INFS1602 - Lecture Slides - Week 03 - Updated

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Text of INFS1602 - Lecture Slides - Week 03 - Updated

  • 12/08/15

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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 youll 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 peoples 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. Whos 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

    Organizations 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 organizations 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 weeks focus was on technologys 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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    Osterwalders 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/

    Osterwalders Business Model Canvas Application: Spotify

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

    Advertisements

    Easy Access to Rare Music

    Securing Deals with Labels

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    Osterwalders Business Model Canvas - Pillars

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

    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 todays 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 actua