12/08/15

Business School
Information Systems, Technology and Management

INFS1602
INFORMATION SYSTEMS IN BUSINESS
Week 3
Enabling Commerce using the Internet

The Peter Farrell Cup 2015 - Student Entrepreneurship

Competition
Do you have a great business idea that
you would like to bring to life?
Organised by the Centre for Innovation and Entrepreneurship (CIE) at the Business
School, this is a unique opportunity for you to develop real-life entrepreneurial skills youll
need to bring an innovation to market.
First prize: $15,000
Second prize: $7,500
Third prize: $5,000
Plus prizes for best technology, greatest social impact and peoples choice awards.
Register now to find out more at the info evening on 19th August 2015 (5-7 pm):
www.business.unsw.edu.au/pfcup

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Housekeeping
q I have to travel to Copenhagen Business School for an important
research trip
q Lectures in Week 04, Week 05, and Week 06 will be covered by
Ms. Christine Van Toorn and Ms. Chona Ryan
q I will be back for lectures in Week 07
q My consultation sessions (Wednesdays 1430hrs - 1530hrs) will
still be covered by Chona for these weeks in addition to her own
sessions (Mondays 1100hrs -1300hrs)
q Please make use of these sessions to clarify any questions you
have about the Assignment

Week 4 Workshop
q READ and BRING WRITTEN SUMMARIES of the following:
1. Whos Going Mobile: Mobile Payments (pp. 93 of the textbook) +
Conduct some additional research on current state of Mobile
Payment. (some examples include www.paym.co.uk,
www.zapp.co.uk, www.bitpesa.co, www.coinjar.com,
www.dropletpay.com)
2. Amazon vs. Walmart: Which Giant will Dominate e-Commerce (pp.
111-112 of textbook)
q Bring your laptop/writing material to workshop
q Be prepared to analyze and work on discussion questions that will be
posted during Workshops

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Quiz 01 Week 4

Quiz 01, 10 MCQs with 4 choices each Covers Chapter 1,

Chapter 2 and Chapter 3.

Quiz 01 will open on Moodle on Monday 17 August 2015 at

0900hrs and close on Friday, 21 August 2015 at 1700hrs

No supplementary quiz allowed after the quiz closes

3 attempts allowed for Quiz 01: Only the highest score will be
recorded and revealed when the quiz closes on Friday.

Questions are randomized for each attempt

Note: We license the quiz questions, and our license does not
allow us to share the answers to the quizzes with students

Recap from Last Week

q Information Systems, Organizations, and Strategy
Concepts of Strategy, Core Competency and Competitive
Advantage
Organizations internal activities and environmental turbulence
Technological solutions to improve internal efficiencies and
buffer against turbulence from the environment
Servitization
Platform and Ecosystem

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Technology and the Importance of

Servitization
What is sevice?
What is servitization and why is it
important to a business?
What is the role of Information
Technology in advancing servitization?

What is Service?

FIVE characteristics
Intangibility Services cannot be touched, gripped
or handled
Inventory Services are produced and consumed
during the same period of time; they cannot be stored
for future usage
Inseparability Services cannot be separated from
their providers because the latter is responsible for
rendering the service
Inconsistency Each service is unique because it is
generated, rendered and consumed at a specific
instance in time and cannot be replicated
Involvement Participation of customers is pivotal to
service delivery because services are produced in
accordance with consumer needs

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What is Servitization and Why is it Important?

The addition of layers of service

components to the organizations
traditional product offerings

Reasons for servitization:

Create additional revenue streams
(margin is higher)
Differentiation strategy

What is the Role of Information Technology

(IT) in Advancing Servitization?
Service is most affected by points of
contact and interaction with the
service provider
IT drastically affects:
Number of contact points
between customers and service
provider
Ways by which customers can
interact with service provider
(see next slide)

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IT Happens

Versus

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Ecosystem versus Platform (Textbook does not

differentiate them well)

Ecosystem Elements surrounding

a product or service that reinforce
its value.

Platform (Thinking or Strategy)

Creation of channel whereby value
from different elements in the
Ecosystem could be consolidated
and delivered to the consumers e.g.
hardware platform, software platform
etc.

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Ecosystem versus Platform (Textbook does not

differentiate them well)

Elements within the ecosystem

support one another

Ecosystem is resilient to
changes in the environment

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Agenda for this Lecture

q Enabling Commerce using the Internet
Business Model Canvas
Key components of a Business Model Value Proposition and
Revenue Model/Streams
Technology as driver of new Value Propositions and Revenue
Streams
Last weeks focus was on technologys impact on organizational
internal operations and buffer against external turbulence
For this week, there is an external focus: Essentially we are
looking at how technology drives new business models

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Osterwalders Business Model Canvas

A business model describes the rationale of how an
organization creates, delivers, and captures value.
It is the logic that connects strategy and operations

http://www.businessmodelgeneration.com/canvas
http://blogs.hbr.org/2013/05/a-better-way-to-think-about-yo/

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Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers by
Alexander Osterwalder and Yves Pigneur

Osterwalders Business Model Canvas

Application: Spotify

Securing Deals
with Labels

Easy Access to
Rare Music

Advertisements

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Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers by
Alexander Osterwalder and Yves Pigneur

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Osterwalders Business Model Canvas - Pillars

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Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers by
Alexander Osterwalder and Yves Pigneur

Technology and Business Model

Using technology to pursue strategies and develop
business models that could not be pursued in a
traditional environment
Power of technology shines in two important aspects of
the business model
Innovating on value proposition
Innovating on revenue model/stream

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Most Obvious Strength of Technology in E-Commerce

The long tail refers to the tail of a
typical sales curve

http://www.theguardian.com/technology/2015/mar/11/
ministry-of-sound-streaming-switch-off-free

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ebay A Celebration of Hoarding

Value Proposition
Traditional auction format brought online
Connection of millions of buyers and sellers
Tracking of reputation of buyers and sellers
Revenue Model
Commission from each successful auction
Charges for extra auction services
Charges from customization of auction services

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How to Get Through College with Google

Value Proposition
Traditional search for information
Revenue Model
Payment for advertisements
Payment for association with popular key words
Business intelligence to internet businesses

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Questions
Can you think of new value propositions made possible
by technology?
Can you think of new revenue models made possible by
technology?

Wanelo

Smurf Village

https://wanelo.com

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Questions
Can you think of new value propositions made possible
by technology?
Can you think of new revenue models made possible by
technology?

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http://www.sitescout.com/rtb/?ref=adw_search_real%20time
%20bidding&gclid=CPrIkYzaisACFVUHvAodi6gAtg

M-Commerce
Main distinguishing features of Mobile Technology
Portability and mobility i.e. invasion of space,
situations and time where traditional E-Business could
not reach
Additional contextual tagging of location based
information
More accurate identification of Mobile Technology user
e.g. phone number, finger print, social network, user
habit etc.

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Why the Invasion?

Formulation of
Intention

Action

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Why the Invasion?

When is the best time to prompt the formulation of
intention?
Where is the best place to prompt the formulation of
intention?
What is the best situation to prompt the formulation of
intention?

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Points to Ponder
Think about what are the tells organizations can gain from
todays mobile devices?

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Why the Invasion?

How do I remove the obstacles during the translation from
the formulated intention into actual action?
Shorten the distance the consumer has to travel to
translate formulated intention into actual action
Shorten the duration between the formulation of
intention and actual action
Simplify the means through which the formulated
intention could be translated into actual action

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Points to Ponder
What are the current obstacles being targeted by mobile
devices?

http://www.insideretail.com.au/blog/2014/08/27/
topshop-uber-partner-to-drive-sales/

http://www.smh.com.au/technology/sci-tech/pushfor-liftoff-on-drone-deliveries-inaustralia-20131014-2vixx.html

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Business School
Information Systems, Technology and Management

Thank You
and
Have a Good Week!

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