Can we still trust our cars?

24

October

2016

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The ever growing number of ‘smart’ web-enabled devices is associated with a connection between these devices, creating the internet if thing (IoT). Intelligence services might use the IoT for monitoring, surveillance, location tracking etc., mostly because of the leakiness of data in the private sector. They usually store data somewhere, on some server. This data is easily obtained, because of the insecurity of the these servers. There is some level of hardware needed, such as in cars, in order to perform adequate surveillance. Companies take hard lines to make sure their user data does not end up in the hand of the government, but manufacturers of hardware do not prioritize user privacy and consumer often make themselves very vulnerable (Thielman, 2016).

Cars nowadays record almost everything. They observe driving behavior and record every journey. In combination with navigation systems and smartphone apps, a lot of data is generated. These aspects create an environment in which privacy of people can be compromised. Also, insurance companies created so-called black boxes, which measures acceleration and should eventually help driving safer. This will reduce the number of damages, so the insurance premiums could also be reduced. However, the data can also reveal where someone has been and how many passengers were in the car, basically turning your own car in some sort of a ‘spy’. Of course, the industry claims that privacy has the highest priority, and that manufacturers need to show that the generated data is impersonalized (Wall, 2014). Overall, it will be necessary to check whether the data and connectivity create benefits that outweigh the privacy problems. The privacy of people should be guaranteed by regulations, because the data would make driving more safe and therefore very attractive to use in the process. In conclusion, cars may not be totally trustworthy at the moment, but this should be reversed by regulations in order to benefit from the generated data.

https://www.theguardian.com/world/2016/feb/10/internet-of-things-surveillance-smart-tv-cars-toys

http://www.bbc.com/news/business-29566764

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Digital Transformation Project: Sports Unlimited

13

October

2016

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Sports Unlimited B.V. (SU) is a fitness organization founded in 1993, located in Zoetermeer. Since October 2015, SU expanded with a second gym also located in Zoetermeer to offer extra possibilities for their customers. It is one of the largest fitness centers in Zoetermeer that offers low-budget subscription fees. Thereafter they offer additional services, such as group lessons, boxing, wellness and outdoor activities. They have the mission to help their customers to reach its goals. They want to accomplish this by providing them with personal service and appropriate fitness equipment. This includes personal training, food advice and diet schemes and instructions to take home. However, there is a new trend within the fitness market through the rise of fitness applications. Most fitness applications allow people to track their progress. User can log workouts, and track statistics on runs, walks and bike rides. User can gain great insights which helps them to improve. Moreover, it is often possible to count calories, which helps people in making the right food choices. Additionally, certain apps can adjust workouts based on fitness level and available time, making it easier for people to get their workout in, no matter where they are and how much time they have

SU is being threatened by competitors like Anytime Fitness and Basic-Fit, which are able to optimize service levels but also manage to reduce costs. They have implemented an application which enables users to find gym location and information, view club offers and promotions and provide feedback about the gym. Users who are also members can view their membership status, update personal information, change billing information, communicate with their virtual coach and friends and set and track progress towards automated and manual goals. This trend forces SU to digitally transform into an organization which offers the same as the competitors, and hopefully even more. That is why we proposed the solution to introduce an application which helps people reaching their goals by providing an information platform. The application would include: members’ personal information, tutorials on how to use certain machines, optimization of personal schedules (including exercises for at home), appropriate diet suggestions based on a member’s personal input and information about member’s progress toward their goal. Hence, it will be possible to reduce costly personnel, but still provide a better customer experience through the application. Strategically, this will be necessary in order to keep up with the competition. Additionally, SU is determined to create value for customers by providing them an environment in which people can reach their goals. It is therefore an attractive option which also fits in the current business model. Moreover, the cost & benefits analysis shows that the application will generate profits within two years. The first year costs will he higher than benefits, because of the high development costs. Because these costs only occur once, the second year will already be profitable. Overall, implementing the application will have a positive a positive effect on the performance, strategically as well as financially.

Group 15

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Exploring Bidder Heterogeneity in Multichannel Sequential B2B Auctions: Evidence from the Dutch Flower Auctions (summary)

9

October

2016

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The authors ought to understand bidding behaviour regarding business-to-business (B2B) auctions, in response to the proliferation of online auctions. In contrast to business-to-consumer market (B2C), transactions in the B2B market involve mutual trust and product and quality requirements. Also, bidders are far more experienced, have different incentives and are subject to budget constraints. The implications of these differences on the bidding behaviour of bidders, are researched by exploring bidding strategies in B2B auctions, how these strategies affect bidders’ economic welfare and how the strategies can be incorporated in the design of these auctions. The Dutch Flower auctions (DFA) has been used to conduct the research, because this market consists of online and offline channels.

In order to capture the different strategies, cluster analysis has been used. The authors consider time of entry in an auction, time of entry on a day, time of exit on a day and frequency of bid on a day. This results in three conservative strategies and two forward-looking strategies, based on the bidders’ time of entry on a day and the time of entry in an action. The lower the value of the time of entry, the higher the urgency of purchase, while a large value suggests a strategic consideration of upcoming auctions. Conservative strategies consist of early bidders, opportunists and analysers, whereas forward-looking strategies include early bidders and opportunists.

The identification of the different strategies challenges the traditional view that bidders change their strategies when they gain experience by the participation in auctions. Because of the discrepancy in observed bidding strategies compared to other literature, it is necessary to understand the fundamental differences between the B2C and B2B markets. The model provided by the authors provides a starting point, because the choices of the bidders are based on specific requirements and constraints.

Auctioneers can use the information on bidders’ strategies to control parameters, such as starting and reserve prices, in order to achieve higher revenues. For example, early bidders and analysers are sensitive to the change of minimum purchase quantity. Thus, auctioneers can potentially customize the daily auction schedule, considering the differences between the conservative and forward-looking strategies.

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