Creating Innovative
Organizations
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LEARNING OUTCOMES
1. Compare disruptive and
sustaining technologies and
explain how the Internet and
WWW caused business
disruption
2. Describe Web 1.0 along with
ebusiness and its associated
advantages
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3. Compare the four categories of
ebusiness models
4. Describe the six ebusiness
tools for connecting and
communicating
5. Identify the four challenges
associated with ebusiness
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DISRUPTIVE
TECHNOLOGIES AND
WEB 1.0
O 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
O How can a company like Polaroid go
bankrupt?
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Disruptive versus
Sustaining Technology
O What do steamboats, transistor
radios, and Intel’s 8088 processor
all have in common?
O Disruptive technology – A new way
of doing things that initially does not
meet the needs of existing customers
O Sustaining technology – Produces
an improved product customers are
eager to buy
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Disruptive versus
Sustaining Technology
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Disruptive versus
Sustaining Technology
O Innovator’s Dilemma discusses
how established companies can take
advantage of disruptive technologies
without hindering existing
relationships with customers,
partners, and stakeholders
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Disruptive versus
Sustaining Technology
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The Internet and World Wide Web –
The Ultimate Business Disruptors
O One of the biggest forces changing business
is the Internet – A massive network that
connects computers all over the world and
allows them to communicate with one
another
O Organizations must be able to transform as
markets, economic environments, and
technologies change
O Focusing on the unexpected allows an
organization to capitalize on the opportunity
for new business growth from a disruptive
technology
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The Internet and World Wide
Web – The Ultimate Business
Disruptors
O The Internet began as an emergency
military communications system
operated by the Department of
Defense
O Gradually the Internet moved from a
military pipeline to a communication
tool for scientists to businesses
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The Internet and World Wide Web
–
The Ultimate Business Disruptors
O 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
O Web browser – Allows users to access
the WWW
O Hypertext Transport Protocol – The
Internet protocol Web browsers use to
request and display Web pages using URL
– universal resource locator 13-11
The Internet and World Wide
Web – The Ultimate Business
Disruptors
O Reasons for growth of the WWW
O Microcomputer revolution
O Advancements in networking
O Easy browser software
O Speed, convenience, and low cost of
email
O Web pages easy to create and flexible
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Web 1.0 – The Catalyst
For Ebusiness
O The Internet has had an impact on
almost every industry including
O Travel
O Entertainment
O Electronics
O Financial services
O Retail
O Automobiles
O Education and training
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Web 1.0 – The Catalyst
For Ebusiness
O Web 1.0 – A term to refer to
the WWW during its first few
years of operation between
1991 and 2003
O Ecommerce – Buying and
selling of goods and services
over the Internet
O Ebusiness – Includes
ecommerce along with all
activities related to internal
and external business
operations
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ADVANTAGES OF
EBUSINESS
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Expanding Global Reach
O The Internet’s impact on information
O Easy to compile
O Increased richness
O Increased reach
O Improved content
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Opening New Markets
O Mass customization – The
ability of an organization to tailor
its products or services to the
customers’ specifications
O 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
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Opening New Markets
O The Long Tail – Refers to the
tail of a typically sales curve
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Opening New Markets
O Intermeidary – Agents, software,
or businesses that provide a trading
infrastructure to bring buyers and
sellers together
O Disintermediation
O Reintermediation
O Cybermediation
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Opening New Markets
Business Value of
Disintermediation
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Improving Effectiveness
O Clickstream data tracks the exact
pattern of a consumer’s navigation
through a website
O Clickstream data can reveal
O Number of pageviews
O Pattern of websites visited
O Length of stay on a website
O Date and time visited
O Number of customers with shopping carts
O Number of abandoned shopping carts
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Improving Effectiveness
O Generating revenue on the Internet
O Online ad (banner ad) - Box running
across a web page that contains
advertisements
O Pop-up ad - A small web page
containing an advertisement
O Associate program (affiliate
program) - Businesses generate
commissions or royalties
O Viral marketing - A technique that
induces websites or users to pass on a
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Improving Effectiveness
O Website metrics include
O Visitor metrics
O Exposure metrics
O Visit metrics
O Hit metrics
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Ebusiness
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EBUSINESS MODELS
O Ebusiness model – A plan that details how
a company creates, delivers, and generates
revenues on the internet
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EBUSINESS MODELS
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Business-to-Consumer
(B2C)
Common B2C Ebusiness Models
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Ebusiness Forms and
Revenue-Generating
Strategies
O Common ebusiness forms
O Content providers
O Informediaries
O Online marketplaces
O Portals
O Service providers
O Transaction brokers
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Ebusiness Forms and
Revenue-Generating
Strategies
O Ebusiness revenue models
O Advertising fees
O License fees
O Subscription fees
O Transaction fees
O Value-added service fees
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EBUSINESS TOOLS FOR
CONNECTING AND
COMMUNICATING
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EBUSINESS TOOLS FOR
CONNECTING AND
COMMUNICATING
O Email
O Instant messaging
O Podcasting
O Videoconferencing
O Web conferencing
O Content management system
O Taxonomy
O Information architecture
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THE CHALLENGES OF
EBUSINESS
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Class Activity
In a group please go through case
study and answer the questions at the
end.
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