What is the digital economy, and how does it differ from a traditional economy?
What is a reverse auction, and how does ICT enable this business method?
How does group purchasing leverage ICT to benefit businesses and consumers?
What is an e-marketplace, and what role does ICT play in its operation?
How do pure brick, brick and click, and pure click organizations differ in their use of ICT?
Answers and Descriptions:
Answer: The digital economy refers to economic activities that rely on digital technologies, such as the internet, mobile devices, and data analytics, to conduct business. Unlike the traditional economy, which primarily involves physical goods and in-person transactions, the digital economy emphasizes digital services, online platforms, and data-driven decision-making.
Description: The digital economy enables businesses to operate globally with reduced physical infrastructure, using ICT for online sales, digital marketing, and data management. For example, e-commerce platforms like Amazon rely on ICT to connect buyers and sellers worldwide.Answer: A reverse auction is a procurement method where sellers compete to offer the lowest price to a buyer for goods or services, facilitated by online platforms. ICT enables reverse auctions through real-time bidding systems and secure communication channels.
Description: ICT platforms, such as online procurement portals, allow buyers to post requirements and sellers to bid in real time, increasing transparency and reducing costs. For example, government procurement systems often use reverse auctions to secure cost-effective contracts.Answer: Group purchasing involves multiple buyers pooling their demand to negotiate better prices from suppliers, with ICT enabling coordination through online platforms.
Description: ICT facilitates group purchasing by providing platforms where buyers can aggregate orders, communicate with suppliers, and track transactions. Websites like Groupon use ICT to offer group discounts, benefiting both consumers and businesses.Answer: An e-marketplace is an online platform where multiple buyers and sellers conduct transactions, with ICT providing the infrastructure for product listings, payments, and communication.
Description: ICT supports e-marketplaces like eBay or Alibaba by enabling secure transactions, search functionalities, and user reviews. These platforms rely on databases and networking technologies to manage large-scale interactions efficiently.Answer: Pure brick organizations operate only physically (e.g., local stores), brick and click organizations combine physical and online operations (e.g., Walmart), and pure click organizations operate entirely online (e.g., Amazon). ICT is minimally used in pure brick, moderately in brick and click, and extensively in pure click.
Description: ICT enables online sales, inventory management, and customer engagement in brick and click and pure click models. Pure click organizations depend entirely on ICT for their operations, such as website maintenance and digital marketing.