ICT acceptance ICT and Strategy Competition and strategy Competitive advantage Companies as drivers...
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Transcript of ICT acceptance ICT and Strategy Competition and strategy Competitive advantage Companies as drivers...
ICTacceptance
ICT and Strategy
Competition and strategy
Competitive advantage
Companies as drivers of change
Transaction costs, value chain
The Information Society
The New Capitalism
E-Business: the perspectives
Technology perspective
(2)
Financial perspective (4)
Industry perspective (3)
Consumer perspective (1)
E-Business
Perspectives
• Financial
• Industry
Business model (how toearn money)
Strategy, competitors,industry structure (how tobeat the competitors)
Perspectives
• Technology
• Consumer
Technology acceptancemodels (when, why do consumers use IT systems)
Consumer behaviour,product/service characteristics(who uses why the Internet forwhat)
E-Business: the perspectives
Technology perspective
(2)
Financial perspective (4)
Industry perspective (3)
Consumer perspective (1)
E-Business
A quick scan• Make a list of the products/services for which you used the
Internet to search for information during the last month• Which of these products/services did you buy and where
(Internet, shop, catalog)• Make a list of the products/services your parents bought the
last month through the Internet• Make a list of the products/services your grandparents
bought last month through the Internet• Make a list of the products/services you think your fellow
students bought last month through the Internet
1. Marketing perspective
• 1.1 Nature of product/service
• 1.2 Stages of the decision making process
• I.3 Consumer characteristics
Test the audience
• In groups of 3/4 students: which products/services are suitable to sell through the Internet and why?
1.1 Nature of services/products
• PRODUCTS- Physical- Standardization- Production separate
- Possible to store
• SERVICES- Intangible- Heterogenity- Simultaneous
production- Perishability
Koiso-Kantilla (2004)
Classification according to tasks
• Perceived risk
• Frequency of purchase
• Functional versus expressive value
Zeng and Reinartz (2003)
Evaluation stage
• High touch versus low touch
• High information content versus low information content
• Demand on consumer expertise
The information component
• Search goods
• Experience goods 1
• Experience goods 2
• Credence goods
Girard et al. (2003)
Information and tangibility
Experience goods
Search goods
Low tangibility E.g. Advisory services
E.g. Stock market quotes
High tangibility E.g. Personal items
E.g. Music CD’s
Poon (1999)
Positive and negative reinforcement products
% who have shopped online
% who have purchased online
Purchase/shop ratio
Travel services
69% 44 % 63 %
CD/Music 53% 35% 66%
Wine 16% 4% 25%
Sporting goods
41% 21% 51%
Virus detection software
17% 9% 49%
Insurance 13% 1% 8%
Tires 9% 2% 23%Perotti et al. (2003)
Service process matrix
High
Interaction
and customization
Low
Low High
Labor intensity
Service shop Professional service
Service factory Mass service
Junglas and Watson, 2004
Internet service process matrix
High
Customization
Low
Low High
Interaction
Service center The club
Utility Mass entertainment
Junglas and Watson, 2004
Conclusions?
• Books• Cds/dvds• Travel• Tickets• Pornography
• (Not the shopping goods, which were predicted in 1967 by Doody and Davidson, HBR, )
Marketing perspective (1.2)
• The stages of decision making
Test the audience
• Assume you are intending to buy a new TV. How do you come to your decide which television you are going to buy?
Stages of decision making
• Problem recognition
• Information search
• Evaluation of alternatives
• Purchase decision
• Post purchase behavior
Howard and Sheth (1969), Engel et al. (1994), Kotler (2003)
Information search paradox
Number of
important features
Product familiarity
Stages and channel preferencesPro off-line Pro on-line
Problem recognition No arguments No arguments
Information search Reduction of the search effort for price and product information
Evaluation Feel and touch; perceived risk
Only price and other specific attributes
Purchase Delivery time
Perceived risk
Digitized products/services (delivery time)
Gupta et al. (2004)
Channel use during orientation stage
0
10
20
30
40
50
60
70
80
90
100
books mortgage audio/video travel clothes computers health insurance
% o
f house
hold
s w
ho b
ought
pro
duct
duri
ng last
six
month
s
shop
internet
catalogue
telephone
Doffer et al. (2005)
Suitablility and use of the Internet
0
10
20
30
40
50
60
70
80
books mortgage audio/video travel clothes computers healthinsurance
% o
f house
hold
s w
ho
bought
the p
roduct
duri
ng
the la
st s
ix m
onth
s
used for orientation
suitable for transaction
used for transaction
Doffer et al. (2005)
Test the audience
• What is the profile of the Internet buyer
• What is the explanation for this profile
Marketing perspective (1.3)
• Consumer characteristics
Internet use and age
0
20
40
60
80
100
120
total
12- 15 years
15- 25 years
25- 35 years
35- 45 years
45- 55 years5
55- 65 years
65- 75 years
CBS (2005)
Internet use and income level
0
10
20
30
40
50
60
70
80
90
100
total
low level
low middle level
middle level
high middle level
high level
CBS (2005)
Intenet use and educational level
0
20
40
60
80
100
120
total
lower level
middle level
higher level
CBS (2005)
Reasons
• The higher educated, the higher the efficiency (less time, therefore lower transaction costs)
• The higher the experience (age, education, gender) the higher the efficiency (lower prices)
E-Business: the perspectives
Technology perspective
(4)
Financial perspective (3)
Industry perspective (2)
Consumer perspective (1)
E-Business
2. The strategy perspective
• 2.1 (Structure-Conduct-Performance model (Porter, 1980, 1985)
• 2.2 Resource Based View (Barney, 1991, 1994)
• 2.3 Multi channel strategy
2.1 The five forces model to define attractiveness of industry (Porter, 1980)
THREAT OF THREAT OF
ENTRY BUYERS
RIVALRY AMONG EXISTING FIRMS
THREAT OF THREAT OF SUBSTITUTES SUPPLIERS
Test the audience
• Are there industry characteristics (based on the five forces model) which explain the use of the Internet as a channel?
Disappearance of barriers of entry
• Economies of scale
• Product differentiation
• Switching costs
• Access to distribution channels
(Shin, 2001; Lucas, 2002)
Existing rivalry
• Winner takes all
• First mover advantage
(Source: Coltman, 2001)
Strategies to realize competitive advantage (Porter, Treacy and
Wiersema)
• Cost leadership/operational excellence• Differentiation/product leadership• Focus/customer intimacy
Test the audience
• Mention examples of companies that use the Internet to create a competitive advantage
Results
• Multi-channel strategy as access-based positioning
• Multi-channel strategy as a defense by increasing barriers to entry
2.2 Resource based view (Penrose, 1959, Barney, 1991)
• The firm as a bundle of resources
• Competitive advantage when resources are:
- Valuable
- Rare
- Costly to imitate
- Organized
Results
• e-Technology as a resource• IT-knowledge as resource• Back-end integration as resource• Direct channel experience (economy of
scope)• Advantage of scale and scope disappear• Switching costs by multi channel strategy• Focus on brand(s)
Resources
• Catalog sellers
• Channel conflicts
• Disruption in retailing (Christensen and Tedlow, 2000)
Reasons for using the internet
Channel Price
per transaction
Web $ 1
Call $ 10
Retail $ 50
Personal sales $ 200Simons et al. (2002)
2.3 Strategy perspective
• The multi-channel strategy
Advantages internet
• Costs reduction
• Differentiation
• Defensive
Disadvantages internet
• Perceived risk (lack of trust)
• Delivery and return problems
• Impersonal relationship
• No psychical inspection
The solution
• BRICKS AND CLICKS
Adding the internetChannel used
Original purchase
Purchases during 24
month period
Catalog only 76.2 % 68.8 %
Internet only 6.5 % 5.6 %
Store only 17.3 % 13.3 %
Multiple channels
12.3 %
Dholakia (2005)
Channel used in 24 month period
Customer’s channel of entry into database
Catalog Internet Store Catalog only 87.1 % 4.0 % 5.8 % Internet only 2.9 % 50.4% 0.9 % Store only 1.1 % 0.1 % 80.2 % Multichannel 8.8 % 45.5 % 13.1 % Dholakia et al. (2005)
Results
• Multi-channel enhances loyalty, although the results are mixed
• Multi-channel customers buy more (?)
Reasons introducing online banking
INNOVATION CHARACTERISTICS
SECTOR CHARACTERISTICS
DRIVERS Availability of technology
Suitability of banking to online
Costs reductions poss ible
Ability to deal with customers
Other banks adopting
Competitive forces
Consumer demand (long term)
Government influence
INHIBITORS Ability to deal with customers
Rapidity of technological change
Legacy systems
Bandwidth
Lack of innovative culture
Consumer demand (short term)
Source: Bradley and Stewart, 2003
Factors influencing multi-channel strategy in financial industry
Transaction cost analysis Marketing considerations Strategic considerations
Asset specificity
Behavioral uncertainty
Environmental uncertainty
Customer target heterogeneity
Brand position
Size/dispersion of the
consumer target
Channel conflict
Product sophisticat ion
Purchase importance to
consumers
Channel capabilities
Resources and scale
and scope economies
Competitive intensity
Competitive strength
Relative bargaining power
Strategic goals
Source: Coelho and Easingwood, 2003
The research shopper
• Attribute driven decision making
• Lack of channel lock-in
• Cross channel synergy
Verhoef et al. (2005)
The research shopper
Transaction offline Transaction online Information Same channel/retailer 69.2 % 73.6 % Other retailer/other channel 20.4% 24.6 % Same retailer/other channel 10.4 % 1.8%
Van Baal and Dach (2005)
E-Business: the perspectives
Technology perspective
(4)
Financial perspective (3)
Industry perspective (2)
Consumer perspective (1)
E-Business
3: Financial perspective
Electronic Business Models
Content
• Definitions
• Old & new business models
• Business models
• Cases
• Assignment
Business model
• What is a business model
Definition (Timmers, 1999)
• An architecture for product, service and information flows, including a description of the various business actors and their roles; and a description of the potential benefits for the various business actors; and a description of the sources of revenue
Business models
• Old business models
• New business models
Old business models (or strategy)
• Operational excellence/cost leadership
• Product excellence/differentiation (enhancing the service/product)
• Customer intimacy
New business models
• E-Shop• E-procurement• E-malls• E-auctions• Virtual communities• Collaboration platforms• Third-party marketplaces• Value chain integrators• Value chain service providers• Information brokerage• Trust and other services
Test the audience
• Mention a company per business model
• Restructure the list
Business models and revenues
• E-Shop• E-procurement• E-malls• E-auctions• Virtual communities• Collaboration platforms• Third-party marketplaces• Value chain integrators• Value chain service providers• Information brokerage• Trust and other services
Top 10 web shops Netherlands (turnover, 2007)
• 1. Transavia.com, 456 million
• 2. TUI.nl, 420 million
• 3. Wehkamp.nl, 270 million
• 4. Sundiogroup.com, 246 million
• 5. Airtrade.nl (Airtrade Holding), 240 million
• 6. Bol.com, 171 million
• 7. D-reizen.nl, 110 million
• 8. Albert.nl, 107 million
• 9. Landal.nl (Landal GreenParks), 100 million
• 10. Dexcom.nl (o.a. Dixons en Coolblue) , 100 million
Top 10 webshops Netherlands (No. of purchases,
2006, last three purchases) • Bol.com (14%)• Marktplaats (11%)• Wehkamp (7%)• E-bay (4%)• Neckermann (3%)• ECI (2%)• Ticketservice.nl (1%)• Amazon.com (1%)\• Pabo (1%)• Otto (1 %)
Top 20 by no. of visitors per month (first half of 2008)
• 1 (1) Google.nl• 2 (8) Hyves.nl• 3 (4) Live.com• 4 (3) Marktplaats.nl• 5 (67) Buienradar.nl• 6 (2) Startpagina.nl• 7 (7) nl.Wikipedia.org• 8 (6) Postbank.nl• 9 (9)
DeTelefoongids.nl• 10 (5) Msn.com
• 11 (48) RelatiePlanet.nl• 12 (11) nl.Bol.com• 13 (16) 9292ov.nl• 14 (10) Nu.nl• 15 (13) Hotmail.com• 16 (14) Web-log.nl• 17 (20) RTL.nl• 18 (17) Neck.nl• 19 (12)
ZylonGames.com• 20 (28) Schoolbank.nl8
Value creation (based on 59 e-businesses; Amit and Zott, 2001)
Novelty-new transaction structures
-new transactional content
-new participants
Efficiency-search costs
-selection range
-symmetric information
-speed/simplicity
-scale economies
Lock in
-switching costs
- positive network externalities
Complementaries-between products and services
-between online and offline assets
-between technologies
-between activities
VALUE CREATION
Testing the audience
• Combine the list of business models with the list of value adding; explain by examples
What’s really new about the models
• iTunes
• eBay
• Amazon.com
E-Business: the perspectives
Technology perspective
(4)
Financial perspective (3)
Industry perspective (2)
Consumer perspective (1)
E-Business
II. Technology perspective: the Internet as a channel
Test the audience
• Think about the last new technology you tried (e.g. Mobile telephone, MP3, Internet). What were the reasons for trying it.
• What were the reasons for using (or not using) it after trying.
Relevant theories (1)Theory of Reasoned Action (TRA), Fishbein and Ajzen (1975)
Human behaviour in general Attitude is used and transferred to channel choice set; subjective norms are used to explain the use of a channel; not specific for ICT enabled channels
Theory of Planned Behaviour (TPB), Ajzen and Madden (1986)
Behaviour in situations in which the actor has no complete control
Not used as Perceived Behavior Control is for working situations
Technology Acceptance Model, Davis (1989)
Based on TRA and TPB to explain the use of information systems
Explanation for the trial of electronic channels
Innovation Diffusion Theory (IDT), Rogers (1962)
Adoption of innovations in general
Not used as constructs are not operationalized and it lacks the IT-related variables, which have become important in prediction the use of ICT enabled channels (Pavlou and Fygenson, 2006)
Task Technology Fit (TTF), Goodhue and Thompson (1995)
Use and success of the use of information systems in organizations
Not used as it is a specific model for explaining IS use, originally in working situatons
Information Richness, Daft and Lengel, 1986
Use of different information channels for different situations in organizations
Not used as empirical results are not favourable (Rice and Shook, 1990; Ngwenyam and Lee, 1997; Carlson and Davis, 1998; Otondo et al., 2008)
Relevant theories (2)
Expectancy Disconfirmation Theory (EDT), Oliver (1980)
The continued use of product/services by consumers
Used to explain continuous use
DeLone & McLean IS Success Model, DeLone and McLean, (1992)
Success of an Information System
Not used as user satisfaction does not predict system usage satisfactorily
Social Cognitive Theory (SCT), Bandura, 1986
Behavior of individuals which is influenced by (among others) the behavior itself
Not used as the constructs are included in other theories
Uses & Gratifications (U&G),
The use of different media is formed by diffe rent needs
Not used as gratifications are similar to EDT
Switching behaviour, Keaveney (1995); Roos (1999)
Switching of consumers between service providers
Not used as multi-channel implies the use of several channels
SERVQUAL, Parasuraman, Zeithaml and Berry, 1985
Model for measuring service quality
Used in the definitions of end-states
Consideration set (evoked set), Howard (1963)
Consumer choice of a brand Used in explaining decision making process and transferred to channel choice set
Multi attribute attitude model (Fishbein, 1963)
Consumer decision making model
Used in explaining decision making process
TAM
• Theory of reasoned action (Fishbein and Azjen, 1975)
• Theory of planned behavior (Azjen and Madden, 1986)
• Technology acceptance model (Davis, 1989)
ATTITUDE
SUBJECTIVE NORMS
BEHAVIORAL INTENTION BEHAVIOR
Theory of reasoned action
ATTITUDE
SUBJECTIVE NORMS
BEHAVIORAL INTENTION BEHAVIOR
PERCEIVED BEHAVIORAL CONTROL
Theory of planned behavior
Notani (1998)
TAM
Schubert (2002)
Two most important variables
• Perceived usefulness (PU)
• Perceived ease of use (PEOU)
• Cf. Rogers’
- Relative advantage
- Compatibility and complexity
The results from the literature
• Perceived usefulness is the number one factor
• Is linked with a number of other constructs (trust, perceived risk, control, task or decision making stage, enjoyment)
DeLone & McLean Success Model (1992)
• System quality
• Information quality
• Information use
• User satisfaction
• Individual impact
• Organization impact
DeLone and McLean 2004
Results
• Satisfaction with content (information)
• Satisfaction with performance
• Satisfaction is seen as an external variable (Wixam and Todd, 2005)
Innovation of diffusion theory (Rogers, 1962)
ATTRIBUTES THAT INFLUENCE ADOPTION:
• Relative advantage (economic, status)
• Compatibility (values, beliefs, needs, life style)
• Complexity
• Triability
• Observability (visible to others)
Innovation possibilities
• Improvement of existing attributes• New attributes to existing products or
services• Entirely new product or service
Bagozzi and Lee, 1999
Results
• Later adopters discontinue more than early adopters (expectation-reality gap)
• Hardly used for e-Commerce research
Expectation-disconfirmation theory
Expectation (t1)
Perceivedperformance(t2)
Confirmation(t2)
Satisfaction(t2)
Repurchaseintention(t2)
Results
• Satisfaction (and perceived usefulness) are strong predictors of the intention to continuous use
• Desires versus expectations in explaining satisfaction (desire with trial and expectation with adoption)
Other aspects
• Habits
• Past behavior/experience
Test the audience
• Form groups of four students
• Prepare a laddering interview
• Subject: use of a channel for financial services
Building the model: TAM as an explanation for trial of the new channel
Perceived Usefulness (PU)
Perceived Ease of use (PEOU)
Behavioral Intention to Use (BI)
Actual system use
External Variables
Attitude toward using (A)
(green = TRA; red = TAM)
Building the model: TAM and the channel choice set
Perceived Usefulness (PU)
Perceived Ease of use (PEOU)
Channel choice set (BI)
Actual channel use
External Variables
Attitude toward using (A)
(TRA; TAM; Consideration set)
The channel choice set: multi-attribute model
Attribute Evaluation Beliefs (weight) Channel 1 Channel 2 Channel 3 Risk + 3 + 2 + 2 + 1 Advice + 1 + 3 + 1 - 1 Speed + 2 - 1 + 1 + 3 Ease of use + 4 + 2 + 1 + 1 Total 15 13 12
The model
PU
PEOU
Channel choice set
Actual channel use
External Variables
Attitude
(Dis)confirmation of expectations
Context specific weight factors
Trial of newICT enabled channel
Multi channel use
(TRA; TAM; Consideration set; multi attribute model; EDT)
Defining the attributes based on research literature
• Problem: research results on different levels
Means-end model
Desired end-states (E) (describes the goals of the person)
Consequences (C) (describes the user/service interaction)
Attributes (A) (describes the service)
Literature research results (1)TAM LITERATUR E OTHER IS THEORIES SERVICE
QUALITY LITERATUR E
OTHER MARKETING LITERATUR E
Performance (C) Convenience (E) Efficiency (E) Assortment (A)
Speed (A) Trust (C) Fulfilment (E) Information available (A)
Effectiveness (E) Efficacy of information acquisition (A)
Availability (of the system) (A)
24/7 availability (A)
Easier (C) Efficiency (E) Privacy (A) Social interaction (C)
Productivity (C) Ease of use (C) Ease of use (C) No waiting (C)
Useful Performance (C) Information accuracy (A)
No transportation time (C)
Greater control (C) Perceived control (C) Functionality (A) Chance of a better deal (C)
Quality of decision making (C)
Convenience (E) Perceived risk (E)
Better decisions (C) Perceived risk (C) Switching costs (A)
Saves money (C) Time saving (C) No physical inspection (A)
Ease of use (C) Service quality (E) Delivery time (A)
Literature research results (2)
TAM LITERATUR E OTHER IS THEORIES OTHER MARKETING LITERATUR E
Perceived usefulness (C)
Time and place independent (A)
Shopping enjoyment (E)
System quality (A) Queue avoidance (A) Product quality (A)
Information quality (A)
Subjective norm (C) Communication cost (C)
Service quality (E) Enjoyment (E) Convenience
Trust (C) Uncertainty (C) Communication time (C)
Perceived risk (E) Transaction cost (C)
Enjoyment (E) Transaction time (C)
Social Presence (C) Security (C)
Delivery cost (C)
Delivery time (C)
Post-sale service (A)
Results regrouped
(E) Convenience/ efficiency (TAM)
Uncertainty reduction
Fulfilment (outcome) (EDT)
Social status (TRA)
Enjoyment
(C) Performance, Control, Cheaper, Time saving, Waiting, Transportation time, Communication time, Communication costs, Transaction costs, Transaction time, Delivery cost, Delivery time, Switching costs, Queue avoidance
Trust, Security
Change of a better deal, Cheaper, Quality of decision making, Better decisions,
Subjec-tive norm
Social interaction, Social presence
(A) Easy, Ease of use, Functionality, Availability, Efficacy of information acquisition, Assortment, Information available, Time and place independent,
Physical inspection, Post sale service, Privacy, Information accuracy
Information quality, system quality, Product quality
Next step: laddering
• Laddering technique (means - consequences - end)• Soft/hard laddering• 30 interviews (of which 15 soft
laddering)• Two methods for “generating” attributes:
advantage and ranking
Preliminary results (based on 15 soft laddering interviews)
Plaats onafhankelijk
4
Tijd onafhankelijk5
Direct antwoordPersoonlijk
contact8
Goed geinformeerd
zijn4
Altijd beschikbaar
4
Bespaart tijd16
Meer zekerheid
4
Geen reistijd4
2 2
2
Minder zorgen4
Geen fouten2
2
Soft laddering op basis van kanalen op volgorde van
voorkeur zetten en vervolgens verschillen benoemen tussen kanaal 1 en 2, 2 en 3 etc .
Respondenten :
- 28 jr student- 30 jr systeembeheerder- 36 jr servicemonteur wegenbouw
- 40 jr gehandicaptenverzorgster- 41 jr manager financiele administratie
- 44 jr financieel adviseur- 45 jr assistant begeleider gehandicaptenzorg- 62 jr coordinator kinderopvang
Overzichtelijk4
Gebruikers-vriendelijk
2
Weten hoe het gaat
4
M inde
r foutge
voelig1
M inde
r verwa
rrend1
Minder opletten
2
Sneller kunnen
handelen8
3
6
2
41 1
1 1
Minder inspanning
1
1
Tijd voor belangrijke zaken
in het leven
14
Juiste keuze
4
Goede gemoedsrust
4
1
Vertrouwelijk
1
Bande
n verste
rken
2
Voldoening2
Betere
behandeling
1
1
1
1
4 1
4 1
Snelheid3
13
5
1
1
Wanneer ik wil
3
Onafhankelijkheid
1
1
1
Controle
4
1
2
Makkelijk
communiceren
4
4
3
2
1
Sociaal1
1
1
3
Laatste moment betalen
3
Meer rente3
Geld voor
belangrijke zaken in het leven
2
2
2
2
3
1Veilig
gevoe
l1
1
1
2
1
1
1
A
C
C
C
V
Test the audience
• The results from Finland
Attributes
• (Personal) interaction (10)• Availability: time (9)• Availability: location (7)• Overview (6)• Transportation time (4)• User friendly (3)• Speed (3)• Security (2)
Consequences
• Time efficient (20)• Control (6)• Certainty/no mistakes (6)• Preferable outcome (5)• Guarantee privacy (2)• Effort (1)
Desired end states (values)
• Time for important issues in life (17)
• Peace of mind (10)
• Independency (3)