September 3, 2008

For 8/27 & 9/3, 2008

Web 2.0 provides greater communications and interactions between users and software offline and online. Google Docs and RSS readers are examples of Web 2.0 software. The internet provides instant information about any topic when it’s need it. It attracts more customers. Google is wants to be open-source software allowing more user freedom. Meanwhile Microsoft has private source. Google documents allow users to create word processing, spreadsheets, and power points online that can be accessed from computer with online access. Today it released a new browser called “Chrome” that is open-source web browser.

The internet is packet based, it has one terminal that sends information over the Internet, then the network transforms this info into raw data packets that are read through a standard global language TCP/IP, this data gets to the other end and it is put together again in order to be in the original state it was sent. Social Networks are in some ways, a way of relieving boredom for some people but it can be boring as well. It has become a media for marketing, such as facebook implements ads on its site relating to your interests or a featured product or service.

Information Product is a commercial product that consists solely of data. Ex: The Sabre System

Information Rich Products are physical products in which the customers have more control. Ex: Tide website

Four Drivers of change in the Internet Economy:

1. Information produces the greatest value: either as added value for existing products or services or in the form of information products.  Added value can be convenience, wider selections, more information, easier shopping experience, and confidentiality.
2. Distance does not matter in many types of communications and transactions. There are almost no limitation of distance, or very less.  In the case of music, you can download whatever music you want straight from your computer without going to the retail store, ie: Napster & Apple Itunes.
3. Speed is of the Essence.  Google provides information fast as possible for your search, Itunes allows you to receive your song/album in seconds, EBay’s “Buy it Now” feature allows you to buy a product without waiting for the auction. Real-time customer service, and faster feedback.
4. People are the key assets in internet enterprises.  Knowledge workers are people who use their brain to work, people who use the internet fall into this.

Four ways the Internet Affects business processes:

1. Cost: Online transactions in banks are cheaper than transaction costs at branches.
2. Quality: Less errors
3. Customer Access: More visitors
4. Choice: wider assortments of products