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Case Map for O'Brien: Management Information Systems - Harvard ...

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Product #: 901E05<br />

Length: 16p<br />

Teaching Note: 801E05<br />

eBay: Private Ordering <strong>for</strong> an Online<br />

Community: David P. Baron; David<br />

Hoyt<br />

Product #: P37<br />

Length: 21p<br />

Teaching Note: P37T<br />

Sophis Networks and Encryption<br />

Export Controls (A): David P. Baron;<br />

Victoria Chang<br />

Product #: P34A<br />

Length: 16p<br />

B case available<br />

combined technology, media, and data expertise to centralize planning,<br />

execution, control, tracking, and reporting <strong>for</strong> online media companies.<br />

DoubleClick was able to track Internet users' surfing habits (but not the<br />

surfers' identities), allowing it to personalize ads <strong>for</strong> specific market<br />

groups. When DoubleClick announced it was merging with Abacus<br />

Direct, a direct marketing company with a database of consumer<br />

names, addresses, and retail purchasing habits of 90% of American<br />

households, it raised many privacy-related questions and concerns.<br />

Several Internet privacy activists had filed a <strong>for</strong>mal complaint with the<br />

Federal Trade Commission after being in<strong>for</strong>med by media sources that<br />

DoubleClick had the ability to divulge a person's identity by merging the<br />

databases of the two companies and matching the in<strong>for</strong>mation in<br />

"cookies" with a surfer's profile. The president was confident that its<br />

internal practices were sound, but he wondered whether they would<br />

placate advertising clients afraid of consumer backlash, the concerns of<br />

Internet surfers, and the company's investors.<br />

Subjects Covered: Advertising; Direct marketing; Electronic<br />

commerce; High technology products; Internet; Risk management<br />

eBay hosts the world's largest online trading community. Members of<br />

this community buy and sell in auctions conducted on the eBay web<br />

site. The success of this marketplace depends on the ability of buyers<br />

and sellers to feel secure in conducting transactions. As the community<br />

has grown, the issues involved in providing a safe marketplace have<br />

become more and more complicated. Activity conducted on the eBay<br />

site are subject to public law, but the company has supplemented<br />

public law with its own policies, rules, and regulations intended to<br />

provide a safe online environment <strong>for</strong> its members. This case discusses<br />

the private ordering of eBay's community, and describes several<br />

situations that might require new or revised policies, including privacy of<br />

member in<strong>for</strong>mation, off-site transactions, sale of controversial items,<br />

and sale of banned or regulated items.<br />

Subjects Covered: Auctions; Community development; Electronic<br />

commerce; Internet marketing; World Wide Web<br />

The vice president of the Security Products Division of Sophis Networks<br />

along with the Government Affairs Group had spent the last two and a<br />

half years working closely with Congress and the Clinton administration<br />

to relax U.S. export restrictions on encryption products (because export<br />

restrictions meant lost sales <strong>for</strong> U.S. companies such as Sophis and<br />

customers outside the United States demanded products with the<br />

highest level of encryption available). However, President Clinton<br />

pledged to veto a bill called the Security and Freedom Through<br />

Encryption Act (SAFE), which hoped to relax U.S. export restrictions.<br />

The vice president and the Government Affairs Group at Sophis<br />

needed to develop a "nonmarket" strategy and implementation plan to<br />

relax encryption export controls.<br />

Learning Objective: To teach students how to think through<br />

"nonmarket" problems that companies, especially high-technology<br />

companies, face; how to develop strategy and action plans to remedy<br />

nonmarket problems; and how to evaluate the strategy and actions of a<br />

prominent high-technology company when faced with a businessthreatening<br />

nonmarket issue.

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