Technology Of The Week (TOTW) Summary – Platform Mediated Networks and the private transportation industry

30

September

2016

No ratings yet.

Dear fellow students (and others),

The subject of the week we were assigned to was Platform Mediated Networks. In our video, professor Robo, John and Susan helped explaining this concept in a specific industry we had chosen.

First, we introduced and explained Platform Mediated Networks. Generally speaking, a Platform Mediated Network is comprised of users whose transactions are subject to direct and indirect network effects, along with one or more intermediaries that facilitate users’ transactions. These network effects imply that the more active members a network has, the more value it creates for everybody in the network. We decided to look into this regarding the private transportation industry and we can differentiate between two kinds of vehicle sharing: car sharing and ride sharing. Car sharing means that a car owner lends out his car to somebody who requests it. Ride sharing means that somebody traveling to a certain place, is taking other people along that need to go in the same direction.

After this, we collaborated the main commonalities and differences between the two types of vehicles sharing. To do so, we took two innovative companies to illustrate each type: SnappCar (car sharing) and BlaBlaCar (ride sharing). The main commonalities are that both companies are two-sided platform mediated networks with a mixed structure. They share the same goal of make traveling less expensive, more efficient and less polluting to the environment. Furthermore, the business models of both companies are a mix between an open (everybody can rent (out) a car) and a closed (platform is solely provided by the companies) platform. Therefore, the two can be called proprietary platforms. The value by both companies is increased by two consumer groups (owners and renters). The bigger the groups, the higher the value of the platform. With regard to their revenue model, both companies get their revenue from taking a cut of 15% of the rental price. While at BlaBlaCar the renter only pays a set price for a ride, at SnappCar there are various costs for things such as fuel and insurances.

The main difference between the two business models can be found in the specific market they target. While BlaBlaCar targets customers who simply need transportation from A to B, SnappCar targets customers who are more specific about the means of transportation. This means that while BlaBlaCar is mainly competing with public transportation means like trains and buses, SnappCar is rather in competition with conventional car rental companies.

At last, we gave our prediction for the future. People tend to share their private cars with others, because they, just as the other users, don’t need a car, but a way of getting from A to B. Hence, more and more people may start using car sharing platforms. In addition, for reasons of practicability, efficiency and environmental concerns, access to a car will trump private possession of a car, resulting in less people owning a car. Businesses in the car and ride sharing industry will have to be prepared to adjust to this change. Even though this development will continue to boost growth in the industry in the short term, it will eventually result in less cars available on the supply side of car sharing platforms. Therefore, the private vehicle sharing industry might be only bridging the time between a world with lots of privately owned cars and a world in which privately owned cars have ceased to exist.

That summarizes our completion of the assignment. We hope that with this summary we gave you a better view of Platform Mediated Networks and vehicles sharing, SnappCar and BlaBlaCar.

Kind regards,
Johannes, Bernhard, Lisette & Guy

Please rate this

Technology of the Week: Cloud Computing: Dropbox VS. Google Drive

30

September

2016

No ratings yet.

Information good is a type of commodity whose main market value is derived from the information it contains. Especially due to current digitizing, information goods become easily and cheaply distributed, transferred, reproduced, and reconfigured (Shapiro and Varian, 1999).

In our blog and video, we dive deeper into the world of cloud computing. Cloud computing is the practice of using a network of remote servers hosted on the Internet to store, manage, and process data, rather than just storing data on a local server or a personal computer. The cloud is a very broad concept, and it covers just about every possible sort of online service, but when businesses refer to cloud procurement, there are usually three models of cloud service under consideration, Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS).

Software as a Service is a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted. It is sometimes referred to as “on-demand software”. Platform as a service (PaaS) is a category of cloud computing services that provides a platform allowing customers to develop, run, and manage applications without the complexity of building and maintaining the infrastructure. PaaS is typically associated with developing and launching an app (e.g. SalesForce). Infrastructure as a Service (IaaS) is a service model that delivers computer infrastructure on an outsourced basis to support enterprise operations (e.g. Amazon). For our assignment, we will focus on SaaS.

We compare two of the major players in the cloud storage (SaaS) industry: Dropbox and Google Drive. Dropbox is a cloud storage and sharing provider, with over 300 million users. Dropbox users are provided by an online storage space hosted on Dropbox accessible anywhere via the Internet. The storage space provides storage for virtually any kind of file, like docs, images and videos. On the other hand you have Google Drive. Google Drive is a online backup service, where one can create, share, collaborate, and keep all of their digital belongings. Currently, Google Drive has over 1 million paid users since September 2015.

Strengths and weaknesses of both companies are compared based on ease of use (1), reliability (2), speed (3), features (4) and security (5). Regarding ease of use, Google Drive offers the option to upload documents from within a web browser, something which Dropbox does not allow. Besides, Google Drive has far more options for sharing and saving files. With an average uptime of 99.83% and no unexplained loss due to memory issues, Dropbox is a clear winner regarding reliability. Also considering speed, Dropbox is faster in uploading and transferring files, even if these files are downloaded to the desktop. However, as mentioned earlier, Dropbox is a very basic program only delivering you 2GB of free storage space. Google Drive on the other hand offers a free 15GB to users. Other features Google Drive offers include, creating documents, spreadsheets, and working with products as Gmail and Google+. Last, security and privacy of documents is a big issue in the cloud computing industry. Both companies guarantee protection by AES-256 bit encryption, however both companies have become the victim of several phishing scams. However, Google Drive has taken it a bit farther by internal employees accessing private files and disseminate them among externals.

Based on the five previous metrics, Dropbox currently wins the battle. But to stay competitive in the cloud storage market, it is important to consider the following trends:
– The cloud for B2B – firms are more and more seeking for cloud solutions to store, share and organize their files.
– The cloud for governmental institutions – public institutions are also eager to take advantage from the benefits of the cloud, giving Dropbox and Google Drive a new potential customer base.
– Rise of emerging markets in the cloud – at this point in time Dropbox and Google Drive are hardly present in emerging markets (e.g. India). However, analysis predicts emerging market growth in storage will outpace storage spending in more mature regions opening huge opportunities for cloud storage providers.

To conclude, the cloud computing battle is fought every day and without taking into account future trends Google Drive will soon take over.

Team 26

 

Please rate this

Can Small Webshops Survive Without the Money “Giants” Like Zalando, Bol.com and Coolblue Have?

30

September

2016

5/5 (3)

Please rate this

Every year Twinkle magazine publishes a ranking with the top 100 webshops in the Netherlands. Bol.com was again at the top of the list with an estimated revenue of 730 million over 2015. The number 100 had already a much lower turnover of barely 3 million. (Emerce, 2016)

Since there are 30.000+ online stores in The Netherlands, these figures raised me some questions. What will be the revenue of webshop number 30.000? Can these thousands webshops survive in a market wherein consumers became picky and more demanding? (CBS, 2016)

In the early days of ecommerce it was possible to run a profitable and “lazy” webshop when weekly delivery was still accepted. But today consumers are aiming for more speed, at least they expect next day delivery. The big players are able to do so by enclosing high volume contracts with companies like PostNL. Others even have a whole own logistics infrastructure with large distribution centers to fullfill the consumers’ expectations.
Companies like Coolblue (and Amazon outside the Netherlands) set the standard, and are ever raising the bar with services such as same day delivery. That makes it harder for small webshops to compete. Furthermore, the shop should work on any device. And users should be able to pay in countless different ways. (Ting, 2016)

Because it is costly to meet all these requirements, small webshops should consider other strategies to survive.

Become the expert in your niche

It is too hard and costly to compete on price and assortment. As a small shop you do not have the economies of scale that the big players have. Therefore it is better to offer unique products where you have less need to compete on price.

Focus on SEO

Spending money (the small webshops probably do not have) on Google Adwords can be really expensive.
In addition, there are plenty of opportunities in the field of SEO. With unique product descriptions and quality content it is possible to establish high ranking in the search engines. This will result in structural free visitor streams. Besides that, quality content and product descriptions will also prove your expertise and trustworthiness. (Kissmetrics, 2013)

Do not fight the giants, use the platforms they offer.

Besides their dominance, major players like Bol.com and Zalando offer also opportunities with their open platforms. By selling your products on their platform you can easily reach a lot of potential buyers and create awareness for your webshop. (Sprout, 2013)

 

Despite the differences in financial possibilities there are still ways to stand out from all other webshops. Still, I wonder if the mentioned strategies are sufficient for small webshops to survive.

What do you think? Are small webshops able to survive or will the big players dominate the entire online market?

 

Sources:

CBS. (2016, January 20). Stormachtige ontwikkeling webverkopen. Retrieved from https://www.cbs.nl/nl-nl/nieuws/2016/03/stormachtige-ontwikkeling-webverkopen

Emerce. (2016, september 22). Twinkle 100 is uit, bol.com bovenaan. Retrieved from http://www.emerce.nl/nieuws/twinkle-100-verschenen-bolcom-bovenaan

Kissmetrics. (2013). Seo errors ecommece websites. Retrieved from https://blog.kissmetrics.com/seo-errors-ecommerce-websites/

Sprout. (2013, february 26). Extra Sales via Zalando of Bol.com. Retrieved from http://www.sprout.nl/artikel/bedrijfsvoering/extra-sales-zalando-bolcom

Ting, L. (2016, September). Session 2: Industry Disruption.

 

Neuromarketing; another violation of our privacy or the future of consumerism?

30

September

2016

4.5/5 (2)

Traditional marketing is not only threatened by digital marketing, but also from the rapidly emerging field of neuromarketing. Neuromarketing is a field that was created by merging marketing, neuroscience and IT techniques. The purpose of this new discipline is to understand consumer behavior in the best possible way so as to offer new insights to businesses in order to create more appealing products and services. What is neuromarketing though?

When marketeers understood that 90% of our everyday decisions are made non-consciously they realized that the traditional methods of focus groups and surveys that were utilized in the past were simply not good enough anymore. Based on this notion, this new era of marketing emerged. Neuromarketing is using functional magnetic resonance imaging (fMRI) and electroencephalography (EEG) as well measurements of the respiratory rate, galvanic skin response and facial coding in order to decipher the consumer’s response to marketing stimuli. To put it in simpler terms our most primitive and physiological responses are analyzed in order to estimate our preferences in the most accurate way. In essence, these techniques measure our brain activity and every other physiological reaction while being stimulated by marketing material and they create maps of the regions that are stimulated in our brains in response to the specific stimuli. Then by analyzing this data with the latest available technologies, along with insights coming from neuroscience, the neuromarketeer can evaluate the market success of the product based on all of its attributes and characteristics.

The benefit of these technologies for the consumers is the higher quality of products and services. Businesses though can create more efficient marketing campaigns, optimize their pricing strategies, create new product lines and much more. On the other hand, these new methods have triggered a vibrant discussion in the scientific and business community regarding the ethical aspect of theirs. The major argument of this side is that these technologies exploit part of our brains that we are not in direct control of. Therefore, this line of reasoning concludes, it is unethical to pursue further research on this direction because it violates our privacy rights.

IT  has countless applications and different forms nowadays. The latest techniques of data analysis can lead businesses to create new markets and therefore value from unexplored areas by providing accurate, fast and relevant market insights.  Is there a limit to what we are willing to do in order to achieve greater profit margins though? In the information age the information we can gather about consumer’s behavior is becoming gradually unlimited. It becomes obvious then that the final decision of whether to pursue this direction or not lies on ethics. Since we are all stakeholders in this process we should all form our own unbiased opinions on such matters. Should we devote more time, money and effort towards perfecting these technologies or not?

What do you think?

 

References

Agarwal, S. & Dutta, T. Decision (2015) 42: 457. doi:10.1007/s40622-015-0113-1

The Contributions of Neuromarketing in Marketing Research. (2016). Journal of Management Research, vol 5(4)

Morin, C. Soc (2011) 48: 131. doi:10.1007/s12115-010-9408-1

Please rate this

“The Airbnb of energy”: energy sharing communities

30

September

2016

5/5 (5)

In previous years the energy market existed of a simple relationship between suppliers and buyers. Energy came from power plants and was delivered via power companies to energy using systems in homes or buildings, such as the washing machine and central heating. But the energy market is developing rapidly.

These developments lead to a growing local energy market. For example smart measuring devices, lower prices of renewable energy and new storage systems are reducing the threshold for households to produce their own energy. But what happens with the energy that remains?

Nowadays, prosumers – people who produce more energy than they use – sell the remaining renewable energy back to a power company in exchange for a refund. These companies will, in their turn, sell the energy to their customers. However, the more people that are producing their own energy, the smaller this refund will be. Hence, why wouldn’t the prosumers just sell the energy directly to their neighbors? It can be expected that initiatives will be taken to produce and sell energy in local communities. Energy will be shared within this community, without the intervention of a power company. By doing so, the possibility arises to seek for a ‘somewhere in the middle’ price; the producers of clean energy can earn more, while the consumer gets to pay less. It can be called the “Airbnb of energy”, where community members trade energy adapted to their own needs. Consumers get to choose their specific energy supplier – for example the wind energy from a farmer in the neighborhood – and the producers get to name their own price.

Internet of Things can offer opportunities for the energy sector. Intelligent network devices are able to carry out transactions between generators and users independently. The local energy transaction between for example the solar panels of your neighbor and your own electric car will be converted into a value. The local and autonomously operating systems are connected via internet and share information, allowing them to organize themselves in reaching a common goal: charging the electric car with renewable energy.

The self-organizing market places make it possible to become the boss of your own energy! Nonetheless, decentralizing the energy sector remains a big challenge for the dynamic energy market. Whether peer-to-peer energy sharing communities will play a key role in the future of the energy sector remains to be seen.

 

 

Sources:

Internet of Things

Blockchain-Based Peer-To-Peer Solar Energy Trading To Be Trialed In Perth


https://www.technologyreview.com/s/544471/renewable-energy-trading-launched-in-germany/

Please rate this

eSports: the future of the gaming industry or soccer industry?

30

September

2016

No ratings yet.

“Koen Weijland is the first eGamer in The Netherlands signed on by the Dutch Eredivisie Club Ajax” was the fat headline in an article posted yesterday (29-08-2016) in the Dutch quality newspaper ‘ het NRC Handelsblad’.  All over the web, on all television networks and cable channels, and in nation-wide newspapers you hear the term “eSports” this week. You see FIFA tournaments being held on-line, instead of two teams playing normal soccer matches live. In eSports, the gamers are dressed out in their team uniforms, hunched over big HD TV screens. Is eSports the future of video game competitions and entertainment? Or is it the future of soccer? Is this really a fast growing market, and why and where is it so popular?

Lets start to contemplate on the term eSports and where it comes from. eSports (also known as electronic sports, e-sports, competitive (video) gaming, professional (video) gaming, or pro gaming) is a form of competition that is facilitated by electronic systems, particularly video games; the input of players and teams as well as the output of the eSports system are mediated by human-computer interfaces (Hamari, 2016). So much for the theoretical definition. But what about the (virtual) reality of this new branch of FIFA?

The answer is much more astonishing and way bigger than one can or should expect. This week, Newzoo eSports released the latest quarterly update of its Global eSports Market Report.  The report shows that eSports’ revenues for 2016 will grow toward $493 million in 2016, up 7% from the $463 million projected at the start of that year. This puts the year-on-year growth at +51.7% (Newzoo, 2016). The image below says it all: you see the expected revenues of this insanely fast growing market.

rev

One of the recent innovations in eSports is the “spectators mode”: you see the game evolving through the eyes of your favourite player. Now you are “in the match and on the ball” and can influence the game as if you were playing the match yourself. And because the “playing field” of eSports is ‘on the web’, large audiences with many people can watch and guide their favourite individual player becoming the man of the match. People all over the world can simply log in, watch their favourite players play or watch for interlude entertainment and expanding game knowledge. But where is the target market? Which group or individuals sharing the same interest is so eager watching their favourite gamers play? The answer is pretty obvious: the biggest audience can be found in Asia-Pacific, where winning and being part of the winning team appeals to the group and individual status. The EU contributes only for 25% of the eSports Audience in 2016.

eSports is also opening a very different door for the current soccer industry in the near future. As software games will be evolving, there is no longer need for actual and live soccer games to be played. Over time all the moves of top individual players will be known and stored in data bases. Characteristics of popular players can be combined in one virtual soccer player. Virtual teams will be formed playing each other in virtual competitions. The software makers will take over and make money from this, because the best programmer will win the games his virtual players will excel in. This will be a not-so-distant threat for the current soccer industry. Soccer 2.0 will emerge.

 
References

Hamari, Juho; Sjöblom, Max (2016). “What is eSports and why do people watch it?”. Internet Research. doi:10.1108/IntR-04-2016-0085

Global eSports Market Report (2016), Newzoo

Global Esports Market Report: Revenues to Jump to $463M in 2016 as US Leads the Way

eSports: The Future of Video Game Competitions (2016), LA Local BB

 

 

Please rate this

Technology of the week: Platform mediated networks WeChat Vs Alipay

30

September

2016

No ratings yet.

Platform mediated Networks are taking over conventional business models. In our blog and video, we want to compare one the biggest platforms in china; WeChat and Alipay. Alipay and WeChat are global lifestyle super apps offering an extensive online ecology and creating positive cross-side network effects.

Alipay is a third party online payment platform with no transaction fees. And was founded in 2004 by Alibaba group; currently the biggest online retailer in China. And the app has 400 milion of active users
Due to the low confidence towards existent payment companies in China by their customers, Alibaba group has started its own payment service in order to give their customers a trusted way of making online payments. Alipay keeps the custody of the money during a transaction in order to guarantee that the product is delivered before releasing the money to the supplier. They ensure user’s payments are always protected and user information is never passed on to any other parties for commercial use.

WeChat is a cross platform instant messaging service. That has been founded in 2011, and recently has started offering WeChat payment and has about 800 milion of active users.
WeChat works in the way that it makes a connection with the bank account of the user in order to make the payments. Integrating this feature into the app makes payment faster for users and offers a lot of other services like shopping, hotel reservation, taxi and financial services.

Instead of using cash money or expensive credit cards, users of WeChat and Alipay can now pay with their smartphone. The selection of the product or service that is required and the payment now work on the same device. Users can also transfer money to other members and share or split bills among them using QR codes. Alipay and WeChat can be used to pay utility bills, top up mobile phone credits, buy train tickets or check the balance of a connected bank account

Both platforms are open platforms meaning that they give away some of the platform value to third parties who develop apps and other services that run on the platforms of Alipay and WeChat.
.
Alipay doesn’t sell data from consumers to third parties, Limiting on all kinds of technology and missing revenue.
WeChat on the other hand has the information privacy dilemma, so users may make a consideration whether the platform is worth enough to sacrifice their privacy.

The market is suited for multiple companies because of a high network value, low multi homing costs (it’s no problem of having both apps, and cancellation and starting is easy) and a high demand for new features makes this market a multi homing market.

Although more platforms can co-excist in the market but because of the better integration of features into the WeChat app, and the potential of selling customer data. Our prediction is that WeChat will have a better chance of becoming the most successful global platform for all kinds of services.
Team 55

When One App Rules Them All: The Case of WeChat and Mobile in China

9 Ways WeChat Can Improve Your Day

www.ru.nl/publish/pages/769526/z01_rongbing_liu.pdf

http://www.marketingfacts.nl/berichten/wechat-meer-dan-alleen-een-mobile-messenger

http://www.economist.com/news/business/21703428-chinas-wechat-shows-way-social-medias-future-wechats-world

https://www.youtube.com/watch?v=38uLiIQmgIk&feature=youtu.be

Please rate this

CRISPR – Technology of the (not so far) Future

30

September

2016

4.5/5 (2)

We could not imagine that 30 years ago everything would be connected through something called a world wide web. However this is true today, science fiction became our reality. The same thing is happening with genetic engineering.

Gene editing used to be extremely complicated, expensive and took a long time to do. However, this is now changed through the use of CRISPR. CRISPR is able to edit genes with 1% of the cost, what could be done in a year is now possible in a few weeks. And everybody with a lab is able to do it. CRISPR is like a GPS that can target specific DNA molecules. CRISPR has the ability to alter live cells and switch genes on and off. This all sounds very boring, however if you want all the details check this article.

Now to the part you have been waiting for… what can CRISPR change in your life?

Ending diseases

99% of mice carrying the HIV virus were inserted with CRISPR and almost 50% of all the HIV infected cells were destroyed. This is only the beginning. In a few decades CRISPR is able to cure HIV and other viruses. CRISPR could even defeat our worst enemy, cancer. Cancer occurs when cells refuse to die and hide themselves in the immune system. As stated before, CRISPR is like a GPS system and is therefore better able to detect the cells. The first CRISPR cancer treatment was approved on the 21 of June 2016 in the US. CRISPR might also able to treat genetic diseases. There are thousands of them ranging from colour blindness, which is quite harmless, to Huntington disease. Because almost every genetic disease is caused by an fault in your DNA, CRISPR is able to detect and cure the incorrectness.

 Designer babies

As sad as it seems, we already design our babies. When a woman gets pregnant with a baby and syndrome of down is detected, 93% of the cases the baby gets terminated. Modifying babies will probably start very slow with perfect health for example. However, as the technology progresses and gets more refined, more and more people will believe that not using genetic modification would even be unethical. As soon the first engineered baby is born, a door is opened that can not be closed again. Because if you can cure your baby from Alzheimer, why not also give it an enhanced metabolism, perfect eyesight or even extraordinary intelligence. Modified humans could just become the new standard. So what are the anti-aging possibilities?

Eternal youth

Two-thirds of all people who die, die from age related causes. CRIPSR could modify aging cells that can slow the aging process or maybe even stop it. We know from nature that there are animals immune to aging, the lobster for example. Maybe we could borrow some of those genes for our selves.

There is a possibility that we, students from BIM 16/17, could benefit from the first anti aging therapies. The only thing we need to do is convince a smart billionaire to make this his next big problem to solve.

There is no need to think small with CRISPR; at the end everything is possible!

Please rate this

Will your home be a platform?

30

September

2016

No ratings yet.

The seller to buyer business already disappeared a while ago. Nowadays, we live in a platform economy, where a platform mediates between the buyers and sellers. We expect more from all products and technologies we are using and due to the network effect; platforms come closer to meeting our constantly changing and more demanding requirements for satisfaction.

Even though Apple is a widely used example with iOS as an operating system in general, the Apple Store and the famous iPod including iTunes, I am going to use Apple again as an example case.

The network effect shows that platforms generate more value for each new user but also for each new service. Therefore, I am wondering if Apple will generate new value with implementing the Homekit, a platform on itself.

Platforms will also cause that non-technology firms will profit from the technology platforms whose are there, since it allows them to innovate as well. This leads to an ecosystem, where value creation is two sided and continuous.

The Apple Homekit allows you to regulate accessories within your home. There were already companies who are doing this for their specific product, however with their new platform, Apple allows users to not only control Apple specific products such as the Apple TV but also other products and brands.

However, at this moment, not many home accessories are linked to the platform yet. At this moment, Apple is still recruiting for app developers and accessory developers to be on the supply side of their platform.

As mentioned before, Apple is not the only provider who takes the house as some kind of platform. Also for example Google that overtook Nest already quite a while ago is working on this.

I am wondering how long it will take before all lights, tv’s, radio’s and all these offline technologies are trying to connect to such a platform. Will this turn out to a winner takes it all market. Or are consumers in the end willing to buy accessories suitable for their homekits?

Source: https://www.accenture.com/us-en/blogs/blogs-ecosystem-models-and-the-platform-economy

http://www.apple.com/ios/home/

https://developer.apple.com/homekit/

Please rate this

There’s no such thing as a free lunch. But your information is!

30

September

2016

No ratings yet.

 

24266506_BG1

 

 

Our participation on the internet has increased a lot the last couple of years. Everyone is making use of social networks like Facebook, Instagram, twitter et cetera. Initially these social networks are being used to stay in touch with our friends and family. Letting them know what keeps us busy in our daily lives. Are you going out with your friends? Let’s post that on Facebook! Are you going to travel to an exotic destination? Let’s post the pictures on Instagram! Do you have any doubts or are you irritated by some political decision? No worries, on twitter you can go on blast about anything. You can even hashtag your irritation in the hope it will be a trending topic.

Did you ever question yourself why these social networks are craving for your information? No? Well, here it comes:

Facebook is the pioneer of al social networks. With each click on a like button the corporation collects your entire browsing activities. Using it for a commercial purpose. A small example are the cookies. Believe me, cookies are delicious, but this one has a bitter taste to it.  The cookie that Facebook uses is in the form of a text file that can track user activities. Did you for example looked for some Adidas sneakers on Zalando? And not even a minute later you scroll down your feeds on Facebook and what do you see? Indeed, an advertisement of Zalando about Adidas sneakers. For a lot of people it is unnoticed that these activities are caused by the cookies in their browser. Facebook makes effectively use of your information. The biggest revenue income for Facebook is advertisement with a percentage of 76%. The revenue income increased with 45% in regards to the previous year. All due to your online posts.

But not only online post are a way to generate our information to these corporations. Even the supermarket around the corner is trying to influence your buying behaviour. Let’s take Target as an example. This supermarket uses ID cards for each customer. These ID cards are tied with some personal information of the customer such as a creditcard number, address, e-mail address and the name of the customer. Each time the customer buys products the information is being saved so a team of analytics can study the data. The objective of these data analytics is to make predictions about a certain target audience. For instance, pregnant woman. With the data that Target already had they made a prediction that a teenage girl was pregnant. With the information on her ID card they sended baby supplies advertisement to her address on her name. Her father was furious, because he thought that Target was promoting teenpregancy. He went to the store and demanded to talk to the Manager. The manager did not know why the advertisement were send and apologized. After a few days the manager called the father to apologize again. The father said to the manager that his daughter turned out to be pregnant.

Just imagine how far people can go with analysing your information. You choose to put your information out there. Do you think that you should earn something out of the billions of  dollars that are being made by these corporations?

 

Source:

http://www.forbes.com/sites/kashmirhill/2012/02/16/how-target-figured-out-a-teen-girl-was-pregnant-before-her-father-did/#1e3d553e34c6

http://www.bbc.com/news/magazine-34776191

Please rate this