digital business
Digital Business course by prof. Stefan Klein. Summary created as preparation for exam. WWU Münster, 2018
1. recommender systems
1.1. goal
1.1.1. fully automatic and precise
1.1.2. technology-based
1.1.2.1. AI
1.1.2.2. machine learning
1.2. problems
1.2.1. queries difficult to automatically process
1.2.2. preferences
1.2.2.1. subtle
1.2.2.2. individual
1.2.2.3. difficult to specify
1.2.2.3.1. for new products
1.2.2.3.2. context dependent
1.3. traditional approach
1.3.1. sampling / trial & error
1.3.2. asking
1.3.2.1. peers
1.3.2.2. experts
1.4. modern approach
1.4.1. "wisdom of the crowd"
1.4.2. collaborative filtering
1.4.3. analysis of shopping patterns
1.4.3.1. user/item nearest-neighbor
1.4.4. real-time access to experts
1.5. in tourism
1.5.1. challenges
1.5.1.1. improved user involvement
1.5.1.2. profile management
1.5.1.2.1. transparent
1.5.1.2.2. extended
1.5.1.3. standard templates for travelers' profiles
1.5.1.4. real-time communication integration
1.5.1.5. justify recommending being extra paid
1.5.1.5.1. sophisticated algorithms
1.5.1.5.2. complex computing power
1.5.1.6. simplify and quicken the proccess
1.5.2. background
1.5.2.1. tourist search queries
1.5.2.1.1. complex
1.5.2.1.2. difficult to articulate
1.5.2.2. individuals represent different
1.5.2.2.1. types
1.5.2.2.2. preferences
1.5.2.3. desitinations
1.5.2.3.1. patterns of complex sets
1.5.2.3.2. very individual
1.5.2.3.3. idea
1.6. serendipity?
1.6.1. = finding something good without looking for it
1.6.2. based on economical utility theory
1.6.3. consideration set of each user
2. filter bubble
2.1. causes
2.1.1. depression
2.1.2. extreme polarisation
2.2. google uses
2.2.1. 57 factors
2.2.1.1. location
2.2.1.2. ethnicity
2.2.1.3. age
2.3. you see what you WANT to see
2.3.1. most likely to click
2.3.1.1. $$$
2.3.2. not same as others
2.3.3. less effort
2.3.3.1. to reinforce current view
2.3.3.2. rather than challenge
2.4. example of Malaysian plane
2.4.1. world believes it's Russia
2.4.1.1. in Russia only 3% belive that
2.4.2. in Russia they say it's Ukraine
2.4.3. two different views
2.5. ~ echo chamber
2.6. blame
2.6.1. ourselves first
2.6.2. then companies
2.6.2.1. google
2.6.2.2. facebook
3. bundle 2.0
3.1. examples
3.1.1. NYT
3.1.2. Office 365
3.1.3. google
3.1.3.1. gmails
3.1.3.2. maps
3.1.4. amazon
3.1.4.1. prime
3.1.4.2. kindle unlimited
3.1.5. netflix
3.1.5.1. intermediary
3.1.5.1.1. content owners
3.1.5.1.2. consumers
3.1.5.2. need to balance out
3.1.5.2.1. cost of licencing
3.1.5.2.2. number of subscriptions (and fees)
3.1.6. academic publications
3.2. relating to canvas
3.2.1. customer segments
3.2.1.1. segment-specific bundles
3.2.2. VP
3.2.2.1. bundle as VP
3.2.2.2. price convenience
3.2.3. channels
3.2.4. customer relationships
3.2.5. streams/costs
3.3. perspectives
3.3.1. economic
3.3.1.1. effective profit maximizing tool
3.3.1.2. WTP factor
3.3.1.2.1. scenario 1
3.3.1.2.2. scenario 2
3.3.1.3. demand is more...
3.3.1.3.1. homogeneous
3.3.1.3.2. predictable
3.3.1.4. minimal costs of...
3.3.1.4.1. product beyond first copy
3.3.1.4.2. communication (distribution)
3.3.1.4.3. bundling
3.3.1.4.4. storage
3.3.1.5. key advantage
3.3.1.5.1. in competing for
3.3.1.5.2. deterring entry
3.3.1.5.3. capturing close to 100% market share
3.3.2. strategy/business model
3.3.3. social impact
3.4. types
3.4.1. volume discount
3.4.1.1. 2 for 1
3.4.2. forced
3.4.2.1. CD for album
3.4.2.2. MS Office
3.4.2.3. newspaper
3.4.3. subscription (vs PPU)
4. customer relationship
4.1. always A FEELING
4.2. main types
4.2.1. committed partnership
4.2.2. enslavement
4.3. Porter's Competetive Advantage Model
4.3.1. Primary Activities
4.3.1.1. logistics
4.3.1.1.1. inboud
4.3.1.1.2. outbound
4.3.1.2. operations
4.3.1.3. marketing + sales
4.3.1.4. customer support
4.3.2. Support Activities
4.3.2.1. HR
4.3.2.2. technology
4.3.2.3. procurement
4.3.2.4. firm infrastructure
4.4. the model
4.4.1. gain creator
4.4.2. pain relievers
4.4.3. products/services
4.5. elements of value
4.5.1. 30
4.5.2. the more the better
4.5.3. types
4.5.3.1. functional
4.5.3.1.1. saves time
4.5.3.1.2. organizes
4.5.3.2. emotional
4.5.3.2.1. nostalgia
4.5.3.2.2. rewards me
4.5.3.3. life changing
4.5.3.3.1. hope
4.5.3.3.2. self-actualization
4.5.3.4. social impact
4.5.3.4.1. self-transcendence
4.6. stages
4.6.1. single interaction
4.6.2. chain of interactions
4.6.3. microineraction
5. sharing economy
5.1. examples
5.1.1. airbnb
5.1.2. parkatmyhouse
5.1.3. kickstarter
5.1.4. bookswapping
5.1.5. bike sharing
5.1.6. wikipedia
5.2. drivers
5.2.1. renewed belief in importance of community
5.2.2. torrent of P2P social networks, with real-time technologies
5.2.3. pressing unresolved envoirnmental concerns
5.2.3.1. reduce
5.2.3.2. reusue
5.2.3.3. recycle
5.2.4. global recession that shocked consumer behaviours
5.3. differences
5.4. reflection on aspects
5.5. models
5.5.1. redistribution (recycling)
5.5.2. collaborative lifestyles
5.5.3. product service systems
5.5.3.1. uber
5.6. network effects
5.6.1. positive
5.6.1.1. content
5.6.1.2. demand
5.6.1.3. variety of offers
5.6.2. negative
5.6.2.1. increased competition
6. disruptive innovation
6.1. definition
6.1.1. allowing a whole new population of consumers to access good that was previously accessible to only those with a lot of money (or skill)
6.2. disruptive technologies
6.2.1. mobile internet
6.2.2. IoT
6.2.3. cloud
6.2.4. robotics
7. online search
7.1. bias
7.1.1. each site favors their products
7.2. cognitive issue with information
7.2.1. lower recall rate
7.2.2. higher recall where to later access it
7.3. question of neutrality
7.4. reviews
7.4.1. very important
7.4.1.1. for people
7.4.1.2. in decision making
7.4.1.3. numbers (%) increasing
7.4.2. often defrauded
7.4.2.1. fake positve for yourself
7.4.2.2. fake negative for competitor
7.4.2.3. why?
7.4.2.3.1. for yourself when reputation is weak
7.4.2.3.2. for others when intensive competition
7.4.3. solutions to fight
7.4.3.1. review meta
7.4.3.2. telling what's defrauded
8. model canvas blocks
8.1. one by one
8.1.1. 1) customer segments
8.1.2. 2) value propoitions
8.1.3. 3) channels
8.1.4. 4) customer relationships
8.1.5. 5) revenue streams
8.1.6. 6) key resources
8.1.7. 7) key activities
8.1.8. 8) key partnerships
8.1.9. 9) cost structure
8.2. altogether
8.2.1. financial streams
8.2.1.1. revenue streams
8.2.1.1.1. WTP
8.2.1.1.2. pricing
8.2.1.1.3. types
8.2.1.2. cost structure
8.2.1.2.1. cost driven
8.2.1.2.2. value driven
8.2.1.2.3. Porter's Norm Strategies
8.2.2. key
8.2.2.1. resources
8.2.2.1.1. physical
8.2.2.1.2. financial
8.2.2.1.3. intellectual
8.2.2.1.4. human
8.2.2.2. activities
8.2.2.2.1. categories
8.2.2.3. partnerships
8.2.2.3.1. types
8.2.2.3.2. motivations
8.2.3. customer
8.2.3.1. segments
8.2.3.1.1. separate if
8.2.3.1.2. markets
8.2.3.2. relationships
8.2.3.2.1. motivations
8.2.3.3. value propositions
8.2.3.3.1. qualitative
8.2.3.3.2. quantitative
8.2.3.3.3. questions
8.2.3.3.4. value pyramid
8.2.3.3.5. simplified grid of goals
8.2.4. channels
8.2.4.1. phases
8.2.4.1.1. awareness
8.2.4.1.2. evaluation
8.2.4.1.3. purchase
8.2.4.1.4. delivery
8.2.4.1.5. after sales
8.2.4.2. types
8.2.4.2.1. ownership
8.2.4.2.2. medium
8.2.4.2.3. format
8.2.4.2.4. function
8.2.4.3. multi = "clicks & bricks"
8.2.4.3.1. offline+online
8.2.4.3.2. if integration extensive
8.3. why models fail?
8.3.1. flawed design
8.3.2. poor implementation
8.3.3. not growing enough
8.3.4. strong competitor
8.3.5. disruptive innovation
8.3.6. failing to adjust
8.3.7. legal regulation
9. design
9.1. 1. understand
9.1.1. market
9.1.2. client
9.1.3. technology
9.1.4. constraints of the problem
9.2. 2. observe
9.2.1. real people, real life
9.2.2. confusions?
9.2.3. likes? hates?
9.2.4. what is still not addressed?
9.3. 3. visualize
9.4. 4. evaluate, refine
9.4.1. quick iterations
9.5. 5. implement
9.6. extra tips
9.6.1. a) thinking like a traveler
9.6.2. b) field observing with fresh eyes
9.6.3. c) treat life as an experiment
9.6.4. d) cultivate an attitude of wisdom
10. facebook debate
10.1. polarisation
10.1.1. social and politcal cost
10.1.2. not reflected in business model
10.2. data collection
10.3. free basics
10.3.1. little local services/news
10.3.2. collects data
10.3.3. violates net neutrality
10.4. pays not enough taxes
10.4.1. ridiculously low
10.4.2. part of strategy (purposefully)
10.5. news problem
10.5.1. fake new
10.5.2. not checking
10.6. ads
10.6.1. fb doesn't (want to) know who buys them
11. long tail
11.1. explained economically by
11.1.1. costs
11.1.1.1. production
11.1.1.2. inventory
11.1.1.3. marketing
11.1.1.4. search/information
11.1.1.4.1. people search until the cost of the search is lower than potential gain
11.1.2. demand patterns
11.1.3. assortment planning/optimalization
11.2. strategies
11.2.1. blockbuster
11.2.1.1. airport bookshop
11.2.1.2. only bestseller
11.2.2. full liner
11.2.2.1. amazon
11.2.2.2. everything
11.2.3. niche focus
11.2.3.1. Soda Pop
11.2.3.2. only long tail
11.3. goods categories
11.3.1. search
11.3.1.1. technical devices
11.3.2. experience
11.3.2.1. information
11.3.2.2. services
11.3.3. trust
11.3.3.1. medication
11.4. technology impact on costs
11.4.1. on supply
11.4.1.1. inventory
11.4.1.2. marketing
11.4.2. on demand
11.4.2.1. search tools
11.4.2.2. price comparison
11.4.2.3. recommender systems
11.4.2.4. peer review
11.5. Three Rules
11.5.1. Make Everything Available.
11.5.2. Cut the price in half. Now lower it.
11.5.3. Help me find it.