Download U-commerce : extending the boundaries of business

U-Commerce
Broadening the universe of
marketing
Richard T. Watson
Leyland F. Pitt
Pierre Berthon
George M. Zinkhan
[email protected]
Expanding the vision
Expanding the vision
Parallel revolutions
• Physics
– Newtonian to special theory of relativity
• Art
– Realism to modern art
Raphael: School of Athens
Picasso: Ma Jolie
Parallel revolutions
• Einstein and the Cubists proposed
alternative concepts of space
– Space interacts with the volume, shape,
and size of objects
– Space and time can be fractured into visual
elements
U-commerce
• An alternative view of time and space
for business and marketing
• Commerce has been flattened to two
dimensions
• Multiple connections are being reduced
to a single point
A foundation in light
• Physics
– Speed of light in a vacuum is constant
– E = mc2
• Art
– Innovations in recording light
• Commerce
– Using light to communicate
Types of Commerce
Type of commerce
Foundation
Commerce
Transportation
network
E-commerce
Internet
M-commerce
Cell phone network
U-commerce
Ubiquitous networks
Types of commerce
ABCD
EFGHIJKLMNOPQRSTUVWXYZ
Key forces
• Bounded rationality
• Attention deficit society
Bounded rationality
• Consumers are capable of a wide variety
of reasoning errors when making
decisions
• Managers have difficulty in managing a
multitude of customers on a one-to-one
basis
Attention deficit society
• Consumers are increasingly bombarded with
more and more messages
– It is estimated that a single weekday issue of the
New York Times contains more information than
the average person in seventeenth-century
England came across in a lifetime
• Conscious attention is a scarce resource
• Some messages need to be attenuated and
others amplified
U-commerce
• The use of ubiquitous networks to support
personalized and uninterrupted
communications and transactions between a
firm and its various stakeholders to provide a
level of value over, above, and beyond traditional
commerce
• Über-commerce
Ubiquitous
• Networks everywhere
• All consumer durable devices are on a
network
• Intelligence and information are widely
dispersed and always accessible
• Smart entities
– Appliances
– Buildings
– Signs
• Street smart communities
Universal
– Devices work everywhere
• All networks
• All locations
• Always connected
– Universal access
Unique
• Information is customized
– To person
– To device
– To context
• Location
• Time
• Role
Unison
• Synchronization/replication of
designated files
• Transparent to owner
• Current data are always available
Network driven firm
• A directed collection of electronically
interacting stakeholders that coordinates
activities through the exchange of messages
over electronic networks
• Networks are a means of increasing
– efficiency (e.g., lowering transaction costs)
– effectiveness (e.g., adding value to customers)
• Applies concepts of object-orientation
The object-oriented firm
• Applies the computer science principles
of object orientation to creating a
business
• A new firm can be built from existing
firms
• Procedures are developed for
electronically exchanging messages
between firms via the Internet
Network pattern matching
OO strategy
NPM
6 employees
Replacements Ltd
700 employees
Minimal warehouse
Large warehouse
Evolution of markets
Market
Definition
Theme
Marketplace
Traditional
physical
marketplace
Exchange of goods and services via
face-to-face human interaction
Marketspace
Informational
marketplace
Exchange of goods and services via
computer interaction
U-space
Transcension
and integration
of marketplace
and
marketspace
The global integration of physical and
informational to provide value
through amplification, attenuation,
contextualization, and transcension
U-space
Amplification marketing
Ultra-conscious
(extends/enhances awareness)
Immersion
Transformation
marketing
marketing
The hyper-real
The post-human
Contextual marketing
Unique
Transcension marketing
Ubiquitous
(time-space specific)
(time-space independent)
The node
The network
Nodal
marketing
Matrix
marketing
Unconscious
(behind or out of conscious awareness)
Attenuation marketing
Hyper-real
• Ultra-conscious & unique
• Extraordinary experience
– Adventuring
– Entertainment
– Teleimmersion
• Immersion marketing
– Processes that enhance conscious interaction with
the phenomenal world in specific situations
Post-human
• Ultra-conscious & ubiquitous
• The network is always on
• Permanent enhancement of human facilities
– Information processing
• Cell phone/PDA
– Advanced prosthetics
– Genetic enhancement
• Body change
– Rhinoplasty
• Transformation marketing
– Processes that enhance conscious interaction with the
phenomenal world acontextually – that is transcending
specific time-space locations
Network
• Unconscious & ubiquitous
• Move tasks from conscious to unconscious
• Automated consumption
– Automated toll booths
– Smart cards
• Automatic background execution
– Price comparison bots
• Attention freeing
• Matrix marketing
– Universal, acontextual processes designed to
automatically perform tasks
Node
• Unconscious & unique
• Subscription services
• CRM tries to understand the customer so well
that offers easily capture attention
• Ultimate form of permission marketing
– Wine-of-the-month club
• Nodal marketing
– Processes that reduce the necessity of an
individual or collective to consciously interact with
phenomena in specific contexts
Model dynamics
B
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n
a
l
i
t
y
Amplification marketing
Ultra-conscious
(extends/enhances awareness)
Immersion
Transformation
marketing
marketing
The hyper-real
The post-human
Contextual marketing
Unique
Transcension marketing
Ubiquitous
(time-space specific)
(time-space independent)
The node
The network
Nodal
marketing
Matrix
marketing
Unconscious
(behind or out of conscious awareness)
Attenuation marketing
Competitive rationality
Types of marketing
Type of
marketing
Description
Amplification
Processes designed to extend or enhance conscious
interaction with phenomena
Attenuation
Processes designed to reduce the necessity to
consciously interact with phenomena
Contextual
Processes which are time-space specific and add
value through their specificity
Transcension
Processes that transcend, or enable transcension, of
the traditional constraints of time-space
Implications for marketing
•
•
•
•
Revalidate existing theories
Build new theories
New forms of marketing
Amplifying and attenuating
consciousness
Implications for MIS
•
•
•
•
Integrated customer database
Electronic communication links
Simple interfaces and high functionality
Automation of tasks to free attention
Conclusion
• Innovations in processing information are the
bedrock of cultural, social, political, and
economic change
• U-commerce is the final step in the evolution
of commerce
• It is part of the evolution in thinking about a
firm’s relationship with the customer
– From products to services
– From services to information
• Information is service
U-commerce
• The ultimate killer app
• It changes everything
Draft of article
Contact
[email protected]