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Business and Social Webs Goals of this chapter Understand the importance of „asking WHY“ in the context of web-based systems. Learn various motivations for ePresence Overview on options or archetypes for business- and social webs

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goals of this chapter
Goals of this chapter
  • Understand the importance of „asking WHY“ in the context of web-based systems.
  • Learn various motivations for ePresence
  • Overview on options or archetypes for business- and social webs
  • Understand criteria for decision about web archetypes and marketing strategies in the context of businesses
  • Get some insight into virtual communities
context of business webs
Context of Business Webs
  • Def.: Business Model (Timmers, 1999)An architecture for product, service, and information flows, including a description of the :
    • various business actors and their roles
    • potential benefits for the various business actors
    • sources of revenue.
context of business webs4
Context of Business Webs
  • E-Business Webs are part-of an organization's information system
  • Business Webs help people to follow their business strategies
  • Social Webs support people in reaching goals
context e presence planning questionnaire 1
Context: (e-) Presence PlanningQuestionnaire (1)

General business planning:

  • What is the organization's mission?
  • What are the resulting goals?
  • What is the organization's core business?
  • What are the products and services?
  • What are the sources of revenue?
  • What are the benefits to the participating actors?
  • Who are the customers or addressees?
  • Who are the competitors?
  • What is the organizations marketing strategy, or how to compete?
context e presence planning questionnaire 2
Context: (e-) Presence PlanningQuestionnaire (2)

Planning of e-presence:

  • What are the goals of e-presence?
  • What major difference shall it make?
  • Where can we start and where are we heading to?
  • What are the costs and benefits to each participating actor?
  • What are the major obstacles and risks, what is the effect of compromising e-presence?
business web archetypes
Business Web Archetypes

E-shop: simplest solution

  • Features:
    • Web that supports “normal“ business,
    • Least resistance
    • Customer support
    • Cost/benefit ratio
    • Competitors‘ influence
    • Often in combination with more advanced services
business web archetypes adapted from tapscott et al 2000 p 28
Business Web Archetypes (adapted from Tapscott et al. 2000, p. 28)

Self-organizing

C

o

n

t

r

o

l

Hierarchical

Agora

Alliance

Value Chain

Aggregation

Low Value Integration High

aggregation
Aggregation
  • The Aggregation business-web enables a flow of goods and services between producers, creating value for both.
  • Example: Financial service site offering: savings, mortgage, credit card, insurance products (e.g. Egg)
  • Beginning: often e-shop to which third party products are added.
  • Aggregator acts as intermediary adding value to end customer as well as third party supplier.
aggregator

Customer

Producer

Customer

Aggregator

Producer

Customer

Producer

Aggregator
aggregator11
Aggregator
  • Features:
  • Assists the customer in finding the best price
  • May reward loyal customers by giving discounts
  • Key requirement: convenience for customer
  • Final stage is fulfillment: transaction is processed; works best for intangible products such as insurance
  • Application areas: financial services, tourism, theatre industry
agora auction
Agora (Auction)
  • The Agora is a business-web where buyers and sellers come together to negotiate and assign value to goods. A price discovery mechanism allows buyers and sellers to be matched and to carry out exchanges.
  • Examples:
    • eBay: consumer to customer sell-side auction site
    • FreeMarkets: buy-side auction site
agora auction13

buyer

seller

seller

buyer

buyer

Price-

Discovery

Mechanism

seller

seller

buyer

Agora (Auction)
agora auction14
Agora (Auction)
  • Features:
    • Particularly appropriate for perishable goods, such as flight seats, theatre tickets, etc.
    • Allows the creation of markets
    • Dynamic pricing mechanism to improve performance
value chain
Value Chain
  • In the value chain an organization integrates multiple steps of the value chain and exploits the information flows between the stages.
  • All of the partners act like one enterprise to create value, e.g. shorter delivery, customization, customer support, for the customer through information sharing and cooperation.
value chain16

Integrator

Producers

Customers

Value Chain
value chain17
Value Chain
  • Examples:
    • Motor industry: customer demands pull cars through a supply network
    • Computer industry: Cisco builds the networking infrastructure that powers the web. Cisco designs the core technologies and manages partner relationships. Most of manufacturing, selling, and support are done by partners, but Cisco provides the context for integration.
    • Theatre Industry: Production companies, artists, playwrights, agents, and theatres can be brought together. Customer participation during the creation of performance schedules can be achieved.
alliance
Alliance
  • In an alliance a “product“ is produced through a community of prosumers.
  • A prosumer is both producer and consumer.
  • Example: OSS Open Source Software; Industrial strength software, e.g. Linux, is produced by organizations and individuals that contribute code to Linux and use the software to support their businesses.
    • Contributors are not paid for their contributions
    • the resulting software can be used free of charge
alliance19

Prosumers

Prosumers

Prosumers

Prosumers

Alliance
alliance20
Alliance
  • Another example: FriendsReunited
    • Goal: put people in touch with old school friends
    • No traditional advertising and marketing
    • June 2001: 191.000; Oct. 2001: 2 Mio users
    • Subscription fee: 5 £.
  • Features:
    • Critical mass required
    • Virtuous (reinforcing) and vicious circles
    • Discuss what makes alliances work
virtual communities
Virtual Communities
  • Virtual Communities are social aggregations of people who carry on public discussions with sufficient intellectual incentives and human feeling to form webs of personal relationships in cyberspace.
  • A virtual community has the capacity to integrate content and communication, gives access to competing publishers and consumers and promotes member-generated content.
  • Business setting: business networks
virtual community orientation rheingold 2000
Virtual community orientation(Rheingold 2000)
  • Interest-oriented:
    • shared interest on some topic such as sport, music, hobby
    • Support via chat rooms, message boards, discussion groups
  • Relationship-oriented:
    • Shared life experiences
    • Focus on sharing information and opinions and community support
  • Fantasy-oriented:
    • Role playing and imaginary environments
  • Transaction-based
    • Support buying and selling
    • Provide exchange of information and related products
virtual community value creation
Virtual community – value creation
  • Organizers of virtual communities create value by:
    • Taking subscriptions
    • Placing advertising
    • Selling products and services
    • Selling market research data
    • What else?
      • Learning
      • Broadening one‘s perspective
value map
Value Map
  • Visual aid for conceiving a business-web
  • Parties involved: ellipses
  • Flows:
    • Goods and services, revenues
    • Information and knowledge
    • Intangible benefits
value map example
Value Map - Example

Goods, services, revenue

Knowledge

Intangible Benefits

Services

(e.g. accomodation,

restaurants)

services

ECU

Commision

bookings

Production data

preferences

Theatre

Aggregator

Theatre-goer insight

What's on information

ECU payment

Theatres

Market access

orders

ECU payment

Theatre-

goers

Barnd loyalty

ECU commission

Referrals

Seats

tickets

performances

Affiliates

(e.g. Tourist Information

Office)

Ticketing service

marketspace transformation marketspace model dutta and segev 2001
Marketspace transformationMarketspace model(Dutta and Segev, 2001)
  • The marketspace model builds on two dimensions:
    • Technological
      • Interactivity of Internet
      • Connectivity of Internet
    • Strategic
      • 4 P‘s of marketing: product, price, place, promotion
      • Customer relationships (personalization, one-to-one marketing possible)
  • Internet marketing: management of the marketface – the mix of marketplace (real) and marketspace (virtual)
marketspace transformation marketspace model dutta and segev 200127

Product

Price

Customer

Relationships

Interactivity

Connectivity

Promotion

Place

Marketspace transformationMarketspace model(Dutta and Segev, 2001)
to think about
To think about
  • Examples for business webs and discussion what they achieve and what could be improved.
  • Draw value maps for prospective business/social webs, e.g. our eLearning solution, the community UniLearn, the InterdisPraktikum application or the web you just dream about to construct.
  • What motivations might you have to start a virtual community or to participate in one? What could be the added value for you?
to contribute
To contribute
  • Which components and functions should a virtual community (of a predefined orientation) have? Suggest a class diagram for a virtual community.
  • Specify the workflow you suggest to start a virtual community (of a predefined orientation) and to keep it alive.
for discussion
For discussion
  • Humans have a need to communicate – what implications does this have for virtual communities or for the Internet?
  • The Internet: a promoter or inhibitor of real relationships?
  • Cooperation via Internet: More or less effective than face-to-face cooperation, or what makes eCooperation a valuable complement to real cooperation?