Transcript (9) Privacy 隐私 - Andreas Weigend, Social Data Revolution

The Networked Economy: Information Management,
Strategy, and Innovation
网络经济：信息管理，战略和创新
(9)
The New Business
of Consumer Data:
Who pays whom?
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Andreas S. Weigend, Ph.D. 韦思岸教授
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Agenda for today

The (Old) Data Revolution
Example: Amazon.com
Mainly implicit data, some explicit data

The New Data Revolution
Example: Facebook
Mainly explicit data
Customers start interacting
New business models

The New Consumer Revolution
How their attitudes to their info changes
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Computers, Business and Communication

1970’s


“Experts” learn a language the
computer understands
1bn people poking at stuff
100M people producing stuff
Digitizing back office
10M people

1980’s

Front office interacts with back office
100M people
2000’s


Peer-production and collaboration

Customers interact with customers
Next
Discovery in addition to search

Serendipity: Discover what not searched
People in addition to pages

1990’s

Customers interact with firm
Search: 1bn people poking at stuff

Social commerce
Mobile in addition to PC (and paper)

Continuous partial attention
Model current situation plus history

Sensing
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Who will select the best picture?
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Let Amazon.com access your camera and microphone?

November 2007
Adobe Flash installed on 820 million Internet-connected computers and mobile devices
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Integrated Media Measurement Inc
•
IMMI

Listening into your
room
every 30 seconds,
for 10 seconds.
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
Level
层次

Data collected 2007
2007年搜集的数据
Customer
消费者
100 MB
Orders
订单
10 GB
Session aggregates
访问总计
Clicks
点击
Amount of data
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Data collection and analysis (Amazon.com)
数据收集和分析(Amazon.com)
1 TB
100 TB
数据量
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Data in the Digital Networked Economy
•
From Stanford Stat252/MS&E238 (Data Mining and E-Business):

Clicks
Selection

Intention
Search

Attention
Engagement

Interaction
Relationship

Situation
Discovery

Location
Mobile phones, GPS
•
http://aweigend.wikispaces.com/Data+Mining+and+E-business+Stanford+Spring2007
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Navigation with two-way internet connectivity (dash.net)
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A data revolution, not a software revolution

Mapping companies did not realize that users can add value…
NAVTEQ spent USD 300M to reach breakeven, was acquired by Nokia for USD 8.6B

…vs Amazon.com realizing early on that users can add value
E.g., by reviewing books

Google enables external developers to build services using company’s data
Application Programming Interface

When will airlines, banks etc follow?

Group discussion:
Develop scenarios for one of your group member’s company’s data strategy?
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“Pay as you drive” insurance (Norwich Union)
“车开起来再
付钱”保险
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Buy and trade business cards (Jigsaw)
7M business cards (2007.12)
200k members
Community corrects
Jigsaw collects
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Give data to get data about applicants (JobScore)

Use information about candidates from interviews at other companies
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The basis of the Digital Networked Economy is Data
Community
Interaction
Web 2.0
Participation
Experimentation
Web 1.0
Data
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Fast innovation by experimentation (the scientific method)
Community
Interaction
Web 2.0
Participation
Experimentation
Web 1.0
Data
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加入购物车
去收银台
等一下！再加16.01
美元就能……
加入购物车
戴维斯的专辑
Also want to make
recommendations!
添加推荐!
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购买戴维斯专辑的消费者
也买了另两张专辑
Also want to make
recommendations!
添加推荐!

Complements (buy in
addition to)
互补（额外购买）
Customers who bought X also
bought Y
买了X的消费者会再买Y

Substitutes (buy instead of)
替代（选择购买）
Customers who shopped for X also
shopped for Y (based on clicks)
Z买了X的消费者也会再
想买戴维斯专辑的消费者
同时浏览了其它同类专辑
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Result: Right vs Left
对比结果：左还是右

Metrics
衡量标准
Conversion rate: Percentage of visits placing an order
转化率：下订单的浏览者所占的比例
Order size: Number of additional (from the second page) items put into cart
订单大小：（从第二页起）新购商品数量

Result
结果
“Your Shopping Cart” on right is about 1% better than on left
“Your Shopping Cart”置于右侧比置于左侧的效果提高1%
All customers
所有消费者
Existing customers
现有消费者
Cart-adds from 2nd page:
+0.6%
从第二页起新购商品数量：
Cart-adds from 2nd page:
+0.8%
从第二页起新购商品数量：
Wishlist-adds:
+1.4%
选择礼物清单：
DVD Cart-adds:
+0.8%
新购DVD：
DVD (USD): +1.1%
DVD (USD): +1.0%33
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The five levels
Community
Interaction
Web 2.0
Participation
Experimentation
Web 1.0
Data
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Some attributes of Web2.0

User focus (Me-business, not E-Business)
User is at the center of Web2.0
(not the company)
VRM (Vendor Relationship Management)
not CRM (Customer Relationship Management)

System engineered for feedback
System engineered to improve over time by leveraging user data
(not deteriorating over time)

Network effects
Demand-side economies of scale
(not only supply-side economies of scale)

Transparency
Google Maps: Create API for developers to use the data
(not increase security)
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Participation

Incentives
Pay people (e.g., Yahoo directory index)
Get volunteers (e.g., Wikipedia)
Create self-interest (e.g., BitTorrent)

Participation
Youtube: 0.19% visits to video upload
Flickr: 0.2% of visits are uploads
Wikipedia: 3.89% of visits are edits to entry

Why do people participate?
Spread their ideas
Need for belonging
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Data: From “Me” to “We”
Node:
The individual
•

Clicks
Links:
Relationships between individuals
MySpace, Facebook, XiaoNei (校内网)
Logs

Intention
Search

Why is intra-site so hard?
Google (Advertising)

Attention
Tags,…
Attensa (News)

Location
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The five levels
Community
Interaction
Web 2.0
Participation
Experimentation
Web 1.0
Data
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Where do people go for information?

20 years ago: Produced news
Publicized opinion
(“Veröffentlichte Meinung”)

10 years ago: Search
Search: Already know what you are looking for
Discovery: Find something you didn’t know you were looking for (Serendipity)
Blogs, Wikipedia

Now: Social network
Discover via people you are connected to
“Generation C”
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Digital Networked Economy: Generation C
Connectivity
•
Convergence
•
Cooperation
•
Community
•
Creation
•
Co-creation
•
Conversation
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
downcasting
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Conversational Marketing
Conversation
Between whom?
Company
Individuals
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Thank you!
Andreas Weigend
[email protected]
+1 (650) 906-5906
www.weigend.com
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Andreas S. Weigend, Ph.D. 韦思岸教授
Appendix:
Google’s e-commerce
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Google’s role in e-commerce
Google helps users more easily and efficiently find
merchants and purchase products.
Search
Google Users
Find
Buy
Merchant Customers
• 51% of internet users are
influenced by search engines for
their purchases.*
• Google reaches more Internet
users worldwide than any other
web property or ad network.
• Google receives more than 475
million unique visitors/month.**
* Internet Retailer news, March 6, 2007
** Custom Analysis by ComScore/Google, Sept. 2006
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Opportunities in e-commerce
Online retail purchases accounted for
2.8% of total retail sales in 2006.
What is holding back eCommerce?
2006 Consumer Purchases
• Long checkout processes
Share by Channel
2.8%
• 63% of shopping carts are abandoned
after beginning checkout**
• Too many accounts
• Average number of passwords per internet
user: 17** (Source: Verisign, 2004)
97.2%
Online sales
Offline sales
• Fear of sharing personal information
• Consumers are afraid of their personal
information being compromised
Total eCommerce sales: $108.7B
Total Retail sales: $3.9 Trillion*
•Quarterly Retail eCommerce Sales, 2006, US Census Bureau
•Note: These numbers do not include travel
* Verisign, 2004
** Online Customer Experience Survey, Allurent, February 2006
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Google Checkout

Google Checkout is an online checkout process that provides a fast, secure way
to buy and sell online.
For Buyers…
Convenience
• One place to track purchases
Speed
• Single login across the web with
sreamlined checkout
Confidence
• Credit card number concealed
For Sellers…
More sales
• Google Checkout badge attracts
more customers
• Streamlined checkout process
increases conversions
Less cost
• Free credit card processing on
all Checkout sales until 2008
• Beginning 2008, earn free
transaction processing with
AdWords
Fraud Protection
• Payment Guarantee covers 98% of all
Checkout orders
• When resolving disputes, we assume
our merchants are honest and
trustworthy
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Search…Find…Buy…

Shoppers use Google and Product Search to search for items to buy.
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Search…Find…Buy…

Product Search and Checkout help shoppers find exactly what they’re looking
for and where to buy it from.
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Search…Find…Buy…

To buy, shoppers need only click Google Checkout and enter their
username/password.
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Order History

Google Checkout users can easily manage all of their purchases in a central
location.
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Success With Google Checkout

Checkout has acquired millions of buyers and thousands of sellers, including 25%
of the top 500 merchants.
“The new Google Checkout badge … has given
us a 23% lift in clickthrough rate. And Google
Checkout does a great job of helping convert
that additional traffic into more sales;
customers that use Google Checkout convert
24% more frequently than those that go
through our standard checkout process.
– Fred Lerner, Jockey
“Since starting with Google Checkout,
business has grown 20 percent per month, the
company is saving 50 percent on transaction
processing costs, and repeat business is on
the rise too: more than 60 percent of new
customers who use Google Checkout purchase
again within the same month.”
– Floyd Wallace, Coffee Bean Direct
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