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The final exam.
Enormicom: Following up on the NT firms piece from a few days ago, I
happily point you to Enormicom, perhaps the best Web-industry spoof
site ever created. Be sure to read all the way through; there are
good resources at the end. Expertly created by the folks at
37signals.com.
http://www.enormicom.com/
NT firms: http://www.goodexperience.com/images/ntfirms041300.gif
In Search of E-Commerce: The first e-commerce report Creative Good
ever published is now online, for free. It's a bit dated -- the
second edition was published in February 1999 -- but it shows some
interesting before-and-after shots on sites like Amazon and Expedia,
from redesigns between the first and second editions of the report.
http://www.goodexperience.com/reports/isoe/index.html
NEW CHILDREN'S PRIVACY RULES POSE OBSTACLES FOR SOME SITES:
Some Web sites are finding that the costs of complying with the
Children's Online Privacy Protection Act (COPPA) are so high that
they can no longer afford to welcome children under the age of 13
as guests to their sites. Other Web sites are turning to
Attorney Perry Aftab of Aftab & Savitt to help them comply with
the law's terms, which state that sites must get parental consent
before collecting personal data from children aged 12 and under.
Aftab charges $10,000 to audit a site's child-privacy practices.
Complying with COPPA will cost sites anywhere from $60,000 to
$100,000 a year, according to Aftab's estimates, a price most Web
sites seem willing to pay, she adds. Children's site
SurfMonkey.com has spent $50,000 to $100,000 thus far to comply
with COPPA's terms. Another children's site, eCrush.com, could
not afford those kind of expenses and decided to liquidate the
accounts of all its preteen members and bar others of the same
age from registering with the site. Hundreds of other sites have
been forced to make changes as well. Alfy.com no longer offers
free e-mail; likewise, Snowball.com did away with free e-mail,
voice mail, personal home pages, and free hard-drive space for
children. (Wall Street Journal, 24 April 2000)
"Study Reveals U.S. 'Internet Hotbeds'"
E-Commerce Times (04/12/00); (Hillebrand, Mary):
A new Nielsen//NetRatings geographic Internet usage report shows that the pattern of Internet
usage in the top 20 U.S. markets does not coincide with population size--for instance, San
Francisco is only the third biggest city in terms of numbers of Internet users, with 2.2 million,
but it has the highest penetration rate with 61 percent of the population online. The report looks
at the total size of a given market, the percentage of its residents using the Internet, how long
they stay online, and how their Web use affects their TV viewing time and other data. San
Francisco, Denver, and San Diego spend more time online than much larger markets; the
average San Diego user spent 11 hours and 16 minutes online during February.
Nielsen//NetRatings says the data indicates a close connection between time online and Internet
penetration, and suggests that the cities with heavier usage are Internet hotbeds--the leading
edge of new media. San Francisco, San Diego, Washington D.C., Seattle, Portland, and Boston
are the six cities with over 50 percent penetration, and Nielsen//NetRatings attributes the
penetration rates to the markets' focus on technology. NetRatings vice president of analytical
services Allan Weiner says the areas with high penetration indicate the areas that are likely to
move first to TV-Internet convergence. This information could help technology and media
companies determine which regions present the largest opportunities for new multimedia
content services, Weiner says.
http://www.ecommercetimes.com/news/articles2000/000412-8.shtml
"Home Is Where the Hack Is"
Interactive Week (04/10/00) Vol. 7, No. 14, P. 28; Spangler, Todd
Nathan Hoffman, a lawyer in private practice, says the threat of DoubleClick collecting personal
information is negligible compared with the risks of home computers with broadband Internet
connections. Hoffman has filed a class-action lawsuit against Pacific Bell that alleges the
company has participated in false advertising, negligence, and breach of warranty. He is holding
Pacific Bell responsible for the vulnerability of his computer because the company claims it will
deliver a secure connection to the Internet. Hoffman, who accesses the Internet using PacBell's
DSL connection, is among a growing number of broadband subscribers who are now demanding
that broadband providers address the security issues of always-on Internet connections.
Although the threat of stolen cookies, rifled hard drives, and commandeered operations has
always existed with dial-up connections, always-on connections has made it easier for hackers to
get into computers. Greg Gilliom, president and CEO of intrusion-detection software company
Network Ice, says hackers use home systems as a shield for breaking into other systems. About
28 percent of home computers with broadband connections allow any Internet user to access
their files, according to security site Sheilds Up!. As broadband access grows, the number of
vulnerable systems will also rise. ISPs have remained silent on connection security, for the most
part. The vast majority of Web surfers will not be exposed, so ISPs do not want to alarm the
people just "hooking up a Windows 95 computer," suggests Rex Cardinale, chief technology
officer at DSL wholesaler Covad Communications. Industry experts say consumers can secure
their computers by disabling their file-sharing function. Analysts expect ISPs may be willing to
have firewall software embedded in their equipment. EarthLink is being proactive by offering a
firewall with its DSL service later in the year.
http://www.zdnet.com/intweek/stories/news/0,4164,2541289,00.html
"Now, Brits Can Surf To Their Hearts' Content"
Business Week (04/17/00) P. 186; (Capell, Kerry; Echikson, William; Matlack, Carol):
Fixed-rate pricing for Internet service is now available in the United Kingdom and will soon
spread to the rest of Europe. Until recently, Web surfers in Europe were charged high telephone
rates for every minute they spent online, hindering the growth of Europe's Internet and limiting
the creation of a U.S.-style New Economy. However, now two American companies, AltaVista and
cable and communications group NTL, have introduced flat-rate, unlimited Internet access in
Britain. This bold move has led a number of other companies, including British Telecom, to
follow their example. The changeover to fixed-rate pricing is expected to cut the cost of Web
surfing and to lead to a dramatic rise in usage. Andy Mitchell, managing director of AltaVista in
Britain and Ireland, says one in two Britons will be using the Internet within 18 months,
compared with only one in five now. Britain's price war has also spread to the Continent, with
Deutsche Telekom, owner of Europe's largest ISP, T-Online, stating that it will introduce
unlimited Internet access to T-Online customers for a flat fee of approximately $50 beginning
May 1. Nevertheless, a question mark hangs over the future of a number of ISPs in Europe,
including France's LibertySurf and Netherland's World Online, which make their money by
dividing with the phone company the revenues derived from Internet calls. The move to cheap,
unlimited access makes their business models appear outdated, and as phone charges fall they
will be forced to discover new sources of revenue.
"Tech Investors Get Northern Exposure"
Tornado-Insider.com (04/07/00); (Middleton, Guy):
Iceland is one of the world's top technology countries, and it's geographical disconnection from
the rest of the world makes it well suited as an adopter of high technology, said Finance Minister
Geir Haarde, speaking at a recent venture conference in Reykjavik. Indeed, Haarde's words ring
true, as it has been estimated that anywhere from 74 percent to 83 percent of households in
Iceland have Internet access, which would easily make Iceland the top country in the world in
terms of Internet penetration. The venture conference attracted Iceland's software companies,
and many seemed smitten by the idea of going global. Netwerk CEO Holberg Masson says
Iceland's startups often must look to foreign soils for strategic funding when they seek to go
public. "It's a handicap coming to the market, we don't have the experience here," he says. The
technology sector is just starting to come into its own on Iceland's 15-year-old stock exchange,
which is heavy on large banking and fishing companies. The Icelandic Software Fund began
listing on the exchange in 1997 and has since posted an 800 percent growth rate. Meanwhile,
Iceland's Form.is is looking to secure 20 million euros in funding for a pan-European launch of
systems that will enable EU governments to place government forms on the Internet. Form.is
will trial the systems in Iceland and Denmark.
http://tornado-insider.com/programs/publish/fv.asp?article_id=198
"Web Firms May Vastly Inflate Claims of 'Hits'"
Los Angeles Times (04/17/00) P. A1; (Menn, Joseph):
With no guidelines in place to govern the measurement of Internet traffic, many Web sites are
significantly exaggerating the number of hits they receive in order to maximize ad revenue. In
fact, site operators often boost the traffic figures they give to advertisers, investors, and the
public by 50 percent to 100 percent, experts say. Content sites are particularly prone to
exaggerating traffic numbers, since success for many depends on Forrester Research's projected
rise in online ads from $2.8 billion last year to $22 billion by 2004. While Web traffic survey
firms Nielsen NetRatings and Media Metrix publish traffic data for the 50 most popular sites,
less visited sites simply report figures recorded by their own in-house systems. Traffic figures
are rather subjective since some numbers include traffic generated in-house or by search engine
robots, while other figures do not. Auditors counting hits frequently argue with site operators
over whether search engine hits should be included in statistics, as well as whether one user
accessing a page with 10 graphical elements should count as 10 hits or only one. In addition to
the problems involved in counting hits, determining ad viewership and click-through rates is also
difficult. Web market research firms usually do not measure how many surfers actually click on a
banner ad, and site operators often inflate ad figures. Complicating the matter, hackers can set
up their own sites with ads, and then send false clicks through the ads repeatedly. Advertisers
are beginning to demand more accountability for online advertising, and some are switching to
a pay-per-lead model or even a pay-per-sale model.
"Microsoft Declares Security Flaw Isn't as Bad as Believed" Wall Street Journal (04/17/00) P.
B8; (Bridis, Ted):
Microsoft says the security flaw found last week in its FrontPage 98 software poses less of a
threat than originally thought. Following reports of the glitch, the software giant on Thursday
acknowledged that illicit code in FrontPage 98 could allow hackers to gain access to hundreds of
thousands of Web sites, possibly exposing sensitive data. Initial reports said the code included
a secret password, "Netscape engineers are weenies," which allowed outsiders to access multiple
Web sites on a single server. However, Microsoft now says the flaw requires that a user have the
system administrator's permission to view files. While investigating the password flaw, security
experts found a second flaw in FrontPage 98 that could enable hackers to run unauthorized
programs on a server or to make the server crash. Microsoft admits that this second flaw
"significantly increases the threat to users of these products." Both the "weenies" flaw and the
server vulnerability reside in the "dvwssr.dll" file, which Microsoft recommends that users delete
immediately.
"Anti-Spam Group Pushing Hard for Legislation"
Newsbytes (04/14/00); (McGuire, David):
ChooseYourMail.com gave Congress a tape containing 2.76 million spam messages last week
as part of an effort to help grease the wheels of anti-spam legislation sponsored by Rep. Gary
Miller (R-Calif.). Miller's bill, which has been approved by the Committee on Telecommunications, Trade and Consumer Protection, gives ISPs the right to
ban spam from their services and sue violators. ChooseYourMail.com President Ian Oxman
warns that spam is a threat to e-commerce. The company recently released a new survey
finding that most Internet users believe that the e-commerce sites they visit are responsible for
producing spam. More than seven of 10 consumers say it is "somewhat likely" that e-commerce
sites are giving their email addresses to spammers, the poll finds.
SURVEY SHOWS FEW TRUST PROMISES ON ONLINE PRIVACY:
Eighty-two percent of households with Internet access
believe--somewhat or strongly--that the government needs to
regulate online companies' use of consumers' personal data,
according to a new poll from market researcher Odyssey. Further,
92 percent of Internet-connected households say they do not trust
Web sites to safeguard the confidentiality of their personal
data, even if the sites promise to do so. Odyssey President
Nicholas Donatiello warns that online companies must act quickly
to stave off the possibility of federal privacy regulation.
"What's striking is how many people already want the government
to intervene," he says of the poll's results. The Odyssey survey
also finds that online shopping has shot up from 17 million
purchases during the last six months of 1997 to 191 million
purchases during the latter half of 1999. Many consumers are
willing to set aside their privacy fears in order to shop online,
Donatiello says, adding that privacy concerns can still hamper
the growth of e-commerce. (New York Times, 17 April 2000)
Dear Internet Shopping 24/7 Project reader, |
FORD, TEXAS BATTLE OVER WEB SITE
Ford Motor is engaging the state of Texas in a legal battle to
determine the definition of an online sale. Texas argued during
a court hearing Wednesday that its laws are quite clear that
automobiles may not be directly sold in the state without a state
franchise license, prompting Ford to argue that its cars are not
truly being sold on the Internet. The matter stems from actions
by state motor vehicle officials to stop Ford from advertising
the sale of used cars on a Web site. Ford officials contend that
Texas is hampering the growth of e-commerce. (Associated Press, 13 April
2000)
"E-Benchmarking: The Latest E-Trend"
CFO (03/00) Vol. 16, No. 3, P. 27; (Frieswick, Kris):
Consulting firms are beginning to offer Internet startups e-benchmarking services
that evaluate the effectiveness of a Web site and e-business strategy.
PricewaterhouseCoopers offers the E-Business Maturity Model, which assesses
an e-business model using over 700 practice statements in nine areas, such as
security and strategy. Clients can also pay an extra fee for help in meeting their
e-business objectives. Meanwhile, Forrester Research will soon offer an online
tracking tool called E-Business Voyage that compares a client's e-business
maturity to that of the industry overall. The tool bases its assessment on 20
questions that users answer in four operational areas. Gartner Group's
GartnerServices, the consulting and management division of the company, offers
an e-channel effectiveness overview assessment. The six-week program
evaluates business-to-consumer e-businesses, and GartnerServices helps clients
carry out e-business strategies for an extra fee.
"E-Strategies Need Expansion"
Frontline Solutions (03/00) Vol. 1, No. 3, P. 10:
The majority of e-commerce strategies lack sufficient planning and leadership,
according to a new KPMG-sponsored survey of 48 firms working in nine
industries, including automotive, aerospace, consumer packaged goods, and
chemicals. Only 26 percent of respondents could identify one designated
e-commerce decision-maker in their organization, despite 65 percent listing
e-commerce to be one their most important initiatives. The survey found that
consumer packaged goods and chemicals industries are the most active in
e-commerce, while e-procurement systems are the leading cost-reduction
e-business initiative. "What we found is that most e-business activities are very
customer- and revenue-driven, which is a fundamental change from past
technology-enabled projects focusing on internal operations and cost reduction,"
says Debra Hofman, managing director of Benchmarking Partners, which
conducted the survey. "This brings a new set of decision-makers to the table
such as sales and marketing executives." Overall, the survey identified many
well-funded e-business technology initiatives but saw few strategic
enterprisewide initiatives benefiting from real leadership.
"E-Tail Gets Derailed: How Web Upstarts Misjudged the Game"
Wall Street Journal (04/05/00) P. A1; (Bulkeley, William M.; Carlton, Jim):
A shakeout among dot-coms seems imminent as startups continue to lose money
and investors become disillusioned with Internet stocks. CDNow, which at one
time seemed poised to lead online music sales, recently announced it might not
have enough money to stay in business. Online retailer Value America has
reduced its workforce by half and cut the number of products it carries, while
BeautyScene.com yesterday sold its name and assets to new investors. The
Internet's efficiency has turned out to be one of the largest problems for online
retailers, since the Web allows consumers to comparison-shop so easily. Beyond
advertising expenses, online retailers are forced to offer extremely low prices,
free shipping, and special promotions to keep customers from clicking to a rival
site. On average, Web companies spend $45 "to acquire a customer who
generally spends $35 and never comes back," says Maurizio Zecchione of
clothing retail site StyleClick.com. Meanwhile, some experts estimate the
average amount spent to gain a single customer is closer to $200. Furthermore,
some online retailers now find it necessary to build warehouses and hire service
representatives, eating into the anticipated cost savings of online business.
Although dot-coms predicted unprofitable beginnings, most expected to finance
their losses through sales of equity, based on the success of Internet IPOs six
months ago. However, investors have now lost their enthusiasm for dot-coms,
and venture capitalists are not likely to rush to finance such unprofitable
companies. Still, well-funded online companies like Amazon.com and online grocer
Webvan Group are likely to succeed in Internet retail, and offline stores that
already have a reputable brand are likely to survive online as well. In addition,
online sales are expected to rise 53 percent to $23 billion this year, says Jupiter
Communications.
U.S.-EU PRIVACY PACT A HURDLE TO GLOBAL E-COMMERCE EFFORTS, SAYS BUSINESS
COALITION:
The privacy pact negotiated between the U.S. and the European
Union is meeting opposition from a new organization, the
National Business Coalition on E-Commerce and Privacy. The
coalition questions the limitations required by the pact, which
basically demands that U.S. companies operate under EU standards
of consumer data disclosure when they work with European
consumers. Specifically, companies are subject to such
provisions as the EU Data Directive, which requires them to
obtain permission to share information concerning customers.
Members of the coalition--General Electric, Home Depot, Fidelity
Investments, Aflac, and others--disagree with the principle of
following laws that do not exist in the U.S. In a letter, the
group points to the fact that the regulation hurts affected U.S.
companies that compete with unaffected ones. It also emphasizes
the EU's lack of support for privacy regulations outlined in the
Financial Services Modernization Act. In effect, the EU is
forcing U.S. businesses to follow its rules or be denied access
to information. The government relations manager of the European
American Business Council, Chris Mustaine, says the companies are
dissatisfied with the scope of protection for financial services.
(Wall Street Journal, 6 April 2000)
"Consumer Groups Warn Over US/EU Data Privacy Act"
Newsbytes (03/31/00); (Dennis, Sylvia):
The Transatlantic Consumer Dialog (TACD) group, representing the interests of
both European and U.S. consumers, is unhappy with the Safe Harbor data
privacy accord agreed to by U.S. and European Union negotiators. Consumer
privacy protections provided by the safe harbor agreement compare unfavorably
with those guaranteed by the EU data protection law, according to the TACD.
Under the EU directive, privacy is a legal right, whereas under the safe harbor
proposal, enforcement of privacy is mostly left up to industry self regulation, the
group contends. U.S. consumer groups are skeptical that self-regulation will
sufficiently protect Europeans' personal data, says the TACD. The TACD is
lobbying for the agreement to be restricted to a time period of finite duration,
during which a full independent audit of the agreement can be undertaken.
PRIVACY ACTIVISTS LOBBY CONGRESS FOR GREATER NET PROTECTIONS:
The House Judiciary Committee heard testimony yesterday calling
for an extension of the Fourth Amendment to cyberspace to provide
Internet users with greater privacy protections. Laws governing
surveillance are out of synch with the fluid nature of the
Internet and do not provide enough privacy protection said James
Dempsey of the Center for Democracy and Technology. "Everywhere
we go on the Internet we leave digital fingerprints that can be
tracked by marketers and government agencies alike," he said.
Lawyers, law professors, and policy analysts also called on
Congress to strengthen online privacy with the search-and-seizure
rights guaranteed by the Fourth Amendment. Privacy advocates are
upset by the FBI's willingness to collect data from digital
information, both private and public, in order to fight crime on
the Internet. (Cnet, 6 April 2000)
"E-Commerce and the Law"
Maclean's Online (04/10/00); (Wood, Chris):
The Mattel legal dispute with hackers involving the popular software filter Cyber
Patrol underscores how difficult it will be for governments to resolve conflicts
involving the Internet. In this case, Mattel filed one suit against a hacker in
British Columbia, another suit against a hacker in Sweden, and then sued them
both in Massachusetts. The company sued Matthew Skala of Canada and Eddy
Jansson of Sweden because they posted a program on the Internet that showed
the list of Web sites protected by Cyber Patrol and the registered secret
passwords of adult users. In this incident, as in several others, the Internet has
shown that lawmakers have some new legal issues to address. The Canadian
government has tried to do just that with its new federal Personal Information
Protection and Electronic Documents Act, which is likely to go into effect in
January. Essentially a privacy law, the legislation would bring Canada up to par
with the European Union on issues related to personal information of customers
and employees. The legislation seeks to treat digital documents and electronic
signatures like paper documents and signatures in ink. Companies doing business
on the Internet would be required to have a formal policy for handling personal
information and to name an official who would be held accountable. In addition,
companies would have to disclose what they collect and why, and give Web
surfers the choice not to provide personal information without having to lose the
opportunity to buy goods and services. Fines would be as costly as $100,000 for
failing to cooperate with investigations. Opposed by e-commerce and privacy
advocates, the bill is even more controversial because it would set a precedent
by allowing provinces to enact laws that mirror the federal requirement. Some
provinces are working on matching legislation but none have been presented as
of yet. Nevertheless, the issues addressed in the Canadian legislation may not
fully apply to a case like Mattel's.
http://www.macleans.ca/pub-doc/2000/04/10/Technology/32979.shtml
"Valley Cool to Cybercrime Plan"
Associated Press (04/06/00); (Mendoza, Martha):
Attorney General Janet Reno did not make much of an impression on Silicon
Valley CEOs at the recent cybercrime conference at Stanford University Law
School. Although Reno asked executives for increased information sharing
between private and public entities, high-tech companies realize that the federal
government does not have the resources to prosecute most cybercrimes.
Therefore, because the Justice Department admits that only one cybercrime
gets prosecuted for every 50 complaints (1998 Justice Department statistics), it
is not worth reporting such crimes and facing the resulting governmental
scrutiny of their operations. Most companies have a lot of proprietary
information that they do not want the government or their competitors to see.
That is why most companies report only the most serious cyber-intrusions to the
FBI. Instead, many companies such as eBay and Oracle use private consultants
to help fight their cyberwars, in an effort to avoid negative publicity and to keep
company secrets out of the hands of government and competitors.
http://dailynews.yahoo.com/h/ap/20000406/tc/cybercrime_4.html
Mr. Schaffer's presentation on e-commerce security.
The new business model of Amazon and Virtual Vineyards
- Gartner's E-Business Resource Center
- E-Business in Switzerland
- New Methods of Work and Electronic Commerce
- FACTORS AFFECTING THE ADOPTION OF AN INTERNET-BASED SALES PRESENCE FOR SMALL BUSINESSES
- Research about E-Business
- E-Business in Switzerland
Recent E-Business sites noted on ISWORLD
THE ABCs OF E-BUSINESS:
The growth of e-business is forcing many IT and business managers
to work together and learn about each other's side of the
business. IT managers are studying finance, marketing, and
sales, while business managers are learning about technology.
Companies say business and IT managers need to share information
in order to satisfy customers, operate efficiently, and obtain a
competitive edge. Today's economy requires a collaborative,
horizontal business model rather than a hierarchical model.
Collaboration often begins with greater communication between
CEOs and CIOs. At First International Bank, CEO Brett Silvers
meets daily with IT vice president John Garner to coordinate the
company's move to e-business, whereas the two executives might
have spoken once a month in the past. Colleges and universities
are now responding to the need for cross-training. Stanford
University's graduate school of business will start offering a
three-day e-commerce program in September, while Bentley College
plans to open an e-commerce education facility in July.
(InformationWeek, 20 March 2000)
"Stamp of Approval Needed for E-Business"
Globetechnology.com (03/23/00); (Geist, Michael):
E-commerce growth can be hindered by excessive regulation, but some laws are
needed both online and off to ensure regulatory fairness. The best strategy for
regulators is consumer education and fraud prevention, allowing people to make
informed choices. Michael Geist, a law professor at the University of Ottawa
School of Law, recently completed a study for the Ontario Ministry of Consumer
and Commercial Relations. The study investigates the impact of e-commerce on
a number of provincially regulated sectors, identifying current e-commerce
business models and looking at the rules governing them before making
recommendations. Different sectors use a number of different models; for
instance, the motor vehicle sector has at least five models--online referral sites,
direct online sales through manufacturer referrals, private car sales,
reverse-auction referral sites, and direct online sales through third-party sites.
One single legal solution is unrealistic; online referral sites are unregulated,
though in the U.S. some states have rules to protect consumers. Existing
legislation handles private motor vehicle sales, but direct online motor vehicle
sales worry regulators the most. Any changes to the regulatory system must be
balanced between facilitating e-commerce and maintaining consumer protection.
The semi-private regulators could sponsor a seal-of-approval program, with an
icon for sites to display--North America's first regulator-backed seal program.
But regulatory cooperation across the continent would be necessary.
- Web Economy BS Generator: Our new dotcom will embrace global
supply-chains. Or maybe it will transform innovative e-markets.
Actually, we want to monetize revolutionary convergence.
- Know the buzzwords, then avoid them.
- http://www.dack.com/web/bullshit.html
- Another goodie from the same site is Flash is Evil: "Incorporating Flash into an HTML page or splash screen is bad, but entire sites built with Flash are positively evil because they make the Web much less usable."
- http://www.dack.com/web/flash_evil.html
- Know the buzzwords, then avoid them.
Friday, March 24, 2000 on
www.goodexperience.com, written by Creative Good president Mark Hurst (mark@creativegood.com).
- About Information Architecture: The word "information architecture"
is used quite a bit in the Web industry and is closely related to
customer experience. Sometimes customer experience and information
architecture will arrive at the same solution -- but they aren't
quite the same thing (though they're both valuable to any
e-business).
- The main difference between information architecture and customer experience is the foundation of each. Customer experience is founded on empathy with, and understanding of, the *customer*. Information architecture, on the other hand, is based on an understanding of *information*.
- Another difference lies in the tools of the two activities. Information architecture focuses on containers of information -- site maps, content inventories -- while customer experience focuses on things closer to what customers actually experience: conversations with customers, research on competitor and comparable sites, and a deep understanding of the company's marketing and product strategy.
- Site maps, which customers rarely use, are rarely in the toolset of customer experience work (though again, they're valuable for information architects to understand the information contained on a site).
- In this informative interview, Lou Rosenfeld and Peter Morville from Argus Associates offer this definition: "Information architecture involves the design of organization, labeling, navigation, and searching systems to help people find and manage information more successfully."
- http://web.oreilly.com/news/infoarch_0100.html
- My definition of customer experience, in turn: Customer experience involves helping customers accomplish their goals quickly and easily on a website. And if customers particularly need better navigation or searching, those should be improved as well.
- Richard Saul Wurman coined the term "information architecture" decades ago. He's the author of the excellent "Information Anxiety" (an early inspiration for me) and the creator of the influential TED conferences. Here's an interview of Wurman and a recent review of "Understanding USA," his most recent book, in Fast Company.
- http://www.frontwheeldrive.com/wurman.html
- http://www.fastcompany.com/online/32/benchmark.html
- Another resource is this column from last October, which gives a good description of the information architect's tools. The content inventory, content map and site map are all described.
- http://www.newstrolls.com/news/dev/downes/column102599.htm
- And finally, this Saturday, April 8, I'm scheduled to speak at the ASIS conference in Boston, which will feature leading information architects. I plan to speak speak about customer experience, how it differs from information architecture, and how information architecture should be contained within customer experience work.
- http://www.asis.org/Conferences/Summit2000/program.html
- The main difference between information architecture and customer experience is the foundation of each. Customer experience is founded on empathy with, and understanding of, the *customer*. Information architecture, on the other hand, is based on an understanding of *information*.
Monday, April 3, 2000 on
www.goodexperience.com, written by Creative Good president Mark Hurst (mark@creativegood.com).
"Fraud on the Net"
Business Week (04/03/00) No. 3675, P. EB58; (Carney, Dan):
New scams have been popping up online with unprecedented ferocity due to the
Internet's ability to reach millions of people simultaneously and provide
anonymity for perpetrators. Credit-card fraud, auction scams, and get-rich-quick
schemes have now become common on the Internet. The National Consumers
League says people and businesses lost $3.2 billion in 1999 due to Internet
fraud, and the FTC says one-fourth of its consumer complaints deal with the
Internet, as compared to only 3 percent in 1997. One of the newest scams is
hijacking Web pages and trafficking visitors to other sites, such as porn pages,
in order to inflate that site's number of "hits" and boost advertising rates.
Another new scheme is the planting of a bogus press release on a company's
Web site that says the particular company is going to be bought at a huge
increase over its current share price, causing the stock to surge. However,
there are various new software products that can be used to combat some of
these scams. For example, Expedia.com has profiling software that can alert
system operators to suspicious activity by analyzing whether a credit-card
number is coming from the same Internet address it always comes from, and
whether it is routed through a computer with a history of fraud. After all this
data is analyzed, the computer places a risk rating on the transaction, and the
merchant can then decide whether to pursue further investigation. Federal help
is also on the way. In May, the FBI will team with the National White Collar Crime
Center to create an Internet fraud center with 161 full-time employees.
"Companies Aren't Rushing to Conduct Business Online"
Computerworld (03/27/00) Vol. 34, No. 13, P. 20; (King, Julia):
Industrial corporations are not moving quickly into e-business despite media
hype that suggests otherwise, according to a recent PricewaterhouseCoopers
survey. Only 40 percent of large firms take orders online, and just 28 percent
accept electronic payments, the survey shows. Although respondents believe
that e-business is important, only a fourth of those surveyed have made a
significant move into e-business. "These are big companies that have a lot at
stake with their brands, relationships with supply chain partners, and customer
reactions," says Ed Berryman, the study's author. Large companies are taking a
cautious approach to e-business and are watching for examples of other major
firms migrating online, Berryman says. These companies are readying themselves
internally to move into e-business, and plan to bring in 20 percent of revenue
from e-commerce by 2003. Currently, 79 percent of respondents say 5 percent
of revenue comes from e-commerce.
http://www.computerworld.com/home/print.nsf/all/000327CE22
KEEP AWAY FROM MY COOKIES, MORE MARKETERS SAY:
Prompted primarily by a desire to retain online consumer
information for their own corporate use, several large companies
are prohibiting Internet ad networks from using data gathered
about the personal interests and Web surfing habits of visitors
to the corporate Web sites and the various Web sites containing
corporate advertisements. Procter & Gamble, General Motors, and
Ford Motor Co. are leading the initiative to safeguard their consumer
data from Internet ad networks such as DoubleClick, Real Media,
and MatchLogic, which place advertisements on Web pages and then
gather information by using cookies to track how individual
visitors navigate sites containing those ads. Such information
is used by both the advertiser and the ad network to tailor Web
sites and advertisements to the preferences of individual
visitors. P&G and Ford have restricted how MatchLogic uses data
gathered from their Web sites. Other companies, including IBM
and WPP Group's J. Walter Thompson, have joined the protective
initiative and made arrangements with Web sites and ad networks
to ensure data collected via online ad campaigns is used solely
by the corporations and not the Web sites or online advertising
firms. (Wall Street Journal, 20 March 2000)
"Accuracy Wins"
Intelligent Enterprise (03/20/00) Vol. 3, No. 5, P. 45; (Nachtwey, Don):
Last year's holiday shopping season saw online sales surpass analyst predictions, and
e-commerce stores were caught off-guard and in many cases found themselves unable to
deliver the goods. Although e-commerce is not going to come to a grinding halt, many shoppers
are going to put their holiday experience to use in 2000 by purchasing ahead and by not
returning to the stores that botched their orders in 1999. This unfortunate loss of business could
have been avoided with more accurate information, which the Internet makes possible.
Consumers provide information on their willingness to pay for goods or services and sellers offer
a price at which they can still make a normal profit. For most products, consumers do not have a
specific price in mind, though they may have a price cap, and this is what the seller must seek
to discover. Typically, all the information that would be necessary to make an attractive sales
offer to a potential customer is being gathered even before customers arrive at a Web site,
whether through the use of cookies, CGI script, or infomediaries. But this information only adds
value if it supports business decisions. In 1999, most merchants failed to adopt
decision-support technologies, resulting in a mere 2 percent of the vast amount of collected
customer data being used--data that would have alerted production managers to prepare for
the spike in demand. This negligence was likely the result of a negative attitude toward the use
of external data and a lack of marketing maturity. Ultimately, these problems will be overcome,
and when e-commerce has reached an 80 percent accuracy rate, the results will move freely
through the supply chain and optimize distribution systems.
"Government E-Commerce Data to Come Out at a Crawl"
Interactive Week (03/13/00) Vol. 7, No. 10, P. 22; (Trager, Louis):
The Department of Commerce (DOC) is planning to release its figures for the 1998/1999
e-commerce market in Spring 2001, claiming such a lengthy time frame is needed to gather
and analyze the massive amount of data involved. Many retailers and consumers are frustrated
at such a long delay and believe the fast pace of technology will mean numbers for 1998/1999
will be virtually obsolete by their scheduled release date. Also, some private researchers claim
the DOC analysis is based on a narrow definition of retailing that excludes many online
transactions from the study. Prior government surveys included data for manufacturing,
wholesaling, food services, and business and professional services but neglected consumer
sales by manufacturers and distributors, consumer-to-consumer auctions, online brokerages,
and online ticket sales. The government has promised to revise its definitions for online
retailing. Analysts say that once the operational differences are accounted for, government
e-commerce figures are increasingly comparable to those released by private research firms.
http://www.zdnet.com/intweek/stories/news/0,4164,2468734,00.html
"Firestorm in Cyberspace"
Washington Post (03/19/00) P. B7; (Ignatius, David):
Software developers last month launched a large-scale protest against a patent law that
developers say could stifle innovation and harm the entire Internet community. The law in
question resulted from a federal appeals court ruling two years ago that allows companies to
obtain broad patents for business methods. Amazon holds two controversial patents, including a
patent for one-click ordering, which allows consumers to buy an item just by clicking on it, and
another patent for its "Associates" program, which lets other sites direct business to Amazon in
exchange for part for of the revenue. The rebellion against such patents gained speed on Feb.
28, when software expert Tim O'Reilly posted an open letter on his Web site asking Amazon
CEO Jeff Bezos to stop enforcing the one-click patent. Thousands of Internet activists supported
O'Reilly's letter, while another group began pushing for a boycott on Amazon. After speaking
with O'Reilly on March 1, Bezos joined the protestors, saying current patent laws could damage
everyone, including Amazon. Bezos suggested that patents for software and business methods
should have a shorter duration than other patents, and that a public comment period should be
held before a patent is granted to determine whether the potential patent is a true innovation.
The protesters, supported by Harvard law professor Lawrence Lessig, are now arguing for the
creation of a "prior art" database that would make it difficult to patent general ideas. In
addition, the protestors favor a "public Internet patent pool," which would provide companies
that promised not to aggressively enforce their patents with free access to a pool of patents.
http://www.washingtonpost.com/wp-srv/WPlate/2000-03/19/172l-031900-idx.html
Business 2.0 has a cover story on Smart Way to Start an
Internet Company. This includes some hints for a business plan (aka the plan for your final project). Other information about business
plans can be found at Bplans.com, Business Resource Software, and BizPlanIt.com.
"Patently Absurd"
New York Times Magazine (03/12/00) P. 44; (Gleick, James):
The patent system was originally designed to protect inventors and thereby encourage
innovation, but in today's e-commerce economy the system has mutated into a form that more
than anything else threatens the very entrepreneurial spirit it was meant to safeguard. To
qualify for a patent, an item no longer needs to be a tangible product with form and
substance--thoughts and abstractions are now equally eligible. Because of this, large firms have
begun taking fundamental practices and business methods that have been in existence for
years and incorporating them into technology-based applications, while claiming the repackaged
products are innovative items worthy of patents. The U.S. Patent Office issues 10,000 patents
every three weeks, and its examiners appear to be operating under the misleading impression
that more is better. In fact, software patents have become the most frequently issued patents,
and many corporations are wielding such patents as weapons against competitors, hoping to
stifle development of rival technologies. As the blanket of patents grows denser, consumers
must pay higher prices and individuals genuinely interested in creating something new and
unique must surmount more regulatory hurdles. Patent Office officials argue every patent
represents a good idea that merits reward, but corporations managed to survive just fine without
them during the previous two decades when PCs, the Internet, and related software and
hardware were in their infancy. The corporate legal skirmish over patents only truly began in
earnest in 1998. That year, a ruling by a Massachusetts federal court that stripped a company
of its patent for a data processing method was overturned by the Court of Appeals and the
patent reinstated.
http://www.nytimes.com/library/magazine/home/20000312mag-patents.html
"Real Challenge for E-Commerce Is People's Fears"
Federal Times (03/20/00) Vol. 36, No. 7, P. 9; (McElveen, Renee):
Federal managers should help allay the fears of employees about e-commerce by encouraging
senior employees with institutional knowledge to work more closely with young employees with
strong tech skills and by redesigning the way their new duties are to be performed using
e-commerce. Rep. Thomas Davis (R-Va.) is supporting H.R. 3582, a bill that would encourage
government agencies to drop requirements that IT contractors have college degrees, a
regulation Davis believes has little bearing on whether an individual is capable of the job. "You
need to reinvent government in a significant fashion in the information age," he said. Deidre
Lee of the Office of Management and Budget is concerned that Davis' legislation will lower
standards and ultimately harm the federal contractor work force. "We need to have qualified
and skilled people spending your tax dollars," she said. No matter how that debate ends the
federal workforce will be transformed by e-commerce, most notably in that jobs will be lost in an
effort to retain those employees most well-adapted to the new technology. Other key issues
facing the government concerning the rise of e-commerce include the Sept. 30, 2001, expiration
of the three-year e-commerce tax moratorium and the level of protection that consumers of
e-commerce should be granted.
"Online Europe No Longer Chasing the United States"
InfoWorld.com (03/14/00); (Gray, Douglas F.):
The European Internet industry has finally come into its own as a rival of the U.S. Internet
industry, and stands to grow stronger still if flat-rate Internet access is implemented in Europe,
says AOL Europe COO Konrad Hilbers, speaking at the ISP2000 conference. "Telcos and
regulators hold the future of European economies in their hands," Hilbers says. Europe's single
currency and growing sense of entrepreneurship is boosting the new economy in Europe. "People
are leaving school to work for Internet startups now," Hilbers says. Americans spend more than
twice as much time online as Europeans, but the global system for mobile (GSM)
communications wireless standard will give Europe an advantage in this area because of the
bright future predicted for the wireless application protocol (WAP), Hilbers says.
http://www.infoworld.com/articles/en/xml/00/03/14/000314enchasing.xml
"Crafting the Next PC Interface"
PC World Online (03/16/00); (Mainelli, Tom):
As part of Thursday's Intel-sponsored Computing Continuum, a panel of experts chaired by
Massachusetts Institute of Technology senior research scientist Dr. Victor Zue discussed their
ideas for improving the human-PC interface. Stanford University computer science and electrical
engineering professor Patrick Hanrahan envisions what he terms the "overface," a system in
which a person simultaneously communicates with multiple instead of single devices, possibly
through wall-size touch-sensitive displays, in a fully interactive workspace. Director Ron Cole of
the University of Colorado's Center for Spoken Language Understanding believes individuals
should communicate with PCs as they would with people, interacting with an animated
conversational computer agent that incorporates both visual and auditory elements. University
of Maryland computer science professor Ben Shneiderman says the visual component is most
crucial to human-PC interaction and claims the key is to improve visual displays by making
them more consistent, controllable, and informative. Carnegie Mellon University computer
science and robotics professor Raj Reddy put forth a similar idea when he said interfaces need
to cater to human strengths. "Future systems have to be taught the needs of human beings,"
he declared.
http://www.pcworld.com/pcwtoday/article/0,1510,15774,00.html
"Lawmakers Discuss Their Role in Internet Growth"
Computer Reseller News Online (03/14/00); (Rogers, Amy):
FTC Commissioner Orson Swindle, speaking Tuesday as a panelist at the Global Internet
Summit 2000, cautioned against federal regulation of the Internet industry's privacy efforts,
calling instead for "a model that allows for maturation of technology tools" that give consumers
control over their personal data. Privacy concerns must be incorporated into the corporate
mindset, Swindle said, adding that failure to do so will give the government the green light to
impose industry regulations. Still, Rep. Bob Goodlatte (R-Va.) urged the introduction of an
"appropriate" federal framework to guide the expansion of the Internet. The government has a
role to play in protecting its citizens from online terrorists, the sale of personal data, child
pornography, and other threats, Goodlatte said. Rep. Rick Boucher (D-Va.) said lawmakers
should give ISPs "full legal voice" to crack down on spammers. Boucher also called for
lawmakers to give digital signatures equal legal status with ink on paper.
http://www.crn.com/search/display.asp?ArticleID=14797
LONG LINE ONLINE FOR STEPHEN KING E-NOVELLA:
The online-only release of author Stephen King's latest novella,
"Riding the Bullet," has sparked both exceptional demand for the
story and considerable debate about the electronic publishing
industry as a whole. King himself has sought to lessen the
controversy surrounding his online book. King's publisher, Simon
& Schuster, has said that the popularity of the novella draws
attention to the issue of when an online book distribution firm
becomes a publisher, and thus a competitor of Simon & Schuster.
Simon & Schuster barred Fatbrain.com, a company that pays authors
for their stories and sells them online, from selling King's
book. Whether the demand for "Riding the Bullet" indicates
strong demand for all online books remains to be seen. Some say
the book's popularity is due only to its author and the fact that
it is free on many sites, such as Amazon.com. Yet others believe
that the demand indicates an emerging trend in the publishing
industry. Jack Romanos, COO of Simon & Schuster, compares the
early demand to that of the unanticipated demand for the first
paperback books. (New York Times, 16 March 2000)
- Weinberg's E-Commerce and Marketing Page
- Weinberg's favorite shopping links
- Weinberg's diary
- The Brucies
- The Noosies
- Weinberg's favorite shopping links
TEACHING E-COMMERCE BY SHOPPING ONLY ONLINE:
Bruce. D. Weinberg, an assistant professor at Boston University,
decided last September that as an experiment for his e-commerce
course he would only purchase items online. Weinberg details all
of his Internet shopping experiences in a diary posted on the
Web, awarding "Brucies" to companies with superior service and
"Noosies" to those who fail to meet his expectations and needs.
The experiment is scheduled to end in September 2000, and during
the past six months Weinberg has entered a brick-and-mortar
store only once. Students in Weinberg's MBA-level course are
required to read his diary, complete a variety of online buying
and selling exercises, and document each e-commerce experience in
a paper. Mani Rafii, one of Weinberg's students, says the
experiment is helping him "understand both sides of the
industry--what the consumer wants, like fast delivery and no
minimum orders, and what problems businesses are likely to run
into." Another student, Greg Crescenzi, finds himself taking "a
much more critical look at Web sites" as a result of his
participation in the course. (Chronicle of Higher Education, 10
March 2000)
INTERNET VOTING CLICKS IN ARIZONA:
Online voting in Arizona's Democratic primary apparently more
than quintupled the number of people voting, party officials say,
and accounted for more than 40 percent of all votes cast.
The primary marked the first use of Internet voting in a public
election. The turnout was projected to be 80,000 voters, or 10
percent of Arizona's registered Democrats, compared with 12,000
voters in 1996. Vice President Al Gore won 55,500 votes, while
Bill Bradley claimed 14,000 votes. Election.com, which ran the
online voting systems, says more elections will take place on the
Internet before the general election in November. (Financial Times, 13 March
2000)
INTERNET BOARD REVERSES, WILL HOLD ELECTIONS:
Responding to public criticism, the Internet Corporation for
Assigned Names and Numbers (ICANN) has decided to dispense with
its plan to elect a special council charged with selecting nine
of the group's board members, and instead allow Internet users to
directly elect five members of the board. ICANN will examine how
well the direct election works before determining how the
remaining four board members are selected. ICANN's about-face was
well received by the Internet community. "This is a defining
moment for the Internet," said Center for Democracy and Technology
(CDT) Executive Director Jerry Berman. CDT and advocacy group
Common Cause recently released a report criticizing ICANN's
original plan. After the report's release, ICANN officials said
that time constraints effectively prohibited the organization from
changing its plan. (Washington Post, 11 March 2000)
"Enabling a Successful e-Business Strategy Requires a Detailed Business
Process Map"
InfoWorld (03/06/00) Vol. 22, No. 10, P. 64; (Biggs, Maggie):
A detailed business roadmap is key to a successful e-business implementation,
writes InfoWorld's Maggie Biggs. Biggs predicts greater development in the
business-to-business e-commerce space this year, which she says will create
the need for businesses to examine their core processes to determine which are
most compatible with the Internet. As companies assess their core processes, a
logical business roadmap will emerge, enabling the company to determine the
risks of e-business while designing a plan to manage those risks, says Biggs. In
creating an e-business roadmap, Biggs suggests that companies start by
mapping existing business processes using graphical tools or process modeling
tools. Companies should examine how existing Web-enabled business processes
are affecting the bottom line, and identify the actions rivals have taken to
automate their processes, keeping an eye on how those actions have affected
the market. Biggs says that next, companies should assess the long-term value
of Web-enabled business processes, examining factors such as profitability,
growth, time to market, and customer service. Companies should then consider
their existing staff, identifying which, if any, additional skills would be necessary
to run an e-business. Biggs says that after completing these analyses, a
company should be able to identify which business processes are best suited for
the Web. In implementing the e-business strategy, Biggs says that companies
should identify any weaknesses in existing systems and processes that might
complicate the end result.
"A Glimpse of Cyberwarfare"
U.S. News & World Report (03/13/00) Vol. 128, No. 10, P. 32; (Strobel,
Warren P.):
Various governments around the world are using the Internet to suppress
dissent, harass their enemies, obtain trade secrets, and even prepare for war.
Although computer security experts admit that some of the worst-case
scenarios have yet to happen, such as rogue governments using computers to
wreak havoc on financial systems, they warn that more than 12 countries,
including China, Iraq, Iran, and Russia already possess fairly sophisticated
information-warfare know-how. For example, China is currently debating whether
to devote a fourth branch of its military solely to information warfare, and the
Pentagon will consolidate its offensive cyberwarfare programs at the U.S. Space
Command in Colorado later this year. Experts say cyberwars pose great ethical
and legal dilemmas, as there is no clear separation point between military sites
and those devoted to civilian infrastructure, as in physical wars. Military analysts
admit that the U.S. may be the biggest loser if cyberwarfare becomes an
accepted form of battle, as it is the country most tightly strung together by
computer networks. Because of the widespread damage that cyberwarfare could
lead to, some countries such as Russia have proposed treaties on the matter,
similar to arms control agreements. However, experts say verifying such an
agreement would be nearly impossible given the nature of computer networks.
Electronic spying could also become as problematic as cyberwarfare, as many
government agencies are rich with detailed, classified information that is
extremely valuable to an enemy. Security professionals say not only can
information be taken from a computer, but an unfriendly entity could also place
bogus information into a computer, causing military leaders to make decisions
about troop locations or battlefield conditions based on fictional data. Most
military analysts contend that the computer has made the world an even more
dangerous place.
"Seeking the Deeper Path to E-Success"
InformationWeek (03/06/00) No. 776, P. 48; (Chabrow, Eric):
Companies that have the most success with e-business are those that not only
invest heavily in IT, but also show a strong commitment to e-business best
practices, according to a recently released InformationWeek Research study.
Significant business improvements have been made by companies that have
implemented at least three of the following e-business practices: implementing
customer-facing information systems, moving legacy electronic processes to
e-business, streamlining value or supply chains, and redefining corporate culture
around e-business, the study shows. Of the companies that have adopted at
least three of those four practices, 75 percent say the online efforts offer a
competitive edge, boost customer satisfaction, lower operating costs, create
new revenue sources, and raise profits. The survey shows no large differences
between IT managers and business managers in their outlook on e-business. IT
managers and business managers alike say IT managers are spearheading
e-business technology decisions. In addition, 91 percent of respondents say IT's
increased role in overall business is the most important aspect in changing
corporate strategy. The second most important factor is using IT to increase
customer value, listed by 84 percent. Other changes respondents felt were
important include partnering with Internet startups, acquiring e-businesses to
broaden offerings, mergers and acquisitions, spinning off e-businesses, and
holding IPOs. Although companies transitioning to the Internet face many
business challenges, business issues are overshadowed by the difficulties of
keeping up with the pace of change in technology, respondents say.
http://www.informationweek.com/776/transform.htm
"E-Business Analysis Tools Are Key for Dot-Coms"
PC Week Online (03/12/00); (Hammond, Mark):
Analytic intelligence, which provides precise and profitable information about
customers, is becoming a mission-critical element of e-commerce, because it
produces personalized content that can be used to attract business. Dot-coms
are employing new tools enabling them to access, analyze, and share
e-commerce data to build loyalty among customers and suppliers and build
profit. "The focus has been on getting the operational systems up," said Douglas
Hackney, analyst and president of the Enterprise Group. "What they haven't had
is the why." Among the challenges of analytic intelligence is parsing the large
amounts of data into a manageable volume, maintaining customer privacy, and,
for traditional companies moving online, blending analyzed Web data with back-
and front-office data to create a comprehensive view. "There are difficulties in
doing this and no magic bullet to solve it," said Joe Whitehurst, analyst and
president of Whitehurst Associates. "It takes a lot of hard work and a lot of
attention to detail. Demand for it is large, especially for Internet-based
e-commerce companies--startups in particular." Well-implemented solutions can
be very valuable, as Outpost.com realized after 25 percent of customers
identified as inactive through analysis responded to a direct marketing effort by
returning to the Web site and making purchases. "I'm very pleased with the ROI,"
said Brett Lauter, Outpost's director of CRM. "It's ultraimportant to do this, to
build a trusted and valued relationship with your customer." Many companies are
making a name for themselves in the growing business intelligence and data
warehousing industry through offerings and partnerships, including Oracle, SAS,
IBM, Microsoft, Hyperion Solutions, and such startups as Accrue Software and
WebTrends.
http://www.zdnet.com/pcweek/stories/news/0,4153,2459218,00.html
"CEOs Care, But Don't Act, About Their Firms' Net Reputation"
E-Commerce Times (03/06/00); (Fridman, Sherman):
Sixty-four percent of CEOs and senior managers report that their company's
Web site could be doing a better job of improving the corporate reputation,
according to a survey conducted by Yankelovich Partners. Only 9 percent of
those surveyed feel that their company is maximizing the potential offered by
the Web site. Yankelovich surveyed 600 CEOs and senior managers on behalf of
Chief Executive magazine and public relations firm Hill and Knowlton. "These
numbers reflect the growing interest in assessing corporate image and
establishing a reputation benchmark," said Harlan Teller, executive managing
director of Hill and Knowlton's U.S. Corporate Practice. Yet while many managers
appear to be concerned about reputation, few are working to enhance their
firm's image; less than half of the respondents said their firm has an Internet
strategy related to corporate image. The survey reported that 40 percent of
CEOs are worried about what unhappy customers might be saying about their
company online and about 25 percent expressed concern for what ex-employees
might be saying online. "We expect at some point this level of concern will
translate into a higher percentage of companies developing programs to more
effectively manage Internet communications," says Tom Hoog, CEO of Hill and
Knowlton.
http://www.ecommercetimes.com/news/articles2000/000306-nb1.shtml
The Rx.com presentation by Chris Keefe and Ken Oberholz of BKD.
"Can You?"
Economist (03/04/00) Vol. 354, No. 8160, P. 63:
The Internet Corporation for Assigned Names and Numbers (ICANN) meeting in Cairo will be an
important gathering because it could determine how technology regulators will address the
growing problems regarding domain names. The Internet has grown so much in recent years
that some critics contend that there are no more recognizable domain names to claim.
Furthermore, a company doing business on the Internet cannot share the same name with
another e-commerce firm, as can be done in the brick-and-mortar world if companies are doing
business in different markets. Ultimately, a lack of name space could hurt the growth of
e-commerce. To address this concern a working group within ICANN has come up with a strategy
to add new "top-level" domains to the domain name system, an idea not too far off from what
Internet pioneer Jon Postel had in mind. However, creating new top-level domains is opposed
by owners of trademarks, primarily because they have fought cybersquatters and have invested
a lot of money in their domain names, and because new domain names might dilute their
brands. Trademark owners insist that all names in current domains should be used before new
top-level domains are created. For ICANN, the organization could become an important part of
Internet governance if it is able to bring the two sides to an agreement. On the other hand,
ICANN is likely to be seen as a tool of business if there is a fall out. At the same time, ICANN
must not forget about the Internet user, as too many domains could make the Internet too
confusing for users to navigate.
"Courts Set Cyberstandards for Two Key Areas"
Washington Technology (03/06/00) Vol. 14, No. 23, P. 16; (Cain, Jonathan):
Recent appeal rulings in two court cases demonstrate the importance of choosing a domain
name carefully and how the use of trademarks on the Internet is different from using them in
the brick-and-mortar world. One case involved a trademark infringement claim against Disney
for using the mark that identifies its Go Network. Another company had been using a similar
logo as its trademark for about a year before Go was launched, and the court of appeals agreed
that the Disney logo was confusingly similar to the earlier mark. The appeals court affirmed the
lower court's injunction against Disney's use of its mark, employing a trademark infringement
analysis tailored to Internet commerce. In the context of the Internet, the three most important
factors in deciding whether a trademark infringes on another are the apparent similarity of the
marks; the relatedness of the goods or services; and the "simultaneous use of the Web as a
marketing channel." The Disney decision recognizes the difficulty that consumers have in
determining who is sponsoring an e-commerce Web site--on the Internet, marks are nearly the
only way for a consumer to distinguish among sellers. The likelihood of consumer confusion
among trademarks is judged from the viewpoint of the least sophisticated consumer. U.S.
registration is essential when adopting a mark for use in e-commerce, and foreign registrations
are important as well; a company must search thoroughly for potentially similar marks. The
second case was the first time a federal appeals court has considered the Anticybersquatting
Consumer Protection Act (ACPA). The act allows a federal court to award an injunction and
damages if it finds that a cybersquatter has registered or used a domain name that is identical
or confusingly similar to a distinctive or famous mark, with the intention of profiting from the
mark. Prior to the ACPA, famous marks could be protected under anti-dilution sections of the
federal trademark law, but other marks were not.
THE DOT-COM WORLD OPENS NEW OPPORTUNITIES FOR WOMEN TO LEAD:
The Internet explosion has created a new business culture in
which women can more easily climb the corporate ladder. Research
firm VentureOne found that the number of women in senior
management positions at venture-capital financed Internet
startups rose from 21 percent in 1998 to 45 percent in 1999. The
proportion of women CEOs at these Web companies also rose, from 4
percent in 1998 to 6 percent in 1999. In contrast, research
conducted by Catalyst revealed that in 1998 fewer than 1 percent
of women held the title of CEO at Fortune 500 companies. Factors
contributing to this shift away from a male-dominated e-commerce
world include the enormous demand by Internet companies for
knowledgeable, talented employees and the less hierarchical
structure of Internet businesses. Web companies, especially the
smaller ones, are under great pressure to achieve quick success
and face stiff competition in finding the people who will make
that happen. As President Gayle Crowell of e.piphany.net phrases
it, "The Internet is a new game, the old rules don't apply."
(New York Times, 9 March 2000)
Internet growth and development statistics are available.
Taking Hold as E-Commerce Tool and Use E-Mail To Energize Your Customer Service. Examples of Amazon's push technology for books, CD's and an advertising example.
China Opens the Door to E-Commerce…Slowly
GartnerGroup's Dataquest Says Business-to-Consumer E-Commerce to Become a $380 Billion Industry by 2003
Total 1998-1999 | Estimated Growth Per Day | |
|---|---|---|
World population | | |
Web pages | | |
Devices accessing the Web | | |
Worldwide Internet users | | |
Hosts | | |
Domain names |
|
|
Unique Web sites | |
|
*Source: U.S Bureau of the Census, NEC Research, IDC, Internet Software Consortium, Network Solutions, Online Computer Library Center
- Press Release
- Remarks by Secretary of Commerce William M. Daley
- Measuring Electronic Business: Definitions, Underlying Concepts, and Measurement Plans
- Monthly Retail Trade Data
- E-Commerce Frequently Asked Questions (FAQ)
- Remarks by Secretary of Commerce William M. Daley
US released its
first ever Internet sales figures on Friday March 3
E-retailers need to debug shopping Study: A quarter of online purchase attempts failed
Look at the website for Amazon.com for discussion.
What is a good e-commerce site?
E-Commerce: How it Works
- General Characteristics
- Gender Characteristics
- Technology Characteristics
- Browsing Behavior
- Outcomes
- Security and Privacy
- Relative Importance
- Deciding Factor
- Data Collection Knowledge
- Data Collection Preferences
- How Do you Learn about Pages
- Other Metrics
- Gender Characteristics
User Profiles
Beaver College -- a school outside Philadelphia that originated in Beaver County, Pennsylvania -- is considering a name change. The word beaver, often used in
vulgar reference to the female anatomy, is blocked by some Internet filters
designed to prevent access to pornography. Research also shows that 30-percent
of the school's prospective students decide against it because of the name.
from NPR Online: http://search.npr.org/cf/cmn/cmnps05fm.cfm?SegID=71034
Recent articles about B2B plans.
"When the Internet Moves Faster Than the Courts"
New York Times Online (02/25/00); (Kaplan, Carl S.):
Internet-related law cases pose a problem to higher courts because the facts as
determined by a trial court are often rendered obsolete by the time a case can be
reviewed by higher judges, according to an article by Stuart M. Benjamin, associate
professor at the University of San Diego Law School. In his article, "Stepping Into
the Same River Twice; Rapidly Changing Facts and the Appellate Process," which
appeared in the December issue of the Texas Law Review, Benjamin cites the Reno
v. ACLU dispute as a case in point. In that case, which concerned the regulation of
indecent content on the Internet, roughly a year passed between an initial ruling
from a district court and the Supreme Court's decision on the matter. In challenging
the law, the ACLU had argued that it was not economically viable for some Web
sites to use age verification systems to keep children from viewing inappropriate
content. By the time the case went to the Supreme Court, technological advances
in age verification systems invalidated that argument. If appealed, the Microsoft
antitrust case could also be affected by this lag time, Benjamin says. The Supreme
Court would not be able to review the Microsoft case until 2002, during which time
the level of integration between operating systems and browsers is likely to change
enough that they are no longer separate products, as the presiding judge contends
in his findings, Benjamin says. The speed of the Internet gives appellate courts little
choice but to update their facts with additional briefs, exhibits, and hearings,
according to Benjamin.
http://www.nytimes.com/library/tech/00/02/cyber/cyberlaw/25law.html
"State Officials Look at New Rules for E-Commerce"
CNet (02/24/00); (Wolverton, Troy):
Several state governments have taken actions over the past few months to
regulate the Internet. These states defend their efforts as a preemptive strike
against federal regulations, but the federal government has largely been content to
refrain from interfering with e-commerce. Michigan is attempting to get its residents
to declare and pay taxes on e-commerce purchases, and Texas has imposed rules
requiring auto dealers to have a state license in order to sell cars in the state,
prompting some online auto dealers to stop selling to Texas residents. Online
cigarette sales have recently been targeted by some states, including California,
Alaska, Iowa, and Wisconsin. North Carolina is debating the issue of extending
auctioning rules to eBay, Yahoo!, and other e-commerce sites. Meanwhile, some 30
states have seen fit to ban online companies from shipping alcohol across state
lines; online alcohol distributors are suing five of those states, including New York.
Some analysts say states are regulating the Internet not to protect consumers but
to protect their own interests and produce more revenue. Retail sales on the
Internet will reach nearly $185 billion by 2004, according to Forrester Research. http://news.cnet.com/category/0-1007-200-1557226.html
Check out the new Taxes Page |
"Free Speech on the Net? Not Quite"
Business Week (02/28/00) No. 3670, P. 93; (France, Mike; Carney, Dan):
After some of Northwest Airline's employees staged an illegal sick-out last year to
get the airline to offer a better bargaining agreement, Northwest sued the flight
attendants' union and several others for staging an illegal strike, and got permission
from a judge to investigate who was behind the sick-out. The airline's private
investigators got a court order and forced flight attendant Kevin M. Griffin to turn
over his computer so his hard drive could be copied, and they subpoenaed
9NetAvenue, which hosts Griffin's Web site. Griffin's personal site hosted the
message board on which several anonymous employees posted messages urging
co-workers to participate in the sick-outs. The investigators got the Internet
addresses of the employees, which could allow Northwest to track them down.
Griffin says this has scared law-abiding employees away from discussing the
legitimate subjects on his message board. Northwest says it has investigated only
relevant messages and that it has no desire to infringe on free speech--but only as
long as the speakers stay on legal topics. Corporate America is trying to stop the
lies, day-trading mischief, and other negative activities on Web message boards by
suing over anonymous online statements--whether they are by employees or
others. Generally, a company spots an anonymous posting that displeases it and
files a lawsuit alleging defamation and other charges--naming "John Doe" because
the author is unknown. Then the company's attorneys ask a judge for permission to
subpoena the host of the message board--and the posters often are identified
before they know they are being sued. In fact, the board hosts frequently do not
fight the subpoenas much, and they sometimes turn over not only the posters'
names but other data, like credit card numbers. Yahoo! assistant general counsel
Jon Sobel says the company is legally bound to honor court subpoenas, and adds
that the portal's terms of service section warns users about the possible loss of
anonymity. The ACLU has filed amicus briefs and has represented defendants in
three cases, and is urging message-board hosts to let anonymous speakers know
when they are being sued.
"Governors Will Portal Their Wares at Winter Meeting"
Washington Technology (02/21/00) Vol. 14, No. 22, P. 1; LeSueur, Steve
Governors will confront the challenges of transforming the way that governments
deliver services to citizens this week at the National Governors' Association winter
meeting in Washington, DC. "We need to examine how we can reinvent government
to take advantage of information technologies that give us a government that's
open for business 24 hours, seven days a week," says John Thomasian, director of
the NGA's Center for Best Practices. Among the largest challenges facing
governments is integrating new e-government applications with their back office
systems and often thousands of existing online services to present a single unified
government portal to citizens. "Citizens don't need to know what department
actually processes the transaction," says IBM's Todd Ramsey. As information
technology becomes more widespread in government, it is important for officials to
keep an open mind about its possibilities. "Don't get so caught up with citizen
services that you miss the other pieces of these changes," says Janet Caldow of
IBM's Institute for Electronic Government in Washington.
http://www.wtonline.com/vol14_no22/cover/1080-1.html
InterNic who governs domain names and statement of the cooperative agreement.
An example of Cyber Squatting in St. Louis.
I have found a few examples of the Business Resource Pages on the web.
ONLINE GAMBLING PROVOKES INTERNET TEST CASE:
The future of the online gambling industry could be at stake in a
case pitting the U.S. against an Antigua-based online casino that
has been charged with violating a U.S. law prohibiting
telephone-placed bets across state or federal borders. Jury
selection for the case begins today. Countries all over the
world will be following the case because it holds ramifications
on the issue of national jurisdiction, says Internet lawyer Jim
Halpert of Piper Marbury Rudnick & Wolfe. Documents for the case
state that the U.S. is legally within its rights to reach beyond
its borders in criminal cases that harm U.S. citizens and involve
an "interstate wire communication facility." "Where a bet is
'placed' physically, conceptually, or otherwise simply does not
matter for purposes of prosecution," the documents state.
However, Internet legal analysts contend that the matter of
jurisdiction is not so cut-and-dried.
(FT.com, 13 Feb 2000)
Software Agents and the Future of E-Commerce
Now It Is EBay's Turn to Face Government Scrutiny
Company Webpage Evaluation Sheets are now available for the February 23/28 assignment. They are not forms. Print them off and fill them out by hand.
As we begin to discuss JavaScript, look at the JavaScript Help Page. In particular, you should review examples of basic program functioning.
e-commerce struggles to survive in St. Louis
AberdeenGroup Report: Analysis-Driven Action: The e-Business Success Factor
- Survey your users
- Medical Net Privacy? It's unhealthy.
Interesting Articles:
An interesting example of problems.
Web Building: Is Your Site Shoppable?
The ultimate goal of your e-commerce site is to convert browsers to buyers. To encourage users to click that Buy button, you need to make your site as “shoppable” as possible. Put some of CNET Builder.com’s techniques to work, and you’ll have a site that provides a substantial lead and competitive advantage over your competitors:
http://1.digital.cnet.com/cgi-bin1/flo?x=dBmAEgKYYwYuhouB
"Treading With E-caution"
Austin American-Statesman (01/23/00) P. J1; (Pletz, John):
All attention turned to the Internet at the National Retail Federation's annual convention last week in
New York City. The three largest categories in the convention directory were e-commerce vendors,
Internet services, and interactive shopping. Traditional retailers have begun to slowly position
themselves on the Web as they realize the potential of sales online. But they are taking great
caution. The consensus at this convention is that it is better to not be on the Internet at all than to
be on and do it poorly. But everyone understands that, while it is a dangerous endeavor to
undertake, the opportunity is too great to ignore. Many also believe that it is these traditional retail
stores that have the potential for the best success on the Web, as their storefronts allow for
convenient customer returns and exchanges, which is the major weakness in e-commerce.
Technology companies are dominating the convention floor, demonstrating various products
designed to help companies get on the Internet.
http://www.austin360.com/statesman/editions/sunday/business_1.html
SURFER BEWARE: ADVERTISER'S ON YOUR TRAIL:
Internet advertising server DoubleClick is tracking the online
activity of users, recording their names, purchases, and
addresses, reports USA Today. DoubleClick is combining the data
it accumulates on Web user activity with a direct marketing
database of 90 million households maintained by Abacus Direct,
which DoubleClick acquired last year. Privacy International's
David Banisar says the move threatens online anonymity, while
consumer advocates say they will complain to the FCC.
Junkbusters' Jason Catlett says, "For four years [DoubleClick]
has said [the services] don't identify you personally, and now
they're admitting they are going to identify you." DoubleClick
says the practice allows ads to target users better, improving
the online experience, and the company also points out that users
can opt to not have their use tracked. Banisar claims that opt
out language is usually buried in a site's privacy statement.
(USA Today, 26 Jan 2000)
Group assignments are now available.
Look at
Failed Blackmail Attempt Leads to Credit Card
The list of students in both sections is now available. The names are linked -- as best as I can -- to your current
web pages. As your web pages for class are completed, I will change the link on this page to your assignment page.
Early Examples of "internets"
Netscape's Internet Tour
Hobbes' Internet Timeline v5.0
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