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What are Internet Business models? Give examples of them. Outline how they might be used and their limitations.

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Introduction

What are Internet Business models. Give examples of them. Outline how they might be used and their limitations. The Internet can help companies create and capture profit in new ways by adding extra value to existing products and services or by providing the foundation for new products and services. The Internet Business models are abstraction of what and how the enterprise delivers product or service, showing how the enterprise creates wealth by taking advantages of the Internet's rich communication capabilities. They provide the customer with a new product or service; they provide additional information or service along with a traditional product or service, or they provide a product or service at a much lower cost than traditional means. The most important Internet Business models that have emerged include: Virtual storefront. It sells physical goods or services on-line instead of through a physical storefront or retail outlet. Examples are Amazon.com, WingspanBank.com Marketplace concentrator. It concentrates information about products and services from multiple providers at one central point. Examples are ShopNow.com, InsureMareket On-line exchange. It is a bid-ask system where multiple buyers can purchase from multiple sellers. Examples are Asia Capacity Exchange, E-Steel. Information broker. It provides product, pricing, and availability information. Example is PartNet. Transaction broker. It enables buyers to view rates and terms from various sources. Example is E*TRADE. Auction. It provides electronic clearinghouse for products where price and availability are constantly changing, in response to customer demand. Examples are eBay, Ubid. Reverse auction. It enables consumers to submit a bid to multiple seller s to buy goods or services at a buyer-specified price. Example is Priceline.com. Aggregator. It enables groups of people who want to purchase a particular product sigh up and then seek a volume discount from vendors. Example is MobShop.com. Digital product delivery. It sells are delivers software, multimedia, and other digital products over the Internet. Examples are Regards.com, PhotoDisc. Content provider. It creates value through providing client for a fee, and advertising. Examples are Salon.com, TheStreet.com. On-line service provider. ...read more.

Middle

(2) Costs and benefits do not occur in the same time frame-costs tend to be upfront and tangible, whereas benefits tend to be back loaded and intangible.(4) Inflation may affect costs and benefits differently. (4) Technology-especially information technology-can change during the course of the project, causing estimates to vary greatly. (5) Intangible benefits are difficult to qualify. These factors wreak havoc with financial models. Investment in information system technology requires special consideration in financial modeling. Capital budgeting historically concerned itself with manufacturing equipment and other long-term investments such as electrical generating facilities and telephone networks. These investments had expected lives of more than 1 year and up to 25 years. (6)However, information systems differ from manufacturing systems in that their expected life is shorter. The very high rate of technological change in computer-based information systems means that most systems are seriously out of date in 5 to 8 years. The high rate of technological obsolescence in budgeting for systems means simply that the payback period must be shorter and the rates of return higher than typical capital projects with much longer useful lives. The bottom line with financial models is to use them cautiously and to put the results into a broader context of business analysis. (ii) What are "intangible benefits?" Identify five intangible benefits when applied to information systems. Intangible benefits are benefits that are not easily and immediately quantified but may lead to quantifiable gains in the long run; they include more efficient customer service or enhanced decision making. Five intangible benefits include improved asset utilization, improved organizational planning, more timely information, increased job satisfaction and better corporate image. Outline the (i) key technologies for Internet security; (ii) levels of Internet access to database. (i) What is WAP technology and what is its potential for creating new business? Wireless Application Protocol (WAP) is a system of protocols and technologies that lets cell phones and other wireless devices with tiny displays, low bandwidth connections, and minimal memory access Web-based information and services. ...read more.

Conclusion

The request is passed to a WAP gateway, which retrieves the information from an Internet server in either standard HTML format or WML. The gateway translates HTML content back into WML so that it can be received by the WAP client. WAP supports most wireless network standards and operating systems for handheld computing devices such as PalmOS and Windows CE. Name six applications that are important for electronic Business. Financial and Accounting It includes general ledger reporting, project costing, annual reports and budgeting. Intranets can be very valuable for finance and accounting, because they can provide an integrated view of financial and accounting information on-line in an easy-to-use format. Human Resources Human resources can use intranet for on-line publishing of corporate policy manuals, job postings and internal job transfers, company telephone directories and training classes. Employees can use an intranet to enroll in healthcare, employee savings and other benefit plans. Human resource departments can rapidly deliver information about updating events or company developments to employees using electronic bulletin boards or e-mail. Sales and Marketing Oversee and coordinate the activities of the sales force. Make sales contacts. Sales staff can dial in for updates on pricing, promotions, rebates, or customers or to obtain information about competitors. They can access presentations and sales documents and customize them for customers. Manufacturing and Production Intranets coordinating the flow of information between lathes, controllers, inventory systems, and other components of a production system can make manufacturing information more accessible to different parts of the organization, increasing precision and lowering costs. The applications include quality measurement, maintenance schedules, design specifications, machine output, order tracking, etc. Digital Information Services Powerful and far-reaching digital information services enable networked PC and workstation users to obtain information from outside the firm instantly without leaving their desks. Commercial service provides desired mix. Distance Learning Distance learning is education or training delivered over a distance to individuals in one or more locations. It can be accomplished with print-based materials and based on information technology, including teleconferencing or interactive multimedia, including the Web sites. ...read more.

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