EXPERIENTIAL TEACHING OF IT:ELECTRONIC COMMERCE
2017 IT Teaching WorkshopThe Paul Merage School of Business
University of California, Irvine
D.J. Wu, Ph.D.Brady Family Professor in Management
Professor, Area Coordinator Information Technology Management
May 19, 2017
Thank YOU – Avi, Haim and allfor sharing your experiential teaching experience!
“What a man hears, he may doubt; what he sees, he may possibly doubt, but what he does, he cannot doubt” (Richardson, 1994).
Experiential Teaching in Electronic Commerce (EC)
1. Self-learning, mini-case presentation 2. Games (network game, platform game, fishing game)3. Field trips and live cases 4. Course project (own EC startup business model, Google Online Marketing Challenge, etc.)
Learning in EC: Experiential Learning + Academic Learning
1. New Theories – mostly created by IT faculty members! 2. New Practices – illustrated using startups/firms in GT ecosystem 3. New Methodologies – design thinking and digital experiments (online business model search using A/B testing)
Why learn EC this way? To execute the mission of SCOB as defined in our Strategic Plan
Mission of SCOB
Develop principled business leaders who are innovative, entrepreneurial, analytically skilled, and can leverage technology in a global setting.
Lending
Ride sharing
Media
Healthcare
Lodging
IT sector
The World is on One Net: IT is no longer only a tool;rather IT is an enabler and an engine of growth.
Defining/Redefining Electronic Commerce (EC)
EC is the process of buying, selling, transferring, or exchanging goods, services, information, ideas, or relationships via computer networks.
“eBay of X (or Amazon of Y)”
This Course Focuses on EC Business Model Analysis & Design
Particularly, business model generation/search/design for EC startups
What is a Business Model?
How an organization creates and captures value
This Course Employs Design Thinking
https://www.youtube.com/watch?v=0fKBhvDjuy0
EC Design Thinking: Power of 10
Examples of Internet Business Models
• The Internet Symphony No. 1 – “Eroica”
• YouTube Symphony Orchestra 2011
Examples of Internet Business Models
What is a Business Model?
A business model describes the rationale of how an organization creates, delivers, and captures value
http://www.businessmodelgeneration.com
http://www.businessmodelgeneration.com/canvas
*
strategyzer.com
Key Partners
Key Activities
Key Resources
Value Propositions
Cost Structure
Customer Relationships
Channels
Customer Segments
Revenue Streams
Business Model: 9 Building Blocks
Why Focus on Business Model?
“… great ideas will see the light of day and … even become great business”
Mendelson (2017)
Summary of Business Model: Key Elements
A. Value-Creation Customer segments and product/service offering Differentiated value sources (value discipline) Value chain and your part in it Go-to-market strategy (channels, partnerships)
B. Profit Formula Revenue streams, cost structure, key drives of profitability
C. Business Logic Virtuous cycle, network effects
D. People and Culture
Source: Mendelson (2017), modified.
We Structure the Course in Seven Modules
1.Freemium Business Models (Network Game, Skype, Dropbox, ISS, Kaneva)2.Platform Business Models (Company, OpenTable, Airbnb, Uber, iPhone)3.Open Business Models (TopCoder, Innocentive, Healthtap, Kaneva, BitPay) 4.Long Tail Business Models (Webvan, Netflix, Kindle)5.EC Payments (Ftrans, Visa, Worldpay, Kabbage, Bitpay)6.EC Analytics (Network game, Platform Game, Revenueanalytics, Kabbage, Fishing game) 7. Final course project (own EC startup or GOMC)
Experiential Teaching in EC
1. Self-learning, mini-case presentation 2. Games (network game, platform game, fishing)3. Field trips and live cases 4. Course project (own EC startup business model, Google Online Marketing Challenge, etc.)
“The hands-on activities were challenging, entertaining, and allowed us to really test out our academic theories.”
Games:Network Game, Platform Game, Fishing Game
Experiential Teaching in EC
1. Self-learning, mini-case presentation 2. Games (network game, platform game, fishing)3. Field trips and live cases 4. Course project (own EC startup business model, Google Online Marketing Challenge, etc.)
Field Trips and Live Cases
Field Trips and Live Cases
Field Trips and Live Cases
Field Trips and Live Cases
Field Trips and Live Cases
Experiential Teaching in EC
1. Self-learning, mini-case presentation 2. Games (network game, platform game, fishing)3. Field trips and live cases 4. Course project (own EC startup business model, Google Online Marketing Challenge, etc.)
SnoSpice
Pedro Asencio, Qing Cao, Brett Goodson, Ismail Shah
11
Slide 27
14 IsmailQing Cao,
11 QingQing Cao,
Vayando Team Kindle
Asma Beevi Kuriparambil
Thekkumpate , Aravind Samba Murthy, Rajatha Bhat, Shanay
Kothari, Zhijian Liao
“M-Community”–The EBay of Home Service
“Your class has been transformational for me. You taught me to think critically about business models and I see much more clearly now how to create a strategic advantage through business model choice.”
-- Michael A Sheridan, Evening MBA
Experiential Teaching in EC: Student Feedback
“The hands-on activities were challenging, entertaining, and allowed us to really test out our academic theories.”
“The in-class games were all instrumental in learning.”
Experiential Teaching in EC: Student Feedback
“I loved the field trip to Kabbage and also the games we played in class.”
“Influential Guest speakers, Site visits to start ups”
Experiential Teaching in EC: Student Feedback
“The capstone project, where we had the chance to apply the semester's learnings to a startup idea. Taking all of the class concepts and thinking about them in the context of our own startup was a very beneficial exercise.”
Experiential Teaching in EC: Student Feedback
“The assignments and take home exams were very related to the course content. They tested applicability and creativity in a balanced manner. The timelines for the assignments, reports and case studies allowed ample time to prepare for everything.”
Experiential Teaching in EC: Student Feedback
The Future of E-Commerce: CODA
Homeland SecurityData Science
Machine LearningCyber-Security
Business and Health Analytics
750,000 square feetMixed-use facility
80,000 square foot newData Center
Will be completed in 2018 and be occupied equally by industry and
academia.
Thank YOU! Discussions?
Case of Yihaodian
Nakedwines.com
eDaixi (e Bagged-Wash)
CASE STUDY: HOSPITALITY PRICE OPTIMIZATION
42
Problem Global hospitality corporation with more than 3,000
properties worldwide Sophisticated RM system for inventory controls, but
pricing decisions were highly manual Over 76,000 pricing decisions per hotel per year Ad hoc competitive shopping triggered a “price‐match”
mentality
Results & Benefits Measured transient revenue uplift of 2.7% (cited in
client’s annual report) $400 million annual uplift comes from combination of
higher rates and higher occupancy Finalist for Franz Edelman Award
Competitive Rates
Competitive Rates
Price Sensitivity
Price Sensitivity
DemandForecastDemandForecast
Optimal Rates
Optimal Rates
Process & Outcomes Nightly price shops for each hotel’s top 5 competitors Price optimization module created which:
• Forecasts demand for room nights and lengths of stay• Market response modeling predicts consumer response to
rates relative to competitor rates • Optimal rate calculated daily from combining price
sensitivity with demand forecast and competitive rates to maximize contribution margin
• Alerts and reports to identify pricing opportunities Designed new business processes to facilitate informed,
dynamic pricing decisions at the hotel and provide corporate pricing guidance
For a global hospitality corporation, transparency and a slowing economy forced greater focus on price relative to competition and “how low to go” to stimulate demand
PROCESS FLOW FOR INTEGRATED REVENUE MANAGEMENT
43
January February March AprilT
1/10EC OverviewInternet Business Models
TH2/2
AirbnbUberDue: Group Homework
TH3/2
Robert FrohweinKabbage.comPlatform Lending
T4/4
Long Tail Business ModelsNetflixKindle
TH1/12
Social CommerceNetwork Game
Freemium Business Models
T2/7
OpenTable
Catch Up Session
T3/7
Cloud-Enabled Business Models: SAPSalesforceMid-Course Feedback
TH4/6
EC Big Data Analytics(Fishing game)
EC Competition Due: Webvan
T1/17
Daniel DrechselHireIQ
EC Strategy
TH2/9
Chris KlausKaneva.com
TH3/9
Bengt HorsmaFinTech Etc
EC Payments
T4/11
Tony GallippiBitPay, Inc.
BitcoinGlobal EC Payments
TH1/19
Platform Business Models Platform Game
T2/14
TAKE-HOME EXAM IDue: 2/20/2017
T3/14
Bill WadeCompany.comB2B Social Commerce
TH4/13
EC LogisticsCrowdphysics
Show & Tell
T1/24
Platform Business Models Platform Game
TH2/16
Larry CarterAT&T MobilityiPhoneM-Commerce
TH3/16
Allen NanceTechsquare Labs
T4/18
Show & Tell
TH1/26
SkypeDropbox
T2/21
Joe KleinwaechterWorldpayOpen Innovation &Biz Model Design
T3/28
TAKE-HOME EXAM IIDue: 4/3/2017
TH4/20
Show & Tell
T1/31
Mark WasieleCyberLaunch VC
TH2/23
Open Business Models HealthTap TopCoder
TH3/30
Bob CrossRevenueanalytics
EC Analytics
T4/25
Show & TellCourse Summary In-Class CIOS Course Survey
T2/28
Open InnovationDue: Innocentive
