From eCommerce to eCommerce 2.0 - The Changing Role of the Customer

From eCommerce to eCommerce 2.0 - the Changing Role of the Customer Liberec Informatics Forum 4th November 2010 Hans-Dieter Zimmermann FHS St. Gallen, University of Applied Sciences www.hdzimmermann.net This presentation is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 2.5 Switzerland License http://creativecommons.org/licenses/by-nc-sa/2.5/ch/

FHS eSociety – Interdisciplinary Research Group on eSociety www.esociety.net 2

Goals Taking a broader perspective:  Overview of the developments of electronic markets and electronic commerce in the last two decades Examples for eCommerce 2.0 applications Focus on users’ perspective 3

Agenda Emergence of Electronic Markets The eCommerce Pioneers The Customer in the Center: eCommerce 2.0  Five concepts Conclusions 4

Emergence of Electronic Markets or How it Began 5

The World Wide Web You remember? There was a life before the Web! The Web started only in August 1991 ! http://www.flickr.com/photos/27443865@N08/ 6

Electronic Market Hypothesis CACM paper June 1987 Based on Transaction Cost Economics Main idea: More market-like coordination Malone, Thomas; Yates, Joanne; Benjamin, Robert I.: Electronic markets and electronic hierarchies, Communication of the ACM 30, 484-497 (1987) 7

Move to the Market - Hypothesis 8 Malone, Thomas; Yates, Joanne; Benjamin, Robert I.: Electronic markets and electronic hierarchies, Communication of the ACM 30, 484-497 (1987)

Electronic Markets Newsletter SSCI listed journal September 1991 Vol 20 (2010) 9

A Pioneer: The Electronic Mall Bodensee (EMB) Bottom Up development of an electronic marketplace … understood as an open agora … with a strong regional focus … covering parts three countries (Austria, Germany, and Switzerland) ... by regional initiatives.  First electronic marketplace in Europe with a strong regional focus First Online June 1995 10

The eCommerce Pioneers 11

1995 - Amazon Start as an Online bookseller Today:  Online shopping center  Market platforms for  Consumers and  Businesses

1995 - eBay Start as an Online auction based marketplace („flea market“) Today: marketplace for  C2C and B2C  Auctions  Fixed prices  New products 13

Changing Value Creation in the Digital Economy: Changing Value Creation Structures: New Intermediaries

New Intermediaries Changing Value Creation Structures: [Sarkar, Mitra; Butler, Brian; Steinfield, Charles: Intermediaries and 15 Cybermediaries, JCMC - Journal of Computer-Mediated Communication , Vol. 1 (1995), No. 3]

Changing Value Creation Structures: New Intermediaries [Sarkar et al. 1995] 16

Changing Value Creation in the Digital Economy: Changing Value Creation Processes: The Integration of Customers into Value Creation

The Integration of Customers into Value Creation Supplier Wholesaler Retailer Customer Traditional Value Chain  ‘Production’  Need Inter- Customers Future (?) mediary  Solution 18

The Integration of Customers into Value Creation eBay  Individual as seller or buyer  Through ratings the individual contributes to the business partner’s profile  new responsibility Amazon  Evaluation of products  Individual Recommendations  Affiliate program  …  the individual as co-creator of services 19

The Customer in the Center: eCommerce 2.0

1. Comments, Evaluation, Recommendations, … Individuals can give feedback on any transaction  Product related  Business partner related 21

1. Comments, Evaluation, Recommendations, … 22

1. Comments, Evaluation, Recommendations, … [http://faz-community.faz.net/blogs/netzkonom/archive/2008/11/23/marketing-im-web-2-0.aspx]

[http://faz-community.faz.net/blogs/netzkonom/archive/2008/11/23/marketing-im-web-2-0.aspx]

http://www.flickr.com/photos/ross/3941293767/ 2. Social Software  Engage people  Connect people Weblogs Microblogs (Twitter, …) Wikis Social Network Services (Facebook, LinkedIn, XING, …) … location based SNS (Foursquare, Gowalla, …) Social Bookmarking (del.icio.us, …) … for scholarly references (BibSonomy, CiteULike, Mendeley, …) Social Music (blip.fm, spotify, simfy, …) Social Shopping Social Media Sharing (Flickr, Youtube, …) SocialTV … http://www.flickr.com/photos/thbernhardt/2984100802/ 27

Social Software Options Matrix http://www.flickr.com/photos/vanderwal/3364627666/ 28

Social Software Value Matrix 29 http://www.flickr.com/photos/ross/3486654131/

2. Social Software – Social Networks: Facebook Create your community http://www.facebook.com/adidasoriginals 30

3. Crowdsourcing Utilizing the intelligence of the masses Outsourcing of tasks  Brainstorming, design, funding, … http://www.flickr.com/photos/beansandgrapes/4196948772/ Examples  spreadshirt.de  Starbucks Idea (mystarbucksidea.force.com)  IdeaStorm (Dell) (www.ideastorm.com)  Library of Congress & Flickr (www.loc.gov/rr/print/flickr_pilot.html)  … Platforms  atizo.ch, bonspin.de, ideabounty.com, … 31

3. Crowdsourcing - Example www.thejohnnycashproject.com 32

4. Mass Customization Combining  individualization of products and  efficiencies of mass production Examples  Books (pegastar.com)  Watches (121time.com)  Shirts (dolzer.de)  Parts (emachineshop.com)  Sport shoes http://nikeid.nike.com 33

Mass Customization - Example 34 http://www.myswisschocolate.ch/

5. The Long Tail

‚Web 2.0‘ – The Long Tail (Chris Anderson, 2004, www.wired.com/wired/archive/12.10/tail.html) The Three Forces of the Long Tail  Force 1: Democratize the tools of production  Force 2: Democratize the tools of distribution  Force 3: Connect supply and demand

Conclusions

The role of the customer has changed dramatically in the last two decades Web 1.0: Customers at the end of the one-way digitalized value chain Web 2.0: Customers can actively participate in value creation in different stages and roles such as expert, consultant, designer, or seller.  Consumers are at eye-level with suppliers  … take responsibilities  … needs media and information literacy 39

… and another pioneer: The 24th Bled eConference eFuture: Creating Solutions for the Individual, Organisations and Society June 12-15, 2011 http://BledConference.org Faculty of Organizational Sciences, University of Maribor Government of the Republic of Slovenia European Commission

Contact Hans-Dieter Zimmermann FHS St. Gallen University of Applied Sciences Institute for Information and Process Management IPM-FHS Teufener Strasse 2, 9000 St. Gallen, Schwitzerland Tel. +41 71 228 7650, Mobil +41 76 220 1105 hansdieter.zimmermann@fhsg.ch www.esociety.net , @FHS_eSociety www.fhsg.ch/ipm www.hdzimmermann.net, blog.hdzimmermann.net, @hdzimmermann

From eCommerce to eCommerce 2.0 - The Changing Role of the Customer

by Hans-Dieter Zimmermann on Nov 04, 2010

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