Terry's MBA 734 Blog

Prediction Markets

2009-04-23T14:03:00.000-07:00

Is it a good idea to encourage ALL employees to trade in these markets? Should insiders and/or highly uninformed people be allowed to trade? Do they help or hurt the market?

I think that the aggregate of information leads to anonymity in the same way as statistical information. So the more users that participate in the prediction markets the less likely you are to notice that someone from a Google division with inside knowledge is trading on a sure thing. Additionally for an insider to make lots of goobles they have to bet against the market on a sure thing but it would be hard not to have information slip out about projections and thus they would end up betting the same way as most other traders. I think overall they can hurt the market by spreading misinformation while betting correctly but they may give guidance to ambiguous markets.

Social Networks

2009-04-08T17:51:00.000-07:00

Online social networks have become ubiquitous in the past few years. What forms of value do users get from these services and who is most likely to sign up on LinkedIn versus other sites?

With social networks users have several forms of value to offer and LinkedIn is interesting because it provides an upfront focus: "Over 35 million professionals use LinkedIn to exchange information, ideas and opportunities."
You can see that a sense of professionalism is expected and that there are stated things that you would exchange with someone while using the system. From that site mission statement you could expect to meet other professionals and possibly find job opportunities.
The site Facebook offers the contrast of broad or even lack of focus in its mission statement: "Facebook helps you connect and share with the people in your life."
This seems like it would let you expand personal life online in whatever shape or form that takes. You don't have to be professional, collegiate, or fit into some other category. There is little guidance as to what to do other than to connect and share.

I think the sites are different enough to have users duplicate their online profile on either site but the potential LinkedIn user would most likely have 1)desire to connect professionally 2)desire for employment/hiring/networking, or 3)have some idea that needs funding.

Youtube Creations

2009-03-28T08:05:00.000-07:00

Source: www.npr.org
All Things Considered, March 16, 2009 - The latest viral video doesn't just come from YouTube — it's a remix of it. Amateur musicians with video cameras and homemade gadgets are all the playthings ...
Full Story From NPR

Check out on of his compilations below...

See more Kutiman's youtube channel Kutiman

Blogging

2009-03-23T18:55:00.000-07:00

What are the advantages and disadvantages of implementing internal versus external employee blogs in a corporate setting? Are there certain industries where one of these strategies makes more sense?

Internal Blogs
Internal blogs allow for more control of the content published and a reduction of risk. A company's internal site lends itself to an expectation of moderation. If iwere to blog for my employer I would at the least moderate my post in terms of negative sentiments but not as much in terms of specialized practices as those could probably help other coworkers. Additionally, the smaller audience size and the preexisting organizational knowledge of those able to view the blog makes it easier to ensure that everyone has received corrected or updated information. Some of the negatives for internal blogs are related to the same issues. Bloggers may have the wrong motivations or expectations for blogging. A blogger could only try to present views that they think the corporation would want to hear. Or a blogger might want to keep specialized knowledge and only give small pieces of information to ensure that they remain the expert on a subject. Another negative with internal blogs is that they don't draw on the customer information that can be a great contribution from external blogging.

External Blogging
Benefits from external blogging start at drawing the customer information but goes further in drawing customers into a greater connection with the company and any product modifications that can come from a blogging effort in which they had high involvement. Allowing an external blog poses additional risks from potentially allowing proprietary information to leak out.

Industries
I don't really think of industry types as I would think about the company type would be more important than industry type. I think internal blogging should be used at most companies where knowledge sharing can improve performance [most companies can benefit from this]. For external blogging I think you have to evaluate the customer to understand how they will view a set of sites. Could you get valuable contributions from customers that could improve products or services? Would you be able to maintain your status and perception of professionalism? Would a potential breach of information be manageable? If you can answer those questions positively then I would pursue external blogging.

Case 5/6: Google and DoCoMo

2009-02-25T20:47:00.000-08:00

1. Is DoCoMo wise to offer its existing mobile phone rivals access to FeliCa?
2. Is search a winner-take-all business?

I think DoCoMo made a good move in allowing rivals to use FeliCa technology for three reasons. 1) Increased Adoption: When a company limits access to a new technology it isn't accessible by a the larger potential userbase. There may be users that desire to use the FeliCa applications but have extenuating circumstances that prevent them from changing providers. Additionally there would be less visibility (brand recognition) since fewer merchants will want to provide access to a smaller userbase and potential users will use and suggest applications to friends. 2) Additional Revenue Stream: DoCoMo's profit from FeliCa Networks increases the attractiveness of a larger userbase for the new technology as they profit from the fees from other providers. 3) Built-in Timed Exclusivity: DoCoMo has the ability to see which applications are coming up, and can work to implement the better ones prior to any other potential provider.

I don't think that search is a winner take all business as end users can easily switch from one search engine to another. Advertisers know that many users are drawn to portal sites such as Yahoo for their integrated mail and news services. These sites will still be useful for advertising.

Test

2009-02-23T06:56:00.001-08:00

Testing the new template

Case 4: Electronic Arts

2009-02-19T04:30:00.000-08:00

Since the writing of the Electronic Arts Case the Sony Playstation 3 and the Nintendo Wii have been released and both have online gaming capabilities. What’s your assessment of the current online gaming market?

The online gaming market I think is dominated by the XBox 360 (for consoles). They had the early mover advantage due to the PS3 getting their blu-ray technology in order and the Wii focusing on bringing in casual gamers. The XBox 360 has been successful in moving ahead of Sony in part due to the early focus on online gaming. The tie in rate for software also shows a clear advantage for Microsoft as they have ensured that each gamer gets a consistent experience in terms of online gaming. For this generation Sony will seem to be the copy cat in trying to match the standard set by Microsoft in the online gaming arena.

Case 3: Netflix

2009-02-11T17:46:00.000-08:00

At the time of this case Netflix, founded in 1997, provided DVD rentals ordered online and delivered to customers through the mail in return for a monthly subscription fee. Netflix had worked to reduce cost of key components of this business strategy by negotiating DVD costs, identifying and selecting the content, optimizing delivery, and identifying the right pricing for the subscription. A major competitor emerged in Blockbuster video launching an online service. To combat the competition's local touch and similar service, Netflix has entered the video on demand (VOD) market. We have been asked how Netflix has attempted to update their business model with VOD?

From looking at the Netflix site, all plans include the VOD option to download to PC or watch on a TV via a capable set top device. Set top devices included popular machines such as the XBox 360 and 2 bluray Hi-definition movie players. This added conveniece of instant downloads was not provided by Blockbuster and had the additonal value to Netflix as it increased lock-in of customers who bought set top devices. Reducing turnover was probably the major factor in the company's decision as customer acquisition has been a significant cost as over the life of Netflix marketing has taken up 72% of operating expenses (through 2006).

Case 2: P2P Networks

2009-02-03T19:03:00.000-08:00

From the original Napster to today’s bittorrent, peer to peer file sharing networks have worked to provide information content in many formats. (MP3-Audio, AVI- Video, exe/doc/other formats). Though the creators of such content may not have approved this type of file sharing, P2P networks have adapted and managed to circumvent most legal efforts to stop such activity. The question we have been posed as a class is who will win the competitive battle between P2P file sharing networks and iTunes over the long run and why?
I believe that P2P sharing will coexist with paid download systems but if I had to choose one to outlast the other I would choose P2P networks. It is my thought that just as the completely secure computer is one that is never turned on, the only way to ensure that an artist’s CD won’t be converted into an MP3 and pirated across the web is never allow anyone access it. Protection schemes can and have been broken or at least circumvented with enough time and resources. Legal action is slow and has done little to prevent the increase of P2P networks. The record and motion picture industries will continue to face complicated decisions as to how they can reduce the incentive for digital piracy. One option that seems viable is the HULU.com which provides popular TV shows via streaming online for free; using an advertisement supported revenue model.

Case 1: EZBoard

2009-01-29T08:13:00.000-08:00

Summary:
At the time of this case (Early 2005) EZBoard is the leading hosted message/discussion board site in the United States. They had little competition among other hosted boards, such as ProBoards and Yahoo! Groups, but script products vBulletin and phpBB allowed bulletin board software to managed by customers on their site. This allowed for newer technology, updates, and a greater degree of customization for message board administrators who were willing and able to take the time out for configuration and management. EZBoard’s newly hired CEO Robert Labatt was tasked with bringing the company to a new level of profitability where margins were already thin. Labatt took actions to cut cost through personnel and contract changes and then he was able to generate additional advertising revenue. The next step for Labatt was to manage the transition of the new version of the EZBoard hosted board software and to figure out the right revenue model going forward.

Analysis and Recommendations:
- EZBoard’s competitive advantage over scripted bulletin board software companies is that they 1) offer convenience of a hosted board, 2) have an installed user base that can access boards across the EZBoard platform. A recent survey showed that 60% of users visted more than one board per week.
- The EZBoard revenue comes from board administrators and from a percentage of users who decide to sign up for an enhanced account or donate to their discussion board’s community chest.
- The current setup allows for registered and unregistered users to post messages

Changes to User Management
To increase advertising revenues and increase the strength of EZBoard’s second competitive advantage, I suggest that the site require all users who post messages to register with the service and provide basic information. This would give advertisers more useful information on who is looking at their ads and how they can target ads to the audience on the board. The paid user accounts should have some additional benefits and incentives such as allowing them to view and vote on board posts prior to non-paying registered users. Additional profile and customization options should be added to paying users first and then in lesser measures to non-paying users. User survey results showed a high correlation between quality of posts and enjoyment/participation. I think adding a way for users to track/highlight their favorite posters or never see posts from posters who they do not enjoy would allow for customized experience for each user.

Board Subscription
For the convenience of a hosted solution the customer should expect to pay a fee. As the hosting provider should be giving more assurance of service uptime outside of stated upgrade/maintenance timeframes. This will give the customer an more security in that they have a worry free solution and that all the site management is handled by EZBoard. Any pricing changes should communicated to users upfront and be made 3 months after the new version is implemented. This would allow customers and their users to get used to the software prior to seeing financial changes and reduces the chances they will switch to a differing service.

January 22, 2009

2009-01-22T18:18:00.000-08:00

This blog is created to meet the requirements of MBA 734 Electronic Commerce and E-Business course at GMU.