Management of Technology I - Fall 1996
Team Project: Outlines
Implementation of High-speed Train Systems : Ideas and Issues
A high speed train system capable of transporting people and goods between major metropolitan areas has been a dream of railway engineers since the early 1960's. The benefits of high-speed train are to relieve ground and air traffic congestion, to reduce fuel consumption, to minimize pollution, and to reduce the transportation related risks. Several attempt have been made all over the world to develop such a system. Numerous government and private organizations have been at work on this project all over the world, but currently Germany, France, and Japan are the three technological leaders. The focus of our project is to evaluate the technologies developed by these three countries and to assess the economic feasibility of implementing this technology. During the course of our project we will look into the economic, political, social and environmental ramifications of the implementation of this technology. We will also attempt to compare the Japanese Superconducting Maglev, French TGV and German high speed train technologies. Finally, some light will be shed on the future of the high speed train technology in the United States. Following is a brief review of the development and implementation of high speed train technologies in Germany, France and Japan. In the end the policy-making issues relevant to the implementation of this technology are presented.
I. German High-speed Train Technologies: German engineers have developed two different high-speed railway systems: The ICE (Intercity Express), a conventional steel wheel train and The Transrapid, a high-speed train based on the magnetic levitation concept.
The electrically powered ICE trains go at speeds of up to 180 mph and have already been introduced to the German market. The first line went into service between Hamburg and Munich in the summer of 1991. Today, the German government owned railway company, DBAG, operates 60 ICE trains on three lines that interconnect major German and Swiss cities. The initial investment in the trains was $1 billion, which is just part of a larger $5 billion government backed program to improve its railroad system. This widely introduced ICE-1 version has a capacity for approximately 640 passengers. Currently, a new ICE generation is in development. The ICE 2/2 will have a regular top speed of 200 mph. 50 trains have already been ordered by the DBAG. Additional six ICE 2/2 trains have been ordered by the Dutch railway company. Germany's show-case technological project, the Transrapid levitation train, will soon have to face the cold blast of competition from abroad. However, in the opinion of experts attending the International Conference on Magnetic Levitation Systems in Bremen, Transrapid is still leading the field. German maglev, under the management of Transrapid International, has been tested at speeds of 290 mph and seats 80 to 100 passengers per section. As of mid-1991, more than 62,000 miles of testing had been conducted on a 19.5 mile track in Emsland. Transrapid, which has received more than $1 billion in government support, includes three private companies: Siemens, Thyssen, and Adtranz (part of the Daimler-Benz holding). Despite being surrounded by controversy in Germany, Transrapid eventually succeeded in getting the green light after many years of protracted and exhaustive public debate. The system is now scheduled to go into operation on the 180-mile Hamburg-Berlin route, conveying commuters at 10-minute intervals in less than one hour from center to center. The first of its kind throughout the world, deploying magnetic levitation trains capable of attaining speeds of up to 250 mph, the service will have to attract at least 12.2 million passengers annually to be commercially viable. The first section of track is due to be opened in 1998, with the intercity service going into operation in 2005. Eventually, the German government hopes to eliminate all domestic flights and transfer passengers to more efficient trains. Experts are confident that Transrapid may succeed in bridging the "speed gap" between air and rail, and provide a real alternative to short domestic flights in the short or medium term. However, according to experts from the Schwerin-based Magnetic Rapid Train Planning Company, it will take at least another 30 years until a complete network joining up all the main German metropolises is finally in place. By that time, it is hoped that the issue of integrating Transrapid with the rail systems of neighboring countries will have been settled. Plans include extending the Hamburg-Berlin line either to Warsaw in Poland or via Dresden to the Czech capital Prague. However, negotiations with the responsible authorities have yet to be commenced. German experts believe that Transrapid has an edge over their foreign competitors, mainly Japan, with its MLU test system, and the USA where maglev is still in the planning stage. Due to intensive testing the Transrapid technology is believed to be at least two years ahead. One reason to built the Berlin-Hamburg line was to make Transrapid more marketable for the international market by showing its feasibility.
II. French Train a Grande Vitesse - TGV: The TGV - Train a Grande Vitesse - was launched in the late 1960's by SNCF, the French National Railways and a French private firm, GEC-Alsthom.. The idea was to develop a high-speed rail system that was compatible with the existing railroad infrastructure, especially the tracks and the stations in the heart of the cities. Nevertheless new tracks have to be used to run the trains at maximum speed. After a first prototype train that demonstrated the feasibility of the project, the first revenue service was inaugurated in 1981 on a new line between Paris and Lyon, running at an average speed of 270 km/h (168 mph). It was an immediate commercial success. Since then, new TVGs have been built, and improvements made with each generation (one of them set the World Speed Record for a Train in 1990 with 515.3 km/h (320.3 mph). The TGV network now irrigates cities in the South-Eastern, South-Western, Western and Northern regions of France from Paris, as well as Brussels (Belgium) and London (UK). The future expanded TGV lines will serve cities in the Eastern regions of France, Amsterdam (the Netherlands), Koln (Germany) and Milan (Italy). The TGV technology, a combination of not only trainsets but also tracks and signaling equipment, can be summarized by: lightweight train powered with electricity, special aerodynamics and brakes, exclusive cab signaling, passive safety features (no casualties in 14 years of daily operations at speeds up to 300 km/h (186 mph)), large curve radii and superelevations of the tracks. This specific technology is also a commercial success outside the French borders. It has been adopted in Spain, for the Channel Tunnel, and will be developed in South Korean, and in the United States (Florida, East Corridor between Boston and Washington, DC).
III. Japanese Maglev Technology: Maglev is a system of superconducting magnets and linear motor technology used in high speed trains to provide faster, safer, reliable, and low maintenance means of mass transportation with a very low environmental impact. In this section we will discuss the Maglev technology with reference to its development and implementation in Japan. The Railway Transportation Research Institute (RTRI) of Japan has been working on the superconducting magnet based technology since 1970. After conducting fundamental research on the feasibility on high speed running, the RTRI successfully conducted a full scale field test on a 7-km track in 1987. The manned two car vehicle (MLU001) achieved a speed of 400 km/h. In order to reach a high speed it is important to eliminate the wheel and rail friction. This is achieved by levitating the maglev vehicle few centimeters above the ground by using the principles of electromagnetics. Magnetic forces, generated in the coils installed on the sidewalls of the guideway by the fast moving superconducting magnets (which is installed in the maglev vehicle), help levitate the vehicle. The coils are configured in a manner that they provide lateral guidance to the vehicle also. In order to propel the vehicle, propelling coils installed on the sidewalls of the guideway energized by three-phase current are used. The technology is still developing. One of the main objectives of the RTRI is to enhance the durability and reliability of the superconducting magnet. Work is also under way to develop aerodynamic brakes and ground coils (to replace the sidewall levitation coils and the propulsion coils). The Maglev high-speed train project gained the status of a nationally-funded project in 1990. A new test line is under construction in Japan under the direct supervision of the Ministry of Transport. The aim of this project is to evaluate the feasibility of Maglev for practical use. The keen interest of Japanese government in the research and development of high speed train system sheds some light on the promising future of this technology.
IV. Policy-making Issues: The increasing congestion on highways and on intercity air routes requires the implementation of innovative and efficient solutions such as IVHS and high speed train systems. It is the responsibility of governments to invest and to assist in the development and implementation of such solutions. High-speed train systems are now at a stage where some government incentive and policy initiative will greatly expedite its commercial implementation. The high initial cost of high-speed train systems as well as resistance from competing technology (such as airlines, oil and motor vehicles industries) lobbyists are the major obstacles in its implementation. It is necessary that the governments provide financial guarantees to industries and investors pioneering in the implementation of this technology. It is anticipated that apart from financial issues problems will also arise in the land acquisition, construction, project integration and environmental planning. Government intervention will also be necessary to ensure uniform and safe operation, and to enforce pricing guidelines. Not only the federal government but local and state government bodies will have to take keen interest in order to integrate the high-speed trains with ground and air transport and to maximize the benefits of such a system. In some regions where strong railway infrastructure already exists, it might be better to incrementally improve upon the existing systems. Since the financing will involve massive public sector funding the government will have to be accountable to the taxpayers and must be ready to defend this huge investment in high technology. It is obvious that the implementation of high-speed trains is no easy or short-term task it involves continuous effort on the part of government as well as private sector and may even be painful at times but the long-term benefits of high-speed trains are too pervasive and too numerous to ignore this splendid technology.
Team Members: Noel "Bo" Brantley ChE, PhD bobo@charisma.chemse.gatech.edu Rodolphe De Tinguy MSM gt7400a@prism.gatech.edu Eric Roberts EE, MS gt2681a@prism.gatech.edu * Larry Stewart ISYE, MS ls72@prism.gatech.edu
* Indicates Primary Team Contact
Description of Topic:
The Internet is a global network connecting many smaller networks such as those found in business and universities. The Internet allows a connected computer to access public information on other connected servers around the world. The Internet is also used for such functions as electronic mail, newsgroups, World Wide Web, chat rooms, etc.
The Internet started as simply a set of communications protocols used in connecting computers to a network and in connecting networks to each other. This protocol , TCP/IP, was the result of work started by the U. S. Department of Defense in 1969. The ease of use of the Internet took a large step forward with the creation of the World Wide Web (WWW) in 1992. The WWW’s popularity took off in 1993 with the development of Mosaic, a graphical user interface that was easy to learn, powerful, and relatively consistent across the PC, Macintosh, and workstation architectures. In July of 1994, there were an estimated 10 million users accessing the Internet from 20,000 unique networks. The growth of the Internet is tremendous: a near doubling in subscribers is reported each year.
With the large and increasing number of people using the Internet, its potential for use for electronic commerce increases. Electronic commerce consists of the use of the Internet for any exchange of goods where the Internet is the primary facilitator of the transaction. This consists of banking, shopping at an on-line mall, and ordering goods with your credit card over the Internet. The success of the Internet for electronic commerce for private individuals depends on many external factors. These include availability and cost of service, security, user-friendliness of business sites, advances in computing and communications technologies, and governmental regulation in a global marketplace. The implications of this commerce can and will be colossal. This team project is to evaluate these external factors affecting electronic commerce for the individual.
Addressing the Topic:
A literature review will be performed to start this project. Some literature on the topic of electronic commerce over the Internet has already been located and is listed at the end of this outline. Since this is a new technology, most of the literature on it has been published within the past decade. Current magazines and journals must be searched for the current status of this technology and its propensity to change gears almost monthly. Individuals and companies involved in electronic commerce will be interviewed and surveyed for information about this topic.
The topic of electronic commerce on the Internet will be addressed in the following manner:
· First, a description of the Internet and its accompanying technologies will be given. This will include some of the history of the Internet and how it works.
· Second, the external factors affecting the success of electronic commerce on the Internet will be examined. For example, widespread availability of the Internet to the general public will depend on internet providers and equipment manufacturers. Internet providers must be able to provide widespread fast service at a reasonable cost. Equipment manufactures must make the hardware required to access the Internet easy to use and available at low cost. Computers are primarily used today for access to the Internet. The cost of computers and the skills necessary to successfully operate them are prohibitive for many potential electronic commerce users.
· Third, the potential for success of electronic commerce on the internet will be examined from each of the following viewpoints: the consumer, businesses, and government. Individuals require low cost, easy to use, and security of information such as credit card numbers. Social factors, such as how useful certain industries will be upon a full implementation of electronic commerce in the next millennium, will be discussed. Businesses offering electronic commerce to individuals must reach large numbers of people and create easily navigable web sites that offer advantages over catalogue or in person shopping. Government must regulate the Internet in a way as to not restrict the freedom of information unique to the Internet and does not interfere with the global standards of the Internet. The regulations should be aimed at controlling fraud and security breeches among electronic commerce users.
· Finally, a case study will be performed in order to examine how the factors previously discussed actually apply to a real electronic commerce situation. The Internet will be explored until a reasonable electronic commerce site is found. This site will be examined and information about how this site deals with many of the external factors will be given. Suggestions for making this electronic commerce site successful will be made from each of the viewpoints of a consumer, the business itself, and the government.
Literature References and Other Resources:
Books:
Lynch, D. C., and Lundquist, L., Digital Money: The New Era of Internet Commerce. 1996, New York, NY: John Wiley & Sons, Inc.
Cronin, M. J., The Internet Strategy Handbook: Lessons from the New Frontier of Business. 1996, Boston, MA: Harvard Business School Press.
Articles:
Sussman, V., and Pollack, K., Gold Rush in Cyberspace. U.S. News & World Report, November 13, 1995: 72-83.
Rebello, K., Armstrong, L., and Cortes, A., Making Money on the Net. Business Week, September 23, 1996: 104-118.
Bhimani, A., Securing the Commercial Internet. Communications of the ACM, June 1996/Vol. 39. No. 6: 29-35.
O’Reilly, T., Publishing for Models for Internet Commerce. Communications of the ACM, June 1996/Vol. 39. No. 6: 79-86.
Panurach, P., Money in Electronic Commerce: Digital Cash, Electronic Fund Transfer, and Ecash. Communications of the ACM, June 1996/Vol. 39. No. 6: 45-50.
Cortese, A., The Intranet. Business Week, February 26, 1996: 76-84.
Horwitt, E., Intranet Intricacies. Computerworld Client/Server Journal, February 1996: 20-23.
Gow, K., Intranets vs. Notes. Computerworld, February 5, 1996: 76-80.
Bayers, C., The Great Web Wipeout. Time, January 27, 1997: 126-128.
Coy, P., Hof, R. D., and Judge, P. C., Has the Net Finally Reached the Wall?. Business Week, August 26, 1995: 62-66.
Sivor, J. R., Evaluated Receipts and Settlement at Bell Atlantic. Communications of the ACM, June 1996/Vol. 39. No. 6: 24-28.
Spar, D., and Bussgang, J. J., The Net Ruling. Harvard Business Review, May-June 1996: 125-133.
Armstrong, A., and Hagel III, J., The Real Value of On-Line Communities. Harvard Business Review, May-June 1996: 134-141.
Ives, B., and Jarvenpaa, S., Electronic Commerce on the World Wide Web: A Case Study. http://www.cox.smu.edu/mis/cases/webcase/*
Team "C" Members: Taral Patel, EE PhD, gt5438b ----------------- Stephanie Slaughter, EE MS, gt7872b Ken Hamall, ME MS, gt6620c (Primary Contact) Bill Emison, CP MS, gt7572b
Technology Overview: --------------------
Existing card technology in the United States consists primarily of the magnetic stripe technology used in credit cards, bank cards, and the like. Because of bank's heavy investment in magnetic stripe applications and hence the costs and difficulties associated with change, SMART card technology has been slow to gain popularity and acceptance in the United States. However, international interest is growing, as the advantages of SMART cards are becoming increasingly apparent.
Magnetic stripe cards only allow data to be stored on the card and retrieved for commercial applications. Shortcomings of the magnetic stripe include its limited storage capacity, passive security features, and the inability of the card to access a variety of functions and applications regardless of the issuing organization. SMART cards overcome these by providing significantly greater storage, integrated security features, and internal processing because of the on-card microprocessor. Although not common in the US, SMART cards have long been in place in various European consumer markets. The SMART card was developed in France by Roland Moreno in 1974 (and to a lesser extent in Japan by Dr. Kunitaka Arimura). It initially took hold in the French financial industry in 1982 and has since spread throughout Europe for telephone calling, health care information, electronic toll collection, identification purposes, pay TV, vending, etc. Limited US applications have included using SMART cards for tracking agricultural production quotas, and military identification tags for service men and women.
How do they work?? ------------------
SMART Cards use an embedded silicon chip to provide local computing power and data storage, and provide greatly enhanced protection for a wide variety of electronic transactions. Payment authorization terminals (which may be point-of-sale terminals in a retail store, or remote devices like a telephone with a SMART card reader) can interrogate a SMART card to prove it is genuine by sending a random coded challenge, which can only be correctly answered utilizing a secret "key" buried deep inside the on-card microchip. The cardholder is then identified as the legitimate user, by comparing today's widely-used PIN (Personal Identification Number) against reference data stored on the card. All identification data is held in a specially protected area of memory on the chip which cannot be accessed without a code from either the exterior of the card, or the interface of the chip.
Cracking the algorithm is extremely difficult, which renders the system inviolable for all practical purposes, while replicating the card requires access to advanced owner information. Even under duress SMART cards will not disclose personal information to thieves. NCS' face recognition system will make the card's information completely inaccessible to criminals. The face of cardholder is scanned digitally with a solid-state cameras at the time the SMART card is issued, then the digital image is analyzed by a neural network and the results stored on the card. Each time the card is used, a similar camera scans the face of the user and a neural network compares the live data with the stored information. With the neural network software embedded in the on-card chip together with the parametric data on the owner's face, the comparison can take place on the card as part of normal security process. Additionally, this approach eliminates the need for neural network processing to be fitted to all SMART card terminals, allowing this new level of transaction security to be adopted quickly and easily. The face recognition system is being developed by Dr. Martin Lefley, Senior Lecturer in Bournemouth University's Applied Psychology Department, using NeuFrame, NCS' graphical CASE-like framework for manipulating intelligent technologies.
One of the most ambitious SMART card banking programs is China's Golden Card project, a $8.8 billion ($USD) scheme designed to provide that country with a nation-wide information network for credit/debit cards. The effectiveness of SMART cards against fraud, and their potential for implementation of new applications, has been recognized by the major international card companies. Visa, in conjunction with MasterCard and Europay, is laying the foundation for world-wide use of SMART cards technology, and providing the catalyst to accelerate the switch from magnetic stripe technology.
Banks and credit card companies around the world are welcoming the SMART card as a major contribution in the war against fraud and as the key to introducing new services, such as "electronic purses" that replace small change with a form of electronic money. Several governments, including the UK and the US, are introducing SMART cards-based ID cards to enhance security and reduce fraud in social security benefit systems. European private and public health service operators are introducing SMART cards for doctors nurse and patients to cut the paperwork costs of health care. This new technology will provide the missing security link that ensures the rapid acceptance of these innovative SMART card services.
Topic Analysis: ---------------
In analyzing the effects of the external environment on the widespread/international use of SMART cards, it will be necessary to consider the following subjects:
~ Alternative cards - the magnetic stripe card, radio tags, and the digital optical "laser card" - and the benefits/disadvantages associated with each
~ Its wide range of applications in a variety of industries (potential markets)
~ Its development in France/Japan and the reasons for its universal acceptance throughout Europe ~ US resistance to incorporating the technology and the challenge of overtaking/integrating it into the magnetic stripe form
~ International standardization of the technology as well as compliance in financial transactions and security/identification issues
~ Rapid technology turnover in relation to the use of integrated circuits on the card
~ Restructuring and/or demise of business operations and services to accommodate the SMART card
~ Development of new businesses or growth of existing ones in the manufacture and maintenance of SMART cards
~ Consumer acceptance and societal impacts
References: -----------
1. Bright, Roy, "SMART Cards - Principles, Practice, Applications", Ellis Horwood Limited, 1988.
2. Chaum, David, "SMART Card 2000 - Selected Papers from the Second International SMART Card 2000 Conference", North-Holland, 1991.
3. Copeland, Michael S., John R. English and Eric Malstrom, "The Use of SMART Cards for Protective Military Equipment", Georgia Institute of Technology, 1994.
4. Hawkes, P.L., D.W. Davies and W.L. Price, "Integrated Circuit Cards, Tags and Tokens", BSP Professional Books, 1990.
5. Kaplan, Jack M., "SMART Cards - The Global Information Passport", International Thomson Computer Press, 1996.
6. Svigals, Jerome, "SMART Cards - The New Bank Cards", MacMillan Publishing Company, 1987.
Team Members: David Starling EE MS david@comlab.gtri.gatech.edu (primary contact) Brad Topol CS PhD topol@cc.gatech.edu
Description:
With the introduction of the World Wide Web and associated technologies, the Internet is undergoing a revolutionary transformation. Until recently, the Internet was primarily the sole domain of computer scientists and academics who performed rudimentary information transfer tasks such as electronic mail and file transfers. The navigation tools supplied by the web have introduced the general public to Internet-based computing. This, combined with the Internet's worldwide connectivity has resulted in phenomenal growth in the use of the Internet. One recently emerging use of the Internet is Internet Commerce. This article will investigate Internet commerce and the external factors that affect this emerging technological innovation. Business Owners and Entrepreneurs all over the world are potential clients that could benefit from Internet Commerce. Businesses in remote countries and remote areas now have a potentially global market that can be reached at work, or in their homes.
Topic Outline:
1. Introduction
One page description of the technical aspects of the Internet. How it works. How the World Wide Web has made the Internet user friendly. Why the Internet can be a very insecure place.
1.1. Description of the Internet
This section will provide a basic description of the Internet and it’s creation. The initial uses and users of the Internet will be discussed. The expansion of the Internet and its change to a commercialized system.
1.2. Description of the World Wide Web
A description of the World Wide Web will be presented and its importance in creating Internet Commerce. The graphical and multimedia nature of the information provided produced an environment that provides a common media for Commerce, similar to TV, or radio. Some security concerns will be discussed, showing that high connectivity leads to a lack of security and privacy. Bandwidth limitations and any other limitations will also be presented.
2. Key aspects of the technological environment
This will discuss the Internet's ability to affect International competition and what is necessary support the commercialization of Internet commerce (e.g. electronic money and cryptographic fraud protection).
2.1. Wide Area Access of Information with a global Infrastructure
This section will discuss the effects of a wide area network that is internationally. The implications are that the larger distribution of information provides easier access to products that are not normally available in a particular geographical region.
2.2. Invention of Electronic money for use in transactions
The invention of Electronic money provides a means of generating transactions for goods and services on the Internet. This is an enabling factor in the success of commerce on the Internet to have an electronic equivalent to the monetary system.
2.3. Cryptography and Fraud Protection
Cryptography and Fraud Protection play an important role in ensuring users that transactions remain secure and that fraud is kept to a minimum. If Internet users do not believe that their credit card numbers and other personal information is not secure, Internet Commerce will never gain mass acceptance.
2.4. Widespread Advertisement in Heavily Visited Areas
Widespread Advertisement in Heavily Visited Areas, such as search engines and other indexes are showing some of the early efforts of Internet Commerce. World Wide Web addresses are now showing up on billboards and TV commercials.
3. Marketization and Competition Issues
Information will be provided regarding the growth and characteristics of users of the World Wide Web, the technology that enables and supports Internet commerce. Information presented will include results and trends from the first four World Wide Web Surveys including Age distribution, gender ratios, average and median incomes.
3.1. Market descriptions of typical Internet Users
This section will detail specifics of surveys contained in reference material to obtain a description of the "typical Internet User" and some demographic information that is of importance to Internet Commerce.
3.2. Competition with global access to large numbers of companies
The Internet provides a user with access to companies and products all over the world. This access produces a large amount of competition between companies with a large wage scale difference. This allows users to subcontract software and other tasks to programmers in lower wage countries.
4. Policy Issues
Issues discussed will include the U.S. Technology Policy (cryptography exportation, etc.) and its major implications on the growth of Internet commerce. Also discussed will be the lack of a body to govern Internet commerce.
4.1. U. S. Technology Policy
This section will describe the current state of U. S. Technology Policy and its implications on Internet Commerce. The U. S. has restrictions on the type and number of bits of cryptography technology that is exported to other countries.
4.2. Lack of Global Technology Policy
This section will discuss the implications of not having a global technology policy that can be enforced across geographical boundaries. This lack of global policy leads to more conflicts between different countries and geographical areas policies.
4.3. Difficulties in Enforcing Policies in Global High Speed Networks
This section covers the difficulties in enforcing any technology policy on a High Speed Network. Also which technology policy should have precedence over a situation where an illegal transmission originates in one country and it is received in another country. This section will also discuss the difficulty in monitoring transactions on the Internet.
5. Teaming of Internet Providers and Businesses
Internet Providers have teamed up with Business Owners to provide advertisement services and special access to Internet Commerce Resources. The success of Internet Commerce will increase market share and profits for Internet Providers through high hourly usage of users shopping Online.
6. Methods of Research
Methods of research will include a literature review of articles pertaining to Internet commerce. Interviews will be performed with an Internet survey expert and an Internet commerce expert will also be heavily utilized. Search of relevant materiel on the World Wide Web will provide some insight on current activities and policies of Internet Commerce.
6.1. Initial literature references and other resources:
Berghel, Hal. Digital Village: U.S. Technology Policy in the Information Age Communications. ACM 39, 6 (June 1996), 15--18.
Borenstein, Nathaniel S. et al. Perils and Pitfalls of Practical Cybercommerce. Communications. ACM 39, 6 (June 1996), 36--44.
Panurach, Patiwat. Money in Electronic Commerce: Digital Cash, Electronic Fund Transfer, and Ecash. Communications. ACM 39, 6 (June 1996), 45--50.
Pitkow, James and Kehoe, Colleen. Emerging Trends in the WWW User Population. Communications. ACM 39, 6 (June 1996), 106--108.
6.2. Initial World Wide Web Sources:
MIS JOURNALS AND BOOKS, "http://cism.bus.utexas.edu/CISM/Jou.html".
Making Money on the Internet -- Readings Material, "http://cism.bus.utexas.edu/ravi/Courses/InternetMaterial.html".
Internet, "http://pluton.insead.fr/Encyclopedia/ComputerSciences/Internet/internet.html".
A survey of technology in finance, "http://economist.iconnet.net/surveys/techfn/".
6.3. Internet experts that will be interviewed:
1) Colleen Kehoe
Colleen Kehoe has written numerous articles pertaining to surveying the Web. The World Wide Web surveys performed by herself and her colleagues have been instrumental in identifying and quantifying the recent changes in the use of the Web. In addition to her articles, Colleen has been interviewed for her Internet knowledge on several television shows including Discovery Channel Canada.
2) Phyllis Schneck
Phyliss Schneck is an employee at CygnaCom Solutions. CyngaCom specializes in developing a digital signature engine for the U.S. postal service. Digital signatures enable Internet commerce by providing identity authentication that is the Internet equivalent of a written signature.
Topic Description: The purpose of this paper is to evaluate the future of electric powered vehicle technology in the United States. A growing number of people consider electric vehicles as the future of transportation in the US. The electric car is a vehicle that produces zero emissions. It has an electric motor that is powered by rechargeable batteries. Electric vehicles that are supplied with electricity from an external source, a rail or some type of power grid, will be considered as a competing technology. EV's have entered a limited production and testing stage in several markets in the US. This paper will give a general description of this technology, identify competing technologies, and determine what will make this technology a success or failure.
Outline:
* Issues leading to the need for this technology: This section will include state and federal environmental guidelines and mandates that have lead to the development of EV's. It will discuss the environmental problems of gasoline powered vehicles and determine if these problems can be alleviated by EV's. Other reasons for EV's will also be discussed such as US dependence on foreign oil .
* Basic description of the technology: A brief description of how EV's operate will be accompanied by there current capabilities ,limitations, and different modes of employment. The range, charging time, acceleration, speed, and cargo capacity will be compared to current automobile. The performance goals for the EV will also be addressed.
* Problems: Problems with the technology and possible solutions to these problems with an evaluation of the feasibility of each. What problems does the EV not answer, i.e. traffic congestion?
* Environmental Issues: Are EV's really environmentally friendly? Is the production of electricity from coal cleaner than the burning of gasoline? How much lead or other resources will be required for the mass production of rechargeable batteries and what will be the environmental impact of the mining and refining of these materials? What will happen with the spent batteries? Are recycling systems in place?
* Infrastructe changes: The additional investments to make the mass marketing of EV's possible, such as recharging stations, rewiring of existing homes and changes in the building codes for new homes, EV parking lots, repair shops, and emergency response teams, will be identified and evaluated. Can the electric utilities industry support a mass fleet of EV's? What changes will be required?
* Competing technologies: This will discuss other technologies that can solve the same problems as the electric car. These will include dual fuel vehicles, hydrogen powered vehicles electric mass transportation and other technologies. Cost and feasibility comparisons of these technologies will be done.
* Social Issues: The psyche of American society that rejects mass transportation and requires fast long distance modes of individual transportation will be covered. Possible changes in education and ideology will be determined. What will it take to move society toward electric vehicles and mass transportation.
* Marketization: Will anyone purchase an EV? Potential customers, costs of product, location of markets and other issues dealing with the promotion and sales of EV's . What are the goals required by government legislation and set by manufactures? Will they be met?
* Government Involvement: Implications of government role in the development of this technology. How is it involved and why? Are there any better methods for the government to achieve these same objectives?
* Champions: The agencies and organizations that are pushing for the advancement of this technology and why will be determined. Leaders in the development of electric cars will be compared as to who has the advantage and what their stategies are to maintain them.
* Economic issues: What jobs will be created by the introduction of EV's and what jobs will be lost? Who is resisting this technology and why? Are there any ways to smooth the transition to EV's and who can implement them?
* Summary: A general summary of the prospects of this technology will be given with possible recommendations to improve the development and fielding of this technology.
References:
From: Michael Furukawa <mf57@prism.gatech.edu> Subject: MOT-1 Project Outline To: ps25@prism.gatech.edu Date: Sun, 27 Oct 1996 15:57:33 -0500 (EST) Cc: mf57@prism.gatech.edu, gt7796a@prism.gatech.edu, gt7962@prism.gatech.edu, gt0129f@prism.gatech.edu
PROJECT TITLE: Olestra: Fake Fat Under Fire
TEAM MEMBERS: Mike Furukawa, mf57@prism.gatech.edu (Primary Contact) LaTisha Fluellen, gt7796a@prism.gatech.edu Michael Smith, gt7962@prism.gatech.edu David Wood, gt0129f@prism.gatech.edu
TOPIC DESCRIPTION: In 1959, scientists with the Procter and Gamble Company (P&G) stumbled upon the technology for a new fat substitute that is now known as Olestra. The company spent $275 million developing Olestra which underwent tests for 25 years. Now Procter and Gamble faces the challenge of making Olestra a household word as they did with Puritan Oil.
Procter and Gamble is quite aware of the number of external factors they face in the successful marketing of Olestra. P&G has been a successful innovator and marketer of cooking fats for home and institutional use for 85 years starting with the introduction of Crisco shortening in 1911. Olestra has come under fire because it may cause abdominal cramping and loose stools in some individuals, and inhibits the body's absorption of certain fat-soluble vitamins and nutrients. The FDA is therefore requiring P&G and other manufacturers who use Olestra to provide a warning label on all foods made with it and to add essential vitamins (vitamins A, D, E, and K) to Olestra. As a condition of its approval, P&G will conduct studies to monitor consumption as well as studies on Olestra's long term effects. The FDA will formally review these studies in a public meeting of the Foods Advisory Committee within 30 months after P&G begins test marketing, which was set to begin with Pringles potato ships on September 30, 1996.
Olestra has been heavily scrutinized by the FDA which delayed the approval of its use for eight years until June 1996, and now the FDA faces scrutiny for those very actions. Many are now saying that company's will be discouraged from investing heavily in product development and clinical research because of what they have seen P&G face over the last eight years in seeking the approval to use Olestra in the savory snacks market. The FDA's actions sparked review and a push for its reform. A new senate, house bill seeks to make the FDA step up the pace on its approval processes. P&G could never have anticipated such a snow ball effect from the controversy over its hot new fat substitute, Olestra.
The list of Olestra critics continues on with the Center for Science in the Public Interest whose director, Michael Jacobson, claims that the FDA erred in approving Olestra because it causes gastrointestinal problems such as diarrhea and fecal urgency. According to Jacobson, the FDA's panel recommended Olestra's approval because of pressures from food industry insiders. The Physicians Committee for Responsible Medicine has also stepped forward to urge food manufacturers not to use Olestra in their products.
Through the shadow of widespread criticism, P&G has already put its new product on the market and began construction of a facility whose purpose will be producing Olestra for use in P&G's new fat free Pringles and for sale to other salty snack food manufacturers who will be releasing products with Olean, the brand name for Olestra. Frito-Lay has already introduced snacks made with Olean into test markets. The brands involved are Lay's, Ruffles, Doritos, and Tostitos.
Now P&G faces many challenges in making Olean its next hot product. If they are successful in the savory foods they may be able to seek approval to use Olean in shortening, ice cream, salad dressings, and cheese. If they overcome the external factors P&G can expect a large return on its 25 year $275 million investment in Olestra.
PROJECT OUTLINE: Technology Environment: · Overview of Biotechnology for Food Products · Description of Technology · Technological Requirements
Business Environment: · Overview of Market · Product Development of Olestra · Commercialization of Olestra · Competition
Public Policy Environment: · Regulatory Issues · FDA
Consumer Environment: · Market Acceptance · Health Issues
PROJECT METHODOLOGY: Literature Review: An extensive literature review will be conducted from abstracts, journals, and other information resources including World Wide Web sites.
Interviews: Four perspectives on the external environment through interviews with experts in the technology, business, policy, and consumer areas. 1. Technological Perspective - Georgia Tech Researcher in Biotechnology 2. Business Perspective - Representative from Proctor & Gamble 3. Policy Perspective - Representative from the FDA 4. Consumer Perspective - Physician specializing gastrointestinal health issues
Consumer Survey: The Management of Technology I class will be invited to participate in a brief survey on Olestra. The survey is designed to identify and measure the consumer perception of the Olestra technology. A statistical analysis will support the reports findings.
REFERENCES: Center for Science in the Public Interest Home Page, World Wide Web.
Cerrato, Paul A., "Fat Substitutes - a closer look", RN, V 56, April, 1993, pg. 67 (3).
Cerrato, Paul A., "The Absolute Skinny on the New Fat Substitute", RN, June 1996, V59, pg. 38 (2).
Kleiner, Susan, "Tricking the Taste Buds", The Physician and Sportsmedicine, July 1991, V 19, pg. 19 (2).
O'Donnell, Claudia Dziuk, "The Changing World of Fats and Oils", Prepared Foods, June 1996, V165, pg. 36 (7).
Procter & Gamble Home Page, World Wide Web.
From: amyo@cc.gatech.edu (Amy Lynn Opalak) Subject: MOT6771 Project Outline To: ps25@prism.gatech.edu Date: Sun, 27 Oct 1996 12:13:06 -0500 (EST) Cc: gt7086a@prism.gatech, edu@cc.gatech.edu, gtd306a@prism.gatech.edu, gt5491a@prism.gatech.edu, amy@fivepaces.com
Team Members: Manish Consul, MSIE, gt7086a@prism Louis DeSetto, MSCS, gtd306a@prism Amy Opalak, MSEE, amyo@cc.gatech.edu John Patton, MSMGT, gt5491a@prism
Primary Contact: Amy Opalak
OUTLINE
Methods: We intend to review web pages related to the topic, do database searches for technical and non-technical sources of articles, and perhaps interview a relevant source in the internet banking industry (at Security First Network Bank). We will conduct comparative anaylses of banks with and without an Internet presence, as well as PC-banking versus Internet banking.
Initial Literature References: -----------------------------
Virtual taxation: electronic commerce poses problems for state tax collections. Sharp, John. Government Finance Review Card industry directory, 1997: the blue book of the credit and debit card industry in the United States. Higgins, Kevin T., ed. Faulkner & Gray, Inc. Electronic commerce and the future of banking: it's not your father's home banking. Mahan, James S. III, Bankers Magazine Get ready for electronic commerce. Schutzer, Daniel. ABA Banking Journal Common ground: fundamental principles for the National Information Infrastructure. United States. Nat. Info. Infrastructure Advisory Council. Superintendent of Documents Electronic commerce and interoperability in the national information infrastructure: hearing, May 26, 1994. | United States. House. Com. on Sci, Space, and Technol. Subcom. on Technol., Environment, and Aviation. Memorandum on streamlining procurement through electronic commerce, October 26, 1993. Clinton, William J., Weekly Compilation of Presidential Documents
Summary -------
We began to summarize certain parts of our outline, and are including these summaries now for your information. These paragraphs are what we are basing our talk on Monday.
Technical Aspects of Internet Banking -------------------------------------
Traditional PC banking, which involves end-users installing proprietary bank software on their PC and dialing directly into the bank to download data and conduct transactions, has been around for years, although not widely publicized. Requiring end-user software gives a bank little control over the user interface in terms of upgrades and, in the case where the software was licensed from a software vendor, little control over the kinds of transactions end-users make and with whom these transactions occur (such as credit card or brokerage providers). This system requires the user to send a batch of requests such as transfers or payments) to the bank after each session, thus the data is not quite real-time. If a customer downloads data from multiple sources (such as a bank, a credit card provider, and an insurance provider), the customer has to plug this data in to the appropriate places in the software, as the multiple systems are not integrated. With Internet banking, however, all banking and interface software resides on the bank's host computer, which users access via the World Wide Web. This gives banks great control over the user's banking experience, as modifications to the user interface, functionality, or service provider connections may be completed on the bank's host computer, and displayed to Web users instantly. Users view and interact with account data which resides on the bank's computers real-time through a continuous, interactive session. The bank server can merge information from different providers so that the customer obtains an integrated financial picture. Customers should be able to log into the bank any computer with Internet access, anywhere around the world. This openness vastly increases the bank's market, from that area physically local to the bank, to the entire world.
Technological Environment -------------------------
There are many aspects of the current technological environment that are necessary for the commercialization of this technology. These include essential and complementary assets and resources such as the internet, security standards, easy to use browsers, communcation standards, the large base of existing home and office computers and the emergence of new, cheaper "web" PC's. The obvious and most essential of these resources is the internet, a global network that allows computers to communicate seamlessly with others around the world. The assets neccessary for the harnessing of this resource include the computer hardware and software needed to host this service as well as people to perform development, customization, and maintenance.
Another essential asset needed for the commercialization of this technology is security standards. There is an obvious need to ensure that only the owner of an account has access to its data and can conduct transactions. The use of passwords and encryption technology help to avoid this problem, but by no means solve it.
Probably one of the most important of the supporting resources is the existence of easy to use Web browsers such as Netscape or Mosaic. These browsers provide simple point and click interfaces that include text, video, and sound. Related to this are all of the underlying communication standards such as HTML and Java which make these browsers a reality. These technologies are also the most volatile and are constantly being updated or replaced. Also supporting this technology is the current base of installed home and office computers. This provides a large audience for this technology that will only get better as computer prices drop. Currently, new "web" PC's sell for under $300 and can be connected to standard televisions and phone lines.
Marketization and Competition -----------------------------
We plan to compare the rate growth of traditional banking services against the rate of growth of internet banking. Initial findings indicate that while the banking industry does continue to expand, it does not exhibit the fantastic exponential growth rates witnessed in the internet banking industry. We will also contrast the internet banking technology against dedicated dial-in banking software. The competition between internet banking, traditional banking, and modem connection banking will be addressed. The demographics of the end-user will also be addressed, showing that the average internet bank customer has higher level of income, higher level of savings, and higher level of education. The potential for broader markets may be limited by concerns from would-be consumers about the security of such technologies, and the vulnerability of a person's funds to electronic pirates. The broad acceptance of the technology will be facilitated by continued successful operations, ZERO failure or data compromise incidents, and strategic marketing to the technologically sophisticated consumers. We will present factors which point to the continued expansion of internet banking into the broader market of internet financial management services. Service offerings continue to expand while we research this topic. Checking accounts, savings accounts and internet credit cards are now commonplace. Money markets, mutual funds and certificates of deposit are investment options which are now becoming available through internet financial management service bureaus. Investment and trading in the securities, stocks and bonds, are services whose recent availability are supplementing the traditional banking ministrations offered by the internet financial management institutions. The total market potential of internet banking, synonymous with internet financial management, is a function of many factors. Several of the fundamental forcing factors are consumer acceptance, competitive advantage, convenience, and proliferation of supporting technologies. We will assess the state of internet banking and the prevailing conditions of the forcing factors, and attempt to present a cogent estimate for total market potential. This prediction will include quantification of profits, revenue, and transaction totals for internet financial management services.
External Factors ----------------
1. PERCEPTION OF THE PEOPLE : People with little or no knowledge of the computerized world would definitely be skeptical of the innovation. It would however, take very little training to help them overcome this obstacle and get the benefit of what will be a very convenient system of banking.
2. Quality and Speed of Transport Medium :Sitting at home now people will have access o their money placed in a bank in a remote corner of the world, INSTANTLY. This technolgy will allow them to operate teir account with an unprecedented amount of ease. Later the same tchnology may be enhanced to even allow for stock market trading.
3.International Market : To any bank offering these facilities the market becomes global. People from far flung areas can connect and avail this facility if the deal is right. It also translates into greater competition for existing established banks.
4.Effect on Brokers/Bankers : The direct effect on brokers and some bankers might be adverse (specially the ones with a lower level of skill or the ones who have difficulty in coping with these increased levels of automation). This may cause some heartburn, but then again, it is those with low skill levels who are threatened by this kind of change.