Broadband content

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Broadband content

• Bo Lennstrand
• bl_at_fek.su.se
• www.fek.su.se/home/bl

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Content Services in a Broadband EnvironmentIn
Shepstone, Maureen (Ed.) Excellence in
International Research, ESOMAR, 2001

• Bo Lennstrand, School of Business, Stockholm
  University, Sweden
• Fredrik Öhrfelt, Eureka Marknadsfakta AB
• Lars Forsström, Carrier Networks, Telia AB

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The Local Metaphor
The Net Society - fully implemented
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eReality

• ... the difficulties experienced of even
  failures (of the dot.coms) could be traced to an
  ignorance of the relationship between the
  tangible and the non-tangible world.
• Few forms of e-commerce over digital networks
  can be totally independent of factors such as
  physical logistics and fulfillment costs, or even
  some form of physical prescense related to trust.

Roger Wallis (City University of London, now
guest professor in Media Technology, KTH),
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the Local Metaphor

• shows providers of regularly consumed products
  and services in the local environment,
• in a way that facilitates associations with their
  physical counterparts through
• the village metaphor - maps and pictures of
  well-known settings, and
• the mirror model - pictures mirroring the
  physical reality they represent

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Mirror model and the Internet

• Representing the physical world in a virtual
  context Three levels

Level
Internet representation today
Product or service
Representations mainly in text
Setting
An empty space or a compilation of texts
Environment
An empty space. Local, national or global. Who
knows?
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Mirror model in Virtual Society

• Representing the physical world

Level
Virtual Society
Product or service
Picture - text only when needed
Setting
Realistic or semirealistic picture
Environment
Map and semirealistic pictures
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Net Society
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the Net Society demonstrator

• hardware TV-screen and digital set-top-box
• access broadband LAN (local area network) fast
  access makes the use of true multimedia features
  possible (photo quality, picture telephony, film
  sequences)
• content only services located within the local
  environment are represented (however, the
  Internet can be reached through the interface)
• design image-based with realistic or
  semi-realistic pictures frames and scrolling
  bars are not used, text is used only where it is
  necessary, e.g., application forms, time-tables
  and product descriptip on data
• navigation village metaphor - maand
  semi-realistic pictures hypertext-based
  navigation principles are not used, all content
  can be reached with three clicks or less.

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the interface

• "wonderful", "I want it now", "this will make
  every-day life simpler", "it feels
  revolutionary", "it was good", "simple", "very
  simple", "fun this way", "they are on the right
  way, this feels right, the whole concept"
• "You have the whole shopping center in front of
  you, you know, you don't have to search", "you
  get rid of all these links and so", "this is just
  'go in - go out' ", "you get a feeling of that
  everything is here, since you recognize these
  things, you feel that 'I am here, shopping'
  though you are not", "it was good that you were
  met by a map, you recognize yourself".

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Content

• The most interesting applications seemed to be
  within the public service information category
• The reactions to the trade facilities in the NNS
  prototype differed between the respondents. Most
  of them can only imagine buying products that
  they have been in contact with before
• Most participants expressed that they not were
  willing to pay anything at all for access to the
  portal services.
• "Paying for this is like paying when entering a
  store."

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Implications of the local metaphor
Mirror model (realistic) sites
Village metaphor interface (map)
Recognition of position
- Limited content
Recognition of objects
Ease-of-use, intelligibility
Security/Trust
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Reports

• Lennstrand, Bo "Towards a Grounded Theory on
  Broadband Content". 16e Nordiska
  Företagsekonomiska Ämneskonferensen, Uppsala,
  16-18 augusti, 2001.
• Lennstrand, Bo "HYPE IT. IT som Vision och
  Verklighet - om Teknikspridning, Personalisering
  och Bredband". Doktorsavhandling Företagsek.
  inst, Stockholms universitet, 2001.
• Wikström, Solveig, Lennstrand, Bo Persson,
  Christian "eSolutions - Design Principles for
  Ease-of-Use". In Stanford-Smith, Brian Chiozza,
  Enrica (Eds.) E-work and E-commerce. Novel
  solutions and practices for a global networked
  economy. Volume 1. IOS Press, 2001.
• Lennstrand, Bo, Öhrfelt, Fredrik Forsström,
  Lars "Content Services in a Broadband
  environment". In Shepstone, Maureen (Ed.)
  Excellence in International Research, ESOMAR,
  2001.
• Lennstrand, Bo, Persson, Christian Forsström,
  Lars "Net Society. Content creation in Broadband
  systems". In Stanford-Smith, Brian Kidd, Paul
  T. E-business. Key Issues, Applications and
  Technologies. IOS Press, 2000.
• www.fek.su.se/home/bl

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B2B eMarkets

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B2B eMarkets An Analysing FrameworkEBEW2001
conference, Venice Italy, 17-19 October, 2001.

• Bo Lennstrand, Ph.D. Business Administration,
  M.Sc.
• School of Business, Stockholm University, Sweden
• Martin Frey, M.Sc. Martin Johansen, M.Sc.
• Media Technology and Graphic Arts, Royal
  Institute of Technology, Sweden

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The presentation
The research approach
A framework which can be used to structure
descriptions and analyses of B2B eMarkets when
looking for the elements that characterizes the
business models of succesful eMarkets
Two case studies of B2B eMarkets, which
illustrate the use of this framework
Final remarks B2B eMarkets as Hype i.e. as
Vision and Reality
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The research approach Exploratory and
qualitative

• Secondary data
• Consultant reports, white papers, news articles
• Articles from the Internet
• Literature and academic papers

The B2B Analysing Framework

• Primary data
• Interviews with
• Fashion industry players
• Food beverage industry players
• B2B eMarket makers

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Fundamental
Optional
Transaction fees Licence fees Advertising Professi
onal service fees Value added service fees
Trading mechanism
Content
Catalog Auction Reverse auction Exchange
Competition versus Collaboration
Third party owner Consortia Single company
Sources of revenue
Services
Disabler versus Enabler
Ownership structure
Connectivity
Type of products traded
Industry structure
Business relationships
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Fundamental
Optional
Catalog
Content
Collaboration
Subscription and transaction fees
Services
Enabler
Third party owner
Connectivity
TextileSolutions
Textile industry. Autumn 2000 65 people
employed, global scope, sales offices in London,
Paris, Milan, Lisbon, Dussledorf, New York,
Boulder, Bangkok, Hongkong, Seoul, China. This
industry is fragmented on the buyer as well as
the seller side. Customers Companies that buy or
sell high-tech textiles and trims used primarely
for sportswear, activewear, leisurewear and
workwear. The sellers are wholesalers and agents
or fabric and trim producers. The buyers are
either manufacturers or brand owners. At the time
for the case study, TextileSolutions had about
300 customer.
Type of products traded
Industry structure
Business relationships
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Fundamental
Optional
Catalog
Content
Competition (supplier side)
Subscription and transaction fees
Services
Disabler
Third party owner
Connectivity
Merkant.com
Food beverage industry. Swedish buyers and
sellers from other European countries. The
products traded have mainly been fruit,
vegetables, cheese and bread. Imported food
products pass many channel levels before they
reach their final destination. The Swedish food
beverage industry is very concentrated on the
wholesale level of the supply chain. Almost every
individual retailer is a member of one of three
major large purchase organizations (ICA, KF,
Axwood). Some financial data are available The
first half of 2000, Mercant.com reported a loss
of near 2 million USD, after a modest turnover of
15 000 USD.
Type of products traded
Industry structure
Business relationships
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• Two B2B eMarkets two different business models
• one TextileSolutions well suited to the
  market characteristics
• the other Merkant.com seemed to be less
  appropriate

• but TextileSolutions was the first to fail
• Merkant.com was no success

• So far, B2B eMarkets have been a hype the
  reality is far from the visions
• Main reason Liquidity a critical mass problem
  raised to the second power

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The GartnerGroup Hype Cycle
Hype-area Strong image values that can
be exploited on a short term basis
Sustainiable profit area - traditional rules for
business succes are valid
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Gap 1 factors

• tendency
• doctrines
• metaphors
• product
• category
• technique
• economy
• needs and
• benefits

Gap 2 factors

• technique
• market
• (critical mass)
• economy

Business model
business models and vision gaps
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CRM

• Bo Lennstrand
• bl_at_fek.su.se
• www.fek.su.se/home/bl

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CRM - Customer Relation ManagementTo keep good
customers and get new ones

• Customer value and customer care
• how to know who is a good customer
• to know what good customers like
• Customer base and customer search
• characteristics of a good customer
• search for twins
• To get customers and to keep customer
• find triggers Situations when you often buy
• Identify warnings signs customers going astray

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Kundvärdering och kundvård

• Who is the customer?
• Economic value
• Rebuy and retention
• Customer share
• Profitability
• Strategic value
• Knowledge about own preferenses and the
  preferences of others
• Relation value
• Referens value (status, publicity, word of mouth)
• What do good customers like?
• How to award good customers?
• i.e. First class service, open or hidden

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To get new good customers

• Mutual signs of good customers?
• Customer classification and datamining
• Segmentation, the PM-matris
• age, sex, income, occupation, personality
• Something else?
• Find the twins of the good customer
• segments
• triggers

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Customer temperature

• Triggers
• Observable situations, whick due to previous
  experience raises the probability of buying
• e.g. A new child. Buying a house. Birthday, 15,
  18, 50
• Varningssignaler
• Warning signals from customer near to going
  astray
• Methods to keep them stay Offerings, contacts?
• The Volvo card monthly bill offers 30 öre off
  per liter petrol for the comming three month as
  soon as three consequent monthly bills show zero.

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CRM applications

• CRM
• Sales management, customer care
• Immediate customer information
• Sign system for salesmen. How and when?
• automatised customer care. Where and how?
• Prospering
• Tool for analysis
• Compass