u-Business Strategy
Fall 2008 (Tue 9:00 – 11:50 a.m.)
Instructor:
K. Kyu Kim
Email:
Phone:
Professor of Information Systems
kyu.kim@yonsei.ac.kr
(02) 2123-4525
Course Materials:
Required Text
Students are required to read the assigned materials in the form of journal
articles, book chapters, and business cases.
Supplementary
Jeffrey F. Rayport and Bernard J. Jaworski, Introduction to e-Commerce, 2nd ed.,
McGraw-Hill, May 2003, ISBN: 0-07-255347-2
Course Description
The application of new media and information technology to business has not only
changed what we know about management, strategy, and business design, but also has
assured us of a continuing and unfolding impact on what managers do and how business
operate in the foreseeable future. All hype aside, there is a truly a revolution here, and we
have little choice but to embrace it.
The most succinct way of characterizing this revolution is to understand that we are
operating today in the New Economy. New Economy businesses have several key traits
in common. Successful New Economy firms must be able to accomplish each of the
following tasks:






Create value largely through the gathering, synthesizing, and distribution of
information
Formulate strategy in ways that make management of the enterprise and
management of technology convergent
Operate in a world characterized by low barriers to entry, near zero variable costs
of operation, and, as a result, intense, constantly shifting competition
Organize resources around the demand side rather than around the supply side
Manage relationships with customers and markets often through “screen-to-face”
channels and interfaces
Use technology mediated channels
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This course aims to equip present and future executives, managers, and strategists in
becoming successful in this sweeping change.
Course Administration
The students are expected to come prepared for every class period by reading the
assigned reading material ahead of time. Class lectures will focus on broadly highlighting
the textbook topics with additional insight using plenty of supplemental materials, and
clarifying student questions. The students are responsible for the contents of the textbook
and the specified supplemental readings except where waived by the instructor.
Attendance and class participation are critical to learning in this course; so, your
attendance for scheduled classes is expected. Absence for a class does not relieve one of
one's responsibility for the subject matter, assignments when they are due and other
course-related issues discussed during that class period.
The course will emphasize the role of groups and a group project. Cooperation and
coordination among group members is expected. The class will be split up into several
groups and each group of two students will analyze a business case and make a class
presentation on the assigned case. Each student’s contribution to the group project will
be evaluated by peers in the group, which will be reflected in the student’s course grade.
Details of the case and the requirements are available in a separate hand-out.
Class Grade:
Your performance in this class will be determined by:
Class Participation
Case Presentation
Homework
Mid-term Exam
Final Exam
Project
5%
10%
20%
25%
25%
15%
100%
Note: Students are expected to take the exams as scheduled. Make-up exams will not be
given unless arrangements are made prior to the regularly scheduled exam and that too
under extenuating circumstances only.
Homework assignments: Students are supposed to summarize a reading article assigned
each week in no more than three pages (typed, single spaced, 12 pitches). Altogether,
each student should turn in 5 article summaries during the semester in order to get a full
credit. At the end of the article summary, students are expected to express their
opinions about the paper. In addition to the article summaries, each student is supposed
to answer case questions (which will be distributed one week in advance) in two pages
for 5 cases excluding the one s/he presents before the class.
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Tentative Course Schedule
* denotes required readings
Week 1 (9/2): Transition from e-Business, m-Business, to u-Business
Readings:
Hagel, J. and M. Singer, “Unbundling the corporation,” Harvard Business Review,
March-April 1999, pp. 133-141.
Fano, A. and Gershman, A. (2002), “The Future of Business Services in the Age of
Ubiquitous Computing,” Communications of the ACM, 45(12), 83-87
*Mangelsdorf, M. (2007), “The Future of the Web,” Sloan Management Review,
48(3), 49-64.
Weiss, L., Capozzi, M. and Prusak, L., “Learning from the Internet giants,” Sloan
Management Review, Summer 2004, pp. 79-84.
Week 2 (9/9): New Business Paradigm: Co-creation Experiences
Case: Koudal, P., Lee, H., Peleg, B., Rajwat, P., and S. Whang, “OnStar: Connecting to
Customers Through Telematics,” Stanford University, Nov. 2004
Readings:
Meyer, C. and Schwager, A., “Understanding Customer Experience,” Harvard Business
Review, Feb. 2007, 1-11.
*Moller, K., Rajala, R. and Westerlund, M. “Service innovation myopia? A new recipe
for client-provider value creation,” California Management Review, 50(3), Spring 2008,
pp. 31-48.
*Prahalad, C. and V. Ramaswamy (2004), “Co-creation experiences; The next practice in
value creation,” Journal of Interactive Marketing, 18(3), 5-14.
Prahalad, C. and V. Ramaswamy (2004), “Co-creating unique value with customers,”
Strategy & Leadership, 32(3), 4-9.
*Prahalad, C. and V. Ramaswamy (2003), “The new frontier of experience
innovation,” Sloan Management Review, 12-18.
Prahalad, C. and V. Ramaswamy (2000), “Coopting customer competence,” Harvard
Business Review, Jan-Feb, 79-87.
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Week 3 (9/16): What is u-Business Strategy?
Cases: Yoffie, D., T. Merrill, and M. Slind (2006) “iPod vs. Cell Phones: A Mobile
Music Revolution?” Harvard Business School
Readings:
Allmendinger, G. and R. Lombreglia, “Four strategies for the age of smart services,”
Harvard Business Review, Oct. 2005, pp. 1-10.
*Grant, R., “The resource-based theory of competitive advantage,” California
Management Review, 33(3), 1991, pp. 114-35.
*Porter, M., “What is strategy?” Harvard Business Review, Nov.-Dec. 1996, pp. 6178.
Prahalad, C. and M. Krishnan, “The Dynamic Synchronization of Strategy and
Information Technology,” Sloan Management Review, July 2002, pp. 24-33.
Shama, A., “E-Coms and their marketing strategies,” Business Horizons, Sept-Oct 2001,
14-20.
Sieber, S. and Sabatier, J., “Market bundling strategies in the horizontal portal industry,”
International Journal of Electronic Commerce, Summer 2003, 7(4), pp. 37-54.
Week 4 (9/23): Identifying Value-Creating Ubiquitous Computing Applications
Cases: Elberse, A., Eliashberg, J., and Villanueva, J. “Polyphonic HMI: Mixing Music
and Math,” Harvard Business School, Sept. 2005
Readings:
*Rayport and Jaworski (2003), e-Commerce, Chapter 2.
Emiliani, P. and C. Stephanidis, “Universal access to ambient intelligence environments:
Opportunities and challenges for people with disabilities,” IBM Systems Journal, 2005,
44(3), pp. 605-619.
*Feeny, D., “Making business sense of the e-Opportunity,” Sloan Management Review,
Winter 2001, pp. 41-51.
Frolick, M. and L. Chen, “Assessing m-Commerce opportunities,” Information Systems
Management, Spring 2004, pp. 53-61.
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Huang, J., “Future space: A new blueprint for business architecture,” Harvard Business
Review, April 2001, pp. 149-158.
*Skarzynski, P. and R. Gibson, “Asking the right questions at the right time: Evaluating
new growth opportunities,” Harvard Business School, Mar 2008, pp. 1-11.
Zwass, Vladimir, “Electronic Commerce and Organizational Innovation: Aspects and
Opportunities,” International Journal of Electronic Commerce, Spring 2003, 7(3), pp. 737.
Week 5 (9/30): u-Business Strategy and u-Business Models
Cases: Bradley, S., T. Eisenmann, M. Egawa, and A. Kanno, “NTT DoCoMo, Inc.:
Mobile Felica,” Harvard Business School, Nov. 2005
Readings:
*Rayport and Jaworski (2003), e-Commerce, Chapter 3.
Andersson, M. and R. Lindgren, “The mobile-stationary divide in ubiquitous computing
environments: Lessons from the transport industry,” Information Systems Management,
Fall 2005, pp. 65-79.
*Harvard Business School, “Building a business model and strategy: How they work
together,” Oct. 2004
Junglas, I. And R. Watson, “U-Commerce: A conceptual extension of e-Commerce and
m-Commerce,” Proceedings of the Twenty-Fourth International Conference on
Information Systems, 2003, Seattle, WA, 667-677.
*Shafer, S., J. Smith, and J. Linder, “The power of business models,” Business
Horizons, 2005, 48, pp. 199-207.
Week 6 (10/7): u-Business Models: Context Aware Applications
Cases: Herman, K. and T. Eisenmann, “Google, Inc.” Harvard Business School, Jan. 2006
Readings:
*Bradley, N. and Dunlop, M. “Toward a Multidisciplinary Model of Context to
Support Context-Aware Computing,” Human-Computer Interaction, Dec. 2005, Vol.
20 Issue 4, pp. 403-446,
Jarvenpaa, S., K. Lang, Y. Takeda, and V. Tuunainen, “Mobile commerce at crossroads,”
Communications of the ACM, Dec. 2003, 46(12), pp. 41-44.
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*Kuutti, K., “Activity Theory as a potential framework for human computer interaction
research,” in B. Nardi (ed.): Context and Consciousness: Activity Theory and Human
Computer Interaction, Cambridge: MIT Press, 1995, pp. 17-44.
Magretta, J., “Why business models matter,” Harvard Business Review, May 2002, pp. 38.
Markides, C. and C. Charitou, “Competing with dual business models: A contingency
approach,” Academy of Management Executive, 2004, 18(3), pp. 22-36.
Week 7 (10/14): Emerging u-Business Models
Cases: Hart, M., Roberts, M. and Stevens, J. “Zipcar: Refining the Business Model,”
Harvard Business School, May 2005
Readings:
Applegate, L., “Emerging networked business models: Lessons from the field,” Harvard
Business School, December 2001.
*Roussos, George, Peterson, Don, and Patel, Uma, “Mobile identity management:
An enacted view,” International Journal of Electronic Commerce, Fall 2003, 8(1), pp.
81-100.
*Warbach, K. “Syndication: The emerging model for business in the Internet era,”
Harvard Business Review, May-June 2000, pp. 85-93.
Week 8 (10/21): Mid-term 1
Week 9 (10/28): New Marketing Paradigm
Case: Rohm, A., Sultan, F. and D. Wesley, (2005), “The Brand in the Hand: Mobile
Marketing at Adidas,” Harvard Business School
Readings:
Davenport, T., “Competing on analytics,” Harvard Business Review, Jan. 2006, pp. 2-10.
*Kavassalis, P., Spyropoulou, N., Drossos, D., Mitrokostas, E., Gikas, G., and
Hatzistamatiou, A., “Mobile permission marketing: Framing the market inquiry,”
International Journal of Electronic Commerce, Fall 2003, 8(1), pp. 55-79.
Sultan, F. and A. Rohm, “The coming era of ‘Brand in the hand’ marketing,” Sloan
Management Review, Fall 2005, 47(1), pp. 83-90.
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*Sultan, F. and A. Rohm, “How to market to generation M(obile),” Sloan Management
Review, July 2008
*Watson, R., Berthon, P., Pitt, L. and G. Zinkhan, “Marketing in the Age of the
Network: From Marketplace to U-Space,” Business Horizons, Nov. 2005, pp. 33-40.
Week 10 (11/4) u-Business Technology Infrastructure: Platform-Mediated Networks
Cases: Eisenman, T. and J. Wong, “Electronic Arts in On-line Gaming,”
Harvard Business School, Oct. 2006
*Eisenman, T. “Platform-mediated networks: Definitions and core concepts,” Harvard
Business School, Sept. 2006, 1-35.
Eisenman, T. “Winner-Take-All in Networked Markets,” Harvard Business School, Sept.
2007, 1-15.
*Eisenman, T., J. Parker, and Van Alstyne, M., “Strategies for two-sided markets,”
Harvard Business Review, Oct 2006, pp. 2-10.
Gawer, A. and Cusumano, M. “How companies become platform leaders,” Sloan
Management Review, Winter 2008, 49(2), pp. 28-35.
*Weill, P. and M. Vitale, “What IT Infrastructure Capabilities are needed to implement eBusiness models?” MIS Quarterly Executive, 2002, 1(1), pp. 17-34.
Weill, P., M. Subramani, and M. Broadbent, “Building IT infrastructure for strategic
agility,” Sloan Management Review, vol. 44, No. 1, Fall 2002, pp. 57-65.
Week 11 (11/11): Strategy Implementation
Cases: Yoffie, D. and M. Slind, “TiVo 2007: DVRs and Beyond,” Harvard Business
School, Dec. 2007
Readings:
*Crittenden, W. and V. Crittenden, “Building a capable organization: The eight levers of
strategy implementation,” Business Horizons, 51, 2008, pp. 301-309.
*Reichheld, F. and P. Schefter, “E-Loyalty: Your secret weapon on the Web,” Harvard
Business Review, July-Aug. 2000, pp. 105-113.
*Timothy, R., Breene, S., Nunes, P. and W. Shill, “The chief strategy officer,”
Harvard Business Review, Oct. 2007, pp. 2-10.
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Venkataraman, N., “Five steps to a dot com strategy: How to find your footing on the
Web,” Sloan Management Review, Spring 2000, pp. 15-28.
Willcocks, L. and R. Plant, “Pathways to e-business leadership: Getting from bricks to
clicks,” Sloan Management Review, Spring 2001, pp. 50-59.
Week 12 (11/18): Metrics
Cases: Young, A. “MedNet.com confronts ‘Click-Through’ competition,”
Harvard Business School, April 2007
Readings:
*Anthony, S., Johnson, M., Sinfield, J. and E. Altman, “Innovation metrics,” Harvard
Business School, July, 2008, pp. 1-15.
DeLone, W. and McLean, E., “Measuring e-Commerce Success: Applying the DeLone &
McLean Information Systems Success Model,” International Journal of Electronic
Commerce, Fall 2004, 9(1), pp. 31-47.
*Kaplan, R. and D. Norton, “The Balanced Scorecard: Measures That Drive
Performance,” Harvard Business Review, Jul/Aug. 2005, Vol. 83 Issue 7/8, pp. 172-180
*Reichheld, F., “The measure of success: Better metrics for customer satisfaction,”
Harvard Business School, Feb 2008, pp. 1-21.
Week 13 (11/25): Legal Challenges to u-Business
Cases: Casadesus-Masanell, R., A. Hervas, and J. Mitchell, “Peer-to-Peer File Sharing
and the Market for Digital Information Goods,” Harvard Business School, Jan.
2006
Moon, Y. “Online Music Distribution in a Post-Napster World,”
Harvard Business School, Sept. 2005
Readings:
*Anand, B. and A. Galetovic, “How Market Smarts Can Protect Property Rights,”
Harvard Business Review, Dec. 2004, pp. 1-8.
Chaudhry, P. “Changing Levels of Intellectual Property Rights Protection for Global
Firms: A Synopsis of Recent U.S. and E.U. Trade Enforcement Strategies,” Business
Horizons, 49, Nov. 2006, pp. 463-472.
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*Costello, A. and T. Costello, “Defining property rights: The case of knowledge-based
resources,” California Management Review, Apr. 2005, pp. 143-155.
Week 14 (12/2): Group Project Presentation
Week 15 (12/9): Final Exam (Attending ICIS)
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