Page 97 - BA1 Integrated Workbook STUDENT 2018

Information technology and e-business

Web 2.0

Web 2.0 refers to a perceived second generation of web
development and design that facilitates communication, secure
information sharing, interoperability and collaboration on the World
Wide Web.

Web 2.0 creates several key opportunities for organisations.

 Advertising – including on social media sites.

 Software as a service (SaaS) – pay for software only as needed.

 Mashups – mix and match information and services offered to customers.

 Competence syndication – make a portion of the organisation’s website
available to other firms.

 Using global network effects – the more people use a website, the more
valuable it becomes.

5.1 Virtual organisations

Virtual organisations occur where an organisation outsources many of its
key functions to other organisations and simply exists as a network of
contracts. Few, if any, functions are kept in-house.

Benefits Drawbacks/barriers

Increased flexibility Difficulty in negotiating contracts

Ability to compete with larger rivals Loss of control

Ability to create teams of experts Harder to achieve competitive advantage

Lower costs

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