Information Technology (IT) in general, and the Internet in particular, is transforming firms, markets, products and processes with remarkable speed. This course introduces some of the fundamentals of IT and then explores the specific area of electronic markets. It covers the basic principles of dynamic pricing and revenue management, aggregated markets and auction (or electronic) marketplaces and explores their impact on tactical decisions as well as a firm’s strategy, execution and profitability.
In more detail, the topics covered in this course include the following:
- Information Technology: Overview of information and communication technologies (Internet, security, databases, ERP, ASP); study of organizational architectures and the impact of IT on organizational design
- Dynamic pricing: Overview of revenue management; customer segmentation; dynamic pricing and demand management. Examples include pricing of constrained capacity (airlines), dynamic pricing and markdown management (retail, automotive) and customized bid pricing (transportation).
- E-marketplaces: Overview of different markets from the buyer, seller and intermediary perspective; aggregated markets — pooling and competition; basic elements of auction theory; C2C, B2C marketplaces (eBay, Priceline); auction markets; and reverse auctions (Freemarkets)
The course uses a mixture of cases, lectures and industry speakers to introduce a blend of technical and managerial content together with an overview of current industry practices in the associated topics. A central goal of the course is to expose the class to the set of tools and principles used in these contexts and to illustrate their use in both tactical and strategic decisions.