opinion of others.


Subscription

- users are charged a periodic fee to subscribe to the service

- combining free content with premium membership

- costs are irrespective of actual usage rates

Example: Magazines such as Dolly or Cleo who charge a monthly subscription to access there content on line.


Utility

- 'pay as you go' approach

- charges customers for active connection minutes

- based on actual usage rates

Example: Water rates, customers are charged by the amount they use.

http://ebusinessfundamentalsbrandon.blogspot.com.au/2013/04/topic-5-business-models.html


1) What is the Mobile phone use /100 population - compare Australia, USA, China, India, Your Country

Australia ranks 70 out of 142, America 88, China 113, India 117.

2) Internet use / 100 population - compare Australia, USA, China, India, Your Country

Australia ranks 19 out of 142, America 22, China 76, India 124.

http://mobithinking.com/mobile-marketing-tools/latest-mobile-stats/a#topmobilemarkets

Week 4 - Digital Design

Questions
 
1. In two paragraphs explain why a customer centric Web site design is so important, yet so difficult to accomplish
 
Customer Centric - A strategy in which store designs and layouts, merchandising activity, product selection and/or marketing initiatives are developed to meet the needs of specific consumer groups.
http://www.popdesign.com/glossary?letter=c

A customer centric website design is very important, as this is what creates appeal for certain customer groups. If a customer doesn't like what they see on a particular website or does not find the site easy to use then they are unlikely to keep using that site. This means that the site has to address the needs of the consumer, by using appropriate design.
 
Achieving a customer centric website design is very difficult, mainly because every customer is different. The design of a website may seem fantastic to one customer, but may seem terrible to the next. Website designers need to decide whether the want to target a niche client group or whether they want to focus on a broad range of customers, so that they can decide on their website design.

2. Define the term ‘presence’. Write an additional paragraph that describes why firms that do business on the Web should be more concerned about presence than firms that operate in the physical world.

Presence - The state or the fact of being present, as with others or in a place. 
http://dictionary.reference.com/browse/presence?s=t

Firms that do business on the web should be more concerned about presence then firms that operate in the physical world because on the web people have access to an endless supply of resources. In the physical world of business people are limited to proximity and availability, whereas on the web if people don't like what they see they will just keep searching. Therefore online business need to obtain a strong presence so that they can be found and not overlooked.



 3. *Usable Doesn’t Have To Mean Ugly ‘for a web design to be truly beautiful, it has to be functional, have purpose and contribute in some way to the website’s intuitiveness, usefulness and branding. All of these things contribute to the overall effect of a design’. This is a quote from one of the articles on web design linked on Web pages that suck. Find a web page that ‘does not suck’ and discuss the features that make it work.

boohoo.com is a site that I use regularly, it is an online clothing and accessory store based in the UK. I think it's a good website as it is easy to navigate and use and the design is appealing to the target audience, which I believe to be men and women aged between 16 and 25. The site advertises on TV in Australia and also offers free postage and student discounts. The free postage is great as lots of people wont buy a product online if the postage is too expensive, and the student discount is another appeal factor to there target consumers.

 

http://www.boohoo.com/aus/page/home/

Week 3 - Security and Privacy

Question 1 -
See if you can find an example of a privacy breach that was reported in the Australian or international news in the last 6 months. What were the Consequences? i.e. legal, political, financial, personal, etc. What action was taken in response to the privacy breach?

In October 2013 an Australian Post computer glitch exposed the names of thousands of Australians that have been sent parcels. A customer found that when entering a random number into the online parcel tracking system they were given details of thousands of customers. The consequences were personal as it was customers’ personal information that was exposed. Australia post was forced to shut down its electronic tracking service temporarily due to the bungle.

http://www.heraldsun.com.au/news/national/australia-post-in-online-privacy-breach/story-fndo45r1-1226498834454

Question 2 (Exercise) Most Ambient Intelligence (AmI) scenarios illustrate its benefits. The dark scenarios, developed by the SWAMI (Safeguards in a World of Ambient Intelligence) project, are different as they point out the risks that must be mediated if AMI is to be a future success story. The scenario we present here hinges on the theft of data from a multinational company. The company suffers from the illusion of security—that is, the belief it has implemented more than adequate security measures— only to discover it has not. Consider the following case (below) then - Complete a comprehensive analysis of the facts and issues in the case. Some questions to consider -

What AmI technologies are identified in the case?

Legislation constraints are irrelevant as the have merged with other companies to access the information. Information from thousands of individuals is collected then sold back to them.

What drives DMC’s officers to take the actions they took?

Possible financial loss is what drove the DMC officers to take the action they did to find these employees. The theft of the information had the capability of ruining the reputation of DMC, resulting in extreme financial loss. DMC is the clear market leader in the aggregation of AmI data.

Are there any comparisons you can make to technology companies today?

I tried searching Aml data mining however I could not find much information. DMC is clearly a driving force in this industry, but due to the increased use of digital technology I believe that there would be many data mining companies around.

How realistic is the description of governments using the technology and prohibiting immigration from states with no AmI data aggregation information?

 I don’t believe that it is realistic to prohibit immigration from states without Aml; however I do understand that it would be a very useful tool while processing immigrants as it would allow you access to more personal information.

What would be the impact of this digital divide?

 Digital divide refers to the gap or imbalance that exists between those who have access to Information and Communications Technology and also to the unequal access of resources. The digital divide can exist between those living in rural areas and those living in urban areas, between the educated and uneducated, between economic classes, and on a global scale between more and less industrially developed nations.

This digital divide will ruin the reputation on DMC and have devastating effects on their stance in the stock market.

http://www.caricomict4d.org/ict-for-development-topics-mainmenu-132/digital-divide-mainmenu-175/69-definition-of-digital-divide.html

List some of the ‘unintended consequences’ described in the case.

The company is forced to make improvements in their security system.

The publicity of the event made the general public aware of Aml.

Do members of the class all agree on the issues raised by this case? What were the main points of difference (if any) in discussions?

The DMC officers looked into the personal information of the three employees involved in the theft of the data. They tried to track them through personal tracking devices and watched their houses for movement, as well as look through large amounts of security footage to try and find them.

I personally disagree with the action that the DMC officers took, the theft of the data was a security risk not only to the company but also to the general public, and I therefore believe that DMC should have contacted the authorities as soon as they were made aware of the security breach

Week 2 - Navigating the Web

Part 1 – Navigation – One of the biggest challenges for businesses and customers alike is navigating the Internet. This week please answer the following questions on your blog -1) listen to the podcast on Navigation which can be found on the Digital Enterprise Page (Google – the digital enterprise).

a) What are the four (4) main points Michael Rappa makes about search? Please write them on your blog page.

·       The amount of data that is being generated daily is growing rapidly; this is presenting not only new opportunities but also new problems. Many data files are being added daily and are rarely removed for anything other than business purposes.

·       It is becoming more and more common for businesses to advertise through search engines, due to the vast use of digital technology this is a vital way for them to be seen.

·       Due to the huge amount of data on the internet searches return many results. Search engines are constantly assessed to allow searching to be more users friendly.

·       Picking and choosing the right key language is very important for both searching for web pages and for a web page to be found.

b) Watch or read the Marissa Mayer interview. Marissa says ‘search is in its infancy’. Do you agree or disagree with this statement? What is your personal experience with search? There are no right or wrong answers here, I just want your opinion.

I agree with Marissa’s statement ‘search is in its infancy’, technology is progressing rapidly and this will only create more and more opportunities to advance the way that we currently search the internet. I believed that the increased use of portable digital technology, such as smart phones and tablets will play a major role in this advance.

 

Part 2 – History of the internet

2) Please watch the Bill Joy video, and it will give you a good background to the Internet and particularly to the emergence of the World Wide Web.

From the video – answer (on your blog page) -

a)   So what are the 6 webs?

1. The near web: Internet you see

2. The here web: Internet that’s always with you e.g. via mobile phone

3. The far web: Internet you see when you sit back from a big screen e.g. TV, kiosk

4. The weird web: Internet you access with your voice. E.g. Request in our car, your phone, camera etc. He questions whether it fully exists yet.

5. B2B: Internet that doesn’t possess a consumer interface. Business machines talk to other business machines.

6. D2D: Internet of sensors deployed in meshes networks, adjusting urban systems for maximum efficiency. Also may not fully exist.

 

http://www.technologyreview.com/view/404694/etc-bill-joys-six-webs/

b)   Could there be more?

As stated by Marissa Mayer ‘search is in its infancy’ I believe this statement to be true also about the web in general. I believe that constant advancing in the internet will lead to many new opportunities and this may result in the ‘6 webs’ becoming the ‘7 webs’ or possibly more.

c)   What does it mean for business?

The use of search engines is of great benefit to many businesses as it allows them to be more easily found, however for retail businesses such as clothing stores, electronic stores, etc. it may result in increased competition from other local stores as well as online stores.

 

 

PENA

Question - Part B PENA

9. My experience completing the PENA quiz was positive, the questions were straight to the point and well worded.

10. I beleive the PENA quiz was presented really well, my only comment would be to modernize the appearance slightly as it looked quite dated.

Week 1 - Intorduction to eBusiness

Questions Part A

1. Internet risks – give examples of four things that can go wrong with a transactional site?

There can be many risk involved when it comes to using transactional websites, these risks include:

·       You may buy an item from a website but the item may never arrive, this may be due to the website being fraudulent.

·       A transactional site may be untrustworthy and as a result misuse your credit card details or allow access for others to misuse your credit card details.

·       The transactional website you’re using may be trustworthy; however it may not be secure, allowing others to gain access to your transaction details.

·       The website may be unreliable. This could result in slow postage, damaged products or difficulties obtaining a refund or exchange where necessary.

 

2) Write down a definition for each:

a) E-commerce: E-commerce occurs when a customer purchases a product electronically rather than just face to face cash in hand. Without E-business you wouldn't have E-commerce because you need a business and products to be able to sell products electronically.

http://grouch18.blogspot.com.au/2009/03/week-1-questions-and-answers.html

b) E-business: E-business is when a company or person advertises their business electronically and allows users to get details of their business from the comfort of their home or in some cases browse for items online.

http://grouch18.blogspot.com.au/2009/03/week-1-questions-and-answers.html

3) What is the difference between buy side and sell side ecommerce?

 

Buy-side e-commerce refers to transactions to buy/procure resources needed by a business from its suppliers and the difference is that sell-side e-commerce is the transactions that are involved with selling products to businesses customers

http://blogger-tom-mc.blogspot.com.au/2011/03/what-is-difference-between-buy-side-and.html

4) Describe the different types of eBusiness

·        B2B (Business to Business): A transaction that occurs between two companies, as opposed to a transaction involving a consumer. The term may also describe a company that provides goods or services for another company.

·        B2C (Business to Consumer): A transaction that occurs between a company and a consumer. The term may also describe a company that provides goods or services for consumers.

·        B2G (Business to Government): Feedback to government businesses and NGO's.

·        C2B (Consumer to Business): Means through which consumers decide what they want to pay, and the vendors decide whether or not to accept.

·        C2C (Consumer to Consumer): Means through which consumers interact with other consumers through, for example, online auctions.

·        C2G (Consumer to Government): Feedback to government through pressure group or individual sites.

·        G2B (Government to Business): Refers to a government agency communicating with or purchasing products or services from a business.

·        G2C (Government to Consumer): The communication link between a government and private individuals or residents.

·        G2G (Government to Government): is the electronic sharing of data and/or information systems between government agencies, departments or organizations. The goal of G2G is to support e-government initiatives by improving communication, data access and data sharing. http://watsmynameuh.blogspot.com.au/2011/03/topic-1-questions-introduction-to-e.html

 

5) Which digital technology has the highest penetration rate? Explain and source your answer.

The number of mainstream technologies that are affordable and accessible is increasing, helping people to access information on the internet not just in their homes but in any location through portable devices. I believe that smart phones would have the highest penetration rate when it comes to digital technology, as they are so readily available and due to advancing technology they are becoming more affordable. They are also reasonable easy to use and they allow you access to an abundance of resources.

http://www.mediaaccess.org.au/digital-technology

 

6) List::Four drivers to adoption of sell-side e-commerce by business.

Sell side e-commerce refers to transactions between a supplier and its customers. Drivers of the adoption of sell-side e-commerce by businesses include;

·       New sales leads including the introduction to new markets and new customers, and repeat selling and cross selling to existing customers.

·       Reduced marketing costs by spending less time in face-to-face customer service, completing sales online, and completing marketing online (meaning that printing and distribution costs diminish).

·       Decreased supply change costs due to reduced levels of inventory, increased competition from suppliers and shorter cycle time in ordering.

·       Administrative cost reductions from more efficient routine business processes such as recruitment, invoice payment and holiday authorization.

http://e-busfun.blogspot.com.au/2011/03/topic-1-introduction-to-e-business.html

7) Four barriers to adoption of sell-side e-commerce by business.

·        Identification of products or services can be tricky due to poor quality content which includes descriptions and images as well as poor searching capabilities.

·        Cultural barriers which includes internet accessibility and language barriers.

·        Customers fear of change. Some customer would be more inclined to use the internet as a way to purchase goods and services as opposed to others. Therefore the customer base could be reduced by the adoption of sell side E-Commerce however this could depend on the target market.

·        Lack of technical competency. The customer might not have technical knowledge or understanding to use the online store

http://watsmynameuh.blogspot.com.au/2011/03/topic-1-questions-introduction-to-e.html

 

8) What are some examples of Digital information?

Digital information is anything the portrays information in a digital format such as:

·       Photos

·       Music

·       Video