Chapter 11

CHAPTER 11

Social Networks – an area online where people who share common ties can interact with one another
1. A group of people
2. Shared social interaction
3. Common ties among members
4. A shared area for some period of time

General Communities – Wide range of topical discussion groups

Practice networks – Discussion groups for help or information in every practice

Interest-based communities – Shared interest grouped based networks

Affinity communities – Group identification networks including, Religion, ethnicity, gender, or political beliefs

Sponsored communities – government sites, branded product sites and many more

DIFFERENT TYPES OF AUCTIONS

English auction – single item is up from a single seller

Traditional Dutch auction – sellers with many identical items sold in lots, as time goes on the price falls

Internet Dutch Auctions – sellers list a minimum price or starting bid

Name your own price or reverse auctions – buyers specify the price they are willing to pay for an item

Benefits of Auctions
1. Liquidity – global marketplace
2. Price discovery – competitively priced based
3. Price transparency – everyone can see the asking and buying price
4. Market efficiency – Offered wide range of selected goods
5. Lower transaction costs – reduced cost of selling and purchasing goods
6. Consumer aggregation – motivated buyers amassed in one marketplace
7. Network effects – both user and seller benefit
8. Market-maker benefits – no inventory caring cost

Cost of auctions
1. Delayed consumption
2. Monitoring cost
3. Equipment cost
4. Trust risk
5. Fulfillment cost
6. Rating system
7. Watch list
8. Proxy bidding

Rob Hamlin

Rob Hamlin

Rob Hamlin is a Taylor grad who majored in Computer Science.  He has worked around the world on computer systems and administration databases.  During his junior year he had the opportunity to go to Germany and work at a system firm called Bell Labs, where his trainer as a system administrator left after one week.  After four stressful months of trying to get the system operational, Rob fell on his knees and prayed that God would show him how to fix it.  During Rob’s prayer time, God showed him tables and queries that needed to be built for the database.  This is one example of how God has impacted Rob’s life.  Later he worked with Operation Mobilization and eventually came to Treehouse Foods, where he is currently the CIO.

            Rob’s seminar revolved around the concept of guiding principles.  He described guiding principles as a theoretical concept that achieves efficiency, consumer focus, and product innovation.  In general terms, the principles are a series of statements that give the company context and guidance for future development. 

            For efficiency, guiding principles allow everyone in the corporation to work for a single purpose.  Having everyone focused on the same problem and solution reduces complexity and generates group activities. This will optimize the efficiency of the company.  For consumer focus, guiding principles will help the sales and operation planning. As a corporation the second goal, after making profit, is to satisfy and retain customers. This will help the company to focuses on the consumer needs and how to market sales appropriately.  For product innovation, guiding principles increases creativity and originality for products.  They will also help in avoiding costly customizations. This will help reduce recalls and failed products.

The guiding principles concept is a powerful tool that can be used in almost any situation.  In anything involving one or more persons it is important to have everyone working for a single purpose in order to increase their performance. 

Chapter 8

Information rights - What rights do individuals have to control their own personal information?

Property rights - how can traditional intellectual property rights be enforced when perfect copies of protected works are not on the internet?

Governance - should the internet and e-commerce be subject to public laws?

process for analyzing ethical dilemmas

1.  Identify and describe the facts

2. Define the conflict or dilemma and identify the higher-order

3. Identify the stakeholders

4. Identify the options you can reasonably take

5. identify the potential consequences

6. Refer to well-established ethical principles

Privacy - the moral right of individuals to be left alone, free from surveillance, or interference from others

Information privacy - certain information should not be collected at all by governments or business firms

Due process - fair information practices doctrine

methods used to protect online privacy

1. legal protections (laws)

2. industry self-regulation via industry alliances (closed communication) 

copyright law - protects original forms of expression such as writings, drawings, and computer programs from being copied for a minimum of 70 years.

Patent law - grants the owner of a patent an exclusive monopoly to the ideas behind an invention for 20 years

Trademark protections - protects the public in the marketplace by ensuring that it gets what it pays for and wants to receive. Also protects the owner who has spent time, money, and energy bringing the product to the market.

s

Michael Grouse - Ethics

Ethics for Organizations in the Information Age

 

1.     Introduction

a.     15 years in AT&T

2.     Systems development

a.     Suppliers – Extranet – Server

3.     Stakeholder concept

a.     Looking at ethical relationships between

                                               i.     Employees

                                              ii.     Consumers

                                            iii.     Owners

                                            iv.     Members of society

4.     Social Responsibility

a.     The firms impact on society

5.     Ethics – a guide for living

6.     Input factors

a.     Individuals (family, literature, experiences)

b.     External (stakeholders, government, media, corporate culture)

c.      Situations (opportunities) ‘speeding’ no penalty for unethical behavior

7.     Creating an ethical standard

a.     Humanistic worldview - Philosophies

                                               i.     Teleological – the ends justify the means

1.     Egoism (self gain)

2.     Utilitarianism (the needs of the many out way the needs of the few)

                                              ii.     Deontological – Duty

1.     Existentialism –use yourself as a standard

2.     Contractarianism – a multi-person social contract stating how to live

                                            iii.     Combination – cafeteria style

b.     Moral development concept

                                               i.     Level 1:  punishment – reword

                                              ii.     Level 2: rights conform to society expectations

                                            iii.     Level 3: ethical principles

c.      Religious worldview

                                               i.     Biblical worldview - Loving God, Loving your neighbor…

 

Stefan Brandle

Majored in philosophy

System manager of

            Unix

            Novell

            Network Internet services

Degree production vs. job opening

Businesses are looking over seas because there are not enough computer science majors in the states.

Golas for tonight

1.     Spamming

a.     Spam

                                               i.     Graphical images

1.     Speckle the pictue to avoid optical scan

                                              ii.     Attempts to get past spam filters

1.     Avoiding profiling

2.     Graduation text

Double Click - google

The New York Times reports that Google has purchased DoubleClick. That seems to be the conclusion to the speculation we've talked about earlier. From the article: 'Google reached an agreement today to acquire DoubleClick, the online advertising company, from two private equity firms for $3.1 billion in cash, the companies announced, an amount that was almost double the $1.65 billion in stock that Google paid for YouTube late last year

Chapter 7 Questions

• 1. Define
• a. CTR – Click through rate (number of times an ad is clicked)
• b. CPM – Cost per Thousands - advertiser pays for impressions in 1,000 unit lots
• c. CPC – Cost per click (advertiser pays a fee for each click an ad receives)
• d. CPA – Cost per action (advertiser pays for only those users who perform a specific action)
• 2. What are the key attributes of a good domain name?
• a. Short, memorable, not easily confused with others, and difficult to misspell
• 3. What are some of the steps a firm can take to optimize its search engine rankings?
• a. Register with as many search engines as possible
• b. Ensure that the keywords used in the website description mach keywords likely to be used in search fields
• c. Place keywords in the websites metatage and title page
• d. Link the website to as many other websites as posible
• 4. List and describe some Web site design features that impact online purchasing.
• a. Utility and ease of use are the main factors
• b. Design look consist of 46% of website credibility
• c. Then information structure and information focused
• d. The site must be functional, informative, employ simple navigation, use of redundant navigation.

The loopy Ewe

• Started off with a scrap booking company
• Once digital cameras came into play people stopped printing pictures
• Started a yarn shop, didn’t want the retail hours
• Decided to make a online yarn shop
• Started in a basement
• Grew into out of the house into 180,000ft of office space.
• Wanted to retain repeat customers
• Have a nitch market (socks, soft yarn)
• Retain customers by customer relations
• Made the website unique
• Built from the ground up
• Moldable
• Can put customer features on
• Distinguish yourself
• Look at competitors and see what they do good
• Used hard boxes to insure product quality.
• High quality photos
• Personalized notes, signed name and make it look hand written
• Getting loyalty out of customers
• Have to go out of your way to help them
• Blog, email, phone, etc.
• Personalize it, make a connection
• Loopy’s Summer Vacation
• Exceed their expectation (give them more then usual)
• Not the typical return policy

2 Template Websites

1. How to design a ecommerce website

http://www.2createawebsite.com/money/ecommerce-website.html

2. Web Design Templates

http://website101.com/web-design-templates/index.html

Eight Unique Features

Amazon.com

1. Ubiquitous – online and store marketplaces all over the globe
2. Global reach – everyone online “750 million”
3. Universal Standards – doesn’t matter where you go, it’s the same technology worldwide
4. Information richness – online advertising and p2p
5. Interactive – Customer reviews and rating system
6. Informatino density –quality of the information, customer rating system
7. Personalization / customization – Related items to buy, weekly newsletters
8. Social Technology – target people socially through selling used items

Five major types of ecommerce

1. Amazon
- B2C company that has revolutionized the Ecommerces industry
www.Amazon.com

2. Ebay
- B2C company that uses online auctions
www.ebay.com

3. Buy.com
- B2C shopping online
www.Buy.com

4. NewEgg
- B2C shopping online
www.newegg.com

5. Half.com
- C2C, sell your old stuff to others
www.half.com

2 web sites that perform a similar function

1.
http://www.vclocator.com/fundraising_documents.php

2.
http://www.cmarket.com/

Chapter 2

Chapter Idea – is to focus on business models and basic business concepts that you must be familiar with in order to understand e-commerce.

Business model – a set of planned activities design to result in a profit in a marketplace.
Business Plan – a document that describes a firm’s business model
E-commerce business model – a business model that aims to use and leverage the unique qualities of the internet and the world wide web

Eight Key Elements of a Business Model
1. Value proposition

a. How a company’s product or service fulfills the needs of the customers.

2. Revenue model

a. How the company plans to make money from its operations.

3. Market opportunity

a. The revenue potential within a company’s intended marketplace.

4. Competitive environment

a. The direct and indirect competitors doing business in the same marketplace, including how many there are and how profitable they are.

5. Competitive advantage

a. The factors that differentiate the business from its competition, enabling to provide a superior product at the lower cost.

6. Market Strategy

a. The plan a company develops that outlines how it will enter a market and attract customers.

7. Organizational development

a. The process of defining all the functions within a business and the skills necessary to perform each job, as well as the process of recruiting and hiring strong employees

8. Management team

a. The group of individuals retained to guide the company’s growth and expansion.

Portal – offers users powerful web search tools as well as an integrated package of content and service all in one place.
E – Tailer – online retail store
Content provider – information and entertainment companies provide
Transaction broker – processes online sales
Market creator – uses the Internet to create markets
Service provider – offers service online

Industry structure – the nature of players in an industry and their relative bargaining power
Industry value chains – The set of activities performed in an industry by suppliers manufactures and other distributors that form the final product.
Firm value chains – Set of activities performed within an individual fim to create the final product.
Business strategy – A set of plan for achieving superior long-term returns on the capital invested in a firm.

Chapter 1

Ecommerce’s
1. Started in 1999
2. Digital means for a transaction between two organizations or persons
3. Myspace

a. Started in 1999

b. Unclean

4. Facebook

a. New and improved

5. Get away from the brick and mortar companies

a. The .com bubble

6. Trend is back now online / brick and mortar a mix

a. New business models based on social and technologies and user-generated content

b. Search engine dominates online

c. More businesses using internet to conduct commerce

d. Broadband and wireless internet growing

7. Ecommerce – digitally enabled commercial transactions.

E-business
- Transaction and processes within a firm!
Ecommerce’s
- Transactions between one or more companies!

Unique features of ecommerce
1. Ubiquitous – seemingly everywhere
2. Global reach – everyone online “750 million”
3. Universal Standards – doesn’t matter where you go, it’s the same technology
4. Information richness – don’t have to sacrifice anything to get your word out
5. Interactive – personal
6. Informatino density –quality of the information, cheapest way to advertise
7. Personalization / customization – draw people into your sight
8. Social Technology – target people socially

B2C – Business to Customer
B2B – Business to Business
C2C – Customer to Customer

P2P – Peer to Peer
M-commerce – mobile commerce

Limits
1. Expensive technology
2. User interface
3. Sophisticated skill set

Ecom at Taylor

1. Reasons for eCommerce

a. Conveyance

b. Easy way to do things

c. Company (School)

i. Organization

ii. Labor savings

iii. Reach more people

1. Track information (database)

d. Master Card VS Visa

i. Master Card charges convince

ii. Visa has to have separate the funds

1. Harder to return and use

2. What we have in place today

a. Outsource payment and credit operations for security reasons (GSB)

i. In charge of giving and receiving funds.

b. Yahoo bookstore (sudo ecommerce)

c. Touch net (payment network through banner)

i. Payment gateway (credit card handling)

ii. Store front environment

iii. Trying to due a service package to insure security

1. PCI DSS – sets the Law

d. Payroll

e. Cborg food service

3. Some things we cant do

a. Pay with credit card for tuition (CC company takes a cut)

John Peebles

John Peebles was born and raised in China with his family as missionaries. At the age of twelve he encountered his first computer, and in China where there is not much to do, he became an intense gamer. He found his love for computers early in life and learned how networking and servers operated by constructing a multi-house Lan. He later was accepted to Taylor University where he majored in Computer Science. Due to his Fluent Chinese and computer background he was able to acquire sixteen free credits before his freshman year. He was not a fan of academics and found himself struggling for grades and barely managed a 2.0 at graduation. After graduation he developed a software consulting company called Cerebral Tech with his friend in which he grew to 128000 within a few month. Due to the risk involved John wanted a more stable environment for his company and decided to move to Florida and develop Sentry Data Systems, which specialized in pharmaceutical software. He now has about twenty employees and a great reputation.
He shared some tips that separated his company from the rest. Due to the high level of software his company developed customer support was essential. Sentry Data Systems developed a technique where the developers would actually run the customer support for their specific program. This means you are getting the best help because its from the creator of the software and this motivates the programmer to make a solid program as to not have to fix things latter. The company also only hires the top programmers as to separate them from the competition. Some employees even work from their home. This is possible by the rapid communication software the company uses which includes an online phone system, a chat program, and soon a video client. Sentry Data System truly is a cutting edge company.