Business Applications
• Digital Expectations:• Competitive pressures
• reduce cost• Improving customer service• Improve efficiency• Sharing knowledge
• Has to be part of overall business strategy
Business Applications
• Stock exchanges (threat of Electronic Communications Networks)
• Banks (ATMs, online banking)• Manufacturing (Just in Time, supply chain
management)• Health care (sharing of patient records,
telemedicine) • Retail (Wal-Mart’s real time inventory systems)• Logistics (FedEx and UPS tracking systems)• Law enforcement (network database records)• Airlines (reservation systems, Sabre )• Currency Trading (Largest international trade item)
Business Applications
• Distribution of service: serving your customers at where they are (bank branches) making time and location irrelevant
• Supply chain management in cutting cost
• Sharing ideas and collaboration • Sharing business data (EDI) and cutting
transaction costs• Real time systems
Business Applications
• Location Independence Online education Telecommuting Day trading
• Globalization (international expansion) Multiple units in different parts of the world
sharing corporate information Serving other global organizations
• Work teams Sharing ideas, information (business is
about information today)
Typical Applications
• Access to data• PC networks and Internet applications
• Collaboration• CRM, ERP, Portal, Conferencing, Collaborative
Tools, Messaging
The Internet Changing Lifestyles
• Email, IM as a means to communicate• Online banking• Online shopping• trade stocks over the Internet • listen to radio on the Internet• XM and Sirius: Satellite FM radio in your car• Establish personal relationships on the
Internet• Research products• Book flights and hotels• Mobile apps
Has it Made a Difference?
• Not revolution but evolution• Internet usage increasing• Companies keep deploying Internet technology• Revolution in technology not business practices
Has it Made a Difference?
• ‘Brands will Die’• not necessarily
• Encyclopedia Britannica• Microsoft• Wal-Mart
• but the impact has been felt• Eaton’s• Consumer’s Distributing• Woodward’s• K-Mart
Has it Made a Difference?
• Prices will Fall• Tough to prove
• Internet comparison shopping – real?
http://www.pricegrabber.com (and .ca)
http://www.ebay.com
Has it Made a Difference?
• ‘Middlemen will Die’• some disintermediation, but not to the scale
envisioned• expedia.ca versus travel agents• video versus pay-per-view• dealers versus direct automobiles online
• Auctions do Disintermediate Ebay.com, bid.com, priceline.com
Has it Made a Difference?
• ‘Being First is Key’• substitution is fast• sustainability lies in continuous innovation
• Wal-Mart• FedEx• Google
Defined
• If Web 1.0 introduced a customer, then• Web 2.0 introduced a participant
• Evolution, not revolution here• Web 1.0, 1996: 250,000 servers• Web 2.0, 2008: 80,000,000+ servers
Attributes
• Peer Production / Collaboration• Linux, Apache
• OpenSource• Wikipedia
• Crowdsourcing / Sharing• blogging• RSS
• Globalization• Integrity• Interdependence
Peer Production as a Core
• ‘The GoldCorp Challenge’• 1. Give $10 million
to your geologists• 2. Give $575,000
to strangers
Where is it Going?
• Peering• against the hierarchical model
• Sharing• against the IP model
• RIAA versus MP3• DRM act in Canada• Skype
• Globalization• collaboration• production