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Modul 53010: Master - Hauptseminar 'ICT Enabled Services'
(WS '11/'12)

Prof. Virpi K. Tuunainen, PhD
Aalto University, School of Economics
2 SWS, 7 LP

Held in English!

Overview
Innovations in services are largely based upon the development of new markets that exploit the power of information and communication technologies (ICT) to coordinate service production and delivery. What are particulary interesting are the two- or many-sided networks, where ICT supported platforms provide services to two or more distinct groups of users. During the course, we will cover the definitions and core contepts related to ICT enabled services and management challenges related to such services. Examples will cover, e.g., eBay, Apple AppStore, PayPal, ipTV, and game consoles.

Methodology

Combination of lecture and discussion. Groups will be formed during the first day of teaching.

Dates and Location

November 4, 2011, 12:30-18:00 o'clock, location: HS XXIII, WiSo-Building (University of Cologne)
November 5, 2010, 10:00-13:00 o'clock, location: HS XVIII, WiSo-Building (University of Cologne)
Participation in all sessions is required for receiving 7 Credit Points!

Assignments

Pre-Assignment
The pre-assignment consists of two parts.
Deadline: 11:00 o'clock, October 4, 2011. Hand in

one electronic version on CD/DVD (Word document, i.e., .doc or .docx, no .pdf, no eMail) and
two copies / printouts

at the department's letter box inside the building Pohligstr. 1, 50969 Cologne.

Part I: Platform mediated services (15%)
Read the two articles

Tuunainen, V.K., Tuunanen, T. & Piispanen, J. (2011) Mobile Service Platforms - Comparing Nokia OVI and Apple App Store with the IISIⁿ model, ICMB 2011, June 20-22, 2011, Como, Italy.
Eisenmann, T., Parker, G. & Van Alstyne, M.W. (2006) Strategies for Two-Sided Markets, Harvard Business Review, pp. 92-101.
Due to copyright issues, the article by Eisenmann et al. may not be printed - a printable version can be found online!

Think about examples of platform-mediated services that you personally use. Consider whether they are on one-sided or two-sided markets. Select two of the services that are based on two-sided markets you have identified, and analyze them based on the three challenges presented in the Eisenmann et al. (2006) article. Max 1 page.

Part II: Case Google Inc. (30%)
Read the Google Inc. case and answer the following case questions. Max. 1 page per question.
Due to copyright issues, the case will be sent to students' sMail accounts by Prof. Tuunainen till the end of this week!
Case questions:

What were the key factors behind Google's early success?
Do you expect the search business to become more concentrated (i.e., dominated by fewer firms)? Is search a winner-take-all business?
In renewing its deal with AOL, could Google afford to pay AOL more than 100% of the revenue generated from AOL searches? How did Microsoft's maximum affordable bid for AOL's search traffic compare to Google's?
In addition to enhancing its core search businesses, should Google also branch out into new arenas? Which of the following would you recommend: 1) building a full-fledged portal like Yahoo!'s; 2) targeting Microsoft's desktop software hegemony; and/or 3) becoming an e-commer inmediary like eBay?
Do you view Google's distinctive governance structure, corporate culture, and organizational processes as strengths or as potentials limitations?

Final Assignment
Choose a service that

wasn't discussed in detail in classe
is enabled or supported by ICT
is Platform-mediated
is In two (or n)-sided markets

Return a report of 5-7 pages

1. Descibe the service

2. Analyze the service with the help of the IISIn model

The platform
Different market sides (1 and 2)
Network effects
is In two (or n)-sided markets

3. Discuss the opportunities and challenges of the service

WTA propensity
Pricing strategy
Threat of envelopment

Please make sure that you add the following (signed) declaration ("Ehrenwörtliche Erklärung") to your assignment: "Hiermit versichere ich, dass ich die vorliegende Arbeit selbstständig und ohne die Benutzung anderer als der angegebenen Hilfsmittel angefertigt habe. Alle Stellen, die wörtlich oder sinngemäß aus veröffentlichten und nicht veröffentlichten Schriften entnommen wurden, sind als solche kenntlich gemacht." The declaration must be in German language.

Deadline: 11:00 o'clock, December 15, 2011. Hand in

one electronic version on CD/DVD (Word document, i.e., .doc or .docx, no .pdf, no eMail) and
two copies / printouts

at the department's letter box inside the building Pohligstr. 1, 50969 Cologne.

Deadline for Assignments

Pre-Assignment - October 4, 2011.
Final Assignment - Details t.b.a., due December 15, 2011.

Grading

Pre-Assignment: 45 % (individual)
Class participation: 25 % (individual)
Final Assignment: 30 % (group)

Registration
Zentralvergabe