Mike Shaw Center for Information Systems and Technology Management University of Illinois at Urbana Champaign University of Illinois at Urbana Champaign

Mike Shaw

Center for Information Systems and Technology Management

University of Illinois at Urbana Champaign

University of Illinois at Urbana Champaign (UIUC)

Center For Information Systems and Technology Management

Michael J. Shaw, Director

• Research and Learning Center– UIUC Critical Research Initiatives (CRI) Sponsorship

– Electronic Commerce Forum

– Integration of Technology and Business Strategy

• Multi-disciplinary Research– College of Commerce and Business Administration, National Center

for Super Computing Applications (NCSA), Beckman Institute for Advanced Science and Technology, College of Engineering, and Department of Psychology

• Academic Research and Industrial Partnerships– Integration of Educational Objectives, Rigorous Research, and

Business Practices

Mike Shaw



Center For Information Systems and Technology ManagementIndustrial Partnerships

• Identify Research Problems of Common Interests

• Match Research Expertise with Research Needs

• Types of Partnerships– Partner Program

– Specific Sponsored Projects

• Benefits

WIN-WIN Solutions

Mike Shaw



Web Based Strategies To Fulfill Consumer Needs

* Web Advertising

* Virtual Communities

* Interactive catalogs

* Virtual store-front

* Virtual Reality

New Consumer Processes

* Global Supply Chain Integration

* Sense and Respond

* Digital Interactivity

* Multimedia Databases

* Customer Profiling

* Interactive Marketing

* Consumer Interface

Quick Response

MassCustomization

IntelligentVirtualStores

Product Promotion

Mike Shaw



Consumer Purchase Needs

Knowledge

Aggregation

Customization

Networking

Ubiquity Interaction

Experience

Mike Shaw



Consumer Purchase Needs

• Knowledge - Having access to specialized information and feedback about the product or service

• Interaction - Fulfilling the need to communicate with the provider of product or service

• Networking - Connecting to and interacting with other consumers who have similar needs or experiences

• Sensory experiences - Using sensory input such as sight and sound to arrive at a purchase decision

• Ubiquity - Having all that the consumer needs at the time and place of consumer’s convenience, rather that at the provider’s convenience

• Aggregation - Bringing together a number of related and required services at a single point of contact

• Customization / Personalization - Tailoring products to consumer’s needs rather than adjusting consumer needs to available product ranges

Mike Shaw



The Web As The Consumer Interface

• Interactivity

• Realistic experience

• Global access

• Targetability

• Tracking of customers

• Flexibility

• Aggregation of services The Web is most suited to fulfill all of the needs of the consumer through a single channel

Mike Shaw



Product Promotion - Web Advertising

Banners

Buttons

Keyword Ads

Advertorial

Destination Site

- Advertising designed to blend with the editorial content of the page

- Web page becomes a central access point for customer to provide information, education, news, entertainment

Issues: - Measurements

- Strategy- Effectiveness

Web Portals - Starting web page from where user accesses services like search, news, and email

Mike Shaw



Product Promotion - Virtual Communities

• Characteristics– Collective knowledge

– Targetable audience

– Influential opinion leader

– Increasing returns• Marginal cost effect

• Learning curve effect

• “Network externalities”

Membership of community

Potential Revenues

Mike Shaw



Promote participation* Member content* Editorial content* Invited Experts

Build Loyalty to Group* Member to Member* Member to Host* Customized Interactions

Capture Value* Advertising* Transactions* Fees for premium services

Attract new members* Marketing* Attractive content* Free membership and usage

Building and exploiting virtual communities


Mike Shaw



Benefits of virtual communities

To consumers

Identify and interact with consumers of similar interests without constraints of time and space

Aggregated experience of the product usage

Better informed purchase decisions

Reduced search costs for product information

Special price, customized offers and better service


To sponsor organization Reduced search costs

Effective targeting of products and servicesInfluence the purchase decisions of new membersLoyalty can be exploited to offer range of products and services to consumersGlobal reach at much lower costs

To participating vendorsTarget audience with known demographics and interestsEffective response for promotion messagesReduced search costs of target customersGlobal reach at much lower costs

Mike Shaw



Virtual Store-Front Services

* Product display services* Electronic catalog services* Customization features* On-line search engine* On-line order processing

Mike Shaw



Interactive Web Catalog Features

• Product search - by use, category, price, related products

• Product visualization - using virtual reality

• Product customization • On-line order placement -

links to related services like credit agencies, bank, product stock status, packaging and delivery services

• Virtual conference - with sales representatives and other consumers

Mike Shaw



Mike Shaw



Educational

Esthetic

Passive Participation

Immersion

Active Participation

Absorption

Escapist

Entertainment

The Four Realms Of An Experience

B. Joseph Pine II and James H. Gilmore, Harvard Business Review, July-August, 1998

Mike Shaw



Customers provide potential interests

Sample of likely matches

presented

Image Database

Product Catalog

Customer “Virtually” tries

& matches Selections

Is Selected Set

Satisfactory?

Customer Recommends Changes to Selections

Yes

No

Customer decides on a

SelectionCustomer Database

Customer Preferences

Interactive Iterative Process

Virtual Stores - A Vision

Mike Shaw



Mass Customization• Mass market goods and services uniquely tailored to the needs of the individuals who

buy them.• Highlights

– Driven by customer needs– Implemented through the Web– Uses latest technology

• Databases - customer and product• Computer controlled design, production and packaging• Supply chain management

– Helps build a strong relationship with customer

• Benefits– Cuts inventory

– Makes very small niche markets viable– Retailers become regional distribution centers, cutting costs

•

Mike Shaw



Mass Customization - Example Garments

Tools3-D scanning tools

Visualization toolsCloth draping algorithm

Virtual reality tools

Image databases

Artificial intelligence interface

Internet for integrated design, marketing and retailing

StepsCustomer’s 3-D image scannedCustomer interactively selects color, model, and print designOrder transmitted through web to factoryGarment stitched and deliveredBar-code used to store customer choices

Mike Shaw



Mass Customization - Benefits

• Customer’s 3-D image can be saved and used in future

• Customer can select fabric type, color, texture, pattern and print

• Customer can fit and visualize selected garment

• Customer can design garment or use available designs for the fit

• Customer’s feedback used in general garment design

Mike Shaw



Mass Customization - Interactive Digitization

• Image Storage and Retrieval

• Image Synthesis• Interactive Feature

Specification• Integration with

Supply Chain

Mike Shaw



Mass Customized Products - Examples

Personal computers Dell Computers

GarmentsLevi’s Strauss

Eye glasses LensCrafters

Vitamin pillsAcumin

Appliances

Furniture

Mike Shaw



MarketIntelligence

Analysis

WebStore Front

OrderEntry

EnterpriseResourcePlanning

Customer Service& Sales

ConsumerKnowledge

Base

CustomerDelivery

Payment& Account

Management

ProductEngineering

LogisticsSupport

SCNInternet

Integrated Supply Chain Network

Documents

Mike Shaw Center for Information Systems and Technology Management University of Illinois at Urbana Champaign University of Illinois at Urbana Champaign