Mike Shaw

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University of Illinois at Urbana Champaign
(UIUC)Center For Information Systems and
Technology ManagementMichael J. Shaw, Director

• Research and Learning Center
• UIUC Critical Research Initiatives (CRI)
  Sponsorship
• Electronic Commerce Forum
• Integration of Technology and Business Strategy
• Multi-disciplinary Research
• College of Commerce and Business Administration,
  National Center for Super Computing Applications
  (NCSA), Beckman Institute for Advanced Science
  and Technology, College of Engineering, and
  Department of Psychology
• Academic Research and Industrial Partnerships
• Integration of Educational Objectives, Rigorous
  Research, and Business Practices

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Center For Information Systems and Technology
ManagementIndustrial Partnerships

• Identify Research Problems of Common Interests
• Match Research Expertise with Research Needs
• Types of Partnerships
• Partner Program
• Specific Sponsored Projects
• Benefits
• WIN-WIN Solutions

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Web Based Strategies To Fulfill Consumer Needs
New Consumer Processes
Quick Response
Mass Customization
Intelligent Virtual Stores
Product Promotion
Web Advertising Virtual Communities
Interactive catalogs Virtual store-front
Virtual Reality
Global Supply Chain Integration Sense and
Respond
Digital Interactivity Multimedia Databases
Customer Profiling
Interactive Marketing Consumer Interface
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Consumer Purchase Needs
Knowledge
Interaction
Ubiquity
Networking
Aggregation
Customization
Experience
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Consumer Purchase Needs

• Knowledge - Having access to specialized
  information and feedback about the product or
  service
• Interaction - Fulfilling the need to communicate
  with the provider of product or service
• Networking - Connecting to and interacting with
  other consumers who have similar needs or
  experiences
• Sensory experiences - Using sensory input such as
  sight and sound to arrive at a purchase decision
• Ubiquity - Having all that the consumer needs at
  the time and place of consumers convenience,
  rather that at the providers convenience
• Aggregation - Bringing together a number of
  related and required services at a single point
  of contact
• Customization / Personalization - Tailoring
  products to consumers needs rather than
  adjusting consumer needs to available product
  ranges

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The Web As The Consumer Interface

• Interactivity
• Realistic experience
• Global access
• Targetability
• Tracking of customers
• Flexibility
• Aggregation of services

The Web is most suited to fulfill all of the
needs of the consumer through a single channel
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Product Promotion - Web Advertising
Banners
Buttons
Advertorial
- Advertising designed to blend with the
editorial content of the page
Keyword Ads
Web Portals
- Starting web page from where user accesses
services like search, news, and email
Destination Site
- Web page becomes a central access point for
customer to provide information, education, news,
entertainment
Issues - Measurements - Strategy -
Effectiveness
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Product Promotion - Virtual Communities

• Characteristics
• Collective knowledge
• Targetable audience
• Influential opinion leader
• Increasing returns
• Marginal cost effect
• Learning curve effect
• Network externalities

Potential Revenues
Membership of community
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Product Promotion - Virtual Communities
Building and exploiting virtual communities
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Benefits of virtual communities
Product Promotion - Virtual Communities

• To consumers
• Identify and interact with consumers of
  similar interests without constraints of time and
  space
• Aggregated experience of the product usage
• Better informed purchase decisions
• Reduced search costs for product information
• Special price, customized offers and better
  service

To sponsor organization Reduced search
costs Effective targeting of products and
services Influence the purchase decisions of new
members Loyalty can be exploited to offer range
of products and services to consumers Global
reach at much lower costs
To participating vendors Target audience with
known demographics and interests Effective
response for promotion messages Reduced search
costs of target customers Global reach at much
lower costs
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Virtual Store-Front Services
Product display services Electronic catalog
services Customization features On-line
search engine On-line order processing
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Interactive Web Catalog Features

• Product search - by use, category, price, related
  products
• Product visualization - using virtual reality
• Product customization
• On-line order placement - links to related
  services like credit agencies, bank, product
  stock status, packaging and delivery services
• Virtual conference - with sales representatives
  and other consumers

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The Four Realms Of An Experience
Absorption
Educational
Entertainment
Passive Participation
Active Participation
Esthetic
Escapist
Immersion
B. Joseph Pine II and James H. Gilmore, Harvard
Business Review, July-August, 1998
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Virtual Stores - A Vision
Customer Recommends Changes to Selections
Interactive Iterative Process
No
Customers provide potential interests
Is Selected Set Satisfactory?
Sample of likely matches presented
Yes
Product Catalog
Image Database
Customer Preferences
Customer Virtually tries matches Selections
Customer decides on a Selection
Customer Database
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Mass Customization

• Mass market goods and services uniquely tailored
  to the needs of the individuals who buy them.
• Highlights
• Driven by customer needs
• Implemented through the Web
• Uses latest technology
• Databases - customer and product
• Computer controlled design, production and
  packaging
• Supply chain management
• Helps build a strong relationship with customer
• Benefits
• Cuts inventory
• Makes very small niche markets viable
• Retailers become regional distribution centers,
  cutting costs

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Mass Customization - Example Garments

• Tools
• 3-D scanning tools
• Visualization tools
• Cloth draping algorithm
• Virtual reality tools
• Image databases
• Artificial intelligence interface
• Internet
• for integrated design, marketing and retailing

Steps Customers 3-D image scanned Customer
interactively selects color, model, and print
design Order transmitted through web to
factory Garment stitched and delivered Bar-code
used to store customer choices
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Mass Customization - Benefits

• Customers 3-D image can be saved and used in
  future
• Customer can select fabric type, color, texture,
  pattern and print
• Customer can fit and visualize selected garment
• Customer can design garment or use available
  designs for the fit
• Customers feedback used in general garment design

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Mass Customization - Interactive Digitization

• Image Storage and Retrieval
• Image Synthesis
• Interactive Feature Specification
• Integration with Supply Chain

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Mass Customized Products - Examples
Eye glasses LensCrafters
Furniture
Personal computers Dell Computers
Garments Levis Strauss
Appliances
Vitamin pills Acumin
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Integrated Supply Chain Network
Payment Account Management
Product Engineering
Logistics Support
Market Intelligence Analysis
Internet
SCN
Web Store Front
Customer Delivery
Order Entry
Enterprise Resource Planning
Customer Service Sales
Consumer Knowledge Base