IS Undergrads Class 19
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Transcript of IS Undergrads Class 19
MEASURING OCE
Unique visitors;
Page views;
Session time;
Click-throughs;
Registered members;
Frequency of postings;
Read-to-post ratio;
... measure the community’s health but say little about the community’s
value
3
4
ROI: Community members are worth more
• Assisted buy– Forrester: 30% of cummunity members are there to
seek help in buying
• Self-selection of advertising targets– Forrester People are 27 times more likely to respond
to email they volunteered to receive
• Repeat visits– Bain: Value of purchases by repeat visits is 57%
higher than that of first visits
Customers online, really
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Varieties of online customer practice
7
Two types of innovations
An innovation is a MANUFACTURER innovation when the developer expects to benefit by SELLING it.
An innovation is a USER innovation when the developer
expects to benefit by USING it
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Two types of innovations
Users:
Functionally novel
innovations
First nutrition bar
Manufactures:
Improvements
Better tasting
nutrition bar
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First device used in field built by:
Innovations
Affecting% User User Mfg.
Gas
Chromatography83% 10 2
Nuclear Magnetic
Resonance
Spectrometry
80% 12 3
Ultraviolet
Spectrophotometry100% 6 0
Transmission
Electron
Microscopy
72% 44 17
Total 77% 72 22
IM is a User Innovation
• 1987 MIT Lab for Computer Science
had1000s of workstations and
difficulties diffusing system admin info
rapidly. Developed “Zephyr” instant
message system.
• MIT students begin to use for general
instant messaging.
• Other universities adopted Zephyr-like
programs
First Commercial Product 9 years later
• 1996 Israeli firm Mirabilis put out
comml product ICQ
• 1998 Mirabilis acquired by AOL
Not all users are created equally
Expect to obtain high
benefit from a solution to their needs. (Such
users are more likely to innovate – “Necessity is
the mother of invention!”)
Have needs that foreshadow general
demand in the marketplace
Lead
users
13
Exercise
New fashion trends start on the street and the high school playground
Exercise
New fashion trends start on the street and the high school playground
Imagine you are the CEO of Christian Dior, how would you use online communities to capture user innovations in fashion?
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Varieties of online customer practice
Joao Vieira da CunhaInformation systems 20
Network armies...
…are products of the Internet Age, united not by geography but by common cause and technology that lets them communicate freely and instantly. There's no leader, no command and control structure, just a potent ability to mobilize. (...)
Joao Vieira da CunhaInformation systems 21
Network army defined
• Affiliation based on ideology, not geography
• Public communications
• Communities and individuals with disparate agendas, aligning on a common purpose
• “Influencers” vs. formal “leadership” or organizational infrastructure
• Examples: anti-globalization coalition; terrorist networks; bloggers
Joao Vieira da CunhaInformation systems 22
“The marching avatars are digital simulacra of today's exploited masses of neoliberalism: précaires, precari@s, precari, cognitarie, contingent knowledge and service workers.We are a mixed bunch, a heterogeneous multitude of precarious jobs and lives. Yet we have not spawn out of fordist assembly chains, but out of dystopian retail chains and office spaces. “
Joao Vieira da CunhaInformation systems 23
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Varieties of online customer practice
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F/OSS
What is Free/OS software?
Free to copy
Free to make derivative works
Free to redistribute
Usable by anybody for anything
Royalty-free!
Broad rightsViral licensing
Joao Vieira da CunhaInformation systems 29
SourceForge
The largest home for open Source Projects
.8 Million Users / 75 Thousand Projects
1 Million Emails a day
Market Cap? Redhat $3 Billion, Yahoo $40B
UK municipalities are increasingly on OpenOffice
The numbers
31
The server market
Joao Vieira da CunhaInformation systems 32
The potential of OpenSource
• No Scarcity of Talent
– The entire planet
• No Scarcity of Ideas
– Ideas aren’t scarce
– What’s scarce is people in the right context
• No Scarcity of Effort
– to debug, polish, document.