CIS 2010 UNIT 2 EXAM |QUESTIONS WITH
CORRECT DETAILED ANSWERS |PRE-
EVALUATED A+
Disruptive technologies
A new way of doing things that initially does not meet the needs of
existing customers
Sustaining technologies
Produces an improved product customers are eager to buy, such as a
faster car or larger hard drives
Ebusiness advantages
1. Expanding global reach
2. Opening new markets
3. Reducing costs
4. Improving operations
5. Improving effectiveness
,Information richness
Refers to the depth and breadth of details contained in a piece of
textual, graphic, audio, or video information
buyers need this to make informed purchases
Information reach
Measures the number of people a firm can communicate with all over
the world
sellers need this to properly market and differentiate themselves from
the competition
Disintermediation
Occurs when a business sells directly to the customer online and cuts
out the intermediary
lets the company shorten the order process and add value with
reduced costs or a more responsive and efficient service
Reintermediation
Steps are added to the value chain as new players find ways to add
value to the business process
Cybermediation
Refers to the creation of new kinds of intermediaries that simply could
not have existed before the advent of ebusiness
Ebusiness revenue models
1. Advertising fees
2. License fees
, 3. Subscription fees
4. Transaction fees
5. Value-added service fees
Disruptive innovation
An innovation that leverages new technologies to attack existing
markets from the bottom up
Sustaining innovation
A new or improved product that meets the needs of consumers and
sustains manufacturers
Paradigm shift
Occurs when a new radical form of business enters the market that
reshapes the way companies and organizations behave
Intermediaries
Agents, software, or businesses that provide a trading infrastructure to
bring buyers and sellers together
Long tail
Referring to the tail of a typical sales curve
Clickstream data
Data collected about user behavior and browsing patterns by
monitoring users' activities when they visit a web site.
Challenges of ebusiness
1. Identifying limited market segments
2. Managing consumer trust
3. Ensuring consumer protection
4. Adhering to taxation rules
CORRECT DETAILED ANSWERS |PRE-
EVALUATED A+
Disruptive technologies
A new way of doing things that initially does not meet the needs of
existing customers
Sustaining technologies
Produces an improved product customers are eager to buy, such as a
faster car or larger hard drives
Ebusiness advantages
1. Expanding global reach
2. Opening new markets
3. Reducing costs
4. Improving operations
5. Improving effectiveness
,Information richness
Refers to the depth and breadth of details contained in a piece of
textual, graphic, audio, or video information
buyers need this to make informed purchases
Information reach
Measures the number of people a firm can communicate with all over
the world
sellers need this to properly market and differentiate themselves from
the competition
Disintermediation
Occurs when a business sells directly to the customer online and cuts
out the intermediary
lets the company shorten the order process and add value with
reduced costs or a more responsive and efficient service
Reintermediation
Steps are added to the value chain as new players find ways to add
value to the business process
Cybermediation
Refers to the creation of new kinds of intermediaries that simply could
not have existed before the advent of ebusiness
Ebusiness revenue models
1. Advertising fees
2. License fees
, 3. Subscription fees
4. Transaction fees
5. Value-added service fees
Disruptive innovation
An innovation that leverages new technologies to attack existing
markets from the bottom up
Sustaining innovation
A new or improved product that meets the needs of consumers and
sustains manufacturers
Paradigm shift
Occurs when a new radical form of business enters the market that
reshapes the way companies and organizations behave
Intermediaries
Agents, software, or businesses that provide a trading infrastructure to
bring buyers and sellers together
Long tail
Referring to the tail of a typical sales curve
Clickstream data
Data collected about user behavior and browsing patterns by
monitoring users' activities when they visit a web site.
Challenges of ebusiness
1. Identifying limited market segments
2. Managing consumer trust
3. Ensuring consumer protection
4. Adhering to taxation rules
