U-Commerce Broadening the universe of marketing

1. U-CommerceBroadening the universe of marketing Richard T. Watson Leyland F. Pitt Pierre Berthon George M. Zinkhan rwatson@terry.uga.edu

2. Expanding the vision

3. Expanding the vision

4. Physics Newtonian to special theory of relativity Art Realism to modern art Parallel revolutions

5. Raphael: School of Athens

6. Picasso: Ma Jolie

7. Parallel revolutions • Einstein and the Cubists proposed alternative concepts of space • Space interacts with the volume, shape, and size of objects • Space and time can be fractured into visual elements

8. U-commerce • An alternative view of time and space for business and marketing • Commerce has been flattened to two dimensions • Multiple connections are being reduced to a single point

9. A foundation in light • Physics • Speed of light in a vacuum is constant • E = mc2 • Art • Innovations in recording light • Commerce • Using light to communicate

10. Types of Commerce

11. Types of commerce A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

12. Key forces • Bounded rationality • Attention deficit society

13. Bounded rationality • Consumers are capable of a wide variety of reasoning errors when making decisions • Managers have difficulty in managing a multitude of customers on a one-to-one basis

14. Attention deficit society • Consumers are increasingly bombarded with more and more messages • It is estimated that a single weekday issue of the New York Times contains more information than the average person in seventeenth-century England came across in a lifetime • Conscious attention is a scarce resource • Some messages need to be attenuated and others amplified

15. U-commerce • The use of ubiquitous networks to support personalized and uninterrupted communications and transactions between a firm and its various stakeholders to provide a level of value over, above, and beyond traditional commerce • Über-commerce

16. Ubiquitous • Networks everywhere • All consumer durable devices are on a network • Intelligence and information are widely dispersed and always accessible • Smart entities • Appliances • Buildings • Signs • Street smart communities

17. Universal • Devices work everywhere • All networks • All locations • Always connected • Universal access

18. Unique • Information is customized • To person • To device • To context • Location • Time • Role

19. Unison • Synchronization/replication of designated files • Transparent to owner • Current data are always available

20. Network driven firm • A directed collection of electronically interacting stakeholders that coordinates activities through the exchange of messages over electronic networks • Networks are a means of increasing • efficiency (e.g., lowering transaction costs) • effectiveness (e.g., adding value to customers) • Applies concepts of object-orientation

21. The object-oriented firm • Applies the computer science principles of object orientation to creating a business • A new firm can be built from existing firms • Procedures are developed for electronically exchanging messages between firms via the Internet

22. Network pattern matching

23. OO strategy

24. Evolution of markets

25. U-space

26. Hyper-real • Ultra-conscious & unique • Extraordinary experience • Adventuring • Entertainment • Teleimmersion • Immersion marketing • Processes that enhance conscious interaction with the phenomenal world in specific situations

27. Post-human • Ultra-conscious & ubiquitous • The network is always on • Permanent enhancement of human facilities • Information processing • Cell phone/PDA • Advanced prosthetics • Genetic enhancement • Body change • Rhinoplasty • Transformation marketing • Processes that enhance conscious interaction with the phenomenal world acontextually – that is transcending specific time-space locations

28. Network • Unconscious & ubiquitous • Move tasks from conscious to unconscious • Automated consumption • Automated toll booths • Smart cards • Automatic background execution • Price comparison bots • Attention freeing • Matrix marketing • Universal, acontextual processes designed to automatically perform tasks

29. Node • Unconscious & unique • Subscription services • CRM tries to understand the customer so well that offers easily capture attention • Ultimate form of permission marketing • Wine-of-the-month club • Nodal marketing • Processes that reduce the necessity of an individual or collective to consciously interact with phenomena in specific contexts

30. Model dynamics

31. Types of marketing

32. Implications for marketing • Revalidate existing theories • Build new theories • New forms of marketing • Amplifying and attenuating consciousness

33. Implications for MIS • Integrated customer database • Electronic communication links • Simple interfaces and high functionality • Automation of tasks to free attention

34. Conclusion • Innovations in processing information are the bedrock of cultural, social, political, and economic change • U-commerce is the final step in the evolution of commerce • It is part of the evolution in thinking about a firm’s relationship with the customer • From products to services • From services to information • Information is service

35. U-commerce • The ultimate killer app • It changes everything

36. Draft of article Contact rwatson@terry.uga.edu