Management Information Systems - Information Management - ETH ...

Management Information Systems 

Dr. Florian Michahelles, Dominic Wörner 

Department of Management, Technology and Economics, ETH Zürich 

Associate Director Auto-ID Labs, Co-Founder 42matters AG

Lecture & Report Time Table 

1 18.09.2012 Lecture Business Value of Information Systems 

2 25.09.2012 Lecture Basics of Information Systems 

3 02.10.2012 Lecture Internet of Things - M2M 

4 09.10.2012 Lecture Persuasive computing 

5 16.10.2012 Lecture Web 2.0 / Social Computing, Mobile Phones 

White collar crime as the next frontier for management 

6 23.10.2012 Lecture information systems (guest lecture) 

7 30.10.2012 Lecture Business Process Modeling 

8 06.11.2012 Lecture Risk Management 

Transaction Cost Theory & IT 

9 13.11.2012 Lecture The Concept of Integration 

10 20.11.2012 Lecture Service-oriented architecture 

11 27.11.2012 Lecture Business Process Redesign 

12 04.12.2012 Lecture IT Governance 

13 11.12.2012 Lecture IT Controlling 

14 18.12.2012 Lecture Outlook and Summary 

08.1.2013 Examination 

2012 Dr. Florian Michahelles, Information Management © Copyright ETH Zürich 2

Recap from last week 

• Psychology of Persuasion 

• Reciprocity, Scarcity, Liking, Authority, Social Proof, Consistency 

• Captology: applied persuasion on MIS 

• Motivation, ability, trigger 

• Tool, actor, medium 

• Value of emotional augmented products 

• Marketing strategies 

• defaults, social norms, framing, identity signaling 

• Applications 


The power of framing 

Focus on profit 

If you reduce the 

temperature by 1 °C 

you save X Euro per 

year 

Focus on loss 

If you do not reduce the 

temperature by 1 °C 

you waste X Euro per 

year to much 

endowment effect: 

WTA>WTP 

WTA = Willingness to accept compensation of something you own 

WTP = Willingness to pay for getting a good 

[Kahneman, Daniel and Tversky, Amos (1979), ‘Prospect Theory: An Analysis of Decision Under Risk’, 47 Econometrica, 263-291.] 



68 

32 

Source: Prof. Dan Ariely 



16 

0 

84 

Source: Prof. Dan Ariely 


The power of goal setting and feedback 

• The Washing machine experiment 

• 100 participants do 20 washing runs each 

• Up to 21% more economical when goals are set by oneself and 

feedback given 

Goals should be high but realistic, specific, and set by 

oneself 

Source: Prof. A. Herrmann 


The power of identity signaling 


Agenda 

Some applications 


Velix – the behavioral economy-effect-loaded portal to 

help consumers to save energy 

Sources: Bits to Energy Lab & VKW 


Implementing and deploying a best practice online portal - Velix 

All sources: www.vkw.at/velix 


Velix allows for segmenting customers. 


Feedback on energy consumption can be given in various forms – 

which one is best? 

Feedback 

Historic feedback 

Your last weeks 

electricity consumption: 

56 kWh 

Descriptive feedback 

Injunctive feedback 

You 

Neighbour 

s 


Site usage allows for evaluating the effectiveness of 

different marketing instruments. 

Online advertisment 

Online article Friday 

Booth at trade fair 

Online article Wednesday 


Why don‘t they talk to us? 


How will cars motivate us … 

Source: I-Lab, Statefarm Insurance 


… to behave? 


Self-Claim Services 


Customer say the love this apps, but… 


How will insurance companies motivate us … 


Outlook: Flying Sports Assistent 

Source: Keita Higuchi, Tetsuro Shimada and Jun Rekimoto, Flying Sports Assistant: External Visual Imagery Representation for 

Sports Training, Augmented Human, Odaiba, Tokyo, Japan, 2011. 


Rich world of daily activities 

What to do with all these things: products use, search, combine, 

borrow, buy, sell, describe … 

Breakfast, Chat, 

news Start work Break Meetings 

Entertainment, 

Sports, Dinner 

07:30 08:00 08:30 09:00 12:00 15:00 18:30 19:30 22:30 

Wake up, get 

ready 

Get to work Lunch, Socialize End work, 

Grocery 

shopping 

Go to bed 


http://www.nytimes.com/2012/02/19/magazine/shopping-habits.html?pagewanted=all&_r=0 


Lecture & Report Time Table 

1 18.09.2012 Lecture Business Value of Information Systems 

2 25.09.2012 Lecture Basics of Information Systems 

3 02.10.2012 Lecture Internet of Things - M2M 

4 09.10.2012 Lecture Persuasive computing 

5 16.10.2012 Lecture Mobile Phones, Web 2.0 / Social Computing, 

White collar crime as the next frontier for management 

6 23.10.2012 Lecture information systems (guest lecture) 

7 30.10.2012 Lecture Business Process Modeling 

8 06.11.2012 Lecture Risk Management 

Transaction Cost Theory & IT 

9 13.11.2012 Lecture The Concept of Integration 

10 20.11.2012 Lecture Service-oriented architecture 

11 27.11.2012 Lecture Business Process Redesign 

12 04.12.2012 Lecture IT Governance 

13 11.12.2012 Lecture IT Controlling 

14 18.12.2012 Lecture Outlook and Summary 

08.1.2013 Examination 


The mobile has changed… 

…from being a portable phone … 

…to becoming a mobile communication 

platform – the mass computer of the future. 


The mobile phone is the mass computer of the future 

• Technology 

• High power, low power 

• Sensors (accelerometer, camera, 

GPS, NFC, etc.) 

• Interface (youth-proof) 

• Open standards (Apple, Google etc.) 

• Impact 

• 1985 

• Extended Ego 

• Mind-Changer 


Mobile phones are everywhere 

6 bio phones world wide 

[Measuring the Information Society 2012 , ITU] 

http://www.flickr.com/photos/nygus/413537223/ 

http://www.flickr.com/photos/yachttrelawney/2098338856/ 


The mobile phone is one of the three things you always 

have with you – and it provides you access to all the 

services in the Internet 


, , 

Platform Technology 

1) It’s about having a structure with integrated features. 

Automotive 

example: 

1 structure many cars 

(Ww Golf, Passat, Sharan and Audi A3) 

2) 

structure granularity: 

HW OS 

APP 

 

WEB PLATFORMS 

Google platform 

3) 

Consumer based: superior innovation quick responses diversification 


Mobile phones are a computing platform 

Digital Camera 

Audio Recorder 

Video Recorder 

Multimedia Messaging 

Email Client 

Web Client 

Gaming Platform 

Documents Viewer 

Computer Adjunct 

Music Player 

TV 

Credit Card 

Bar-code /RFID 

readers 

Navigation 

Filofax 

Notebook 


Honest customer feedback, mobile & direct

Problem: Companies want 

customer feedback 

Status Quo 

Market Research Paper Feedback Online Contact Form 

Current solutions are expensive, outmoded and 

inconvenient for the end consumer.

Solution: Visitor feedback via 

smartphones 

Our product 

• Mobile applications and mobile websites 

• Works perfectly in every browser on all devices 

• 1-Click in order to access feedback form 

• Experienced tool on fairs and events 

Innovation 

• Feedback live and at your venue 

• Direct communication channel 

• No publication of feedbacks 

• Web application for analytics and excel export 

• QR-code, short-URL, app, app integration, NFC

Case: Event / Exhibition 

Compare the ratings of your events 

Event Munich 

Event London 

Event Berlin 

Event Paris 

Event Frankfurt 

Get insights on how the events were hold at the venues 

(gastronomy, lectures, quality, …) 

We support all devices: Apple, Android, Tablets, every browser 

can enter feedback at your URL (i.e. www.event.honestly.net) 

User rights: Grant event managers the right to see only their 

feedbacks and not the others

Case: Event / Exhibition 

Place your logo 

Communicate with guests via push-notification and email 

Be service-oriented and innovative

Case: Event / Exhibition



Case: Restaurant 

1. Ask for feedback 2. Get feedback 3. Analyze and contact 

Innovation 

• Customer feedback in real time 

• Direct after sales contact 

• Vouchers to increase customer loyalty 

• Easy to integrate into existing IT-platforms

Unique Selling Proposition 

Honestly provides real time, non-public and digital customer 

feedback 

Real time 

Indirect Survey 

Online Contact 

Forms 

Market 

Research 

Non-public 

Public

Business Model 

Companies 

Customer feedback 

Customer loyalty 

Direct contact to manager 

Vouchers 

End Customers 

Software-asa-Service 

Mobile 

application 

Freemium model 

Monthly payment

Market Potential 

Education 

• 45.000 schools ( 50 € monthly revenue ) 

• 400 higher schools ( 4.000 € monthly revenue ) 

Potential: 40 Million € 

Gastronomy: 80 Million € 

Hotel: 40 Million € 

Healthcare: 70 Million € 

Exhibitions / Events: 

40 Million € 

Public Sector: 80 Million € 

Financial Consulting: 

60 Million € 

Beauty: 50 Million € 

Retail: 50 Million € 

>500 Million € in Germany 

(2 Billion in EU-5)

Acquisition Strategy 

Sales & Marketing 

• SEO / SEM 

• Cold Calling 

• Exhibitions 

Marketing materials promote Honestly and generate App-users 

Companies 

Recommendation 

End Customers 

Acquisition via feedback forwarding

Impact on sustainability 

Ecological 

• Substitute paper forms 

• Save approx. 56 km² forest biomass annually 

Social 

• Customer/Management interaction improvement 

• Public services 

Economical 

• Save money and generate new business ideas

Future innovations in smartphone feedback 

Tailor Questions 

Mobile Architecture 

Adaptation 

Crowd Feedback 

• Filter question„Yes“ to „Did you drink alcohol onboard?“ triggers „What is 

your favorite white wine onboard?“. Goal: Valuable opinions 

• Location, Dimension, Focus Area and User Profile personal 

questionnaire. Goal:

Let‘s survey MIS 

Website 

• www.ethzmis.honestly.ch 

• Or download App (Play / App store) 

Break 

• Take a break 

• Feel free to discuss 

Live-evaluation 

• www.ethzmis.honestly.ch 

• Let‘s see what comes out

Thank you for your interest! 

Honestly provides the easiest feedback process possible and 

will become the standard for non-public customer feedback.

Mobile phones are game-changer 

Jenssen, R. „THE DIGITAL PROVIDE: INFORMATION (TECHNOLOGY),MARKET PERFORMANCE, AND WELFARE IN THE SOUTH INDIAN FISHERIES SECTOR”, The Quarterly Journal of Economics, 72(3), August 2007 


Augmenting the physical world 


Mobile phones know where they are 

[Wired Magazin Feb 2009] 


Roman Windlin, roman.windlin@fc.ethz.ch, 99-152-290 

Augmented Reality (AR) 

Enhancing one’s current perception of a real-world environment 

by computer-generated sensory input 

Optical projection systems 

• Technical approaches 

• Tracking position/orientation (GPS, Compass, Accelerometer, RFID) 

• Image/object recognition (computer vision, features detection) 

• Fast-developing fields 

• AR browsers (e.g. layar.com) 

• Social AR (e.g. crowdoptic.com) 

• Present and future challenges 

• Eliminating inaccuracy 

• Capturing unknown moving targets 

• Social acceptance / data privacy consensus 

• Generating real added value 


SwissPeaks 

Identify mountains with 

Mobile Augmented Reality 


, , 

Google Glasses 

‣ Under development at very early stage 

‣ Functionalities 

• Like smartphone 

• Augmented reality 

‣ Control with speech recognition 

‣ Weigh less than sunglasses 

‣ Marketing goals 

• Public release in 2014 

• Price of a smartphone 

YouTube: http://www.youtube.com/watch?v=9c6W4CCU9M4 


Product information becomes limitless… 


ShopSavvy, a mobile price-comparison application 

generates up to 1M product searches per day. 


Fabian Angstmann, afabian@student.ethz.ch, 08-919-680 

Participatory Sensing 

The concept of participatory sensing tasks everyday mobile devices, such as cellular 

phones, to form interactive, participatory sensor networks that enable public and 

professional users to gather, analyze and share local knowledge. 

Applications: 

• Gathering environmental data 

• Traffic management 

• ... ? 

Challenges: 

• Anonymity, privacy? 

• Data accuracy, veracity? 

• Incentives for participation? 

Burke, Jeffrey A; Estrin, D; Hansen, Mark; Parker, Andrew; Ramanathan, Nithya; Reddy, Sasank; et al.(2006). Participatory sensing. UC Los Angeles: Center for Embedded 

Network Sensing. 

http://complexitys.com/english/the-data-citizen-driven-city/ 


From business intelligence to personal intelligence 

«Quantified self» 


Peter Mayer, mayerp@student.ethz.ch, 12-909-479 

Mashups: creation through combination 

- Combine services from multiple sources into a single new web-based application 

- Mashup editors aggregate / reuse content and create new Gadgets / Widgets 

Your Twitter Status, in Photos 

Get step-by-step transit directions 

Grabs Flickr photos that match your 

Combines most recent Google Twitter Maps updates & 

information on local transportation 

Future: High potential for mashup applications in enterprise 


Agenda 

Web 2.0 


Pierre Mezeray, pmezeray@eleves.ec-nantes.fr, 12-945-895 

WWW, one of the service that runs on the Internet 

• Internet and the World Wide Web 3 essential technologies : 

HTTP request 

• URL: Uniform Resource Locator 

• HTML: Hypertext Markup Language 

URL 

IPA* 

• HTTP: Hypertext Transfer Protocol 

*IPA = Internet protocol address 

HTTP response + content of the request 

Response usually encoded in HTML 

=> Standards fixed by the W3C 


Sanne Remmerswaal, sanner@student.ethz.ch, 12-907-663 

(We)Blogs 

1994 1999 2004 2006 

Current use for companies: 

• Consumer-generated advertising 

• Pre-announcements 

• Explanation of policies 

• Customer engagement 

o Co-development 

Future use for companies: 

oTechnical support 

• Liking 

• Citizen journalism 

• Trend spotting 

• Enhance internal communication 

Internet of Things 


Francesca Partiti, partitif@student.ethz.ch, 12-945-846 

Lifecasting is a continual broadcast of events in a person’s life through 

digital media. Typically lifecasting is transmitted through the medium of the 

internet and can involve wearable technology. 

The term lifecasting can also refer to the process of creating threedimensional 

copy of a living human body, through the use of molding and 

casting techniques. 


Francesca Partiti, partitif@student.ethz.ch, 12-945-846 

Lifecasting is a continual broadcast of events in a person’s life through 

digital media. Typically lifecasting is transmitted through the medium of the 

internet and can involve wearable technology. 

1980s 

Lifecasting was born, thanks to the Steve Mann whose experiments with wearable 

computing and streaming video lead to Wearable Wireless Webcam. 

2007 

Justing Kan, founder of Justin.tv first used the term 

lifecasting to indicate the continual broadcast of events. 

Nowadays 

With the diffusion of smart phones, several applications for lifecasting entered the market. 

One of the firsts is Qik, which allows users to stream live videos from their cell phones to 

the internet. 


Service, not software: Netscape versus Google I 

• Netscape (1.0) 

• Software as a tool (like Lotus, Microsoft, SAP, Oracle) 

• Releases every 2 or so years 

• Need for porting 

• Google (2.0) 

• Service 

• Focus on data (databases, software, operations are hidden) 

• See e.g. amazon, napster, doubleclick, akamai 

• Platform independent, no porting 

• Ongoing improvement, daily releases 


Service, not software: Netscape versus Google II 

• Service, not software 

• Runs in „the cloud“ 

• Data management and operations are the core competency 

• Experiment and learn 

Source: O‘Reilly Media 


Omid Shekari, shekario@student.ethz.ch, 12-946-083 

Ajax - Asynchronous JavaScript and XML 

‣ Not a programming language. 

Before: 

each user action required that 

the page be re-loaded from the 

server (or a new page loaded) 

rather than only the changed 

information. 

Now: 

web applications can send 

data to, and retrieve data from, 

a server asynchronously. 

• less wait times 


Mattia Scotti, mscotti@student.ethz.ch, 08-916-686 

SOAP 

- Simple Object Access Protocol 

- Is a protocol specification for exchanging structured information in the 

implementation of Web Services in computer networks 

- Based on XML structure 

Easily readable from human and PC 


Sharing resources: Akamai versus BitTorrent 

• Akamai (1.0) 

• Business with the head, revenues from center 

• Own server farms 

• BitTorrent (1.0) 

• Client is also server (P2P) 

• Service gets better the more 

people use it 


, , 

Web-oriented architecture (WOA) represents a specialization of a SOA, obtained by emphasizing the 

use of simple Web 2.0 technologies and standards. 

• Important aspect is the fact that no additional standards have been defined and used. 

• WOA is based on the strength of the Web itself and it is underlying its architectural fundamentals. 

Basic Principles: 

•Information in a WOA is represented in the 

form of resources on the network and are 

accessed and manipulated via the protocol 

specified in the URI, typically HTTP. 

•Every resource on the network can located via 

a globally unique address known (URI) . 

•Resources are manipulated by HTTP verbs 

(PUT,DELETE) using a technique known as REST. 

•Manipulation of network resources is 

performed solely by components on the 

network (essentially browsers), the access to 

the resources just requires basic knowledge. 


Some theoretical background on network economics 


Metcalfe’s law 

the value of a telecommunications network is 

proportional to the square of the number of 

connected users of the system (n 2 ) 

Source: Wikipedia 


Effects 

Installed base and complementary goods 1 

[source[: M. Schilling: Technological Leapfrogging: LESSONS FROM THE U.S. VIDEO GAME CONSOLE INDUSTRY, 

CALIFORNIA MANAGEMENT REVIEW, Vol. 45, No. 3. (2003), pp. 6-32] 


Value 

Effects 

Installed base and complementary goods 1 

Complementary goods 

Complementary goods 

availability 

Marginal 

value of new 

technology 

availability 

Installed base 

Technological utility 

Installed base 



Combined value of 

stand-alone 

technological utility, 

installed base, and 

complementary goods 

offered by 

existing technology 

New technology New technology that is 

competes 

compatible with existing 

only on the value of its technology's installed 

stand-alone utility 

base and 

complementary 

goods 

[source[: M. Schilling: Technological Leapfrogging: LESSONS FROM THE U.S. VIDEO GAME CONSOLE INDUSTRY, 

CALIFORNIA MANAGEMENT REVIEW, Vol. 45, No. 3. (2003), pp. 6-32] 


Harnessing collective intelligence 


Simon Günter,sguenter@ethz.ch,96-102-777 

RIA: Rich Internet Application 

• Webapplication 

• Like desktop application (look and feel & behaviour) 

• Uses browser plugins / JavaScript 

• Combines usability with large user base 

• Example: Google docs, Business application 


Collective content creation: Britannica Online versus 

Wikipedia 

• Britannica Online (1.0) 

• Few experts 

• Only trust experts 

• Wikipedia (2.0) 

• Everybody 

• „With enough eyeballs all 

bugs are shallow“ 


Elena Domanitskaya, edomanitskaya@student.ethz.ch, 02-734-101 

Wikis 

Ward Cunningham described it as “the simplest online database that could possibly work”. 

Properties 

Anybody can edit the pages of the wiki, 

and anybody can undo these edits. 

It is easy to create and edit Web page 

content using any Web browser. 

Concepts 

Promotes meaningful topic associations 

between different pages. 

It seeks to involve visitor in an ongoing 

process of creation and collaboration that 

constantly changes the Web site landscape. 


Collaborative innovation - Crowdsourcing 

Case Threadless & Spreadshirt 


, , 

Twitter vs. App.net 

Twitter 

• “What’s happening” in 140 

characters 

• Free of charge 

• Real-time information network 

• Trending topics (hashtag #) used 

to promote sponsors 

• Over 500 million active users 

App.net 

• Paid version of Twitter? 

• A platform, not just an app 

• Use API (application 

programming interface) to build 

platform 

• “Cloud” infrastructure 

• Be what Twitter could have been 

• Tie multiple apps together real-time 

information 

• ~20,000 users 



UGC Employed by Retailers 

Crowdsourcing 

Social Media 

Advertising with User- 

Generated Content 

• New products 

• Service ideas 

• Social Media Analytics: 

understanding the consumer 

• Social Media Management: 

Building and managing a 

Facebook brand presence 

• Advertising alongside UGC 

• Advertising with UGC 

• Concepts and business models 



Challenges of today 


Crowdsourcing Case Study 

CS Method is chosen 

Conclusion of contract 

Question 

goes online 

Question 

goes offline 

Awarding finalized 

Winners announced 

Deliberation Preparation Execution Assessment 

Post- 

Processing 

Muhdi et al. 2010 

• Employ Open 

Innovation 

• Understand 

“Web 2.0 

customers” 

• Use existing 

community 

(Atizo) 

• Draft question 

and test 

• Set evaluation 

criteria 

• Staffing 

• Encourage 

participation 

• Moderate idea 

generation 

• Rank ideas 

• Categorize and 

rank ideas 

• Award 19 ideas 

• Group and 

analyze top 14 

ideas 

• Prepare selection 

workshop with 

“idea jury” 

• Select 4 ideas 

for development 


Idea Flow, Categorization and Selection 

Idea categories by number of ideas 

Products and services 

Public displays and terminals 

Mobile offerings 

Physical store w/ virtual data 

Pickup services 

Uncategorized 

Payment 

Games 

0 50 100 150 200 250 

Number of ideas generated by week 

250 

200 

150 

100 

50 

0 

233 

97 

40 

64 

44 

KW 3 KW 4 KW 5 KW 6 KW 7 KW 8 KW 9 KW 10 KW 11 

30 

24 

38 

56 

Ranking of top ideas by impact and complexity 

Total ideas generated vs. ideas used 

Digital 

Pinboard 

Tryvertising Geocaching 

Tweet-a-sale 

E. Dubach Spiegler, D. Stöcklin, L. Muhdi, F. Michahelles, “Crowdsourcing for ‘ Kiosk of the Future ’ – A Retail Store Case Study,” Americas Conference on Information Systems (AMCIS), 2011 


Crowdsourcing lessons learned 

• Expert knowledge in the CS team 

• Question Formulation 

• Budgeting time and effort 

• Innovator involvement 

• Innovator bias 

• The public nature of CS 

• Post-processing and implementation 


How will food motivate us to … 

• Allergy Assistant 

• Political Shopping 

• Product Rating 

• Price Comparison 

• Carbon Footprints 

Source: Courtesy of Robert Adelmann, ETH Zurich

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