Rosenbaum SLIS@IU

Ecommerce Education using a Virtual Economy

Ecommerce Education using a Virtual Economy

Howard Rosenbaumhrosenba@indiana.edu

School of Library and Information ScienceIndiana University

http://www.slis.indiana.edu/hrosenba/www/Pres/sc00/

November 7-8, 2000 SC’00 Dallas TX

Rosenbaum SLIS@IU

Ecommerce Education using a Virtual Economy

• L561: The Information Industry: Electronic Commerce has been taught in the School of Library and Information Science since 1996

• In Spring 2000 the course was redesigned around a pedagogical approach: problem based learning

• The problem for students is to start up and operate an ebusiness in a competitive digital marketplace

• The virtual economy is the technological infrastructure of this marketplace

Current syllabus: www.slis.indiana.edu/hrosenba/www/L561/syll/syll5.html

Rosenbaum SLIS@IU

Structure of the VE

• Portal page: entryway to the VE with banner ad to each store

Access is password protected through the login page

• Store template: front page, link to the product catalog

• Cold Fusion generated product catalog, shopping cart, checkout procedure

• Digital bank in the Oracle database

• When a transaction is completed, money is transferred from shopper to store account

Rosenbaum SLIS@IU

Student activity in the VE

The student experience in the VE

Each group:

• Develops and presents a business plan

• Designs its store

• Develops content

• Creates advertising and marketing strategies

• Sets up customer service and loyalty programs

• Manages the business

Login page

Rosenbaum SLIS@IU

Timeline for the class

Week 1: Developing a start-up company

Week 2-8: Design, build, and test the site

Week 2: Business plan

Evaluation of sites and initial prototype

Content development

Week 3: Database development

Week 4: Advertising development

Week 5: Customer service

Week 6: Final design

Week 7-8: Test and redesign

Week 9-15: Operate the storefronts Worksmarter.com

Rosenbaum SLIS@IU

Spring 00 VE

There were five stores on the Spring 00 VEEach had different business model

Retail: bundled goods

Retail: individual itemsSell entertainment

Subscription: unlimited download

Sell chats with experts

Rosenbaum SLIS@IU

Business in the VE

VE Spring 2000

Shoppers: 76*

Stores: 5

Total $$ to be spent: $152,000.00

Weeks online: 9

Total $$ spent: $119,323.28 (79%)

Total $$ remaining: $32,676.72 (21%)

Avg. $$ left/shopper: $429.96

Avg $$ spent/shopper: $1,570.04

*Shoppers were business school students from Napier University, Scotland

SickLittleMonkey

Rosenbaum SLIS@IU

Results: Profits after expenses

Leader-profits: Stout.com had 47% of all sales ($56,480), 11% of all transactions (141) averaging $400.57 per transaction Total sales = $119.323.00

VE percentage of total sales

22%

47%

4%

17%

10%

Worksmarter Stout ExpertInfo InTheKnow SickLittleMonkeys

Rosenbaum SLIS@IU

Results: Transactions

Leader-transactions: InTheKnow had 17% of all sales ($20,129.00), 76% of all transactions (983), averaging $20.48 per transaction Total transactions = 1292

VE percentage of total transactions

6%11%

1%

76%

6%

Worksmarter Stout ExpertInfo InTheKnow SickLittleMonkeys

Rosenbaum SLIS@IU

• The VE seems to have been very successful supporting a problem based learning approach to teaching ecommerce• Students report that the class was extremely challenging but worth the time and effort• They came out of the class with a deeper understanding of the complexities of business-to-consumer ebusiness• They report that they can speak about ecommerce with confidence in their job interviews• The stores are now portfolio items that students list on their resumes

VE as a pedagogical tool

ExpertInfo

Rosenbaum SLIS@IU

Support for the VE

• The VE is currently being supported by a grant from the Ameritech Fellows Program for innovation in the use of information technology in education

• It is also being supported with an Academic Equipment Grant from Sun Microsystems