1. 1. Conceptualizations’ Nature of SOFTWARE (SW)

2. ระบบธรรมชาติสิ่งแวดล้อมของซอฟต์แวร์ (NAURE of SOFTWARE)?
ธรรมชาติของโครงการซอฟต์แวร์ VS. ธรรมชาติของซอฟต์แวร์
ระบบสิ่งมีชีวิตมี DNA:- IQ/ EQ
ระบบธรรมชาติสิ่งแวดล้อม Environmrntal Natural System:- ENTITY มีอยู่จริง เป็นอยู่จริง Metaphysic: Existenece, Ontology ; Being :-Tangible/ Physical (Thing, Botany, Zoology, Human-being), Intangible/ Logical (Concept, Events, Phenomenon, Situation)
ไม่แน่นอน เปลี่ยนแปลงตลอดเวลา ไม่มีตัวตนยึดติดที่แท้จริง จับต้องยาก
ระบบธรรมชาติสิ่งแวดล้อมสัจธรรม คือ ระบบสารสนเทศ (Information Systems (IS) of ENTITY)
Carl Shapiro and Hal R. Varian: Nature of SOFTWARE:- Information Goods, High Value Chain VS. Processing by DRIVEN FORCE (IQ/EQ) of INFORMATION PROCESSORS (IPO Logic Methodology) :- Produced Outputs:- Soft Goods (FACT, DATA, Information, Knowledge, Wisdom, IPR)
ระบบธรรมชาติสิ่งแวดล้อมของซอฟต์แวร์ (NAURE of SOFTWARE)?

3. ระบบธรรมชาติสิ่งแวดล้อมของซอฟต์แวร์ (NAURE of SOFTWARE)? ต่อ
ธรรมชาติของโครงการซอฟต์แวร์ VS. ธรรมชาติของซอฟต์แวร์
ระบบธรรมชาติสิ่งแวดล้อมของซอฟต์แวร์ (NAURE of SOFTWARE)? ต่อ
Intrinsic Context Value:- Property and Attributes/ Cohesion of IPR of Global Economy based on Intangible/Information Goods, High Value Chain and Light Weight, Processing by IPO LOGIC Methodology on IQ/EQ of INFORMATION PROCESSORS,
Extrinsic Context Value:- Environment Dependency :- PEST(P: Politics, E: Economy, S: Social, T: Technology (Socio-cultural Innovation)
Relationship/ Covariance of Extrinsic and Intrinsic Value :- CHANGE MANAGEMENT RULE/ Code of Conduct/ Ethics (Good Governance, CSR)
Based on
MATURITY of
Generalization/ Standardization
and Concept of Stockholders,
Shareholders, Stakeholders:-

4. ระบบธรรมชาติสิ่งแวดล้อมของซอฟต์แวร์ (NAURE of SOFTWARE)? ต่อ
ธรรมชาติของโครงการซอฟต์แวร์ VS. ธรรมชาติของซอฟต์แวร์
ระบบธรรมชาติสิ่งแวดล้อมของซอฟต์แวร์ (NAURE of SOFTWARE)? ต่อ
Shareholders/ Stakeholders of INFORMATION PROCESSORS:-
Technical of W3C,ISO, Engineer Task Force, CMMI etc;
Industrial/ Marketer Entrepreneurship of COTS:- ANSI, .NET etc;
Society Community of Open Sources:- JAVA and Other etc;
Government:- EDIFACT-XML etc;
Management Roles:- Good Governance, CSR VS. Management Activity (Strategic, Management, Knowledge Specialist, Operating)
Technical and Engineer Roles :- Inter-disciplinary Relationship/ Covariance:-
by INFORMATION PROCESSORS VS. TOP DOWN, Bottom Up
ENTERPRISE ARCHITECTURE (EA) DESIGNED

5. 2. Introduction of SQA and Maturity of Information Processors5

6. Differences between Software and Other Products
Product Complexity VS. Information Goods
Product Visibility VS. IPO Logic Intangible Goods
Product Development Process VS. Life Cycle CMMI
text pages 4-6
Complexity
A bridge generally just sits there. It may have to deal with floods. But generally, people just drive across it.
A piece of software must deal with lots of different users, varying amounts of data, multiple means of interaction, …
Visibility
While building a house, everyone will notice that there are no stairs to the second floor and no front door.
Process
We will cover the software process later.

7. "Software Crisis“ การตอบสนองความต้องการมาตรฐาน SW คงที่ แต่ความต้องการใช้ SW มีมากกว่าไม่สิ้นสุด
Time
supply
demand
Programmers
term coined by DoD years ago
Problem Today: complexity of problems addressed by software has outpaced/ ไปได้เร็วกว่า improvements in software creation process

8. The Big Question Q: How do we assure quality?
A: We have a good process. VS. Hidden agenda IPR ?

9. Next… Define Quality The nature of software errors
examples of costly software errors

10. 3. Patent Infringement/ ระเมิด COTS and Development10

11. Doctrinal Sequence หลักกับความจริง ?
FIRST: What is the literal/ ลายลักษณ์อักษร/ตัวอักษร meaning of the claim language?
THEN: If the accused product falls outside that language, is it an “equivalent” of the claimed invention? 11

12. The questions presented are:
(1) Whether digital software code—an intangible sequence of “1’s” and “0’s”—may be considered a “component[ ] of a patented invention” within the meaning of Section 271(f)(1); and, if so,
(2) Whether copies of such a “component[]” made in a foreign country are “supplie[d] from the United States.” 12

13. 4. Capturing the Essence of Software Engineering VS
4. Capturing the Essence of Software Engineering VS. Enterprise Architecture 13

14. The Malleable Nature of Software ดัดแปลงได้ง่าย ?
Evolution is more important in software than in other engineering disciplines
Software engineering rarely involves “green field” development
Software needs to be constantly maintained and evolved to meet new business requirements
The cost incurred in evolution usually exceed the development cost by a factor of Level 3 or 4

15. Goals Defining the basic definition of software engineering
Providing a strong mathematical basis
Identifying the truly universal elements
Defining a kernel language that describes the “method elements” -- practices, patterns, and methods
Providing assessment techniques evaluating software practice and theories

16. What is “Software Engineering” ผลลัพธ์เขียนโปรแกรมศิษย์ต้องมีครู ?
Software Engineering = “Software” + “Engineering”
“The application of engineering methods and discipline to the field of software”
Software engineering is indeed an “Engineering” discipline, it should be treated the “engineering way”

17. Difference between Science and Engineering
Science seeks to understand what is, whereas
Engineering seeks to create what never was
--- [Henry Petroski 2010]
It is not appropriate to describe engineering as mere applied science
Some extra-scientific components to engineering:
Creative nature
Situated culture particularity to a specific application domain

18. Difference between Science and Engineering
When defining “software engineering” and the “Universals”
It is essential to keep in mind the similarities and differences between science and engineering
Science
Deals with the universal laws
Context and time independent and true everywhere
In engineering
Analysis follows synthesis and observation
Engineering
Situated culture
Needs to have constant learning, refinement and adaptation to meet the environmental requirements

19. Difference between Science and Engineering
In engineering
Analysis follows synthesis and observation
Not the other way around

20. Engineering model vs. Software Model
Incomplete specification
First three stages are often blurred
Final product is intangible
Doesn’t wear out
Full specification
Design
Manufacture
Test
Install
maintain

21. A Hierarchical Structure of Universals
Layer 1: the “engineering” aspect
Best practices of engineering discipline applicable to software:
Project:
Transformation
Flow
Value generation
Management
Planning
Execution
Controlling

22. A Hierarchical Structure of Universals
Layer 2: the “software” aspect
Unique practices to software:
Extensibility
Interoperability
Evolveability
Reusability
Maintainability

23. A Hierarchical Structure of Universals
Layer3: “variability” -- situated culture
Reflect and address the knowledge
of different more situated
application domain
Real-time systems
Self-adaptive systems
Self-management systems
Web systems
… more

24. Software Engineering: A University Perspective
Poorly perceived: “anyone can teach it”
Scarcely founded (e.g., Federal and States)
Challenging Quality publications

25. Prevalence of fads -- “acronym soup”
Cloud Computing
Lean
Grid
Moving Targets
Scrum
Web Services
Agile

26. 5. The Nature of Information Technology Projects CMM Level 126

27. Questions What is a project? What is project management?
How does project management relate to other disciplines?
What is the career outlook for project managers in information technology?

28. What Is a Project?
A project is “a temporary endeavor undertaken to accomplish a unique product or service” (Project management body of Knowledge (PMBOK®) Guide 2000, p. 4)
Attributes of projects
unique purpose
temporary
require resources, often from various areas
should have a primary sponsor and/or customer
involve uncertainty

29. Case #1: Caleb’s Mission Critical Schedule System (MCSS) for Continental Airlines
If an airline company has to make up a cancelled flight in an emergency, for example, a plane crash, it may take it several hours to reschedule the relevant flights as well as the crew teams, and a couple of days to settle down other legacy problems. Caleb has developed a mission critical schedule system for airline companies, which can find the solution in minutes and solve other legacy problems in a few hours.
Continental Airlines, as a client of Caleb Technology (Austin) for years, has carefully evaluated the system and decided to adopt the application. Delighted by the winning of the contract, Caleb is facing the following several questions:
EDS is the original application developer and will be working with Caleb in the user interface as Continental Airlines required. How to cooperate with Continental Airlines is the key issue.
MCSS must be integrated into existing enterprise information system of Continental Airlines. How this will be done?
How test MCSS in the real environment to guarantee its reliability and availability.
How to switch from old system to the new system integrated with MCSS?

30. Case #2: Online medical services appointment system
Making the appointment with a PCP or specialist doctor is normally via phone call. Even though e-commerce and many other online services are prevailing, such a service in medical area has never been done yet. We there were such a system, this system would have allowed patents to check the availability of a doctor or any other medical services from the Internet, making and changing the appointment. So, this is a promising system in several ways:
It will greatly make the appointment convenient
It can be connected to other networked medical information services, such as medical insurance.
It will also benefit the medical service providers much in saving costs and improving service quality.
There several issues :
Who will initialize the project?
Who should be involved ?
Who is to be a target buyer of the system?
How this system can be co-operated with other medical information systems?
Is this system really beneficial?

31. Case #3: Adams Globalization online translation services development
Adams Globalization is a leading translation service company in Austin, Texas. The company provides the translation between English and several other languages, such as Spanish, German, French, Japanese, and Chinese. The company started in In 1993 it hired 4 employees and in 2003 it hired 40 employees and operating a translator network with more than 1000 freelance translators. The company’s revenue in 2002 was $4,000,000. Adams Globalization has been facing more and more pressures to convert its business model from traditional translations to an Internet-based one:
There is an increasing Internet-based application translation demand.
Intensified Internet usage requests the company to change its business processes
The company is moving towards a global market.
Therefore, there are several reasons for Adams Globalization to adopt e-business. There are several issues:
What is the new business model?
How to develop a web-based business system?
What is the project scope? …

32. The Software Crisis
If builders built buildings the way programmers wrote programs, then the first woodpecker that came along would destroy civilization.
-Gerald Weinberg

33. Status of IT Projects 31% IT projects were cancelled before completion
53% were completed, but were over-budget, over-schedule, and did not meet the original requirements.
The average cost overrun of medium-sized projects was 202%

34. Why Projects Fail – CHAOS STUDY

35. What is Project Management?
Project management is “the application of knowledge, skills, tools, and techniques to project activities in order to meet project requirements” (PMI*, Project Management Body of Knowledge (PMBOK® Guide), 2000, p. 6)
*The Project Management Institute (PMI) is an international professional society. Their web site is

36. Improving the likelihood of success
Socio-technical Approach
Cooperation between developers and users
Project Management Approach
Depending more on processes and infrastructure
Resources management
Delivering the outcomes in a professional way as expected
Coping with greater internal and external competition
Improving efficiency and effectiveness
Knowledge Management Approach
lessons learned
best practices

37. The 2001 Standish Group Report Showed Decided Improvement in Project Success
Time overruns significantly decreased to 163% compared to 222%
Cost overruns were down to 145% compared to 189%
Required features and functions were up to 67% compared to 61%
78,000 U.S. projects were successful compared to 28,000
28% of IT projects succeeded compared to 16%

38. Why the Improvements?
"The reasons for the increase in successful projects vary. First, the average cost of a project has been more than cut in half. Better tools have been created to monitor and control progress and better skilled project managers with better management processes are being used. The fact that there are processes is significant in itself.“*
*The Standish Group, "CHAOS 2001: A Recipe for Success" (2001)

39. Factors For Successful Projects
User involvement
Executive management support
Clear statement of requirements
Proper planning
Realistic expectations
Smaller project milestones
Competent staff ownership
Clear vision & objectives
Hard-working, focused team

40. Chaos Study

41. Why do we learn project management?
It is different from system analysis
It will allow you to apply all the knowledge you have learned in IS, such as programming, data management, and system analysis, into the practices
But more – management
Consider you get a programming job. In the first week in the company you are asked:
To work with someone to do some Java programming but you don’t know what it is for;
To join a project group for internal software resource sharing project but you don’t know who are your colleagues before a meeting; or
To look into the latest WiMAX (IEEE e) technology to see the potential application to your company’s business. You here of it but wonder why
To investigate the search engine market and write a proposal – it is a task for a programmer?
What should you do?

42. The context of project management
Project Attributes:
Time Frame
Purpose
Ownership
Resources
Roles
Risks & Assumptions
Interdependent tasks
Organizational change
Operating Environment

43. The Triple Constraint of Project Management

44. Roles in a project Project Manager Project Sponsor
Subject Matter Expert(s) (SME)
Technical Expert(s) (TE)

45. Risks & Assumptions Internal risk External risk Assumptions
From the estimation process or from the fact that a key member of the project team could leave in the middle of the project
External risk
Arises from the dependencies on other contractors or vendors
Assumptions
What we used to estimate scope, schedule, and budget and to assess the risk of the project

46. The Project Life Cycle and IT Development

47. Definitions Project Life Cycle (PLC) Deliverable
A collection of logical stages or phases that maps the life of a project from its beginning to its end for a project
Deliverable
A tangible and verifiable product of work
Phase exits, stage gates, or kill points
Phase-end review of key deliverables that allow the organization to evaluate the project’s performance and take immediate action to correct errors or problems

48. Generic Project Life Cycle

49. Phases/Stages of PLC Define project goal Plan project
Answer questions (What, why, how, who, et al)
Baseline plan
Execute project plan
Close project
Evaluate project

50. Systems Development Life Cycle

51. Systems Development Life Cycle
SDLC: sequential phases or stages an information system follows throughout its useful life.
Phases/Stages
Planning
Analysis
Design
Implementation
Maintenance and Support

52. Systems Development Life Cycle (SDLC)
Problem
Definition & Feasibility
6. Operations &
Maintenance
2. Analysis
5. Implementation
3. Design
4. Development,
Coding

53. Structured Approaches: Waterfall Method
Implementing SDLC:
Structured Approaches:
Waterfall Method

54. Implementing SDLC: Rapid Application Development (RAD) Approaches:
Prototyping
Develop a small test system in a short time and improve it.
Spiral Development
The project is broken into mini-projects each addressing one or more risks until all risks are addressed
Extreme Programming (XP)
The system is transferred to the users in a series of releases. Each release is a working system that only includes one or several functions.

55. The PLC vs the SDLC

56. PLC vs. SDLC PLC focuses on the processes of managing a project
SDKC focuses on creating and implementing a product – the information system
SDLC is part of PLC – most of SDLC activities occur during the execution phase of PLC.

57. Enterprise System Implementation Phases
1. Initiation
6. Operations &
Maintenance
2. Planning
1.      Initiation—This is the phase in which the business case for the implementation is made, as well as major decisions about the project scope and implementation strategy. Also, this phase usually includes the selection of methodology, software and hardware vendors, and consulting partners.
2.      Planning—The planning phase is focused on setting up the project administration, determining the staffing arrangements, setting goals and objectives, acquiring resources, and establishing metrics for the implementation project.
3.      Analysis and process design—This phase involves analyzing the organization and its current processes, redesigning those processes as needed, and creating a mapping from the organization “as is” to the organization “to be.”
4.      Realization—The realization phase entails installing a base system, customizing it to the organization, extending it if necessary, and testing the implementation.
5.      Transition—This is usually a relatively short phase during which the organization’s former information systems are replaced with the enterprise system.
6.      Operation—The operation phase involves ongoing efforts to monitor system performance and tune the system as appropriate. It also involves the continuing process of training employees on the enterprise system.
5. Transition
Analysis &
process design
Realization
(Fulfill ERP)

58. What is PMBOK The Project management body of Knowledge (PMBOK)
A document providing a basis for identifying and describing the generally accepted principles and practices of project management
Originally published in 1987
Available from Project Management Institute (PMI)

59. Project Management Framework

60. Project Management Knowledge Areas
Project integration management
Project scope management
Project time management
Project cost management
Project quality management

61. Project Management Knowledge Areas
Project human resource management
Project communication management
Project risk management
Project procurement management

62. Sample Gantt Chart
The WBS is on the left, and each task’s start and finish date
are shown on the right using a calendar timescale. Early Gantt
Charts, first used in 1917, were drawn by hand.

63. Sample Network Diagram
Each box is a project task from the WBS. Arrows show dependencies
between tasks. The bolded tasks are on the critical path. If any tasks on the
critical path take longer than planned, the whole project will slip
unless something is done. Network diagrams were first used in 1958 on the Navy Polaris project, before project management software was available.

64. The Project Management Profession
The job of IT Project Manager is in the list of the top ten most in demand IT skills
Professional societies like the Project Management Institute (PMI) have grown tremendously
Project management research and certification programs continue to grow

65. Top Ten Most in Demand IT Skills

66. Project Management Knowledge Continues to Grow and Mature
PMI hosted their first research conference in June 2000 in Paris, France, and the second one in Seattle in July 2002
The PMBOK® Guide 2000 is an ANSI standard
PMI’s certification department earned ISO 9000 certification
Hundreds of new books, articles, and presentations related to project management have been written in recent years

67. Project Management Certification
PMI provides certification as a Project Management Professional (PMP)
A PMP has documented sufficient project experience, agreed to follow a code of ethics, and passed the PMP exam
The number of people earning PMP certification is increasing quickly
PMI and other organizations are offering new certification programs (see Appendix B)

68. Growth in PMP Certification, 1993-2002

69. Supplemental material
Software outsourcing
Supplemental material

70. Offshore Software Outsourcing
In next few years, about 2 million IT jobs will shift to foreign countries because of outsourcing, e.g. to India.
Companies have to do so because of the tough surviving environment.
This is the trend of globalization as the economies in different countries are more dependent of each other.
While India’s position is reasonably secure, there is no room for being complacent. Several upcoming destinations—Argentina, the Czech Republic and China in particular. India scores over China in employee costs, primarily due to that country importing project managers from Hong Kong and Australia. East Europe is home to top-notch engineering talent; it is quite likely that high-end engineering work will flow there.

71. Software Industry in Developing Countries
Many developing countries have adopted the development of Software Industry as a long-term strategy for economy growth
As software outsourcing is a global trend for developed countries, there are good opportunities for developing countries to speed up their software industry development
The suggested two-stage development strategy for the software industry in developing countries:
Focus on the domestic market first
Go to global market once the software companies are competitive enough
Current two patterns of software industries reflect the two-stage development strategy:
International market oriented – normally providing outsourcing market for the developed countries, which is the pattern for those “early birds”, e.g. India,
Domestic market oriented – for latecomers, e.g. China

72. The Pattern of Export-Oriented: India
Comparatively, in , the software industry in India was worth US$ 12 billion, of which software export was $9.5 billion with a growth rate of 25.3%.
The software industry is expected to account for something like 20% of India’s exports for (
Heeks (1996) indicated that if the software exports grows rapidly, the growth of the domestic market is prevented.

73. The Pattern of Domestic Market Oriented: China
In the past 10 years China’s software industry revenue has been growing at an annual rate between 20-40%. The revenue of software industry in 2002 reached US$13.3 billion, a 46.5% increase from 2001.
In the last three years its software export almost doubled every year. However, China’s software market is domestic-oriented - nearly 90% software products were sold domestically.
In 2002, China’s application software accounted for 64.5% of the total domestic software products.
Foreign software and system integration still account for 95.3% of the upper software market

74. India Pattern vs. China Pattern
Comparison of software revenue in 2002:
India: $12.5 billion, with $9.5 billion from the export
China: $13.3 billion, with $1.5 billion from the export
India’s case is a successful example, while China’s case is more representative for the developing countries just started their software industry.
Heeks (1999) outlines some generic approaches to a developing country’s software industry development. Two dimensions, the target market served (Domestic vs. Export) and the types of business intended (Service vs. Packages), are used in analyzing the strategic positioning for a developing country.

75. Potentials of India’s software industry
Several markets that could result in large opportunities for Indian.
Product Data Management (PDM) is one such area, covering applications that manage product data and product development workflow. The global market for PDM is projected to grow to $11 billion by 2006, according to CIMData. Automotive, electronics and telecom, aerospace, machinery and process industries are major users of PDM.
Content management is another growth area with the thrust being on delivering digital content across multiple channels. This market is projected to be worth $27 billion by Services account for roughly 90 percent of this market.
Enterprise Application integration (EAI) is a potential gold mine for Indian software houses. It is projected to be a $43.4 billion market by 2005; services account for 73 percent of this market. Business Intelligence and data warehousing will together account for a $29 billion market by 2005.
The market for wireless and mobile infrastructure consulting, integration and management services will be worth $37.4 billion by 2006.
Straight-through processing (STP) is the complete automation of stock trading from order entry to final settlement. The global market for STP is expected to touch $6.3 billion by India can offer customised application development, maintenance and support, consulting and transaction processing outsourcing in this segment.

76. References in offshore outsourcing
Heeks, Richard, “Software strategies in developing countries”, Development Informatics working paper series, 1999.
Li, M., and M. Gao, “Strategies for Developing China’s Software Industry,” Information Technology and International Development (2003).

77. ซอฟต์แวร์ (Software: SW ?)
SW Good Process VS. การได้มาซึ่งซอฟต์แวร์ที่มีคุณภาพ CMM VS. AGILE Process VS. IPR
ซอฟต์แวร์ (Software: SW ?)
สมมติฐานการบริหารโครงการซอฟต์แวร์
วิศวกรรมซอฟต์แวร์

78. Project Framework Risk & Issue Management Sponsor Management
Communication Management
Initiate
Prepare
Execute & Control
Close
Startup
Definition / Scope / Requirements
Planning and Resource Allocation
Track & Control
Reporting
Review
Completion & Assessment
Scope Management
Workplan Management
Resource Management (Time, Cost, People)
Deliverable Mgmt
Quality Management
Transition Plan
Int/Ext Vendor Management

79. Information Rules: Strategic Guide to the Network EconomyBy
Carl Shapiro and Hal R. Varian

80. The Information Economy
All the activities involved in the production and distribution of goods and services.
Information Economy:
It is an economy based on the exchange of knowledge
information and services rather than physical goods
and services.

81. The Information Economy (2)
Any Essentially, anything that can be digitized—encoded as a
stream of bits—is information. E.g. baseball scores, books, databases,
magazines, movies, music and Web pages are all information goods.
The book focuses on the value of information to different consumers.
Cost of Producing Information:
“ Information is costly to produce but cheap to reproduce.”

82. Theme of the Book: 3 Strategies for Information Economy:
Differentiation of Product and Services.
Lock – In.
3) Positive feedback.

83. Differentiation of Products and Services
Strategies used:
a) Mass Customization
b) Differential Pricing
c) Personalized Content
d) Versioning
e.g.

84. How to design your "product line"?
Offer Versions
Dimensions: Delay, User Interfaces ,Image Resolution, Speed of Operation, Format, Capability, Features, comprehensiveness, support
2) Principle of “self-selection” :
Design these versions to accentuate the needs of different groups of customers.

85. Lock In Cycle

86. Lock In How do Buyers Recognize that they are in Lock In?
Contractual Commitments
Durable purchases
Brand specific Training
Information and Databases e.g. CD and DVD
Specialized suppliers.
Search costs. e.g. Travel Agent, Insurance Agent etc.
Loyalty Programs

87. Managing Lock- In for Buyers
How to avoid Lock-In?
Bargain for initial sweeteners, such as discounts or support for switching from your previous system.
Don't be too anxious.
Depict yourself as an attractive customer down the road
Seek protection from monopolistic exploitation
Keep your options open via second sourcing
Watch out for creeping lock-in, and retain information about usage records.

88. Managing Lock-In for Sellers
Be prepared to invest to build an installed base through promotions and by offering up-front discounts.
Cultivate influential buyers and buyers with high switching costs.
Design your products and your pricing to get your customers to invest in your technology, thereby raising their own switching costs.
Maximize the value of your installed base by selling your customers complementary products and by selling access to your installed base.

89. Positive Feedback
“ Positive feedback makes the strong grow stronger . . . and the weak grow weaker.”

90. Positive Feedback (cont.)
How it Helps?
1) Adoption dynamics in the presence of positive feedback tend to follow a predictable pattern. e.g. NES
2) Consumers value information technologies that are widely used, just as they value communications networks with broad reach.
3) Positive feedback works to the advantage of large networks and against small networks.

91. Positive Feedback (cont.)
Generic strategies for innovators in network markets:
Control
Openness
Compatibility
Controlled Migration
e.g. Win 98 and Intel PII
Open Migration
e.g. Modems
Performance Play
e.g. Nintendo Entertainment System
Discontinuity e.g. CD Audio and Floppy Drive
Performance

92. Information Policy Don't expect the government's role to diminish.
Every company needs to know the rules of competition.
Companies have considerable freedom to engage in differential pricing.
Competition policy is intended to ensure a fair fight, not to punish winners or protect losers.

93. Information Policy
Don't be afraid of cooperating with other companies to set standards and develop new technologies, so long as your efforts are designed to bring benefits to consumers.
If you are fortunate enough to gain a leading share of the market, be sure to conduct an audit of your practices.

94. Battle of the Browsers Netscape Microsoft Preemption
Head start with Navigator in 1995, most companies had already installed their software
Made browser available free of charge, pioneered the idea of Plug-Ins ( third party software )
Earns revenue through its other products e.g. Netscape Web site
Microsoft came with IE in 1998 and marketed through OEM, ISP etc.
Made IE free online and making it Default Browser.
Investing heavily on User Interface
Preemption
Penetration Pricing

95. Battle of the Browsers (cont.)
Netscape
Microsoft
Integrating IE in Windows OS and making user believe that they do not have a need to install a new browser.
Microsoft as stated earlier has already developed alliances with OEM,ISP and Content Providers by providing Financial Schemes
Expectation mgmt:
Netscape has partnered with 100 industrial companies in order to bundle their product
Netscape and Sun Microsystems are strong allies, with Netscape supporting Sun's Java and Sun helping lend credibility to Netscape
Alliances:

96. Critique
The definition of Information on which the book focuses is very broad according to author.
Authors fail to mention about the importance of Sales and Marketing in an economy .
Third party role in Information Economy is not taken into consideration.
An economy is not complete until its unit of transactions are defined. The author fail to define how to estimate the value of a product which is available in bits form.