Competing in the Digital Economy
Winter 2000
Bentley College course code: CS776-200
Norwegian School of Management course code: GRA2329
[What's new] [Administrivia] [Seminar plan] [Discussion group] [Literature]
[Participants' email] [Term paper groups]
[Espen Andersen's home page] [Bill Schiano's home page]
[Prior courses (BI pages): 1997/1998/1999]
This course is taught as a collaborative project between Bentley College and the Norwegian School of Management BI. It involves students from Bentley's MBA program, from BI's MBA program, and from BI's Siviløkonom (Master of Business and Economics) program (IT management concentration.)
Suggestions and comments always welcome
What's new
- February 28: Group page added.
- February 16: Bill has sent out the thoughtbubble.com case as a PDF file -- if you have not received it, please contact Bill for the case and Hans Christian Farsethås to have the email list updated.
- February 15: Ernst Oddsund's presentation for today can be found here (PowerPoint, 592K).
- February 10: Removed study questions for next lecture.
- February 8: Interesting guest lecturers for the next two sessions (Feb 8 and 15).
- February 4: Added assignment for February 8 (send in paragraph about company).
- February 4: Business plan outline presentation is here.
- January 27: Participants' list added.
- January 9: Changed assignment for lecture 3.
- January 3: Some smaller updates.
- December 30, 1999: Added more links to books and taken away some articles and web pages.
- December 27, 1999: Literature updated by Bill Schiano.
- (BI) December 27, 1999: For the Norwegian-side students: There will be a bus service from the Sandvika campus to Ekeberg. Email will be forthcoming from Audrey Paton about details, if you haven't heard anything by January 3, contact the MBA office.
- December 5, 1999: Want to know how to write excellent English? Try The Economist Style Guide, or Strunk and White.
- November 28, 1999: Dates set up, still some ambiguity towards the end of the calendar. Required and recommended reading set up
- November 19, 1999: Very temporary page set up. If you are a participant in this course, please send mail to Espen Andersen or Bill Schiano, so your email address can be registered on the participant list.
Administrivia
Objective
The objective of this course is to give the students a thorough understanding of the information technology, economic, and organizational issues of doing business in a digital environment, such as the Internet. Students interested in pursuing careers developing and managing electronic commerce systems or participating in startup companies will receive an excellent foundation in the basic technologies of global electronic networks and their managerial implications.Computer use
This seminar will make extensive use of information technology: Assignments, messages, discussions (mainly through video conference) and all hand-ins will be done electronically. Students are expected to actively participate in discussions (electronic and verbal), and will have a large degree of freedom to influence content of classes and the term paper.Evaluare
necesse est..... This is a high-intensity course at an advanced level, so attendance is mandatory, participation is strongly encouraged, and intense participation rather the norm than the exception. Formal evaluation is as follows:
- term paper (fagoppgave) (handed in electronically, as a Web page), counts 60% toward the final grade. The term paper is defined by the students themselves (coordinated with professor), and should be done in groups of up to 6 students. The composition of the groups , preferably from both Bentley and NSM. Students are encouraged to make the paper as practically oriented as possible, for instance by creating a business plan for an Internet-based company, or an electronic commerce strategy for an existing company. The term paper is graded on the following criteria:
- relevance and interest of topic: 10%
- layout and structure of Web pages: 10%
- definition and statement of problem: 20%
- sources, including links (quality, relevance, interest): 20%
- analysis: 20%
- conclusion/recommendations (quality, implementability): 20%
- individual intermediary submissions (2 - 3, electronically delivered) counts 20% toward the final grade
- participation in classroom and electronic discussions, dictatorically judged by professors (but with student input), counts 20% toward the final grade
Detailed seminar plan
The dictatorial right to change and amend this at any time and on any whim is most explicitly reserved.....Date/lecturer Topic Preparation 1-BI only
Tuesday January 4th
12:00-16:00 CET
Room 429, BI-LU Ekeberg
Espen Andersen and Bill SchianoLunch (in cafeteria), introduction to the course, with an introduction to videoconferencing and a discussion of Internet trends. introduction, discussion of course and preparation. Read and be prepared to discuss: Do: Visit MIT Media Lab's web page and see some of the interesting things they do with wearable computing.
- The Hobbes' Internet History timeline
- Shapiro & Varian: Introductory chapter (Chapter 1) [PDF handouts here]
- From the recommended list: Utterback (introduction and chapter 1), Cairncross: chapter 1 and 4 and the "Trendspotter's guide", Garf & Spaf: Preface and pages 3-8. Appendix A (lessons from vineyard.net) and chapter 2.
Consider: What does being digital mean? What characterizes a digital world?
2-BI only
Tuesday January 11th
14:00-17:00 CET
Room 429, BI-LU Ekeberg
Espen AndersenRegulating cyberspace--anarchy or hierarchy? Read and be prepared to discuss: Consider: How can we implement laws and technology--in organizations and society--to balance the issue of privacy and freedom of expression vs. crime-fighting and protection of children?
- Amor, Chapter 4, "Avoiding Legal Issues."
- Shapiro & Varian: Chapter 4 and 10.
- John Markoff's article on "The Rise of the Little Brother"
- Daniel Sieberg's article on how it feels to be hacked.
- Are our mobile phones safe to eavesdropping?
- How about cyberwar? (excellent article, incidentally)
- Visit Ståle Schumacher's International PGP home page
- Read Espen's paper on the encryption debate
- Check out some Easter Eggs and the Stalker's Home Page.
- From the recommended list: Cairncross chapter 7 and 9, Garf & Spaf chapter 17 and 18, chapter 19 if you are really interested
More reading:
If you are looking for a thorough (and very entertaining) book about cryptography (and its counterpart, cryptanalysis), try Simon Singh's The Code Book.3
Tuesday January 18th
14:00-17:00 CET
Room 429, BI-LU Ekeberg
8am - 11pm EST
Bentley
Espen Andersen and Bill SchianoTechnology development and innovation: Internet and other historical developments
as a guide to strategy. Network externalities.Read and be prepared to discuss: Consider: How are these "old" stories relevant to a company wishing to do business in a digital world?
- Kalakota, Chapter 1, "From E-Commerce to E-Business."
- Kalakota, Chapter 3, "Think E-Business Design, Not Just Technology." Note: Skim case studies.
- Amor, Chapter 1, "Introduction to Internet Business," and Chapter 2, "Preparing the Online Business."
- Shapiro & Varian: Chapter 7, 8 & 9
- David, P. A. (1985). Clio and the Economics of QWERTY. American Economic Review, 75 (May-June), 332-337.
- Anything you can find on Ted Nelson and Xanadu
- A Guide to Internet Architecture
- From the recommended list: Christensen: the whole book. Utterback: Chapter 7. McKenney: Chapter 1, Chapter 3 and 4: Bank of America og American Airlines.
- Check out the Economics of Networks, maintained by Nick Economides
Deliver: Write down an idea for an Internet business or other initiative, what you can do to make this come about, and what kind of help you would need. (Assuming the technology works: Post this for others to see in the collaboration system.
4
Tuesday January 25th
14:00-17:00 CET
Room 429, BI-LU Ekeberg
8am - 11pm EST
Bentley
Espen Andersen and Bill SchianoWeb architecture (URL, DNS, TCP/IP, other TLAs). Security. Read and be prepared to discuss: Prepare: What do these terms mean? Are they important--and if so, why?
- Amor, Chapter 3, "Selecting the Technology"
- Kalakota, Chapter 4, "Constructing the E-Business Architecture."
- Amor, Chapter 10, "Security."
- Internet2 -- Building the Next Backbone InternetWeek, February 16, 1998
- Dan Farmer's SATAN-based survey of Internet security.
- Visit www.Takedown.com for the story of capturing Kevin Mitnick.
- ADSL and SDSL
- 3GPP and WAP
- Firewire and USB
- Bluetooth and Mobilestar
- POTS and VoIP
5
Tuesday Febrary 1st
14:00-17:00 CET
Room 429, BI-LU Ekeberg
8am - 11pm EST
Bentley
Espen Andersen and Bill Schiano
(If the technology works) Paul Turton from Computer Sciences Corporation will talk about the WAP market.Intranets The telecommunications market
Read and be prepared to discuss: Deliver: Study question (answer less than 200 words) to be e-mailed to Bill Schiano before 5PM US (23:00 CET) Monday January 31: Is communications capacity really available in abundance, or will too much traffic kill the Internet?
- Kalakota, Chapter 2, "e-Business Trend Spotting."
- Skim Kalakota, Chapter 10, "Knowledge Tone Applications: The Next Generation of Decision Support Systems."
- Amor, Chapter 8, "Interactive Communication Experiences."
- This Wired article on Federal Express as the Airline of the Internet
- Salon 21st article on European telephone and Internet charges
- From Hal Varian's Web site: Read about Internet and economics, especially about pricing services where there is no marginal cost (Chapter 2 in Shapiro & Varian)
- From the recommended list: Cairncross: Chapter 2 and 3.
6
Tuesday February 8th
14:00-17:00 CET
Room 429, BI-LU Ekeberg
8am - 11pm EST
Bentley
Espen Andersen and Bill SchianoInternet as a commercial platform: EDI, payments and economics. Guest lecturer: Ian Pearson, British Telecom's Futurologist, will talk about the next 10-15 years in technology, business and society.
Read and be prepared to discuss: Deliver: Show up well prepared and able to ask intelligent questions. Project leaders: Send email to Espen with 1 paragraph describing company value offering.
- Amor, Chapter 13, "Paying Via the Net."
- Kalakota, Chapter 8, "Supply Chain Management: Interenterprise Fusion."
- Case Study: "Competition in the Dutch Flower Auctions." You will find it online at: http://kambil.stern.nyu.edu/teaching/cases/auction/flowers.html.
- Coase, R. H. (1937). “The Nature of the Firm”, Economica 4: 386-405. (Coase received the Nobel prize in 1991). (only if you can locate a copy easily).
- Visit the pages of Mondex, Digicash, and Cybercash. Try to understand their approaches to digital payments -- are they different?
- Check out this picture. What does it mean for electronic payment?
- Visit Ebay, Open Market , General Electric's Trading Process Network and Posten's Torget.
- From the recommended list: Garfinkel & Spafford: Chapter 16, Cairncross: Chapter 5
7
Tuesday February 15th
14:00-17:00 CET
Room 429, BI-LU Ekeberg
8am - 11pm EST
Bentley
Espen Andersen and Bill SchianoMarketing on the Internet -- the impact on existing consumer retail distribution "Starting an Internet company -- the Zvia experience", guest lecture by Ernst Oddsund, Zvia Corporation
Read and be prepared to discuss: Before class:
- Amor, Chapter 5, "Marketing Strategies on the Web."
- Kalakota, Chapter 5, "Customer Relationship Management: Integrating Processes to Build Relationships."
- Case: Catatech Industries: The challenge of electronic commerce
- Buday, Champy og Nohria's The Rise of the Electronic Community (for full article, see InformationWeek , June 10, 1996)
- Espen Andersen: Internett som konkurransearena. Praktisk Økonomi og Ledelse, januar 1997 (in Norwegian, good luck to you all....)
- From the recommended list: Cairncross chapter 5 and 6
- be up to speed on the case and ready to ask intelligent questions from the guest speaker.
8
Tuesday February 22th
14:00-17:00 CET
Room 429, BI-LU Ekeberg
8am - 11pm EST
Bentley
Espen Andersen and Bill SchianoWeb page development technology and project management Read and be prepared to discuss:
- Case Study, "thoughtbubble," to be distributed.
- Amor, Chapter 9, "Comparing Web Technologies."
- Kalakota, Chapter 12, "Translating e-Business Strategy into Action."
- Shapiro & Varian: Chapters 5 and 6.
- CIO Webmaster article on "Web wars" -- the conflict between Web developers and the traditional IT organization
9
Tuesday February 29th
14:00-17:00 CET
Room 429, BI-LU Ekeberg
8am - 11pm EST
Bentley
Espen Andersen and Bill SchianoMarketing on the Internet (II Advertising and Searching) Read and be prepared to discuss:
- Amor, Chapter 6, "Search Engines and Portals."
- Kalakota, Chapter 6, "Selling Chain Management: Transforming Sales into Interactive Order Acquisition."
- Chip Bayers, "The Promise of One to One (A Love Story)" Wired 6.05, May 1998.
- Maryann Jones Thompson, "The Measures of Web Success" The Industry Standard, Feb. 15, 1999
- Jacob Ward, "'A' is for Advertising" The Industry Standard, Feb. 15, 1999
- Jacob Ward, "The Ad Banners Yet Wave" The Industry Standard, Feb. 15, 1999
- Bernhard Warner, "Bringing Blue-Chip Ads to the Homepage" The Industry Standard, Feb. 15, 1999
- Read the "Important to Read" sections of "A Webmaster's Guide to Search Engines
- Just why is Amazon.com so successful? Check out Scott Rosenberg's discussion in Salon Magazine
12
Bentley only
Tuesday March 7th
8am - 11pm EST
Bentley
Espen Andersen and Bill SchianoRegulating cyberspace--anarchy or hierarchy? See lecture 2.13
Tuesday March 14th
14:00-17:00 CET
Room 429, BI-LU Ekeberg
8am - 11pm EST
Bentley
Espen Andersen and Bill SchianoFinal class: Presentation of student work Be prepared to present your work
(The Norwegian MBA students will be in Boston, the Norwegian MBE students will be in Norway. Presumably, the Bentley students will be at Bentley...)
Literature
Required reading
These books are required reading:Amor, Daniel (1999): The E-business (R)evolution, Prentice-HallRecommended reading
The "technology book" of the course, though there is little reason to feel intimidated. Very complete book on all aspects of life online, practically oriented and surprisingly up-to-date. And, for an added bonus, written by a European....Kalakota, R. and M. Robinson (1999). e-Business: Roadmap for Success. Reading, MA, Addison-Wesley.
A fairly straight-forward book, well organized, on electronic business. Covers, albeit thinly, the main aspects (inkluding knowledge management issues and customer relationship management).Shapiro, Carl & Hal R. Varian (1999) Information Rules : A Strategic Guide to the Network Economy, McGraw-Hill/Harvard Business School Press
(For more information, check out the dedicated Web site at http://www.inforules.com/.) In the words of The Economist: "These two Berkeley professors bring a discipline to their analysis that is usually quite absent from the overheated burblings of the cyberprophets... [This book is about] rigorous and practical strategies, based on solid foundations, for surviving and prospering in the network economy. [...] what is so likeable about this book--its fairmindedness and its wise pragmatism."
These books, and a subscription to Wired, Upside, Fast Company or the Red Herring (for the more financially inclined) is excellent background material (and interesting reading, whether you are doing this for grades or not).Brown, Shona L. and Kathleen M. Eisenhardt (1998): Competing on the Edge: Strategy as Structured Chaos
Bits: whatever you may find at BRINT or other places on the Net with relevance for the theme of the day.
Case studies of corporations competing mostly in the computer industry, and how they need to balance structure vs. creativity. Each dimension of organization is illustrated in terms on one company that is too rigid, one that is too loose, and one that has the right balance (at least for a while). Solid work.Cairncross, Frances. (1997) The Death of Distance: How the communications revolution revolution will change our lives. Boston, MA: Harvard Business School Press.
(For more information, check out the dedicated Web site at http://www.deathofdistance.com/.) This excellently written book (the author is a writer for The Economist) lays out the business consequences of the revolution taking place in computers and communications. The book covers, in an irreverent yet informative way, most of the "big picture" aspects of the seminar. Relatively free of fluff and hype, relying instead on research and examples. Some of the book's content has previously been published in the Economist.Christensen, Clayton M. (1997) The Innovator's Dilemma: Why New Technologies Cause Great Firms to Fail. Boston, MA: Harvard Business School Press.
In this impressively researched book focusing on the hard disk drive industry, Clayton Christensen shows how listening to the customer and giving the customer what they want can get a company in trouble when the technology changes, even though the change may, at the time, seem technologically insignificant. A scary book for technology executives, definitely something that should have been read by IBM, Norsk Data, Digital, Wordperfect, Prime, Data General, Bull, ICL and other former greats of information technology.Garfinkel, Simson and Gene Spafford (1996). Web Security and Commerce, O'Reilly and Associates
This down-to-earth, hands-on description of tools and technologies for setting up and managing web services provides the details where Cairncross' book gives the big picture. A great reference for people wanting to roll their own Web service, including some wonderful war stories on setting up their own ISP from two seasoned technology writers and tinkerers. However, as with all books about specific technologies, its illustrations quickly age.McKenney, J. (1994). Waves of Change: Business Evolution Through Information Technology, Boston, MA: Harvard Business School Press.
McKenney, Professor Emeritus and former Chairman of the MIS group at Harvard Business School, provides an account of the development and implementation processes for two of the world's most consequential information systems: Bank of America's check processing system, the model for most of the banking systems we know today; and American Airlines' SABRE, the first computerized reservation system and still the largest privately owned real-time system in the world. From the history of these two system, McKenney develops a "cascading" model of technology development and implementation, and then proceeds to test this model against three other case histories of successful "classic" system cases: Frito-Lays data capture and pricing system within snacks distribution, USAA's use of document imaging and centralized customer information systems within insurance, and American Hospital Supply's revolutionizing ASAP-system for selling and distributing hospital supplies.Utterback, J. M. (1994). Mastering the Dynamics of Innovation. Boston, MA: Harvard Business School Press
Utterback is a professor at MIT and a pioneer in the field of technology evolution. This book describes the process of technology evolution in a number of industries, from computer chips to a fabulous chapter on the ice industry (where Norway was a very important player on the world market.). A theoretically robust model for technology evolution as a process of evolution and revolution is detailed, a model which is crucial for our understanding of the likely changes we are facing in our increasingly digital business world. This book offers the theoretical weight necessary to put Negroponte's more aggressive statements into a broader context.
Espen Andersen's home page
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Last updated: February 28, 2000.