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IS Undergrads Class 19

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IS Undergrads Class 19

  1. 1. MEASURING OCE Unique visitors; Page views; Session time; Click-throughs; ... measure the Registered members; community’s Frequency of postings; health but say Read-to-post ratio; little about the community’s value
  2. 2. 3 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 4
  3. 3. Customers online, really Varieties of online customer practice 6
  4. 4. Two types of innovations An innovation is a USER innovation An innovation is a when the developer MANUFACTURER expects to benefit by innovation when the USING it developer expects to benefit by SELLING it. 7 Two types of innovations Users: Functionally novel Manufactures: innovations Improvements First nutrition bar Better tasting nutrition bar 8
  5. 5. First device used in field built by: Innovations % User User Mfg. Affecting Gas 83% 10 2 Chromatography Nuclear Magnetic Resonance 80% 12 3 Spectrometry Ultraviolet 100% 6 0 Spectrophotometry Transmission Electron 72% 44 17 Microscopy Total 77% 72 22 9
  6. 6. 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 Have needs that equally foreshadow general demand in the marketplace Expect to obtain high benefit from a solution to their needs. (Such users are more likely to innovate – “Necessity is Lead the mother of invention!”) users
  7. 7. 13 Exercise New fashion trends start on the street and the high school playground
  8. 8. 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?
  9. 9. Varieties of online customer practice 19 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. (...) Information systems 20 Joao Vieira da Cunha
  10. 10. 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 Information systems 21 Joao Vieira da Cunha “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. “ Information systems 22 Joao Vieira da Cunha
  11. 11. Information systems 23 Joao Vieira da Cunha Varieties of online customer practice 24
  12. 12. 25 F/OSS
  13. 13. What is Free/OS software? Free to copy Free to make derivative works Royalty-free! Free to redistribute Usable by anybody for anything Viral licensing Broad rights
  14. 14. Information systems 29 Joao Vieira da Cunha The numbers 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
  15. 15. The server market 31 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. Information systems 32 Joao Vieira da Cunha

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