ISM 211
Winter 2009
eBusiness: Technology and Strategy
Website: http://www.soe.ucsc.edu/classes/ism211/Winter09
Announcements:
It’s not too late to join the class! You can make up the first
lecture by watching it online here.
Post to the course discussion forum each
week for full credit. This is based on the SOE online forum system---contact
Geoff if you need help setting up a login name and password.
The 2/12 class has been moved to Tuesday, 2/10, E2 room 586, 6-9:30
PM. The following week (2/19) we will
resume the usual Thursday night schedule.
Feb. 26 update: final projects
due on March 12. Project 1
results are posted below.
Lectures:
Thursdays 6-9:30, E2 194, UCSC Campus (first class:
Thursday Jan 8th)
Telecast to UCSC Silicon
Valley Center
(Located at NASA Ames Research Park, Moffett Field,
Mountain View, CA)
Course Number: 45188 (Campus) 45189 (SVC)
Required Course of Knowledge
Services & Enterprise Management (KSEM) Certificate
Enrollment is open to non-full time students from industry
via the UCSC Extension [link]
Course Description:
TIM 211 is a first graduate course in technology and business strategy for information technology products and services. Firms trying to succeed in the information technology products and services sectors need to understand the structure of modern information technology, the relation of that structure to the structure of the industry that creates it, and the economic forces that drive the players in the industry.
Instructor:
John Musacchio
(johnm@soe.ucsc.edu)
Office: E2 Room 557
Office hours: TBA
Email: johnm@soe.ucsc.edu
Teaching Assistant: Geoff Ryder
Email: gryder@gmail.com
Reading
Materials Requiring Purchase:
C. Shapiro, H. Varian, Information
Rules: A Strategic Guide to the Network Economy, Harvard Business School
Press; 1st edition (November 1998)
Buy from: [Amazon]
[Barnes
and Noble][Harvard
Business School Press]
Online Reader of
Cases and Articles from Harvard Business School Press
Reader Includes
T. Eisenmann, K. Hermann, “Google Inc,” Harvard
Business School Case Study, 2006.
F. W. McFarlan, V. Belokhvostova, “RosettaNet and ebXML: Betting on the Right
eBusiness Standard,” Harvard Business School Case Study, 2006.
M. J. Piskorski, “LinkedIn (A),” Harvard
Business School Case Study, 2007.
M. Porter, “Strategy and the Internet,” Harvard Business Review, March 2001.
M. Porter, “The Five Competitive Forces That
Shape Strategy,” Harvard Business Review,
March 2008.
D. Yoffe, M. Kwak, “With Friends Like These: The
Art of Managing Complementors,” Harvard
Business Review, September 2006.
Other Reading:
B. Edelman, M. Ostrovsky, M. Schwarz, ”Internet
Advertising and the Generalized Second Price Auction: Selling Billions of
Dollars Worth of Keywords,” Working paper, 2005.
J. Musacchio, J. Walrand, G. Schwartz, “A Two-Sided
Market Analysis of Provider Investment Incentives With an Application to the
Net-Neutrality Issue.” To appear in Review
of Network Economics (2008)
D. Messerschmitt, “Rethinking components: from
hardware and software to systems.” Proceedings
of the IEEE, vol.95, no.7, July 2007, pp. 1473-96.
Suggested Reference Books [Purchase NOT
Required]:
D. Fudenberg, J. Tirole, Game Theory, MIT Press, 1991.
D.
Messerschmitt, C. Szyperski, Software Ecosystem:
Understanding an Indispensable Technology and Industry, The MIT Press; New
Ed edition (September 1, 2005)
H.
Varian, J. Farrell, C. Shapiro, The
Economics of Information Technology: An Introduction,
Grading:
Homework
assignments 15%
Participation 10%
Discussion Forum
10% à ISM 211 forum
Project 1 25%
Final Project 40%
Tentative Lecture Plan
(We will likely make
adjustments to the topics as we assess the needs and interests of the students.
More assignments will be added to the lecture plan as the quarter progresses!)
|
Class |
Date |
Lecture Topic |
Reading (Reading to be done before each class) |
Assignments |
|
1 |
1/8 |
· Course Introduction · Introduction to Strategy |
· Varian and Shapiro (VS), Chapter 1, The Information
Economy · HBR Five Competitive Forces |
Final project assigned |
|
2 |
1/15 |
· Economics of Information - Pricing and versioning - Bundling |
· HBR Five Competitive Forces (cont) · VS Chapter 2, Pricing · VS Chapter 3, Versioning · HBR, Strategy and the Internet |
Problem Set 1 out: (pricing and versioning) |
|
3 |
1/22 |
· Industry and Technology Structure -
technology
layering, component suppliers and system integrators · Web Programming Tutorial |
· HBR, Strategy and the Internet (cont) · Messerschmitt: Rethinking Components http://repositories.cdlib.org/ · HBS ebXML case study · Web Services Reference: ebxml-ws.pdf |
Project 1 out: (web programming) |
|
4 |
1/29 |
· Network Effects; · Game Theory and Auctions Introduction |
· VS Chapter 7, Networks and Positive Feedback · HBS Winner-Take-All in Networked Markets · Game Theory Tutorial Reading—see the tutorial
included in Proj1_Handout_2009.zip · Amazon Web Services |
Problem Set 1 due |
|
5 |
2/5 |
· Game Theory Applications: Modeling of two-sided
markets and Net Neutrality; Advertising Auctions |
· Musacchio, Schwartz, Walrand, "A Two Sided
Market Analysis...Net-Neutrality" · Other readings TBD |
|
|
6 |
2/10 |
· Game Theory Applications · ***NOTE: Lecture
changed to Tuesday night, E2 room 586, this week only*** |
·
Edelman, Ostrovsky, Schwartz, "Internet
Advertising..." · Feldman et al.:
P2P Incentives |
|
|
7 |
2/19 |
· Discussion of Search Engine Business Model · Lock-In |
· HBS Google · VS Chapter 5, Recognizing Lock-In · VS Chapter 6, Managing Lock-In |
Project 1 due |
|
8 |
2/26 |
· Managing Complementors · Standards |
· HBR With Friends Like These · VS Chapter 8, Cooperation and Compatibility · VS Chapter 9, Waging a Standards War |
|
|
9 |
3/5 |
· eCommerce; social networks · Open Social Initiative · Rights Management |
· HBS Linked In · VS Chapter 4, Rights Management · VS Chapter 10, Information Policy |
|
|
10 |
3/12 |
· Final Project Presentations · Wrap-Up |
|
Final projects due |