1. Conceptualizations

1
1. Conceptualizations Nature of SOFTWARE (SW)
2
??????????????????????????? VS.
????????????????????

• ????????????????? DNA- IQ/ EQ

??????????????????????? Environmrntal Natural
System- ENTITY ?????????? ????????????
Metaphysic Existenece, Ontology Being
-Tangible/ Physical (Thing, Botany, Zoology,
Human-being), Intangible/ Logical (Concept,
Events, Phenomenon, Situation)
????????? ??????????????????? ????????????????????
?????? ??????????
?????????????????????????????? ??? ????????????
(Information Systems (IS) of ENTITY)
Carl Shapiro and Hal R. Varian Nature of
SOFTWARE- Information Goods, High Value Chain
VS. Processing by DRIVEN FORCE (IQ/EQ) of
INFORMATION PROCESSORS (IPO Logic Methodology) -
Produced Outputs- Soft Goods (FACT, DATA,
Information, Knowledge, Wisdom, IPR)
??????????????????????????????????? (NAURE of
SOFTWARE)?
3
??????????????????????????? VS.
????????????????????
??????????????????????????????????? (NAURE of
SOFTWARE)? ???

• Intrinsic Context Value- Property and
  Attributes/ Cohesion of IPR of Global Economy
  based on Intangible/Information Goods, High Value
  Chain and Light Weight, Processing by IPO LOGIC
  Methodology on IQ/EQ of INFORMATION PROCESSORS,
• Extrinsic Context Value- Environment Dependency
  - PEST(P Politics, E Economy, S Social, T
  Technology (Socio-cultural Innovation)
• Relationship/ Covariance of Extrinsic and
  Intrinsic Value - CHANGE MANAGEMENT RULE/ Code
  of Conduct/ Ethics (Good Governance, CSR)
• 
  Based on
• 
  MATURITY of
• 
  Generalization/ Standardization
• 
  and Concept of Stockholders,
• 
  Shareholders, Stakeholders-
• 
  
• 
  

4
??????????????????????????? VS.
????????????????????
??????????????????????????????????? (NAURE of
SOFTWARE)? ???

• Shareholders/ Stakeholders of INFORMATION
  PROCESSORS-
• Technical of W3C,ISO, Engineer Task Force, CMMI
  etc
• Industrial/ Marketer Entrepreneurship of COTS-
  ANSI, .NET etc
• Society Community of Open Sources- JAVA and
  Other etc
• Government- EDIFACT-XML etc

5
2. Introduction of SQA and Maturity of
Information Processors
6
Differences between Software and Other Products

• Product Complexity VS. Information Goods
• Product Visibility VS. IPO Logic Intangible
  Goods
• Product Development Process VS. Life Cycle CMMI
• text pages 4-6

7
"Software Crisis ???????????????????????????? SW
????? ????????????????? SW ???????????????????

• term coined by DoD years ago
• Problem Today complexity of problems addressed
  by software has outpaced/ ?????????????
  improvements in software creation process

8
The Big Question

• Q How do we assure quality?
• A We have a good process. VS. Hidden agenda IPR ?

9
Next

• Define Quality
• The nature of software errors
• examples of costly software errors

10
3. Patent Infringement/ ?????? COTS and
Development
11
Doctrinal Sequence ??????????????? ?

• FIRST What is the literal/ ??????????????/???????
  ? meaning of the claim language?
• THEN If the accused product falls outside that
  language, is it an equivalent of the claimed
  invention?

12

• The questions presented are
• (1) Whether digital software codean intangible
  sequence of 1s and 0smay be considered a
  component of a patented invention within the
  meaning of Section 271(f)(1) and, if so,
• (2) Whether copies of such a component made
  in a foreign country are supplied . . . from
  the United States.

13
4. Capturing the Essence of Software
Engineering VS. Enterprise Architecture
14
The Malleable Nature of Software ?????????????? ?

• Evolution is more important in software than in
  other engineering disciplines
• Software engineering rarely involves green
  field development
• Software needs to be constantly maintained and
  evolved to meet new business requirements
• The cost incurred in evolution usually exceed the
  development cost by a factor of Level 3 or 4

15
Goals

• Defining the basic definition of software
  engineering
• Providing a strong mathematical basis
• Identifying the truly universal elements
• Defining a kernel language that describes the
  method elements -- practices, patterns, and
  methods
• Providing assessment techniques evaluating
  software practice and theories

16
What is Software Engineering ???????????????????
?????????????? ?

• Software Engineering Software Engineering
• The application of engineering methods and
  discipline to the field of software
• Software engineering is indeed an Engineering
  discipline, it should be treated the engineering
  way

17
Difference between Science and Engineering

• Science seeks to understand what is, whereas
• Engineering seeks to create what never was
• 
  --- Henry Petroski 2010
• It is not appropriate to describe engineering as
  mere applied science
• Some extra-scientific components to engineering
• Creative nature
• Situated culture particularity to a specific
  application domain

18
Difference between Science and Engineering

• When defining software engineering and the
  Universals
• It is essential to keep in mind the similarities
  and differences between science and engineering
• Science
• Deals with the universal laws
• Context and time independent and true everywhere
• In engineering
• Analysis follows synthesis and observation
• Engineering
• Situated culture
• Needs to have constant learning, refinement and
  adaptation to meet the environmental requirements

19
Difference between Science and Engineering

• In engineering
• Analysis follows synthesis and observation
• Not the other way around

20
Engineering model vs. Software Model

• Incomplete specification
• First three stages are often blurred
• Final product is intangible
• Doesnt wear out

• Full specification
• Design
• Manufacture
• Test
• Install
• maintain

21
A Hierarchical Structure of Universals

• Layer 1 the engineering aspect

• Best practices of engineering discipline
  applicable to software
• Project
• Transformation
• Flow
• Value generation
• Management
• Planning
• Execution
• Controlling

22
A Hierarchical Structure of Universals

• Layer 2 the software aspect

• Unique practices to software
• Extensibility
• Interoperability
• Evolveability
• Reusability
• Maintainability

23
A Hierarchical Structure of Universals

• Layer3 variability -- situated culture

• Reflect and address the knowledge
• of different more situated
• application domain
• Real-time systems
• Self-adaptive systems
• Self-management systems
• Web systems
• more

24
Software Engineering A University Perspective

• Poorly perceived anyone can teach it
• Scarcely founded (e.g., Federal and States)
• Challenging Quality publications

25
Prevalence of fads -- acronym soup
Cloud Computing
Lean
Grid
Moving Targets
Scrum
Web Services
Agile
26
5. The Nature of Information Technology Projects
CMM Level 1
27
Questions

• What is a project?
• What is project management?
• How does project management relate to other
  disciplines?
• What is the career outlook for project managers
  in information technology?

28
What Is a Project?

• A project is a temporary endeavor undertaken to
  accomplish a unique product or service (Project
  management body of Knowledge (PMBOK) Guide 2000,
  p. 4)
• Attributes of projects
• unique purpose
• temporary
• require resources, often from various areas
• should have a primary sponsor and/or customer
• involve uncertainty

29
Case 1 Calebs Mission Critical Schedule System
(MCSS) for Continental Airlines

• If an airline company has to make up a cancelled
  flight in an emergency, for example, a plane
  crash, it may take it several hours to reschedule
  the relevant flights as well as the crew teams,
  and a couple of days to settle down other legacy
  problems. Caleb has developed a mission critical
  schedule system for airline companies, which can
  find the solution in minutes and solve other
  legacy problems in a few hours.
• Continental Airlines, as a client of Caleb
  Technology (Austin) for years, has carefully
  evaluated the system and decided to adopt the
  application. Delighted by the winning of the
  contract, Caleb is facing the following several
  questions
• EDS is the original application developer and
  will be working with Caleb in the user interface
  as Continental Airlines required. How to
  cooperate with Continental Airlines is the key
  issue.
• MCSS must be integrated into existing enterprise
  information system of Continental Airlines. How
  this will be done?
• How test MCSS in the real environment to
  guarantee its reliability and availability.
• How to switch from old system to the new system
  integrated with MCSS?

30
Case 2 Online medical services appointment
system

• Making the appointment with a PCP or specialist
  doctor is normally via phone call. Even though
  e-commerce and many other online services are
  prevailing, such a service in medical area has
  never been done yet. We there were such a system,
  this system would have allowed patents to check
  the availability of a doctor or any other medical
  services from the Internet, making and changing
  the appointment. So, this is a promising system
  in several ways
• It will greatly make the appointment convenient
• It can be connected to other networked medical
  information services, such as medical insurance.
• It will also benefit the medical service
  providers much in saving costs and improving
  service quality.
• There several issues
• Who will initialize the project?
• Who should be involved ?
• Who is to be a target buyer of the system?
• How this system can be co-operated with other
  medical information systems?
• Is this system really beneficial?

31
Case 3 Adams Globalization online translation
services development

• Adams Globalization is a leading translation
  service company in Austin, Texas. The company
  provides the translation between English and
  several other languages, such as Spanish, German,
  French, Japanese, and Chinese. The company
  started in 1982. In 1993 it hired 4 employees and
  in 2003 it hired 40 employees and operating a
  translator network with more than 1000 freelance
  translators. The companys revenue in 2002 was
  4,000,000. Adams Globalization has been facing
  more and more pressures to convert its business
  model from traditional translations to an
  Internet-based one
• There is an increasing Internet-based application
  translation demand.
• Intensified Internet usage requests the company
  to change its business processes
• The company is moving towards a global market.
• Therefore, there are several reasons for Adams
  Globalization to adopt e-business. There are
  several issues
• What is the new business model?
• How to develop a web-based business system?
• What is the project scope?

32
The Software Crisis
If builders built buildings the way programmers
wrote programs, then the first woodpecker that
came along would destroy civilization. -Gerald
Weinberg
33
Status of IT Projects

• 31 IT projects were cancelled before completion
• 53 were completed, but were over-budget,
  over-schedule, and did not meet the original
  requirements.
• The average cost overrun of medium-sized projects
  was 202

34
Why Projects Fail CHAOS STUDY
35
What is Project Management?

• Project management is the application of
  knowledge, skills, tools, and techniques to
  project activities in order to meet project
  requirements (PMI, Project Management Body of
  Knowledge (PMBOK Guide), 2000, p. 6)

The Project Management Institute (PMI) is an
international professional society. Their web
site is www.pmi.org.
36
Improving the likelihood of success

• Socio-technical Approach
• Cooperation between developers and users
• Project Management Approach
• Depending more on processes and infrastructure
• Resources management
• Delivering the outcomes in a professional way as
  expected
• Coping with greater internal and external
  competition
• Improving efficiency and effectiveness
• Knowledge Management Approach
• lessons learned
• best practices

37
The 2001 Standish Group Report Showed Decided
Improvement in Project Success

• Time overruns significantly decreased to 163
  compared to 222
• Cost overruns were down to 145 compared to 189
• Required features and functions were up to 67
  compared to 61
• 78,000 U.S. projects were successful compared to
  28,000
• 28 of IT projects succeeded compared to 16

38
Why the Improvements?

• "The reasons for the increase in successful
  projects vary. First, the average cost of a
  project has been more than cut in half. Better
  tools have been created to monitor and control
  progress and better skilled project managers with
  better management processes are being used. The
  fact that there are processes is significant in
  itself.
• The Standish Group, "CHAOS 2001 A Recipe
  for Success" (2001)

39
Factors For Successful Projects

• User involvement
• Executive management support
• Clear statement of requirements
• Proper planning
• Realistic expectations
• Smaller project milestones
• Competent staff ownership
• Clear vision objectives
• Hard-working, focused team

40
Chaos Study
41
Why do we learn project management?

• It is different from system analysis
• It will allow you to apply all the knowledge you
  have learned in IS, such as programming, data
  management, and system analysis, into the
  practices
• But more management
• Consider you get a programming job. In the first
  week in the company you are asked
• To work with someone to do some Java programming
  but you dont know what it is for
• To join a project group for internal software
  resource sharing project but you dont know who
  are your colleagues before a meeting or
• To look into the latest WiMAX (IEEE 802.16e)
  technology to see the potential application to
  your companys business. You here of it but
  wonder why
• To investigate the search engine market and write
  a proposal it is a task for a programmer?
• What should you do?

42
The context of project management
Project Attributes

• Interdependent tasks
• Organizational change
• Operating Environment

• Time Frame
• Purpose
• Ownership
• Resources
• Roles
• Risks Assumptions

43
The Triple Constraint of Project Management
44
Roles in a project

• Project Manager
• Project Sponsor
• Subject Matter Expert(s) (SME)
• Technical Expert(s) (TE)

45
Risks Assumptions

• Internal risk
• From the estimation process or from the fact that
  a key member of the project team could leave in
  the middle of the project
• External risk
• Arises from the dependencies on other contractors
  or vendors
• Assumptions
• What we used to estimate scope, schedule, and
  budget and to assess the risk of the project

46
The Project Life Cycle andIT Development
47
Definitions

• Project Life Cycle (PLC)
• A collection of logical stages or phases that
  maps the life of a project from its beginning to
  its end for a project
• Deliverable
• A tangible and verifiable product of work
• Phase exits, stage gates, or kill points
• Phase-end review of key deliverables that allow
  the organization to evaluate the projects
  performance and take immediate action to correct
  errors or problems

48
Generic Project Life Cycle
49
Phases/Stages of PLC

• Define project goal
• Plan project
• Answer questions (What, why, how, who, et al)
• Baseline plan
• Execute project plan
• Close project
• Evaluate project

50
Systems Development Life Cycle
51
Systems Development Life Cycle

• SDLC sequential phases or stages an information
  system follows throughout its useful life.
• Phases/Stages
• Planning
• Analysis
• Design
• Implementation
• Maintenance and Support

52
Systems Development Life Cycle (SDLC)
4. Development, Coding
53
Implementing SDLC

• Structured Approaches
• Waterfall Method

54
Implementing SDLC

• Rapid Application Development (RAD) Approaches
• Prototyping
• Develop a small test system in a short time and
  improve it.
• Spiral Development
• The project is broken into mini-projects each
  addressing one or more risks until all risks are
  addressed
• Extreme Programming (XP)
• The system is transferred to the users in a
  series of releases. Each release is a working
  system that only includes one or several
  functions.

55
The PLC vs the SDLC
56
PLC vs. SDLC

• PLC focuses on the processes of managing a
  project
• SDKC focuses on creating and implementing a
  product the information system
• SDLC is part of PLC most of SDLC activities
  occur during the execution phase of PLC.

57
Enterprise System Implementation Phases
1. Initiation
2. Planning
5. Transition

• Analysis
• process design

• Realization
• (Fulfill ERP)

58
What is PMBOK

• The Project management body of Knowledge (PMBOK)
• A document providing a basis for identifying and
  describing the generally accepted principles and
  practices of project management
• Originally published in 1987
• Available from Project Management Institute (PMI)

59
Project Management Framework
60
Project Management Knowledge Areas

1. Project integration management
2. Project scope management
3. Project time management
4. Project cost management
5. Project quality management

61
Project Management Knowledge Areas

1. Project human resource management
2. Project communication management
3. Project risk management
4. Project procurement management

62
Sample Gantt Chart
The WBS is on the left, and each tasks start and
finish date are shown on the right using a
calendar timescale. Early Gantt Charts, first
used in 1917, were drawn by hand.
63
Sample Network Diagram
Each box is a project task from the WBS. Arrows
show dependencies between tasks. The bolded tasks
are on the critical path. If any tasks on
the critical path take longer than planned, the
whole project will slip unless something is
done. Network diagrams were first used in 1958
on the Navy Polaris project, before project
management software was available.
64
The Project Management Profession

• The job of IT Project Manager is in the list of
  the top ten most in demand IT skills
• Professional societies like the Project
  Management Institute (PMI) have grown
  tremendously
• Project management research and certification
  programs continue to grow

65
Top Ten Most in Demand IT Skills
66
Project Management Knowledge Continues to Grow
and Mature

• PMI hosted their first research conference in
  June 2000 in Paris, France, and the second one in
  Seattle in July 2002
• The PMBOK Guide 2000 is an ANSI standard
• PMIs certification department earned ISO 9000
  certification
• Hundreds of new books, articles, and
  presentations related to project management have
  been written in recent years

67
Project Management Certification

• PMI provides certification as a Project
  Management Professional (PMP)
• A PMP has documented sufficient project
  experience, agreed to follow a code of ethics,
  and passed the PMP exam
• The number of people earning PMP certification is
  increasing quickly
• PMI and other organizations are offering new
  certification programs (see Appendix B)

68
Growth in PMP Certification, 1993-2002
69
Software outsourcing

• Supplemental material

70
Offshore Software Outsourcing

• In next few years, about 2 million IT jobs will
  shift to foreign countries because of
  outsourcing, e.g. to India.
• Companies have to do so because of the tough
  surviving environment.
• This is the trend of globalization as the
  economies in different countries are more
  dependent of each other.
• While Indias position is reasonably secure,
  there is no room for being complacent. Several
  upcoming destinationsArgentina, the Czech
  Republic and China in particular. India scores
  over China in employee costs, primarily due to
  that country importing project managers from Hong
  Kong and Australia. East Europe is home to
  top-notch engineering talent it is quite likely
  that high-end engineering work will flow there.

71
Software Industry in Developing Countries

• Many developing countries have adopted the
  development of Software Industry as a long-term
  strategy for economy growth
• As software outsourcing is a global trend for
  developed countries, there are good opportunities
  for developing countries to speed up their
  software industry development
• The suggested two-stage development strategy for
  the software industry in developing countries
• Focus on the domestic market first
• Go to global market once the software companies
  are competitive enough
• Current two patterns of software industries
  reflect the two-stage development strategy
• International market oriented normally
  providing outsourcing market for the developed
  countries, which is the pattern for those early
  birds, e.g. India,
• Domestic market oriented for latecomers, e.g.
  China

72
The Pattern of Export-Oriented India

• Comparatively, in 2002-2003, the software
  industry in India was worth US 12 billion, of
  which software export was 9.5 billion with a
  growth rate of 25.3.
• The software industry is expected to account for
  something like 20 of Indias exports for
  2002-03. (http//www.expresscomputeronline.com/200
  30331/softserv.shtml).
• Heeks (1996) indicated that if the software
  exports grows rapidly, the growth of the domestic
  market is prevented.

73
The Pattern of Domestic Market Oriented China

• In the past 10 years Chinas software industry
  revenue has been growing at an annual rate
  between 20-40. The revenue of software industry
  in 2002 reached US13.3 billion, a 46.5 increase
  from 2001.
• In the last three years its software export
  almost doubled every year. However, Chinas
  software market is domestic-oriented - nearly 90
  software products were sold domestically.
• In 2002, Chinas application software accounted
  for 64.5 of the total domestic software
  products.
• Foreign software and system integration still
  account for 95.3 of the upper software market

74
India Pattern vs. China Pattern

• Comparison of software revenue in 2002
• India 12.5 billion, with 9.5 billion from the
  export
• China 13.3 billion, with 1.5 billion from the
  export
• Indias case is a successful example, while
  Chinas case is more representative for the
  developing countries just started their software
  industry.
• Heeks (1999) outlines some generic approaches to
  a developing countrys software industry
  development. Two dimensions, the target market
  served (Domestic vs. Export) and the types of
  business intended (Service vs. Packages), are
  used in analyzing the strategic positioning for a
  developing country.

75
Potentials of Indias software industry

• Several markets that could result in large
  opportunities for Indian.
• Product Data Management (PDM) is one such area,
  covering applications that manage product data
  and product development workflow. The global
  market for PDM is projected to grow to 11
  billion by 2006, according to CIMData.
  Automotive, electronics and telecom, aerospace,
  machinery and process industries are major users
  of PDM.
• Content management is another growth area with
  the thrust being on delivering digital content
  across multiple channels. This market is
  projected to be worth 27 billion by 2006.
  Services account for roughly 90 percent of this
  market.
• Enterprise Application integration (EAI) is a
  potential gold mine for Indian software houses.
  It is projected to be a 43.4 billion market by
  2005 services account for 73 percent of this
  market. Business Intelligence and data
  warehousing will together account for a 29
  billion market by 2005.
• The market for wireless and mobile infrastructure
  consulting, integration and management services
  will be worth 37.4 billion by 2006.
• Straight-through processing (STP) is the complete
  automation of stock trading from order entry to
  final settlement. The global market for STP is
  expected to touch 6.3 billion by 2004. India can
  offer customised application development,
  maintenance and support, consulting and
  transaction processing outsourcing in this
  segment.

76
References in offshore outsourcing

• http//news.com.com/2030-1011-5130813.html
• http//www.expresscomputeronline.com/20030331/soft
  serv.shtml
• Heeks, Richard, Software strategies in
  developing countries, Development Informatics
  working paper series, 1999.
• Li, M., and M. Gao, Strategies for Developing
  Chinas Software Industry, Information
  Technology and International Development (2003).

77

• SW Good Process VS. ??????????????????????????????
  ?? CMM VS. AGILE Process VS. IPR
• ????????? (Software SW ?)
• http//en.wikipedia.org/wiki/List_of_programming_l
  anguages
• ?????????????????????????????????
• ?????????????????

78
Project Framework
79
Information Rules Strategic Guide to the
Network Economy

• By
• Carl Shapiro and Hal R. Varian

80
The Information Economy

• Economy
• All the activities involved in the
  production and distribution of goods and
  services.

Information Economy It is an economy based
on the exchange of knowledge information and
services rather than physical goods and
services.
81
The Information Economy (2)
Information Any Essentially,
anything that can be digitizedencoded as
a stream of bitsis information. E.g. baseball
scores, books, databases, magazines, movies,
music and Web pages are all information goods.
The book focuses on the value of information to
different consumers.

Cost of Producing Information Information is
costly to produce but cheap to reproduce.
82
Theme of the Book

• 3 Strategies for Information Economy
• Differentiation of Product and Services.
• Lock In.
• 3) Positive feedback.

83
Differentiation of Products and Services

• Strategies used
• a) Mass Customization
• b) Differential Pricing
• c) Personalized Content
• d) Versioning

e.g.
84
How to design your "product line"?

• Offer Versions
• Dimensions Delay, User Interfaces ,Image
  Resolution, Speed of Operation,
  Format, Capability, Features,
  comprehensiveness, support
• 2) Principle of self-selection
• Design these versions to accentuate the
  needs of different groups of customers.

85
Lock In Cycle
86
Lock In

• How do Buyers Recognize that they are in Lock In?

• Contractual Commitments
• Durable purchases
• Brand specific Training
• Information and Databases e.g. CD and DVD
• Specialized suppliers.
• Search costs. e.g. Travel Agent, Insurance Agent
  etc.
• Loyalty Programs

87
Managing Lock- In for Buyers

• How to avoid Lock-In?
• Bargain for initial sweeteners, such as discounts
  or support for switching from your previous
  system.
• Don't be too anxious.
• Depict yourself as an attractive customer down
  the road
• Seek protection from monopolistic exploitation
• Keep your options open via second sourcing
• Watch out for creeping lock-in, and retain
  information about usage records.

88
Managing Lock-In for Sellers

• Be prepared to invest to build an installed base
  through promotions and by offering up-front
  discounts.
• Cultivate influential buyers and buyers with high
  switching costs.
• Design your products and your pricing to get your
  customers to invest in your technology, thereby
  raising their own switching costs.
• Maximize the value of your installed base by
  selling your customers complementary products and
  by selling access to your installed base.

89
Positive Feedback

• Positive feedback makes the strong grow
  stronger . . . and the weak grow weaker.

90
Positive Feedback (cont.)

• How it Helps?
• 1) Adoption dynamics in the presence of positive
  feedback tend to follow a predictable pattern.
  e.g. NES
• 2) Consumers value information technologies that
  are widely used, just as they value
  communications networks with broad reach.
• 3) Positive feedback works to the advantage of
  large networks and against small networks.

91
Positive Feedback (cont.)

• Generic strategies for innovators in network
  markets

Openness
Control
Compatibility
Controlled Migration e.g. Win 98 and Intel PII
Open Migration e.g. Modems
Performance Play e.g. Nintendo Entertainment
System
Discontinuitye.g. CD Audio and Floppy Drive
Performance
92
Information Policy

• Don't expect the government's role to diminish.
• Every company needs to know the rules of
  competition.
• Companies have considerable freedom to engage in
  differential pricing.
• Competition policy is intended to ensure a fair
  fight, not to punish winners or protect losers.

93
Information Policy

• Don't be afraid of cooperating with other
  companies to set standards and develop new
  technologies, so long as your efforts are
  designed to bring benefits to consumers.
• If you are fortunate enough to gain a leading
  share of the market, be sure to conduct an audit
  of your practices.

94
Battle of the Browsers
Microsoft
Netscape

• Microsoft came with IE in 1998 and marketed
  through OEM, ISP etc.
• Made IE free online and making it Default
  Browser.
• Investing heavily on User Interface

• Head start with Navigator in 1995, most companies
  had already installed their software
• Made browser available free of charge, pioneered
  the idea of Plug-Ins ( third party software )
• Earns revenue through its other products e.g.
  Netscape Web site

Preemption
Penetration Pricing
95
Battle of the Browsers (cont.)
Netscape
Microsoft

• Integrating IE in Windows OS and making user
  believe that they do not have a need to install a
  new browser.
• Microsoft as stated earlier has already
  developed alliances with OEM,ISP and Content
  Providers by providing Financial Schemes

• Expectation mgmt
• Netscape has partnered with 100 industrial
  companies in order to bundle their product
• Netscape and Sun Microsystems are strong allies,
  with Netscape supporting Sun's Java and Sun
  helping lend credibility to Netscape

Alliances
96
Critique

• The definition of Information on which the book
  focuses is very broad according to author.
• Authors fail to mention about the importance of
  Sales and Marketing in an economy .
• Third party role in Information Economy is not
  taken into consideration.
• An economy is not complete until its unit of
  transactions are defined. The author fail to
  define how to estimate the value of a product
  which is available in bits form.