Why the Internet and E-Business Make Sense in the 21st Century - Essay Example

Internet and e-business Name Instructor Date Table of Contents Table of Contents 2 Introduction 3 Task 1 4 1.1 Describe the environment in which e-business is conducted and business transaction types. 4 1.2 Benefits and barriers to OBC’s e-business 6 Benefits of e-businesses 6 Barriers of e-business: 8 1.3 Security and legislative issues facing OBC’s online business 8 Security Issues 8 Legislative Issues: 9 1.4 Modes of communication OBC is likely to use 10 Task 2 11 2.1. The internet technologies and their significance to OBC in ensuring successful e-business 11 2.2 Important HTML features 12 2.3 The functions of client servers and browsers and the role of the search engine to OBC’s online presence 13 2.4. The use of intranets and extranets by OBC 15 Task 3 16 3.1. Various e-business models for generating business revenue for OBC 16 3.2. Analyze each model in terms of its capacity to generate revenue, relative to appropriateness to OBC 17 3.3. Advice to OBC management on future developments of the e-business models 18 Task 4 18 4.1. Advice to OBC on vital elements that characterise a good web design structure 18 4.2. Impacts of an effectively designed website to OBC’s e-business 18 4.3. Advice to OBC management on issues concerning website usability 19 Conclusion 19 References 21 Introduction E-business refers to application of information and communication technologies to carry out varied business activities online (Holsapple 2013). The management of Oxenford Business College (OBC) seeks to understand how they can leverage e-business to innovate their business. Therefore, this report explores the issues pertaining to the use of the internet and e-business. The first section examines the e-business environment, and the types of business transactions currently at play on the internet, before exploring the potential benefits and barriers that OBC would expect to encounter once it launches an e-business venture. The pertinent security and legislation issues OBC may encounter are also explored. Also discussed include the modes of communication OBC may need to use. The second section examines the internet technologies and their significance to OBC in ensuring successful e-business. Also explored at this point include the important features of HTML and the functions of client servers and browsers, as well as the role of the search engines to OBC’s online presence. The manner in which client-server facilitates the sharing of functions among clients’ computers and the server alongside its key functions are as well examined. The second section also features the use of intranets and extranets by OBC, particularly how networks enable OBC to share information externally, through the extranet network, and internally, through the intranet network. In the third section, the various e-business models for generating business revenue for OBC are examined, in addition to how each of these models generate revenue, and their appropriateness to OBC. Lastly, a statement of advice is made to the OBC management on future developments of the e-business models. In section 4, a statement of advice is issued to the OBC management on the vital elements that characterise a good web design structure. The impacts of an effectively designed website to OBC’s e-business and another statement of advice to OBC management on issues concerning website usability are also presented. Task 1 1.1 Describe the environment in which e-business is conducted and business transaction types. E-business describes the application of information and communication technologies to carry out varied business activities. The e-Business environment consists of the greater business context, also known as the macro environment, comprising social, technological, political and economic components, as well as the virtual environment, such as the markets, industry and business. It is made up of the dimensions beyond the control of an online business yet influences it in some way. As Chen and Holsapple (2013) view it, e-business is essentially performed in three different environments: the competitive environment, technology environment and lastly the general environment. The competitive environment is the environment of the industry, and comes about from the e-business organisation’s relationships with other businesses, customers, suppliers, competitors or business partners. The technology environment consists of the technologies affecting the e-business, and ,which are beyond its control. For instance, disruptive technologies may create new approaches for performing work cost-effectively and efficiently. Examples include Nanotechnology, Human-Machine Interaction, Optical Computing, and the internet. Lastly, the general environment consists of factors, such as laws and regulations, availability of labour force, and economic conditions. For instance, the new laws and regulations may affect an e-business, particularly in the areas of privacy of the customers, intellectual property and patents. Regarding availability of labour, e-businesses that operate in countries with readily available qualified employees would find it easy growing from being a startup company into a small or medium sized enterprise (SME), as the e-businesses have developers to innovate new products that can appeal to the new market. Business transaction types The various forms of transaction types include: Business-to-consumer (B2C), Consumer-to-business (C2B), Consumer-to-consumer (C2C), and Business-to-business (B2B). B2B refers to a special business transaction type that involves businesses. It may happen between a retailer and wholesaler or wholesaler and a manufacturer. An example involves a scenario where automobile manufacturers are involved in several B2B transactions such as buying car tires from tire manufacturers, or windscreens from glassmakers for the vehicles under production. This happens when the transactions are undertaken via the internet. The B2C describes business activities where the end customers buy goods and services from business. Therefore, it involves a situation where businesses sell commodities to customers via the internet. The C2B refers to type of e-business transaction where consumers supply products and services to business via the internet for a fee, for instance an affiliate program. The C2C consists of a business transaction where the activities are facilitated via the internet between a consumer and consumers through a third party. An example is an online auction, where consumers post goods for sale to other consumes who bid to purchase the products. A third party owns the auction and may charge a fee for linking the consumers. Overall, the most appropriate transaction type for OBC is the Business-to-consumer (B2C) transaction type, as students are the end-customers educational services from OBC, while OBC sells educational services to the students. 1.2 Benefits and barriers to OBC’s e-business The exponential rise in the use of internet for business transactions during the last two decades has opened newer avenues for businesses categories. As a result, OBC can make efforts to establish its online presences. Still, several benefits and barriers are associated with the e-business: Benefits of e-businesses E-business enables businessesto adjust to novel markets and trade to adjust their operations to the demands of new markets and take advantage of trade opportunities by increasing their sales,opportunities, which potential increase their sales revenues and profits. They also increase flexibility in the manner in which a business communicating with business partnerscommunicates with other businesses. To this end, OBC has a potential to benefit from e-business in several ways as mentioned below.. •Online presence enables global presence 24 hours a day 7 days a week, where anyone with intern et access can visit the business’ website/ OBC can therefore establish e-commerce site in order to reach target customers at any time of the day, despite the distance. In particular, e-business will enabled OBC to benefit from a wide customer reach globally. As a result, it would have greater advantage over colleges using brick-and-mortar business models. E-business will as well enable OBC cut back on operating costs linked to operating the business. It is cheaper than having to rent out a retail floor space, since e-business platform does not require physical premises. In this way, it would not have to pay the rental fee, which lowers the overhead costs (Pateli & Giaglis 2004). An additionally, e-business would also enable OBC to cut back on transaction costs. Operating an e-business minimizes the cost for each transaction since it requires minimal manpower to undertake the online transactions. When the OBC has set up its website, the customer would only need to place their order online, hence eliminating the need for a broker or salesman. Similarly, the customer payment would also go through online payment processing software, which also eliminates the tasks of a store clerk. An online business also enables cost-effective marketing. The e-business site would allow OBC to use numerous online marketing strategies like social media marketing, email marketing, e-newsletters and article marketing (Pateli & Giaglis 2004). Hence, OBC would not have to engage physical marketing strategies like use of salesmen, or newspaper ads. Since many people use the social media such as Facebook, OBC may take advantage of this by placing an advertisement on its Facebook Page. Barriers of e-business: Online business would potential exposes OBC threats linked to data security. Malicious websites are likely to amass private information from OBC’s customers, including email addresses, names, or even credit card numbers that undertake transactions that malicious web users seek to apply. Loss of sensitive customer information may injure OBC’s online reputation. Since online businesses become subject to many legal rules with a potential of being detrimental to the business, conditional on the situation. For instance, information available on the Internet, including images, texts, artwork, or even movies are protected by the copyright law. This may raise legal concerns to OBC when it uses the information without the permission of the owner (Amit & Zott 2001). The issue of lack of trust is an addition barrier. Due to the prevalence of online fraud, many targeted customers are likely to be cautious of the products sold online. This may lead to consistently low sales over the long term. OBC’s key consumers, in this case the parents, students and agents, hope to find everything they require on the internet. Hence, OBC should expect to experience more advantages operating online. OBC should continually review its advantages to sustain its competitive advantage. 1.3 Security and legislative issues facing OBC’s online business Security Issues Operating an online business would mean that OBC is exposed to various security concerns, which need to be constantly be sufficiently dealt with. Among the security risks include theft of the customers’ information stored in web “cookie” or even the sensitive financial information stored in the local disk. The risks may happen during lapses in security, including insufficient or lack of encryption in the wireless network the clients use at home. Additionally, the financial data belonging to customers may be stolen from the clients by certain malicious programs. The issue of insecurity may be aggravated by firewall problems or even in circumstances where the merchant websites are not sufficiently secured (Luhach et al 2014). Physical methods affecting data security include power supply failures, natural disasters, and corrupted disk systems. Additional strategies include using digital signatures, designed to enable the recipient of a file to confirm the authenticity and identity of the sender (Luhach et al 2014). Legislative Issues: The intellectual property laws are fundamental legislative issues e-business owners potentially face, since the e-business is essentially operable globally. In spite of attempts by the global bodies to make the intellectual property rights uniform, they still differ from one country to the other The issue of internet security has also had significant legal implications. For instance, the regulations on electronic signatures vary from country to country. In the United Kingdom for instance, the laws on electronic signatures are covered under the Electronic Communications Act 2000. Subject to the regulation, parties undertaking an online business transaction should be aware that, in the event of a dispute, the Courts are mandated to treat electronic evidence in the same manner they would treat paper evidence used in traditional paper-based transactions. The Electronic Communications Act 2000 stipulates that an electronic signature is acceptable as evidence in a court of law when it comes to proving the authenticity of the communication by drawing on the associated signatures (Luhach et al 2014). 1.4 Modes of communication OBC is likely to use Essentially, OBC’s e-business would rely on a mode of communications that is consistent with the current advances in information and community technologies. Examples include using the social media to reach out to its networks, emailing, short message service, instant messaging, and mobile phones. The selected modes of communication would facilitate convoluted discussions and conversations between OBC and its clients. Examples of pertinent social media platforms OBC may hope to reach a large target audience include Twitter and Facebook. OBC may initiate a fan page on the two social sites, to be able to communicate with its clientele. OBC may as well rely on emails and mobile phones to make contacts with the students and agents. It may initiate email accounts for students, for sending official messages. OBC may as well integrate a instant messaging software to allow the students to speedily and effortlessly pass on information to each other. An additional ideal platform includes platform such as audio and video messaging for relaying broadcast information through video streaming sites, Use of chat rooms to engage the student clients is also appropriate. These would allow OBC business representatives to engage the clients. Task 2 2.1. The internet technologies and their significance to OBC in ensuring successful e-business Internet is a general term that describes a worldwide system of computer networks that interconnect by making use of the standard Internet protocol (ISP) applications. The Internet consists of a worldwide system of interconnected computer networks that utilise the Internet protocol suite (TCP/IP) to connect an infinite number of devices from any part of the world. It could therefore be referred as a network of networks consisting of numerous interconnections of the public, businesses, private, government and academic networks of global or local scope, connected by an extensive range of wireless, optical, electronic networking technologies (Apigian et al 2005). On the other hand, the Internet consists of an extensive array of information services and resources, including interconnected hypertext applications and documents of the electronic mail, World Wide Web (WWW), peer-to-peer networks, and telephony. In the network of network, the connected computers are identified worldwide by a universally unique address called an IP address. On the other hand, a Domain Name Server (DNS) is applied to provide a name to the IP address, which an internet user relied on to locate a computer. For instance, a DNS server may resolve a name http://www.Amazon.com to an IP address to identify the computer that Amazon’s e-business website has been hosted. At the centre of these technologies are hypertexts and websites uploaded on the worldwide web or local computer networks that interact with other computers in their network. The internet makes content in OBC’s e-business site accessible to users connected to the internet globally, hence expositing OBC to many potential clients (Pateli & Giaglis 2004). In the contemporary world, internet is therefore essential a fundamental component of e-business platform. The internet contributes to the e-business success, as they create and boost relationships with clients from across the globe, increase the internal market share, promote greater user satisfaction, reduce operation and production cost of the e-business, since they do not need a physical shop or premises (Amit & Zott 2001). 2.2 Important HTML features Hyper Text Markup Language (HTML) refers to a standard mark-up language designed for use in the creation of web pages. Essentially, the HTML codes are made up of elements, which have tags enclosed in angled brackets, for instance (). The tags often happen in pairs for instance and . The initial tag in the pair is referred as the opening tag. The last pair is known as the closing tag. In turn, the web browser reads and interprets the HTML documents before it displays them as standard webpages, which can be interpreted by users. The tags aren’t display by the browser. Instead, the browser uses them for purposes of interpreting the content of the page. The HTML elements are the units that make up a website. Therefore, the entire essential features of a website, which are programmed within the HTML elements, where the web features are programmed as integrating tags, character-based data types, entity references and character references. The web features vary from paragraphs, headings, forms, frames, tables, images, and meta tags. As initially state, when the initial tag is included with an equivalent closing tags , it allows the tags to read the page’s content. Similarly, when the second tag is included with its related closing tag , the title of the page is read. Additionally, the tags together with its subsequent closing tag would specify the main body in the webpage. Lastly, the tags and

enable denote heading and paragraphs in that order. 2.3 The functions of client servers and browsers and the role of the search engine to OBC’s online presence The term “Client server” denotes a special form of relationship between two dissimilar computer programs. Usually, one of these programs (known as the client) orders for a service request from other programs (known as the server). These fulfill the requests. Such a model is crucial in network programs as it provides capable platforms based on which some computer programs at varying locations can be connected effectively. Computer transactions that use the client/server format are applicable to OBC. For instance, a student may check his account balance using his personal computer that is connected via the internet to OBC’s central server that then processes the student’s request before sending back the reply to the student. The client-server facilitates the sharing of functions among clients’ computers and the server. Its key functions include processing requests that the individual computers submit. The server afterwards processes such requests are afterwards while sending the results back to the users. Conversely, a browser puts the results the server has processed on view using a format that the clients understand. A web browser is essentially a software application used for the retrieval, presenting, and navigating information services and resources on the internet. It uses a Uniform Resource Identifier (URI/URL) to identify information resources. In addition, the hyperlinks placed on the information resource enable internet users easy navigation of the browsers associated with the information resources they wish to access. In which case, the information resources contain hyperlinks that direct users to alternative information resources. The links have a URI of a resource that users can be directed to. Once a user’s clicks a link, the browser directs to the resource link's target URI directs. Ultimately, the process brings content to the user (Kvavik 2002). Their objective is to make the information resources accessible to the internet user through hr process of retrieval. Hence, users are able to view the information on displays, or follow other links to access additional information of interest. A majority of web browsers enable the users to open many information resources simultaneously, whether through dissimilar browser windows or varied tabs within the same window. Additionally, the web browsers serve the function of displaying a list of web pages bookmarked by a user for future reference. Common examples of web browsers include Google Chrome, Internet Explorer, Firefox, Safari, and Opera. The browser also displays HTML elements using a format the clients understand. Conversely, a search engine refers to an online software program that searches for information resources on the World Wide Web using keywords, and presents results of relatable files containing the keywords. The results, known as the search results, are essentially provided based on a hierarchy, beginning with the most relevant results. The information resources consist of web pages, documents, videos, or images. The search engines may as well mine data that is accessible through databases. Example includes searching for journal articles on Google Scholar database. A typical search engine uses several processes on near real time, such as indexing, Web brawling and indexing. It also acquires the information through the process of web crawling through websites. Additionally, the "spider" scrutinizes the websites for standard filename called robots.txt. Later, it sends information back for indexing. Indexing refers to a process where words are related to their HTML-based fields and domain names in public databases to be accessed to the web search queries. Therefore, search engines are web-based tools for searching through the vast internet, ultimately allowing the user to locate OBC and its online content on the internet. Examples of search engines include Google, Yahoo! Mozilla Firefox, and MSN. These search engines rely on applications like robots, spiders, as well as bots to locate information for a user following a request. 2.4. The use of intranets and extranets by OBC Networks enable OBC to share information externally, through the extranet network, and internally, through the intranet network. An intranet is an internalized computer network that OBC can essentially use for information sharing in the company to the staff. On the other hand, an extranet refers to a private network that relies on the internet technology alongside public telecommunication system to share the information resources of a business with its relevant authorised stakeholders, including customers, brokers, and suppliers. For these reasons, it could be reasoned that an extranet is essentially a component of a company's intranet although it is targeted at users who are outside the organisation. In the case of OBC, extranet can be used to share information with authorised outsiders like book suppliers, other colleges, and libraries. Overall, extranet and intranet allow OBC to experience efficient communications, improves means to sharing of resources, better customer services, as well as minimised paperwork. Task 3 3.1. Various e-business models for generating business revenue for OBC Several types of e-business models exist: Storefront model: This e-business model is made up of the features that allow businesses to sell their goods and services to the consumers. Examples include transaction processing, online payment system, and information storage. Auction Model: This model provides a platform that allows sellers to post their commodities while hoping to receive bids from various interested buyers. Portal Model: This portal provides users with the capacity to search for information relevant to their needs, such as weather, sports and news. Overall, the portal model is the most relevant for OBC, as it would provide student customers with the capacity to search for educational information, receive updates, as well as interact with the college. 3.2. Analyze each model in terms of its capacity to generate revenue, relative to appropriateness to OBC Storefront model: The model is designed for purposes of generating of revenue to the website owner. It provides an online platform for buying and selling. The site also features an online payment system for instant processing of transactions online. It is not appropriate as it features an online platform for buying and selling. Auction Model: This model allows sellers to upload information on commodities they hope to sell through bids. It generates revenue by charging a transaction fee chargeable on successful transactions. It is not appropriate, as OBC does not need to sell commodities online through bids. Portal Model: The portal model relies on online advertisement for generation of revenue. It is actually this class of model, which is the most successful group in area of online advertisement. Revenues are generated through subscription and transaction fees. It is not appropriate as OBC as it would allow the college to generate revenues through subscription and transaction fees 3.3. Advice to OBC management on future developments of the e-business models The proliferation of internet and digital communication technology such as smartphones, tablets and laptops implies that more students will be connected to the internet. More students are likely to turn to pursue distance education, including through the mobile devices. The e-business models are likely to rely on mobile money as a form of payment, while business are also likely to come up with mobile apps to supplement their e-business websites. Task 4 4.1. Advice to OBC on vital elements that characterise a good web design structure The website structure is basically made up of elements like metatags, navigation body, , keywords, and description, which determine a site’s visual appeal, effective navigation as well as usability. Keywords make a site to be highly visible online, making it easy to locate the website using a browser. The website’s structure and content also needs to be attractive to the search engines and internet users. The site’s navigation structure also needs to be consistent across the many webpages to allow visitors to easily migrate to other pages (Karayanni & Baltas 2003). 4.2. Impacts of an effectively designed website to OBC’s e-business Design: The structural design of OBC’s website needs to be similar to the corporate marketing image of the e-business, as this attracts potential customer to the site. It also increases visitors to the site hence increasing sales (Karayanni & Baltas 2003). Content: Attractive and relevant content attracts the right target customers OBC’s e-business site, hence attracting the target customers to the site. This allows the site to be indexed and get ranking on the search engine. Functionality: When the functionality of web content is consistent with the right format, it eases the process of doing business on OBC’s e-business’s web interface. It also improves customers’ confidences on the site (Karayanni & Baltas 2003). In sum, a well-designed site would ensure that OBC increases traffic, attracts the target customers and increases revenues to the business. 4.3. Advice to OBC management on issues concerning website usability Optimizing the webpages internet users would be critical to OBC’s e-business site as it would make the website attractive to search engine spiders. The issues of concern include ensuring that the website’s loading speed is improved to allow for easy navigation. The website should also be readable to allow the users to read and understand the content. It should also be easy to navigate through clear navigation links to allow users to identify and navigate to relevant webpages or information resources. Conclusion E-business describes the application of information and communication technologies to carry out varied business activities. It can be categorised into various transaction types like Business-to-consumer (B2C), Consumer-to-business (C2B), Consumer-to-consumer (C2C), and Business-to-business (B2B). The most appropriate transaction type for OBC is the Business-to-consumer (B2C) transaction type, as students are the end-customers of the educational services from OBC. Still, several benefits and barriers are associated with the e-business, which OBC would expect to undertake. OBC can expect to reach a wide customer reach globally. As a result, it would have greater advantage over colleges using brick-and-mortar business models. E-business will as well enable OBC cut back on operating costs linked to operating the business. Operating an online business would mean that OBC is exposed to various security concerns, which need to be constantly be sufficiently dealt with. Among the security risks, include theft of the customers’ information stored in web “cookie” or even the sensitive financial information stored in the local disk. Mitigation strategies include using digital signatures, designed to enable the recipient of a file to confirm the authenticity and identity of the sender. The e-learning model is the most relevant for OBC, as it would provide student customers with the capacity to search for educational information, receive updates, as well as interact with the college. E-learning model would allow the OBC to generate revenues through subscription and transaction fees. This model provides an online platform for corporate-training institutions and universities on the internet, which charge for the e-learning products and services they create and disseminate. The model provides OBC with an opportunity reach out to a worldwide customer base, market the college online, and earn greater profits. The features that would enable OBC’s website to be categorised, as well as designed include containing keyword-rich content, striking site architecture and design, website functionality, and attractive graphics. In sum, a well-designed site would ensure that OBC increases traffic, attracts the target students from across the globe, and increases revenues to the business. 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