Statement of Purpose Essay Example for Free

Statement of Purpose Essay â€Å"The future belongs to those who believe in their dreams. †I firmly believe in this quote made by Eleanor Roosevelt. I have always dreamed of making it to the top in the field of business in general and that of finance in particular. However, to realize my dream I need to understand and appreciate the fact that I must arm myself with a professional degree from a reputed business school. This would be an important and decisive step in my journey towards success. A full-fledged program in finance would enable me to form a vision of business and of finance in the twenty-first century and the way it is going. The only career option in today’s competitive environment which creates an opportunity for an aspirant to pursue a career in the field of his choice is to acquire a management degree. Management qualification is a tool to build skills, gain knowledge and insight into modern business techniques At the same time and with equal mind, I recognize clearly the fact that what I wish to do would not be really possible without a robust theoretical framework and base. I fully acknowledge and appreciate the fact that I need to build up intellectual ability in me and arm myself with techniques of analysis, case studies and proper critical examination as well as the ability to acquire information and to get to the bottom of a matter. All that can come only from being part of a complete academic program that would test and try me out and in which I would grow and broaden. That is what I expect to happen to me as and when I become part of a Masters program at an outstanding university where I shall encounter the best minds engaged in constant discussion and ever absorbed in understanding not just the theoretical foundations of finance but also its new and emerging trends. What do I have to offer? First is the fact that I have done my graduation in business along with specialization in finance, which puts me in a somewhat unique position. I already have a theoretical framework that encompasses a fairly advanced and analytical view of society, its institutions and the transition that is part of those institutions in the world of today which is moving from an earlier concept of laissez faire capitalism and is becoming a global village where economic interests predominate and function as primary determinants of political action. The qualities that I have inculcated as a result of the academic ndeavors I have gone through are perseverance, patience, good communication skills, and flexible working procedures and at the same time highly disciplined working capability, qualities which I believe are absolutely necessary not just for success but also for mere survival in today’s fast paced and dynamic socio-economic environment. Most importantly I have the basic quality of self discipline and target oriented approach in consequence whereupon success is automatic. â€Å"All work and no play make Jack a dull boy†. I wish to add that I love driving and I love playing tennis and traveling. I also spend time reading about Finance books, about Finance management and about general management. I do that when I’m not listening to music, which too I love. I like watching lawn-tennis matches. Yes, with all that, I am setting out to learn as well as I can and as fast as I can at a reputed institute and pick up the training and skills of assessment, of decision making, of leadership and of communication which would benefit me to enter the complex world of business and to make my endeavors in that world profitable and advantageous. I must add that I am particularly interested in finance and look very much forward to getting into the course specifically related to finance. I see as well something equally important, namely, the fact that a program, when entered into fully and with a complete mind, builds up into an experience one can’t ever forget. A good world-class university with its vast pool of resources in terms of faculty, its up to date curriculum and its wide student membership is an active and dynamic world that provides an exposure as nothing else can. It is this exposure that I seek, as I know that it would enable me to get closer to my dream of working in the area of finance in the way I want to My role models are Mahatma Gandhi, Dhirubhai Ambani and Swami Vivekananda. Though the three come from different walks of life, each has inspired me in some or other way. In particular, their sense of leadership, their impeccable oratory and their communication skills as well as their infinite vision and talent mean a great deal to me. Finally, I believe that I would be able to steer my career in the right direction if I am armed with a professional (Masters) degree from a world renowned institute. I understand that just a qualification won’t be helpful without sincere and intelligent efforts. However, it will definitely go a long way in helping me achieve my goals. I have always been very serious about achieving my goals and to conclude, in the words of Swami Vivekananda: â€Å"Awake! Arise! Stop not till the goal is reached!!

Automotive Industry IT Requirements

Automotive Industry IT Requirements Total Cost of Ownership Objective: The objective of this analysis report is to study and analyse the present IT needs of the company and compare the economic benefits obtained when the company shifts to cloud solution as compared to the traditional On Premise IT configuration setup. The company chosen for this analysis is XYZ from the automotive industry. Company Description: XYZ is a global automobile manufacturing company and is a sub division of the Indian company ABCD. The company is known for its luxurious automobiles, buses, motorcycles and trucks. The headquarters of the company is in Dublin, Ireland. The company first gained its reputation back in 1990 and traces its origin to the founders of the company AB and CD. XYZ was first financed by PQR in the initial days. The first automobile launched by XYZ was regarded as the first CNG powered automobile. The slogan for XYZ is Just the best. Since 1998 XYZ is the top growing brand with the growth rate of 20%. Son of AB joined XYZ in 2001 after completing his MBA from a very reputed university in the UK and has been bringing a unique approach to branding and creativity in design ever since, which in turn has helped XYZ in achieving great heights in the respective industry. A Chinese automobile entrepreneur, DEF who worked with a Chinese automobile company created the trademark for XYZ in 1991 and the first automobile by XYZ was named after him which had a power of 30 hp. The first XYZ brand name luxurious vehicle was produced during 1992 with the merger of AB and CD. Throughout the 1990s XYZ produced a car named XYZ 123 which was supposedly the best luxurious car in those days and was used by the Queen of the UK. XYZ 123 was known for its exquisite design and bullet proof windshield. Other similar models were sold to private buyers only at auctions in the initial days. By 1995, the automotive division of XYZ was in financial difficulties because of the internal conflicts among the board of XYZ. It was during this period a shareholder meeting was held to decide whether to find an alternative to the issues or to go into liquidation. It was then decided to carry on, by trying to get funds from the current economy booming cars and it exploited so successfu lly that it also got the rights to manufacture the German car The FGH. After few modifications to the motorcycle engine XYZ started manufacturing mini cars as well. The success of these mini cars was sufficient to get XYZ back on its feet. Today, XYZ is a leading automobile company which also deals with cars in Formula 1. XYZ produces supercars under the XYZ supercar subdivision and motorcycles under the XYZ moto sub-division. The company has got over 20 showrooms in Europe with over 5000 employees. The purpose of the company is to deliver luxurious engineering to its customers. Thus, they make the customers feel better than they ever thought they can be. Customers are the heart of XYZs business and they have made it a point to provide exceptional customer care. Today, about 40% of the shareholder of XYZ is the Gerrard family of UK while the rest is in public float. By 1996, XYZ acquired the JKL company of Italy. JKL was briefly batched with the brand of XYZ until it was completely absorbed in a years time. The reason XYZ purchased JKL was that it was interested in the development of JKL in the overhead camshaft in automobile applications. The factory thus obtained from JKL was outmoded and XYZs immediate gain was, a s tock of highly qualified engineers and other personnel. JKL continued manufacturing their existing cars for a short period of time with the front and rear axles of XYZ till was closely incorporated into XYZ. In 1994, XZY acquired a large stake in the European based industrial design studio The Classic Designs, which they fully acquired by 1995. Also, by 1997 XYZ acquired the RALF group and owned it for some 3 years and then sold it when it was incurring huge loss in the automotive industry. After serving on the design team of XYZ for 7 years Mr. Lampard announced his departure from XYZ. He was replaced by Mr. Cole. Mr. Cole was known for his radical design contribution such as the XYZ 456 and XYZ 789. In 2001 production rights of the Mourinho Motorcycles was purchased by XYZ for 20 million euros. The company brings great value to their customers in a lot of ways like including promotions throughout the year, expert car care and maintenance advice and 4 points per ‚ ¬100 with their famous ADVANTAGE CARD. The customer can also subscribe to for extra benefits such as more treat for over 40 schemes by XYZ. On Premise IT As the company is evolving as a big brand day by day in the European automotive market, they need to have a proper IT setup too. As of now, the company has an on premise IT setup with its main office in Dublin 1, Ireland. Being an automotive company, there are not much departments in XYZ that need the servers or software. The servers are required only for running SQL databases to store all the company data related to the customers, inventory, employees, sales and purchases. Tape storage system is used for the backup purpose. To have the replicated copies of the data, XYZ makes use of RAID 10. Currently, XYZ is using a 25 Mbps bandwidth connection to connect all the servers and to ease out the networking. It includes hubs, switches and bridges for providing seamless networking. The hardware and the software configurations and other aspects related to the on premise IT setup of XYZ are as mentioned below: On Premise Hardware: Intel ® Xeon ® Processor: The company chose the Intel ® Xeon ® Processor to run and support the business applications and also to reduce the response time of the servers. Dell PowerEdge R910: Dell PowerEdge is a tower server having Intel E 7510 chipset. This chipset is popularly known for its key features like reliability, data protection and to improve the business productivity. It contains 16 GB ram with SATA connected to 8 TB storage. On Premise Software: Microsoft SQL server: XYZ is currently using SQL server for maintaining its database and keeping all the records of the customers, employees, sales and purchase, inventory management etc. Kaspersky Antivirus Operating System: Windows 10 is running on the front-end computers of the company while Ubuntu 16.04.01 server edition is used for servers. Storage: Currently, the company has 8 TB storage for storing its data. For backups, the company makes use of tape storage backup system. IT support Team: Currently XYZ has a small team dedicated to IT support. This team is in charge of configuring, administering and handling the IT systems present in the company. Also, the support team is responsible for managing the centralized server as well as to ensure that the complete data of XYZ is being properly managed and secured. As XYZ is expanding its business gradually, the current IT setup of the company is not enabling them to scale up. To scale up, they must increase their current on premise setup by adding more number of servers and increasing the storage space to incorporate the large amount of data onto the systems. With the increasing number of customers, there is a need for XYZ to have proper databases as well as additional softwares like ERP, CRM, Security Suite, LogMeln etc. Thus, the company is looking forward to opening new offices within Dublin. Also, there is a need for the company to increase the storage from 8 TB to 500 TB for data storage and backup purposes. Hence, the company also wants to eliminate the tape storage system, as it seems to be a costly option. The company thus, needs to take steps towards the IT sector and keep increasing it with the growth of business, so that it becomes easy to manage the daily and continuous needs of the company and the employees as well. Thus, this case study is to provide XYZ with the best economical solution for them to setup their new IT office in Dublin by making sure to cover all their needs and eliminating all the problems the company is currently facing and also, reducing the expenses as much as possible. On Premise Cost Analysis: No. of Servers No. of Cores Processor No. of processor per Server RAM (GB) Power (kW) Unit Cost Units (U) Unit Discount % Total Cost of 16 units 8 16 2 128 4.5 ‚ ¬7227 16 30 ‚ ¬45,530 Total Server Hardware Cost:‚ ¬45,530 Server Hardware maintenance: ‚ ¬34,148 Cost for 5 years(@ 15 %/year) Total Server hardware + maintenance: ‚ ¬79,678 Total Peak Power consumed in kW: ‚ ¬4.5 kW Rack Infrastructure Cost: Assuming 1 rack can accommodate 42 units; XYZ would require 1 rack. Rack Chassis with PDU cost *‚ ¬4000 per rack:‚ ¬3590 PDUs, dual 280V per rack cost *‚ ¬620 each, 2 per rack for higher availability: ‚ ¬1240 Top of Rack Switch (48 port 10/100/1G, 2 per Rack for higher availability, ‚ ¬6000 each): ‚ ¬12000 Development Cost of Rack and Server* ‚ ¬350 per server: ‚ ¬2800 Total Rack Infrastructure Cost: ‚ ¬19630 Total Cost ( Racks + Hardware): ‚ ¬ 99,308 Software Costs for Server: Being an automotive company XYZ uses Microsoft Dynamics GP software as their ERP software, Microsoft Dynamics CRM as their customer relationship management software and Microsoft SQL as their database software solution. Microsoft SQL Server:‚ ¬3717 Microsoft SQL Server Licence, ‚ ¬2000 per core: ‚ ¬16000 for 8 core processors Kaspersky Antivirus: ‚ ¬725 per user = ‚ ¬18,125 per user Total Server Software cost: ‚ ¬37,842 Total Server Hardware Software Installation, maintenance and updating cost: ‚ ¬22,500 TOTAL SERVER COSTS (HARDWARE + SOFTWARE) FOR 5 YEARS: ‚ ¬159,400 On Premise Facilities Cost: Total Power Consumed by Servers:4.5 kW Metered Cost per kWh:‚ ¬0.19 Estimated Power cost/month:‚ ¬589 Total monthly facilities cost:‚ ¬2173 Total facilities cost for 5 years:‚ ¬130,380 Storage Cost: SAN type storage: 500TB XYZ currently is in need of about the raw capacity requirement of 500 TB memory HDD. Also, XYZ currently makes use of RAID 10 with SQL servers for backup. Raw Storage (GB) Remaining Storage after OS recognized (~7%) Usable Storage on RAID 10 configuration (GB) Purchase price per raw GB after 50% discount Final SAN storage price 512000 GB 476,160 GB 238,080 GB ‚ ¬1.94 ‚ ¬991,232 Storage Backup Cost: Amount of Storage to be backed up (GB) Backup Window Time (Hours) Backup Window Processed TBs per drive No. of tape drives required for backup window (*~0.83 tape required for 1 TB) Cost of tape library per drive Backup cost for 5 years (Cost of tape drive * no of required tapes) 512000 GB 8 3.85 262 ‚ ¬1584 ‚ ¬415,008 Number of Racks required to host storage: 1 (Single rack can be used to 1000TB) Operating Rack Monthly Cost: ‚ ¬1320 Total data center space, power, cooling costs for 5 years: ‚ ¬79,200 Hence, total storage costs for 5 years would be:- Total Storage Cost = Raw Capacity cost + Backup Cost + Overhead Cost + Final Cost = ‚ ¬991,232 + ‚ ¬415,008 + ‚ ¬79,200 Total Storage Cost = ‚ ¬2,476,672 Bandwidth Costs: Size of Network Pipe Peak per Average Ratio On Premise Bandwidth Cost per Mbps Bandwidth Cost per month Total Bandwidth cost for 5 years 25 Mbps 3 ‚ ¬9 ‚ ¬75 ‚ ¬4500 Total Bandwidth Cost: ‚ ¬4500 IT Labour Cost: NETWORK ADMIN STORAGE ADMIN 2 ADMIN ON 1 SERVER % total admin effort 10% 80% 400% Monthly Salary ‚ ¬2500 ‚ ¬4000 ‚ ¬5000 5 Year Salary ‚ ¬150,000 ‚ ¬240,000 ‚ ¬1,200,000 Total IT salary cost: ‚ ¬1,590,000

Rainbows and Rain :: Personal Narrative Sports Frisbee Essays

Rainbows and Rain I sit on my bed taking off my cleats as I hang the Frisbee over the huge torn chunk of wall, caused my removal of the corkboard and the wonders of â€Å"wall tape.† I finish my dinner and realize that the great idea of placing my plate into my â€Å"Frisbee tray" is not such a great idea when the plate is permanently stuck inside the Frisbee for a whole three minutes as struggle to pull it out. I scale the roof of my grandmother’s cabin in order to save my Frisbee from beating rains, intolerable sun, and absolute loneliness. I scale the steep weeds and ivy groves in order to save my Frisbee from the treacherous rivers which roars below. I pull and huck the Frisbee. I toss and pass the Frisbee. My hands turn red and chapped in the cold and fast and sweet in the heat. The Frisbee sails in the sky meeting the sunset horizons before a swift catch and speedy throw sends it again, through a similar cycle, of something I call magic. To sprint, and just believe that if I reach out far enough I will perfectly meet the disc and it will meet my hand as one total motion has been completed. The power of running as the Frisbee flies over your head, as you lose all sense of gravity to make the final grasp at spinning disc, is the beginning of the high. Just before you meet the ground, whether it a be serious layout or you end up tasting grass, dirt, fertilizer, it’s a worth it, just as long as you have caught the Frisbee. And the high sinks into the spirituality of it all; victory is possible in that mighty catch. Truly we are Heroins. This, my friends, is the sport the absolute addiction, of one single disc, cleats (or no shoes if you prefer), some grudging comfy clothing, H2O, and a heroin teammate. But it's not just throwing and catching, which I cannot resist. And I mean I really cannot accept the idea of people throwing out in the quad without me. If players of old, and players of new are throwing the Frisbee all I can do is join. Even in HI, at Kona beach, people were throwing---no one I knew---I knew that I just had to play and they were totally cool about it all.

The Cycle of Evil in Shakespeares Hamlet :: GCSE English Literature Coursework

The Cycle of Evil in Hamlet In the play Hamlet, William Shakespeare illustrates how revenge can ravage one’s mind. Revenge, put in simple terms, is an act of inflicting harm or injury in return for a wrong. [Obvious?] Both Hamlet and Laertes vowed to seek revenge for the murders of their fathers. In doing so, they weren’t making right what was once wrong, but instead they were returning the same evil that had been inflicted upon them. Revenge isn’t good or sweet when it is in fact evil continuing to repeat itself. William Shakespeare helps bring this point to the forefront by using the Ghost of King Hamlet as a foil to Hamlet. The Ghost is used to give Hamlet someone to talk to in order to understand him more. These two characters both express their revulsion of Gertrude’s marriage to Claudius. [You need to cite from the text here, particularly for the Ghost.] Also, both King Hamlet and Hamlet were brought to their deaths at the hands of poison, although King Hamlet had the poison poured in his ear by Claudius while sleeping. On the other hand, Hamlet was poisoned with the point of Laertes’s rapier during their duel. The Ghost brings about two different perspectives of Hamlet. First, Hamlet can be viewed as a loyal son. Hamlet is prepared to avenge his father’s murder before the identity of the murderer was made. [He is?] After the Ghost reveals Claudius as his murderer, he demands that Hamlet does not punish Gertrude in seeking revenge against Claudius. Hamlet doesn’t get revenge against Claudius until his mother dies after drinking the poison in the cup that was originally intended for Hamlet to drink. [Ergo, does he get revenge for his father, or for his mother?] On the other hand, Hamlet doesn’t necessarily fulfill his father’s wishes. Although unintended, Hamlet â€Å"punishes† Gertrude by slaying Polonius before her eyes. Thus evil deeds were to continue to repeat themselves. [I don't see the repetition here.Which "evil deeds" are you referring to?] Another character used as a foil to Hamlet was Laertes. Both Hamlet and Laertes had endured the lose [loss] of their fathers at the hands of a murderer. Both character[s] sought revenge for these murders. Laertes immediately wanted to kill Hamlet for his crime, expressing how he would cut his throat in the church. The Cycle of Evil in Shakespeare's Hamlet :: GCSE English Literature Coursework The Cycle of Evil in Hamlet In the play Hamlet, William Shakespeare illustrates how revenge can ravage one’s mind. Revenge, put in simple terms, is an act of inflicting harm or injury in return for a wrong. [Obvious?] Both Hamlet and Laertes vowed to seek revenge for the murders of their fathers. In doing so, they weren’t making right what was once wrong, but instead they were returning the same evil that had been inflicted upon them. Revenge isn’t good or sweet when it is in fact evil continuing to repeat itself. William Shakespeare helps bring this point to the forefront by using the Ghost of King Hamlet as a foil to Hamlet. The Ghost is used to give Hamlet someone to talk to in order to understand him more. These two characters both express their revulsion of Gertrude’s marriage to Claudius. [You need to cite from the text here, particularly for the Ghost.] Also, both King Hamlet and Hamlet were brought to their deaths at the hands of poison, although King Hamlet had the poison poured in his ear by Claudius while sleeping. On the other hand, Hamlet was poisoned with the point of Laertes’s rapier during their duel. The Ghost brings about two different perspectives of Hamlet. First, Hamlet can be viewed as a loyal son. Hamlet is prepared to avenge his father’s murder before the identity of the murderer was made. [He is?] After the Ghost reveals Claudius as his murderer, he demands that Hamlet does not punish Gertrude in seeking revenge against Claudius. Hamlet doesn’t get revenge against Claudius until his mother dies after drinking the poison in the cup that was originally intended for Hamlet to drink. [Ergo, does he get revenge for his father, or for his mother?] On the other hand, Hamlet doesn’t necessarily fulfill his father’s wishes. Although unintended, Hamlet â€Å"punishes† Gertrude by slaying Polonius before her eyes. Thus evil deeds were to continue to repeat themselves. [I don't see the repetition here.Which "evil deeds" are you referring to?] Another character used as a foil to Hamlet was Laertes. Both Hamlet and Laertes had endured the lose [loss] of their fathers at the hands of a murderer. Both character[s] sought revenge for these murders. Laertes immediately wanted to kill Hamlet for his crime, expressing how he would cut his throat in the church.

Key Features of Lavertys Father and Son :: Bernard Mac Laverty

Describe the key features if a short story you have enjoyed, saying what has impressed you most about it. â€Å"Father and Son† is written by Bernard Mac Laverty. One of the main themes of â€Å"Father and Son† is the breakdown of a family relationship. A main feature of â€Å"Father and Son† is repetition and this feature helps to show the relationship between the father and son. Another feature is tones, each character reveals different examples of tones. The son has an aggressive tone, while the father has a caring and almost frail tone. These key features help the reader to enjoy the short story â€Å"Father and Son†. â€Å"Father and Son† helps to highlight the theme of family breakdown after the boss of a family member. This can be shown by â€Å"I love him so much it hurts but he won’t talk to me†. This shows the father tries to keep a close bond between them both. However, the son wants to create a large distance between them this maybe because of him growing up and wanting to become an adult. These helps most readers to relate to the characters and enjoy this book as most readers have been teenagers or are parents and can sympathize with their situation. This father and son relationship is very strained. A previous incident it is suggested that the son was close to death. The reader can pick this up with the quotation â€Å"Look, Da, I have not touched the stuff since I came back†. This helps to explain why the father has became so needy to be a part of his son’s life, because they have already lost a family member and almost losing his son scared him deeply, however this incidentally pushes his son further away. The father cares greatly for his son. The writer helps us to understand this by not naming the son. This encourages the repetition of â€Å"my son†, which shows the pride and love this father has for his son. This helps us to comprehend the pain the father feels about the distance in his relationship with his son. The pleasure of understanding and empathizing with the father helps us to enjoy â€Å"Father and Son†. The tone is very important in this short story as it helps to increase the knowledge of each character. The son, for instance, has a very aggressive tone as the reader may expect from a young frustrated man, an example of that is â€Å"I would like to slap his face and make a man out of him†.

Food Safety Illness

Jeremiah went grocery shopping on a hot summer day. He bought food for an upcoming family BBQ; ground beef for hamburgers, a couple of steaks, and the ingredients for making potato salad.When he left the store, he put his groceries in the trunk and stopped by the sports outlet store to pick up a Frisbee and croquet set. It took about 10 minutes at the sports store, and then Jeremiah headed home to prepare the food. He was concerned that it had been too hot in the car, but everything was still cold when he got home.Jeremiah took the groceries home and put everything in the refrigerator. The meat fit well on the top shelf, right above the potato salad ingredients.Later on, he got the groceries out to prep everything for the BBQ. He cooked the potatoes and used a sharp knife to trim some excess fat off of the raw steaks. Then he cut up the rest of the vegetables for the potato salad with the sharp knife on a cutting board.Jeremiah formed the hamburger patties, seasoned the steaks, and f inished making the potato salad. With only about 45 minutes to go before leaving for the BBQ, Jeremiah left everything sitting out on the counter while he showered and got ready.When he arrived at the BBQ, he set the potato salad on the picnic table and went to grill the steaks and burgers. He cooked both to about medium doneness, meaning both were pink in the middle.Jeremiah enjoyed one of the steaks he prepared and gave one to his cousin. The other family members enjoyed the burgers and potato salad; in fact, Jeremiah didn’t have a chance to try the salad. A couple of days after the BBQ, Jeremiah learned that everyone at the BBQ, with exception of himself and his cousin, experienced a bout of flu-like symptoms the following day.Write 50- to 150-word responses to each of the following questions. Be clear and concise, use complete sentences, and explain your answers using specific examples.1. Based on Scenario 1, what are the possible sources of food-borne illness? The possib le sources of food-borne illness could be cross-contamination from Jeremiah cutting off the fat from the steaks and cutting up the vegetables for the potato salad. If the same knife was used or if the same surface was even used to prepare both the meat and vegetables it could have contaminated the vegetables or the ground beef.2. Although Jeremiah did not get sick, there were several areas throughout Jeremiah’s day that could have led him to a serious case of food-borne illness. Point out these areas and briefly explain why they are of concern and what Jeremiah could have done differently. One time that a food-borne illness could have been obtained when Jeremiah put the groceries in the trunk of his car, typically the trunk of a car is the hottest part of a vehicle, so the groceries could have gone below the appropriate temperature to store it at.If Jeremiah would have been in the store more than twenty minutes, all depends on the temperature outside; it could have spoiled th e meat. Secondly, if Jeremiah bought mayo or any type of dressing for the potato salad it could have spoiled and therefore made the guest sick. Also Jeremiah never got to eat any of the potato salad so if it was cross contaminated than he would have not gotten sick.3. Why is it safe for steak to be pink in the middle, but potentially dangerous for a hamburger not to be cooked all the way through? It is safe for steak to be pink in the middle compared to the hamburger due to the hamburger being processed through a machine and being handled human beings  so therefore the meat can be contaminated more easily. With cooking the hamburger to being well done with no pink than it can kill some bacteria. For example some companies do not cleanse or clean their machines to cut down on the bacteria and any contamination that might have occurred.Scenario 2:After enjoying a delicious dinner of lasagna, Martha cleaned up the kitchen and left the covered tray of leftover lasagna on the counter t o cool. Since the lasagna was so dense and thick, it took about 4 hours for it to feel cool enough to go into the fridge for the night. The next day, Martha served leftover lasagna for lunch. She heated the lasagna thoroughly and it was finished.Within about 2–3 hours, everyone who ate the lasagna developed stomach cramps, fever, and nausea; most eventually started vomiting. The illness was pretty awful, but thankfully relatively short-lived.Write 50- to 150-word responses to each of the following questions. Be clear and concise, use complete sentences, and explain your answers using specific examples.1. How could this illness have been prevented? The illness could have been prevented by having the lasagna uncovered while it was cooling so that condensation would have not built up on the cover. Then the water went into the lasagna, which was bacteria, and made the employees sick that ate it. The other thing that could have been done is had the lasagna put into the oven until it was thoroughly cooled.2. Based on the incubation period and symptoms of the illness, what is the most likely microorganism responsible for this illness? E-coli would be the most reasonable reason for the illness. Because Martha did not reheat the lasagna properly for the second time around the bacteria was never killed off. If she would have reheated the lasagna in the oven at the proper temperature the bacteria would have been killed off.3. Describe the temperature danger zone. It would have to cook at a certain temperature to cook all the bacteria and the microorganisms out of the lasagna. Harmful bacteria such as E-coli contaminate food without physical signs, smells or tastes. Temperatures hotter than 165 °F not just the outside but making sure the inside is also cooked correctly.4. How could Martha have sped up the cooling process of the lasagna? If she would have left the lasagna uncovered on the counter it would have cooled down a lot faster. As soon as it would have bec ame room temperature she could have covered it and put it in the refrigerator.5. If the leftover lasagna was thoroughly reheated, (which it was), how did it still lead to food-borne illness? When Martha put the lasagna into the microwave it wasn’t hot enough for the bacteria to be cooked out of the lasagna. If she would have reheated in the lasagna would in the stove instead all the bacteria would have been cooked out and no one would have gotten sick.Scenario 3:Sally was making marinated shish-kabobs to grill for dinner. She made a beautiful marinade and then cut up the raw chicken on a cutting board. She put the chunks of chicken in the marinade and let it sit on the counter for about 3 hours until it was time to cook.While the chicken was marinating, Sally prepared the vegetables. She cut them using the same cutting board and knife; she rinsed both off with warm water between cutting the chicken and the vegetables.Once the chicken had marinated, Sally put the chicken and v egetables on skewers to be grilled. She also started rice in the rice cooker to go with the shish-kabobs.As the shish-kabobs were grilling, Sally put the marinade in a serving dish for extra sauce to put over the rice.Several hours later, Sally and her family members all developed nausea, vomiting, diarrhea, fever, headache, and abdominal pain.Write 50- to 150-word responses to each of the following questions. Be clear and concise, use complete sentences, and explain your answers using specific examples.1. What could be the cause of Sally and her family members’ illness? Would be improper food preparation by leaving chicken out on the counter more than allotted time as it developed bacteria and salmonella. She also prepared vegetables on the cutting board without proper cleaning with hot water and soap. Also reusing the marinated sauce on the rice, she should have been cooked so all the bacteria could have been cook out.2. How could this illness have been prevented? This illn ess could have been prevented with proper cleaning of all preparation and utensils materials. With proper washing with soap and hot water it would not cross contaminate the chicken, vegetables and the marinate. The illness could have also been prevented if she would have properly stored the chicken in the kitchen to make sure that bacteria would have not been growing.

8 Key Element for a Business Model

E-commerce: business. technology. society. E-commerce E commerce Business. Technology. Society gy y Kenneth  C. Laudon Copyright  © 2011 Pearson Education, Ltd. Chapter 5 Business  Models  for  E? commerce Copyright  © 2007Pearson Education, Ltd. 2011 Pearson Education, Inc. Slide 1-2 E-commerce Business Models Business  model d l Set  of  planned  activities  designed  to  result  in  a   Set of planned activities designed to result in a profit  in  a  marketplace Business  plan Describes  a  firm s  business  model Describes a firm’s business modelE commerce  business  model E? commerce business model Uses/leverages  unique  qualities  of  Internet  and   Web W b Slide 2-3 8 Key Elements of Business Model 1. 2. 3. 4. 5. 6. 7. 8. Value  proposition Revenue  model Market  opportunity Market opportunity Competitive  environment Competitive  advantage Market  strategy Market strategy Organizational  De velopment Management  team Slide 2-4 1. Value Proposition Why  should  the  customer  buy  from  you? h h ld h b f ? Successful  e? ommerce  value   S f l l propositions: Personalization/customization Reduction  of  product  search,  price  discovery  costs Facilitation  of  transactions  by  managing  product   delivery Slide 2-5 2. Revenue Model How  will  the  firm  earn  revenue,  generate   p profits,  and  produce  a  superior  return  on   p p invested  capital? Major  types: Advertising  revenue  model g Subscription  revenue  model Transaction  fee  revenue  model Transaction fee revenue model Sales  revenue  model Affiliate  revenue  model Slide 2-6 3. Market Opportunity What  marketspace  do  you  intend  to   h k d d serve  and  what  is  its  size?Marketspace:  Area  of  actual  or  potential  commercial  value   in  which  companyà ‚  intends  to  operate in which company intends to operate Realistic  market  opportunity:  Defined  by  revenue   potential  in  each  market  niche  in  which  company  hopes  to   potential in each market niche in which company hopes to compete Market  opportunity  typically  divided  into   M k t t it t i ll di id d i t smaller  niches Slide 2-7 4. Competitive Environment Who  else  occupies  your  intended   h l d d marketspace? p Other  companies  selling  similar  products  in  the  same   marketspace Includes  both  direct  and  indirect  competitors Influenced  by: Influenced by:Number  and  size  of  active  competitors Each  competitor s  market  share Each competitor’s market share Competitors’  profitability Competitors pricing Competitors’  pricing Slide 2-8 5. Competitive Advantage Achieved  when  firm: h d h f Produces  superior  pro duct  Ã‚  or Produces superior product or Can  bring  product  to  market  at  lower  price   than  competitors th tit Important  concepts: p p Asymmetries First? mover  advantage Fi t d t Unfair  competitive  advantage Leverage Slide 2-9 6. Market Strategy How  do  you  plan  to  promote  your   products  or  services  to  attract  your   products or services to attract your target  audience?Details  how  a  company  intends  to  enter  market and  attract  customers Best  business  concepts  will  fail  if  not  properly   marketed  to  potential  customers k d i l Slide 2-10 7. Organizational Development What  types  of  organizational  structures   within  the  firm  are  necessary  to  carry  out   within the firm are necessary to carry out the  business  plan? Describes  how  firm  will  organize  work Typically  divided  into  functiona l  departments As  company  grows,  hiring  moves  from  generalists  to   As company grows hiring moves from generalists to specialists Slide 2-11 8.Management Team What  kinds  of  experiences  and   background  are  important  for  the   background are important for the company’s  leaders  to  have? Employees  are  responsible  for  making  the  business  model   work Strong  management  team  gives  instant  credibility  to   outside  investors Strong  management  team  may  not  be  able  to  salvage  a   weak  business  model,  but  should  be  able  to  change  the   model  and  redefine  the  business  as  it  becomes  necessary Slide 2-12 Insight on Business Online Grocers: Finding and Executing the Right Model g g Class Discussion Slide 2-13 Categorizing E-commerce Business ModelsNo  one  correct  way We  categorize  businessà ‚  models  according  to: We categorize business models according to: E? commerce  sector  (B2C,  B2B,  C2C) Type  of  e? commerce  technology;  i. e. m? commerce Type of e commerce technology; i e m commerce Similar  business  models  appear  in  more  than   one  sector Some  companies  use  multiple  business   Some companies use multiple business models;  e. g. eBay Slide 2-14 B2C Business Models: Portal Search  plus  an  integrated  package  of  content   and  services Revenue  models:   d l Advertising,  referral  fees,  transaction  fees,  subscriptions g p Variations:Horizontal  /  General Vertical  /  Specialized  (Vortal) Vertical / Specialized (Vortal) Pure  Search Slide 2-15 Insight on Technology Can Bing Bong Google? Class Discussion Slide 2-16 B2C Models: E-tailer Online  version  of  traditional  retailer Revenue  model:  Sales Variations: Virtual  merchant Virtual merchant Bricks? and? clicks Catalog  merchant C t l h t Manufacturer? direct Low  barriers  to  entry Slide 2-17 B2C Models: Content Provider Digital  content  on  the  Web News,  music,  video Revenue  models:   Revenue models: Subscription;  pay  per  download  (micropayment);   advertising;  affiliate  referral  fees Variations:Content  owners Syndication S di i Web  aggregators Slide 2-18 B2C Models: Transaction Broker Process  online  transactions  for  consumers Primary  value  proposition—saving  time  and  money Revenue  model:   R d l Transaction  fees Industries  using  this  model: Financial  services Travel  services Job  placement  services Slide 2-19 B2C Models: Market Creator Create  digital  environment  where  buyers   and  sellers  can  meet  and  transact Examples:   Priceline eBay y Revenue  model:  Transaction  fees Revenue model: Transaction fee s Slide 2-20 B2C Models: Service Provider Online  services e. g. Google:  Google  Maps,  Gmail,  etc. Value  proposition   Value propositionValuable,  convenient,  time? saving,  low? cost  alternatives  to   traditional  service  providers t diti l i id Revenue  models: Revenue models: Sales  of  services,  subscription  fees,  advertising,  sales  of   marketing  data marketing data Slide 2-21 B2C Models: Community Provider Provide  online  environment  (social   network)  where  people  with  similar   interests  can  transact,  share  content,  and   , , communicate   E. g. Facebook,  MySpace,  LinkedIn,  Twitter Revenue  models: R d l Typically  hybrid,  combining  advertising, subscriptions,  sales,  transaction  fees,  affiliate  fees Slide 2-22 B2B Business Models Net  marketplaces E? istributor E procurement E? procurement Exchange Industry  consortium Industry cons ortium Private  industrial  network Private industrial network Single  firm Industry? wide Industry wide Slide 2-23 B2B Models: E-distributor Version  of  retail  and  wholesale  store,   , MRO  goods  and  indirect  goods Owned  by  one  company  seeking  to  serve   many  customers Revenue  model:  Sales  of  goods Example:  Grainger. com Slide 2-24 B2B Models: E-procurement Creates  digital  markets  where   participants  transact  for  indirect  goods B2B  service  providers,  application  service  providers  (ASPs) B2B service providers application service providers (ASPs)Revenue  model: Service  fees,  supply? chain  management,  fulfillment   services Example:  Ariba Slide 2-25 B2B Models: Exchanges Independently  owned  vertical  digital   p y g marketplace  for  direct  inputs Revenue  model:  Transaction,  commission  fees Revenue model Transaction commission fees C eate po e u co pet t o bet ee Create  powerful  competition  between   suppliers Tend  to  force  suppliers  into  powerful  price   T d f li i f l i competition;  number  of  exchanges  has   dropped  dramatically d dd ll Slide 2-26 B2B Models: Industry Consortia Industry? wned  vertical  digital  marketplace   open  to  select  suppliers More  successful  than  exchanges More successful than exchanges Sponsored  by  powerful  industry  players Strengthen  traditional  purchasing  behavior Revenue  model:  Transaction,  commission  fees R d l T ti i i f Example:  Exostar Example: Exostar Slide 2-27 Private Industrial Networks Designed  to  coordinate  flow  of  communication   among  firms  engaged  in  business  together fi di b i h Electronic  data  interchange  (EDI) Single  firm  networks Most  common  form   M t f Example:  Wal? Mart’s  network   for  suppliersIndustry? wide  networks Often  evolve  out  of  industry  associations   Often evolve out of industry associations Example:  Agentrics Slide 2-28 Other E-commerce Business Models Consumer? to? consumer  (C2C) eBay,  Craigslist Peer? to? peer  (P2P) Peer to peer (P2P) The  Pirate  Bay,  Cloudmark M? commerce: Technology  platform  continues  to  evolve Technology platform continues to evolve iPhone,  smartphones  energizing  interest  in  m? commerce   pp apps Slide 2-29 Insight on Society Where R U? Not Here! Class Discussion Slide 2-30 E-commerce Enablers: Gold Rush ModelE? commerce  infrastructure  companies   p have  profited  the  most: Hardware,  software,  networking,  security E? commerce  software  systems,  payment  systems Media  solutions,  performance  enhancement CRM  software CRM software Databases Hosting  services,  etc. Slide 2-31 How Internet & Web Change Busi ness E? commerce  changes  industry  structure   g y by  changing: Basis  of  competition  among  rivals Barriers  to  entry y Threat  of  new  substitute  products Strength  of  suppliers Bargaining  power  of  buyers Bargaining power of buyers Slide 2-32 Industry Value ChainsSet  of  activities  performed  by  suppliers,   manufacturers,  transporters,  distributors,  and   f di ib d retailers  that  transform  raw  inputs  into  final   products  and  services   Internet  reduces  cost  of  information  and   Internet reduces cost of information and other  transactional  costs Leads  to  greater  operational  efficiencies,   lowering  cost,  prices,  adding  value  for   lowering cost prices adding value for customers Slide 2-33 E-commerce & Industry Value Chains Figure  5. 4 Slide 2-34 Firm Value Chains Activities  that  a  firm  engages  in  to   create inal  products  from  raw  inputs Each  step  adds  value Effect  of  Internet: Eff fI Increases  operational  efficiency p y Enables  product  differentiation Enables  precise  coordination  of  steps  in  chain E bl i di ti f t i h i Slide 2-35 E-commerce & Firm Value Chains Figure  5. 5 Slide 2-36 Firm Value Webs Networked  business  ecosystem   Uses  Internet  technology  to  coordinate  the   value  chains  of  business  partners l h i fb i Coordinates  a  firm’s  suppliers  with  its  own   C di t fi ’ li ith it production  needs  using  an  Internet? based   supply  chain  management  systemSlide 2-37 Internet-Enabled Value Web bl d l b Figure  5. 6 Slide 2-38 Business Strategy Plan  for  achieving  superior  long? term   returns  on  the  capital  invested  in  a   business  firm   business firm Four  Generic  Strategies 1. Di fferentiation   2. Cost 3. Scope 4. 4 Focus Slide 2-39 Chapter 6 E-commerce Marketing Copyright  © 2010 Pearson Education, Ltd. 2011 Pearson Education, Inc. Slide 6-40 Netflix N fli Strengthens and Defends Its Brand Class Discussion Slide 6-41 Consumers Online: Internet Audience & Consumer Behavior Around  70%  (82  million)  U. S. ouseholds  have   Around 70% (82 million) U S households have Internet  access  in  2010 Growth  rate  has  slowed Intensity  and  scope  of  use  both  increasing d f b h Some  demographic  groups  have  much  higher   Some demographic groups have much higher percentages  of  online  usage  than  others   Gender,  age,  ethnicity,  community  type,  income,  education Slide 6-42 Consumers Online: Internet Audience & Consumer Behavior Broadband  audience  vs. dial? up  audience Purchasing  behavior  affected  by   neighborhood Lifestyle  and  sociological  impa cts Use  of  Internet  by  children,  teens Use  of  Internet  as  substitute  for  other  social  activitiesMedia  choices Traditional  media  competes  with  Internet  for  attention Traditional media competes with Internet for attention Slide 6-43 Consumer Behavior Models Study  of  consumer  behavior Social  science   Attempts  to  explain  what  consumers  purchase   Attempts to explain what consumers purchase and  where,  when,  how  much  and  why  they  buy Consumer  behavior  models Predict  wide  range  of  consumer  decisions Predict wide range of consumer decisions Based  on  background  demographic  factors  and   other  intervening,  more  immediate  variables   h i i i di i bl Slide 6-44 General Model of Consumer Behavior Figure  6. Slide 6-45 Background Demographic Factors Culture:  Broadest  impact Subculture  (ethnicity,  age,  lifestyle,  geography) S b lt ( th i it lif t l h ) Social Reference  groups Direct  Ã‚  reference  groups g p Indirect  reference  groups Opinion  leaders  (viral  influencers) Lifestyle  groups   f l Psychological Psychological  profiles Slide 6-46 Online Purchasing Decision Psychographic  research Combines  demographic  and  psychological  data Combines demographic and psychological data Divides  market  into  groups  based  on  social  class,  lifestyle,   and/or  personality  characteristics and/or personality characteristicsFive  stages  in  the  consumer  decision  process: 1. 2. 3. 4. 5. Awareness  of  need Search  for  more  information Evaluation  of  alternatives Actual  purchase  decision Actual purchase decision Post? purchase  contact  with  firm Slide 6-47 Consumer D i i C Decision Process & P Supporting Communications Figure  6. 3 Slide 6-48 Model of Online Consumer Behavior Decision   process  similar  for  online  and  offline   behavior General  online  behavior  model Consumer  skills Product  characteristics Attitudes  toward  online  purchasing Perceptions  about  control  over  Web  environment p Web  site  featuresClickstream  behavior:  Transaction  log  for   Clickstream behavior: Transaction log for consumer  from  search  engine  to  purchase Slide 6-49 Model of Online Consumer Behavior Figure  6. 4 Slide 6-50 Model of Online Consumer Behavior Clickstream  factors  include: Number  of  days  since  last  visit Number of days since last visit Speed  of  clickstream  behavior Number  of  products  viewed  during  last  visit b f d i dd i l ii Number  of  pages  viewed Supplying  personal  information Number  of  days  since  last  purchase Number  of  past  purchasesClickstream  marketing Clickstream marketing Slide 6-51 Shoppers: B rowsers & Buyers Shoppers:  87%  of  Internet  users 72%  buyers 72% buyers 16%  browsers  (purchase  offline) One? third  offline  retail  purchases  influenced  by   O thi d ffli t il h i fl db online  activities Online  traffic  also  influenced  by  offline  brands  and   shopping pp g E? commerce  and  traditional  commerce  are  coupled: part  of  a  continuum  of  consuming  behavior part of a continuum of consuming behavior Slide 6-52 Online Shoppers & Buyers Figure  6. 5 Slide 6-53What Consumers Shop & Buy Online Big  ticket  items  ($500  plus) Travel,  computer  hardware,  consumer  electronics Expanding   Consumers  more  confident  in  purchasing  costlier  items Small  ticket  items  ($100  or  less) ($ ) Apparel,  books,  office  supplies,  software,  etc. Sold  by  first  movers  on  Web Sold by first movers on Web Physically  small  i tems High  margin  items   Broad  selection  of  products  available Slide 6-54 What Consumers Buy Online Figure  6. 6 Slide 6-55 Intentional Acts: How Shoppers Find Vendors Online pp Search  engines  (59%) S h i (59%) Coupon  Web  sites  (29%) Coupon Web sites (29%) Comparison  shopping  sites  (27%) E? ail  newsletters  (25%) Online  shoppers  are  highly  intentional,   looking  for  specific  products,  companies,   services Slide 6-56 Table  6. 6 Slide 6-57 Trust, Utility, Opportunism in Online Markets Two  most  important  factors  shaping  decision   Two most important factors shaping decision to  purchase  online: Utility:   U ili Better  prices,  convenience,  speed Trust: Asymmetry  of  information  can  lead  to  opportunistic   behavior  by  sellers Sellers  can  develop  trust  by  building  strong  reputations   for  honesty,  fairness,  delivery   Slide 6-58 Basic Marketing Concepts MarketingStrategies  and  actions  to  establish  relationship   Strategies and actions to establish relationship with  consumer  and  encourage  purchases  of   p products  and  services Addresses  competitive  situation  of  industries  and   firms Seeks  to  create  unique,  highly  differentiated   products  or  services  that  are  produced  or  supplied   by  one  trusted  firm Unmatchable  feature  set Avoidance  of  becoming  commodity Slide 6-59 Feature Sets Three  levels  of  product  or  service 1. Core  product e. g. cell  phone g p 2. Actual  product Characteristics  that  deliver  core  benefits Ch t i ti th t d li b fit e. g. wide  screen  that  connects  to  Internet 3. Augmented  productAdditional  benefits Basis  for  building  the  product’s  brand e. g. product  warranty Slide 6-60 Featu re Set Figure  6. 7 Slide 6-61 Products, Brands & Branding Process Brand: Expectations  consumers  have  when  consuming,  or   thinking  about  consuming,  a  specific  product Most  important  expectations:  Quality,  reliability,   Most important expectations: Quality reliability consistency,  trust,  affection,  loyalty,  reputation Branding:  Process  of  brand  creation Branding: Process of brand creation Closed  loop  marketing Brand  strategy Brand  equity Brand eq it Slide 6-62 Marketing A ti iti M k ti Activities: From Products to Brands Figure  6. 8Slide 6-63 STP: Segmenting, Targeting, Positioning Major  ways  used  to  segment,  target  customers 1. 2. 3. 4. 5. 6. Behavioral B h i l Demographic Psychographic h hi Technical Contextual Search Within  segment,  product  is  positioned and  branded  as   a  unique,  high? value  product,  especially  suited  to   q g p p y ne eds  of  segment  customers Slide 6-64 Are Brands Rational? For  consumers,  a  qualified  yes: Brands  introduce  market  efficiency  by  reducing  search  and   decision? making  costs For  business  firms,  a  definite  yes: A  major  source  of  revenue Lower  customer  acquisition  cost Increased  customer  retention Successful  brand  constitutes  a  long? asting  (though  not   necessarily  permanent)  unfair  competitive  advantage Slide 6-65 Can Brands Survive Internet? Brands & Price Dispersion p Early  postulation:   Law  of  One  Price ;  end  of  brands Early postulation: â€Å"Law of One Price†; end of brands Instead: Consumers  still  pay  premium  prices  for  differentiated   products E? commerce  firms  rely  heavily  on  brands  to  attract   customers  and  charge  premium  prices Substantial  price  dispersion Large  differences  in  price  sensitivity  for  same  product Large differences in price sensitivity for same product â€Å"Library  effect† Slide 6-66Revolution in Internet Marketing Technology Three  broad  impacts: Scope  of  marketing  communications  broadened   Richness  of  marketing  communications  increased g Information  intensity  of  marketplace  expanded Internet  marketing  technologies: Internet marketing technologies: Web  transaction  logs Cookies  and  Web  bugs Cookies and Web bugs Databases,  data  warehouses,  data  mining Advertising  networks Customer  relationship  management  systems Slide 6-67 Web Transaction LogsBuilt  into  Web  server  software Record  user  activity  at  Web  site y Webtrends:  Leading  log  analysis  tool Provides  much  marketing  data,  especially  Ã‚   Provides much marketing data especially combined  with: Registratio n  forms R i i f Shopping  cart  database Answers  questions  such  as: What  are  major  patterns  of  interest  and  purchase? After  home  page,  where  do  users  go  first? Second? Slide 6-68 Cookies & Web Bugs Cookies: Small  text  file  Web  sites  place  on  visitor’s  PC  every  time   they  visit,  as  specific  pages  are  accessed Provide  Web  marketers  with  very  quick  means  of   identifying  customer  and  understanding  prior  behavior Flash  cookiesWeb  bugs: Tiny  (1  pixel)  graphics  embedded  in  e mail  and  Web  sites Tiny (1 pixel) graphics embedded in e? mail and Web sites Used  to  automatically  transmit  information  about  user  and   page being viewed to monitoring server page  being  viewed  to  monitoring  server Slide 6-69 Insight on Society g y Every Move You Make, Every Click You Make, Weâ₠¬â„¢ll Be Tracking You , g Class Discussion Slide 6-70 Databases Database:  Ã‚  Stores  records  and  attributes Database  management  system  (DBMS):   Software  used  to  create,  maintain,  and  access  databasesSQL  (Structured  Query  Language): Industry? standard  database  query  and  manipulation  language  used  in   y q y p g g a  relational  database Relational  database: Represents  data  as  two? dimensional  tables  with  records  organized  in   rows  and  attributes  in  columns;  data  within  different  tables  can  be   flexibly  related  as  long  as  the  tables  share  a  common  data  element flexibly related as long as the tables share a common data element Slide 6-71 Relational Database View of E-commerce Customers Figure  6. 12 Slide 6-72 Data Warehouses & Data Mining Data  warehouse:Collects  firm s  transactional  and  custom er  data  in  single   Collects firm’s transactional and customer data in single location  for  offline  analysis  by  marketers  and  site   managers Data  mining: Analytical  techniques  to  find  patterns  in  data,  model   Analytical techniques to find patterns in data model behavior  of  customers,  develop  customer  profiles Query? driven  data  mining Query driven data mining Model? driven  data  mining Rule? based  data  mining l b dd Collaborative  filtering Slide 6-73 Data Mining & Personalization Figure  6. 13 Slide 6-74 Insight on TechnologyThe Long T il Big Hits and Big Misses Th L Tail: Bi Hi d Bi Mi Class Discussion Slide 6-75 Customer Relationship Management ( (CRM) Systems ) y Record  all  contact  that  customer  has  with  firm Generates  customer  profile  available  to  everyone  in firm  with  need  to  Ã¢â‚¬Å"know  the  customer† fi ith d t â€Å"k th t † Customer profiles can contain: ustomer  profiles  can  contain: Map  of  the  customer’s  relationship  with  the  firm Product  and  usage  summary  data Demographic  and  psychographic  data Profitability  measures Contact  history   Contact history Marketing  and  sales  information Slide 6-76Customer Relationship Management System Figure  6. 14 Slide 6-77 Market Entry Strategies Figure  6. 15 Slide 6-78 Establishing Customer Relationship Advertising  Networks Banner  advertisements Ad  server  selects  appropriate  banner  ad  based  on   Ad server selects appropriate banner ad based on cookies,  Web  bugs,  backend  user  profile   databases Permission  marketing Permission marketing Affiliate  marketing g Slide 6-79 How Advertising Network Works e. g. , DoubleClick Figure  6. 16 Slide 6-80 Establishing Customer Relationship (cont’d) Viral  marketingGett ing  customers  to  pass  along  company’s  marketing   message  to  friends,  family,  and  colleagues Blog  marketing Using  blogs  to  market  goods  through  commentary  and   U i bl k d h h d advertising Social  network  marketing,  social  shopping   Mobile  marketing Mobile marketing Slide 6-81 Insight on Business Social Network Marketing: Let’s Buy Together Class Discussion Slide 6-82 Establishing Customer Relationship (cont’d) Wisdom  of  crowds  (Surowiecki,  2004) ( , ) Large  aggregates  produce  better  estimates  and  judgments Examples:   E l Prediction  markets Folksonomies Social  tagging Social taggingBrand  leveraging Slide 6-83 Customer Retention: Strengthening Customer Relationship p Mass  marketing Mass marketing Direct  marketing Micromarketing   Micromarketing Personalized,  one? to? one  marketing  Ã‚   Segmenting  market  on  precise  a nd  timely  understanding  of   Segmenting market on precise and timely understanding of individual’s  needs Targeting  specific  marketing  messages  to  these  individuals Positioning  product  vis? a? vis  competitors  to  be  truly  unique Personalization Can  increase  consumers  sense  of  control,  freedom Can  also  result  in  unwanted  offers  or  reduced  anonymity Slide 6-84Mass Market-Personalization Continuum Figure  6. 17 Slide 6-85 Other Customer Retention Marketing Technics Customization Customer  co? production Transactive  content:   Combine  traditional  content  with  dynamic  information   tailored  to  each  user’s  profile Customer  service FAQs Q Real? time  customer  service  chat  systems Automated  response  systems Automated response systems Slide 6-86 Net Pricing Strategies Pricing Integral  part  of  marketing  strategy I t l t f k ti t t Traditionally  based  on:   Fixed  cost   Variable  costs   Demand  curve Price  discrimination Price discriminationSelling  products  to  different  people  and  groups   based  on  willingness  to  pay Slide 6-87 Net Pricing Strategies (cont’d) Free  and  freemium Can  be  used  to  build  market  awareness Versioning Creating  multiple  versions  of  product  and  selling   essentially  same  product  to  different  market  segments   at  different  prices at different prices Bundling Offers  consumers  two  or  more  goods  for  one  price Off t d f i Dynamic  pricing: Auctions Yield  management Slide 6-88 Channel Management Strategies Channels: Different  methods  by  which  goods  can  be  distributed  and   soldChannel  conflict: When  new  venue  for  selling  products  or  services  threatens   gp or  destroy s  existing  sales  venues E. g. online  airline/travel  services  and  Ã‚  traditional  offline   travel  agencies Some  manufacturers  are  using  partnership   gp p model  to  avoid  channel  conflict   Slide 6-89 Chapter 7: E-commerce Marketing Communications Chapter 7 E-commerce Advertising Copyright  © 2010 Pearson Education, Ltd. 2011 Pearson Education, Inc. Slide 7-90 Video Ads: Shoot, Click, Buy Class Discussion Slide 7-91 Marketing Communications Two  main  purposes:Sales  Ã¢â‚¬â€œ promotional  sales  communications   Branding  Ã¢â‚¬â€œ b di B di branding  communications i i Online  marketing  communications Online marketing communications Takes  many  forms Online  ads,  e? mail,  public  relations,  Web   sites Slide 7-92 Online Advertising li d i i $25  billion,  15%  of  all  advertising Advantages: Internet  is  where  audience  is  moving g Ad  targeting Greater  opp ortunities  for  interactivity Greater opportunities for interactivity Disadvantages: Cost  versus  benefit How  to  adequately  measure  results Supply  of  good  venues  to  display  ads Slide 7-93 Online Advertising from 2002-2014 Figure  7. Slide 7-94 Forms of Online Advertisements Display  ads Rich  media Video  ads Search  engine  advertising Social  network,  blog,  and  game  advertising Social network blog and game advertising Sponsorships Referrals  (affiliate  relationship  marketing) E? mail  marketing g Online  catalogs Slide 7-95 Display Ads Banner  ads Rectangular  box  linking  to  advertiser’s  Web  site IAB  guidelines e. g. Full  banner  is  468  x  60  pixels,  13K e g Full banner is 468 x 60 pixels 13K Pop? up  ads Appear  without  user  calling  for  them Provoke  negative  consumer  sentiment g Twice  as  effective  as  normal  banner  ads Pop? nder  ads:  Open  beneath  browser  window Pop under ads: Open beneath browser window Slide 7-96 Rich Media Ads Use  Flash,  DHTML,  Java,  JavaScript About  7%  of  all  online  advertising  expenditures Tend  to  be  more  about  branding d b b b di Boost  brand  awareness  by  10% Boost brand awareness by 10% IAB  standards  limit  length Interstitials Superstitials Slide 7-97 Video Ads Fastest  growing  form  of  online  advertisement IAB  standards Linear  video  ad Non? linear  video  ad In? banner  video  ad In? text  video  ad Ad placement Advertising  networks Advertising  exchanges Banner  swappingSlide 7-98 Search Engine Advertising h i d i i Almost  50%  of  online  ad  spending  in  2010 Types: Paid  inclusion  or  rank Paid inclusion or rank Inclusion  in  search  results Sponsored  link  areas p Keyword  advertising e. g. Google  AdWords e g Google AdWords Network  keyword  advertising  (context   advertising) d ii ) e. g. Google  AdSense Slide 7-99 Search Engine Advertising (cont’d) Nearly  ideal  targeted  marketing Nearly ideal targeted marketing Issues:   Disclosure  of  paid  inclusion  and  placement   practices Click  fraud   Ad  nonsense   Slide 7-100 Mobile Advertising Half  of  U. S.Internet  users  access  Internet   Half of U. S. Internet users access Internet with  mobile  devices Currently  small  market,  but  fastest   growing  platform  (35%) growing platform (35%) Google  and  Apple  in  race  to  develop   Google and Apple in race to develop mobile  advertising  platform AdMob,  iAd Slide 7-101 Sponsorships & Referrals Sponsorships Paid  effort  to  tie  advertiser s  name  to   Paid effort to tie advertiser’s name to particular  information,  event,  venue  in  a  way   that  reinforces  brand  in  positive  yet  not  overtly   that reinforces brand in positive yet not overtly commercial  manner ReferralsAffiliate  relationship  marketing p g Permits  firm  to  put  logo  or  banner  ad  on   another  firm’s  Web  site  from  which  users  of   th fi ’ W b it f hi h f that  site  can  click  through  to  affiliate’s  site Slide 7-102 E-mail Marketing & Spam Explosion Direct  e? mail  marketing   Low  cost,  primary  cost  is  purchasing  addresses Spam:  Unsolicited  commercial  e? mail Spam: Unsolicited commercial e mail Approx. 90%  of  all  e? mail Efforts  to  control  spam: Technology  (filtering  software)   Government  regulation  (CAN? SPAM  and  state  laws) Voluntary  self? regulation  by  industries  (DMA  ) y g y Volunteer  efforts Slide 7-103Percentage of E-mail That Is Spam Figure 7. 6 Slide 7-104 Online Catalogs Equivalent  of  paper? based  catalogs Graphics? intense;  use  increasing  with  increase   in  broadband  use in broadband use Two  types: 1. 2. 2 Full? page  spreads,  e. g. Landsend. com Grid  displays,  e. g. Amazon Grid displays e g Amazon In  general,  online  and  offline  catalogs   complement  each  other Slide 7-105 Social Marketing â€Å"Many? to? many†Ã‚  model Uses  digitally  enabled  networks  to  spread  ads Blog  advertising   Blog advertising Online  ads  related  to  content  of  blogs Social  network  advertising:   Social network advertising:Ads  on  MySpace,  Facebook,  YouTube,  etc. Game  advertising:   G d ti i Downloadable  Ã¢â‚¬Å"advergames† Placing  brand? name  products  within  games Slide 7-106 Insight on Society g y Marketing to Children of the Web in the Age of Social Networks g Class Discussion Slide 7-107 Behavioral Targeting Interest? based  advertising Data  aggregators  develop  profiles Data aggregators develop profiles Search  engine  queries Online  browsing  history O li b i hi Offline  data  (income,  education,  etc. ) d Information  sold  to  3rd party  advertisers,  who  deliver   ads  based  on  profile Ad  exchanges Privacy  concerns acy co ce s Consumer  resistance Slide 7-108Mixing Off-line & Online Marketing Communications g Most  successful  marketing  campaigns   M t f l k ti i incorporate  both  online  and  offline  tactics Offline  marketing Drive  traffic  to  Web  sites Drive traffic to Web sites Increase  awareness  and  build  brand  equity Consumer  behavior  increasingly  multi? channel 60%  consumers  research  online  before  buying  offline % y g Slide 7-109 Insight on Business g Are the Very Rich Different From You and Me? Class Discussion Sl ide 7-110 Online Marketing Metrics: Lexicon Measuring  audience  size  or  market  share Impressions I i Click? through  rate  (CTR) View? hrough  rate  (VTR) Vi th h t (VTR) Hits Page  views P i Stickiness  (duration) Unique  visitors Loyalty Reach Recency Slide 7-111 Online Marketing Metrics (cont’d) Conversion  of  visitor   Conversion of visitor to  customer Acquisition  rate q Conversion  rate Browse? to? buy? ratio View? to? cart  ratio Vi t t ti Cart  conversion  rate Checkout  conversion  rate   Checkout conversion rate Abandonment  rate Retention  rate Attrition  rate E mail  metrics E? mail metrics Open  rate Delivery  rate Delivery rate Click? through  rate   (e mail) (e? mail) Bounce? back  rate Slide 7-112 Online Consumer Purchasing ModelFigure  7. 8 Slide 7-113 How Well Does Online Adv. Work? Ultimately  measured  by  ROI  on  ad  campaign Highest  click? through  rates:  Searc h  engine  ads,   Permission  e mail  campaigns Permission e? mail campaigns Rich  media,  video  interaction  rates  high Online  channels  compare  favorably  with  traditional Most  powerful  marketing  campaigns  use  multiple   Most powerful marketing campaigns use multiple channels,  including  online,  catalog,  TV,  radio,   newspapers,  stores newspapers, stores Slide 7-114 Comparative Returns on Investment Figure  7. 9 Slide 7-115 Costs of Online Advertising Pricing  modelsBarter Cost  per  thousand  (CPM) Cost  per  click  (CPC)   Cost  per  action  (CPA)   Cost per action (CPA) Online  revenues  only Sales  can  be  directly  correlated Sales can be directly correlated Both  Ã‚  online/offline  revenues Offline  purchases  cannot  always  be  directly  related  to  online   Offli h t l b di tl l t dt li campaign In  general,  online  marketing  more   expensive  on  CPM   In general online marketing more expensive on CPM basis,  but  more  effective Slide 7-116 Web Site Activity Analysis b i i i l i Figure  7. 10 Slide 7-117 Insight on Technology It’s 10 P. M. Do You Know Who Is On Your Web Site? Class Discussion Slide 7-118Web Site †¦ as Marketing Communications Tool g Web  site  as  extended  online  advertisement W b i d d li d i Domain  name:  An  important  role   Domain name: An important role Search  engine  optimization:   Search engine optimization: Search  engines  registration Keywords  in  Web  site  description K d i W b it d i ti Metatag  and  page  title  keywords Links  to  other  sites k h Slide 7-119 Web Site Functionality b i i li Main  factors  in  effectiveness  of  interface Utility Ease  of  use Top  factors  in  credibility  of  Web  sites: Top factors in credibility of Web sites: Design  look Info rmation  design/structure g / Information  focusOrganization  is  important  for  first time  users,  but   Organization is important for first? time users but declines  in  importance Information content becomes major factor attracting Information  content  becomes  major  factor  attracting   further  visits Slide 7-120 Factors in Credibility of Web Sites Figure  7. 11 Slide 7-121 Table  7. 9 Slide 7-122 Chapter 8: Ethical, Social, and Political Issues in E-commerce E commerce Chapter 8 Ethics, Law, E-commerce Copyright  © 2010 Pearson Education, Ltd. 2011 Pearson Education, Inc. Slide 8-123 Ethical, Social, Political Issues in E-commerceInternet,  like  other  technologies,  can: Internet like other technologies can: Enable  new  crimes Affect  environment Threaten  social  values Costs  and  benefits  must  be  carefully   considered,  especially  when  there  are  no   id d i ll h h g g clear? c ut  legal  or  cultural  guidelines Slide 8-124 Model for Organizing Issues Issues  raised  by  Internet  and  e? commerce  can  be  viewed  at  individual,   social,  and  political  levels social and political levels Four  major  categories  of  issues: Four major categories of issues: Information  rights Property  rights Property rights Governance Public  safety  and  welfare Slide 8-125Moral Dimensions of Internet Society M l Di i f I S i Figure  8. 1 Slide 8-126 Basic Ethical Concepts i hi l Ethics Study  of  principles  used  to  determine  right  and  wrong  courses  of   action Responsibility p y Accountability Liability Laws  permitting  individuals  to  recover  damages Due  process Laws  are  known,  understood Laws are known understood Ability  to  appeal  to  higher  authorities  to  ensure  laws  applied  correctly Slide 8-127 Analyzing Ethical Dilemmas l i hi l il Process  for  analyzing  ethical  dilemmas: 1. 2. 3. 3 4. 5. Identify  and  clearly  describe  the  facts Define  the  conflict  or  dilemma  and  identify  the   y higher? rder  values  involved Identify  the  stakeholders Identify the stakeholders Identify  the  options  that  you  can  reasonably   take t k Identify  the  potential  consequences  of  your   options Slide 8-128 Candidate Ethical Principles Golden  Rule Universalism Slippery  Slope Collective  Utilitarian  Principle Risk  Aversion Ri k A i No  Free  Lunch The  New  York  Times  Test The  Social  Contract  Rule Slide 8-129 Privacy & Information Rights Privacy: Moral  right  of  individuals  to  be  left  alone,  free   from  surveillance  or  interference  from  other   individuals  or  organizations Information  privacy p y Subset  of  privacy Includes:The  claim  th at  certain  information  should  not  be   collected  at  all The  claim  of  individuals  to  control  the  use  of  whatever   h l i f i di id l l h f h information  is  collected  about  them Slide 8-130 Privacy & Information Rights (cont. ) Major  ethical  issue  related  to  e? commerce   and  privacy:   d i Under  what  conditions  should  we  invade  the   privacy  of  others? Major  social  issue:   j Development  of  Ã¢â‚¬Å"expectations  of  privacy†Ã‚  and   privacy  norms privacy norms Major  political  issue: Development  of  statutes  that  govern  relations   D l t f t t t th t l ti between  recordkeepers  and  individuals Slide 8-131 Information Collected at E-commerce SitesData  collected  includes Personally  identifiable  information  (PII) Anonymous  information Anonymous information Types  of  data  collected yp Name,  a ddress,  phone,  e? mail,  social  security Bank  and  credit  accounts,  gender,  age,  occupation,   B k d di d i education Preference  data,  transaction  data,  clickstream  data,   browser  type Slide 8-132 Social Networks & Privacy Social  networks Encourage  sharing  personal  details Pose  unique  challenge  to  maintaining   privacy Facebook s  Beacon  program Facebook’s Beacon program Facebook s  Terms  of  Service  change Facebook’s Terms of Service change Slide 8-133 Profiling & Behavioral Targeting ProfilingCreation  of  digital  images  that  characterize  online  individual  and   group  behavior Anonymous  profiles A fil Personal  profiles Personal profiles Advertising  networks Track  consumer  and  browsing  behavior  on  Web T k db i b h i W b Dynamically  adjust  what  user  sees  on  screen Build  and  refresh  profiles  of  consumers Google’s AdWords program Slide 8-134 Profiling & Behavioral Targeting (cont’d) Deep  packet  inspection Business  perspective: Web  profiling  serves  consumers  and  businesses Increases  effectiveness  of  advertising,  subsidizing  free   content Enables  sensing  of  demand  for  new  products  and  services Critics  perspective:Undermines  expectation  of  anonymity  and  privacy Consumers  show  significant  opposition  to  unregulated   collection  of  personal  information Enables  weblining Slide 8-135 Internet & Government Invasions of Privacy Various  laws  strengthen  ability  of  law  enforcement   agencies  to  monitor  Internet  users  without   i i I ih knowledge  and  sometimes  without  judicial  oversight CALEA,  PATRIOT  Act,  Cyber  Security  Enhancement  Act,   Homeland  Security  Act Government  agencies  are  largest  users  of  private   sector  commercial  data  brokers sector commercial data brokers Retention  by  ISPs  of  user  data  a  concern Slide 8-136Legal Protections In  U. S. ,  privacy  rights  explicitly  granted  or   derived  from Constitution   Constitution First  Amendment  Ã‚  Ã¢â‚¬â€œ freedom  of  speech  and  association Fourth  Amendment  Ã‚  Ã¢â‚¬â€œ unreasonable  search  and  seizure F th A d t bl h d i Fourteenth  Amendment  Ã‚  Ã¢â‚¬â€œ due  process Specific  statutes  and  regulations  (federal  and   Specific statutes and regulations (federal and state) Common  law Slide 8-137 Informed Consent U. S. firms  can  gather  and  redistribute   transaction  information  without  individual’s   i i f i ih i di id l’ informed  consent Illegal  in  Europe Informed  consent: Opt? in   Opt out Opt? out Many  U. S. ? commerce  firm s  merely  publish  information   p practices  as  part  of  privacy  policy  without  providing  for   p p yp y p g any  form  of  informed  consent Slide 8-138 FTC’s Fair Information Practices Principles Federal  Trade  Commission: Federal Trade Commission: Conducts  research  and  recommends  legislation  to  Congress Fair  Information  Practice  Principles  (1998): Fair Information Practice Principles (1998): Notice/Awareness  (Core) Choice/Consent  (Core) Choice/Consent (Core) Access/Participation Security Enforcement Guidelines,  not  laws Guidelines not laws Slide 8-139 FTC’s Fair Information Practice PrinciplesNotice/Awareness i / Sites  must  disclose  information  practices  before  collecting  data. Includes Sit t di l i f ti ti b f ll ti d t I l d identification  of  collector,  uses  of  data,  other  recipients  of  data,  nature  of   collection  (ac tive/inactive),  voluntary  or  required,  consequences  of  refusal,  and   steps  taken  to  protect  confidentiality,  integrity,  and  quality  of  the  data Choice/Consent There  must  be  a  choice  regime  in  place  allowing  consumers  to  choose  how   their  information  will  be  used  for  secondary  purposes  other  than  supporting   the  transaction,  including  internal  use  and  transfer  to  third  parties.Opt? in/Opt? out  must  be  available. Consumers  should  be  able  to  review  and  contest  the  accuracy  and   completeness  of  data  collected  about  them  in  a  timely,  inexpensive  process. Access/Participation ccess/ a c pa o Security y Enforcement Data  collectors  must  take  reasonable  steps  to  assure  that  consumer   information  is  accurate  and  secure  from   unauthorized  use. There  must  be  in  place  a  mechanism  to  enforce  FIP principles. This  can  involve  self? regulation,  legislation  giving  consumers  legal   remedies  for  violations,  or  federal  statutes  and  regulation. di f i l ti f d l t t t d l ti Slide 8-140FTC Recommendations: Online Profiling Principle p Notice Recommendation Complete  transparency  to  user  by  providing  disclosure  and  choice  options   on  the  host  Web  site. â€Å"Robust†Ã‚  notice  for  PII  (time/place  of  collection;   before  collection  begins). Clear  and  conspicuous  notice  for  non PII. before  collection  begins). Clear  and  conspicuous  notice  for  non? PII. Opt? in  for  PII,  opt? out  for  non? PII. No  conversion  of  non? PII  to  PII  without   consent. Opt? out  from  any  or  all  network  advertisers  from  a  single  page   consent Opt out from any or all network advertisers from a single page provided  by  the  host  Web  site.Reasonable  provisions  to  allow  inspection  and  correction. Reasonable  efforts  to  secure  information  from  loss,  misuse,  or  improper   access. Done  by  independent  third  parties,  such  as  seal  programs  and  accounting   Done by independent third parties such as seal programs and accounting firms. medical  topics,  sexual  behavior  or  sexual  orientation,  or  use  Social  Security   medical topics sexual behavior or sexual orientation or use Social Security numbers  for  profiling. Slide 8-141 Choice Access Security EnforcementRestricted  Collection Advertising  networks  will  not  collect  information  about  sensitive  financial  or European Data Protection Directive Privacy  protection  much  stronger  inà ‚  Europe  than  U. S. European  approach:   Comprehensive  and  regulatory  in  nature p g y European  Commission’s  Directive  on  Data  Protection   (1998):   (1998): Standardizes  and  broadens  privacy  protection  in  European  Union   countries Department  of  Commerce  safe  harbor  program: For  U. S. firms  that  wish  to  comply  with  Directive Slide 8-142 Private Industry Self-RegulationSafe  harbor  programs: Private  policy  mechanism  to  meet  objectives  of   Pi t li h i t t bj ti f government  regulations  without  government  involvement e. g. Privacy  seal  programs e g Privacy seal programs Industry  associations  include: Online  Privacy  Alliance  (OPA) Network  Advertising  Initiative  (NAI) CLEAR  Ad  Notice  Technical  Specifications Privacy  advocacy  groups Emerging  privacy  protection  business Slide 8-143 Insight on Business Chief Privacy Officers hi f i ffi Class Discussion Slide 8-144 Technological Solutions Spyware,  pop? p  blockers Cookie  managers k Anonymous  remailers,  surfing Anonymous remailers surfing Platform  for  Privacy  Preferences  (P3P):   Comprehensive  technological  privacy  protection  standard Works  through  user s  Web  browser Works through user’s Web browser Communicates  a  Web  site’s  privacy  policy Compares  site  policy  to  user’s  preferences  or  to  other  standards   such  as  FTC’s  FIP  guidelines  or  EU’s  Data  Protection  Directive Slide 8-145 How P3P Works k Figure  8. 2(A) Slide 8-146 Insight on Technology The Privacy T Th P i Tug of War: fW Advertisers Vs. Consumers Class Discussion Slide 8-147 Intellectual Property Rights Intellectual  property:Encompasses  all  tangible  and  intangible  products  of  human   mind Major  ethical  issue: j How  should  we  treat  property  that  belongs  to  others? Major  social  issue: Major social issue: Is  there  continued  value  in  protecting  intellectual  property  in  the   Internet  age? Major  political  issue: How  can  Internet  and  e? commerce  be  regulated  or  governed  to   g g protect  intellectual  property? Slide 8-148 Intellectual Property Protection Three  main  types  of  protection: Copyright Patent Trademark  law Trademark law Goal  of  intellectual  property  law: Balance  two  competing  interests  Ã¢â‚¬â€ public  and   B l t ti i t t bli d privateMaintaining  this  balance  of  interests  is  always   M i t i i thi b l fi t t i l challenged  by  the  invention  of  new   technologies Slide 8-149 Copyright Protects  original  forms  of  expression  (but  not   ideas)  from   being  copied  by  others  for  a  Ã‚   ideas) from being copied by others for a period  of  time Look  and  feel  copyright  infringement  lawsuits Fair  use  doctrine Fair use doctrine Digital  Millennium  Copyright  Act,  1998 First  major  effort  to  adjust  copyright  laws  to  Internet  age Implements  WIPO  treaty  that  makes  it  illegal  to  make,   distribute,  or  use  devices  that  circumvent  technology? ased  protections  of  copyrighted  materials Slide 8-150 Patents Grant  owner  20? year  monopoly  on  ideas  behind  an   invention Machines Man? made  products p Compositions  of  matter Processing  methods Invention  must  be  new,  non? obvious,  novel Encourages  inventors g Promotes  dissemination  of  new  techniques  through   licensing Stifles  competition  by  raising  barriers  to  entry Slide 8-151 E-co mmerce Patents 1998  State  Street  Bank  &  Trust  v. Signature  Financial   Group Business  method  patents Led  to  explosion  in  application  for  e? commerce  Ã¢â‚¬Å"business   L dt l i i li ti f â€Å"b i methods†Ã‚  patentsMost  European  patent  laws  do  not  recognize   M tE t tl d t i business  methods  unless  based  on  technology Examples Amazon’s  One? click  purchasing DoubleClick’s  dynamic  delivery  of  online  advertising Slide 8-152 Trademarks d k Identify,  distinguish  goods  and  indicate  their   source Purpose p Ensure  Ã‚  consumer  gets  what  is  paid  for/expected  to  receive Protect  owner  against  piracy  and  misappropriation Infringement Market  confusion Bad  faith Dilution Behavior  that  weakens  connection  between  trademark   and  product Slide 8-153 Trademarks & Internet CybersquattingAnticy bersquatting  Consumer  Protection  Act  (ACPA) Cyberpiracy Typosquatting Metatagging M i Keywording y g Deep  linking Framing Slide 8-154 Governance Primary  questions Who  will  control  Internet  and  e? commerce? What  elements  will  be  controlled  and  how? What elements will be controlled and how? Stages  of  governance  and  e? commerce g g Government  Control  Period  (1970–1994) Privatization  (1995–1998) Privatization (1995 1998) Self? Regulation  (1995–present) Government  Regulation  (1998–present) Slide 8-155 Who Governs E-commerce & Internet? Mixed  mode  environmentSelf? regulation,  through  variety  of  Internet  policy   and  technical  bodies,  co exists  with  limited   and technical bodies co? exists with limited government  regulation ICANN  :  Domain  Name  System Internet  could  be  easily  controlled,   I t t ld b il t ll d m onitored,  and  regulated  from  a  central   location Slide 8-156 Taxation E? commerce  taxation  illustrates  complexity  of   governance  and  jurisdiction  issues governance and jurisdiction issues U. S. sales  taxed  by  states  and  local  government MOTO  retailing E? commerce  benefits  from  tax  Ã¢â‚¬Å"subsidy† yOctober  2007:  Congress  extends  tax  moratorium  for   an  additional  seven  years an additional seven years Unlikely  that  comprehensive,  integrated  rational   approach  to  taxation  issue  will  be  determined  for   approach to taxation issue will be determined for some  time  to  come Slide 8-157 Net Neutrality Currently,  all  Internet  traffic  treated  equally  Ã¢â‚¬â€œ all  activities  charged  the  same  rate,  no   ll i i i h d h preferential  assignment  of  bandwidth Backbone  providers  would  like  to  charge   differentiated  prices  and  ration  bandwidth 2010,  U. S. ppeals  court  ruled  that  FCC  had  no   authority  to  regulate  Internet  providers Slide 8-158 Public Safety & Welfare Protection  of  children  and  strong   g sentiments  against  pornography Passing  legislation  that  will  survive  court   P i l i l ti th t ill i t challenges  has  proved  difficult Efforts  to  control  gambling  and  restrict   sales  of  drugs  and  cigarettes sales of drugs and cigarettes Currently  mostly  regulated  by  state  law Unlawful  Internet  Gambling  Enforcement  Act Slide 8-159 Insight on Society Internet Drug Bazaar Class Discussion Slide 8-160