Mike Shaw Center for Information Systems and Technology Management University of Illinois at Urbana Champaign University of Illinois at Urbana Champaign (UIUC) Center For Information Systems and Technology Management Michael 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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Mike Shaw Center for Information Systems and Technology Management University of Illinois at Urbana Champaign University of Illinois at Urbana Champaign.
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Mike Shaw
Center for Information Systems and Technology Management
University of Illinois at Urbana Champaign
University of Illinois at Urbana Champaign (UIUC)
Center For Information Systems and Technology Management
Michael 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
Mike Shaw
Center for Information Systems and Technology Management
University of Illinois at Urbana Champaign
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
Mike Shaw
Center for Information Systems and Technology Management
University of Illinois at Urbana Champaign
Web Based Strategies To Fulfill Consumer Needs
* Web Advertising
* Virtual Communities
* Interactive catalogs
* Virtual store-front
* Virtual Reality
New Consumer Processes
* Global Supply Chain Integration
* Sense and Respond
* Digital Interactivity
* Multimedia Databases
* Customer Profiling
* Interactive Marketing
* Consumer Interface
Quick Response
MassCustomization
IntelligentVirtualStores
Product Promotion
Mike Shaw
Center for Information Systems and Technology Management
University of Illinois at Urbana Champaign
Consumer Purchase Needs
Knowledge
Aggregation
Customization
Networking
Ubiquity Interaction
Experience
Mike Shaw
Center for Information Systems and Technology Management
University of Illinois at Urbana Champaign
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 consumer’s convenience, rather that at the provider’s convenience
• Aggregation - Bringing together a number of related and required services at a single point of contact
• Customization / Personalization - Tailoring products to consumer’s needs rather than adjusting consumer needs to available product ranges
Mike Shaw
Center for Information Systems and Technology Management
University of Illinois at Urbana Champaign
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
Mike Shaw
Center for Information Systems and Technology Management
University of Illinois at Urbana Champaign
Product Promotion - Web Advertising
Banners
Buttons
Keyword Ads
Advertorial
Destination Site
- Advertising designed to blend with the editorial content of the page
- Web page becomes a central access point for customer to provide information, education, news, entertainment
Issues: - Measurements
- Strategy- Effectiveness
Web Portals - Starting web page from where user accesses services like search, news, and email
Mike Shaw
Center for Information Systems and Technology Management
University of Illinois at Urbana Champaign
Product Promotion - Virtual Communities
• Characteristics– Collective knowledge
– Targetable audience
– Influential opinion leader
– Increasing returns• Marginal cost effect
• Learning curve effect
• “Network externalities”
Membership of community
Potential Revenues
Mike Shaw
Center for Information Systems and Technology Management
University of Illinois at Urbana Champaign
Promote participation* Member content* Editorial content* Invited Experts
Build Loyalty to Group* Member to Member* Member to Host* Customized Interactions
Capture Value* Advertising* Transactions* Fees for premium services
Attract new members* Marketing* Attractive content* Free membership and usage
Building and exploiting virtual communities
Product Promotion - Virtual Communities
Mike Shaw
Center for Information Systems and Technology Management
University of Illinois at Urbana Champaign
Benefits of 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
Product Promotion - Virtual Communities
To sponsor organization Reduced search costs
Effective targeting of products and servicesInfluence the purchase decisions of new membersLoyalty can be exploited to offer range of products and services to consumersGlobal reach at much lower costs
To participating vendorsTarget audience with known demographics and interestsEffective response for promotion messagesReduced search costs of target customersGlobal reach at much lower costs
Mike Shaw
Center for Information Systems and Technology Management
Center for Information Systems and Technology Management
University of Illinois at Urbana Champaign
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
Mike Shaw
Center for Information Systems and Technology Management
University of Illinois at Urbana Champaign
Mike Shaw
Center for Information Systems and Technology Management
University of Illinois at Urbana Champaign
Educational
Esthetic
Passive Participation
Immersion
Active Participation
Absorption
Escapist
Entertainment
The Four Realms Of An Experience
B. Joseph Pine II and James H. Gilmore, Harvard Business Review, July-August, 1998
Mike Shaw
Center for Information Systems and Technology Management
University of Illinois at Urbana Champaign
Customers provide potential interests
Sample of likely matches
presented
Image Database
Product Catalog
Customer “Virtually” tries
& matches Selections
Is Selected Set
Satisfactory?
Customer Recommends Changes to Selections
Yes
No
Customer decides on a
SelectionCustomer Database
Customer Preferences
Interactive Iterative Process
Virtual Stores - A Vision
Mike Shaw
Center for Information Systems and Technology Management
University of Illinois at Urbana Champaign
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
•
Mike Shaw
Center for Information Systems and Technology Management
University of Illinois at Urbana Champaign
Mass Customization - Example Garments
Tools3-D scanning tools
Visualization toolsCloth draping algorithm
Virtual reality tools
Image databases
Artificial intelligence interface
Internet for integrated design, marketing and retailing
StepsCustomer’s 3-D image scannedCustomer interactively selects color, model, and print designOrder transmitted through web to factoryGarment stitched and deliveredBar-code used to store customer choices
Mike Shaw
Center for Information Systems and Technology Management
University of Illinois at Urbana Champaign
Mass Customization - Benefits
• Customer’s 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
• Customer’s feedback used in general garment design
Mike Shaw
Center for Information Systems and Technology Management
University of Illinois at Urbana Champaign
Mass Customization - Interactive Digitization
• Image Storage and Retrieval
• Image Synthesis• Interactive Feature
Specification• Integration with
Supply Chain
Mike Shaw
Center for Information Systems and Technology Management
University of Illinois at Urbana Champaign
Mass Customized Products - Examples
Personal computers Dell Computers
GarmentsLevi’s Strauss
Eye glasses LensCrafters
Vitamin pillsAcumin
Appliances
Furniture
Mike Shaw
Center for Information Systems and Technology Management