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Unemployment the role of information technology and the internet in the 21 st century l.jpg

By Dr Costas Kyritsis (http://preveza.teiep.gr/kyritsis)

(September 2006)

Unemployment the Role of Information Technology and the Internet, in the 21st Century.


Outline of the presentation l.jpg

Outline of the presentation

  • Part 1 : Unemployment; How much, Where, When, How, Why. New macroeconomic cognitive principles , and new understanding of the emerging workplace of the 21st century.

  • Part 2: How the web in the society of information is absorbing unemployment. New insights to the subjectivity of the self-employed individual. New techniques of web-sites for e-business and remarkable cases from unemployment to innovative e-business success


Detailed preview of the presentation unemployment l.jpg

PART1 1) We analyze with meaningful and reliable statistical data the macroscopic situation and its dynamics of the unemployment in Europe , USA, Canada.

2) We discuss the hidden and long term macroeconomic reasons for this phenomenon.

3) To do so we introduce some of the basic tools in macroeconomics like:

3) Power and Pareto distribution of the size of organizations (as an instance of a more general law that appears also in physics, the web, ecology and even astrophysics) We explain the emergence of this law from randomness and evolution

4) We formulate the win-lose war of business competition and the win-win peace of business

cooperation as linear coupling system, and with Volterra equations (that were first introduced in ecology)

5) We deduce increase of unemployment by the win-lose war of business competition and decrease by the win-win cooperation which we term as “complementarity”

6) We explain also unemployment as a temporary symptom of fast social transformation due to technology advance and growth

7) We describe the new workplace of the 21st century as a shift to a less smooth shape of the Pareto distribution, where self-employment is increasing fast trying to absorb the unemployed.

8) We also discuss governmental social welfare and moral issues of the unemployed

Detailed Preview of the Presentation : Unemployment


Detailed preview of the presentation techniques for self employment in the web l.jpg

PART 2 1) We analyze the requirements and advantages of small e-business for a self-employed.

2) We analyze all the necessary spirit, mind-set , beliefs, and emotional intelligence about money, success in goals, risk, and business socialization, for the individual

These elements may be a radical change to a new type of subjectivity compared to the standard of the past of a typical employee that is compensated for his duration rather than his innovation

3) We give a detailed technical description of the functionalities and features that are required for a successful site in e-business

4) Finally we describe remarkable cases from unemployment to successful innovative e-business in

a) New Internet marketing techniques

b) New information products and services

c) Web Advertising

d) Information technology tools

e) Retail e-commerce

Detailed Preview of the Presentation : Techniques for Self-employment in the web


Part 1 the statistics of unemployment l.jpg

Part 1: The Statistics of Unemployment


Unemployment rates in europe l.jpg

Unemployment Rates in Europe


The time trend of unemployment rates in europe l.jpg

The time trend of Unemployment Rates in Europe


Unemployment payments l.jpg

Unemployment Payments


Qualifying time periods of employment before entitlement of unemployment payment l.jpg

Qualifying time periods of employment before entitlement of unemployment payment


Maximal duration of unemployment payment l.jpg

Maximal duration of unemployment payment


Unemployment payment as percentage of salary l.jpg

Unemployment payment as percentage of salary


The remarkable difference of europe and usa in supporting unemployment and self employed l.jpg

USA:

No tax advantages for the unemployed that turns to self-employment in health insurance and retirement plans compared to employees of large company

Serious disadvantages in the payments and terns of health insurance and retirement plans for the self-employed compared to the employees of a large company

No unemployment payments by the governments except of small compensation by the employer when firing

No government financing of continuing training of unemployed to new types of jobs and skills

Europe:

Same tax rules in health insurance and retirement plans for employees and self-employed

Same advantages in in the payments and terns of health insurance and retirement plans for the self-employed compared to the employees of a large company

Significant unemployment payments by the governments especially in the Europe of 15

EU financing of continuing training of unemployed to new types of jobs and skills

The Remarkable difference of Europe and USA in supporting unemployment and self-employed


Sources for comparisons in unemployment payments l.jpg

Sources for comparisons in unemployment payments


Statistical sources for usa and eu l.jpg

Europe:

Eurostat, http://epp.eurostat.ec.europa.eu/

USA:

Census bureau, http://www.Census.Gov/

Bureau of labour statistics, http://www.bls.Gov

Bureau of economic analysis, http://www.Bea.Gov/

Statistical Sources for USA and EU


Phenomenological reasons of unemployment l.jpg

Phenomenological Reasons of Unemployment


The macroeconomic realm as a network input output equations 1 l.jpg

The macroeconomic realm as a network: Input-Output equations 1

  • The macroeconomics realm can be formulated as a network where each node represents a production organization. Then simple linear equations resembling the Kickoff equations in electrical engineering of circuits, formulate the production transformation in the production organization. We set one equation for each kind of produced good or service. Input are the raw materials and output the volume of produced goods or services. The input and output volumes are the linear variables. In such output and input services, can be included the financial services too. The coefficients of the above linear equations are related to technology or financial services strategy decisions. The first to study in a systematic way such linear systems of input-output equations was the Nobel price winner W. Leontief during 1950-1960.


Some resources for macroeconomic models l.jpg

One of the world largest online Library: http://www.questia.com/

An online simulation of a macroeconomic model by Ray C. Fair

http://www.bized.ac.uk/virtual/economy/

http://www.ifs.org.uk/

“Linear programming and economic analysis”

by R. Dorfman P. A. Samuelson, R. M. Solow, Dover 1958

“Macroeconomics:An introduction to advanced methods”

By William Scarth

Editors: Harcourt Brace & Company, Canada, Ltd 1996

Some Resources for Macroeconomic Models


The island parable of unemployment your wealth is my wealth pareto optimality l.jpg

10 fishermen in an isolated island fish with strings

2 operate the fishing net 80% unemployment

Possible solutions:

“Socialistic”80% taxes to unemployment compensation

The wealth of the 10 remains the same

Educate the 8 fishermen to do

Agriculture (2)

Woodcrafts from the small wood (2)

Use of a mile in the little river of the island (2)

Little hydraulic water channel systems from the small lake were the small river goes in the island (2)

Finally the new wealth of the 8 fisher men is aso the wealth of the 2 operating the fishing net, in total higher wealth than the initial of the 10 fishermen

Pareto principle: The wealth of part of a society is not necessarily the poverty of another part of the society.

At the limit were the latter srats to happen, the structure of the society would be Pareto optimal.

The Island Parable of Unemployment : Your Wealth Is My Wealth, Pareto Optimality


Example of cases of technological growth and unemployment l.jpg

1979-1980s carburetor and electronic fuel injector

(300,000 displayed)

1985-1990s vinyl and CD’s

(2 billion $ industry, 100,000 employed )

.Com revolution and the new millennium

(10 million displayed during 1990s)

Example of Cases of technological growth and unemployment


The unemployment recession 1991 in usa l.jpg

The “unemployment recession” 1991 in USA


Reasons for unemployment the modern macroeconomic perspective l.jpg

The major reason for unemployment:

1) Technology transformations in USA and western Europe in the society of information

2) Further radical similar transformations are expected in the future when the present car engines shall be substituted with new that consume hydrogen and oxygen with no CO2 emissions (expected before 2020)

2) Political transformations from a soviet union society to free societies of eastern Europe

3) Similar transformation in china

4) Overpopulation in 3rd world countries

A different local reason during technology transformation for unemployment:

The War of Competition and win-lose interplay

Reasons for Unemployment: the Modern Macroeconomic Perspective


Linear coupling differential models for win lose and win win interactions 1 l.jpg

Linear coupling differential models for win-lose and win-win interactions 1


Economics interpretations and conditions l.jpg

Economics Interpretations and conditions

  • X volume of sales of enterprise A

  • Y volume of sales of enterprise B

  • Positive growth of the two enterprises: a>0 d>0

  • Win-win interplay: b>0 , c>0

  • Win-lose interplay: b<0 c>0

  • In the case of win-win all a,b,c,d >0 and as x>0 and y> 0 it is easy to deduce that also dx/dt >0 , dy/dt >0 in other words both enterprises in interplay increase in size


Linear coupling differential models for win lose and win win interactions 2 l.jpg

Linear coupling differential models for win-lose and win-win interactions 2


Classification of the qualitative dynamics l.jpg

Classification of the qualitative dynamics

In the next graphs, the possible solutions permit the same graphs with the arrows going in the opposite direction


Details of vortex points l.jpg

Details of Vortex points


Nodal point l.jpg

Nodal Point


Saddle point l.jpg

Saddle Point


Degenerate nodal point a l.jpg

Degenerate Nodal Point a


Degenerate nodal point b l.jpg

Degenerate Nodal Point b


Vortex points l.jpg

Vortex Points


Spiral points l.jpg

Spiral Points


Possible solutions l.jpg

Possible Solutions

  • Win-Lose:spiral point (vortex point not possible)

  • Win-Win:

  • A) ad<bc: Saddle point

  • B) ad>bc: Nodal Point


Long term results a l.jpg

Long term Results a

  • Win-Lose: Spiral-->One of the two enterprises shall end to bankruptcy.

  • This has as effect lower macroeconomic growth and increased unemployment

  • Win-Win:

  • saddle point-->Both enterprise grow larger

  • nodal point-->Both enterprise grow larger.

  • This has as effect larger macroeconomic growth and decreased unemployment


Volterra equations l.jpg

Volterra equations


Volterra oscillations of the two populations l.jpg

Volterra oscillations of the two populations


Volterra spiral points l.jpg

Volterra Spiral points


Resources for the differential models and volterra equations in populations l.jpg

Lectures on ordinary differential equations

Witold Hurevicz

The MIT pres 1958

Models in ecology by J. Maynard smith Cambridge university press 1974

Resources for the differential models and Volterra equations in populations


Long term results and conclusions l.jpg

Long term Results and conclusions

  • In the “business war” of competitive win-lose interactions the macroeconomic growth is less and unemployment more

  • In the “business peace” of complementary win-win interactions the macroeconomic growth is more and unemployment less


Unemployment reduction and growth through complementarily l.jpg

In addition during growth, after the new technology transformation in society, the Business Interactions should be more towards complementary alliances (win-win), than excluding competition (win-lose)

That corresponding situation in microeconomics rather than macroeconomics, is known in the context of total quality management

In total quality management the “all stakeholders win” approach has been proved the best for radical transformation of the enterprises.

A similar opportunity exists in the domestic economy instead of the microeconomic enterprise

Unemployment reduction and Growth through complementarily


Statistical patterns in evolution and growth the power law and the pareto rule l.jpg

The universal law of the power statistical distribution of the size of evolving entities in a system.

This law appears in many scales in the world and in many sciences like:

1) Physics

2) The web

3) Macroeconomics

4) Ecology

5) Astrophysics

etc

When the size of the entities has a lower bound the distribution is the Pareto distribution

Statistical patterns in Evolution and Growth: The power law and the Pareto rule


Resources l.jpg

Resources


Resources for statistical tables l.jpg

Resources for Statistical Tables

  • CRC standard probability and statistics tables and Fornulae by daniel Zillinger-Stepen Kokosa Chapman&hall/CRC 2000


In physics l.jpg

In physics:

  • If we through some water from a glass in a mirror, the population of water drops on the glass in not the normal distribution, but the Pareto distribution!


Slide47 l.jpg

In the web: The size in pages and number of links of the sites in the Web follows a power distribution

  • Source: The Laws of the Web Bernardo A. Huberman

    The MIT press 2001


In economics us firm demises l.jpg

In economics: US Firm demises


Resources for us firm demises l.jpg

Resources for US firm demises

Firm demise=firm extinction


In macroeconomics l.jpg

In macroeconomics

  • The income of the population

  • The size of the enterprises

  • The consumption size of energy of the enterprises

  • Follow the Pareto distribution

  • Also : The size of villages, towns and cities follows the Pareto distribution


The above permit the famous pareto rules l.jpg

The above permit the famous Pareto rules

  • “More than 80 % of the population possesses less than 20% of the total wealth”

  • “More than 80% of the total power in the planet is consumed by less than 20% of the countries”

  • “More than 80% of the problems in a company are created by less than 20% of the employees”

  • “More than 80% of the result is attained by less than 20% of a total effort, the next 20% of the result requires more than 80% of a total effort”


Statistical patterns of growth in ecology life time of species l.jpg

Statistical patterns of growth in Ecology:life time of species


Resources for the power law in ecology l.jpg

Dipartimento di Fisica, Università di Roma "La Sapienza," P.le A. Moro 2, Rome 00185, Italy; ¶School of Informatics, Indiana University, Bloomington, IN 47408; ||The Abdus Salam International Center for Theoretical Physics, Strada Costiera 11, 34100 Trieste, Italy; and Dipartimento di Fisica, Università di Padova and Istituto Nazionale di Fisica Nucleare, via Marzolo 8, 35131 Padua, Italy

Edited by Burton H. Singer, Princeton University, Princeton, NJ and approved September 7, 2005 (received for review March 31, 2005)

Species lifetime distribution for simple models of ecologies

Simone Pigolotti, , Alessandro Flammini, ¶, Matteo Marsili, ||, and Amos Maritan, 

Resources for the power law in ecology


In astrophysics stellar mass l.jpg

In Astrophysics: Stellar mass


Statistical patterns of growth in astrophysics reference l.jpg

Statistical Patterns of growth in Astrophysics:Reference


How a power distribution is derived from randomness and growth l.jpg

How a Power Distribution is Derived from Randomness and Growth

It can be proved in mathematics that that All the next lead to a power distribution of the size of exponentially growing entities:

  • Same initial sizes, different growth rate or age

  • Same initial sizes and age, different growth rate

  • Uniformly randomly different division of initial sizes (e,g. by a Poisson distribution) , same or different growth rate or age


The workplace of the 20 th century in more detail in us employees unions and unemployment l.jpg

First part of 20th century:

Roosevelt's new deal legislation in social profession’s safety, saves US from a totalitarian revolution

(in 1933 crisis: 34 from 48 states with no or only partial banking services!

Unions : less than 3 million members

Roosevelt's new deal increases them to 8 million by 1938

By 1955 24,4% of the labor force were union members)

Last part of 20th century:

The decline of life-time employment and the social safety of employees in unions

By the end of 1992 the union members fall to 15,8% of the labor force

Source:US Department of Commerce, Bureau of census, Abstract 1993 p 689

The workplace of the 20th century in more detail in US: Employees unions and unemployment


The parable of the shooter and the goalkeeper l.jpg

Failure and success

Unemployment:When success seems as failure

The boy plays the ball as shooter and goalkeeper at the same time, meaning the successful shooter, the father misunderstands it as being a failure goalkeeper in disappointment

The time scales and the conception of social reality:

Success or failure is defined only at relevant to a time scale.

The parable of the Shooter and the Goalkeeper


The new workplace of the 21 st century l.jpg

Corporations cannot provide life-long employment

They appear new “large companies” with only top-management and the major part of the operations with outsourcing

The anticipated new shape of the power distribution of organization sizes is less smooth

The majority of employees as self-employed professionals

The new workplace of the 21st century


The workplace of the 21st century and the power distribution l.jpg

The older smooth shape of the power distribution

The anticipated 21st century new shape of the power distribution

The workplace of the 21st century and the power distribution

  • The 21st century economics tend to a more abrupt shape of the pareto curve, where a smaller minority of even larger organizations appear, together with a larger majority of smaller enterprises or self-employer individuals


What unemployed and internet self employed mostly need l.jpg

What Unemployed and Internet Self-employed Mostly Need

  • Cash to support them at least for 6 months

  • Continuing health insurance, and that are relieved by its payments

  • Continuing retirement plans, that are relieved by their payments

  • Re-education for new skills of new jobs


The governments challenge of unemployment l.jpg

The Governments Challenge of Unemployment

  • USA: Governmental unemployment compensation, by the government besides the employer

  • Financed by the Government education of the unemployed to new technology job skills

  • EUROPE: Permanent free education for unemployed to new technology job skills

  • Relief to unemployed of the health insurance and retirement payments during unemployment


Individualism and its economic emotional intelligence within the global micro and macro economics l.jpg

In view of the previous and the new shape of the Pareto distribution of wealth in societies, the self-reliance of the individuals takes a very significant role

This self-reliance , which cannot be a parental-family reliance anymore, requires a new type of personal psychology, emotional intelligence (not to say intellectual intelligence too) and world-view.

The older views that the government, my employer, or someone else is responsible for my financial well being is not adequate anymore

Individualism and its economic emotional intelligence within the global micro and macro-economics


Detailed retrospection of the presentation unemployment l.jpg

PART1 1) We analyze with meaningful and reliable statistical data the macroscopic situation and its dynamics of the unemployment in Europe , USA, Canada.

2) We discuss the hidden and long term macroeconomic reasons for this phenomenon.

3) To do so we introduce some of the basic tools in macroeconomics like:

3) Power and Pareto distribution of the size of organizations (as an instance of a more general law that appears also in physics, the web, ecology and even astrophysics) We explain the emergence of this law from randomness and evolution

4) We formulate the win-lose war of business competition and the win-win peace of business

cooperation as linear coupling system, and with Volterra equations (that were first introduced in ecology)

5) We deduce increase of unemployment by the win-lose war of business competition and decrease by the win-win cooperation which we term as “complementarity”

6) We explain also unemployment as a temporary symptom of fast social transformation due to technology advance and growth

7) We describe the new workplace of the 21st century as a shift to a less smooth shape of the Pareto distribution, where self-employment is increasing fast trying to absorb the unemployed.

8) We also discuss governmental social welfare and moral issues of the unemployed

Detailed Retrospection of the Presentation : Unemployment


Part 2 how unemployment is absorbed and the role of the web l.jpg

How the web in the society of information is absorbing unemployment. New insights to the subjectivity of the self-employed individual. New techniques of web-sites for e-business and remarkable cases from unemployment to innovative e-business success

Part 2: How unemployment is absorbed and the role of the web


Technology advance and the price of goods l.jpg

Technology advance and the price of goods


The forgotten role of the internet and economic growth l.jpg

The forgotten role of the Internet and economic growth

  • The web is not only a network where we can download free software and music, dvd, and video games.

  • Its main forgotten role is probably as a new system of distribution of goods and services

  • In this distribution the major role is played by the education of the consumer, and the information distribution at first of the variety of goods and services before material distribution of the goods.

  • In doing so new educational, and information goods and services are created.

  • Which in its turn is a great opportunity for wealth creation, reduction of the prices of goods, and absorption of unemployment


Statistics of the internet e commerce usa l.jpg

Statistics of the Internet E-commerce USA

Estimated Quarterly U.S. Retail E-commerce Sales as a Percent of Total Quarterly Retail Sales:4th Quarter 1999–2nd Quarter 2006

Percent of Total


The internet democratizes and globalizes l.jpg

The internet has no hardware constraint of central star-topology structure

It is therefore highly stable in destruction of parts of it and therefore democratic too

The direct site-to-site and server-to-server interactions and the increasing use by all countries makes it global

This globalisation gives a stabilisation and balancing role in the 1st-2nd-3rd worlds with huge intelligence and economic benefits to the less advanced parts of the world.

The Internet Democratizes and Globalizes


Advantages of web based small business l.jpg

Zero mailing costs

Instantaneous delivery

24/7/365

Unlimited expanding customer base from the entire world

Almost zero overhead

Stay home in your t-shirt

Interactive multimedia marketing

Easy to test before you put money

Low cost of failure

Operate from any computer in the internet in the world

Can start almost anyone with little or no money

Upscale , wealthy , intelligent customers

Compatible with everyone's desire: “To do what I want , When I want, Where I want, With whomever I want, Without having to worry about money”

Advantages of Web-based Small Business


Successful eq to overcome unemployment and make your own business l.jpg

According to Napoleon Hill:

We cannot enjoy and be happy with money riches if we have not the other 11 types of riches too:

1)      Positive mental attitude to our goals, and eventually to society

2)      Sound physical health

3)      Harmony in human relations

4)      Freedom from fears

5)      The hope of achievement

6)      The capacity for faith

7) Willingness to share one’s blessings

8)      A labor of love

9)      An open mind to other subjects

10)  Self discipline

11)The capacity to understand people

12)  Economic security

The elements to success are:

1) A strong desire

2) Ability to involve and sustain faith. and hope. This may require to use autosuggestions, learn to reassure and affirm himself, and show compassion and mercy to himself.

3) Specialized knowledge in the goods and services but also in business procedures

4)An organized planthat it is run by cosmic habitforceand personal habitforce

5) Ability of fast decision making and slow change of mind on the initial decisions

6) Persistence in the goals

7) ability to appreciate group power even as self-employed

8) Understanding of the mystery of sex transmutation

9) Freedom from fears and good defense to negative influences of other peoples minds

Successful EQ to overcome unemployment and make your own business


The mind set that perpetuates unemployment and poverty l.jpg

According to Robert Allen:

Having a job is good and ultimately leads to wealth

Saving your money is a good investment

Debt is bad, avoid it like the plague

Security is good

Failure is bad

Wealth is measured in material possessions

The government, my employer, or someone else is responsible for my financial well being

The acquiring of wealth is a win/lose game

It takes money to make money

According to R. Kiyosaki the next is a short list of attitudes that prohibit us from success:

The love of money is the root of all evil

I shall never become rich

Do not risk

   Now it is late

   I am not interested in money

There is not enough money for all to become rich

    Live with utter frugality

   I have a family therefore all I need is a good job

   I do not feel good, I am fat, I am getting old

   They have tried it, you shall never succeed

It is not worth trying it

The mind-set that perpetuates unemployment and poverty


Resources about unemployed individual s eq to succeed financially l.jpg

Resources About Unemployed Individual’s EQ to Succeed Financially

  • Allen G. Robert [1983]“Creating wealth” Fireside book Simon & Schuster

  • Allen G. Robert [2004]“Multiple streams of income” John Wiley and sons, Inc Hoboken N.J.

  • Allen G. Robert [2006]“Multiple streams of internet income. How ordinary people make extraordinary money”

    John Wiley and sons, Inc Hoboken N.J.

  • Emerson W. [1840]Philosophical Essays in www.emersoncentral.com

    Goleman Daniel [1995]“Emotional Intelligence” Bantam books

  • Kiyosaki Robert

  • Lechter Sharon [1997]“Rich dad poor dad”

  • Kiyosaki Robert

  • Lechter Sharon [1998]“Rich Dad’s Cash Flow Quadrant”

  • Kiyosaki Robert

  • Lechter Sharon [1998]“Guide to investing”

  • Kiyosaki Robert

  • Lechter Sharon [2001]“The business school for people who like helping people”

  • Napoleon Hill [1937]“Think and Grow Rich” Editor 2004 Ross Cornwell

  • Napoleon Hill [1965]“The master key to riches” Ballantine books N.Y. Random House Publishing group

  • Napoleon Hill [1967]“Grow Rich with peace of Mind” Fawcett books N.Y. Random House Publishing group

  • Napoleon Hill [1971]“You can work your own miracles” Fawcett books N.Y. Random House Publishing group

  • Paul Zane Piltzer [1995]“God wants you to be rich” Fireside book Simon & Schuster

  • Paul Zane Piltzer [2002]“The wellness revolution” John Wiley and sons, Inc

  • Stanley T. Ph.D.

  • Danko W. Ph.D. [1996]“The millionaire next door” Pocket books Simon & Schuster

  • Stanley T. Ph.D. [2001]“The Millionaire Mind” Andrews McMeel Publishing, Kansas City


Slide74 l.jpg

The concept of Money as Information in the 21st century: The financial success of the self-employed individualdepends on its moral conception of money


Basic features of the new self employed from home in the web l.jpg

Starts usually as one unemployed or insufficient employed person

Little or no technical knowledge of computers

Almost no initial capital

Discovery or invention of new information services to provide in the public

Discover or invention of new business concepts and procedures not always related to new technologies in the web

Discovery and launching of new Human-Web Interaction psychology

They substitute devotion to the employer with life-long devotion to their customers population

A little above the average successful business make 80,000$-135,000$ per year

Free education or training and free online products to the web consumers, is a most often met characteristic

They participate in the “society of information” revolution that changes humanity and the balance of 1st,2nd, and 3rd world.

Basic features of the new self-employed from home in the web


Key functionalities and features of a successful e commerce site 1 l.jpg

Key functionalities and features of a successful e-commerce site 1

  • 6-TRAFFIC CHANNELS (create or join great traffic)

  • 1)      opted-in mailing list rental (non-Spam)

  • 2)      e-zines (ads), Blog’s subscribed, RSS feed broadcasting

  • 3)      search engines submissions (and ads (SEO)), articles, e-books, testimonials as free publication

  • 4)      free (or paid) classified advertising (in various sites)

  • 5)      free (or paid) links-banners on other sites (word of mouse), but best of all belonging to a large site with already developed high traffic

  • 6)      own affiliate programs


Key functionalities and features of a successful e commerce site 2 l.jpg

Key functionalities and features of a successful e-commerce site 2

  • 7-FUNCTIONALITIES OF THE SITE (to maintain, personal fulfillment, increase traffic, conversion rate, and traffic funnel effect)

  • 1)      world class content in the form of text, sounds, music, pictures, video etc

  • (It may include own products electronic or not, with online payment functionality)

  • Web casting, with videos that can be plaid with windows media player.

  • 2)      free newsletter or e-zine (submitted to directories)

  • 3)      leads generation data base with autoreponder (from freebies, affiliations, e-zine subscription etc)

  • 4)      ads and sponsored links

  • 5)      chat or forum hosting, auction hosting, sub-site-hosting

  • 6)      freebies and free entertainment for visitors (e-books, e-articles, software downloads, coupons, quotes, music fulfillment and gratification mp3, photos, video, games etc)

  • 7)      specialized and local directory search-engine facility and similar information store (other books and e-products affiliations, and sites services.)


Key functionalities and features of a successful e commerce site 3 l.jpg

Key functionalities and features of a successful e-commerce site 3

  • 8-INCOME FLOWS (delivering a synthesis of different services and products)

  • 1)      main products sales , and resellers rights (information services, information financial services, collectively written e-books, email courses, multimedia products, etc)

  • 2)      other’s and own affiliation programs (no merchant account for other’s!) With doublers.

  • 3)      ads, adsense of google

  • 4)      leads: renting –selling-exchanging

  • 5)      joint venture alliances (discount involved through endorsed offers) based on the leads database

  • 6)      auction hosting commissions

  • 7)      from sales of infrastructure tools services (internet marketing consulting, software and site-built etc)

  • 8)      selling equity stocks for partnership, or all the site (like real estate price growth due to astyphilia, also site value growth due to overall web growth)


Resources for models of e business l.jpg

Timmers (1999): Timmers, P. (1999), Electronic Commerce: Strategies and Models for Business-to-Business Trading, John Wiley & Sons Ltd., Chichester, UK.

Slywotzky (1996): Slywotzky, A. J. (1996), Value Migration - How to Think Several Moves Ahead of the Competition., Harvard Business School Press, Boston, MA.

Rappa (2000):Rappa, M. (2000), Managing the Digital Enterprise. URL: http://ecommerce.ncsu.edu/business models.html

Tapscott et al. (2000): Tapscott, D., Ticoll, D. & Lowy, A. (2000), Digital Capital - Harnessing the Power of Business Webs, Nicholas Brealy Publishing, London.

Gordijn et.al (2001):Gordijn, J. & Akkermans, J. M. (2001a), ‘Designing and evaluating e-Business models’, IEEE Intelligent Systems - Intelligent e-Business 16(4), 11–17.

Bollier (1996): Bollier, D. (1996), The Future of e-Commerce, The Aspen Institute, Washington, DC. URL: http://www.aspeninstitute.org/

Porter (2001): Porter, M. E. (2001), ‘Strategy and the Internet’, Harvard Business Review (march), 63–78.

Evans & Wurster (2000): Evans, P. & Wurster, T. S. (2000), Blown to Bits - How the New Economics of

Information Transforms Strategy, Harvard Business School Press, Boston, MA.

Rogers (1995): Rogers, E. M. (1995), Diffusion of Innovations, Free Press, New York, NY.

Resources for models of e-business


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Figure 8: Net Employment Change for Private Sector Employees and Self-Employment, Year-to-Year (Thousands), 1977-2002 : Self-employment is more stable! :Canada


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Finally we describe remarkable cases from unemployment to successful innovative e-business in

a) New Internet marketing techniques: Joint venture alliance

b) New information products and services: Affiliation programs and Sites of Content

c) Web Advertising

d) Information technology tools:Enablers

e) Retail e-commerce:Auctions

Remarkable cases of successful e-businesses


The best example of the win win philosophy joint venture alliance in marketing all parts win l.jpg

“Become the best-man of the wedding of two non-competitive professions” No money needed!

Ads response rate without endorsed offer 1%-3%

With endorsed offer 33%!

Profit increase from the overlooked asset: 300%!

Participants: 1st businessman with good customer DB giving the endorsed offer

2nd businessman giving the discount

The customers winning the discount

The introducing consultant

Example:

Mike Enlow now a marketing guru in www.enlow.com made many million dollars in this win-win way, and helped thousands of other to make money too!

The best example of the win-win philosophy:Joint venture alliance in Marketing; all parts win


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Affiliation programs are in the web as the MLM marketing in the direct human contacts marketing

Examples: www.affiliatesdirectory.com

www.refer-it.com

www.associateprograms.com

www.clicquick.com

Advantages:

Easy

Makes money fast

Many programs at the same time

Free marketing training and tools

The new marketing process:

CONTENTTRAFFIC

PRESELLMONETIZATION

Affiliation programs and Sites of Content:New methods of free and generous Internet Marketing


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Cases:

Discovering the absence of a directory in the web gives more than 100,000 per year, Ruth Townsend: www.directoryofezines.com

Discovering and selling new strategies of learning ,Pat Wyman:

www.HowToLearn.com

Discovering and selling online techniques of hand-made Jewellery, Preston Reuther :

www.wire-sculpture.com

Selling information: Inventing and discovering new information products and services as an example of the complementarily principle


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Information Relevancy and adsense of Google (you are paid to have relevant references by google search engine)

Pay per click (you pay to put such references in google, and google’s adsense)

Examples of ad services:

www.drnunley.com

www.TheAdStop.com

ValueClick.com delivers ads to 30% of US web users, Banners are seen from over 10,200 sites, by 14 million people

Measuring site’s audience:

www.WebTrendsLive.com

information :100000-150000$ per year.

E-zines (newsleters)

Usual rate for banners:12$-35$

Usual rate for e-zine 50 words classified ad:5$-40$

Usual income from a 14,000 subscribers e-zine ads:1000$-2000$ per month

New forms of advertising in the Web 1


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Selling information

Car-dealer cost info

15$ info price

2000$ DB costs

100000 per year

www.marketingtips.com

Selling advertising:

Free information

300000 traffic per month

Road&Track , Motor Trend, magazines

35000$ ad price per month

20% of the business=

1million dollars

Advertising in the Web 2


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Types of Enablers:

Internet Service Provider (ISP)

Web hosting

Web design

Autoresponders

Listservers

E-Shopping carts

Credit card services

Web site statistics

Product design

Warehousing

Shipping

Advertising

Copywriting

Marketing Strategy

Joint ventures

Examples:

http://www.marketingtips.com/mailoop

http://www.milliondollarsystem.com

Enablers:Selling Internet tools for e-businesses


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What is sold:

Books, Toys, Clothing, Shoes, Jewelry, Albums,CD’s, DVD’s, Video games, Old gifts, anything, etc

The money is sent first

Payments through credit cards, Paypal, email, eBay’s Billpoint, checks, money orders, cash by mail.

It usually requires a web page e.g. in eBay and an auction ad

Method to control fraud:

Public feedback system of points

An “about the seller” page with photo

Detailed in advance description of the shipping method

Many types of auctions (e.g. Dutch auctions with multiple items to sell)

Duration of auction : usually one week

Usual price range 0-100$

http://www.ebay.com

Internet Auctions:”Most people take gold and make it trash, I take trash and make it gold”


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The e-code by Joe Vitale-Jo Han Mok

John Wiley 2005

E-myth mastery By Michael Gerber HarperBusiness 2005

Multiple Streams of Internet Income by Robert Allen, John Wiley 2006

EMoney: The Complete Guide To Using The Internet To Profit From Home by Dr. Jeffrey Lant

At http://www.worldprofit.com/ebook/

Resources for e-business


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PART 2 1) We analyze the requirements and advantages of small e-business for a self-employed.

2) We analyze all the necessary spirit, mind-set , beliefs, and emotional intelligence about money, success in goals, risk, and business socialization, for the individual

These elements may be a radical change to a new type of subjectivity compared to the standard of the past of a typical employee that is compensated for his duration rather than his innovation

3) We give a detailed technical description of the functionalities and features that are required for a successful site in e-business

4) Finally we describe remarkable cases from unemployment to successful innovative e-business in

a) New Internet marketing techniques

b) New information products and services

c) Web Advertising

d) Information technology tools

e) Retail e-commerce

Detailed Retrospection of the Presentation : Techniques for Self-employment in the web


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We have analyzed the long-term main causes of unemployment which is transformational growth through technological innovation

We have proved that this transformation to be at the benefit of most is to be carrier out with win-win interactions rather than win-lose that make unemployment worse

We have shown that the Internet is a very important element of the technology transformation, and is therefore where new jobs are to be created.

Therefore we indicate that in addition to better social help at times of unemployment the main focus should be in the creation of new types of jobs in the Internet

In the new economy of the 21st century more and more individuals must improve their self-reliance in health

insurance, retirement plans, psychological confidence, and business success.

The 21st century economics tend to amore abrupt shape of the pareto curve, where a smaller minority of even larger organizations appear, together with a larger majority of smaller enterprises or self-employer individuals

We have indicated how it is created a new individual’s EQ for business success together with entirely new psychology of human-web interaction.

In addition ,entirely new techniques of site features and site functionality is introduced, together with remarkable innovations of new information services parallel with great financial success.

Review and Conclusions


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