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©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 1 e-Business Design A Shift to Adaptability David A. Marca University of Phoenix 2310 Crossroads Drive Madison, WI 53718 U.S.A. [email protected] July 7, 2009 Welcome!

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©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 1

e-Business DesignA Shift to Adaptability

David A. Marca

University of Phoenix2310 Crossroads Drive

Madison, WI 53718U.S.A.

[email protected]

July 7, 2009

Welcome!

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 2

e-Business DesignA Shift to Adaptability

David A. Marca

University of Phoenix2310 Crossroads Drive

Madison, WI 53718U.S.A.

[email protected]

July 7, 2009

Disclaimers

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 3

e-Business DesignA Shift to Adaptability...….…

Part I – Business Context● Economic Downturn● Evaporating Mass Market● More Niche Marketing● Adaptive Business Needed

Outline

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 4

e-Business DesignA Shift to Adaptability….…

Part I – Business ContextPart II – Design Framework

● Atomic Relationships● Unbalanced Designs● Balanced Designs

Outline

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 5

e-Business DesignA Shift to Adaptability….…

Part I – Business ContextPart II – Design FrameworkPart III – Business Design

● Business Profiles● e-Business Profiles● e-Business Shifts

Outline

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 6

e-Business DesignA Shift to Adaptability….…

Part I – Business ContextPart II – Design FrameworkPart III – Business DesignPart IV – e-Business Design

● Adaptive e-Commerce● Adaptive e-Broker● e-Barter Issues

Outline

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 7

e-Business DesignA Shift to Adaptability...….…

Part I – Business Context● Economic Downturn

Outline

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 8

Economic Downturn The Economic Driver – U.S. Births

1860 1880 1900 1920 1940 1960 1980 2000 2020 2040 2060

4,700

4,200

3,700

3,200

2,700

2,200

BirthWave

References:1,2.

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 9

Economic Downturn Second Wave – U.S. Family Formation

1860 1880 1900 1920 1940 1960 1980 2000 2020 2040 2060

4,700

4,200

3,700

3,200

2,700

2,200

BirthWave

FamilyWave

References:1,2.

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 10

Economic Downturn Third Wave – U.S. Peak Spending

1860 1880 1900 1920 1940 1960 1980 2000 2020 2040 2060

4,700

4,200

3,700

3,200

2,700

2,200

BirthWave

FamilyWave

AffluenceWave

References:1,2.

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 11

Economic Downturn Peak Spending Decline Recession

1860 1880 1900 1920 1940 1960 1980 2000 2020 2040 2060

4,700

4,200

3,700

3,200

2,700

2,200

References:1,2,3,4.

Past Peak Spending Declines

Past U.S. Recessions: 1961

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 12

Economic Downturn Peak Spending Decline Recession

1860 1880 1900 1920 1940 1960 1980 2000 2020 2040 2060

4,700

4,200

3,700

3,200

2,700

2,200

References:1,2,3,4.

Past Peak Spending Declines

Past U.S. Recessions: 1970, 1975, 1980, 1982

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 13

Economic Downturn Peak Spending Decline Recession

1860 1880 1900 1920 1940 1960 1980 2000 2020 2040 2060

4,700

4,200

3,700

3,200

2,700

2,200

References:1,2,3,4.

Past Peak Spending Declines

Past U.S. Recessions: 1991

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 14

Economic Downturn Peak Spending Decline Recession

1860 1880 1900 1920 1940 1960 1980 2000 2020 2040 2060

4,700

4,200

3,700

3,200

2,700

2,200

References:1,2,3,4.

Past Peak Spending Declines

Past U.S. Recessions: 2001

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 15

Economic Downturn Current Recession (Housing Bubble)

1860 1880 1900 1920 1940 1960 1980 2000 2020 2040 2060

4,700

4,200

3,700

3,200

2,700

2,200

References:1,2,3,4.

Past Peak Spending Declines

Past U.S. Recessions Current U.S. Recession

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 16

Economic Downturn Recessions at 2015 and 2025?

1860 1880 1900 1920 1940 1960 1980 2000 2020 2040 2060

4,700

4,200

3,700

3,200

2,700

2,200

References:1,2,3,4.

Past Peak Spending Declines

Past U.S. Recessions Current U.S. Recession

Future U.S. Recessions?

Future Peak Spending Decline?

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 17

e-Business DesignA Shift to Adaptability...….…

Part I – Business Context● Economic Downturn● Evaporating Mass Market

Outline

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 18

Evaporating Mass Market Cut Jobs + Wait for “Recovery” …References:5,6,7.

J0

-0.5

-1.0

-1.5

-2.0

-2.5

-3.0

-3.5

-4.0

-4.5

-5.0

F M A M J J A S O N D J F M A M2008 2009 Past U.S.

Recession

U.S

. Job

Los

ses

in M

illio

ns

SpendingDecline Period

Cum

ulat

ive

Job

Loss

Mon

thly

Job

Los

s

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 19

Evaporating Mass Market Cut Jobs + Wait for “Recovery” …References:5,6,7.

J0

-0.5

-1.0

-1.5

-2.0

-2.5

-3.0

-3.5

-4.0

-4.5

-5.0

F M A M J J A S O N D J F M A M

1970,1980

2008 2009 Past U.S.Recession

U.S

. Job

Los

ses

in M

illio

ns1965 1985

SpendingDecline Period

.......…

Cum

ulat

ive

Job

Loss

Mon

thly

Job

Los

s

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 20

Evaporating Mass Market Cut Jobs + Wait for “Recovery” …References:5,6,7.

J0

-0.5

-1.0

-1.5

-2.0

-2.5

-3.0

-3.5

-4.0

-4.5

-5.0

F M A M J J A S O N D J F M A M

1961, 1975

1970,1980

2008 2009 Past U.S.Recession

U.S

. Job

Los

ses

in M

illio

ns1965 1985

SpendingDecline period

1965 1985

.......…

.......…

Cum

ulat

ive

Job

Loss

Mon

thly

Job

Los

s

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 21

Evaporating Mass Market Cut Jobs + Wait for “Recovery” …References:5,6,7.

J0

-0.5

-1.0

-1.5

-2.0

-2.5

-3.0

-3.5

-4.0

-4.5

-5.0

F M A M J J A S O N D J F M A M

1961, 1975

1970,1980

1991, 2001

2008 2009 Past U.S.Recession

U.S

. Job

Los

ses

in M

illio

ns1965 1985

1995 2000

SpendingDecline Period

1965 1985

.......…

.......…

.......…

Cum

ulat

ive

Job

Loss

Mon

thly

Job

Los

s

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 22

Evaporating Mass Market Cut Jobs + Wait for “Recovery” …References:5,6,7.

J0

-0.5

-1.0

-1.5

-2.0

-2.5

-3.0

-3.5

-4.0

-4.5

-5.0

F M A M J J A S O N D J F M A M

1961, 1975

1970,1980

1991, 2001

1982

2008 2009 Past U.S.Recession

U.S

. Job

Los

ses

in M

illio

ns1965 1985

1995 2000

SpendingDecline Period

1965 1985

1965 1985

.......…

.......…

.......…

.................…

Cum

ulat

ive

Job

Loss

Mon

thly

Job

Los

s

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 23

Evaporating Mass Market Cut Jobs + Wait for “Recovery” …References:5,6,7.

J0

-0.5

-1.0

-1.5

-2.0

-2.5

-3.0

-3.5

-4.0

-4.5

-5.0

F M A M J J A S O N D J F M A M

1961, 1975

1970,1980

1991, 2001

1982

2008 2009 Past U.S.Recession

U.S

. Job

Los

ses

in M

illio

ns1965 1985

1995 2000

SpendingDecline Period

1965 1985

1965 1985

.......…

.......…

.......…

.................…

Cum

ulat

ive

Job

Loss

Mon

thly

Job

Los

s

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 24

Evaporating Mass Market Wait for “Recovery” … Sound Strategy?References:5,6,7.

J0

-0.5

-1.0

-1.5

-2.0

-2.5

-3.0

-3.5

-4.0

-4.5

-5.0

F M A M J J A S O N D J F M A M

1961, 1975

1970,1980

1991, 2001

1982

2008 2009 Past U.S.Recession

U.S

. Job

Los

ses

in M

illio

ns1965 1985

1995 2000

SpendingDecline Period

1965 1985

1965 1985

.......…

.......…

.......…

.................…

Cum

ulat

ive

Job

Loss

Mon

thly

Job

Los

s

Evaporating Mass Market

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 25

e-Business DesignA Shift to Adaptability...….…

Part I – Business Context● Economic Downturn● Evaporating Mass Market● More Niche Marketing

Outline

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 26

More Niche Marketing Classic Market Profile (Pareto)References:8,9.

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 27

More Niche Marketing Classic Market Profile (Pareto)

.

.

Mass Market:• undifferentiated buyers• roughly 20% of overall market• 50% of overall revenue potential• relatively easy to access.

References:8,9.

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 28

More Niche Marketing Classic Market Profile (Pareto)

.

.

Mass Market:• undifferentiated buyers• roughly 20% of overall market• 50% of overall revenue potential• relatively easy to access.

.Niche Markets:

• highly differentiated buyers• roughly 80% of overall market• 50% of overall revenue potential• much more effort to access

References:8,9.

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 29

More Niche Marketing Before Internet: Mass Market Dominates

.

Mass Market Access:• TV• Print• banners• pop-ups

References:8,9.

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 30

More Niche Marketing After Internet: Profitable Long Tail

.

.

Mass Market Access:• TV• Print• banners• pop-ups

Niche Market Access:• e-Business can profitably access• via an Internet portal• example: Rhapsody.com

References:8,9.

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 31

More Niche Marketing Mass Market … EvaporatingReferences:8,9,10.

.

.

Mass Market evaporates:• decrease branding• less “push” marketing

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 32

More Niche Marketing Long Tail … Still AvailableReferences:8,9,10,11.

.

.

Mass Market evaporates:• decrease branding• less “push” marketing• banners• pop-ups

Niche Market Access:• direct marketing• search marketing• email marketing• online communities

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 33

e-Business DesignA Shift to Adaptability...….…

Part I – Business Context● Economic Downturn● Evaporating Mass Market● More Niche Marketing● Adaptive Business Needed

Outline

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 34

Adaptive Business Needed 2009 e-Business Survey – 48 Clients

• Services, Technology• Academia, Government• Goods, Materials• Utilities, Healthcare

References:12.

Industry Span

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 35

Adaptive Business Needed 2009 e-Business Survey – 48 Clients

• Services, Technology• Academia, Government• Goods, Materials• Utilities, Healthcare

e-Business Technology Utilization

References:12.

• Proprietary Transactional System• Web Site / Extranet / Email• ERP System• Commercial Transactional System• Public Platform

Industries Surveyed

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 36

Adaptive Business Needed Rapid + Large Market Changes…

• Revenue from existing customers• Number of customers• New business wins• Number of products / offerings• Product / offering prices

Decrease in Business…

References:12.

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 37

Adaptive Business Needed …Caused by the Economic Downturn

• Revenue from existing customers• Number of customers• New business wins• Number of products / offerings• Product / offering prices

Decrease in Business…

Caused by…

References:12.

• Rapidly decreasing economic growth• New entrants to market / industry• Increased demand for custom services• Pricing by existing competition

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 38

Adaptive Business Needed Highly Adaptive Sales Channel, plus…

• Adapt the sales channel• Adapt offerings to meet demand• Create / strengthen brand• Anywhere / anytime transactions• More competitive pricing

Front End Requirements…

References:12.

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 39

Adaptive Business Needed ...Flexible Operations + Fast Decisions

• Adapt the sales channel• Adapt offerings to meet demand• Create / strengthen brand• Anywhere / anytime transactions• More competitive pricing

Front End Requirements…

Back End Requirements…

References:12.

• Integrate with other technology• Standardize / automate operations• Adapt the supply chain• Better / faster reports / analytics• Decrease inventory / turns

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 40

How to Shift?

• Fixed Market• Fixed Product• “Push” Marketing

• Slow to Adapt• Rigid Operations• Slow Decision Making

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 41

How to Shift? Intend to adapt to changing markets.

• Fixed Market• Fixed Product• “Push” Marketing

• Slow to Adapt• Rigid Operations• Slow Decision Making

• Dynamic Market• Adjustable Product• Niche Marketing

References:13.

Geoffrey Moore: 2009

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 42

How to Shift? Shift the business model first.

• Fixed Market• Fixed Product• “Push” Marketing

• Slow to Adapt• Rigid Operations• Slow Decision Making

• Dynamic Market• Adjustable Product• Niche Marketing

#1 ShiftBusiness

Model

References:13.

Geoffrey Moore: 2009

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 43

How to Shift? Design the e-Business for adaptability.

• Fixed Market• Fixed Product• “Push” Marketing

• Slow to Adapt• Rigid Operations• Slow Decision Making

• Dynamic Market• Adjustable Product• Niche Marketing

• Fast to Adapt• Flexible Operations• Fast Decision Making

#1 ShiftBusiness

Model

References:13.

Jelassi, Combe, Chaffey (strategy)

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 44

How to Shift? Shift the e-Business design second.

• Fixed Market• Fixed Product• “Push” Marketing

• Slow to Adapt• Rigid Operations• Slow Decision Making

• Dynamic Market• Adjustable Product• Niche Marketing

• Fast to Adapt• Flexible Operations• Fast Decision Making

#1 ShiftBusiness

Model

References:13.

#2 Shifte-Business

Design

Jelassi, Combe, Chaffey (strategy)

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 45

e-Business DesignA Shift to Adaptability….…

Part I – Business ContextPart II – Design Framework

● Atomic Relationships

Outline

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 46

Atomic Relationships #1 – Control

Control

ControlSubordinate

AttributeRelationship

ManagedWork

DictateCommunication

DownsizingRightsizing

RestructuringReengineering

Buzzwords

References:13.

Hierarchy + Rules

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 47

Atomic Relationships #2 – Cooperation

Cooperation

CooperationIntegrate

ControlSubordinate

AttributeRelationship

TogetherManagedWork

ViralDictateCommunication

QualityInvolvementTeamwork

Multi-skilling

DownsizingRightsizing

RestructuringReengineering

Buzzwords

References:13.

Control

Teamwork + Process

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 48

Atomic Relationships #3 – Autonomy

Autonomy

AutonomySeparate

CooperationIntegrate

ControlSubordinate

AttributeRelationship

ApartTogetherManagedWork

DialogViralDictateCommunication

DiversityEmpowermentEntrepreneurialDecentralization

QualityInvolvementTeamwork

Multi-skilling

DownsizingRightsizing

RestructuringReengineering

Buzzwords

References:13.

Cooperation

Control

Innovation + Skill

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 49

Atomic Relationships Design is a Tradeoff Among All Three

AutonomySeparate

CooperationIntegrate

ControlSubordinate

AttributeRelationship

ApartTogetherManagedWork

DialogViralDictateCommunication

DiversityEmpowermentEntrepreneurialDecentralization

QualityInvolvementTeamwork

Multi-skilling

DownsizingRightsizing

RestructuringReengineering

Buzzwords

References:13.

Autonomy

Cooperation

Control

Priority + Tradeoff

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 50

e-Business DesignA Shift to Adaptability….…

Part I – Business ContextPart II – Design Framework

● Atomic Relationships● Unbalanced Designs

Outline

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 51

Unbalanced Designs #1 – Over Prioritize One Element

ControlCauseCut cost +

sacrifice flex,quality, learning.

1. OverdoTop Priority

1

References:13.

Autonomy

Cooperation

Control

U.S. Post Office: 1975 + 2009

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 52

Unbalanced Designs #1 – Over Prioritize One Element

CooperationControlCauseConsensusdecisions.

No structure.

Cut cost +sacrifice flex,

quality, learning.

1. OverdoTop Priority

References:13.

1

Autonomy

Cooperation

Control

People Express Airline: 1987

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 53

Unbalanced Designs #1 – Over Prioritize One Element

AutonomyCooperationControlCauseExcessive

productdiversification.

Consensusdecisions.

No structure.

Cut cost +sacrifice flex,

quality, learning.

1. OverdoTop Priority

References:13,14.

1

Autonomy

Cooperation

Control

IBM copiers unit sold to Kodak: 1988

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 54

Unbalanced Designs #2 – Under Prioritize One Element

ControlCauseCut cost +

sacrifice flex,quality, learning.

1. OverdoTop Priority

No hierarchyor boundary.Deregulation.

2. UnderdoBottom Priority

References:13.

2

Autonomy

Cooperation

Control

U.S. railroads: 1870s

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 55

Unbalanced Designs #2 – Under Prioritize One Element

CooperationControlCauseConsensusdecisions.

No structure.

Cut cost +sacrifice flex,

quality, learning.

1. OverdoTop Priority

No teamwork.No projects.

No hierarchyor boundary.Deregulation.

2. UnderdoBottom Priority

References:13.

Autonomy

Cooperation

Control

2C-level groupthink, bad customer service

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 56

Unbalanced Designs #2 – Under Prioritize One Element

AutonomyCooperationControlCauseExcessive

productdiversification.

Consensusdecisions.

No structure.

Cut cost +sacrifice flex,

quality, learning.

1. OverdoTop Priority

Devalueindividual

contributions.

No teamwork.No projects.

No hierarchyor boundary.Deregulation.

2. UnderdoBottom Priority

References:13.

Autonomy

Cooperation

Control

2

1st PC firms: Osborne, GM Research

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 57

Unbalanced Designs #3 – Set No Priorities

AutonomyCooperationControlCauseExcessive

productdiversification.

Consensusdecisions.

No structure.

Cut cost +sacrifice flex,

quality, learning.

1. OverdoTop Priority

Devalueindividual

contributions.

No teamwork.No projects.

No hierarchyor boundary.Deregulation.

2. UnderdoBottom Priority

No vision/mission. Slogan-driven.Excessively matrixed organization.

3. NoPriorities

References:13.

3

Autonomy

Cooperation

Control

Stopped matrix management: HP, AT&T

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 58

e-Business DesignA Shift to Adaptability….…

Part I – Business ContextPart II – Design Framework

● Atomic Relationships● Unbalanced Designs● Balanced Designs

Outline

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 59

Balanced Designs #1 – Control Bias

AutonomyCooperationControlBias

DivisionHumanistichierarchy

VerticalFunctionalFranchise

Control

VerticalFunctionalFranchise Manufacturing ………… High Tech

Process Engineering … Control SystemsAuditing ……………….. Financial Firms

Examples:

References:13.

Autonomy

Cooperation

Control

McDonald’s (fast “food”)

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 60

Balanced Designs #2 – Cooperation Bias

AutonomyCooperationControlBias

Hybridteams

Team-basedProcess-basedProject-based

HumanistichierarchyCooperation

Team-basedProcess-basedProject-based

Applied R&D ………. Auto Supply ChainMarketing ………….. “Marcom” FirmsHuman Resources … Staffing Industry

Examples:

DivisionHumanistichierarchy

VerticalFunctionalFranchise

Control

References:13.

Autonomy

Cooperation

Control

Starrett (gauges and screws)

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 61

Balanced Designs #3 – Autonomy Bias

AutonomyCooperationControlBias

Product-basedConglomerate

Holding Co.

HybridteamsDivisionAutonomy

Product-basedConglomerate

Holding Co. Basic R&D ............... PharmaceuticalsSales ………………. Common BrandsCommodities ……… Agribusiness

Examples:

Hybridteams

Team-basedProcess-basedProject-based

HumanistichierarchyCooperation

DivisionHumanistichierarchy

VerticalFunctionalFranchise

Control

References:13.

Autonomy

Cooperation

Control

Genzyme (disease therapy)

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 62

e-Business DesignA Shift to Adaptability….…

Part I – Business ContextPart II – Design FrameworkPart III – Business Design

● Business Profiles

Outline

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 63

Business Profiles Control Bias – Traditional Sell–Buy

VerticalFunctionalFranchise Manufacturing ………… High Tech

Process Engineering … Control SystemsAuditing ……………….. Financial Firms

Examples:

References:13,15.

HierarchicManagedMandated

Steep ProgrammedSequential

Shareholders Directives

Cost

Control

Rewards……..Meetings……..Decisions........

Reporting…….Operation…….Data Flow…….

Constituency…Organization….Competition…..

Aspect

Autonomy

Cooperation

Control

Cisco (network technologies)

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 64

Business Profiles Cooperation Bias – Deliver Services

Team-basedProcess-basedProject-based

Applied R&D ………. Auto Supply ChainMarketing ………….. “Marcom” FirmsHuman Resources … Staffing Industry

Examples:

References:13.

MutualTeamsShared

FlatSpontaneous

Reciprocal

Employee TeamworkFlexibility

Cooperation

HierarchicManagedMandated

Steep ProgrammedSequential

Shareholders Directives

Cost

Control

Rewards……..Meetings……..Decisions........

Reporting…….Operation…….Data Flow…….

Constituency…Organization….Competition…..

Aspect

Autonomy

Cooperation

Control

Brady (marketing and communications)

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 65

Business Profiles Autonomy Bias – Customer Focus

Conglomerate Holding Co.

Sole Proprietor Basic R&D ............... PharmaceuticalsSales ………………. Common BrandsCommodities ……… Agra Business

Examples:

References:13.

IndividualsForums

Delegated

FlatIndependent

Pooled

CustomerPartnership

Differentiation

Autonomy

MutualTeamsShared

FlatSpontaneous

Reciprocal

Employee TeamworkFlexibility

Cooperation

HierarchicManagedMandated

Steep ProgrammedSequential

Shareholders Directives

Cost

Control

Rewards……..Meetings……..Decisions........

Reporting…….Operation…….Data Flow…….

Constituency…Organization….Competition…..

Aspect

Autonomy

Cooperation

Control

Schlumberger, Bruker (instrumentation)

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 66

e-Business DesignA Shift to Adaptability….…

Part I – Business ContextPart II – Design FrameworkPart III – Business Design

● Business Profiles● e-Business Profiles

Outline

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 67

e-Business Profiles Control Bias – Sell to Mass Market

ProductMass Market ……….. Amazon.comStandard Product ..… Zappos.comCross Sell …………… Continental Air

Examples:

References:13,16.

ControlAspect

Information…..Infrastructure…Integration…….

Solution……….Features………Delivery……….

Electronic…….Market………..Atomic Model..

WorkflowClient-ServerConstrained

ProductStandard

Portal

CommerceMass

B2B/B2C

Autonomy

Cooperation

Control

Target.com (clothing, household items)

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 68

e-Business Profiles Cooperation Bias – Broker Services

Service

References:13,16,17,18,19.

CooperationControlAspect

Information…..Infrastructure…Integration…….

Solution……….Features………Delivery……….

Electronic…….Market………..Atomic Model..

WorkflowClient-ServerConstrained

ProductStandard

Portal

CommerceMass

B2B/B2C

NetworkGrid/Cloud Standard

ServicesConfigured

Agent

Broker Niche

C2B/C2C

Autonomy

Cooperation

ControlClosest Examples:Broker Services …… Mortgage.comIntelligent Agent ….... SORMASocial Network …….. Dooce.com

Priceline.com (discount travel)

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 69

e-Business Profiles Autonomy Bias – Barter + Exchange

Commodity

References:13,16,20,21,22.

AutonomyCooperationControlAspect

Information…..Infrastructure…Integration…….

Solution……….Features………Delivery……….

Electronic…….Market………..Atomic Model..

WorkflowClient-ServerConstrained

ProductStandard

Portal

CommerceMass

B2B/B2C

NetworkGrid/Cloud Standard

ServicesConfigured

Agent

Broker Niche

B2C/C2C

RecommendP2PNone

CommodityCustom

Exchange

BarterIndividual

C2C

Exchange .................. eBay.come-Money ……………. PayPal, Visa CashRecommender ……… eBay, Amazon

Closest Examples:

Autonomy

Cooperation

Control

Gruen, et. al. 2005 (MOA theory)

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 70

e-Business DesignA Shift to Adaptability….…

Part I – Business ContextPart II – Design FrameworkPart III – Business Design

● Business Profiles● e-Business Profiles● e-Business Shifts

Outline

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 71

e-Business Shifts e-Commerce: More Balance

ElectronicCommerce C2C Forum ………….. c2c Rail Info (UK)

Personalization ..……. Dell (corp clients)Whole Solution ……… Continental Air

Examples:

References:13,23,24.

ControlAspect

ComputerMulti-Media

Network

Mass MarketNice to Have

Statistical

Internet1995

Macro

Platform………Enabler……….Connection……

Majority……….Intent………….Model…………

Trigger………..Emergence…..Scope…………

Autonomy

Cooperation

Control

BuyBookShop.com (buyer forum)

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 72

e-Business Shifts e-Broker: More Common after 2010?

ElectronicBroker

References:13,25,26,27.

CooperationControlAspect

AgentForumSOA

Group/SwarmNeed to HaveAgent-Based

SpendingAfter 2010?Macro/Micro

ComputerMulti-Media

Network

Mass MarketNice to Have

Statistical

Internet1995

Macro

Platform………Enabler……….Connection……

Majority……….Intent………….Model…………

Trigger………..Emergence…..Scope…………

Autonomy

Cooperation

ControlClosest Examples:Web Services ……… Amazon suiteIntelligent Agent ….... e-NegotiationSocial Network …….. Dooce.com

Watson: CauseWired (virtual coalition)

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 73

e-Business Shifts e-Barter: Needed after 2050?

ElectronicBarter Exchange .................. Craig’s List, eBay

e-Money …………….. PayPal, TimeBankRecommender …....... eBay, Amazon

Closest Examples:

References:13,28,29,30,31.

AutonomyCooperationControlAspect

Exchange e-CreditPhone

IndividualMust Have

Agent-Based

OilAfter 2050?

Micro

AgentForumSOA

Group/SwarmNeed to HaveAgent-Based

SpendingAfter 2010?Macro/Micro

ComputerMulti-Media

Network

Mass MarketNice to Have

Statistical

Internet1995

Macro

Platform………Enabler……….Connection……

Majority……….Intent………….Model…………

Trigger………..Emergence…..Scope…………

Autonomy

Cooperation

Control

TimeBanks.org

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e-Business DesignA Shift to Adaptability….…

Part I – Business ContextPart II – Design FrameworkPart III – Business DesignPart IV – e-Business Design

● Adaptive e-Commerce

Outline

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 75

Adaptive e-Commerce Sell-Buy Portal (Zappos.com)

TransactionDatabase

INTERNET EXTRANET INTRANET INFORMATION

Customers buy direct (B2C)

References:24.

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 76

Customers talk before they buy

(C2C)

Adaptive e-Commerce Balance: C2C + B2C (Theuvsen, 2005)

TransactionDatabase

INTERNET EXTRANET INTRANET INFORMATION

Customers buy direct (B2C)

Personalized buying (B2C)

References:16,25,32,33,34,35,36,37,38,39.

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 77

Adaptive e-Commerce Affiliates (Booz - Allen - Hamilton, 2007)

TransactionDatabase

INTERNET EXTRANET INTRANET INFORMATION

Customers buy direct (B2C)

Personalized buying (B2C)

Sales Partners + Suppliers (B2B)

Customers talk before they buy

(C2C)

References:16,25,40.

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 78

Adaptive e-Commerce “Open” CRM (SalesLogix, 2000)

TransactionDatabase

INTERNET EXTRANET INTRANET INFORMATION

Customers buy direct (B2C)

Personalized buying (B2C)

CustomerDatabase

Customer Analytics

Employees service customers directly

All employees see all customers

Employees service partners directly

Sales Partners + Suppliers (B2B)

Customers talk before they buy

(C2C)

References:25,40.

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 79

Sales Partners + Suppliers (B2B)

Adaptive e-Commerce Management Decision (SEI Smart Grid)

TransactionDatabase

INTERNET EXTRANET INTRANET INFORMATION

Customers buy direct (B2C)

Personalized buying (B2C)

CustomerDatabase

DecisionDatabase

Customer Analytics

Employees service customers directly

All employees see all customers

Employees service partners directly

ProductAnalytics

Management decision making

Customers talk before they buy

(C2C)

References:25,40.

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 80

e-Business DesignA Shift to Adaptability….…

Part I – Business ContextPart II – Design FrameworkPart III – Business DesignPart IV – e-Business Design

● Adaptive e-Commerce● Adaptive e-Broker

Outline

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 81

Adaptive e-Broker Conversation Develops (Dooce.com)

INTERNET EXTRANET INTRANET INFORMATION

Social Network Conversation Point (C2C)

References:25.

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 82

Adaptive e-Broker Like-Minded People (MySpace.com)

INTERNET EXTRANET INTRANET INFORMATION

Social Network Conversation Point (C2C)

Dynamic Niche Market

Formation

References:25,42,43.

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 83

Adaptive e-Broker Broker Agent (Mok + Sundarraj, 2007)

INTERNET EXTRANET INTRANET INFORMATION

Social Network Conversation Point (C2C)

Dynamic Niche Market

Formation

ElectronicBroker(C2B)

References:25,44,45,46.

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 84

Adaptive e-Broker Negotiate Value (Priceline.com)

TransactionDatabase

INTERNET EXTRANET INTRANET INFORMATION

Social Network Conversation Point (C2C)

Dynamic Niche Market

Formation

Sales Partners + Suppliers (B2B)

..Product Function, Feature, Price

References:25,40.

ElectronicBroker(C2B)

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 85

Adaptive e-Broker Dynamic Learning (Araman, 2005) …

TransactionDatabase

INTERNET EXTRANET INTRANET INFORMATION

CustomerDatabase

Customer Analytics

All employees see all negotiations

Employees service partners directly

Sales Partners + Suppliers (B2B)

Social Network Conversation Point (C2C)

Dynamic Niche Market

Formation

Employees become niche market experts

..Product Function, Feature, Price

References:25,40.

ElectronicBroker(C2B)

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 86

Adaptive e-Broker … Including Management (Li, 2008)

TransactionDatabase

INTERNET EXTRANET INTRANET INFORMATION

CustomerDatabase

DecisionDatabase

Customer Analytics

All employees see all negotiations

Employees service partners directly

Sales Partners + Suppliers (B2B)

ProductAnalytics

Management decision making

Social Network Conversation Point (C2C)

Dynamic Niche Market

Formation

Employees become niche market experts

..Product Function, Feature, Price

References:25,40.

ElectronicBroker(C2B)

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e-Business DesignA Shift to Adaptability….…

Part I – Business ContextPart II – Design FrameworkPart III – Business DesignPart IV – e-Business Design

● Adaptive e-Commerce● Adaptive e-Broker● e-Barter Issues

Outline

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 88

Adaptive e-Broker Economic Forces (farmer’s market)

.

Transact within Local Community

References:25.

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 89

Adaptive e-Broker Markets Forces (Pouwelse, P2P Barter)

.

Transact within Local Community

References:25.

Need For Sustenance

Need For Sustenance

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 90

Adaptive e-Broker Barter Rules (CLAAS Logistics, 2007)

INTERNET

Transact within Local Community

References:25.

Need For Sustenance

ElectronicBarter (C2C)

Need For Sustenance

ElectronicBarter (C2C)

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 91

Adaptive e-Broker Partner Matching (CLAAS Logistics, 2007)

INTERNET

Transact within Local Community

References:25.

Need For Sustenance

ElectronicBarter (C2C)

Need For Sustenance

ElectronicBarter (C2C)

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 92

Adaptive e-Broker Trade Trust (Ahuja 2000, Erez 2001)

INTERNET

Transact within Local Community

References:25.

Need For Sustenance

ElectronicBarter (C2C)

Need For Sustenance

ElectronicBarter (C2C)

TradeOutcomes

TradeOutcomes

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 93

Adaptive e-Broker Fair Trading (MommySavers.com)

INTERNET

Transact within Local Community

References:25.

Need For Sustenance

ElectronicBarter (C2C)

TradeRules

Need For Sustenance

ElectronicBarter (C2C)

TradeRules

TradeOutcomes

TradeOutcomes

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 94

Adaptive e-Broker Reciprocal Exchange (Stoddard, 2000)

INTERNET

Transact within Local Community

References:25.

Need For Sustenance

TradeOutcomes

ElectronicBarter (C2C)

TradeRules

Need For Sustenance

TradeOutcomes

ElectronicBarter (C2C)

TradeRules

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 95

Adaptive e-Broker e-Credit (Capie, Tsomocos, Wood, 2003)

INTERNET

Transact within Local Community

References:25.

e-Credit

Need For Sustenance

TradeOutcomes

ElectronicBarter (C2C)

TradeRules

Need For Sustenance

TradeOutcomes

ElectronicBarter (C2C)

TradeRules

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 96

Adaptive e-Broker Privacy Loss (Kraus + Grosz, 2007)

INTERNET

Transact within Local Community

Community Dialog about Members

References:25.

e-Credit

Need For Sustenance

TradeOutcomes

ElectronicBarter (C2C)

TradeRules

Need For Sustenance

TradeOutcomes

ElectronicBarter (C2C)

TradeRules

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 97

Adaptive e-Broker Gossip + Repudiation (Onieva, 2008)References:25. INTERNET

Transact within Local Community

Community Dialog about Members

e-Credit

Need For Sustenance

TradeOutcomes

ElectronicBarter (C2C)

TradeRules

Need For Sustenance

TradeOutcomes

ElectronicBarter (C2C)

TradeRules

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 98

e-Business DesignA Shift to Adaptability….…

Part I – Business ContextPart II – Design FrameworkPart III – Business DesignPart IV – e-Business DesignSummary

Outline

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 99

e-Business DesignA Shift to Adaptability….…

Summary

NOW SOON?

Electronic Commerce Electronic Broker

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 100

e-Business DesignA Shift to Adaptability….…

Summary

NOW SOON?

Electronic Commerce Electronic Broker

Triggered by Internet Triggered by SpendingMass Market Dominance Niche Market Dominance

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 101

e-Business DesignA Shift to Adaptability….…

Summary

NOW SOON?

Electronic Commerce Electronic Broker

Triggered by Internet Triggered by SpendingMass Market Dominance Niche Market Dominance

Computer Network Social Network + ForumMulti-Media Web Services + SOA

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 102

e-Business DesignA Shift to Adaptability….…

Summary

NOW SOON?

Electronic Commerce Electronic Broker

Triggered by Internet Triggered by SpendingMass Market Dominance Niche Market Dominance

Computer Network Social Network + ForumMulti-Media Web Services + SOA

Pushed Ads + Portal Buy Common Need + Agent BuyFixed Product/Price Adjustable Product/Price

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 103

e-Business DesignA Shift to Adaptability….…

Summary

NOW SOON?

Electronic Commerce Electronic Broker

Triggered by Internet Triggered by SpendingMass Market Dominance Niche Market Dominance

Computer Network Social Network + ForumMulti-Media Web Services + SOA

Pushed Ads + Portal Buy Common Need + Agent BuyFixed Product/Price Adjustable Product/Price

Control Design Bias Cooperation Design Bias

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 104

e-Business DesignA Shift to Adaptability

David A. Marca

University of Phoenix2310 Crossroads Drive

Madison, WI 53718U.S.A.

[email protected]

July 7, 2009

Thank you!

©OpenProcess, Inc. Do not copy. Do not distribute. e-Business Design, 105

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References