Is it a good idea to encourage ALL employees to trade in these markets? Should insiders and/or highly uninformed people be allowed to trade? Do they help or hurt the market?
The entire notion behind GPM is one that is supposed to involve everyone; however, this fact should be taken into account when analyzing the results of marketplace predictions. If highly informed individuals are allowed to trade, then obviously they will play a role in establishing the probabilities of outcomes. However, in addition to the knowledgable individuals who have an effect, there will also be the uninformed individuals who will serve to offset that effect and "recenter" the marketplace predictions. Just as in any situation, the more information a person possesses regarding possible outcomes in any situation, then the more educated their prediction will be and probably will more closely represent the truth. As the number of individuals trade grows larger, the beneficial or detrimental effect those with "insider information" as well as those who are clueless ultimately levy on the trade market will lessen, and in turn a representation of the overall majority of traders' predictions will be presented. Therefore, the more employees and people who trade, the better in my opinion.
Thursday, April 23, 2009
Thursday, April 16, 2009
Threadless: Crowdsourcing and Online Communities
In what other industries or areas would Threadless’ community-driven product development model work well? And not so well?
Threadless' community-driven product product development model is a good idea, but it is one that needs to be carefully applied in order for a business to realize any sort of success as a result. The apparel industry is obviously an area where this type of model has a chance to prove successful as there exist a myriad of different styles and looks that appeal to wide-range of individuals with varying tastes. Other similar industries such as shoes, bags, hats, or other clothing accessories, or even other products in which the inventory costs are relatively low could also reap the benefits of allowing the community to vote on individual designs that are all applied to basically the type of "canvas". The key to keeping this approach a viable one is to allow the community to feel that their creativeness has a true outlet. For this reason, I do not believe the Threadless product development model would work for situations where a customizable "canvas" is not the basis of the product. I also do not think the individual contributors to Threadless' products would feel about them venturing into retail stores.
Threadless' community-driven product product development model is a good idea, but it is one that needs to be carefully applied in order for a business to realize any sort of success as a result. The apparel industry is obviously an area where this type of model has a chance to prove successful as there exist a myriad of different styles and looks that appeal to wide-range of individuals with varying tastes. Other similar industries such as shoes, bags, hats, or other clothing accessories, or even other products in which the inventory costs are relatively low could also reap the benefits of allowing the community to vote on individual designs that are all applied to basically the type of "canvas". The key to keeping this approach a viable one is to allow the community to feel that their creativeness has a true outlet. For this reason, I do not believe the Threadless product development model would work for situations where a customizable "canvas" is not the basis of the product. I also do not think the individual contributors to Threadless' products would feel about them venturing into retail stores.
Thursday, April 9, 2009
LinkedIn & Differences in Social Network Audiences
Online social networks have become ubiquitous in the past few years. What forms of value do users get from these services and who is most likely to sign up on LinkedIn versus other sites?
Individuals extract different types of value from various social networking sites such as MySpace, Facebook, and LinkedIn depending on what type of audience the networking site is geared toward. For instance, the person who actively manages their LinkedIn profile may do so for a completely different reason than the person who Saves the Rainforests one tree at time on Facebook. Moreover, the person who actively manages their MySpace profile may do so for a completely different reason as well. What are the differences and similarities between the social networking sites and how do individuals find different values based on the different sites?
LinkedIn's target audience is the individual who wants to connect socially for the purpose of extending their network in the business world perhaps to keep in contact with former coworkers or even to search out a new job. LinkedIn also has built in features that allow job recruiters to seek out potential hires who's experience and skillset may fit the needs of a position they are attempting to staff. The value that is offered via the LinkedIn site is greatly different that the value that is found in sites like MySpace and Facebook.
MySpace was originally a social networking site that was geared toward to fledgling bands who were looking for a medium to provide their music with the exposure they needed to hopefully make it big; however, it rapidly evolved into a site that was mainly used by individuals to build a network of friends, whether they were real friends or just cyber friends looking for someone else who had the same interests. I, for one, used MySpace to try to track down old schoolmates for my Ten Year High School Reunion. Without the site there were definitely some people who would not have been located.
Lastly, Facebook is now probably the most ubiquitous of all the social networking sites as the site's managers were forward-thinking enough to allow individuals to not only create a network of friends online, but also enable "techies" to build applications that interfaced with the Facebook backend. Facebook is somewhat similar to MySpace, but has taken the world of social networking to whole new level by not only giving the Abercrombie & Fitch wearing college student an online place to meet new friends and maintain existing relationships, but also a place for your mother and grandmother to find old pen pals.
Individuals extract different types of value from various social networking sites such as MySpace, Facebook, and LinkedIn depending on what type of audience the networking site is geared toward. For instance, the person who actively manages their LinkedIn profile may do so for a completely different reason than the person who Saves the Rainforests one tree at time on Facebook. Moreover, the person who actively manages their MySpace profile may do so for a completely different reason as well. What are the differences and similarities between the social networking sites and how do individuals find different values based on the different sites?
LinkedIn's target audience is the individual who wants to connect socially for the purpose of extending their network in the business world perhaps to keep in contact with former coworkers or even to search out a new job. LinkedIn also has built in features that allow job recruiters to seek out potential hires who's experience and skillset may fit the needs of a position they are attempting to staff. The value that is offered via the LinkedIn site is greatly different that the value that is found in sites like MySpace and Facebook.
MySpace was originally a social networking site that was geared toward to fledgling bands who were looking for a medium to provide their music with the exposure they needed to hopefully make it big; however, it rapidly evolved into a site that was mainly used by individuals to build a network of friends, whether they were real friends or just cyber friends looking for someone else who had the same interests. I, for one, used MySpace to try to track down old schoolmates for my Ten Year High School Reunion. Without the site there were definitely some people who would not have been located.
Lastly, Facebook is now probably the most ubiquitous of all the social networking sites as the site's managers were forward-thinking enough to allow individuals to not only create a network of friends online, but also enable "techies" to build applications that interfaced with the Facebook backend. Facebook is somewhat similar to MySpace, but has taken the world of social networking to whole new level by not only giving the Abercrombie & Fitch wearing college student an online place to meet new friends and maintain existing relationships, but also a place for your mother and grandmother to find old pen pals.
Thursday, April 2, 2009
Wikipedia: Built In Quality Control Process
How do Wikipedia’s processes for creating and modifying articles ever lead to high-quality results?
There is the risk that inaccurate and invalid information could be posted in Wikipedia articles for others to read; nevertheless, this risk is mitigated by the fact that there is very little incentive for individuals to post incorrect information as others will quickly correct it or remove it. The entire premise behind Wikipedia is to provide quality information in a timely manner while keeping the information free from inaccuracies. The fact that Wikipedia "archives" older versions of it's articles enables them to allow anyone to create and modify articles, while simultaneously reducing the amount of bad information available to the public. The quality control process in place behind Wikipedia is such that since everyone has privileges to create and modify articles, individual contributors public will police themselves in order to keep their own work reputable and preserves the integrity of Wikipedia.
There is the risk that inaccurate and invalid information could be posted in Wikipedia articles for others to read; nevertheless, this risk is mitigated by the fact that there is very little incentive for individuals to post incorrect information as others will quickly correct it or remove it. The entire premise behind Wikipedia is to provide quality information in a timely manner while keeping the information free from inaccuracies. The fact that Wikipedia "archives" older versions of it's articles enables them to allow anyone to create and modify articles, while simultaneously reducing the amount of bad information available to the public. The quality control process in place behind Wikipedia is such that since everyone has privileges to create and modify articles, individual contributors public will police themselves in order to keep their own work reputable and preserves the integrity of Wikipedia.
Thursday, March 26, 2009
Blogging @ DrKW: Good Idea or Bad Move?
What are the advantages and disadvantages of implementing internal versus external employee blogs in a corporate setting? Are there certain industries where one of these strategies makes more sense?
One of the biggest advantages of implementing an internal blogging capability in a corporate setting is that it empowers the employees and allows them to contribute their own thoughts and ideas about certain events occurring in their everyday lives on the job. These blogs could then be analyzed and gleaned by the ultimate decision-makers to ensure that the final decisions are in line with the overall company sentiment. In my opinion, implementing internal blogs can definitely be advantageous within certain industries such as IT and Consulting. Many firms who operate in these industries have thousands of workers; however, they are all dispersed and the full potential of the overall knowledge base that exists can never be tapped. Being that I am familiar with these industries the most, I know blogs could serve as an additional source of information that assists individuals who are need to determine the best solution to an issue by seeing how others inside the company addressed and handled similar dilemmas and situations. From an external point of view, if companies allow their blogs to be accessed by anyone who has access to the Internet, then it could also be a new mechanism of creating business and establishing relationships with individuals who may have never been reached.
However, there are some issues that could pose problems to corporations who wish to implement both internal and external blogging capabilities to their employees. For instance, a blog that leaks and reveals a company secret into cyberspace could ruin a company's competitive advantage. Also, a blog could provide a channel for an unhappy employee to post "bad press" about their own employer for all to see in an attempt to get revenge. This could damage the corporate image even though the sentiments are very slanted, and potentially may not even be truthful.
One of the biggest advantages of implementing an internal blogging capability in a corporate setting is that it empowers the employees and allows them to contribute their own thoughts and ideas about certain events occurring in their everyday lives on the job. These blogs could then be analyzed and gleaned by the ultimate decision-makers to ensure that the final decisions are in line with the overall company sentiment. In my opinion, implementing internal blogs can definitely be advantageous within certain industries such as IT and Consulting. Many firms who operate in these industries have thousands of workers; however, they are all dispersed and the full potential of the overall knowledge base that exists can never be tapped. Being that I am familiar with these industries the most, I know blogs could serve as an additional source of information that assists individuals who are need to determine the best solution to an issue by seeing how others inside the company addressed and handled similar dilemmas and situations. From an external point of view, if companies allow their blogs to be accessed by anyone who has access to the Internet, then it could also be a new mechanism of creating business and establishing relationships with individuals who may have never been reached.
However, there are some issues that could pose problems to corporations who wish to implement both internal and external blogging capabilities to their employees. For instance, a blog that leaks and reveals a company secret into cyberspace could ruin a company's competitive advantage. Also, a blog could provide a channel for an unhappy employee to post "bad press" about their own employer for all to see in an attempt to get revenge. This could damage the corporate image even though the sentiments are very slanted, and potentially may not even be truthful.
Thursday, February 26, 2009
Google: The Winner For Now
Is the Internet Search Engine industry a Winner-Take-All business?
Despite the market share that Google currently holds in the Internet Search Engine business, I do not believe it is accurate to say that the industry in which they are currently the dominant player is a Winner-Take-All (WTA) business. Currently, Google is crushing the competition in the Internet Search Engine business not solely due to their "algorithm-based" search capabilities, but also due to the fact they created a numerous other web-based products that allow Google users to access email via GMail, find places using Google Maps, and things of the sort all in a "one-stop shop".
Why has Google gone beyond simply maximizing the Internet user's web search experience? The reason is because even they must realize the barriers to entry to this network platform are not prohibitive and that competition will always be looming. Other players existing in this industry such as Yahoo!, MSN Live, etc. have not been able to capture the market share Google has been able to capture; however, this does not mean that a new search engine will not be introduced in the future that will be "smarter" or provide a better search experience. For this reason, Google must add value via other avenues to the user in addition to their search engine capabilities because when a "smarter" search engine does come along, web users will follow due to the neglible switching costs incurred.
Despite the market share that Google currently holds in the Internet Search Engine business, I do not believe it is accurate to say that the industry in which they are currently the dominant player is a Winner-Take-All (WTA) business. Currently, Google is crushing the competition in the Internet Search Engine business not solely due to their "algorithm-based" search capabilities, but also due to the fact they created a numerous other web-based products that allow Google users to access email via GMail, find places using Google Maps, and things of the sort all in a "one-stop shop".
Why has Google gone beyond simply maximizing the Internet user's web search experience? The reason is because even they must realize the barriers to entry to this network platform are not prohibitive and that competition will always be looming. Other players existing in this industry such as Yahoo!, MSN Live, etc. have not been able to capture the market share Google has been able to capture; however, this does not mean that a new search engine will not be introduced in the future that will be "smarter" or provide a better search experience. For this reason, Google must add value via other avenues to the user in addition to their search engine capabilities because when a "smarter" search engine does come along, web users will follow due to the neglible switching costs incurred.
NTT DoCoMo, Inc. & Mobile FeliCa Technology
Is NTT DoCoMo wise to offer its existing mobile phone rivals access to Mobile FeliCa?
I believe NTT DoCoMo's decision to offer mobile phone rivals access to Mobile FeliCa technology, its contactless integrated circuit (IC) offering, was a tough, but prudent decision. It should pay dividends as the decision moves NTT DoCoMo to the forefront of the industry by creating strong network effects as well as first-mover advantages. In this case, even though NTT DoCoMo's competition will also be using the Mobile FeliCa technology in their own products, FeliCa Networks will evolve into the standard platform on which wireless transactions are conducted. NTT DoCoMo will capitalize on their stakeholder position as a result.
Additionally, by continuing to establish relationships between different retailers, credit card companies, etc. that agree to use the Mobile FeliCa technology and by continuing to increase the number of individuals who own mobile phones that possess the Mobile FeliCa technology, the necessity of having a phone that includes Mobile FeliCa technology will increase. For instance, the agreement established with the grocery store chains that provide a 5% discount to customers for using the Mobile FeliCa technology instead of cash to pay at the checkout counter is a great example of NTT DoCoMo utilizing the Mobile FeliCa technology to capture new target audiences.
On the other hand, if NTT DoCoMo made the decision to keep Mobile FeliCa to themselves and not allow the competition to implement the IC technology into their own products, FeliCa Networks could either takeoff and become the accepted standard basically making NTT DoCoMo a stakeholder in a monopoly. On the other hand, there is the issue that if NTT DoCoMo only makes the Mobile FeliCa technology available on their own products, then they run the risk of losing a great number of customers who do not purchase NTT DoCoMo mobile phones, but would still use the Mobile FeliCa technology in their everyday lives.
I believe NTT DoCoMo's decision to offer mobile phone rivals access to Mobile FeliCa technology, its contactless integrated circuit (IC) offering, was a tough, but prudent decision. It should pay dividends as the decision moves NTT DoCoMo to the forefront of the industry by creating strong network effects as well as first-mover advantages. In this case, even though NTT DoCoMo's competition will also be using the Mobile FeliCa technology in their own products, FeliCa Networks will evolve into the standard platform on which wireless transactions are conducted. NTT DoCoMo will capitalize on their stakeholder position as a result.
Additionally, by continuing to establish relationships between different retailers, credit card companies, etc. that agree to use the Mobile FeliCa technology and by continuing to increase the number of individuals who own mobile phones that possess the Mobile FeliCa technology, the necessity of having a phone that includes Mobile FeliCa technology will increase. For instance, the agreement established with the grocery store chains that provide a 5% discount to customers for using the Mobile FeliCa technology instead of cash to pay at the checkout counter is a great example of NTT DoCoMo utilizing the Mobile FeliCa technology to capture new target audiences.
On the other hand, if NTT DoCoMo made the decision to keep Mobile FeliCa to themselves and not allow the competition to implement the IC technology into their own products, FeliCa Networks could either takeoff and become the accepted standard basically making NTT DoCoMo a stakeholder in a monopoly. On the other hand, there is the issue that if NTT DoCoMo only makes the Mobile FeliCa technology available on their own products, then they run the risk of losing a great number of customers who do not purchase NTT DoCoMo mobile phones, but would still use the Mobile FeliCa technology in their everyday lives.
Friday, February 20, 2009
Is Trouble Brewing?
It is being reported that there may be a hike in beer tax in the works as a result of the economy's downward spiral. It made me think of one of my favorite 311 songs, Homebrew.
Thursday, February 19, 2009
EA Online: Are They in the Game?
Since the writing of the Electronic Arts Case, the Sony Playstation 3 and the Nintendo Wii have been released and both have online gaming capabilities. What’s your assessment of the current online gaming market?
I have to admit, I really have not played too many video games since the first Nintendo and Super Nintendo were introduced to the market and I would spend my spare time playing Spy Hunter, Metal Gear, Tecmo Bowl, or memorizing the code to get 30 lives in Contra (shown here on YouTube). Once the controllers had more buttons than I had fingers on my hands, I guess I just lost all interest.
With that said, after reading the case, I can see that a lot more has passed me by in the world of video gaming than I realized. From a novice perspective though, it appears pretty clear to me that anyone who wants to remain a relevant player in the gaming world today must make themselves viable from an online gaming perspective. Therefore, I believe Sony and Nintendo's strategy to incorporate online gaming functionality into their PS3 and Wii, respectively, was a mandatory move unless they completely wanted to be phased out of competition. The move allows end-users to be more connected to other gamers who are as enthusiastic about the world of gaming as they are, and also allows them to provide more value-added services directly to their target audience.
I have to admit, I really have not played too many video games since the first Nintendo and Super Nintendo were introduced to the market and I would spend my spare time playing Spy Hunter, Metal Gear, Tecmo Bowl, or memorizing the code to get 30 lives in Contra (shown here on YouTube). Once the controllers had more buttons than I had fingers on my hands, I guess I just lost all interest.
With that said, after reading the case, I can see that a lot more has passed me by in the world of video gaming than I realized. From a novice perspective though, it appears pretty clear to me that anyone who wants to remain a relevant player in the gaming world today must make themselves viable from an online gaming perspective. Therefore, I believe Sony and Nintendo's strategy to incorporate online gaming functionality into their PS3 and Wii, respectively, was a mandatory move unless they completely wanted to be phased out of competition. The move allows end-users to be more connected to other gamers who are as enthusiastic about the world of gaming as they are, and also allows them to provide more value-added services directly to their target audience.
Wednesday, February 18, 2009
NetFlix: Is the Well Running Dry?
As a follow-up to my NetFlix Business Model post from earlier, I thought this commentary posted on CNN.com provided a rather insightful perspective:
NetFlix Defies The Naysayers
Plus, the writer incorporated the word "gratis".
NetFlix Defies The Naysayers
Plus, the writer incorporated the word "gratis".
Six Ways to Make Web 2.0 Work
Here is a link to an interesting article pubished recently in the McKinsey Quarterly:
Six Ways to Make Web 2.0 Work
You may need to create a user account to have access to the entire article.
Six Ways to Make Web 2.0 Work
You may need to create a user account to have access to the entire article.
Friday, February 13, 2009
Mint.com Highlighted on MSN Finance
One of the eCommerce websites mentioned in my MBA 734 class, Mint.com, was recently reviewed by Kiplinger's Personal Finance Magazine, along with other online financial management tools, and this is how they described the Mint.com experience on MSN Finance. I currently use Mint.com and find it to be tremendously useful.
Thursday, February 12, 2009
NetFlix: Update Business Model with VOD?
Since the publishing of the HBS case, Netflix has entered the video on demand (VOD) market. What is your analysis of how Netflix has attempted to update their business model with VOD?
It is my belief that NetFlix's decision to pursue Video On Demand (VOD) and ultimately incorporate this new revenue-generator into their overall business model was not only a great idea, but a necessary action. Just as NetFlix was able to look ahead, act on future trends, and get off the ground by attracting those individuals who were early-movers toward the new DVD movie format back in the late '90s and early '00s, they are continuing to be proactive and forward-thinking as they are preparing themselves and their business model for the day when DVDs (and other hard-copy media) are rendered obsolete and meet the same fate as that of the VHS format. As the media and telecommunications industries continue to converge, I suspect it would be more challenging for NetFlix to differentiate themselves from other VOD providers in the future; therefore, it will be easier for them to start moving in this direction now, before the DVD format becomes completely passe, and provide additional value to their current customer base rather than remain stagnant and find themselves losing subscribers who are moving to the budding VOD trend. NetFlix has also recently introduced a settop box similar to the Vudu Box with which AppleTV users are familiar. While this is also another step in the right direction, they need to maintain their focus on convenience, value, and selection. NetFlix was able to succeed because they set themselves apart from the competition; however, it is paramount that they continually look for newer ways to reach their niche customers while remaining on the cutting edge of video delivery technology.
It is my belief that NetFlix's decision to pursue Video On Demand (VOD) and ultimately incorporate this new revenue-generator into their overall business model was not only a great idea, but a necessary action. Just as NetFlix was able to look ahead, act on future trends, and get off the ground by attracting those individuals who were early-movers toward the new DVD movie format back in the late '90s and early '00s, they are continuing to be proactive and forward-thinking as they are preparing themselves and their business model for the day when DVDs (and other hard-copy media) are rendered obsolete and meet the same fate as that of the VHS format. As the media and telecommunications industries continue to converge, I suspect it would be more challenging for NetFlix to differentiate themselves from other VOD providers in the future; therefore, it will be easier for them to start moving in this direction now, before the DVD format becomes completely passe, and provide additional value to their current customer base rather than remain stagnant and find themselves losing subscribers who are moving to the budding VOD trend. NetFlix has also recently introduced a settop box similar to the Vudu Box with which AppleTV users are familiar. While this is also another step in the right direction, they need to maintain their focus on convenience, value, and selection. NetFlix was able to succeed because they set themselves apart from the competition; however, it is paramount that they continually look for newer ways to reach their niche customers while remaining on the cutting edge of video delivery technology.
Friday, February 6, 2009
P2P File Sharing: Distribution Chain Evolution Panel
A panel discussion on the Evolution of the Distribution Chain with regards to P2P File Sharing moderated by a colleage of mine, Limor Schafman. Courtesy of TV Mainstream.
Thursday, January 29, 2009
ezBoard: Making Customers Pay
1. How should ezBoard update their business model to reach their revenue goals?
ezBoard should not lose focus on their advertising efforts as it seems to generate at least some degree of consistent positive cash flow. ezBoard should also consider selling registrants' information to third-party marketing companies, with the registrants consent obviously. Additionally, they could start and advertise a "referral-incentive" plan whereby if a current paying registrant can refer a peer to become a paying registrant for at least 90-days or some length of time to offset a future discount, then the individual who made the referral will get some discount at that point in time.
2. What services should they consider offering with the new Version 8.0 software?
ezBoard should definitely keep pursuing the LAMP (Linux, Apache, MySQL, PhP) environment strategy as it is geared toward more open-sourced application development. They should also keep focusing on pursuing the Content Management System aspect of the ezBoard application. It seems they are beginning to go this route, but they need to use CMS features to allow them to integrate price discrimination more by allowing certain users certain features. Additionally, they need to incorporate video and rating system into their webpages as it allows for more of an interactive experience so users can actually see "first-hand" videos related to their conversations and users can rate videos and even rate contributors. Lastly, they may find it beneficial to develop some type of internal Instant Messenger tool similar to Facebook Chat that allows them to carry on private conversations with other contributors if they do not want to post something for everyone to see or if they would like a quicker response to their post.
ezBoard should not lose focus on their advertising efforts as it seems to generate at least some degree of consistent positive cash flow. ezBoard should also consider selling registrants' information to third-party marketing companies, with the registrants consent obviously. Additionally, they could start and advertise a "referral-incentive" plan whereby if a current paying registrant can refer a peer to become a paying registrant for at least 90-days or some length of time to offset a future discount, then the individual who made the referral will get some discount at that point in time.
2. What services should they consider offering with the new Version 8.0 software?
ezBoard should definitely keep pursuing the LAMP (Linux, Apache, MySQL, PhP) environment strategy as it is geared toward more open-sourced application development. They should also keep focusing on pursuing the Content Management System aspect of the ezBoard application. It seems they are beginning to go this route, but they need to use CMS features to allow them to integrate price discrimination more by allowing certain users certain features. Additionally, they need to incorporate video and rating system into their webpages as it allows for more of an interactive experience so users can actually see "first-hand" videos related to their conversations and users can rate videos and even rate contributors. Lastly, they may find it beneficial to develop some type of internal Instant Messenger tool similar to Facebook Chat that allows them to carry on private conversations with other contributors if they do not want to post something for everyone to see or if they would like a quicker response to their post.
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