- creates new business models and is challenging bookstores, music labels, and film studios (B) The principal e-commerce business and revenue models are: e-commerce business models - electronic retailers, transaction brokers, market creators, content providers, community providers, service providers, and portals. The principal e-commerce revenue models - advertising, sales, subscription, free/freemium, transaction fee, and affiliate. Principal e-commerce business model: - Etailer - sells physical products directly to consumers or individuals’ businesses. - Transaction brokers - saves users money and time by processing online sale transactions and generate a fee each time. -Market creator - provides a digital environment where buyers and sellers meet, search for and display products, and establishes prices for those products. - Content provider - creates revenue by providing digital content, such as digital news, music, photos, or video over the web. - Community provider - provides an online meeting place where people interact with one another based on similar interests. - Portal - provides an initial point of entry to the Web along with specialized content and other services. - Service provider - provides web 2.0 applications such as photo sharing, video sharing, and user-generated content as services. E-commerce revenue models:
- Advertising revenue - generates revenue by attracting a large audience of visitors who can then be exposed to advertisement. - Sales revenue - companies derive revenue by selling goods, information, or services to customer. - Subscription revenue - a website offering content or services charges a subscription fee for access to some of its offering on an ongoing basis. - Free/freemium revenue - basic services or content are free while advanced or special features cost extra. - Transaction fee revenue - a company receives a fee for enabling or executing a transaction. - Affiliate revenue - sites steer customers to an affiliate business receive a referral free or percentage of the revenue from any resulting sales. 6. The alternative methods for building information systems are: systems life cycle, prototyping, application software package. Traditional systems life cycle is oldest method for building information systems that also known as the Systems Development Life Cycle (SDLC). This is a highly structed information system design to develop a very formal process that persons to go through. This is usually a 5-6 steps process which has defined steps that are considered formal stages that a project would go through. Advantages - Straight forward model to work through - Easy system to use for novice information systems designers - Perfect match for bigger projects or ones that are complex in nature Disadvantages - This system can be expensive to implement and control - Can be very difficult to work through - Inflexible and usually requires one to go through one step in the process before proceeding to the next
Information prototyping is cheap primary models build rapidly and inexpensively to see what works and what does not. This is useful because several iterations can be
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- Spring '17