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The Individual in the Information Society:
  A Summary of Recent Developments


       30th Jubilee International Conference
       on Organizational Science Development
             Portorož, 23. March 2011

             Hans-Dieter Zimmermann
      FHS St. Gallen, University of Applied Sciences,
                   St. Gallen, Switzerland
                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/
Agenda

The Web: From 1991 until today

General Developments on different levels

Emergence of Electronic Markets

The eCommerce Pioneers

The Customer in the Center: eCommerce 2.0
   Five concepts


Conclusions

                                            2
The World Wide Web – still a Teenager




Do you remember?

There was a life
before the Web !

The Web started
only in August 1991 !

                        http://www.flickr.com/photos/27443865@N08/



                                                                     3
The E-Business Hype Cycle




                            Seite 4
http://www.flickr.com/photos/27048731@N03/3764657489/



                                                                  The Web Developments




Seite 5
… and Today

The Web is part of our daily life
 … at work, at home, on the road
 … as employer, as mom and dad, as consumer, a citizen, as patient,
  … basically in any role we can take

 … the respective infrastructures are available

Emergence of Web 2.0 and Social Media




                                                                       6
http://www.flickr.com/photos/popoever/234877734/




7
http://www.flickr.com/photos/fredcavazza/2564571564/
Web 2.0 and Social Media:

It‘s not about tools and technology!

It‘s about behavior!

… on the
  Societal
  Organizational
  Individual
Level
                               http://www.flickr.com/photos/pigatto/332193181/
                                                                         9
Societal Level –
   (1) Facebook-/Twitter- Revolutions in the Arab World …




http://www.facebook.com/photo.php?fbid=10150435486980651



                                                           http://www.facebook.com/photo.php?fbid=1850044009242

                                                                                                            10
Facebook-/ Twitter - Revolutions …




                                                 http://www.flickr.com/photos/syoung/3955230375/
… the right term?

No!

Revolutions are initiated
by people who fight for their rights

but …

(Social) Media support people in terms of
coordination, organizing, communication


                                            11
http://www.facebook.com/home.php?sk=gr
oup_200863076591392&ap=1
                                         „e-Egypt Party“
The fear of the mighty …




http://www.facebook.com/photo.php?fbid=490028917075
Societal Level –
(2) Open, transparent, participatory societies
The Web as Enabler for
     eGoverment
     eParticipation
     eInclusion
     eDemocracy
     …


… for new civil societies

… (primarily) in western countries



                                     http://www.flickr.com/photos/oxfam/3982928597/

                                                                                 14
Open Goverment: USA




http://www.whitehouse.gov/open
                                 15
Open Goverment: UK
http://data.gov.uk/




                      16
eZurich - eParticipation

                  The eZürich Ideas Competition collected >600 ideas
http://www.ezurich.ch/en




                                                                       17
City of St. Gallen –
 Social Media & eParticipation




http://www.stadt.sg.ch
                                 18
City of St. Gallen – MySG.ch

 A Facebook like community platform for citizens




http://mysg.ch
                                                   19
Organizational Level

Major steps of ICT application within and
across organizations
                                                1960s
 Automation and improvements in efficiency

 Electronic Data Interchange (EDI)

 Interorganizational Systems (IOS)

 eBusiness and Supply Chain Management (SCM)

                                                today
 Enterprise 2.0

                                                        20
Individual Level

Major steps of ICT utilization through individuals

 Automated Teller Machines (ATM)                                    1980s


 Online Networks for Consumers
   Compuserve, Videotex, Bildschirmtext, Minitel, Prodigy, AOL, …


 Personal Computer (PC)

 World Wide Web (WWW)

                                                                     today
 Web 2.0 and Social Media

                                                                             21
Individual Level

Major areas of ICT utilization through individuals

                                                      1990s
 eCommerce                             Consumer



 eGoverment, e.g., eTax                  Citizen
 eHealth                                 Patient

 eHealth 2.0                            ePatient
 eDemocracy and eParticipation         Citizen 2.0
                                                      today


                                                              22
A Major Trend on the Individual Level:
Selftracking and Selfmonitoring (Personal Informatics)

Individuals track personal data
 to monitor personal activities
 to share their data with
   Friends on social networks
   Doctors


 Enabling Self Management
   For people having chronic diseases
   For people to stay healthy and active




                                                         23
Selftracking and Selfmonitoring




 http://www.fitbit.com


                                  24
http://www.fitbit.com
                                                                                Selfmonitoring
                                                                                Selftracking and




                        http://blogs.forbes.com/kashmirhill/2011/02/25/adventures-in-
25




                        self-surveillance-fitbit-tracking-my-movement-and-sleep/
Selftracking and Selfmonitoring


   “ithlete - new heart rate technology
   that tells you when to train and when to rest”

   Calculates recommendations based on the
   Heart-rate variability (HRV)




http://www.myithlete.com/                           26
The ePatient

 Equipped with the skills to manage their own condition.
 Enabled to make choices about self-care and those choices are
  respected.
 Empowered
 Engaged patients are engaged in their own care
 Equals in their partnerships with the various physicians involved in
  their care
 Emancipated
 Expert patients can improve their self-rated health status, cope better
  with fatigue and other generic features of chronic disease such as
  role limitation, and reduce disability and their dependence on hospital
  care.


                                                                        27
Emergence of Electronic Markets
              or
        How it Began
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)


                                                                                                29
Electronic Markets




        Newsletter     SSCI listed journal
      September 1991     Vol 20 (2010)
                                             32
Also the Bled eConference started in 1987




                                            http://bledconference.org
                                            33
The eCommerce Pioneers
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




                                                               36
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-                                Emerging
                                                        Customers
                                 mediary                              Value Network

                                            Solution




                                                                                41
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

                                                   42
The Customer in the Center: eCommerce 2.0
1. Comments, Evaluation, Recommendations, …

Individuals can give feedback on any transaction
   Product related
   Business partner related




                                                    44
1. Comments, Evaluation, Recommendations, …




                                          45
1. Comments, Evaluation, Recommendations, …




                                          46
1. Comments, Evaluation, Recommendations, …




                                          47
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/
                                                                                                         50
Social Software Value Matrix




52




     http://www.flickr.com/photos/ross/3486654131/
2. Social Software – Social Networks: Facebook

Create your community




http://www.facebook.com/adidasoriginals

                                                 53
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, …


                                                                                                       54
3. Crowdsourcing - Example




                             www.thejohnnycashproject.com

                                                       55
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
                                      56
4. Mass
  Customization




                                        http://nikeid.nike.com/nikeid




http://shop.adidas.de/miadidas
                                      mongolianshoebbq.puma.com
http://www.miadidas.com/Main.action                                Seite
                                                                     57
Mass Customization - Example




58




     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
61
Conclusions
The role of the individual has changed
dramatically in the last two decades
Web 1.0: Individuals are at the end of the
one-way digitalized value chain
Web 2.0: Individuals are able to actively
participate in value creation in different
stages

 Citizens, Patients, Consumers
 … are at eye-level with their partners
 … have to take responsibilities for
  themselves and for others
 … need media and information literacy
                                             63
„Wir teilen Informationen und
unterschätzen doch ihre Macht“

(We share information
but underestimate their power)

                                     Yasuhisa Hasegawa,
                                 Blogger from Tokio, Japan
                                       [FAZ.net 23.3.2011]



                                                         64

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The Individual in the Information Society: A Summary of Recent Developments 

  • 1. The Individual in the Information Society: A Summary of Recent Developments 30th Jubilee International Conference on Organizational Science Development Portorož, 23. March 2011 Hans-Dieter Zimmermann FHS St. Gallen, University of Applied Sciences, St. Gallen, Switzerland 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/
  • 2. Agenda The Web: From 1991 until today General Developments on different levels Emergence of Electronic Markets The eCommerce Pioneers The Customer in the Center: eCommerce 2.0  Five concepts Conclusions 2
  • 3. The World Wide Web – still a Teenager Do you remember? There was a life before the Web ! The Web started only in August 1991 ! http://www.flickr.com/photos/27443865@N08/ 3
  • 4. The E-Business Hype Cycle Seite 4
  • 6. … and Today The Web is part of our daily life  … at work, at home, on the road  … as employer, as mom and dad, as consumer, a citizen, as patient, … basically in any role we can take  … the respective infrastructures are available Emergence of Web 2.0 and Social Media 6
  • 9. Web 2.0 and Social Media: It‘s not about tools and technology! It‘s about behavior! … on the  Societal  Organizational  Individual Level http://www.flickr.com/photos/pigatto/332193181/ 9
  • 10. Societal Level – (1) Facebook-/Twitter- Revolutions in the Arab World … http://www.facebook.com/photo.php?fbid=10150435486980651 http://www.facebook.com/photo.php?fbid=1850044009242 10
  • 11. Facebook-/ Twitter - Revolutions … http://www.flickr.com/photos/syoung/3955230375/ … the right term? No! Revolutions are initiated by people who fight for their rights but … (Social) Media support people in terms of coordination, organizing, communication 11
  • 13. The fear of the mighty … http://www.facebook.com/photo.php?fbid=490028917075
  • 14. Societal Level – (2) Open, transparent, participatory societies The Web as Enabler for  eGoverment  eParticipation  eInclusion  eDemocracy  … … for new civil societies … (primarily) in western countries http://www.flickr.com/photos/oxfam/3982928597/ 14
  • 17. eZurich - eParticipation The eZürich Ideas Competition collected >600 ideas http://www.ezurich.ch/en 17
  • 18. City of St. Gallen – Social Media & eParticipation http://www.stadt.sg.ch 18
  • 19. City of St. Gallen – MySG.ch A Facebook like community platform for citizens http://mysg.ch 19
  • 20. Organizational Level Major steps of ICT application within and across organizations 1960s  Automation and improvements in efficiency  Electronic Data Interchange (EDI)  Interorganizational Systems (IOS)  eBusiness and Supply Chain Management (SCM) today  Enterprise 2.0 20
  • 21. Individual Level Major steps of ICT utilization through individuals  Automated Teller Machines (ATM) 1980s  Online Networks for Consumers  Compuserve, Videotex, Bildschirmtext, Minitel, Prodigy, AOL, …  Personal Computer (PC)  World Wide Web (WWW) today  Web 2.0 and Social Media 21
  • 22. Individual Level Major areas of ICT utilization through individuals 1990s  eCommerce Consumer  eGoverment, e.g., eTax Citizen  eHealth Patient  eHealth 2.0 ePatient  eDemocracy and eParticipation Citizen 2.0 today 22
  • 23. A Major Trend on the Individual Level: Selftracking and Selfmonitoring (Personal Informatics) Individuals track personal data  to monitor personal activities  to share their data with  Friends on social networks  Doctors  Enabling Self Management  For people having chronic diseases  For people to stay healthy and active 23
  • 24. Selftracking and Selfmonitoring http://www.fitbit.com 24
  • 25. http://www.fitbit.com Selfmonitoring Selftracking and http://blogs.forbes.com/kashmirhill/2011/02/25/adventures-in- 25 self-surveillance-fitbit-tracking-my-movement-and-sleep/
  • 26. Selftracking and Selfmonitoring “ithlete - new heart rate technology that tells you when to train and when to rest” Calculates recommendations based on the Heart-rate variability (HRV) http://www.myithlete.com/ 26
  • 27. The ePatient  Equipped with the skills to manage their own condition.  Enabled to make choices about self-care and those choices are respected.  Empowered  Engaged patients are engaged in their own care  Equals in their partnerships with the various physicians involved in their care  Emancipated  Expert patients can improve their self-rated health status, cope better with fatigue and other generic features of chronic disease such as role limitation, and reduce disability and their dependence on hospital care. 27
  • 28. Emergence of Electronic Markets or How it Began
  • 29. 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) 29
  • 30. Electronic Markets Newsletter SSCI listed journal September 1991 Vol 20 (2010) 32
  • 31. Also the Bled eConference started in 1987 http://bledconference.org 33
  • 33. 1995 - Amazon Start as an Online bookseller Today:  Online shopping center  Market platforms for  Consumers and  Businesses
  • 34. 1995 - eBay Start as an Online auction based marketplace („flea market“) Today: marketplace for  C2C and B2C  Auctions  Fixed prices  New products 36
  • 35. Changing Value Creation in the Digital Economy: Changing Value Creation Processes: The Integration of Customers into Value Creation
  • 36. The Integration of Customers into Value Creation Supplier Wholesaler Retailer Customer Traditional Value Chain  ‘Production’  Need Inter- Emerging Customers mediary Value Network  Solution 41
  • 37. 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 42
  • 38. The Customer in the Center: eCommerce 2.0
  • 39. 1. Comments, Evaluation, Recommendations, … Individuals can give feedback on any transaction  Product related  Business partner related 44
  • 40. 1. Comments, Evaluation, Recommendations, … 45
  • 41. 1. Comments, Evaluation, Recommendations, … 46
  • 42. 1. Comments, Evaluation, Recommendations, … 47
  • 43. 1. Comments, Evaluation, Recommendations, … [http://faz-community.faz.net/blogs/netzkonom/archive/2008/11/23/marketing-im-web-2-0.aspx]
  • 45. 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/ 50
  • 46. Social Software Value Matrix 52 http://www.flickr.com/photos/ross/3486654131/
  • 47. 2. Social Software – Social Networks: Facebook Create your community http://www.facebook.com/adidasoriginals 53
  • 48. 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, … 54
  • 49. 3. Crowdsourcing - Example www.thejohnnycashproject.com 55
  • 50. 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 56
  • 51. 4. Mass Customization http://nikeid.nike.com/nikeid http://shop.adidas.de/miadidas mongolianshoebbq.puma.com http://www.miadidas.com/Main.action Seite 57
  • 52. Mass Customization - Example 58 http://www.myswisschocolate.ch/
  • 53. 5. The Long Tail
  • 54. ‚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
  • 55. 61
  • 57. The role of the individual has changed dramatically in the last two decades Web 1.0: Individuals are at the end of the one-way digitalized value chain Web 2.0: Individuals are able to actively participate in value creation in different stages  Citizens, Patients, Consumers  … are at eye-level with their partners  … have to take responsibilities for themselves and for others  … need media and information literacy 63
  • 58. „Wir teilen Informationen und unterschätzen doch ihre Macht“ (We share information but underestimate their power) Yasuhisa Hasegawa, Blogger from Tokio, Japan [FAZ.net 23.3.2011] 64