Business Information System (Chapter 5)

BIS Chapter 5

E Business Models

1.        Identify the type of e-business model eBay is using and explain why it has been so successful?


      eBay began in the C2C space, using the brokerage value model and collecting transaction fees in consumer-to-consumer auctions

·         Rapid user growth created community, content, and search value streams, which in turn created the critical mass for substantial advertising revenue. 

·         B2B followed by offering the Small Business Exchange.

·         In addition, there is nothing that would prevent eBay from licensing its technology in the B2B space, for industry-specific auctions.

·         eBay could potentially expand into the B2C space, providing firms the option of auctioning merchandise directly to consumers using the eBay infrastructure.

·         Finally, while this would be the greatest stretch for eBay, it could choose to move into the C2B space, allowing consumers to “name their own price” for merchandise and services

2.      Other major Web sites, like Amazon.com and Yahoo!, have entered the e-marketplace with far less success than eBay. How has eBay maintained its dominant position?

·         eBay's first-mover advantage allowed it to dominate the online auction space. 

·         eBay also has an excellent reputation for superior customer service. 

·         Two priorities dominate eBay's operational strategy: keeping its buyer/seller community happy, and keeping its massive Web site up and running.  Consumers flock there because of the great product selection.  The result is a juggernaut that has vanquished latecomers, such as Yahoo! Auctions and Amazon Auctions.  Both of those operations are still in business, but they have reduced expectations and make relatively small contributions to their parent companies' balance sheets.

3.      What are the three different types of online auctions and which one is eBay using?

·         Electronic auction - sellers and buyers solicit consecutive bids from each other and prices are determined dynamically.

·         Forward auction - auction that sellers use as a selling channel to many buyers and the highest bid wins.

·         Reverse auction - an auction that buyers use to purchase a product or service, selecting the seller with the lowest bid.

·         eBay provides a forward auction where the highest bid wins.

4.      What is the buying and selling of goods and services over the Internet?

E-commerce

5.      What applies to businesses buying from and selling to each other over the Internet?

B2B

6.      The Five (5) Functional Information Systems as discussed in the text are?

·         Finance

·         Human Resource Management

·         Marketing

·         Production

·         Accounting

7.      Human Resource Management Systems are designed to support the development of employees, to help the employees reach their full potential

8.      The advantages of Google Checkout include:

·         Catch the attention of more customers: Shoppers who see the Google Checkout Badge on your AdWords advertisements will be able to find you easily while they are searching and this will generate more leads for you.

·         Convert more leads into sales: The Checkout buying process offers speed and security. This will encourage more customers to buy from your website and you will be able to convert more leads into sales.

·         Free processing: You can process $10,000 of sales for free for every $1,000 you spend on AdWords. If the sales exceed this amount, or if you don't use AdWords, your sales will be processed for as little as 2% plus $0.20 per transaction.

·         Fraud Protection: Google's payment guarantee policy provides protection from chargebacks and the fraud prevention tools prevent invalid orders from reaching you.

9.      Google Checkout has lots advantages but it could be improved by:

·         Allowing easy transfer of money between your Google Checkout Account and your Bank Account.  Currently this process has many steps

·         Google Checkout is only limited to accepting Credit Cards and Debit Cards for payment, to help improve the product they could also allow payment when using PrePaid Cash Cards / Gift Cards, Online Banking, and eChecks.

10.   A Human Resource Management system could help add Business Value with the following scenarios.

1. HR Staff have to produce weekly pay checks and pay roll reports
2. HR Staff work to identify potential employees
3. HR Staff organise employee training