INFS1602 - Lecture Slides - Week 03 - Updated

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Business School

Information Systems, Technology and Management

INFS1602 INFORMATION SYSTEMS IN BUSINESS

Week 3 Enabling Commerce using the Internet

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Organised by the Centre for Innovation and Entrepreneurship (CIE) at the Business School, this is a unique opportunity for you to develop real-life entrepreneurial skills you’ll need to bring an innovation to market. First prize: $15,000 Second prize: $7,500 Third prize: $5,000 Plus prizes for best technology, greatest social impact and people’s choice awards. Register now to find out more at the info evening on 19th August 2015 (5-7 pm): www.business.unsw.edu.au/pfcup

The Peter Farrell Cup 2015 - Student Entrepreneurship Competition

Do you have a great business idea that you would like to bring to life?

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q  I have to travel to Copenhagen Business School for an important research trip

q  Lectures in Week 04, Week 05, and Week 06 will be covered by Ms. Christine Van Toorn and Ms. Chona Ryan

q  I will be back for lectures in Week 07

q  My consultation sessions (Wednesdays 1430hrs - 1530hrs) will still be covered by Chona for these weeks in addition to her own sessions (Mondays 1100hrs -1300hrs)

q  Please make use of these sessions to clarify any questions you have about the Assignment

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Housekeeping

q  READ and BRING WRITTEN SUMMARIES of the following:

1.  Who’s Going Mobile: Mobile Payments (pp. 93 of the textbook) + Conduct some additional research on current state of Mobile Payment. (some examples include www.paym.co.uk, www.zapp.co.uk, www.bitpesa.co, www.coinjar.com, www.dropletpay.com)

2.  Amazon vs. Walmart: Which Giant will Dominate e-Commerce (pp.

111-112 of textbook)

q  Bring your laptop/writing material to workshop

q  Be prepared to analyze and work on discussion questions that will be posted during Workshops

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Week 4 Workshop

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•  Quiz 01, 10 MCQs with 4 choices each – Covers Chapter 1, Chapter 2 and Chapter 3.

•  Quiz 01 will open on Moodle on Monday 17 August 2015 at 0900hrs and close on Friday, 21 August 2015 at 1700hrs

•  No supplementary quiz allowed after the quiz closes •  3 attempts allowed for Quiz 01: Only the highest score will be

recorded and revealed when the quiz closes on Friday.

•  Questions are randomized for each attempt

•  Note: We license the quiz questions, and our license does not allow us to share the answers to the quizzes with students

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Quiz 01 – Week 4

q  Information Systems, Organizations, and Strategy §  Concepts of Strategy, Core Competency and Competitive

Advantage

§  Organization’s internal activities and environmental turbulence

§  Technological solutions to improve internal efficiencies and buffer against turbulence from the environment

§  Servitization

§  Platform and Ecosystem

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Recap from Last Week …

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Technology and the Importance of Servitization

•  What is sevice?

•  What is servitization and why is it important to a business?

•  What is the role of Information

Technology in advancing servitization?

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What is Service? •  FIVE characteristics

§  Intangibility – Services cannot be touched, gripped or handled

§  Inventory – Services are produced and consumed during the same period of time; they cannot be stored for future usage

§  Inseparability – Services cannot be separated from their providers because the latter is responsible for rendering the service

§  Inconsistency – Each service is unique because it is generated, rendered and consumed at a specific instance in time and cannot be replicated

§  Involvement – Participation of customers is pivotal to service delivery because services are produced in accordance with consumer needs

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What is Servitization and Why is it Important?

•  The addition of layers of service components to the organization’s traditional product offerings

•  Reasons for servitization: §  Create additional revenue streams

(margin is higher) §  Differentiation strategy

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What is the Role of Information Technology (IT) in Advancing Servitization?

•  Service is most affected by points of contact and interaction with the service provider

•  IT drastically affects: §  Number of contact points

between customers and service provider

§  Ways by which customers can interact with service provider (see next slide)

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Versus

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IT Happens

Ecosystem versus Platform (Textbook does not differentiate them well)

•  Ecosystem – Elements surrounding a product or service that reinforce its value.

•  Platform (Thinking or Strategy) – Creation of channel whereby value from different elements in the Ecosystem could be consolidated and delivered to the consumers e.g. hardware platform, software platform etc.

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Ecosystem versus Platform (Textbook does not differentiate them well)

•  Elements within the ecosystem support one another

•  Ecosystem is resilient to changes in the environment

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q  Enabling Commerce using the Internet

§  Business Model Canvas

§  Key components of a Business Model – Value Proposition and Revenue Model/Streams

§  Technology as driver of new Value Propositions and Revenue Streams

§  Last week’s focus was on technology’s impact on organizational internal operations and buffer against external turbulence

§  For this week, there is an external focus: Essentially we are looking at how technology drives new business models

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Agenda for this Lecture

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Osterwalder’s Business Model Canvas

•  A business model describes the rationale of how an organization creates, delivers, and captures value. §  It is the ‘logic’ that connects strategy and operations

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Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers by Alexander Osterwalder and Yves Pigneur

http://www.businessmodelgeneration.com/canvas

http://blogs.hbr.org/2013/05/a-better-way-to-think-about-yo/

Osterwalder’s Business Model Canvas – Application: Spotify

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Advertisements

Easy Access to Rare Music

Securing Deals with Labels

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Osterwalder’s Business Model Canvas - Pillars

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Technology and Business Model

•  Using technology to pursue strategies and develop business models that could not be pursued in a traditional environment

•  Power of technology shines in two important aspects of the business model §  Innovating on value proposition §  Innovating on revenue model/stream

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Most Obvious Strength of Technology in E-Commerce

•  The long tail refers to the tail of a typical sales curve

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http://www.theguardian.com/technology/2015/mar/11/ministry-of-sound-streaming-switch-off-free

ebay – A Celebration of Hoarding

•  Value Proposition §  Traditional auction format brought online §  Connection of millions of buyers and sellers §  Tracking of reputation of buyers and sellers

•  Revenue Model

§  Commission from each successful auction §  Charges for extra auction services §  Charges from customization of auction services

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How to Get Through College with Google

•  Value Proposition §  Traditional search for information

•  Revenue Model

§  Payment for advertisements §  Payment for association with popular key words §  Business intelligence to internet businesses

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Questions •  Can you think of new value propositions made possible

by technology? •  Can you think of new revenue models made possible by

technology?

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Wanelo Smurf Village

https://wanelo.com

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Questions •  Can you think of new value propositions made possible

by technology? •  Can you think of new revenue models made possible by

technology?

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http://www.sitescout.com/rtb/?ref=adw_search_real%20time%20bidding&gclid=CPrIkYzaisACFVUHvAodi6gAtg

M-Commerce

•  Main distinguishing features of Mobile Technology §  Portability and mobility i.e. invasion of space,

situations and time where traditional E-Business could not reach

§  Additional contextual tagging of location based information

§  More accurate identification of Mobile Technology user e.g. phone number, finger print, social network, user habit etc.

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Why the Invasion?

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Formulation of Intention Action

Why the Invasion? •  When is the best time to prompt the formulation of

intention? •  Where is the best place to prompt the formulation of

intention? •  What is the best situation to prompt the formulation of

intention?

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Points to Ponder

•  Think about what are the “tells” organizations can gain from today’s mobile devices?

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Why the Invasion?

•  How do I remove the obstacles during the translation from the formulated intention into actual action?

•  Shorten the distance the consumer has to travel to translate formulated intention into actual action

•  Shorten the duration between the formulation of intention and actual action

•  Simplify the means through which the formulated intention could be translated into actual action

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Points to Ponder

•  What are the current obstacles being targeted by mobile devices?

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http://www.insideretail.com.au/blog/2014/08/27/topshop-uber-partner-to-drive-sales/

http://www.smh.com.au/technology/sci-tech/push-for-liftoff-on-drone-deliveries-in-

australia-20131014-2vixx.html

Business School

Information Systems, Technology and Management

Thank You and

Have a Good Week!

Documents

INFS1602 - Lecture Slides - Week 03 - Updated