Kompilasi PPT Bisdig UAS

IT for Management: On-Demand Strategies for Performance,
Growth, and Sustainability

Eleventh Edition
Turban, Pollard, Wood
Chapter 7
Web 2.0 and Social Technology

Learning Objectives (1 of 5)
Copyright ©2018 John Wiley & Sons, Inc. 2
Web 2.0—The Social Web
• The Constantly Changing Web

o Web 2.0 (the social web): a term used to describe a phase of
World Wide Web evolution characterized by dynamic
webpages, social media, mashup applications, broadband
connectivity and user-generated content.
o Social media: a collection of Web applications, based on Web
2.0 technology and culture that allows people to connect and
collaborate with others by creating and sharing digital
content.

Invention of the World Wide Web
• The Constantly Changing Web

o World Wide Web (the Internet): a network of documents on
the Internet, called webpages, constructed with HTML markup
language that supports links to other documents and media.
o Broadband: refers to wide bandwidth technologies that create
fast, high volume connections to the Internet and World Wide
Web.
o Social media: a collection of Web applications based on Web
2.0 technology and culture that allow people to connect and
collaborate with others.

Table 7.2: Web 1.0 vs. Web 2.0
Web 1.0—The Early Web Web 2.0—The Social Web

Static pages, HTML Dynamic pages, XML, and Java
Author-controlled content User-controlled content
Computers Computers, cell phones, televisions, PDAs,
game systems, car dashboards
Users view content Users create content
Individual users User communities
Marketing goal: influence Marketing goal: relationships
Data: single source Data: multiple sources e.g., mashups

Emergence of the Social Web (1 of 2)
• Setting the Stage for Web 2.0
o Broad bandwidth (broadband): Internet access became faster
with largescale adoption of broadband
o Sustainable business models endured over time, and
generated revenue (Amazon, Google, eBay)
o New Web programming technologies: ability to develop web
pages that are dynamic and rich in features

Emergence of the Social Web (2 of 2)
• Setting the Stage for Web 2.0
o Application programming interface (API): set of commands and
programming standards used by developers to write applications that can
communicate with other applications.
o Software Development Kit (SDK): a collection of software tools used by
developers for writing applications that run on a specific device or
platform.
Together, APIs and SDKs have fundamentally changed the degree to which
businesses share their information resulting in a vastly improved and more
useful World Wide Web.

AJAX Technologies and APIs
AJAX technologies, or asynchronous JavaScript and XML, is a term
referring to a group of technologies and programming languages
that make it possible for webpages to respond to users’ actions
without requiring the entire page to reload.
AJAX technologies include:
o JavaScript
o Extendable Markup Language (XML)
o Document Object Model (DOM)
o HyperText Markup Language (HTML)
o XMLHttpRequest
o Cascading Style Sheets (CSS)

Table 7.4: Communicating on the Web
Facebook Social Plug-Ins Used Across the Web
Like button Shares pages from a website back to the user’s Facebook profile
Send button Allows users to send content from a website to their Facebook friends
Comments This plug-in allows users to comment on a webpage’s content using their
Facebook profile and shows the activity to the user’s friends in a newsfeed
Embedded posts Places content from any public Facebook post on to your website or blog
Facepile This feature displays the profile photos of the people who have connected
with your Facebook page or app
Login button Shows profile pictures of the user’s friends who have already signed up for
your site in addition to the login button
Source: Facebook (2014)

Social Media Applications and Services
• Social Media Applications and Services
o Social Networking Service (SNS): an online platform or website
that allows subscribers to interact and form communities or
networks based on real-life relationships, shared interests,
activities and so on.
Both YouTube and Facebook started as SNSs, but now span

multiple application categories.

Categories of Web 2.0 Applications
Application Description
Social Networking Services (SNS) Online communities
Blogs Online journals
Mashups/widgets/RSS Web applications that pull data from various
sources and display on another page to create
new functionality
Social bookmarking/tags An application for tagging or labeling online
content for later retrieval
Wikis An application for tagging or labeling online
content for later retrieval
Sharing sites Websites that make it easy for users to upload
and share digital content like photos, videos, or
music

More than Facebook, YouTube, & Twitter
• Businesses use social media for a wide variety of benefits:
o Collaboration
o Communication and Engagement with Customers (Marketing)
o Image and Reputation Management (Public Relations)
o Communication and Engagement with Employees and Partners
(Management)
o Talent Acquisition and Recruiting (Human Resources)
o Research and Knowledge Management
o Productivity and Information Utilities
o Fund Raising

Elements of Social Media (1 of 2)
• Elements of Social Media: What Makes it
Different?
o User-generated content (UGC)
o Content control
o Conversation
o Community (common values, culture)
o Categorization by users (tagging)

Elements of Social Media (2 of 2)
• Elements of Social Media: What Makes it
Different?
o Real people (profiles, usernames, and the human
voice vs. the corporate “we”)
o Connections (followers, friends, members, etc.)
o Constant updating (real-time, dynamic)
o Content separated from form
o Equipment independence

Web 2.0: Markets are Conversations
• Cluetrain Manifesto – a revolutionary way of thinking
about the Web
o Understanding not only how people behave, but also the way
they think about things.
o Transforms Markets to Conversations where successful
companies will learn to engage customers instead of
traditional unidirectional or broadcast communications.

Web 2.0: The Power of the Groundswell
• Groundswell:
o “a spontaneous movement of people using online tools to connect, take
charge of their own experience and get what they need  information,
support, ideas, products, and bargaining power  from each other”). Li
and Bernoff (2008).
• Business Priorities to Leverage the Groundswell:
o Listening
o Talking
o Energizing
o Supporting
o Embracing

Web 2.0—The Social Web Review
1. How has Web 2.0 changed the behavior of Internet users?
2. What are the basic tools or applications that characterize
Web 2.0?
3. Why is Web 2.0 referred to as the social Web?
4. What are some of the benefits or advantages that Web
developers gain from using AJAX technologies?
5. What are some of the most important messages for
business organizations in the Cluetrain Manifesto?
6. What is feature convergence? Give some examples of this
trend with regard to social media apps.

Social Networking Services and Communities:
Old Web vs New Web
• Originally, online or virtual communities paralleled physical
communities, but were primarily user-to-user interactions.
• Usenet and Newsgroups provided a static means of
communicating messages.
• Online communities have transformed to include:
o The Blogosphere (all blogs on the web)
o Sharing views and comments on videos (YouTube)
o Sharing opinions on products and services (Epinions)
o Online knowledge base (Wikipedia)
o Exchanging short, 140 character message (Twitter)
o Large SNS sites like Facebook and LinkedIn

Social Media Usage
Figure 7.2 Data collected in 2016 illustrate that people spend more time on
Facebook than any other social networking site. One of the newest social
platforms, Snapchat, is already in second place across age groups, although
younger people spend almost three times longer on the service than older people.

Social Network Analysis (SNA)
• The mapping and measuring of relationships and flows
between people, groups, organizations, computers, or
other information or knowledge-processing entities.
• Social graph: to the global social network reflecting how
we are all connected to one another through relationships.
• Giant global graph: illustrates the connections between
people and/or documents and pages online.
• Connecting all points on the giant global graph is the
ultimate goal for creators of the semantic web.

The Power of the Crowd (1 of 2)
• Leveraging the Power of the Crowd
o Crowdsourcing: a model of problem solving and idea generation
that marshals the collective talents of a large group of people.
• Categories of Crowdsourcing Sites:
o R&D
o Marketing, Design & Ideas
o Product Ideas
o HR & Freelance Work
o Crowdfunding
o Peer to Peer

The Power of the Crowd (2 of 2)
• Leveraging the Power of the Crowd
o Crowdfunding: turning to a crowdsourcing model to raise
money for business start-ups or projects such as Kickstarter
and GoFundMe.
• Categories of Crowdfunding:
o Donations
o Rewards
o Credit
o Equity
o Royalties

Social Networking Services: Facebook
Facebook Statistics
Social Networking Services: Differentiation
• While SNS sites share some common features, they are
not all alike. As the category matures, sites are
differentiating themselves in a variety of ways:
o Target age group
o Geographic location of users
o Language
o Area of interest; for example, music, photography, gaming,
travel
o Social vs. professional networking
o Interface; for example, profile page, microblog, virtual world,
emphasis on graphic vs. text content

Social Networking Services: Facebook Dominates
• Newsfeed: constant stream of status updates, now
contains sponsored ads.
• Timeline: shows progression chronologically.
• Additional controls added as response to a rise in
privacy concerns.
• Global expansion
• IPO in 2012

Social Networking Services: Facebook
Initiatives
• Open Graph
o Goal: to connect all the different relationships that exist on
the Internet by linking websites to Facebook.
o Programmers at external websites encouraged to include a
Facebook “Like” button on their websites.
• Social Logins
o Facebook also encourages other websites to allow people to
use their Facebook username and password to sign in or
create accounts.

Social Networking Services: Google+
• Google+ (G+) performance hard to estimate
o 2.5 billion accounts (includes all Gmail users)
o More like 4-6 million active users who engage, interact, and post
publicly
• Rivalry with Facebook?
o Not meeting early expectations
o Second place position
• Continuing improvements
o Hidden value in all those billions of profiles
o Still updating and maintaining presence

Social Networking Services: Snapchat
• Snapchat – the newcomer
o Founded in 2011 as a mobile-only service
o Rapidly rising to challenge Facebook among digital natives
• Features
o Fun messaging app that emphasizes communication through
pictures and videos instead of the text based messages
o Picture and video messages self-destruct within 10 seconds after
being viewed
• In 2017, the daily user base has grown to more than 160
million people sharing 2.5 billion snaps a day

Social Networking Services:
Virtual Reality
• Second Life
o Second Life is a social network that uses avatars to represent
their residents (users). Users can develop their own apps.
o Avatars are an icon, figure, or visual representation of a
person in a digital environment.
o Recently released an upgraded virtual reality space called
“Sansar” that takes advantage of new technology like the
Oculus Rift, a virtual reality (VR) headset that creates an
immersive experience for users.
o Facebook invested close to $2 billion to acquire Oculus.

Social Networking Services: Private
• Social communities with restricted membership used by
many colleges and universities.
• Easier to monitor activities and track conversations.
• Requires considerably more time, attention, and
resources than using general SNS.

Social Networking Services and
Communities
1. What are the major differences between social networking services and older
online communities?
2. What is the basic difference between the social graph and Berners-Lee’s
concept of the Giant Global Graph?
3. Explain Facebook’s Open Graph initiative and how it plans to expand its
influence across the World Wide Web.
4. What are some potential ways that business organizations can take advantage
of Second Life’s unique virtual world interface?
5. Why would a business want to create a private SNS? What are some of the
challenges associated with doing this?

Engaging Consumers with Blogs and
Microblogs
• Blogs
o Websites where people regularly post a variety of content in
various digital formats.
o Blogs can establish reputations and promote business
interests and/or share viewpoints.
o Blogosphere is a network of blogs.
o Microblogs are frequent, but brief posts containing text,
pictures, or video, Twitter and Tumblr are popular
microblogging apps.

Microblogs: Blogging Platforms
• Software application used to create and edit content
with features that make blogging relatively easy.
• WordPress (51%) and Blogger (21%) are the most
popular blogging platforms.

Microblogs: Twitter
• Has increased in popularity to become one of the world’s largest
communication platforms.
• A valuable tool for activists engaged in hashtag activism, or
organizing protests, debating political viewpoints, and
broadcasting real-time information through tweets.
• Has become a primary channel for real-time updates on events
and issues in politics, entertainment, social causes and sports.
• Uses content tags called Hashtags (#) to allow users to follow
conversations and/or trends in the Twittersphere (universe of
Twitter users).

Microblogs: Twitter for Business
• Growing Use of Twitter
o Over 65% of businesses now use Twitter for market
communications
o Companies spending $3 billion a year on promoted tweets
o Celebrities, companies, products, and services.
o Coupons and specials.
o News and political platforms.
o Friendly status updates.

Microblogs: Tumblr
• Another update services providing microblogging with emphasis
on photographs and video.
• Allows just as much text as a regular blog, but Tumblr is mostly
used for fashion, entertainment, and the arts.
• More visually compelling than Twitter.

Microblogs Review
1. What is the difference between a blog and a microblog?
2. What is a blogging platform?
3. Why do marketers use blogs and microblogs?
4. What makes Twitter a more attractive communication
channel than traditional media for many individuals and
organizations?
5. How is Tumblr different from other types of blogging
platforms?

Mashups, Social Metrics, and Monitoring
Tools: Mashups
• Web applications that combine information from two or more
sources.
• Present information in a way that creates some new benefit or
service.
• A common use is to integrate map data with information like
store names, locations, phone numbers.
• Popular APIs are from social media sites (user-generated social
information).
• No longer a closed, proprietary environment.

Tools: RSS
• RSS (really simple syndication)
o Allows users to subscribe to multiple sources (e.g., blogs,
news headlines, social media feeds, videos and podcasts) and
have the content displayed in a single application, called an
“RSS reader”.
o Provides for real-time consumption and personalized
organization and display of news information.
o Mostly free service (Feedly.com, Digg.com)

Mashups, Social Metrics, and Monitoring Tools: Services
• Monitoring Service
o Conversation tracking on social media sites
• Paid services: Social Studio, Oracle Social Cloud
• Free services: Twitter Search, Social Mention
o Provides organizations a better understanding of brand, product, and even executive
perception from consumers.
o Brand advocates positively portray a brand or company online.

Tools: Social Mention
• SocialMention.com
o Free monitoring service
o Aggregates content from over 80 social media sites including
Facebook
o Can generate metrics daily and track over time:
• Strength – likelihood topic is being discussed
• Passion – degree to which people are discussing it
• Sentiment – tone of the conversation
• Reach – range of influence

Tools Review
1. Why are mashups considered part of social media?
2. Describe a typical consumer mashup.
3. What is an RSS reader?
4. Describe the ways in which businesses can benefit from
using social media monitoring tools?
5. Explain the difference between the Strength metric and
the Sentiment metric reported by Socialmention.com.

Workforce Collaboration and Knowledge
Sharing Tools (1 of 2)
• Tools for Meetings and Discussion
o Dialogue or Synchronous Communication is important part of
the collaborative process
o Tools now commonly used to aid collaboration
• Video calls between 2 or 3 people: Skype, GoToMeeting
• Video conferencing platforms for up to 10 participants:
Google+ Hangouts

Sharing Tools (2 of 2)
• Social Tools for Information Retrieval and Knowledge
Sharing
o Discussion Groups: provide a forum for asking questions to
groups of people (AMA, LinkedIn)
o Q&A websites (Quora, Reddit, StackExchange)
o Social Search Tools: identify and share information relevant to
a project topic (Facebook, YouTube)

Sharing: Social Bookmarks
• Diigo and Delicious
• Diigo provides approval buttons and highlight features
for member collaboration.
• Delicious uses folksonomy to provide content search
results based on human tags or interests.

Sharing: Content
• Content Creation and Sharing
o Cloud storage services: uses the Internet for storage and
retrieval of information.
o Dropbox allows the storage and sharing of files and folders
with others.
o Box.net places greater emphasis on social tools and features
for collaboration.
o Wikis provide encyclopedia-like webpages, driven by
collaborative open-edit content.

Sharing Review
1. How can working teams use social media as an alternative to face-to-
face meetings?
2. Why are social bookmarking services superior to the traditional
method of saving “favorites” or “bookmarks” in a browser?
3. What are some ways you can use social media to solicit knowledge,
information, and advice from experts on the Web?
4. What advantages do sites like Dropbox and box.net have over e-mail as
a way of sharing and collaborating on creating documents?
5. Why are search results generated on a social bookmarking site likely to
be different from search results from Google or Bing?

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Eleventh Edition
Chapter 8
Retail, E-Commerce, and Mobile Commerce

Technology
Retailing Technology: Consumer Demands
• Keeping Up With Consumer Demands and Behavior

o A dizzying array of new technologies are exciting and
unproven.
o Adoption is vital, but budgets are limited.
o Consumers are demanding, price-conscious, and easily
swayed by competitors.
o Overly aggressive marketing leads to financial ruin, but risk
aversion loses out to competition.

Retailing Technology: Consumer Behavior (1 of 3)
• Trends and Changing Behavior

o Empowered Price Sensitivity: using the latest technology to
find the lowest price available.
o Nonlinear Search and Influence Patterns: consumers pursue
path through a range of new communications channels
including social media, mobile ads, e-mail, search marketing,
and other digital communications.
o Channel Hopping: increased communication channels through
which consumers can now purchase products (traditional
retailers, online, and via mobile devices and apps) called social
commerce.

• Consumer Demands and Behavior

o Digital Immigrants: older consumers that fundamentally view
retail channels as separate and distinct.
o Digital Natives: first digital generation surrounded by digital
devices and Internet connectivity.
o Digital Dependents: emerging generation growing up in a
world of broadband connections, constant connectivity that
place greater demands on retailers to use technology.

• Need for Convenience

o Economic and social factors lead to more stressful lives.
o Consumers look for products and shopping channels that
reduce the impact on time and financial resources.
o An increasing demand to satisfy immediate gratification and
desirable goods and services.

The Omni-Channel Retailing Concept
Figure 8.3 Retail strategy is evolving toward an omni-channel approach

(adapted from National Retail Federation, 2011).
Retailing Technology
1. Describe the factors that influence consumer shopping
behavior today.
2. What does the concept of digital native, digital
immigrant, and digital dependent help us to understand
about people’s use of technology during shopping
activities?
3. Why are retailers likely to view technology as both a
blessing and a curse?
4. Describe how an omni-channel retailer is likely to be
different from a traditional, single-channel retailer?

Business to Consumer (B2C) E-commerce
• Purchasing Online
o The most well-known B2C site is Amazon.com, whose IT
developments received U.S. patents that keep it ahead of
competition.
o Broader selection, lower prices, and easy searching and ordering
are featured through e-commerce.
o Electronic Wallet (e-wallet ): a software application that can store
encrypted information about a user’s credit cards, bank accounts,
and other information necessary to complete electronic
transactions.

Business to Consumer (B2C) E-commerce:
Amazon Model
• Amazon
o Invested hundreds of millions of dollars in warehouses
designed for shipping small packages to hundreds of
thousands of customers.
o Designed One-Click shopping, highlighted by the e-wallet,
allowing order status viewing and order fulfillment
modifications.
o Numerous patentable e-commerce designs provide continued
competitive advantage.

Online Banking
• Online Services
o Electronic fund transfer (EFT): transfer of funds from one bank
account to another over a computerized network.
o Transaction cost reduction is significant: banks pay $.02 for
online versus $1.07 at a physical branch.
o Investment options and loan rates online easily undercut
those of many brick-and-mortar (conventional) banks.

Recruiting
• Employment
o Job openings, résumés, and applications can be
transmitted or completed 24/7, 365.
o Job seekers use social media network contacts
(LinkedIn).
o Over 95% of employers use LinkedIn to identify
prospective candidates.
o Online reputation of both job seeker and employer
can be researched and/or built.

Business to Consumer (B2C) E-commerce: Retailing Issues
(1 of 3)
• Resolving Channel Conflict

o When regular wholesalers (on-ground) and retailers (on-line)
circumvent direct online distributors.
o May limit B2C efforts not to sell directly.
o May force collaboration with existing distributors.
• Conflicts within click-and-mortar organizations
o Online sales may impact offline operations
o Companies may separate online from traditional divisions,
but this may increase expenses and reduce synergies.

(2 of 3)
• Managing Order Fulfillment and Logistics

o Online sales force the need to design systems to accept and process huge
volumes of small orders, physical delivery including labeling.
o Reverse Logistics is the return process.
• Viability and Risk of Online Retailers
o The dot.com era bankrupted many pure online retailers due to cash flow,
customer acquisition, order fulfillment, and demand forecasting problems.
o Low entry barriers intensify competition!
• How long to operate while losing money?
• How to finance operating losses?

(3 of 3)
• Identifying Appropriate Revenue Models

o Early dot.com model:
• Generate enough revenue from advertising to keep the
business afloat until customer base critical mass is reached.
• Too few dotcoms were competing for too few advertising
dollars
• Advertising went to a select group of sites (AOL, MSN, or
Yahoo)

Business to Consumer (B2C) E-commerce: Planning
• Online Business and Marketing Planning

o Build the marketing plan around the customer, rather than on
products.
o Monitor progress toward the one-year vision for the business
in order to identify when adjustments are needed, and then
be agile enough to respond.
o Identify all key assumptions in the marketing plan. When
there is evidence that those assumptions are wrong, identify
the new assumptions and adjust the plan.
o Make data-driven, fact-based plans.

Business to Consumer (B2C) E-commerce
Review
1. Describe how digital content and services can lead to
significantly lower costs.
2. Why does channel conflict sometimes occur when companies
sell their products through both traditional and online channels?
3. How has Amazon maintained its competitive edge?
4. Describe some of the ways that Ally Bank has become one of the
most successful direct banks in the industry today.
5. Explain why retail banking has become one of the least trusted
industries by consumers since the early 2000s.
6. List three online marketing planning recommendations.

Business to Business (B2B) E-commerce and E-
procurement
• Business-to-business (B2B) Markets
o The buyers, sellers, and transactions involve only organizations
o B2B comprises about 85 percent of e-commerce dollar volume
o Enterprise forms electronic relationships with distributors,
resellers, suppliers, customers, and other partners
• Business models for B2B applications:
o Sell-side marketplaces
o E-sourcing (the buy-side marketplace)

Business to Business (B2B): Sell-side Marketplaces
• Sell-Side Marketplaces
o Where organizations sell their products or services to other
organizations from their own private website or from a third-party
site.
o Creates greater competition for sellers (a buyer advantage)
o Similar to B2C model, but the ‘C‘ is an organization.
• Amazon Business
• Alibaba wholesaling Chinese products
• Dell Computer auctions through eBay
• Overstock.com for obsolete of excess assets

Business to Business (B2B): E-sourcing
• Different procurement methods that make use of an
electronic venue for identifying, evaluating, selecting,
negotiating, and collaborating with suppliers.
• Primary methods include: Online auctions, Request for
Quotes (RFQ) processing, and private exchanges.
• Secondary activities include: trading partner
collaboration, contract negotiation, and supplier
selection.

Business to Business (B2B): E-procurement
• Corporate procurement (corporate purchasing):
transactional elements of buying products and services
for operational and functional needs.
• Direct procurement: buying materials to produce
finished goods.
• Indirect procurement: buying materials for daily
operations.
• E-procurement: reengineered procurement using e-
business technologies and strategies.

Business to Business (B2B): E-procurement
Goals
• Control Costs & Simplify Processes (streamlining)
o Streamline within an organization’s value chain.
o Align the organization’s procurement process with
those of other trading partners, which belong to the
organization’s virtual supply chain.
o Analyze spending patterns in an effort to improve
spending decisions and outcomes.

Business to Business (B2B): Electronic Data
Interchange (EDI)
• Public and Private Exchanges
o Vertical exchanges serve one industry along the
entire supply chain (automotive, chemical,
manufacturing, etc.).
o Horizontal exchanges serve many industries using the
same products or services (office supplies, cleaning
materials, bearings, etc.). Also called Maintenance,
Repair, and Operations (MRO) supplies.

Business to Business (B2B) E-commerce and
E-procurement Review
1. Briefly differentiate between the sell-side
marketplace and e-sourcing.
2. What are the two basic goals of e-procurement?
How can those goals be met?
3. What is the role of exchanges in B2B?
4. Explain why maverick buying might take place
and its impact on procurement costs.

Mobile Commerce
• Mobile Commerce, or M-Commerce:
o The buying or selling of goods and services using a wireless,
handheld device such as a cell phone or tablet (slate)
computer.
• Mobile E-Commerce
o The use of a wireless handheld devices to order and/or pay for
goods and services from online vendors.

Mobile Commerce: Retailing & Marketing
• Mobile Retailing
o The use of mobile technology to promote, enhance, and add
to value to the in-store shopping experience.
• Mobile Marketing
o A variety of activities used by organizations to engage,
communicate, and interact over Wi-Fi and
telecommunications networks with consumers using wireless,
handheld devices.

Mobile Commerce: Competitive Advantage
• M-commerce provides competitive advantage
• In-Store Tracking
o Tracking a customer’s movement through a retail
store through mobile technology to optimize
shopping experiences.
• Quick Response (QR) Codes
o Customers scan the QR code containing a link to
an Internet webpage.
o Easier alternative to typing a URL address into a
mobile browser.

Mobile Entertainment Expanding
• Most notable are music, movies, videos, games, adult
entertainment, sports, and gambling apps.
• Apps can track sporting news, record workout times, record
heart rates, analyze a person’s golf swing.
• The iTunes Store, Google, and Amazon continue to be leading
distributors of digital music, movies, TV shows, e-books, and
podcasts.
• Mobile device improvements are predicted to increase video
clips, movie, and television use on/through mobile devices
toward $20 billion.

Mobile Travel Services
• Mobile Payment Systems
o In 2016, 38.4 million Americans will have
used a mobile phone to purchase goods or
services at least once in the last six months
o Proximity mobile payments, based on RFID
technology, will increase to $314 billion by
2020
• Mobile Phone used for:
o Online shopping or
o Payment for traditional purchases

Mobile Social Networking
• Facebook added mobile access in recent years to stay
competitive.
• Snapchat is completely app-based.
• Occurs in virtual communities, offering users to access
their accounts from a smartphone or other mobile
device.
• Primary driver of growth in the mobile app industry.

Mobile Commerce App Features
• Location-Based Marketing
o Advertising using mobile GPS systems to determine user
locations.
o Structured as mobile social media games to elicit consumer
information and ratings for special attention or discounts from
retailers.
• Augmented Reality (AR)
o Apps that utilize a special technology to create computer-
generated graphic superimposed images based on where/how
a user points their phone or camera.

Mobile Search
• Almost 60% of all Internet searches are conducted from
a mobile device
• Over half of all web traffic comes from mobile devices
• As a result, Google and other Internet search engines
now use the performance of a company’s mobile
website as part of the criteria for ranking listing in
search results
SEO specialists must now focus on a set of new factors for

optimizing websites for mobile search.
Mobile Commerce Review
1. Describe some of the ways that people are using mobile devices
to shop for products and services.
2. What are some ways in which traditional brick-and-mortar
retailers can use mobile technology to enhance a customer’s in-
store shopping experience?
3. List the types of mobile entertainment available to consumers.
4. List some ways that travelers and travel-related businesses are
using mobile technology.
5. How are companies using QR codes to promote products and
services to mobile consumers? Why are QR codes not as popular
in the U.S. as they are in Asia and other parts of the world?
6. Explain why the mobile gaming market represents such a
lucrative market opportunity.
Mobile Transactions and Financial Services
• Hotel Services and Travel
o Airline QR boarding passes and SMS flight
updates
o Google Maps widely used for automobile
navigation
o Travel planning with roadside assistance, Wi-
Fi hotspots, and recommendations
o Hotel guest reservations, bill checking, and
local services

Mobile Payment Systems (1 of 2)
• Charge to Phone Bill with SMS Confirmation
o Uses secure PIN through SMS to validate payment (like
Zong.com).
• Augmented Reality (AR)
o Apps that utilize a special technology to create computer-
generated graphic superimposed images based on where/how
a user points their phone or camera.

Mobile Payment Systems (2 of 2)
• Transfer of Funds from Payment Account Using SMS
o Phone sends SMS to transfer payment through third party (Obopay.com,
PayPal.com)
• Mobile Phone Card Reader
o Phone attached device allows credit card swipe (Square.com,
Paypal.com)
• Micropayments
o Transactions involving small sums of money (vending machines, parking
meters)
• Mobile Bill Payments
o Payments made directly from cell phone (Western Union, Citibank, HDFC
Bank in India)

Mobile Banking Services
• Natural extension of online banking
• Uses combination of mobile media channels
o (SMS, mobile Web browsers, customized apps)
• Common services include account alerts, balance
information, branch location, bill pay, funds transfers and
verification
• Mobile banking benefits seem to outweigh potential
security threats.
• Increasing mobile banking likely means increased targeting
of mobile financial activities.

Mobile Banking Security Risks
Cloning Duplicating the electronic serial number (ESM) of one phone and using it in
second phone, the clone. This allows the perpetrator to have calls and other transactions
billed to the original phone.
Phishing Using a fraudulent communication, such as an e-mail, to trick the receiver into
divulging critical information such as account numbers, passwords, or other identifying
information.
Smishing Similar to phishing, but the fraudulent communication comes in the form of an
SMS message.
Vishing Again, similar to phishing, but the fraudulent communication comes in the form
of a voice or voicemail message encouraging the victim to divulge secure information.
Lost or stolen phone Lost or stolen cell phones can be used to conduct financial
transactions without the owner’s permission.

Mobile Transactions and Financial Services
Review
1. What are the two basic technologies used for mobile banking and
financial services?
2. Why have e-wallets not been widely adopted and what will makers of e-
wallets need to do to make this payment method more attractive to
consumers?
3. What are the most common types of mobile banking activities
consumers perform?
4. What are the most common security risks associated with mobile
banking?
5. Describe some of the mobile payment systems currently available to
merchants and consumers.
6. What is a micropayment and why is it beneficial to consumers and
businesses that mobile payment systems can process these types of
transactions?
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Eleventh Edition
Chapter 14
Ethics, Privacy, and Sustainability

IT Ethics
• Predicting People’s Behavior
o Predicting people’s behavior is big business, but companies
may face backlash from customers or be subject to
investigations or fines.
• Mobile Apps and Risky Behaviors
o 93% top 200 free iOS & Andriod apps exhibited at least one
risky behavior.
o Apple policy prohibits user information gathering without
permission, but countless 3rd party apps are unregulated.

Mobile Apps and Risky Behavior
• Risky Behaviors
1. Location tracking
2. Accessing the device’s address book or contact list
3. Identifying user or phone unique identifier (UDID)
4. Recording in-app purchases
5. Sharing data with ad networks and analytics companies
Twitter, Foursquare, and Instagram routinely gather

information from personal address books and other
places on your phone.

Google Street View
Risky Behavior
Wardriving
• Driving around sniffing out and mapping the physical location of the world’s Wi-Fi
routers (see Wi-Spy).
Open Wi-Fi Networks
• Non-password protected routers that provide access over wireless networks.
• The FCC posted, “…collecting information sent over Wi-Fi networks clearly infringes
on consumer privacy.”

Additive Manufacturing Dilemmas
• 3D Printing
o Depositing tiny layers of material to create computer-assisted
design and/or computer-assisted manufacturing blueprints.
• Bioprinting
o Using DNA to 3D print human body parts using bioprinting
technology.

IT Ethics
1. By avoiding illegal conduct, do companies also act responsibly?
Explain your Answer
2. What types of companies can benefit from predicting people’s
behavior?
3. When is predicting people’s behavior a violation of privacy? Give
an example.
4. When is predicting people’s behavior not a violation of privacy?
Give an example.
5. What are the ethical challenges attached to 3D printing and 3D
bioprinting?
6. Research the current debate about 3D printing and bioprinting.

Privacy and Civil Rights
• Privacy
o Right, or freedom of choice and control to self-determine what
information about you is made accessible, to whom, when, and
for what use or purpose.
• Breach of Privacy
o Unauthorized disclosure of personal information.
• Privacy Paradox
o Phenomenon where social users are concerned about privacy but
their behaviors contradict these concerns to an extreme degree.

Figure 14.2: Major Data Breaches Reported by 1,040 Adult Americans in
2016 Pew Research Privacy and Security Study
Privacy Paradox: Social Recruitment
• Social Recruitment
o Use of social media to engage, share knowledge among, and
recruit and hire employees.
o Often involving information the candidate did not want
considered (or is illegal) to use in the hiring process.
o Typical recruitment includes all job levels:

Social Recruitment: Best Practices
• Best practice provisions for recruiters:
o Have either a third party or a designated person within the
company who does not make hiring decisions do the background
check.
o Use only publicly available information. Do not friend someone to
get access to private information.
o Do not request username or passwords for social media accounts.
• Recruiters are also social stalkers!

Civil Rights: Protected Classes
• Civil Rights
o Rights protected by federal law, such as freedom of speech,
press, and assembly; the right to vote, etc.
• EEOC (Equal Employment Opportunity Commission)
o Enforces federal laws prohibiting discrimination in
employment.
• Protected classes
o Characteristics identified by law that cannot be used in the
hiring process.

Civil Rights: Discrimination
• Discrimination
o Biased or prejudicial treatment in recruitment, hiring, or employment
based on certain characteristics, such as age, gender, and genetic
information, and is illegal in the United States.
• Corporate Social Media Discrimination
o The use of protected class information to weed out candidates.
• Social Media Discrimination
o Visiting a person’s social media sites, however, clearly creates the
opportunity to view large amounts of information going against these
nondiscriminatory practices.

Civil Rights: Negligent Hiring
• Competing Legal Concerns
o Two competing legal concerns are discrimination & negligent
hiring.
• Negligent Hiring
o If a workplace violence incident occurred and the attacker’s
public social networking profile contained information that
could have predicted that behavior, the employer may be held
liable for negligence in not using readily available information
during the hiring decision.

Reducing Risk of Negligent Hiring
1. Ask candidates to sign a disclosure statement
• Allow self-disclosure
2. Create a standard process and document it
• Consistent well-documented processes
3. Avoid coercive practices
• Eliminate recruiter pressure for applicant disclosure
4. Training
• Emphasize related compliance

Privacy Paradox, Privacy, and Civil Rights
1. Describe privacy.
2. What is the phenomenon where social users are concerned
about privacy but their behaviors contradict these concerns?
3. What is the use of social media to find, screen, and select job
candidates?
4. Rejecting a job candidate because of concerns about the
person’s health from information on his or her Facebook page is
an example of what?
5. Age, disability, gender, religion, and race are examples of what?
6. Why are the legal concepts of discrimination and negligent hiring
competing demands on a business?

Technology Addictions: Cognitive Overload
• Cognitive Overload
o Interferes with our ability to focus and be productive.
o Potential modern causes:
• Mobile apps
• Wearable technology
• Constant updates
• Desire to stay connected
o 50% of American teens suffer from Fear Of Missing Out (FOMO)

Focus Management
• Being Able to Focus Counts
o An inability to concentrate for longer periods reduces an
ability to distinguish important information from trivia.
o Some researchers estimate that distraction costs hundreds of
billions of dollars a year in lost productivity.
o Heavy online users (media high multitaskers) scored poorly on
cognitive tests.

Focus Recovery
• Lost focus can take about 25 minutes recovery time.
• Noradrenaline, a chemical that helps us concentrate, is
released by focusing.
• The best strategy to improve focus: practice doing it.
• There is disagreement if multitaskers are working as
well as they could, or they could improve their focus.

Technology Addictions and Focus Management
1. What are several potential causes of cognitive
overload?
2. What are the consequences of constant distractions?
3. When a person is distracted, how long does it take to
return to the task at hand and get focused again?
4. Why are senior managers interested in focus
management?
5. What is the difference between the performance of
high and low multitaskers on cognitive tests?
6. How can multitaskers improve their ability to focus?

ICT and Sustainable Development
• Being profit-motivated
without concern for damage
to the environment is
unacceptable.
• Companies should conduct
themselves in an ethical,
socially responsible, and
environmentally sustainable
manner.
• The IT industry sector is
called the Information and
Communications Technology,
or ICT, in emissions reports.

IT and Global Warming
• Global warming refers
to the upward trend in
Global Mean
Temperature (GMT).
• This is driven by the
greenhouse effect,
which is the holding of
heat within the earth’s
atmosphere.
• Carbon emissions
directly contribute to
the greenhouse effect.

Global Warming IT Sector Actions
• McKinsey & Company conclude the following:
o IT sector’s own footprint of 2 percent of global emissions
could double by 2020 because of increased use of tablets,
smartphones, apps, and services.
o IT sector must continue to reduce emissions from data
centers, telecom networks, and the manufacture and use of
its products.
o IT has the unique ability to monitor and maximize energy
efficiency both within and outside of its own industry sector
to cut CO2 emissions by up to 5 times this amount.

Sustainability Through Climate Change Mitigation
• Every IT user, enterprise, and nation plays a role in climate

change mitigation.
• Wired and mobile networks enable limitless data creation
and consumption
• Energy used to power data centers, cell towers, base
stations, and recharge devices is damaging the
environment and depleting natural resources.
• Innovative sustainability initiatives hold the key to curbing
these emissions and carbon footprint, thereby reducing
environmental impact.

Technology to Transform Business and Society
• People hold the power to shape and apply technology
to create positive change, improve lives and transform
business and society.
• Accenture’s Technology Vision 2017 is an analysis of
key IT trends that are expected to disrupt business and
society over the next three years.
• According to Vision 2017, taking a people first approach
by empowering people with more human technology
will allow organizations to improve performance by
redefining their relationship with customers and
employees from provider to partner.
Top Five Disruptive Technologies 2015-2017
Vision 2015 Vision 2016 Vision 2017
Internet of Me Intelligent Automation Artificial Intelligence as the
new User Interface
Outcome Economy Liquid Workforce Design for Humans
Platform Evoluation Platform Economy Ecosystems as Macrocosms
Intelligent Enterprise Predictable Disruption Workforce Marketplace
Workplace Reimagined Digital Trust The Uncharted

Top Five Disruptive Technologies (1 of 2)
• AI is the new UI
o AI is becoming the new user interface (UI), underpinning the
way we transact and interact with systems.
o AI will revolutionize the way businesses gain information
from and interact with customers.
• Design for Humans
o Technology design decisions are being made by humans, for
humans.
o Organizations need to understand not only where people are
today, but also where they want to be.

Top Five Disruptive Technologies (2 of 2)
• Ecosystems as Macrocosms.
o Digital ecosystems are transforming the way organizations deliver
value.
• Workforce Marketplace.
o Companies are dissolving traditional hierarchies and replacing
them with talent marketplaces of independent freelance workers.
• The Uncharted.
o Businesses must delve into uncharted territory, seizing
opportunities to establish rules and standards for entirely new
industries.

The Next Wave of Disruption
• Next…More Disruptive Disruption
o High-performing business leaders now accept that their
organizations’ future success is tied to their ability to keep
pace with technology.
o Technology is more important than ever to their business
success.
o Biggest IT innovations will not be in the technology tools
themselves, but in how they are designed with people in
mind.
o A people first approach is the key to any organization’s digital
success.

ICT and Sustainable Development
1. Why do some experts warn that carbon emission reductions between 50
percent and 85 percent are necessary by 2050?
2. What contributes to the rise of global mean temperature?
3. What is the greenhouse effect?
4. How does the use of mobile devices contribute to the level of
greenhouse gases?
5. What is ICT’s role in global warming?
6. Why is global warming hotly debated?
7. What is the role of IT in sustainable development?
8. Why is it important for organizations to take a people first approach to IT?

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IT for Management: On-Demand Strategies for Performance,

Growth, and Sustainability

Web 2.0 and Social Technology

• The Constantly Changing Web

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• The Constantly Changing Web

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Web 1.0—The Early Web Web 2.0—The Social Web

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Both YouTube and Facebook started as SNSs, but now span

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Retail, E-Commerce, and Mobile Commerce

• Keeping Up With Consumer Demands and Behavior

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• Trends and Changing Behavior

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• Consumer Demands and Behavior

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• Need for Convenience

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Figure 8.3 Retail strategy is evolving toward an omni-channel approach

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