Marketing and Technology
Professor John M. McCann
This course is about technology s impact on marketing, how firms have and should use technology to support their marketing and related functions, and how a Fuqua grad could take advantage of the new opportunities that flow from the new situations that will continue to emerge as the technologies evolve. The primary technology is the Internet because it is having the biggest impact of any technology on the practice of marketing. Thus a major aspect of this course is the study of the Internet, its implications and its uses. But because the Internet is alive and being continually fed by underlying technologies, we need an understanding of the more fundamental computer and communications technologies that have enabled the emergence of the Internet. We will start our study with a focus on those digital technologies, move to the Internet itself, and then on to the next incarnations that are coming our way via these same technologies. At all times, we will focus more on the implications and uses of the technologies than on the technologies themselves.
The goal of this course is to prepare the student to be a leader in a corporation (small or large) that is being impacted by the emerging digital technologies. Such leadership ability requires an understanding of: Today s underlying digital technologies,
The current implementation of those technologies: the Internet, The ways that the Internet has enabled new business opportunities, The evolving digital media that will be enabling the creation of second-generation Internet environments, digital television, and other enabling platforms, The business models of the entities that are converging to create these new platforms, The opportunities that arise as new technologies obsolete the existing business models.
It is amazing that, for all practical purposes, the Internet is only a few years old and that its uses and impacts are becoming well-known. One of those impacts is the increase in speed at which modern businesses have to operate in order to compete on a national or global basis. The Internet is changing the rules in industries such as publishing, education, automotive and consulting, and as it evolves it touches more and more industries. To be a business leader today, one has to understand this evolution and its likely impacts. Thus we cannot restrict our study to today s Internet; we must understand the underlying technologies so that we can make reasoned predictions of the coming impacts of digital computing and communication technologies.
The next big leap is likely to involve the related emergence of 1) digital television transmission (DTV), 2) the broadband Internet, 3) broadband intranets, and 4) teleputers. All of these technologies are becoming available in 1998 in one several forms and formats.
The study of technologies and their impacts can be exciting for some and sterile for others. It is only when one delves into the implications of those technologies for a meaningful organization that the topic becomes alive. In the past, I have required students to write a paper about the implications of these technologies for an organization of their choice. Here are some titles of those papers: Marketing Industrial Products on the Internet: A Case Study of Allied Signal Aerospace The New Age Realtors The Digital Revolution and Hollywood: What Will Happen to Entertainment? The Concept of Cyber Care The Anachronism of Travel Agencies Marketing at the Kimberly Clark Corporation in the Year 2015 The Future of Pharmaceutical Sales The Future of McNeil Consumer Products Company
Some students became sufficiently engaged in their project to get significant value out of the exercise; others seemed to just go through the motions as a means of completing the course. This year, I want to provide an option in which we collectively design a new entity for the Fuqua School of Business the Fuqua Channel.
its professors contact with many leading business executives. and its large publishing operation was one of the primary reasons. HBS is very busy making the transition to a multimedia publishing business. The early part of the 21st century will be a transition period in which the television industry undergoes several transitions: From To
Analog television Digital television
One standard (NTSC in U. The last couple of years of the 20th century are a conception period.S. we will see ourselves as a broadcaster. It is clear that the HBS deans sees the Harvard Business School Press (HBSP) as a publishing business. and its students exposure the current business practices and problems. a period of time where digital television is being conceived.) Multiple.
Rather than start with a print publishing model.HBS enjoyed that #1 ranking for a very long time. interactive books on CD-ROM. higher definition standards
Channel & Time model Content Model
On-schedule transmission On-demand transmission
. and videos. It gave the school a renewable source of income. one that is evolving from a print publisher to a multimedia publisher of text. one that is not evolving from a traditional broadcaster but one that is starting as a digital broadcaster.
and the role of established companies such as Honeywell. etc. The same phenomenon is likely to occur in the broadcasting industry.
Details of the project will evolve during the first two weeks of the course. Plentiful and cheap will replace scarce and expensive as drivers of new business models of the 21st century digital television world. Microsoft and Intel entered the computer business during the transition period associated with the microprocessor. new entities enter established industries such as broadcasting and it is common for some of those new entities to grow to very large firms and some of the established firms to disappear. Another key word used in this industry is expensive: Expensive talent. such as terrestrial television. One of the key words that characterizes most of those segments is scarce: Scarce bandwidth. expensive equipment. cable television. scarce talent.Few producers Many producers
Expensive broadcast stations Cheap narrowcasting stations
Stand-alone TV Internet-supported TV
During all conception and transition periods. scarce executive talent.
There are many segments of any industry.
Daily Assignments and Class Sessions
. radio. Burroughs. etc. Digital technologies in the form of new computing and communications equipment are reducing the relevance of scarce and expensive as drivers of the new television era. etc. and the broadcasting industry has its established segments. and they now control a large part of this industry. Data General have been severely diminished. UNIVAC.
visiting corporate WWW pages and discussing corporate uses of the Internet. December 8." Forbes. along with questions for each reading. March-April 1991 "Fiber Keeps Its Promise. 1997 "Digital Warriors Want Baby Bell's Blood. and interacting with visitors. Digital Technologies "Into the Telecosm. October 6." Forbes ASAP.The document Course Schedule contains a list of reading for each course. 1997 "Communications: The Next Wave.
Class time will be devoted to discussing the reading. watching and discussing videos and lectures. Each student must read each assigned article and be prepared to discuss the questions in class (and any others posed during class by students or the professor).
Grades will be based upon three activities:
Class participation 25%
T January 20 Course Overview." Wall Street Journal. April 7. 1997
. "Harvard Business Review.
23." Business Week. 1997
F January 23 Internet "Networks" Scientific American. May 27. Jan. December 9." Wired. August 1995 "Broadcasting is Finished. 1996 "Going Digital Means Sharper Boob Tubes." Wired July 1996 "The End of TV As We Know It. 1993 "Object-Oriented Television." Boardwatch. 1996
T January 27 Changing an Industry from Place to Space "Managing in the Marketspace."The Law of the Photon." Harvard Business Review. 1994 "HDTV: What's Wrong with this Picture. 1996 "The Silicon Age? It's Just Dawning." Forbes." Fortune. 8. 1996
. October 6." The Economist. Jan. 1997 "George Gilder's Telecosm: Life After Television. October 1997
T February 3 Digital Television "Bit by Bit." PC Magazine. Premiere Issue. December 1996
F January 30 Digital Media Technologies "ADSL: Another Pipe Dream." Wired." USA Today. February 23. Special Issue: The Computer in the 21st Century "The Economics of the Internet." Computer Shopper May 1996 "Craig McCaw Sees an Internet in the Sky. PCs Are Becoming TVs." Web-Star (Internet web site) "Streaming Media." Fortune. 1997 "Intercast Brings the Web to TV. December 1997 "Real Revolution. Updated. 1997 "Technology and the Future of Broadcasting. October 19. 21." Wired." Forbes. Dec. Nov-Dec 1994 "The Airline of the Internet. October 6." Wired." Forbes ASAP.
1996 "Reclaim the Deadzone." Scientific American." Internet World. Special Issue: The Computer in the 21st Century
T February 17 Advertising and Electronic Commerce "Advertising Webonomics 101. February." Videomaker." Internet World. December. October 1997 "Products and Services for Computer Networks." Wired. November 1997
F February 13 Examination & Changing Nature of Work "Computers. November 1997 "Newsmaker Q&A: James Murdock. January 1998 "The Content is King. September 1991 "Savvy Sassa.S." Internet World. March 1995 "The City Built on Free Rent." Wired." Wired." Internet World. and the Corporation.F February 6 Intranet and Knowledge Management Ford Motor Company: Maximizing the Business Value of Web Technologies (HBS Case 9-198-006) KPMG Peat Marwick U. 1996 "The Birth of Digital Commerce.: One Giant Brain (HBS Case 9-397-108)
T February 10 Content "A Community for Couch Potatoes. November 1997
F February 20 Projects
T February 24 Projects
. 1996 "It's! Not! Retail!" Wired. Networks." Scientific American." Fortune. December 9. November 1997 "The Last Broadcast is a First: The Making of a Digital Feature.
October 6. 1997 "The Law of the Photon. December 8. "Harvard Business Review. March-April 1991 "Fiber Keeps Its Promise." Wall Street Journal. 1997 "Communications: The Next Wave. 1997
F January 23 Internet
"Networks" Scientific American. Digital Technologies "Into the Telecosm. The examination will be composed of a subset of these questions. 1997 "Digital Warriors Want Baby Bell's Blood. Be prepared to discuss these questions in class. October 6. October 19. 1996
." Forbes." Forbes." Forbes ASAP.F February 27 Projects
The following questions should be answered as you read each article." The Economist. Special Issue: The Computer in the 21st Century What is a computer communications protocol? What is distributed computing? What is a knowbot? What role are they expected to play? What is circuit switching? What is packet switching? What are the pros and cons of circuit switching and packet switching? How does Ethernet work? How does Token Ring work? What is Asynchronous Transfer Mode (ATM)? Why is current cellular technology (not wireless. but cellular wireless) not well suited for the Internet?
"The Economics of the Internet. April 7.
T January 20 Course Overview.
Why is the Internet swamped today? Has it always been so? What is the financial model used by the Internet? What is an intranet? An extranet? Why are they becoming popular? What does the phrase "too cheap to meter" mean? What is the relationship between fixed and variable costs in a telecommunications network? What is expected to "bring prices closer to real costs?" Why do some economists argue to use-based pricing of the Internet? In the early days of the Internet (e. what would be the likely speed of the chip? What will it be in 15 years? (How is a chip's speed related to the number of transistors in the chip?) What is the size of a transistor on today's chip? What problems do such sizes cause? What is a Net Computer? How does it differ from the ones we use at Fuqua? What is the meaning and implication of the closing sentence: "After the turn of the century. Why are such delays more bothersome today? What is a settlement mechanism? What has been the common mechanism among telephone companies. everything you touch will have a chip in it. December 9."
T January 27 Changing an Industry from Place to Space
.g. in the wires/cables/fibers or in the electronics?)
"The Silicon Age? It's Just Dawning." Business Week. "we are only at the beginning of this revolution-inprogress? What metric do we commonly use to measure the speed of chips? If you bought a new PC today. 1996 Why is the chip so important? What did Andy Grove mean when he said.. and where are telephone companies going? What has been the Internet's settlement model? Why has this model led to a major disagreement among small Internet Service Providers (ISPs) and the large Internet backbone providers? Why is this settlement model so bad for non-US ISPs? What schemes are being proposed to overcome the settlement and congestion problems? (Where are the bottlenecks. 1990) delays meant that different parts of a file would be sent through different routes and thus might arrive at the receiving computing with various delays.
one outside both the technology and the airline & trucking industries. more and more goods are moving via jet airplanes.2% of GDP to 10. context. A marketspace transaction differs from a marketplace transaction in terms of content. not atoms." Wired. and their new information technologies are rising. and the rise of information technology.8% in 1995? What business was FedEx in. and infrastructure? How
Is Fuqua s value proposition similar to the traditional newspaper s value proposition? How could we change our strategy to focus only on content? Only on context? Only on infrastructure?
"The Airline of the Internet. context. Do you think that a new firm will come along and take over large portions of this industry.S. just as FedEx did in the shipping industry?
. You are getting your MBA in a "place" and are thus part of a marketplace. and infrastructure. or BBC in England. has the expenditure on logistics in the U. context. context. Why. and what business is it in today? FedEx rose to a large company by "riding the leading edge of two trends that have revolutionized the shipping business since the late 1970s: the deregulation airline and trucking industries in the US. They then describe the AOL model in which its value proposition centers only on its context. and infrastructure concepts to this MBA program. and infrastructure? Why or why not? How about a local TV station? A cable television channel such as the Discovery Channel or the Weather Channel? A particular TV show such as Seinfeld (which is produced by an independent company)? What is the Fuqua School might it evolve? s value proposition in terms of content. Nov-Dec 1994 Explain what the authors mean when they say "the AUCNET system has made the physical location of inventory and the actual site of buying and selling irrelevant. context. What is the content? Context? Infrastructure? On page 145. and infrastructure. For instance. the authors describe how a newspaper adds value in the marketplace by controlling content. then. Use this same logic to breakdown a television example. will be the bedrock of economic activity in the Information Age"? Since 1980. which is the most expensive way to move items from one point to another. consider a TV network such as CBS in the U."Managing in the Marketspace." Why do you think it took a new firm.S. to ride the leading edge of these two trends? The telecommunications industries are just now undergoing a deregulation." Describe other situations (not in the article) where this is true. Is a network an aggregate collection of content." Harvard Business Review. December 1996 Why is logistics the next phase of the digital revolution? What is the meaning of the phrase "bits. dropped from 17. Apply the content.
. What are the other forms and how does ADSL differ from them? Why is it important to know the unique feature of ADSL? Why might ADSL service grow rapidly? What is it about the technology that could allow telephone companies to quickly roll it out in a city such as Durham? This article uses a lot of jargon (4khz DC region. But it does mention MPEG and MPEG-2. training.uk:80/video. also playing at 30 fps. but with 752x480 resolution (better than VHS videotape) delivering broadcast-quality video "
"Craig McCaw Sees an Internet in the Sky.interleave. and home entertainment. a digital subscriber line.co." What does he mean? Smith says "The Internet is going to make it very difficult for anybody in a middleman position to stay in business. frequency division multiplexing. sales. the momentum of which is impacting industries from Hollywood to Telecommunications.. IS it true? Identify five middlemen who are exposed to such elimination. etc."It's a core tenet of the FedEx gospel that the data about each shipment is just as valuable as the shipment itself. What are the implications of being able to move multiple MPEG streams into the home via existing telephone wires? "MPEG (Moving Pictures Expert Group) is the new world standard for digital video. MPEG-1 is primarily targeted at the computer platform." Is that really true? Why? Why is the Internet an answer to their prayers? What are FedEx's plans for the Internet? Smith says. MPEG is taking off like wildfire in areas such as marketing. A search of the web using the phrase "mpeg definition" led me to the Interleave site (http://www." Reflect on this statement." Fortune. Will the Internet (and FedEx's vision of its impact) increase or decrease the role of marketing in the future operation of most firms?
F January 30 Digital Media Technologies
"ADSL: Another Pipe Dream.) that we will ignore. playing 30 frames per second at 352x240 resolution MPEG-2 is designed for High-Definition Television (HDTV) and home entertainment. May 27.htm) where I found the material shown below." Computer Shopper May 1996 What is ADSL? ADSL is a form of a DSL . 1996
. "The way to substitute information for mass is to make a distribution system that's as good as a warehouse.
It's like dragging the plague around behind you. 1997 What are the main differences between digital TV and analog TV? What is the difference between High Definition TV (HDTV) and digital TV (DTV)? Broadcasters have been given new spectrum and the freedom to use it as they wish. This argument is presented in the last few paragraphs of page 70. the bulk of our hiring needs are in technical areas. Would you go to work for them? This article. 8. one that will never be successfully completed and implemented." Some people say this is a silly project.What is Teledesic and what makes it "so breathtakingly audacious"? Visit the Teledesic web site (http://www.. Is the Teledesic project at a similar stage? What are the technologies and what are the needs of people that will be met? Explain how the Teledesic satellites will differ in operation from most of today's existing satellites. advertisers." What is his current conceptualization of it? Why did he switch? Do you think his current model or his original one would have a better chance of success? Why? The Teledesic homepage indicates that the following opportunities: Building the Teledesic Network will require a Team of dedicated individuals. unlike cars and freeways. "you arrive at moments in time when an entrepreneur. We are constantly seeking exceptional candidates with many different skill sets. and administrative. you ultimately destroy everything that came before. marketing.com/) and gain an understanding of "why the Teledesic Network represents an inherently egalitarian technology. Jan. what does it mean for broadcasters. This article says they could use it to "broadcast a fantastically sharp. Moving electrons gives us flexibility. producers of TV video." That seems to describe what happened when he formed McCaw Cellular: microprocessor technology had evolved to the point where small cell phones and transmitters made it economically possible to serve the communication needs of mobile people. McCaw conceived Teledesic "as a rural cellular telephony project that would extend the reach of wireless phone networks.. a technology. He says: "Whenever you add urban infrastructure. What are the foundations of their arguments? What is your position ." USA Today. indicates that the senior managers at Teledesic have a vision of solving the world's urban congestion problems. The beauty of electronic technology." Will this Teledesic project really have an impact on such situations?
"Going Digital Means Sharper Boob Tubes. is that we can resolve problems that are completely intractable when you move people physically. legal. where McCaw describes a Guatemala village without communications in which people must migrate to cities. and the needs of people coincide. will it be successful? McCaw says. Although some opportunities exist in business development.teledesic. wide-screen picture with six-channel surround sound" or the same station could "choose to split its signal into five to 15 digital channels that would look better than current analog channels. finance. and for consumers?
." Which of the two do you think they will do? If they do the latter. as well as more recent articles about Teledesic.
21. the paragraph that begins with "All this could wreak havoc scenarios. and/or infrastructure? Glaser s vision depends upon the growth of bandwidth. What is about "going digital" that allows them to move from today's 50 or so channels to 700 channels? Is all of this just a dramatic increase in the number of TV channels that the current television broadcast industry will fight over? Or." Wired. context." PC Magazine. underserving the assets they are associated with. Rather than my asking you questions. Jan. what role will Progressive Networks play?
.The article says that cable operators will probably go digital and thus be able to start offering 700 channels." Web-Star (Internet web site)
"Streaming Media." Boardwatch.
"Real Revolution. changes in what?
"Intercast Brings the Web to TV. at the very least. When we do get all of the bandwidth needed to bring out his vision (to send broadcast quality video on the Net)." What is he talking about?
What business is Glaser in? Content. will it lead to fundamental changes? If so. Which one do you think is most likely to occur? " describes two future
At the beginning of page 176. Glaser is quoted saying "Anyone who underestimates the depth of the transformation already underway will be out of business . On the good side.or. On the bad side. you formulate several questions about topics in the article that need to be clearer in order for you to fully understand the article. it is full of technical jargon. it provides a good practical source of information on the resources needed to set-up and operate an Internet broadcast channel. October 1997 What is a multicasting backbone? On page 126. December 1997 This article has a good and a bad side. 1997 What is Intercast? Is Intercast really going to "change the way we watch television"?
"Technology and the Future of Broadcasting.
PCs Are Becoming TVs.In the middle of page 176. "it will look strange tour great-great grandchildren"?
"Broadcasting is Finished." Wired. Glaser says that aggregators will be the winners and that the underlying consumer mechanism for delivering choice will be IP-based. what content would it be natural for us to aggregate? What does Glaser mean when he says (in the middle of page 186) "after the turn of the century. Explain what he means by these two conjectures. Which is more social? What is the basic difference between today s TVs and PCs? What is TV s economic model today?
Why does Negroponte say. August 1995 What does Negroponte mean when he says "don t confuse television with television sets"?
People watch TV side by side in a room." Forbes ASAP. February 23. October 6. 1997 Why does Hundt believe that "communication is king. Could Fuqua be an aggregator? If so. and people use computer networks to interact with others round the globe. every new TV that is sold will be an IP device"? Why does he believe that will be the case? What is a "branded nonchannel"?
T February 3 Digital Television
"Bit by Bit. and content is only a prince"? What does Hundt mean when he says "the whole idea of TV is not that you are a couch potato but that you re as dumb as a potato"? Why does Hundt believe that "broadcasting is finished"?
"George Gilder's Telecosm: Life After Television. 1994 What does Gilder say is driving the "telefuture"? Why? What is the "law of the microcosm"? What is the "law of the telecosm"? What is the Negroponte switch?
." Forbes. Updated.
23." What has caused this drop? How much longer will we use the word "broadcasting" and what will replace it. What does he mean and why does he believe it? What does Gilder mean when he says "Computer networks give every hacker the creative potential of a factory tycoon of the industrial era and the communications power of a TV magnate of the broadcasting era"? Do you agree? On the bottom of the first column of page 103." Wired July 1996 What is object-oriented television? What is "real virtuality"? Why is he a proponent of object-oriented television?
"The End of TV As We Know It. Dec.a 40% drop from the numbers CBS enjoyed when it was on top 20 years ago. the author says: "Even now the networks continue to hemorrhage viewers: NBC came in first last season with a Nielsen rating of 11. What reason does he give for these failures? What does Gilder mean when he says (on page 100) "In the computer industry. This article was published in February 1994 and thus written in late 1993. how many of these 10 advances have been made?
"HDTV: What's Wrong with this Picture. select a channel to
." Wired. Gilder lists 10 key advances needed for the teleputer. Premiere Issue. 1993 Why does Negroponte believe that the US "blew it" by "rooting our thinking in high definition"? What reasons does he give for our being optimistic?
"Object-Oriented Television." Fortune. Gilder describes the repeated failures of many firms to make money on broadband systems.7 -. In the 4 years since then. at least in America.4 TV sets.In the sections titled "The Avalanche of Bits" and "Like Feeding Vitamins to a Horse". Do you think it is true that people really want their TV to act like a PC? Isn't this silly? Don't most people. all the surprises tend to come on the upside"? Why is this important? Why does Gilder believe that "the new technologies are targeted at Hollywood"? Gilder says that the video business will increasingly resemble not the current film business but the book business. 1996 How did Bill Gates ruin everything for the people who had worked for years on HDTV? Near the end of page 60. want to flop down in front of one of their 3.
Even more will people want someone who's accurate and timely. CNN's vice president. and be entertained? Haven't all the trials of interactive TV shown that people just do not want to interact with a television? When this article was published. and what is its likely future? On page 68. it has to be managed well. 2) "KPMG s real asset was the knowledge that resided with each of the firm s professionals". says.000-channel universe.000-channel universe." Do you believe CNN will be better off in that 5. What would have been the impediments to such a knowledge sharing initiative in that organization?
." Consider one of the organizations you have worked in. What do you think of this approach to desktop computing in a corporation such as Ford? The case closes with Derwa observing that although the Ford Web has grown exponentially in content and access. What has happened to it. or in today's 50-channel universe?
F February 6 Intranet and Knowledge Management
Ford Motor Company: Maximizing the Business Value of Web Technologies (HBS Case 9-198-006) What was the role of Ford 2000 in the rapid growth of the Ford Web? What is the difference between Ford s intranet and the Ford Web?
Why were the Web applications so successful so soon at Ford? What were the challenges and hurdles involved in connecting suppliers? What was done to overcome these hurdles? Why was it so important to connect suppliers to the Ford Web? What is Ford doing to manage Web content? Which aspects of their efforts do you think are good and which ones are bad? Ford is considering a move to Network Computers (NC).S. What do you think of his observations and conclusions?
KPMG Peat Marwick U.watch. WebTV was just coming onto the market.: One Giant Brain (HBS Case 9-397-108) Page 5 of the case tells us that 1) the objective is this new initiative is to "give KPMG professionals ubiquitous access to the firm s brain trust". and 3) "it was imperative that the firm effectively manage and share knowledge in order to provide the best possible service to its clients. Harry Motoro. "We're actually better off in a 5.
We can see that materials are available in numerical form (in the Data Warehouse)." Internet World. An obvious question concerns the on-going processes for feeding and updating this "giant brain. etc." Scientific American. Such a person had to have a high level of expertise in subject matter and domain. But the author says. and Pointcast documents for "pushing" onto the client computers. HTML web pages." Internet World. multimedia format. November 1997 What is ChatTV? Do you think it will be a big success?
"Newsmaker Q&A: James Murdock. October 1997 Each communication medium (TV. Do you believe there will be one business model evolve. Answer the questions in the paragraph on page 12 that starts with "To effectively manage knowledge "
T February 10 Content
"A Community for Couch Potatoes. "the business model is not yet formed" for the Internet.Exhibit 4 shows us the components of the technical architecture that underlies KWeb." Can you think of any examples?
. why are broadband systems inevitable? One key message of this article is stated on page 102: "The real products and services of the future will come from imaginative applications of both channel and computing capacity." Negroponte said. radio. (when this article was written in 1991) "many network products and services being proposed now are contrived. not from either alone. Do you think experts will be reluctant to give up their knowledge in this manner? Answer the question in the next the last sentence on page 11. We can see that this person is going to have to put his/her knowledge into the knowledge management system. September 1991 According to Negroponte. magazines." Who do you believe will be the people in KPMG who will actually do this work? The role of a "knowledge master" is defined on page 11.) has its own well-known business model. as has been the case for the other media? What does Murdock mean when he says "It s the first time in a while in the new-media industry that you really do have an almost open playing field"?
"Products and Services for Computer Networks.
" Can you think of reasons why we could challenge this point? Apply the concepts of copyright. These three words pretty much say it all in the wild and woolly new world of digital-age content. In the right hand column of page 107. What are or could be our copyrights? How do or should we brand them? How can we leverage them?
. Why can it be successful for TBS and not in the other venues? What lessons does this provide for almost all small businesses? At the end of the article. what does the word "copyright" refer to or mean? What is the W-cubed concept and do you think it will become the dominant model and the networks will go away? Given that networks are losing audiences every year. It is interesting to realize how far we have come in the few years since this article was written. How far is this site from Negroponte s description of a personalized newspaper?
"Savvy Sassa. The show only had a 2. Go to Microsoft s site (http://home." I have never seen that phrase used in the context of an entertainment business. What is it? On page 106 (in the middle of the right hand column). Branding. and leverage to the Fuqua School of Business. systems) carries it.S.com/) that provides a rudimentary form of such a service and personalize it for you. Visit the John Scott Real Estate Company (http://www." Wired. you will see that the system has already been implemented on the net. he describes a future personalized newspaper. But he says that it makes money when the TBS cable channel (which is on almost every cable system in the U. branding. March 1995 The article opens with the following conjecture: "Copyright."" He uses the phrase "will come" but it seems that we have such an electronic surrogate that we have all been using for a few years. but why is branding and leverage so much more important in the digital age than in the pre-digital age? Sassa says in his business. and some non-U.microsoft. Negroponte describes an example of combining a videodisc with an online connection for searching for a home.johnlscott.S. "The more fascinating developments will come from new services that free you to wander and that crate an electronic surrogate for you on the network with which others can communicate. Sassa tells the story of his company s success with the Saved By the Bell television show.com/) and do a Home Search. he says.5 rating and thus would not succeed on a network or syndicated to local stations because the rating was so low. Sassa says. In a company such as Turner Broadcasting. the value chain starts with the "creation of good copyrights." It s easy to see why copyright takes on a different status in the digital age. Leverage.In the first part of page 104. why are they still a good business? In the right hand column of page 161. "there are only so many filmmakers who can make a Citizen Kane or a Gone With the Wind and capture the imaginations of tens of millions of people.
" Internet World.html). assume that the Fuqua School of Business wanted to follow David Bohnett s model and do something similar. Who would get badly hurt? Why? Bloomberg says his company is different from most information providers. what is the future of such effort? Is there a viable target market for such efforts? Sassa. make sure you explore the Community Leaders section of the neighborhood. What creative insights do examining and thinking about this site (and reading the article) generate about a future venture by the Fuqua School of Business?
"The Content is King. then it is useless for people like Weiler and Avalos to even try." Videomaker. This movie was made with low cost equipment. If we accept his statement." Explain what he means.com/theater/video. and that because of that difference he can charge high prices for their content. every single ad is a direct response. this movie is not of the quality of today s major movies or even the minor movies.000. And people are scared to death of that.com) and visit one of their neighborhoods (but not Wall Street). used a lot of volunteers. What was the model before the Internet and what will it be after Bloomberg migrates to the Internet? Bloomberg says "subscription with us.geocities. in the "Savvy Sassa" article.dvlive. As you examine this site. Why does it not work for most? At the end of page 76. go to the geocities web site (http://www. If you have a suitable computer and plug-ins. and had a budget less than $1. and a little bit with The Wall Street Journal. because what do you do if nobody s watching? Lot s of people in the food chain would get badly hurt if we could really measure who was watching what. So. November 1997 Visit a web page associated with this movie (http://www. Obviously."The City Built on Free Rent. Bloomberg says "on the net. November 1997 Why is Michael Bloomberg happy when people tell him "The Internet is going to put you out of business"? Apply the marketspace model to Bloomberg s primary business. download some of the short videos from or about the movie. but does not seem to for most". is it not?
F February 13 Examination & Changing Nature of Work
. January 1998 Using Netscape." Internet World. What makes them different? What lesson can Fuqua School of Business learn from Bloomberg if we decide to broaden our service beyond paid education?
"The Last Broadcast is a First: The Making of a Digital Feature. says that there is major shortage of movie-making talent.
assume the value on the information to the consumer and the cost of searching and acquiring that information. Networks.Examination
"Computers." Wired. Equate marginal cost with marginal revenue and derive the price consumers should be willing to pay for Internet access. Special Issue: The Computer in the 21st Century
T February 17 Advertising and Electronic Commerce
"Advertising Webonomics 101. Why? Do you believe "the most important things the web can deliver is a fully qualified lead or customer"? How do you "turn a site into an online focus group"? Is the ultimate goal of marketers to make the web like TV?
"Reclaim the Deadzone. and the Corporation." Wired. For instance. 1996
. December." Scientific American. 1996 What is webonomics? Who are the four main groups setting the digital landscape? What are their motivations? About a year ago I had a late night debate with a marketing professor at another university who said that we could easily understand the Internet by applying stand economic models. February.
What does webonomics teach us about the applicability of this professor
What are the five principles of webonomics and why are they true (or believed to be true by the author)? Do you think micropayments have a big future on the net? We do not see many email links on large corporate web sites. assume the consumer s reason for using the Internet is to acquire information.
Why will today s banner ads not generate the revenue necessary to support a content provider such as Wired or USA Today? What is the purpose of today s banner ad: an invitation to link to the advertiser s web site or a place to create a vivid brand experience? Visit a few banner ads at Pathfinder. before answering. etc. Wired.cuc.The net has an "information wants to be free culture" created by a situation of abundant supply of redundant content (at o charge and on nearly every conceivable subject) that outruns demand. If this practice becomes wide spread. December 9. Yahoo. Advertisers such as P&G only want to pay for the number of people who "click through" a banner ad and not pay for people who only view or are exposed to the ad. one that seems to compete with Shoppers Advantage? On page 221.com/ctg/cgi-bin/SAShoppers/). 1996 What is SET? Do you think that electronic commerce has a limited future because the majority of people are never going to send their credit card number over the Internet? What is a Digital ID? What is a microtransaction and what is its likely future?
"It's! Not! Retail!" Wired. why are so many business people claiming that the web is doomed if we don t find a way to pay for all the content? Will all the content providers leave the net if they cannot make money? What are the steps that the author believes advertisers can take to improve their fortunes. ERA." Fortune. November 1997 Visit the Shoppers Advantage web site (http://www. and how do they differ from today s typical corporate web site? What is cobranding?
"The Birth of Digital Commerce. Given that situation. as opposed to using online services such as AOL? The company seems to have an online shopping service that is reachable via the web page. where you will find that the company does not have an online catalog. Why do you think they have developed yet another online service. Why do you think they have been so slow to do business on the Internet. "Wall Street loved the concept:
. what impact will it have on the future of banner ads? The author believes that "infotainment providers can restore the belief that real advertising can be done on their sites. the author describes 1997 describes HFS practice of buying companies that have franchises (Avis. ) and then selling most of the real assets." What is his prescription and do you believe it will work? What are brand modules.
which are similar to mutual funds. If Walter Forbes vision of the future of retailing comes true. computer networks. buy as much as three times more than traditional members. consumer databases.own computer networks. and the FedEx strategy. and brand names." Why do you think this is true? Forbes Magazine recently had a cover story about the glowing future of REIT funds. are we seeing the future of electronic retailing: nothing but brand names. Although the company has 50. we are told that CUC is trying to "switch its existing telephone members to switch over to its Web or AOL services. which buy real estate instead of stocks and bonds. Page 222 contains a description of the merger of HFS and CUC. customer data. what are the implications for REIT funds?
. CUC has found. along with the business model that underlies the merger. Online shoppers. and delivery systems? What is the future role of shopping malls and other physical retail outlets? Why will the Internet "not be an entrepreneurs haven"?
On page 287.000 employees." Apply the marketspace model to this company s business strategy. would it be correct to describe it as a virtual company as opposed to a traditional company? Explain. When we examine the logic behind Cendant Corp.