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Homework answers / question archive / The Digital Firm: Electronic Business and Electronic Commerce 1)Internet technology is the key-enabling technology for the digital integration of the modern company

The Digital Firm: Electronic Business and Electronic Commerce 1)Internet technology is the key-enabling technology for the digital integration of the modern company

Business

The Digital Firm: Electronic Business and Electronic Commerce

1)Internet technology is the key-enabling technology for the digital integration of the modern company.

 

 

 

 

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Proprietary systems are inexpensive and based on technology standards that most companies can follow.

 

               

 

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The Internet’s universal computing platform is the primary infrastructure for the emerging digital firm.

 

 

 

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One advantage of using Internet technology is that it provides the infrastructure to allow information to flow seamlessly from one part of the organization to another.

 

 

 

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The unbundling of information from traditional channels has enhanced old business models.

 

               

           

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The Internet shrinks information asymmetry.

 

 

 

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The time and money spent locating a suitable product and determining the best price for that product defines location costs.

 

               

 

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Information asymmetry exists when one party in a transaction has more information for the transaction than the other party.

 

 

 

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Dynamic pricing is online bidding.

 

 

 

 

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A banner ad opens automatically and does not disappear until the user clicks on it.

 

               

 

 

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A syndicator is a business that aggregates content or applications from multiple sources, packaging them for distribution, and reselling them to third-party Web sites.

 

 

 

 

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Disintermediation provides major benefits to the distributor.

 

               

 

 

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Web sites can gather bountiful detailed information about customer behavior and demographics.

 

 

 

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It is unusual for companies to use Web pages to analyze customer information.

 

               

 

 

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Amazon.com uses Web personalization as a major marketing tool.

 

 

 

 

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Web sites cannot currently provide customers with Web page/call center interaction.

 

               

 

 

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Private exchanges are currently the fastest growing type of B2B commerce.

 

 

 

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Direct goods are not directly involved in the production process, and normally serve vertical markets.

 

 

 

 

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Automobile manufacturing is an example of a vertical market.

 

 

 

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Many third-party Net marketplaces provide vertical markets for a single industry.

 

 

 

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Accumulated balance digital payment systems allow consumers to make instant online payments to merchants and other individuals based on conventional credit card payments.

 

 

 

 

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Digital cash can be used for micropayments or larger purchases.

 

 

 

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Sophisticated electronic commerce software has capabilities for processing credit card purchases on the Web.

 

 

 

 

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Digital checks are less expensive than credit cards.

 

 

 

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Digital checks are more expensive than credit cards but faster than paper-based checking.

 

               

 

 

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Event-driven publishing allows organizations to respond more rapidly to changing conditions than paper-based publishing.

 

 

 

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Intranets are useful in all the major functional areas of business.

 

 

 

 

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Traditional TPS are the best way to bring detailed information together from many different sources for decision making and performance measurement.

 

               

 

 

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One of the most popular applications for corporate intranets is the coordination of the activities of the sales force.

 

 

 

 

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Major uses of the intranet for the sales and marketing departments are online training and order tracking.

 

 

 

 

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TransCanada Pipeline employees use the company intranet to process timesheets and expense reports.

 

 

 

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It is more difficult to develop intranets integrating manufacturing data under a uniform interface than to develop them in other functional areas.

 

 

 

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Intranets and extranets can be used to electronically coordinate cross-functional processes inside and outside the organization.

 

 

 

 

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Internet technology has changed value propositions and business models.

 

 

 

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Because of its speed and efficiency, doing business on the Internet is always more cost-effective than traditional business methods.

 

 

 

 

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Channel conflict can create negative repercussions, especially when commission sales to area sales representatives are involved.

 

 

 

 

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In order for electronic commerce to flourish there must be an atmosphere of trust established among buyers, sellers, and other partners involved in online transactions.

 

 

 

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The Web provides an unprecedented ability to learn about and target customers.

 

 

 

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The unbundling of information from traditional channels has enhanced old business models.

 

 

 

                                                     

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Peer-to-peer payment systems are the principal payment systems for electronic commerce.

 

 

 

 

     

 

 

 

 

 

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