Design and Analysis of Online Advertising Expenditure Model based on Coupon Download

전정호, 이경전, 쿠폰 다운로드를 기준으로 하는 온라인 광고비 모델의 설계 및 분석, 지능정보연구, 16(4), 2010. (PDF)


In offline environment, unlike traditional advertising model through TV, newspaper, and radio, online advertising model draws instantaneous responses from potential consumers and it is convenient to assess. This kind of characteristics of Internet advertising model has driven the growth of advertising model among various Internet business models. There are, conventionally classified, CPM (Cost Per Mile), CPC (Cost Per Click), and CPS (Cost Per Sales) models as Internet advertising expenditure model. These can be examined in manners regarding risks that stakeholders should stand and degree of responsibility. CPM model that is based on number of advertisement exposure is mechanically exposed to users but not actually recognized by users resulting in risk of wasted expenditure by advertisers without any advertising effect. While on aspect of media, CPS model that is based on conversion action is the most risky model because of the conversion action such as product purchase is determined by capability of advertisers not that of media. In this regard, while there are issue of CPM and CPS models disadvantageously affecting only one side of Internet advertising business model value network, CPC model has been evaluated as reasonable both to advertisers and media, and occupied the largest segment of Internet advertising market. However, CPC model also can cause fraudulent behavior such as click fraud because of the competition or dishonest amount of advertising expenditure. On the user aspect, unintentionally accessed advertisements can lead to more inappropriate expenditure from advertisers. In this paper, we suggest “CPCD”(Cost Per Coupon Download) model. This goes beyond simple clicking of advertisements and advertising expenditure is exerted when users download a coupon from advertisers, which is a concept in between CPC and CPS models. To achieve the purpose, we describe the scenario of advertiser perspective, processes, participants and their benefits of CPCD model. Especially, we suggest the new value in online coupon; “possibility of storage” and “complement for delivery to the target group”. We also analyze the working condition for advertiser by a comparison of CPC and CPCD models through advertising expenditure simulation. The result of simulation implies that the CPCD model suits more properly to advertisers with medium-low price products rather than that of high priced goods. This denotes that since most of advertisers in CPC model are dealing with medium-low priced products, the result is very interesting. At last, we contemplate applicability of CPCD model in ubiquitous environment.

Tag-based Evaluation Model for Economic Feasibility Analysis of Mobile RFID System in Ubiquitous Space

이경전, 최형광, 전정호, 유비쿼터스 공간 구축을 위한 모바일 RFID 시스템의 경제성 평가에 대한 연구: 태그 기반 평가 모델을 중심으로, IT서비스학회지, 10(3), 2011. (PDF) in Korean


It is important issue how to evaluate the economic feasibility of computing factors in the real world when we build ubiquitous spaces. In this paper, we propose a simple model that can evaluate the economic feasibility of mobile RFID-based ubiquitous computing system which enables seamless communication between offline and online via embedded computing factors in the real world. To achieve this, we explore the meaning of mobile RFID system, the difference between our research and extant researches concerning the evaluation of economic feasibility in RFID system, and propose the so-called ‘Tag-based Evaluation Model’ (TEM) which is an evaluation model to access the economic feasibility of mobile RFID systems. We also analyze the TEM via simulation cases based on proposed model and discuss the future of TEM.

Exploratory Case Study for Key Successful Factors of Product Service System

박아름, 진동수, 이경전, Product-Service System(PSS) 성공과 실패요인에 관한 탐색적 사례 연구, 지능정보연구, 17(4), 2011. (PDF) in Korean

Product Service System(PSS), which is an integrated combination of product and service, provides new value to customer and makes companies sustainable as well. The objective of this paper draws Critical Successful Factors(CSF) of PSS through multiple case study. First, we review various concepts and types in PSS and Platform business literature currently available on this topic. Second, after investigating various cases with the characteristics of PSS and platform business, we select four cases of ‘iPod of Apple’, ‘Kindle of Amazon’, ‘Zune of Microsoft’, and ‘e-book reader of Sony’. Then, the four cases are categorized as successful and failed cases according to criteria of case selection and PSS classification. We consider two methodologies for the case selection, i.e., ‘Strategies for the Selection of Samples and Cases’ proposed by Bent(2006) and the seven case selection procedures proposed by Jason and John(2008). For case selection, ‘Stratified sample and Paradigmatic cases’ is adopted as one of several options for sampling. Then, we use the seven case selection procedures such as ‘typical’, ‘diverse’, ‘extreme’, ‘deviant’, ‘influential’, ‘most-similar’, and ‘mostdifferent’ and among them only three procedures of ‘diverse’, ‘most?similar’, and ‘most-different’ are applied for the case selection. For PSS classification, the eight PSS types, suggested by Tukker(2004), of ‘product related’, ‘advice and consulancy’, ‘product lease’, ‘product renting/sharing’, ‘product pooling’, ‘activity management’, ‘pay per service unit’, ‘functional result’ are utilized. We categorize the four selected cases as a product oriented group because the cases not only sell a product, but also offer service needed during the use phase of the product. Then, we analyze the four cases by using cross-case pattern that Eisenhardt(1991) suggested. Eisenhardt(1991) argued that three processes are required for avoiding reaching premature or even false conclusion. The fist step includes selecting categories of dimensions and finding within-group similarities coupled with intergroup difference. In the second process, pairs of cases are selected and listed. The second step forces researchers to find the subtle similarities and differences between cases. The third process is to divide the data by data source. The result of cross-case pattern indicates that the similarities of iPod and Kindle as successful cases are convenient user interface, successful plarform strategy, and rich contents. The differences between the successful cases are that, wheares iPod has been recognized as the culture code, Kindle has implemented a low price as its main strategy. Meanwhile, the similarities of Zune and PRS series as failed cases are lack of sufficient applications and contents. The differences between the failed cases are that, wheares Zune adopted an undifferentiated strategy, PRS series conducted high-price strategy. From the analysis of the cases, we generate three hypotheses. The first hypothesis assumes that a successful PSS system requires convenient user interface. The second hypothesis assumes that a successful PSS system requires a reciprocal(win/win) business model. The third hypothesis assumes that a successful PSS system requires sufficient quantities of applications and contents. To verify the hypotheses, we uses the cross-matching (or pattern matching) methodology. The methodology matches three key words (user interface, reciprocal business model, contents) of the hypotheses to the previous papers related to PSS, digital contents, and Information System (IS). Finally, this paper suggests the three implications from analyzed results. A successful PSS system needs to provide differentiated value for customers such as convenient user interface, e.g., the simple design of iTunes (iPod) and the provision of connection to Kindle Store without any charge. A successful PSS system also requires a mutually benefitable business model as Apple and Amazon implement .

Design of Serendipity Service Based on Near Field Communication Technology

이경전, 홍성우, NFC 기반 세렌디피티 시스템 설계, 지능정보연구, 17(4), 2011.(PDF) in Korean


The world of ubiquitous computing is one in which we will be surrounded by an ever-richer set of networked devices and services. Especially, mobile phone now becomes one of the key issues in ubiquitous computing environments. Mobile phones have been infecting our normal lives more thoroughly, and are the fastest technology in human history that has been adapted to people. In Korea, the number of mobile phones registered to the telecom company, is more than the population of the country. Last year, the numbers of mobile phone sold are many times more than the number of personal computer sold. The new advanced technology of mobile phone is now becoming the most concern on every field of technologies. The mix of wireless communication technology (wifi) and mobile phone (smart phone) has made a new world of ubiquitous computing and people can always access to the network anywhere, in high speed, and easily. In such a world, people cannot expect to have available to us specific applications that allow them to accomplish every conceivable combination of information that they might wish. They are willing to have information they want at easy way, and fast way, compared to the world we had before, where we had to have a desktop, cable connection, limited application, and limited speed to achieve what they want. Instead, now people can believe that many of their interactions will be through highly generic tools that allow end-user discovery, configuration, interconnection, and control of the devices around them. Serendipity is an application of the architecture that will help people to solve a concern of achieving their information. The word ‘serendipity’, introduced to scientific fields in eighteenth century, is the meaning of making new discoveries by accidents and sagacity. By combining to the field of ubiquitous computing and smart phone, it will change the way of achieving the information. Serendipity may enable professional practitioners to function more effectively in the unpredictable, dynamic environment that informs the reality of information seeking. This paper designs the Serendipity Service based on NFC (Near Field Communication) technology. When users of NFC smart phone get information and services by touching the NFC tags, serendipity service will be core services which will give an unexpected but valuable finding. This paper proposes the architecture, scenario and the interface of serendipity service using tag touch data, serendipity cases, serendipity rule base and user profile.

Design and Analysis of Ubiquitous Customer Relationship Management System Based on Near Field Communication

이경전, 전정호, 고도 정보 연계 사회의 구축을 위한 SPB 패러다임, 한국IT서비스학회지, 11(2): 131-146, 2012 (PDF) in Korean


This research aims to design and analyze a ubiquitous customer relationship management system based on near field communication which can be applied to stores in off-line environment. The existing customer relationship management system has been used mainly for stores in off-line environment to issue a royalty card, to stamp a seal on the purchase goods, and to manage the history of customers’ visits and purchases. But, the existing system has two weaknesses; it makes difficult for a store manger not only to acquire a wealth of customer data but also to systematically manage the acquired data. In particular, the effectiveness and efficiency of the royalty card are questioned when a customer makes purchases in the store in that the customer frequently does not carry it or loses it. So, this research suggests a ubiquitous customer relationship management system where a tag for near field communications is attached to a store in off-line environment; a store manager can collect and manage easily customer’s dada and customers can seamlessly acquire store’s information. To do this, this research conducts the followings. First, we review the previous researches of customer relationship management to examine the concept of ubiquitous customer relationship management. Second, from the examination, we draw the factors to be considered in ubiquitous customer relationship management system based on near field communication. Third, we propose a scenario where the suggested system is used. Fourth, we analyze the participants’ values and the process that will be used for the suggested system. Finally, we discuss the possibility of the application of this system to real business environment from various viewpoints.

SPB(Seamlessness-Privacy-Benefit) Paradigm for Construction of Highly-Connected Information Society

이경전, 전정호, 고도 정보 연계 사회의 구축을 위한 SPB 패러다임, 한국IT서비스학회지, 11(2): 131-146, 2012 (PDF) in Korean


The purpose of this research is two-fold : (1) we propose the paradigm to construct a connected information society according to a judgment where a coming information society will evolve into highly-connected information society having “seamlessness” as a keyword, and (2) we draw guidelines to construct infrastructures and establish systems and business models of highly-connected information society based on suggested paradigm. To achieve this, this research conducts the followings. First, we suggest reasons why a coming information society can be appropriate to be considered as highly-connected information society by examining two perspectives on the coming information society. Second, we explain the definition and characteristics of highly-connected information society and propose the SPB paradigm. Third, we analyze the utility of SPB paradigm by evaluating practices. Finally, we suggest four strategies to construct highly-connected information society based on advanced research findings and future research directions.

Generation of Hypotheses on the Evolution of Agent-Based Business Using Inductive Learning

Jin, D., Suh, Y., Lee, K., “Generation of Hypotheses on the Evolution of Agent-Based Business Using Inductive Learning,” Electronic Markets, vol. 13, no. 1, 13-20, 2003 (PDF)


Agent-based business in e-commerce can be defined as a business enabled and operated by software-agent technologies. The discrepancies between expectations on and reality of the business have raised research interests in its critical success factors. We suggest a framework for analysing the evolution of the agent-based business and analyse 16 representative agent-based business cases to derive explanatory variables seeming to have effect on the longevity of the agent-based business. The results of the case studies are used as an input to an inductive learning method to generate five theoretical hypotheses on its evolution. Finally, we provide strategic implications of the generated hypotheses about the evolution of the agent-based business.

Design of a RFID-Based Ubiquitous Comparison Shopping System

Lee, K. Seo, Y., Design of a RFID-Based Ubiquitous Comparison Shopping System, Lecture Notes in Artificial Intelligence 4251:1251–1267, 2006 (PDF)


With the spread of the so-called always-online environment that allows consumers to be online anytime, anyplace, the next step will be the integration of online and offline markets. Competition will be consequently further intensified and there is a probability that in the process the role of offline retailers will shift from that of a traditional retailer to a displayer role. When this occurs, appropriate technological devices and business models should be explored so that both displayers and retailers can benefit. To this end, this paper proposes an RFID (Radio Frequency Identification) technology-based pervasive comparison shopping business model. RFID will allow consumers to be seamlessly connected to the network, and the advent of a new shopping network will enable a smoothly functioning incentive mechanism between displayers and retailers. Ultimately, a new shopping network will enable consumers to be engaged in seamless commerce.


The relationship of business model with strategy

Business Model is a reflection of the firm’s realized strategy. 

In simple competitive situations there is a one-to-one mapping between strategy and business model, which make difficult to separate the two notions.  

Business Model refers to the logic of the firm, the way it operates and how it creates value for its stakeholders; and Strategy refers to the choice of business model through which the firm will compete in the marketplace.

A firm’s strategy primarily involves choosing its BM –  the design of which defines the value creation and capture logics specific to the firm.

Strategy and business model, though related, are different concepts, a business model is the direct result of strategy but is not, itself, strategy.

Quoted from Casadesus-Masanell, R. and Ricart, J., From Strategy to BMs and onto Tactics, Long Range Planning, 43 (2–3), 2010.