Unemployment the Role of
Information Technology and the
Internet, in the 21st Century.

By Dr Costas Kyritsis
(http://preveza.teiep.gr/kyritsis)
(September 2006)
Outline of the presentation


Part 1 : Unemployment; How much, Where,
When, How, Why. New macroeconomic cognitive
principles , and new understanding of the
emerging workplace of the 21st century.
Part 2: How the web in the society of information
is absorbing unemployment. New insights to the
subjectivity of the self-employed individual. New
techniques of web-sites for e-business and
remarkable cases from unemployment to
innovative e-business success
Detailed Preview of the Presentation :
Unemployment





PART1 1) We analyze with
meaningful and reliable statistical
data the macroscopic situation and
its dynamics of the unemployment
in Europe , USA, Canada.
2) We discuss the hidden and long
term macroeconomic reasons for
this phenomenon.
3) To do so we introduce some of
the basic tools in macroeconomics
like:
3) Power and Pareto distribution of
the size of organizations (as an
instance of a more general law that
appears also in physics, the web,
ecology and even astrophysics) We
explain the emergence of this law
from randomness and evolution
4) We formulate the win-lose war
of business competition and the
win-win peace of business





cooperation as linear coupling
system, and with Volterra equations
(that were first introduced in
ecology)
5) We deduce increase of
unemployment by the win-lose war
of business competition and
decrease by the win-win
cooperation which we term as
“complementarity”
6) We explain also unemployment
as a temporary symptom of fast
social transformation due to
technology advance and growth
7) We describe the new workplace
of the 21st century as a shift to a
less smooth shape of the Pareto
distribution, where selfemployment is increasing fast
trying to absorb the unemployed.
8) We also discuss governmental
social welfare and moral issues of
the unemployed
Detailed Preview of the Presentation :
Techniques for Self-employment in the web



PART 2 1) We analyze the
requirements and advantages of
small e-business for a selfemployed.
2) We analyze all the necessary
spirit, mind-set , beliefs, and
emotional intelligence about
money, success in goals, risk, and
business socialization, for the
individual
These elements may be a radical
change to a new type of
subjectivity compared to the
standard of the past of a typical
employee that is compensated for
his duration rather than his
innovation
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3) We give a detailed technical
description of the functionalities
and features that are required for a
successful site in e-business
4) Finally we describe remarkable
cases from unemployment to
successful innovative e-business in
a) New Internet marketing
techniques
b) New information products and
services
c) Web Advertising
d) Information technology tools
e) Retail e-commerce
Part 1: The Statistics of Unemployment
Unemployment Rates in Europe
The time trend of Unemployment
Rates in Europe
Unemployment Payments
Qualifying time periods of employment
before entitlement of unemployment payment
Maximal duration of
unemployment payment
Unemployment payment as
percentage of salary
The Remarkable difference of Europe and
USA in supporting unemployment and selfemployed

USA:

Europe:

No tax advantages for the
unemployed that turns to selfemployment in health insurance
and retirement plans compared to
employees of large company
Serious disadvantages in the
payments and terns of health
insurance and retirement plans for
the self-employed compared to the
employees of a large company
No unemployment payments by the
governments except of small
compensation by the employer
when firing
No government financing of
continuing training of unemployed
to new types of jobs and skills

Same tax rules in health
insurance and retirement plans
for employees and selfemployed
Same advantages in in the
payments and terns of health
insurance and retirement plans
for the self-employed compared
to the employees of a large
company
Significant unemployment
payments by the governments
especially in the Europe of 15
EU financing of continuing
training of unemployed to new
types of jobs and skills
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Sources for comparisons in
unemployment payments
Statistical Sources for USA and
EU
• USA:
• Census bureau,
http://www.Census.Gov/
• Bureau of labour statistics,
http://www.bls.Gov
• Bureau of economic
analysis,
http://www.Bea.Gov/
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
Europe:
Eurostat,
http://epp.eurostat.ec.euro
pa.eu/
Phenomenological Reasons of
Unemployment
The macroeconomic realm as a network:
Input-Output equations 1

The macroeconomics realm can be formulated as a network where
each node represents a production organization. Then simple linear
equations resembling the Kickoff equations in electrical engineering of
circuits, formulate the production transformation in the production
organization. We set one equation for each kind of produced good or
service. Input are the raw materials and output the volume of produced
goods or services. The input and output volumes are the linear
variables. In such output and input services, can be included the
financial services too. The coefficients of the above linear equations
are related to technology or financial services strategy decisions. The
first to study in a systematic way such linear systems of input-output
equations was the Nobel price winner W. Leontief during 1950-1960.
Some Resources for
Macroeconomic Models
One of the world largest
online Library:
http://www.questia.com/
 An online simulation of a
macroeconomic model by
Ray C. Fair
http://www.bized.ac.uk/virtua
l/economy/
http://www.ifs.org.uk/

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“Linear programming and
economic analysis”
by R. Dorfman P. A.
Samuelson, R. M. Solow,
Dover 1958
“Macroeconomics:An
introduction to advanced
methods”
By William Scarth
Editors: Harcourt Brace &
Company, Canada, Ltd
1996
The Island Parable of Unemployment : Your
Wealth Is My Wealth, Pareto Optimality
10 fishermen in an isolated island
fish with strings
2 operate the fishing net 80%
unemployment
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Possible solutions:

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“Socialistic”80% taxes to
unemployment compensation
The wealth of the 10 remains the
same
Educate the 8 fishermen to do
Agriculture (2)
Woodcrafts from the small wood
(2)
Use of a mile in the little river of
the island (2)
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Little hydraulic water channel
systems from the small lake were
the small river goes in the island
(2)
Finally the new wealth of the 8
fisher men is aso the wealth of the
2 operating the fishing net, in total
higher wealth than the initial of the
10 fishermen
Pareto principle: The wealth of part
of a society is not necessarily the
poverty of another part of the
society.
At the limit were the latter srats to
happen, the structure of the society
would be Pareto optimal.
Example of Cases of technological growth
and unemployment
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1979-1980s carburetor
and electronic fuel
injector
(300,000 displayed)
1985-1990s vinyl and
CD’s
(2 billion $ industry,
100,000 employed )

.Com revolution and
the new millennium
(10 million displayed
during 1990s)
The “unemployment recession”
1991 in USA
Year
1988
1989
1990
1991
1992
Unemployment 6,701
(millions)
6,528
6,874
8,426
9,384
GDP
(billions $)
$2,509
$2,679
$2,929
$3,284
$4,900
Reasons for Unemployment: the Modern
Macroeconomic Perspective
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The major reason for
unemployment:
1) Technology transformations in
USA and western Europe in the
society of information
2) Further radical similar
transformations are expected in the
future when the present car engines
shall be substituted with new that
consume hydrogen and oxygen
with no CO2 emissions (expected
before 2020)
2) Political transformations from a
soviet union society to free
societies of eastern Europe
3) Similar transformation in china
4) Overpopulation in 3rd world
countries
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A different local
reason during
technology
transformation for
unemployment:
The War of
Competition and winlose interplay
Linear coupling differential models for winlose and win-win interactions 1
Economics Interpretations and
conditions
X volume of sales of enterprise A
 Y volume of sales of enterprise B
 Positive growth of the two enterprises: a>0
d>0
 Win-win interplay: b>0 , c>0
 Win-lose interplay: b<0 c>0


In the case of win-win all a,b,c,d >0 and as x>0 and y> 0 it is easy to
deduce that also dx/dt >0 , dy/dt >0 in other words both enterprises in
interplay increase in size
Linear coupling differential models for winlose and win-win interactions 2
Classification of the qualitative
dynamics
In the next graphs, the possible solutions permit the same
graphs with the arrows going in the opposite direction
Details of Vortex points
Nodal Point
Saddle Point
Degenerate Nodal Point a
Degenerate Nodal Point b
Vortex Points
Spiral Points
Possible Solutions
Win-Lose:spiral point (vortex point not
possible)
 Win-Win:
 A) ad<bc: Saddle point


B) ad>bc: Nodal Point
Long term Results a

Win-Lose: Spiral-->One of the two
enterprises shall end to bankruptcy.

This has as effect lower macroeconomic growth and
increased unemployment
Win-Win:
 saddle point-->Both enterprise grow larger
 nodal point-->Both enterprise grow larger.


This has as effect larger macroeconomic growth and
decreased unemployment
Volterra equations
Volterra oscillations of the two
populations
Volterra Spiral points
Resources for the differential models and
Volterra equations in populations
Lectures on ordinary
differential equations
Witold Hurevicz
The MIT pres 1958


Models in ecology by J.
Maynard smith Cambridge
university press 1974
Long term Results and
conclusions
In the “business war” of competitive winlose interactions the macroeconomic growth
is less and unemployment more
 In the “business peace” of complementary
win-win interactions the macroeconomic
growth is more and unemployment less

Unemployment reduction and
Growth through complementarily
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In addition during growth, after the new technology
transformation in society, the Business Interactions should
be more towards complementary alliances (win-win), than
excluding competition (win-lose)
That corresponding situation in microeconomics rather than
macroeconomics, is known in the context of total quality
management
In total quality management the “all stakeholders win”
approach has been proved the best for radical
transformation of the enterprises.
A similar opportunity exists in the domestic economy
instead of the microeconomic enterprise
Statistical patterns in Evolution and Growth:
The power law and the Pareto rule


The universal law of the
power statistical
distribution of the size of
evolving entities in a
system.
This law appears in many
scales in the world and in
many sciences like:
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1) Physics
2) The web
3) Macroeconomics
4) Ecology
5) Astrophysics
etc
When the size of the
entities has a lower bound
the distribution is the
Pareto distribution
Resources
Resources for Statistical Tables

CRC standard probability and statistics
tables and Fornulae by daniel ZillingerStepen Kokosa Chapman&hall/CRC 2000
In physics:

If we through some water from a glass in a
mirror, the population of water drops on the
glass in not the normal distribution, but the
Pareto distribution!
In the web: The size in pages and number of
links of the sites in the Web follows a power
distribution
Source:
The Laws of the Web Bernardo A. Huberman
The MIT press 2001
In economics: US Firm demises
Resources for US firm demises
Firm demise=firm extinction
In macroeconomics
The income of the population
 The size of the enterprises
 The consumption size of energy of the
enterprises
 Follow the Pareto distribution
 Also : The size of villages, towns and cities
follows the Pareto distribution

The above permit the famous
Pareto rules
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“More than 80 % of the population possesses less
than 20% of the total wealth”
“More than 80% of the total power in the planet is
consumed by less than 20% of the countries”
“More than 80% of the problems in a company are
created by less than 20% of the employees”
“More than 80% of the result is attained by less
than 20% of a total effort, the next 20% of the
result requires more than 80% of a total effort”
Statistical patterns of growth in
Ecology:life time of species
Fig. 1. Numerical sample of the lifetime probability distribution function with parameters d1 = 1, b1 = 1 5 x 10-5, b0 = d0 = 10
Pigolotti, Simone et al. (2005) Proc. Natl. Acad. Sci. USA 102, 15747-15751
Copyright ©2005 by the National Academy of Sciences
Resources for the power law in
ecology


Dipartimento di Fisica, Università
di Roma "La Sapienza," P.le A.
Moro 2, Rome 00185, Italy;
¶School of Informatics, Indiana
University, Bloomington, IN
47408; ||The Abdus Salam
International Center for Theoretical
Physics, Strada Costiera 11, 34100
Trieste, Italy; and Dipartimento di
Fisica, Università di Padova and
Istituto Nazionale di Fisica
Nucleare, via Marzolo 8, 35131
Padua, Italy
Edited by Burton H. Singer,
Princeton University, Princeton, NJ
and approved September 7, 2005
(received for review March 31,
2005)


Species lifetime distribution
for simple models of ecologies
Simone Pigolotti , ,
Alessandro Flammini , ¶,
Matteo Marsili , ||, and Amos
Maritan ,
In Astrophysics: Stellar mass
Statistical Patterns of growth in
Astrophysics:Reference
How a Power Distribution is Derived from
Randomness and Growth
It can be proved in mathematics that that All the next
lead to a power distribution of the size of
exponentially growing entities:
 Same initial sizes, different growth rate or age
 Same initial sizes and age, different growth rate
 Uniformly randomly different division of initial
sizes (e,g. by a Poisson distribution) , same or
different growth rate or age
The workplace of the 20th century in more
detail in US: Employees unions and
unemployment
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First part of 20th century:
Roosevelt's new deal
legislation in social profession’s
safety, saves US from a
totalitarian revolution
(in 1933 crisis: 34 from 48
states with no or only partial
banking services!
Unions : less than 3 million
members
Roosevelt's new deal increases
them to 8 million by 1938
By 1955 24,4% of the labor
force were union members)

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
Last part of 20th century:
The decline of life-time
employment and the
social safety of employees
in unions
By the end of 1992 the
union members fall to
15,8% of the labor force
Source:US Department of
Commerce, Bureau of
census, Abstract 1993 p
689
The parable of the Shooter and
the Goalkeeper
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Failure and success
Unemployment:When
success seems as failure
The boy plays the ball as
shooter and goalkeeper at
the same time, meaning
the successful shooter, the
father misunderstands it as
being a failure goalkeeper
in disappointment
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The time scales and
the conception of
social reality:
Success or failure is
defined only at
relevant to a time
scale.
The new workplace of the 21st
century
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
Corporations cannot
provide life-long
employment
They appear new
“large companies”
with only topmanagement and the
major part of the
operations with
outsourcing

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The anticipated new
shape of the power
distribution of
organization sizes is
less smooth
The majority of
employees as selfemployed
professionals
The workplace of the 21st century and the
power distribution

The older smooth shape of the
power distribution

The anticipated 21st century
new shape of the power
distribution
21st century economics tend to a more abrupt shape of the pareto
curve, where a smaller minority of even larger organizations appear,
together with a larger majority of smaller enterprises or self-employer
individuals
The
What Unemployed and Internet
Self-employed Mostly Need
Cash to support them at least for 6 months
 Continuing health insurance, and that are
relieved by its payments
 Continuing retirement plans, that are
relieved by their payments
 Re-education for new skills of new jobs

The Governments Challenge of
Unemployment
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USA: Governmental unemployment
compensation, by the government besides the
employer
Financed by the Government education of the
unemployed to new technology job skills
EUROPE: Permanent free education for
unemployed to new technology job skills
Relief to unemployed of the health insurance and
retirement payments during unemployment
Individualism and its economic emotional
intelligence within the global micro and
macro-economics

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In view of the previous and the new shape of the Pareto
distribution of wealth in societies, the self-reliance of the
individuals takes a very significant role
This self-reliance , which cannot be a parental-family
reliance anymore, requires a new type of personal
psychology, emotional intelligence (not to say intellectual
intelligence too) and world-view.
The older views that the government, my employer, or
someone else is responsible for my financial well being is
not adequate anymore
Detailed Retrospection of the Presentation :
Unemployment





PART1 1) We analyze with
meaningful and reliable statistical
data the macroscopic situation and
its dynamics of the unemployment
in Europe , USA, Canada.
2) We discuss the hidden and long
term macroeconomic reasons for
this phenomenon.
3) To do so we introduce some of
the basic tools in macroeconomics
like:
3) Power and Pareto distribution of
the size of organizations (as an
instance of a more general law that
appears also in physics, the web,
ecology and even astrophysics) We
explain the emergence of this law
from randomness and evolution
4) We formulate the win-lose war
of business competition and the
win-win peace of business





cooperation as linear coupling
system, and with Volterra equations
(that were first introduced in
ecology)
5) We deduce increase of
unemployment by the win-lose war
of business competition and
decrease by the win-win
cooperation which we term as
“complementarity”
6) We explain also unemployment
as a temporary symptom of fast
social transformation due to
technology advance and growth
7) We describe the new workplace
of the 21st century as a shift to a
less smooth shape of the Pareto
distribution, where selfemployment is increasing fast
trying to absorb the unemployed.
8) We also discuss governmental
social welfare and moral issues of
the unemployed
Part 2: How unemployment is
absorbed and the role of the web

How the web in the society of information is
absorbing unemployment. New insights to the
subjectivity of the self-employed individual. New
techniques of web-sites for e-business and
remarkable cases from unemployment to
innovative e-business success
Technology advance and the
price of goods
A typical product
from 1960s till
1990s
1960s
Percentage
1990s
Percentage
Distribution Cost
$150
50%
$70
70%
Production Cost
$150
50%
$30
30%
Final price
$300
100%
$100
100%
The forgotten role of the Internet and
economic growth
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The web is not only a network where we can download
free software and music, dvd, and video games.
Its main forgotten role is probably as a new system of
distribution of goods and services
In this distribution the major role is played by the
education of the consumer, and the information distribution
at first of the variety of goods and services before material
distribution of the goods.
In doing so new educational, and information goods and
services are created.
Which in its turn is a great opportunity for wealth creation,
reduction of the prices of goods, and absorption of
unemployment
Statistics of the Internet E-commerce
USA
Percent of Total
Estimated Quarterly U.S. Retail E-commerce Sales as a Percent of Total Quarterly Retail Sales:
4th Quarter 1999–2nd Quarter 2006
The Internet Democratizes and
Globalizes

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The internet has no
hardware constraint of
central star-topology
structure
It is therefore highly stable
in destruction of parts of it
and therefore democratic
too


The direct site-to-site and
server-to-server
interactions and the
increasing use by all
countries makes it global
This globalisation gives a
stabilisation and balancing
role in the 1st-2nd-3rd
worlds with huge
intelligence and economic
benefits to the less
advanced parts of the
world.
Advantages of Web-based Small Business
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Zero mailing costs
Instantaneous delivery
24/7/365
Unlimited expanding customer
base from the entire world
Almost zero overhead
Stay home in your t-shirt
Interactive multimedia
marketing
Easy to test before you put
money
Low cost of failure

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Operate from any computer in
the internet in the world
Can start almost anyone with
little or no money
Upscale , wealthy , intelligent
customers
Compatible with everyone's
desire: “To do what I want ,
When I want, Where I want,
With whomever I want, Without
having to worry about money”
Successful EQ to overcome unemployment
and make your own business

According to Napoleon Hill:

We
cannot enjoy and be happy
with money riches if we have not the
other 11 types of riches too:
1)
Positive mental attitude to our
goals, and eventually to society
2)
Sound physical health
3)
Harmony in human relations
4)
Freedom from fears
5) The hope of achievement
6) The capacity for faith
7) Willingness to share one’s blessings
8) A labor of love
9) An open mind to other subjects
10) Self discipline
11)The capacity to understand people
12) Economic security
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The elements to success are:
1) A strong desire
2) Ability to involve and sustain faith. and
hope. This may require to use
autosuggestions, learn to reassure and
affirm himself, and show compassion and
mercy to himself.
3) Specialized knowledge in the goods and
services but also in business procedures
4)An organized plan that it is run by
cosmic habitforce and personal habitforce
5) Ability of fast decision making and slow
change of mind on the initial decisions
6) Persistence in the goals
7) ability to appreciate group power even
as self-employed
8) Understanding of the mystery of sex
transmutation
9) Freedom from fears and good defense
to negative influences of other peoples
minds
The mind-set that perpetuates
unemployment and poverty
According to Robert Allen:
Having a job is good and ultimately
leads to wealth
Saving your money is a good investment
Debt is bad, avoid it like the plague
Security is good
Failure is bad
Wealth is measured in material
possessions
The government, my employer, or
someone else is responsible for my
financial well being
The acquiring of wealth is a win/lose
game
It takes money to make money
According to R. Kiyosaki the next is a
short list of attitudes that prohibit
us from success:
The love of money is the root of all evil
I shall never become rich
Do not risk
Now it is late
I am not interested in money
There is not enough money for all to
become rich
Live with utter frugality
I have a family therefore all I need is
a good job
I do not feel good, I am fat, I am
getting old
They have tried it, you shall never
succeed
It is not worth trying it
Resources About Unemployed Individual’s
EQ to Succeed Financially
Allen G. Robert [1983] “Creating wealth” Fireside book Simon & Schuster

Allen G. Robert [2004] “Multiple streams of income” John Wiley and sons, Inc
Hoboken N.J.

Allen G. Robert [2006] “Multiple streams of internet income. How ordinary people make extraordinary money”
John Wiley and sons, Inc Hoboken N.J.

Emerson W. [1840]
Philosophical Essays in www.emersoncentral.com
Goleman Daniel [1995]
“Emotional Intelligence” Bantam books

Kiyosaki Robert

Lechter Sharon [1997] “Rich dad poor dad”

Kiyosaki Robert

Lechter Sharon [1998] “Rich Dad’s Cash Flow Quadrant”

Kiyosaki Robert

Lechter Sharon [1998] “Guide to investing”

Kiyosaki Robert

Lechter Sharon [2001] “The business school for people who like helping people”

Napoleon Hill [1937] “Think and Grow Rich” Editor 2004 Ross Cornwell

Napoleon Hill [1965] “The master key to riches” Ballantine books N.Y. Random House Publishing group

Napoleon Hill [1967] “Grow Rich with peace of Mind” Fawcett books N.Y. Random House Publishing group

Napoleon Hill [1971] “You can work your own miracles” Fawcett books N.Y. Random House Publishing group

Paul Zane Piltzer [1995]
“God wants you to be rich” Fireside book Simon & Schuster

Paul Zane Piltzer [2002]
“The wellness revolution” John Wiley and sons, Inc

Stanley T. Ph.D.

Danko W. Ph.D. [1996] “The millionaire next door” Pocket books Simon & Schuster

Stanley T. Ph.D. [2001] “The Millionaire Mind” Andrews McMeel Publishing, Kansas City

The concept of Money as Information in the 21st century: The
financial success of the self-employed individual depends on
its moral conception of money
Organization level in society
Role , value, and definition of
money
0)Object
Valuable object due to contained precious metal
(e.g. coins from gold or silver)
1) Transaction
Means of exchange
2) Individual
An informational measure of personal activities awareness
and a way to freedom of activities and choices. Also a
measure of “share” in the social power ,goods and
services.
3) Enterprise
"Raw material" to organize, hire people and "seed" for
organizational and group activities growth and
multiplication. Also a measure of “share” in the social
power and goods, and a special type of information.
4) Single domestic economy
A measure of internal circulation of the goods and
services, and a special type of information
5) Many domestic economies with many
currencies
.A measure of external interaction of the two economies as
mutual flow of goods and services and a method of indirect
pricing of domestic goods and services of the one
economy from the goods and services of the other
economy
Basic features of the new selfemployed from home in the web
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Starts usually as one
unemployed or insufficient
employed person
Little or no technical
knowledge of computers
Almost no initial capital
Discovery or invention of new
information services to provide
in the public
Discover or invention of new
business concepts and
procedures not always related to
new technologies in the web
Discovery and launching of
new Human-Web Interaction
psychology
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They substitute devotion to the
employer with life-long
devotion to their customers
population
A little above the average
successful business make
80,000$-135,000$ per year
Free education or training and
free online products to the web
consumers, is a most often met
characteristic
They participate in the “society
of information” revolution that
changes humanity and the
balance of 1st,2nd, and 3rd world.
Key functionalities and features
of a successful e-commerce site 1
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6-TRAFFIC CHANNELS (create or join great traffic)
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1) opted-in mailing list rental (non-Spam)
2) e-zines (ads), Blog’s subscribed, RSS feed broadcasting
3) search engines submissions (and ads (SEO)), articles, e-books,
testimonials as free publication
4) free (or paid) classified advertising (in various sites)
5) free (or paid) links-banners on other sites (word of mouse), but
best of all belonging to a large site with already developed high traffic
6) own affiliate programs
Key functionalities and features
of a successful e-commerce site 2
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7-FUNCTIONALITIES OF THE SITE (to maintain, personal fulfillment, increase
traffic, conversion rate, and traffic funnel effect)
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1)
world class content in the form of text, sounds, music, pictures, video etc
(It may include own products electronic or not, with online payment functionality)
Web casting, with videos that can be plaid with windows media player.
2)
free newsletter or e-zine (submitted to directories)
3)
leads generation data base with autoreponder (from freebies, affiliations, ezine subscription etc)
4)
ads and sponsored links
5)
chat or forum hosting, auction hosting, sub-site-hosting
6) freebies and free entertainment for visitors (e-books, e-articles, software
downloads, coupons, quotes, music fulfillment and gratification mp3, photos, video,
games etc)
7)
specialized and local directory search-engine facility and similar information
store (other books and e-products affiliations, and sites services.)
Key functionalities and features
of a successful e-commerce site 3
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8-INCOME FLOWS (delivering a synthesis of different services and products)
1)
main products sales , and resellers rights (information services,
information financial services, collectively written e-books, email courses,
multimedia products, etc)
2)
other’s and own affiliation programs (no merchant account for other’s!)
With doublers.
3)
ads, adsense of google
4)
leads: renting –selling-exchanging
5)
joint venture alliances (discount involved through endorsed offers) based
on the leads database
6) auction hosting commissions
7)
from sales of infrastructure tools services (internet marketing consulting,
software and site-built etc)
8)
selling equity stocks for partnership, or all the site (like real estate price
growth due to astyphilia, also site value growth due to overall web growth)
Resources for models of ebusiness
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Timmers (1999): Timmers, P. (1999),
Electronic Commerce: Strategies and
Models for Business-to-Business
Trading, John Wiley & Sons Ltd.,
Chichester, UK.
Slywotzky (1996): Slywotzky, A. J.
(1996), Value Migration - How to Think
Several Moves Ahead of the
Competition., Harvard Business School
Press, Boston, MA.
Rappa (2000):Rappa, M. (2000),
Managing the Digital Enterprise. URL:
http://ecommerce.ncsu.edu/business
models.html
Tapscott et al. (2000): Tapscott, D.,
Ticoll, D. & Lowy, A. (2000), Digital
Capital - Harnessing the Power of
Business Webs, Nicholas Brealy
Publishing, London.
Gordijn et.al (2001):Gordijn, J. &
Akkermans, J. M. (2001a), ‘Designing
and evaluating e-Business models’,
IEEE Intelligent Systems - Intelligent eBusiness 16(4), 11–17.
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Bollier (1996): Bollier, D. (1996),
The Future of e-Commerce, The
Aspen Institute, Washington, DC.
URL:
http://www.aspeninstitute.org/
Porter (2001): Porter, M. E. (2001),
‘Strategy and the Internet’,
Harvard Business Review (march),
63–78.
Evans & Wurster (2000): Evans, P.
& Wurster, T. S. (2000), Blown to
Bits - How the New Economics of
Information Transforms Strategy,
Harvard Business School Press,
Boston, MA.
Rogers (1995): Rogers, E. M.
(1995), Diffusion of Innovations,
Free Press, New York, NY.
Figure 8: Net Employment Change for Private Sector Employees
and
Self-Employment,
Year-to-Year
(Thousands),
1977-2002 : Self-employment is more stable! :
Canada
Remarkable cases of successful
e-businesses
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Finally we describe remarkable cases from unemployment to
successful innovative e-business in
a) New Internet marketing techniques: Joint venture alliance
b) New information products and services: Affiliation programs and Sites
of Content
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c) Web Advertising
d) Information technology tools:Enablers
e) Retail e-commerce:Auctions
The best example of the win-win
philosophy:Joint venture alliance in
Marketing; all parts win
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“Become the best-man of the
wedding of two non-competitive
professions” No money needed!
Ads response rate without endorsed
offer 1%-3%
With endorsed offer 33%!
Profit increase from the overlooked
asset: 300%!
Participants: 1st businessman with
good customer DB giving the
endorsed offer
2nd businessman giving the
discount
The customers winning the
discount
The introducing consultant
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Example:
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Mike Enlow now a marketing
guru in www.enlow.com made
many million dollars in this
win-win way, and helped
thousands of other to make
money too!
Affiliation programs and Sites of
Content:New methods of free and generous
Internet Marketing
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Affiliation programs are in the
web as the MLM marketing in
the direct human contacts
marketing
Examples:
www.affiliatesdirectory.com
www.refer-it.com
www.associateprograms.com
www.clicquick.com
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Advantages:
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Easy
Makes money fast
Many programs at the same
time
Free marketing training and
tools
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The new marketing
process:
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CONTENTTRAFFIC
PRESELLMONETIZATION
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Selling information: Inventing and
discovering new information products and
services as an example of the
complementarily principle
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Cases:
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Discovering the absence of a
directory in the web gives more
than 100,000 per year, Ruth
Townsend:
www.directoryofezines.com
Discovering and selling new
strategies of learning ,Pat
Wyman:
www.HowToLearn.com
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Discovering and selling online
techniques of hand-made
Jewellery, Preston Reuther :
www.wire-sculpture.com
New forms of advertising in the
Web 1
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Information Relevancy
and adsense of Google
(you are paid to have
relevant references by
google search engine)
Pay per click (you pay to
put such references in
google, and google’s
adsense)
Examples of ad services:
www.drnunley.com
www.TheAdStop.com
ValueClick.com delivers ads to
30% of US web users, Banners are
seen from over 10,200 sites, by 14
million people
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Measuring site’s audience:
www.WebTrendsLive.com
information :100000-150000$
per year.
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E-zines (newsleters)
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Usual rate for banners:12$-35$
Usual rate for e-zine 50 words
classified ad:5$-40$
Usual income from a 14,000
subscribers e-zine ads:1000$2000$ per month
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Advertising in the Web 2
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Selling information
Car-dealer cost info
15$ info price
2000$ DB costs
100000 per year
www.marketingtips.co
m
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Selling advertising:
Free information
300000 traffic per month
Road&Track , Motor
Trend, magazines
35000$ ad price per month
20% of the business=
1million dollars
Enablers:Selling Internet tools for
e-businesses
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Types of Enablers:
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Internet Service Provider (ISP)
Web hosting
Web design
Autoresponders
Listservers
E-Shopping carts
Credit card services
Web site statistics
Product design
Warehousing
Shipping
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Advertising
Copywriting
Marketing Strategy
Joint ventures
Examples:
http://www.marketingtips.
com/mailoop
http://www.milliondollars
ystem.com
Internet Auctions:”Most people take gold and
make it trash, I take trash and make it gold”
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What is sold:
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Method to control fraud:
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Books, Toys, Clothing, Shoes,
Jewelry, Albums,CD’s, DVD’s,
Video games, Old gifts,
anything, etc
The money is sent first
Payments through credit cards,
Paypal, email, eBay’s Billpoint,
checks, money orders, cash by
mail.
It usually requires a web page
e.g. in eBay and an auction ad
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Public feedback system of
points
An “about the seller” page with
photo
Detailed in advance description
of the shipping method
Many types of auctions (e.g.
Dutch auctions with multiple
items to sell)
Duration of auction : usually
one week
Usual price range 0-100$
http://www.ebay.com
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Resources for e-business
The e-code by Joe Vitale-Jo
Han Mok
John Wiley 2005
E-myth mastery By Michael
Gerber HarperBusiness
2005
Multiple Streams of Internet
Income by Robert Allen,
John Wiley 2006
EMoney: The Complete Guide To
Using The Internet To Profit From
Home by Dr. Jeffrey Lant
At http://www.worldprofit.com/ebook/
Detailed Retrospection of the Presentation :
Techniques for Self-employment in the web
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PART 2 1) We analyze the
requirements and advantages of
small e-business for a selfemployed.
2) We analyze all the necessary
spirit, mind-set , beliefs, and
emotional intelligence about
money, success in goals, risk, and
business socialization, for the
individual
These elements may be a radical
change to a new type of
subjectivity compared to the
standard of the past of a typical
employee that is compensated for
his duration rather than his
innovation
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3) We give a detailed technical
description of the functionalities
and features that are required for a
successful site in e-business
4) Finally we describe remarkable
cases from unemployment to
successful innovative e-business in
a) New Internet marketing
techniques
b) New information products and
services
c) Web Advertising
d) Information technology tools
e) Retail e-commerce
Review and Conclusions
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We have analyzed the long-term main
causes of unemployment which is
transformational growth through
technological innovation
We have proved that this transformation
to be at the benefit of most is to be
carrier out with win-win interactions
rather than win-lose that make
unemployment worse
We have shown that the Internet is a
very important element of the
technology transformation, and is
therefore where new jobs are to be
created.
Therefore we indicate that in addition to
better social help at times of
unemployment the main focus should
be in the creation of new types of jobs
in the Internet
In the new economy of the 21st century
more and more individuals must
improve their self-reliance in health
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insurance, retirement plans,
psychological confidence, and business
success.
The 21st century economics tend to
amore abrupt shape of the pareto curve,
where a smaller minority of even larger
organizations appear, together with a
larger majority of smaller enterprises or
self-employer individuals
We have indicated how it is created a
new individual’s EQ for business
success together with entirely new
psychology of human-web interaction.
In addition ,entirely new techniques of
site features and site functionality is
introduced, together with remarkable
innovations of new information services
parallel with great financial success.