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1. Conceptualizations Nature of SOFTWARE (SW). DNA:- IQ/ EQ DNA:- IQ/ EQ DNA:- IQ/ EQ DNA:- IQ/ EQ Environmrntal Natural System:- ENTITY Environmrntal.

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Presentation on theme: "1. Conceptualizations Nature of SOFTWARE (SW). DNA:- IQ/ EQ DNA:- IQ/ EQ DNA:- IQ/ EQ DNA:- IQ/ EQ Environmrntal Natural System:- ENTITY Environmrntal."— Presentation transcript:

1 1. Conceptualizations Nature of SOFTWARE (SW)

2 DNA:- IQ/ EQ DNA:- IQ/ EQ DNA:- IQ/ EQ DNA:- IQ/ EQ Environmrntal Natural System:- ENTITY Environmrntal Natural System:- ENTITY Metaphysic: Existenece, Ontology ; Being :-Tangible/ Physical (Thing, Botany, Zoology, Human-being), Intangible/ Logical (Concept, Events, Phenomenon, Situation) Environmrntal Natural System:- ENTITY Metaphysic: Existenece, Ontology ; Being :-Tangible/ Physical (Thing, Botany, Zoology, Human-being), Intangible/ Logical (Concept, Events, Phenomenon, Situation) Environmrntal Natural System:- ENTITY (Information Systems (IS) of ENTITY) (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) (FACT, DATA, Information, Knowledge, Wisdom, IPR) (FACT, DATA, Information, Knowledge, Wisdom, IPR) (NAURE of SOFTWARE)? (NAURE of SOFTWARE)? VS. VS.

3 (NAURE of SOFTWARE)? (NAURE of SOFTWARE)? VS. VS. 1.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, Intangible/Information GoodsIPO LOGIC Methodology INFORMATION PROCESSORS,Intangible/Information GoodsIPO LOGIC Methodology INFORMATION PROCESSORS, 2.Extrinsic Context Value:- Environment Dependency :- PEST(P: Politics, E: Economy, S: Social, T: Technology (Socio-cultural Innovation) 3.Relationship/ Covariance of Extrinsic and Intrinsic Value :- CHANGE MANAGEMENT RULE/ Code of Conduct/ Ethics (Good Governance, CSR) Based on Based on MATURITY of MATURITY of Generalization/ Standardization Generalization/ Standardization and Concept of Stockholders, and Concept of Stockholders, Shareholders, Stakeholders:- Shareholders, Stakeholders:-

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

5 2. Introduction of SQA and Maturity of Information Processors

6 Differences between Software and Other Products 1. Product Complexity VS. Information Goods 2. Product Visibility VS. IPO Logic Intangible Goods 3. Product Development Process VS. Life Cycle CMMI text pages 4-6

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

8 The Big Question Q: How do we assure quality? IPR ? 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 I 3. Patent I nfringement/ COTS and Development

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

12 The questions presented are: (1) Whether digital software codean intangible sequence of 1s and 0s 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.

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

14 The Malleable Nature of Software ? 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 4Level 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 ? 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 When defining software engineering and the Universals It is essential to keep in mind the similarities and differences between science and engineering It is essential to keep in mind the similarities and differences between science and engineering Science Science Deals with the universal laws Deals with the universal laws Context and time independent and true everywhere Context and time independent and true everywhere In engineering In engineering Analysis follows synthesis and observation Analysis follows synthesis and observation Engineering Engineering Situated culture Situated culture Needs to have constant learning, refinement and adaptation to meet the environmental requirements 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 Full specification Design Manufacture Test Install maintain Incomplete specification First three stages are often blurred Final product is intangible Doesnt wear out

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 Moving Targets

26 5. 5. The Nature of Information Technology Projects CMM Level 1

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: Calebs 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. 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: 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. 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? 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 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? 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 companys 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 dont know what it is for; To join a project group for internal software resource sharing project but you dont 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 companys 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 Interdependent tasks Organizational change Operating Environment Time Frame Purpose Ownership Resources Roles Risks & Assumptions Project Attributes:

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 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) 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 projects 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 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) 1.Problem Definition & Feasibility 6. Operations & Maintenance 4. Development, Coding 5. Implementation2. Analysis3. Design

53 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 4.Realization (Fulfill ERP) 5. Transition 2. Planning 3.Analysis & process design 6. Operations & Maintenance

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 1. Project integration management 2. Project scope management 3. Project time management 4. Project cost management 5. Project quality management

61 Project Management Knowledge Areas 6. Project human resource management 7. Project communication management 8. Project risk management 9. Project procurement management

62 Sample Gantt Chart The WBS is on the left, and each tasks 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 PMIs 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,

69 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 Indias exports for (http://www.expresscomputeronline.com/ /s oftserv.shtml). 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 Chinas 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 In the last three years its software export almost doubled every year. However, Chinas software market is domestic-oriented - nearly 90% software products were sold domestically. In 2002, Chinas 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 Indias case is a successful example, while Chinas case is more representative for the developing countries just started their software industry. Heeks (1999) outlines some generic approaches to a developing countrys 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 Indias 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 The market for wireless and mobile infrastructure consulting, integration and management services will be worth $37.4 billion by 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 shtml shtml Heeks, Richard, Software strategies in developing countries, Development Informatics working paper series, Li, M., and M. Gao, Strategies for Developing Chinas Software Industry, Information Technology and International Development (2003).

77 SW Good Process VS. CMM VS. AGILE Process VS. IPRSW Good Process VS. CMM VS. AGILE Process VS. IPRSW Good Process VS. CMM VS. AGILE Process VS. IPRSW Good Process VS. CMM VS. AGILE Process VS. IPR (Software: SW ?) (Software: SW ?) (Software: SW ?) (Software: SW ?) ageshttp://en.wikipedia.org/wiki/List_of_programming_langu ageshttp://en.wikipedia.org/wiki/List_of_programming_langu ageshttp://en.wikipedia.org/wiki/List_of_programming_langu ages

78 Project Framework Risk & Issue Management Sponsor Management Communication Management InitiatePrepareExecute & Control Close Startup Definition / Scope / Requirements 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 In formation Rules: Strategic Guide to the Network Economy By Carl Shapiro and Hal R. Varian

80 The Information Economy 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) Information: Any Essentially, anything that can be digitizedencoded as a stream of bitsis 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 : 1) Differentiation of Product and Services. 2) 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"? 1) 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 Phase 1 Brand Selection Phase 2 Sampling Phase 3 Entrenchment Phase 4 Lock-In

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: OpennessControl Compatibility Performance 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

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 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 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 MicrosoftNetscape Preemption Penetration Pricing

95 Battle of the Browsers (cont.) 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 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 Alliances: NetscapeMicrosoft

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.


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