2006 05-v3 Lecture Aggregators - MIT

1

MASSACHUSETTS INSTITUTE OF TECHNOLOGYMASSACHUSETTS INSTITUTE OF TECHNOLOGYSLOAN SCHOOL OF MANAGEMENTSLOAN SCHOOL OF MANAGEMENT

15.56515.565 Integrating Information Systems:Integrating Information Systems:Technology, Strategy, and Organizational Factors Technology, Strategy, and Organizational Factors

15.57815.578 Global Information Systems:Global Information Systems:Communications & Connectivity Among Information Communications & Connectivity Among Information

SystemsSystems

Spring 2006Spring 2006

Lecture 5Lecture 5AGGREGATORS:AGGREGATORS:The New Business The New Business

on the Interneton the Internet(c) S. Madnick & M. Siegel, 2006

-- Version 02/21/2006

2

Multiple PerspectivesMultiple Perspectives

Strategy Strategy and Policyand Policy

AggregatorsAggregators

Information Integration & Aggregation:Information Integration & Aggregation:Reuse and RepurposingReuse and Repurposing

ApplicationsApplications

eCommerce, Supply Chain, eCommerce, Supply Chain, Financial Services, etc.Financial Services, etc.

TechnologyTechnology

Web wrapper & Context mediatorWeb wrapper & Context mediator

2

3

Overview:Overview: Information Aggregation Information Aggregation –– Focus on ReFocus on Re--use and Reuse and Re--purposingpurposing

Aggregator definition, types & examplesAggregator definition, types & examples

Emerging Global AggregationEmerging Global Aggregation

Enabling TechnologiesEnabling Technologies

New Emerging AggregatorsNew Emerging Aggregators

Strategy, Legal, Cultural, and Policy IssuesStrategy, Legal, Cultural, and Policy Issues

SummarySummary

4

Aggregator DefinitionAggregator Definition

Transparently collects informationTransparently collects information

•• with with or withoutor without prior source arrangementprior source arrangement

•• resolves contextual differencesresolves contextual differences

Performs analysisPerforms analysis

•• not merely gathernot merely gather

Represents userRepresents user

•• acts as agent for useracts as agent for user

3

5

www.amazon.comwww.amazon.com

6

www.mysimon.comwww.mysimon.com

4

7

www.evenbetter.comwww.evenbetter.com **

* Now called DealTime.com Comment: Need for Mega-Aggregators

8

Mega Mega -- AggregatorsAggregators

Note: multiple book price aggregatorsNote: multiple book price aggregators

•• using differing sourcesusing differing sources

•• giving differing results !giving differing results !

What about an aggregator of aggregatorsWhat about an aggregator of aggregators

•• A A MegaMega-- AggregatorAggregator …… more later more later ……

Not just about books ...Not just about books ...

5

9

Progressive Direct Progressive Direct -- InsuranceInsurance

Scrolling comparisons

10

Aggregator Types & ExamplesAggregator Types & Examples

Investment Investment analysis, policy analysis, policy analysisanalysis

Department Department calendarscalendars

ComplementaryComplementary

Financial account Financial account aggregationaggregation

Customer Customer Relationship Relationship Management Management (CRM)(CRM)

RelationshipRelationship

Shop for best Shop for best prices (e.g., books)prices (e.g., books)

Benchmarking Benchmarking divisionsdivisions

ComparisonComparison

ExternalExternalInternalInternalSourcesSources

Types

6

11

www.usair.comwww.usair.com

12

www.maxmiles.comwww.maxmiles.com

7

13

What is What is MaxMilesMaxMiles

You give it all your frequent flyer info, it . . .You give it all your frequent flyer info, it . . .

Does mileage management for you . . .Does mileage management for you . . .

Gathers all your frequent flyer infoGathers all your frequent flyer info

Sends a personalized report via emailSends a personalized report via email

Updates reports on web site dailyUpdates reports on web site daily

Searches for missing mileage creditsSearches for missing mileage credits

Analyzes most current Analyzes most current milagemilage offersoffers

14

From US Airways siteFrom US Airways site"Access to this information is subject to the rules in "Access to this information is subject to the rules in the Dividend Miles Membership Guide. In addition, by the Dividend Miles Membership Guide. In addition, by using this site to access your Dividend Miles account, using this site to access your Dividend Miles account, you agree that you will use this site in a manner you agree that you will use this site in a manner consistent with the Dividend Miles Membership Guide consistent with the Dividend Miles Membership Guide and you further agreeand you further agree not to allow access to this sitenot to allow access to this siteto any third partyto any third party by revealing your access code to by revealing your access code to any third party for any reason. Failure to comply with any third party for any reason. Failure to comply with the foregoing restrictions on the use of this site shall the foregoing restrictions on the use of this site shall be grounds for the termination of your access to this be grounds for the termination of your access to this site and/or your membership in the Dividend Miles site and/or your membership in the Dividend Miles program."program."

8

15

““Power of AttorneyPower of Attorney”” on on MaxMilesMaxMiles SiteSite

16

Real time Tibco

Complementary AggregatorComplementary AggregatorIntegrated SpreadsheetIntegrated Spreadsheet SourcesSources

InternalExternal

9

17

Latest Latest ““hothot”” Aggregator: Aggregator: Zillow.comZillow.com

18

Everyone is impacted:Everyone is impacted:If you are not an Aggregator,If you are not an Aggregator,

you are an you are an AggregateeAggregatee

Books.comBooks.com, , MySimon.comMySimon.com, , EvenBetter.comEvenBetter.comBarnes and Noble, Borders, Amazon, . . .Barnes and Noble, Borders, Amazon, . . .

MaxMilesMaxMilesUnited, American, TWA, US Air, . . .United, American, TWA, US Air, . . .

Universal Financial Aggregator (UFA)Universal Financial Aggregator (UFA)your banks, your brokers, your your banks, your brokers, your billersbillers , . . ., . . .

NOTE: NOTE: AggregatAggregateeeess --> Aggregat> Aggregatororss

10

19

OverviewOverview






SummarySummary

20

Global Comparison Aggregator Global Comparison Aggregator

http://soursop.mit.edu/global

<- Sweden selected

11

21

Best global online priceBest global online price

22

MegaMega--Aggregator: Using Regional AggregatorsAggregator: Using Regional Aggregators

US Sweden France UK

12

23

OverviewOverview






SummarySummary

24

Emerging TechnologiesEmerging Technologies

Web wrappersWeb wrappers

ExtractExtract selected information from webselected information from web

Allows web to be treated as large databaseAllows web to be treated as large database

Context mediatorsContext mediators

ResolveResolve semantic (meaning) semantic (meaning) differencesdifferences

Enable meaningful aggregationEnable meaningful aggregation

& comparison& comparison

13

25

OverviewOverview






SummarySummary

26

AggregateeAggregatee

AggregateeAggregatee

AggregatorAggregator

Financial Account AggregatorsFinancial Account Aggregators

14

27

““Aggregation . . . The Aggregation . . . The ‘‘killer appkiller app’’ in the in the ee--finance revolutionfinance revolution””

http://www.tfconferences.com/conferences/AAG01/index.html

28

FI FI #2#2

FI FI #3#3

FI FI #1#1

UserUserUFAUFA

First CallFirst Call

ExcelExcel

• AdvisorsAdvisors

•• WizardsWizards

•• AgentsAgents

Account Account Analyst Analyst

Asset Asset AllocationAllocation

Financial Financial SourcesSources

Other Internet SourcesOther Internet Sources

Intranet SourcesIntranet Sourcesand applicationsand applications

Real Value: Real Value: ““After AggregationAfter Aggregation”” ServicesServices

UserUserInformationInformation

15

29

Advisors: Stock holdings reAdvisors: Stock holdings re--aggregateaggregate

30

Wizards: Money Market (MMA) exampleWizards: Money Market (MMA) example

16

31

MMA is also an MMA is also an aggregator,aggregator, of MM rate sourcesof MM rate sources

Better rates

32

MultiMulti-- MegaMega-- Aggregator !Aggregator !

The Universal Financial Aggregator (UFA) :The Universal Financial Aggregator (UFA) :

AggregatesAggregates your financial informationyour financial information

several ways: totals and stock holdingsseveral ways: totals and stock holdings

Also uses the Money Market Also uses the Money Market AggregatorAggregator

which draws on multiple MM sourceswhich draws on multiple MM sources

including sources that are, in fact,including sources that are, in fact,

aggregatorsaggregators of some MM sourcesof some MM sources

17

33

OverviewOverview






SummarySummary

34

Strategy, Legal, Cultural, and Policy Strategy, Legal, Cultural, and Policy IssuesIssues Regarding AggregationRegarding Aggregation

Relationships between Aggregators and Relationships between Aggregators and AggregateesAggregateesProtection of investment in data Protection of investment in data vsvs rere--useuse

EU Database DirectiveEU Database Directive4 proposed bills in US4 proposed bills in US

Protection of consumer privacyProtection of consumer privacyLiability, consumer protection, jurisdictionLiability, consumer protection, jurisdiction

18

35

www.intershipper.netwww.intershipper.net

36

www.iship.comwww.iship.com

19

37

Aggregator Aggregator ““statesstates”” exampleexample

Independent Agent ( BITS, Inc. ]

Independent Aggregator

IntershipperIntershipper

iShipiShip

Dependent Aggregator/Dominant ( UPS ]

Dependent Aggregator / Consortium

Partial Collaborative Aggregator

38

Database ReDatabase Re--Use Lawsuits and ClaimsUse Lawsuits and Claims

Example CasesExample CaseseBay vs. BiddereBay vs. Bidder’’s Edges Edge

HomeStore.comHomeStore.com vs. vs. Bargain NetworkBargain Network

First Union vs. First Union vs. PayTrustPayTrust

mySimonmySimon vs. vs. PricemanPriceman

Register.com vs. Register.com vs. VerioVerio

Ticketmaster vs. Ticketmaster vs. Tickets.comTickets.com

Principles UsedPrinciples Used•• Copyright infringementCopyright infringement

•• Trespass to chattelsTrespass to chattels

•• Breach of contractBreach of contract

•• MisappropriationMisappropriation

•• False advertisingFalse advertising•• Violation of the Computer Violation of the Computer

Fraud and Abuse ActFraud and Abuse Act•• . . . . . .

20

39

““ Trespass to chattels Trespass to chattels ””eBay vs. BiddereBay vs. Bidder’’s Edges Edge

InjunctionInjunction

Ticketmaster vs. Ticketmaster vs. Tickets.comTickets.com

““it is hard to see it is hard to see how entering a how entering a publicly available publicly available web site could be web site could be called a trespasscalled a trespass””

““ Copyright infringement Copyright infringement ””Protects original works of authorship Protects original works of authorship

Usually not applicable to data reUsually not applicable to data re--useuse

http://www.tomwbell.com/NetLaw/Ch06/eBay.html

40

Battle over Database ReBattle over Database Re--Use Use --continuedcontinued

New Paradigm New Paradigm –– ““sweat of the browsweat of the brow””Collections of Information Collections of Information AntipiracyAntipiracy Act, Act, H.R.354 (1999) H.R.354 (1999) –– Coble billCoble bill

Consumer and Investor Access to Information Consumer and Investor Access to Information Act of 1999, H.R. Rep.1858 (1999) Act of 1999, H.R. Rep.1858 (1999) –– Bliley billBliley bill

Two other failed bills in 1996, 1997Two other failed bills in 1996, 1997

Current in USA H.R. 3261Current in USA H.R. 3261

EU Database DirectiveEU Database Directive

21

41

International DifferencesInternational Differences

DecentralizedDecentralized

SelfSelf-- regulationregulation

No DB protection lawNo DB protection law

OptOpt--out for privacyout for privacy

CentralizedCentralized

Specific, strict regulationSpecific, strict regulation

DB DirectiveDB Directive

OptOpt--in for privacyin for privacy

U.S. E.U.

Reciprocity provisionReciprocity provision•• Not protected if home country does not have similar law for DB Not protected if home country does not have similar law for DB

protectionprotection

•• No data flow to countries without similar privacy protection lawNo data flow to countries without similar privacy protection law

Harmonization is neededHarmonization is needed•• Safe Harbor Agreement between US and EUSafe Harbor Agreement between US and EU

42

OverviewOverview






SummarySummary

22

43

Some Insights & ImplicationsSome Insights & ImplicationsInsightsInsights•• Everyone impactedEveryone impacted

•• AggsAggs not limited to price not limited to price comparisoncomparison

•• AggsAggs can be combined and can be combined and aggregatedaggregated

•• AggsAggs create new info spacescreate new info spaces

•• AfterAfter--aggagg even more importanteven more important

•• New technologies emergingNew technologies emerging

•• Business models and market Business models and market conditions continue to changeconditions continue to change

ImplicationsImplications•• Be part of strategy planningBe part of strategy planning

•• Identify new Identify new AggAgg applications applications and business opportunitiesand business opportunities

•• Entirely new types of Entirely new types of applications can be definedapplications can be defined

•• Who will own this spaceWho will own this space

•• This must be exploitedThis must be exploited

•• Exploit these technologiesExploit these technologies

•• Must be prepared for changesMust be prepared for changes

44

Current Related Projects Current Related Projects ( partial list )( partial list )• Aggregation strategies Aggregation strategies (e.g., Open aggregation)(e.g., Open aggregation)•• Regional & Global Aggregation: Regional & Global Aggregation: Cultural & legalCultural & legal

•• Financial servicesFinancial services•• CounterCounter--terrorism Information Integration terrorism Information Integration

(bio(bio--terrorism)terrorism)

•• Context Mediation & Web data extraction *Context Mediation & Web data extraction *•• Data Quality & What XML will and will Data Quality & What XML will and will notnot dodo•• Internal & Industry data standards effortsInternal & Industry data standards efforts•• Other new technologies Other new technologies (e.g., RFID infrastructure)(e.g., RFID infrastructure)

* Patents awarded in 1999* Patents awarded in 1999

23

45

For Further Information and ContactsFor Further Information and ContactsMIT Research:MIT Research:

–– http://context2.mit.eduhttp://context2.mit.edu

MIT Technology Licensed Software:MIT Technology Licensed Software:

–– http://http://web.mit.edu/smadnick/www/patents/Patents.htmweb.mit.edu/smadnick/www/patents/Patents.htm

Email Contact: Email Contact:

–– Stuart Madnick at Stuart Madnick at [email protected]@mit.edu

–– Michael Siegel at Michael Siegel at [email protected]@mit.edu

Research funded, in part, byResearch funded, in part, by Fleet Bank, Merrill Lynch, Suruga BankFleet Bank, Merrill Lynch, Suruga Bank, , BancoBancoSantander (BSCH), Citibank, Santander (BSCH), Citibank, DoDDoD Advanced Projects Agency (DARPA), MITRE Advanced Projects Agency (DARPA), MITRE Corporation, PricewaterhouseCoopers, SingaporeCorporation, PricewaterhouseCoopers, Singapore--MIT Alliance (SMA), MIT Alliance (SMA), MITMIT--Malaysia University of Science and Technology (MUST) CollaboratiMalaysia University of Science and Technology (MUST) Collaborationon

Documents

2006 05-v3 Lecture Aggregators - MIT