From eCommerce to eCommerce 2.0 -

the Changing Role of the Customer

Liberec Informatics Forum

4th November 2010

Hans-Dieter Zimmermann

FHS St. Gallen, University of Applied Sciences

www.hdzimmermann.net

This presentation is licensed under a Creative Commons

Attribution-Noncommercial-Share Alike 2.5 Switzerland License

http://creativecommons.org/licenses/by-nc-sa/2.5/ch/

FHS eSociety –

Interdisciplinary Research Group on eSociety

2

www.esociety.net

Goals

3

Taking a broader perspective:

Overview of the developments of electronic markets

and electronic commerce in the last two decades

Examples for eCommerce 2.0 applications

Focus on users’ perspective

Agenda

4

Emergence of Electronic Markets

The eCommerce Pioneers

The Customer in the Center: eCommerce 2.0

Five concepts

Conclusions

Emergence of Electronic Markets

or

How it Began

5

The World Wide Web

6

You remember?

There was a life

before the Web!

The Web started

only in August 1991 !

http://www.flickr.com/photos/27443865@N08/

Electronic Market Hypothesis

7

CACM paper

June 1987

Based on

Transaction Cost

Economics

Main idea:

More market-like

coordinationMalone, Thomas; Yates, Joanne; Benjamin, Robert I.: Electronic markets and

electronic hierarchies, Communication of the ACM 30, 484-497 (1987)

Move to the Market - Hypothesis

8

Ma

lon

e, T

ho

ma

s; Y

ate

s, Jo

an

ne

; B

en

jam

in, R

ob

ert

I.:

Ele

ctr

on

ic m

ark

ets

an

d

ele

ctr

on

ic h

iera

rch

ies, C

om

mu

nic

ation

of th

e A

CM

30

, 4

84

-49

7 (

19

87

)

Electronic Markets

9

Newsletter

September 1991

SSCI listed journal

Vol 20 (2010)

A Pioneer: The Electronic Mall Bodensee (EMB)

Bottom Up development of an electronic marketplace

… understood as an open agora

… with a strong regional focus

… covering parts three countries (Austria, Germany, and Switzerland)

... by regional initiatives.

First electronic

marketplace in Europe

with a strong regional focus

First Online June 199510

The eCommerce Pioneers

11

1995 - Amazon

Start as an Online bookseller

Today:

Online shopping center

Market platforms for

Consumers and

Businesses

1995 - eBay

13

Start as an Online auction based marketplace („flea market“)

Today:

marketplace for

C2C and B2C

Auctions

Fixed prices

New products

Changing Value Creation in the Digital Economy:

Changing Value Creation Structures:

New Intermediaries

Changing Value Creation Structures:

New Intermediaries

15[Sa

rka

r, M

itra

; B

utle

r, B

ria

n; S

tein

fie

ld, C

ha

rle

s: In

term

ed

iaries a

nd

Cyb

erm

ed

iarie

s, JC

MC

-Jo

urn

al o

f C

om

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ted

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n ,

Vo

l. 1

(1

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5),

No

. 3

]

Changing Value Creation Structures:

New Intermediaries

16

[Sarkar et al. 1995]

Changing Value Creation in the Digital Economy:

Changing Value Creation Processes:

The Integration of Customers

into Value Creation

The Integration of Customers into Value Creation

18

SupplierSupplier CustomerCustomer TraditionalValue Chain

CustomersCustomers Future (?)Inter-mediary

Inter-mediary

Solution

Need

‘Production’

WholesalerWholesaler RetailerRetailer

The Integration of Customers into Value Creation

19

eBay

Individual as seller or buyer

Through ratings the individual contributes

to the business partner’s profile

new responsibility

Amazon

Evaluation of products

Individual Recommendations

Affiliate program

…

the individual as co-creator of services

The Customer in the Center: eCommerce 2.0

1. Comments, Evaluation, Recommendations, …

21

Individuals can give feedback on any transaction

Product related

Business partner related

1. Comments, Evaluation, Recommendations, …

22

1. Comments, Evaluation, Recommendations, …

23

1. Comments, Evaluation, Recommendations, …

24

[htt

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1. Comments, Evaluation, Recommendations, …

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2. Social Software

27

Engage people

Connect people

Weblogs

Microblogs (Twitter, …)

Wikis

Social Network Services (Facebook, LinkedIn, XING, …)

… location based SNS (Foursquare, Gowalla, …)

Social Bookmarking (del.icio.us, …)… for scholarly references (BibSonomy, CiteULike, Mendeley, …)

Social Music (blip.fm, spotify, simfy, …)

Social Shopping

Social Media Sharing (Flickr, Youtube, …)

SocialTV

…

http://w

ww

.flic

kr.

com

/photo

s/r

oss/3

941293767/

http://www.flickr.com/photos/thbernhardt/2984100802/

Social Software Options Matrix

28

htt

p:/

/ww

w.f

lickr.

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m/p

hoto

s/v

and

erw

al/33

64627

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Social Software Value Matrix

29

htt

p:/

/ww

w.f

lickr.

co

m/p

hoto

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oss/3

4866

54131

/

2. Social Software – Social Networks: Facebook

30

Create your community

http://www.facebook.com/adidasoriginals

3. Crowdsourcing

31

Utilizing the intelligence of the masses

Outsourcing of tasks

Brainstorming, design, funding, …

Examples

spreadshirt.de

Starbucks Idea (mystarbucksidea.force.com)

IdeaStorm (Dell) (www.ideastorm.com)

Library of Congress & Flickr (www.loc.gov/rr/print/flickr_pilot.html)

…

Platforms

atizo.ch, bonspin.de, ideabounty.com, …

http://www.flickr.com/photos/beansandgrapes/4196948772/

3. Crowdsourcing - Example

32

www.thejohnnycashproject.com

4. Mass Customization

33

Combining

individualization of products and

efficiencies of mass production

Examples

Books (pegastar.com)

Watches (121time.com)

Shirts (dolzer.de)

Parts (emachineshop.com)

Sport shoes

http://nikeid.nike.com

Mass Customization - Example

34

http

://w

ww

.mysw

issch

ocola

te.c

h/

5. The Long Tail

‚Web 2.0‘ – The Long Tail(Chris Anderson, 2004, www.wired.com/wired/archive/12.10/tail.html)

The Three Forces of the Long Tail

Force 1: Democratize the tools of production

Force 2: Democratize the tools of distribution

Force 3: Connect supply and demand

37

Conclusions

39

The role of the customer has changed

dramatically in the last two decades

Web 1.0: Customers at the end of the

one-way digitalized value chain

Web 2.0: Customers can actively

participate in value creation in different

stages and roles such as expert,

consultant, designer, or seller.

Consumers are at eye-level with

suppliers

… take responsibilities

… needs media and information

literacy

The 24th Bled eConference

eFuture:

Creating Solutions for the Individual,

Organisations and Society

June 12-15, 2011

http://BledConference.org

Faculty of Organizational Sciences, University of Maribor

Government of the Republic of Slovenia

European Commission

… and another pioneer:

Contact

Hans-Dieter Zimmermann

FHS St. Gallen University of Applied Sciences

Institute for Information and Process Management IPM-FHS

Teufener Strasse 2, 9000 St. Gallen, Schwitzerland

Tel. +41 71 228 7650, Mobil +41 76 220 1105

hansdieter.zimmermann@fhsg.ch

www.esociety.net , @FHS_eSociety

www.fhsg.ch/ipm

www.hdzimmermann.net, blog.hdzimmermann.net, @hdzimmermann