53:623:670:M1: Special Topics:
Fall 2006
Dr. Shankar Sundaresan
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Contact Information |
Office: 260 BSB Phone: 856 225 6719 e-mail: sundares@camden.rutgers.edu |
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Class Meetings |
Wednesdays 6:00 pm to 8:40 pm PHH Mortgage, Mt. Laurel |
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Office hours |
at Campus: Mondays 3:00 pm to 4:00 pm ; Wednesdays 11:00 am to noon; other times by appointment at PHH: before class on Wednesdays |
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Course Web Page |
http://crab.rutgers.edu/~sundares/Econ_of_IS.Fall06 |
Course Overview:
Over the past few years, dramatic growth of Internet and web technologies has spawned the rapid unfolding of the information technology revolution, transforming the business environment, and often changing the industrial landscape and the nature of competition. Implementing business models that are enabled by technological advancements requires orchestrated fusion of business processes, IT-based applications, and organizational infrastructure. Every business and every manager who works in the information economy needs to understand the fundamental characteristics of the transformation brought about by information technology.
This course will help students gain exposure to contemporary information technologies and develop the conceptual platforms for learning about emerging technologies. Some interesting properties of information goods and implications for managing them will be presented. The course will offer analytical and economic frameworks to assess the potential of emerging technologies and techonology driven innovations. Concepts presented will help managers make better decisions about managing information assets to support business strategy.
The course will be of value to executives and managers from all business areas. You will find a coherent framework for conducting technological assessment in the material covered in the course to deal with issues such as picking winning technologies and understanding why some technogies and firms succeed and while others don’t. The course will benefit those involved in rolling-out IT products and services and managing IT assets.
Course Objectives:
This course covers the concepts and tools that today’s managers and practicioners need for understanding the technology infrastructure underlying modern enterprises, assess IT requirements and develop supporting IT solutions and strategies. Specifically the course aims to provide students with:
· a systematic way to continue to learn, assess, and forecast new developments in technology
Required Course Materials
Required Text:
Shapiro, Carl and Hal R. Varian (1998), Information Rules, Harvard Business School Press.
ISBN: 087584863X
Course Packet: contains required cases and articles. (to be made available)
Other web-based readings (articles, business clippings and web sites) will be assigned regulary.
Prerequisite:
Although there are no “formal” prerequisites for this course, please note that this course is designed as the elective course in the MBA program and will assume that all students are comfortable with MBA core course materials. These skills will be required in preparing the business case analyses.
Course Requirements
The requirements for the course follow.
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Class Participation |
20 % |
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Case Write-ups and Presentations (Team) |
20 % |
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Assignments |
10 % |
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Technology Assessment Report (Team) |
15 % |
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Exam |
35 % |
Class participation: Each one of you is expected to prepare for class discussions as indicated in the course schedule, to attend classes, and to contribute to class discussions. In evaluating class participation, we emphasize the quality of participation more than quantity. We try to assess how your contributions enhance both the content and process of a discussion:
Group assignments: Each group is required to prepare an analysis of a minimum of three cases and present at least one analysis to the class. Please submit a short report, with clear recommendations and rationale for your recommendations along with and a copy of your presentation slides.
Exam: One exam is planned during the exam week.
Technology Assessment Report: Each team will also choose an emerging technology area / business and apply the frameworks learnt to assess its potential. You may use this opportunity to customize the course in a technological area that may be of direct value to you.
ADMINISTRATIVE COMMENTS
· Preparation: Pleae come prepared for all classes. Not only your participation grade, but the quality of your learning is substantially enhanced when you come prepared.
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Handouts: Handouts will be regularly
distributed in class. I expect to post most of the material on the course web
site.
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Website: Please visit the course web site
regularly. The course schedule will be revised dynamically. All the current
readings will be updated in the course web site regularly.
· Missed Exams : If you have to miss a test for emergencies / university approved reasons, contact me for making alternative arrangements.
· Questions: If at any point during the course, you have questions regarding course-related matters, do not hesitate to contact me. If the scheduled office hours are inconvenient for you, please contact me to arrange an alternative appointment.
· Feedback: I welcome your feedback on the content and style of the class. You may choose to provide your feedback in person, via e-mail, or anonymously at any time. Your suggestions will make the class more useful for everybody.
· Name Cards: Use name cards regularly in class throughout the term. Being absent from class without prior intimation will affect your class participation points.
· Honor Code: It is expected that you will complete all assignments and analyses of cases without examining analyses done by out-of-group members in either the present or previous classes. Any violation of these guidelines will constitute a violation of the honor code and will invite the appropriate consequences.
· Announcements: Announcements will be periodically made in class about changes in schedules, assignments, exam, readings, project, policies and other class activities. Please keep abreast of the announcements and changes.
· ADA Statement: The School of Business welcomes persons with disabilities to all its classes, programs, and events. If you need accommodations or have questions about access to buildings in which School of Business activities are held, please contact us in advance of your visit.
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Other
Policies:
Please see course web site for more details.
53:623:670:M1: Special Topics:
Economics of Information Technology and Management
Fall 2006
Course Outline
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Week 1 [Sep 6] |
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Topic : Understanding emerging IT infrastructure |
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Introduction Technology Framework Media and Network Convergence
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Week 2 [Sep 13] |
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Topic : Characteristics of IT Goods and Services and Managerial Implications |
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Information Goods and Services Read Chapter 1, Information Rules
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Weeks 3 [Sep 20] |
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Topic : Information Management Basics & Technological Drivers |
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Information Management Technological drivers
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Weeks 4, 5, 6, 7 [Sep 27; Oct 4, 11, 18] |
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Topic : Pricing Strategies for Information Goods |
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Sep 27: Pricing of IT services and goods Competitive Strategies Incumbent Strategies Value-based Pricing Strategies Personalized pricing Group pricing Read Chapter 2, Information Rules Assignment 1
Oct 4: Pricing hardware services Hardware service --- how to price? Concept of Queues Delays and delay cost Public Goods Internalizing externality via pricing Capacity determination Cost versus Profit center Approaches Read: Handout Assignment 2
Oct 11: Personalization / Customization Personalization / Customization Adding value through customization Customization technologies Web server data Click stream analysis Read Chapter 2, Information Rules Case: Everdream
Oct 18: Introducing new technology products Penetration pricing Uncertainty in valuation Screening / signalling Contingency pricing Guidelines Read: Handout
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Weeks 8, 9, 10 [Oct 25; Nov 1, 8] |
Topic: Versioning Information |
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Oct 25: Versioning Strategies Pricing through versions Benefits of versions How do you version? When does versioning work? Examples Case : E-Trade Read Chapter 3, Information Rules Assignment 3
Nov 1: Bundling Information Goods Basics of bundling Market expansion Information goods suitability for bundling Guidelines for bundling Read Chapter 3, Information Rules Assignment 4
Nov 8: Rights Management Production and Distribution costs Technological solutions Economic solutions Complementary products Conditions of sale Case: Yahoo Read Chapter 4, Information Rules
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Weeks 11, 12, 13 [Nov 15, 22, 29] |
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Topic : Network Externality Effects |
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Nov 15: Lock-in Recognizing Lock-in Switching costs Managing Lock-in Exploiting Lock-in Read Chapter 5,6 Information Rules
Nov 22: No Class as per Univ calender Reschedule
Nov 29: Network externality Positive Feedback Demand side economies of scale Strategies Read Chapter 7, Information Rules Case: Amazon Vs. Barnes&Noble
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Week 14 [Dec 6] |
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Topic : Standards and Compatibility |
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Dec 6: Cooperation and compatibility Open and proprietary systems Standards Read Chapter 8, 9 Information Rules |
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Week 15 [Dec 13] |
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Topic : Technology Analysis Presentations |
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Dec 13: Presentations |
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Week 16: [Dec 20] |
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Final Exam |