Why are companies now concentrating on revenue models and the analysis of business processes instead of business models when they undertake electronic commerce initiatives?
Dating back many centuries ago, as early as 1400’s, transaction records were a good way to gauge how much a business organization was fairing. By concentrating on revenue models, how it monetizes its services, and the analysis of business processes, the companies can preserve and apply the information to recognize and assess clients, suppliers and also its workers. The companies can use that information to plan, predict its operations. In contrast, business models don’t offer that privilege. These business models are faced with cultural, legal barriers and many customers are reluctant to send money via on-line to people they have probably never met. Also, companies that transact their businesses on-line find it hard to integrate software that will process transactions and current databases tailored for traditional commerce into the software which allows electronic commerce.
How have economic forces created a business environment that is fostering the second wave of electronic commerce?
An assorted set of items and persons are being controlled by companies through the use of Radio-Frequency Identification (RFID) and smart cards technology. When combined together with other systems of communication, they enable different firms to contact each other and pass over to each other data on transaction, the customer demand and the level of inventory in an effective manner. As a marketing tool, e-mail is being also used as a tool to create connection with the customers.
As a source of revenue, the economic forces have enabled Internet advertising to be more effective. During the first wave of the electronic commerce, a large number of companies had the notion that those who made it first to the Website had a chance of succeeding, a strategy that came to be known first-mover advantage. Since a study was conducted on the companies that that tried to make use of the first-mover advantage in the first wave, it was found that the notion, by companies that such was a chance to be successful, to be ill-perceived. In the second wave, lesser and lesser companies apply the first-mover advantage. Also, it enables companies to identify and market its products to clients.
Define and describe the primary business models of electronic retailing (“e-tailing”).
The term electronic retailing or “e-tailing” refers to the selling of retail goods and services by using the electronic media, and more so the Internet, as a platform. The follows shows the primary business models of electronic retailing. One of the models is the e-mall. Here, a cyberspace is hired out to the cyber specialized or generalized e-store to those who want to sell their goods and services. Each specialized e-store is managed separately in contrast to the generalized e-store that is under one management. Each e-mall management creates web hosting services.
The second model is the specialized e-store. It involves either specialization on one product line or the traditional specialization along a product line. In the former, there is the sale of a specific product and in the latter, the sale of a specific product of the product line. The third model is the generalized e-store whereby the e-stores sell diverse product lines instead of specializing in a specific product line. The forth model is the through the direct sale by the producer. Some companies with renown brands have opted to use the Internet to sell their products directly. This model allows mass customization so as to meet the expectations of the customer. Effective to companies whose products are familiar to customers. However, companies must have a good understanding of the tastes of their customers, or else, depend on a retailer’s information knowledge of the customer. The fifth model is the e-broker. The involves the use of an intermediary to transact businesses whereby the intermediary serves as the link between the customer and the manufacturer.
Describe how on-line travel and tourism services operate and their industry impact.
On-line travel and tourism services operate in several ways which include giving general information that’s inquired by customers, offering travel magazines through electronic means, reservation and purchasing of travel tickets, also, it offers a platform where customers can compare fares.
The following are the impacts of on-line travel and tourism. Much information is offered and can be got any time of the day, it saves the company money that would have been otherwise handled out as commission since the companies sell their services directly. It’s not many people who have embraced the use of Internet and clients may find it very hectic in using virtual travel agencies.
Describe the uses of intranets for electronic business in sales and marketing, human resources, finance and accounting, and manufacturing.
When used for sales and marketing, they assist in monitoring and integrate the progress of a sales workforce. The sales workforce can learn about the various characteristics of the market such as the business rivals, pricing charts, product demos, and clients using the intranet. When used for human resources intranet forms a communication link between the organization and the employees. Exampes include newsletters, recruitments, job listings and training sessions. When used for finance and accounting, they make a centralized simplified way to use of financial and accounting data such as payrolls, financial reports and budgeting. Intranet is used in manufacturing to provide and integrate data among multiple plants such as coordinating quality teams, also, gather data for production reports.
Why are intranets so useful for electronic business?
Intranet is useful in electronic business as it enables effective communication across an electronic business. Also, it alleviates the chances of crucial data getting into the wrong persons.

Question Two
Describe the delivery of digital products and on-line entertainment.
There are useful and are used in on-line entertainment such as in Internet games, browsing Web, and in socializing network sites. They are used to transact business in services that are related to entertainment such as giving tickets to an event, live events, and accessing entertainment in both audio and video formats.
Discuss various e-tail consumer aids, including comparison-shopping aids.
One of the consumer aid is shopping portals. With comprehensive portals, it offers links to a sundry set of sellers, sites to compare different shopping, also, there is the availability of comparison tools. The second consumer aid is agents and shopbots, which are tools that search across the Website for search terms entered by the customers. They are AutoBytle.com which is used in purchasing cars, Mysimon.com (selling diverse products at suitable prices), computershopper which deals with computers, and Office.com (deals with office equipment). The third shopping aid is Escrow services (whereby there is a third party to ascertain delivery of quality) and offers convenient business transaction between the buyer and the seller and offers research information. The forth shopping aid is niche oriented which deal with a specific product line and get a referral payment.
How is the Internet changing the economics of information and business models?
The Internet connects everyone across the world and in that context, business can be in a position to access probable customers that were otherwise previously unaccessed. Companies can track and analyze the trend of their customers. A business can reach many people worldwide without the use of costly fares to reach the regions by traveling. Business transacion that is made online can be conducted anytime of the day as long as one has access to technical input and Internet.