Last Revised 2
March 1998
Thursday, 2:30 - 5:30 E52-175
http://mit.edu/ecom
Course Instructors:
Admin. Assistants:
Teaching Assistants:
Office Hours:Via email and by appointment
Syllabus
Jump to:
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| 4/9 | 4/16 | 4/23
| 4/30 | 5/7 | 5/14
Course
description
This seminar examines
the progress and potential of the Internet, World Wide Web, and related
technologies for the marketing, selling, and distribution of goods and
services. Much has happened in this arena and new developments occur at
a high rate. We shall do a scan of the environment with the help of student
projects, guest speakers, readings, and lectures. The goal will be to cover
a selection of important material rather than be encyclopedic.
Topics will include
-
Technology issues, including
basic infrastructure, security, and agents
-
Shopping and search and
their implications for market strategies and structures
-
Pricing, packaging and
distribution of information goods
-
Business-to-business commerce
-
Customization and personalization
-
Online communities
-
Financial markets and
payment systems
Readings
Readings packets will
be available from the Copy Technology Center, E52-045. Occasional additional
readings will be handed out in class and via the web. Please note that
some of the web-based readings require a PDF (Portable Document Format)
viewer, which is available for a number of different platforms from Adobe
Systems Incorporated; look under the heading Adobe Acrobat. http://www.adobe.com/Acrobat/Acrobat0.html
Books for the course
are: (These
books will be on reserve at Dewey Library.)
Required |
Kalakota, Ravi &
Whinston,Andrew Electronic
Commerce: A Managers Guide Addison-Wesley1997 |
Recommended |
-
Shapiro, Carl and Varian,
Hal, Competitive
Strategy for the Information Economy ,Harvard
Business School Press, Due in Mid-1998, Selected Chapters in course pack
-
Hagel, John & Armstrong,
Arthur, Net Gain ,Harvard
Business School Press, 1997
-
Choi, Soon-Yang; Stahl,
Dale. & Whinston Andrew, Economics of Electronic Commerce
,MacMillan Technical
Publishing 1997
-
Schwartz, Evan, Webonomics:
Nine essential principles for growing your business on the WWW,
Broadway Books, 1997
|
Assignments
and other course activities
Team projects
The main student assignments
will be two team projects, undertaken in groups of approximately four people.
The first project is
a research briefing. Its purpose is to develop up-to-date
information on a relevant aspect of electronic commerce and to share it
with the rest of the class and others. In effect, the collection of research
briefings by the class will be part of the text materials for the course.
Since the field is changing fast, such a collection can provide the latest
information for everyone. The briefings will be disseminated via oral presentation,
web posting, and hard copy. The written reports are due the week before
spring break and the collection will come out as a second course packet
when classes resume. Short oral presentations on the briefings will be
worked into the class sessions throughout the semester. The appendix to
the syllabus has a sample list of possible briefing projects and the course
website contains the briefings developed in the seminar last year.
The second project
is a case study built around an existing or proposed activity
in electronic commerce or marketing. Typically, the project might analyze
a specific site in depth, describing its underlying business model and
strategy, indicating what was working, what was not, and how the site or
strategy might be improved. Alternatives might include analyzing a group
of sites, an industry or a prospective business opportunity. The second
project will be reported orally and in writing at the end of the term.
Commercenet
Class preparation
and participation
The readings provide
preparation for the outside speakers and classroom discussion. In addition
to doing the readings, students should access and contribute to class discussions
on the course web site.
Personal
web pages
It is desirable for
each student in the course to have at least some hands on experience with
the technology of web pages. Many students will already have their own
home page, but those who do not are required to bring one up. Please note
that you should not post on your web page any personal information about
yourself that you feel uncomfortable revealing to the outside world. A
lab session will be arranged for those who would like instruction.
Informal dinners
with speakers
Many of the outside
speakers have been invited to go to dinner with a small group of students
after class and several have accepted. The plan is to invite 3-4 students
on a sign-up basis. Priority will be first-come-first-serve except that
individuals doing projects for which a speaker has special relevance will
be given extra preference.
Credit and
grading
This is a 9 unit course
(3-0-6 Level grad credits). Grades will be assigned on the following basis:
Class participation
(including web page) |
1/3 |
Research briefing |
1/3 |
Case study |
1/3 |
SCHEDULE
Feb
5 Electronic commerce and marketing: an overview
Readings
Optional Background Reading:
-
Kalakota & Whinston
ch. 2
-
Choi, Stahl and Whinston,
ch. 2
-
Negroponte, Nicholas,
(1995), Part One, Being Digital, Knopf, pp. 3-85
-
Ward Hanson, (1996), "The
Original WWW: Business Model Lessons from the Early Days of Radio"
(Available in pdf form). This paper looks at another runaway success -
radio in the 1920s. A bit of historical perspective is useful in understanding
an industry as dynamic as the Web - and its impact on Marketing.
Feb
12 Internet Technology
Readings
Optional Background Reading
-
Choi, Stahl and Whinston, ch. 3
URLs
Guest speaker
David
Clark, Internet Engineering Task Force, Senior Research Scientist,
MIT Laboratory for Computer Science
Assignment
Submit names of team
members and tentative topic for first project to TA before class
Optional exercise
Ward Hanson has put
together a nice exercise that shows you how to
trace a packet as it travels across the Internet
Feb
19 Pricing Information Goods
Readings
Optional Background Reading
-
Bakos, J.Y. and Brynjolfsson,
E. Bundling Information
Goods: Pricing, Profits and Efficiency, Working Paper, Sloan School
of Management, Massachusetts Institute of Technology.
-
Hal Varian, Buying, Renting
and Sharing Information Goods
This paper outlines
various circumstances under which such sharing may increase or decrease
producer profits. If a rental market is present, more copies will be sold
at a lower price. This can be more or less profitable than a sales-only
market.
-
Shapiro & Varian,
ch. 3
-
Bakos, J.Y. and Brynjolfsson, E. Aggregation
and Disaggregation of Information Implications for Bundling, Site Licensing
and Micropayment SystemsGoods:," in Internet Publishing and Beyond:
The Economics of Digital Information and Intellectual Property. D. Hurley,
B. Kahin, and H. Varian, eds., MIT Press. In press.
URLs
Guest speaker
Neil
Budde, Editor, Wall Street Journal Interactive Edition
Evan
Schwartz, Author of WEBONOMICS
Assignment
Submit personal
URL to TA.
Feb
26 Shopping and Search
Readings
Optional Background Reading
-
Gates, (1996), "Chapter 8: "Friction Free Capitalism", pp.
180-207.
-
Choi, Stahl and Whinston, ch. 7
URLs
Guest speakers:
Prof.
Yannis Bakos, University of California, Irvine
Tom Furber, VP Hannaford
Bros., Manager, HomeRuns
Mar
5 Business-to-Business E-commerce
Readings
URLs:
Guest speakers:
Mar
12 Business-to-Business E-commerce( Cont.)
Readings:
-
Kalakota & Whinston: ch 5
Optional Background Reading:
-
Kalakota & Whinston: ch 11
Guest speaker
Nirmal Pal, Director,
Network Computing, IBM
Assignment
Project #1 written report due.
Mar
19 No Sloan classes
Assignment
Project #1 website due.
Mar
26 Spring break
Apr
2 Business Strategies on the Internet
Readings
Optional Background Reading
-
Shapiro & Varian, ch. 7, 8
Assignment
Prepare Firefly Case for Discussion
Apr
9 Advertising as a Business Model; Intelligent Agents
Readings
URLs:
Guest speakers:
Tom
Lix, CEO, New Market Ventures, Inc.
Prof.
Paul Resnick, University of Michigan, Chair of W3C Platform for Internet
Content Selection (PICS)
Apr
16 Online Community
Readings
Optional Background Reading
-
A. Chavez and P. Maes, "Kasbah: An Agent Marketplace for Buying and Selling Goods ", Proceedings of
the First International Conference on the Practical Appication of Intelligent
Agents and Multi-Agent Technology, London, UK April 1996.
-
Armstrong, A. J. Hagel III, "The Real Value of Online Communities",
Harvard Business Review, May-June, 1996, ppp. 134-141.
URLs:
Guest speakers
Prof. Pattie Maes, MIT Media Lab, Director, Agents Group
Prof.
Glen Urban, Dean, MIT Sloan School
Apr
23 Banking and the Internet
Readings
Kalakota & Whinston: ch 7
Sirbu, Marvin, Credits
and Debits on the Internet IEEE Spectrum, February, 1997
Optional Background Reading
Choi, Stahl and Whinston, ch. 7
Guest speakers
Dan Schutzer,Vice President
& Director of External Organizations, Standards and Advanced Technology,
Citibank ;President of the Financial
Services Technology Consortium
Professor Marvin
Sirbu, Carnegie Mellon University
Apr
30 No Classes
May 7 Team project presentations
Readings
May
14 No Classes
Assignment
Team project #2 (Case study and analysis): Final written
report due
Appendix:
Sample Research Briefing Topics
Below are a number
aspects of electronic commerce and marketing on the internet that might
make interesting topics for the research briefing that comprises the first
project. A number of the topics were investigated last year but have had
new developments occur since then. The list is by no means exhaustive and
teams are welcome to suggest other topics or modify these
-
The evolving options for
local access
-
Search engines, agents,
and filters
-
Electronic payment systems
-
Privacy
-
Disintermediation
-
Brokers
-
Auctions on the web
-
Intranets
-
Internet advertising
-
Direct marketing on the
internet
-
Security
-
Business to business marketing
-
Pricing strategies for
information goods
-
Successful retailing models
-
EDI on the web
-
Measuring advertising
-
Publishing on the web
-
Log files and their analysis
-
Ad placement software
Problems? Questions? Contact Stanley
Ouyang Last Updated: March 2, 1998
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