(9) the new busines s of consumer data: who pays whom?
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The Networked Economy: Information Management, Strategy, and Innovation 网络经济：信息管理，战略和创新. (9) The New Busines s of Consumer Data: Who pays whom?. Agenda for today. The (Old) Data Revolution Example: Amazon.com Mainly implicit data, some explicit data The New Data Revolution - PowerPoint PPT PresentationTRANSCRIPT
© people & data | www.weigend.com Andreas S. Weigend, Ph.D. 韦思岸教授
The Networked Economy: Information Management, Strategy, and Innovation网络经济：信息管理，战略和创新
(9) The New Business of Consumer Data: Who pays whom?
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0 Agenda for today
The (Old) Data RevolutionExample: Amazon.comMainly implicit data, some explicit data
The New Data RevolutionExample: FacebookMainly explicit dataCustomers start interactingNew business models
The New Consumer RevolutionHow their attitudes to their info changes
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0 Computers, Business and Communication
1970’s “Experts” learn a language the
computer understandsDigitizing back office10M people
1980’s Front office interacts with back
office100M people
1990’s Customers interact with firmSearch: 1bn people poking at stuff
2000’s1bn people poking at stuff100M people producing stuff Peer-production and collaboration Customers interact with customers
NextDiscovery in addition to search Serendipity: Discover what not
searched People in addition to pages Social commerceMobile in addition to PC (and paper) Continuous partial attentionModel current situation plus history Sensing
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0 Who will select the best picture?
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0 Let Amazon.com access your camera and microphone?
November 2007Adobe Flash installed on 820 million Internet-connected computers and mobile devices
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0 Integrated Media Measurement Inc
•IMMI Listening into
your roomevery 30 seconds,for 10 seconds.
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Amount of data
数据量
Data collection and analysis (Amazon.com)数据收集和分析 (Amazon.com)
Level层次
Customer消费者
Orders订单
Session aggregates访问总计
Clicks 点击
Data collected 20072007 年搜集的数据
100 MB
10 GB
1 TB
100 TB
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0 Data in the Digital Networked Economy
•From Stanford Stat252/MS&E238 (Data Mining and E-Business): Clicks
Selection Intention
Search Attention
Engagement Interaction
Relationship Situation
Discovery Location
Mobile phones, GPS• http://aweigend.wikispaces.com/Data+Mining+and+E-business+Stanford+Spring2007
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0 Navigation with two-way internet connectivity
(dash.net)
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0 A data revolution, not a software revolution
Mapping companies did not realize that users can add value…NAVTEQ spent USD 300M to reach breakeven, was acquired by Nokia for USD 8.6B
…vs Amazon.com realizing early on that users can add valueE.g., by reviewing books
Google enables external developers to build services using company’s data
Application Programming Interface When will airlines, banks etc follow?
Group discussion: Develop scenarios for one of your group member’s company’s data strategy?
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0 “Pay as you drive” insurance (Norwich Union)
“ 车开起来再付钱”保险
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0 Buy and trade business cards (Jigsaw)
7M business cards (2007.12)200k membersCommunity correctsJigsaw collects
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0 Give data to get data about applicants (JobScore)
Use information about candidates from interviews at other companies
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Community
Interaction
Participation
Experimentation
Data
Web 2.0
The basis of the Digital Networked Economy is Data
Web 1.0
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Community
Interaction
Participation
Experimentation
Data
Web 2.0
Fast innovation by experimentation (the scientific method)
Web 1.0
加入购物车
去收银台等一下！再加 16.01美元就能……
加入购物车
戴维斯的专辑
Also want to make recommendations!添加推荐 !
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0 Also want to make recommendations!添加推荐 !
购买戴维斯专辑的消费者也买了另两张专辑
想买戴维斯专辑的消费者同时浏览了其它同类专辑
Substitutes (buy instead of)替代（选择购买）
Customers who shopped for X also shopped for Y (based on clicks)Z 买了 X 的消费者也会再
Complements (buy in addition to)互补（额外购买）
Customers who bought X also bought Y买了 X 的消费者会再买 Y
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0 Result: Right vs Left对比结果：左还是右
Metrics 衡量标准
Conversion rate: Percentage of visits placing an order转化率：下订单的浏览者所占的比例 Order size: Number of additional (from the second page) items put into cart 订单大小：（从第二页起）新购商品数量
Result 结果
“Your Shopping Cart” on right is about 1% better than on left “Your Shopping Cart” 置于右侧比置于左侧的效果提高 1%
All customers所有消费者 Existing customers现有消费者Cart-adds from 2nd
page: 从第二页起新购商品数量：+0.6%
Cart-adds from 2nd page:从第二页起新购商品数量：
+0.8%
Wishlist-adds: 选择礼物清单： +1.4%
DVD Cart-adds: 新购 DVD ： +0.8%
DVD (USD): +1.1% DVD (USD): +1.0
%
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Community
Interaction
Participation
Experimentation
Data
Web 2.0
The five levels
Web 1.0
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0 Some attributes of Web2.0
User focus (Me-business, not E-Business)User is at the center of Web2.0 (not the company)VRM (Vendor Relationship Management) not CRM (Customer Relationship Management)
System engineered for feedbackSystem engineered to improve over time by leveraging user data (not deteriorating over time)
Network effectsDemand-side economies of scale (not only supply-side economies of scale)
TransparencyGoogle Maps: Create API for developers to use the data (not increase security)
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0 Participation
IncentivesPay people (e.g., Yahoo directory index)Get volunteers (e.g., Wikipedia)Create self-interest (e.g., BitTorrent)
ParticipationYoutube: 0.19% visits to video uploadFlickr: 0.2% of visits are uploadsWikipedia: 3.89% of visits are edits to entry
Why do people participate?Spread their ideasNeed for belonging
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0 Data: From “Me” to “We”
•Node: The individual Clicks
Logs Intention
Search Why is intra-site so hard?Google (Advertising)
AttentionTags,…Attensa (News)
Location
Links:Relationships between individuals
MySpace, Facebook, XiaoNei ( 校内网 )
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Community
Interaction
Participation
Experimentation
Data
Web 2.0
The five levels
Web 1.0
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0 Where do people go for information?
20 years ago: Produced newsPublicized opinion (“Veröffentlichte Meinung”)
10 years ago: SearchSearch: Already know what you are looking forDiscovery: Find something you didn’t know you were looking for (Serendipity)Blogs, Wikipedia
Now: Social networkDiscover via people you are connected to“Generation C”
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0 Digital Networked Economy: Generation C
Connectivity•Convergence•Cooperation•Community•Creation•Co-creation•Conversation
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0 Conversational Marketing
ConversationBetween whom?
Company
Individuals
down
cast
ing
© people & data | www.weigend.com Andreas S. Weigend, Ph.D. 韦思岸教授
Thank you!
Andreas [email protected]
+1 (650) 906-5906 www.weigend.com
Appendix: Google’s e-commerce
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Google’s role in e-commerce
Google Users
Google helps users more easily and efficiently find merchants and purchase products.
Merchant Customers
* Internet Retailer news, March 6, 2007 ** Custom Analysis by ComScore/Google, Sept. 2006
Search Find Buy
• 51% of internet users are influenced by search engines for their purchases.*
• Google reaches more Internet users worldwide than any other web property or ad network.
• Google receives more than 475 million unique visitors/month.**
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0 Opportunities in e-commerce
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What is holding back eCommerce?
• Long checkout processes• 63% of shopping carts are
abandoned after beginning checkout**
• Too many accounts• Average number of passwords per
internet user: 17** (Source: Verisign, 2004)
• Fear of sharing personal information
• Consumers are afraid of their personal information being compromised
* Verisign, 2004** Online Customer Experience Survey, Allurent, February 2006
Online retail purchases accounted for 2.8% of total retail
sales in 2006.2006 Consumer Purchases
Share by Channel2.8%
97.2% Online salesOffline sales
Total eCommerce sales: $108.7BTotal Retail sales: $3.9 Trillion*
•Quarterly Retail eCommerce Sales, 2006, US Census Bureau•Note: These numbers do not include travel
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0 Google Checkout
Google Checkout is an online checkout process that provides a fast, secure way to buy and sell online.
• Payment Guarantee covers 98% of all Checkout orders
• When resolving disputes, we assume our merchants are honest and trustworthy
Fraud ProtectionLess costMore sales• Free credit card processing
on all Checkout sales until 2008
• Beginning 2008, earn free transaction processing with AdWords
• Google Checkout badge attracts more customers
• Streamlined checkout process increases conversions
For Sellers…
For Buyers…ConfidenceSpeedConvenience
• Single login across the web with sreamlined checkout
• One place to track purchases • Credit card number concealed
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0 Search…Find…Buy…
Shoppers use Google and Product Search to search for items to buy.
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0 Search…Find…Buy…
Product Search and Checkout help shoppers find exactly what they’re looking for and where to buy it from.
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0 Search…Find…Buy…
To buy, shoppers need only click Google Checkout and enter their username/password.
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0 Order History
Google Checkout users can easily manage all of their purchases in a central location.
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0 Success With Google Checkout
Checkout has acquired millions of buyers and thousands of sellers, including 25% of the top 500 merchants.
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“The new Google Checkout badge … has given us a 23% lift in clickthrough rate. And Google Checkout does a great job of helping convert that additional traffic into more sales; customers that use Google Checkout convert 24% more frequently than those that go through our standard checkout process.
– Fred Lerner, Jockey
“Since starting with Google Checkout, business has grown 20 percent per month, the company is saving 50 percent on transaction processing costs, and repeat business is on the rise too: more than 60 percent of new customers who use Google Checkout purchase again within the same month.”
– Floyd Wallace, Coffee Bean Direct