SEEM4540 Open Systems for E-Commerce - Lecture 01

 
CONTINUE READING
SEEM4540 Open Systems for E-Commerce - Lecture 01
SEEM4540
Open Systems for
E-Commerce
Lecture 01 – Introduction
SEEM4540 Open Systems for E-Commerce - Lecture 01
What is “Open Systems”?

       It was very popular in the early 1980s to describe systems
       based on Unix, in contrast to the mainframes and
       minicomputers (most are developed by IBM and HP).
               In the old days, computer systems are dominated by some big
               names such as IBM and HP. How the hardware/software
               communicate is completely secretly.
               Even you can develop hardware compatible for these computer
               systems, you may not have the right to sell!
               Unix systems featured standardized programming interfaces and
               peripheral interconnects; third party development of hardware
               and software was encouraged — significant departure from the
               norm of the time!

Copyright (c) 2019. Gabriel Fung. All rights reserved.
SEEM4540 Open Systems for E-Commerce - Lecture 01
What is “Open Systems”? (cont’d)

       Although today we have a very high degree of both hardware
       and software interoperability, before 1990 this is not the case.

       The open systems concept is by Unix vendors as a significant
       differentiator.

       IBM and other big companies resisted such idea for decades
       until very late 1990 – early 2000.
               IBM and HP begin marketing some of their products as “open
               systems” and then “open source” (e.g. Linux Mainframe)
               Sun Mircosystems promoted OpenSolaris (an operating system)
               in 2005 (based on the closed-source Solaris) and OpenOffice in
               2000 (based on the closed-source StarOffice)

Copyright (c) 2019. Gabriel Fung. All rights reserved.
SEEM4540 Open Systems for E-Commerce - Lecture 01
What is “Open Systems”? (cont’d)

       Some “sample news” in the old days:
               https://books.google.com.hk/books?id=soGti0kvtgwC&pg=PA7
               &lpg=PA7&dq=Hitachi+IBM+lawsuit&source=bl&ots=6VokVq
               UnXX&sig=6s4rHnGlK3IQZaX_ypaRrgu1xfg&hl=en&sa=X&v
               ed=0ahUKEwjjro6XyJnKAhUD5qYKHTCTBD8Q6AEIMDAG
               #v=onepage&q=Hitachi%20IBM%20lawsuit&f=false
               http://www.nytimes.com/1986/11/12/business/ibm-and-
               hitachi-in-new-accord.html

       So you may consider “open systems” is a dated term, and
       “open source” is more popular.

Copyright (c) 2019. Gabriel Fung. All rights reserved.
More About Open Systems

       It is interesting to see that the computer giant IBM (which
       originally rejected the idea of open systems), switches to Apple
       Macs from Windows PCs:
               http://www.cio.com/article/3001871/macbook/switch-to-macs-
               from-pcs-reportedly-saves-ibm-270-per-user.html
               Switching is expected to save USD$270 per user in IBM
               Mac OSX is based on BSD (Berkeley Software Distribution – a
               Unix like operating system)

Copyright (c) 2019. Gabriel Fung. All rights reserved.
Formal Definition of “Open Systems”

       Open systems are computer systems that provide the
       combination of interoperability, portability, and open standards.

       Interoperability
               A product or system whose interfaces are completely understood
               and able to work with other products or systems without any
               restriction of access.

       Portability
               The usability of the same software in different environments.

       Open standard:
               A standard that is publicly available.

Copyright (c) 2019. Gabriel Fung. All rights reserved.
Open Systems vs. Open Source

       Open Source
               A term that looks similar to open systems but in fact very
               different from it.
               In computing, open source usually means open source software
               (OSS).
               It usually means the source code of the software is available to
               the public in which the copyright holder provides the rights to
               study, change and distribute the software to anyone and for any
               purpose.
                     Source code available to the general public with relaxed or non-
                     existent copyright restrictions.

Copyright (c) 2019. Gabriel Fung. All rights reserved.
Open Systems vs. Open Source (cont’d)

       Open source is Formally defined by Open Source Initiative,
       which is formed by Eric Raymond and Bruce Perens in 1998.

       In fact, in 1997, Eric Raymond already published “The
       Cathedral and the Bazaar”, a reflective analysis of the hacker
       community and free software principles.

              Cathedral                                  Bazzar
Copyright (c) 2019. Gabriel Fung. All rights reserved.
Cathedral Model vs. Bazaar Model

       Cathedral Model:
               The traditional model of development.
               Development takes place in a centralized way.
                     Roles are clearly defined. Roles include people dedicated to
                     designing (the architects), people responsible for managing the
                     project, and people responsible for implementation.
                     In order to preserve the architectural integrity of a system, the
                     system design should be done by as few architects as possible.

Copyright (c) 2019. Gabriel Fung. All rights reserved.
Cathedral Model vs. Bazaar Model (cont’d)

       Bazaar Model:
               Often used in open source software development.
               Roles are not clearly defined.
               It has the following 6 patterns:
                     Users should be treated as co-developers
                           Users should have access to the source code and are encouraged to
                           submit additions to the software, code fixes, bug reports, etc.
                           Having more co-developers increases the rate at which the software
                           evolves. Linus’s law states, "Given enough eyeballs all bugs are shallow.”
                                 If many users view the source code, they will eventually find all
                                 bugs and suggest how to fix them.
                           Note that each user’s machine provides an additional testing
                           environment. This new testing environment offers that ability to find
                           and fix a new bug.

Copyright (c) 2019. Gabriel Fung. All rights reserved.
Cathedral Model vs. Bazaar Model (cont’d)
                     Early releases
                           The first version of the software should be released as early as possible
                           so as to increase one;s chances of finding co-developers early.
                     Frequent integration
                           Code changes should be integrated (merged into a shared code base) as
                           often as possible so as to avoid the overhead of fixing a large number of
                           bugs at the end of the project life cycle.
                           Some open source projects have nightly builds where integration is
                           done automatically on a daily basis.
                     Several versions
                           At least two versions of the software.
                               A buggier version with more features and a stable version with
                               fewer features.
                               The buggy version (also called the development version) is for users
                               who want the immediate use of the latest features, and are willing
                               to accept the risk of using code.

Copyright (c) 2019. Gabriel Fung. All rights reserved.
Cathedral Model vs. Bazaar Model (cont’d)
                     High modularization
                           The general structure of the software should be modular allowing for
                           parallel development on independent components.
                     Dynamic decision making structure
                           There is a need for a decision making structure, whether formal or
                           informal, that makes strategic decisions depending on changing user
                           requirements and other factors.

Copyright (c) 2019. Gabriel Fung. All rights reserved.
An Open Source Impact

       The Cathedral Model and The Bazaar Model model receive
       significant attention in early 1998

       It was one of the most important factors that motivates
       Netscape Communications Corporation to release their
       popular Netscape Communicator Internet suite as free software.

       This source code subsequently became the basis behind
       Mozilla Firefox, Thunderbird, SeaMonkey, etc.

Copyright (c) 2019. Gabriel Fung. All rights reserved.
Unfortunately…

       Unfortunately, before 2000s, not all people appreciated open
       source (just like not all people appreciated open systems)

       A Microsoft executive publicly stated in 2001 that:
               "open source is an intellectual property destroyer. I can't imagine
               something that could be worse than this for the software business and
               the intellectual-property business.”
               http://www.cnet.com/news/microsoft-raps-open-source-
               approach/

       Note: open systems and open source begin to be adopted by
       some big companies from late 1990s to early 2000s.

Copyright (c) 2019. Gabriel Fung. All rights reserved.
Luckily…

       Luckily, even the concept of open source has historically
       played a role outside of the mainstream of software
       development, companies as large as Microsoft, IBM, Oracle
       and Google are just some of the few the companies with a
       serious public stake in today’s competitive open-source market.

       There has been a significant shift in the corporate philosophy
       concerning the development of free and open-source software

Copyright (c) 2019. Gabriel Fung. All rights reserved.
Why Open Source is Good?

       The open-source model generates an increasingly more diverse
       scope of design perspective than any one company is capable of
       developing and sustaining long term.

       A report by the Standish Group (from 2008) states that
       adoption of open-source software models has resulted in
       savings of about $60 billion per year to consumers.
               http://www.freesoftwaremagazine.com/articles/creating_wealth
               _free_software

Copyright (c) 2019. Gabriel Fung. All rights reserved.
Some Note About Open Source

       Open source means the source of the software is open but this
       does not automatically mean the software itself is free of
       charge (although most example is…)

Copyright (c) 2019. Gabriel Fung. All rights reserved.
Sustainability

       Unlike proprietary software, which comes with restrictive
       copyright licenses, open source software can be given away for
       no charge.
               Its creators may not be able to ask each user to pay a license fee
               to fund development.

       A common question against open source is sustainability.
       Common funding model:
               Software can be developed as a consulting project for one or
               more customers. The customers pay to direct the developers’
               efforts: bug-fix prioritize, features added, ...
               Charge for training, installation, technical support,
               customization, advanced feature, …

Copyright (c) 2019. Gabriel Fung. All rights reserved.
Funding (cont’d)
               A company’s own developers work on open-source projects that
               are useful to the company's infrastructure.
               The open source project itself is free of charge, but repackaging
               the project as a commercial product require payment to the
               original authors.

Copyright (c) 2019. Gabriel Fung. All rights reserved.
Kumamon and Kumamato – Reverse Thinking

       If you still puzzle about how open source can raise fund, then
       let us talk about Kumamon and Kumamato.

       Kumamon (熊本熊) is a mascot created by the government of
       Kumamoto Prefecture (熊本縣).

Copyright (c) 2019. Gabriel Fung. All rights reserved.
Kumamon

       The name “Kumamon” is generated by the combination of
       kuma (熊, bear), the first word in Kumamoto, and mon, a
       variant of mono (物, thing)
               He is the Head of Sales Department (營業部長) (Very senior
               position!!!)
               https://www.facebook.com/kumamotodiary.en/

Copyright (c) 2019. Gabriel Fung. All rights reserved.
Risk & Challenge

       He was first created in 2010 for a campaign to draw tourists to
       the region after the Kyushu Shinkansen (新幹線) opened.
               Note: Kyushe Shinkansen will NOT stop at Kumamoto
               The governor of Kumamoto afraid that Kyushe Shinkansen will
               drive away visitors (i.e. less visitors to Kumamoto)

Copyright (c) 2019. Gabriel Fung. All rights reserved.
Solution & Opportunity

       The governor of Kumamoto Prefecture, Ikuo Kabashima (蒲島
       郁夫) then try to use a mascot to promote Kumamoto.

Copyright (c) 2019. Gabriel Fung. All rights reserved.
The Success of Kumamon

       Huge amount of products related to Kumamon.

       But almost all products are NOT made by Kumamoto
       Government!

       In fact, everyone can use Kumamon with the condition (in
       short) that your product has to be related to Kumamoto.
             In contrast, if you use Disneyland characters, you have to pay license
             fee.

       The Bank of Japan estimates that from 2012 to 2014,
       Kumamon has been promoting Kumamoto that he has
       generated ¥123.2 billion in revenue.

Copyright (c) 2019. Gabriel Fung. All rights reserved.
Some Interesting Stuff

       Promotion strategy:
               Despite of Kumamon is created for promoting Kumamoto, it
               first appeared in Osaka (大阪) and promotes Osaka!
                     Can you think about why?

       An interesting event:
               https://www.youtube.com/watch?v=ECWPnUyCefw&feature=y
               outu.be
               http://beauty.ulifestyle.com.hk/m/hk/news/girlstalk/AD4RYh
               EgA3A.html
               https://www.youtube.com/watch?v=GZ2eegZuZm8

Copyright (c) 2019. Gabriel Fung. All rights reserved.
Minolta – Reverse Thinking

       Another example:
               The 135mm STF Lens of Sony (or Minolta)

       A modern high class lens should be able to produce “prefect blur
       effect” (known as bokeh). Having auto-focus is also a norm.

       Technically, larger aperture will produce a better bokeh. So most
       designers focus on creating large aperture lens.

Copyright (c) 2019. Gabriel Fung. All rights reserved.
Minolta – Reverse Thinking (cont’d)

       The 135mm STF lens is “manul focus” and “small aperture”

       Yet, it is one of the best lens. Even Sony acquired Minolta in
       2006, Sony continues to manufacture it even now.

       The lens designers from Minolta realized one issue:
               Photographers are interested in producing the best boken, NOT
               parameters of the lens (i.e. value of the aperture).
               The only draw back is to sacrifice auto focus.

Copyright (c) 2019. Gabriel Fung. All rights reserved.
Open Source and Open API
       When we talk open source, we should not forget open API
       API (Application Programming Interfaces)
               API describe how software talk to each other.
                     It let others easily integrate your code into an existing system.

       Try to understand: Closed API vs. Open API.
               Open API examples:
                     https://developers.facebook.com/
                     https://code.google.com/
                     …
               In most cases, the success of an open API depends on its ability
               to attract external developers and help them create truly
               valuable new apps that people actually want to use.

Copyright (c) 2019. Gabriel Fung. All rights reserved.
Open API Challenges

       Opening an interface to external developers can significantly
       add to the management and security challenges associated with
       publishing APIs.
               It can be very challenging to ensure that interface updates do
               not break application functionality.
               Publishing an open API theoretically mean that any developer
               can access exposed backend systems, it also risks bringing the
               existence of that exposure to the attention of hackers.

Copyright (c) 2019. Gabriel Fung. All rights reserved.
Open API Opportunities

       Increasing Revenue
               This may involve charging developers for access to the API,
               facilitating the in-house creation of pay-to-play applications or
               enabling ecommerce. A key consideration here is that the API
               must offer something worth paying for.

       Extending Customer Reach & Value
               APIs provide the ideal solution for enterprises that wish to reach
               new customers or increase the value of current customers by
               offering existing services via new platforms and devices.

Copyright (c) 2019. Gabriel Fung. All rights reserved.
Open API Opportunities (cont’d)

       Stimulating Business & Technical Innovation
               APIs can help an organization develop new systems, offerings
               and strategies from the inside because they reduce technical
               barriers to innovation.

Copyright (c) 2019. Gabriel Fung. All rights reserved.
E-Commerce vs. E-Business

       What is E-commerce?

       What is E-Business?

Copyright (c) 2019. Gabriel Fung. All rights reserved.
References
       http://apievangelist.com/

       http://www.apiacademy.co/lessons/api-strategy/private-apis-vs-open-apis

       http://mw2013.museumsandtheweb.com/paper/open-systems-loosely-
       coupled-creating-an-integrated-museum-ecommerce-system-for-the-mca/

       http://opensource.com/

       https://www.princeton.edu/~achaney/tmve/wiki100k/docs/Linus_s_Law.
       html

       http://kumamon-official.jp/

       https://www.facebook.com/kumamonofficial

       https://www.facebook.com/kumamotodiary.en

Copyright (c) 2019. Gabriel Fung. All rights reserved.
You can also read