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Kelley expert: Olympics could be targeted by hacktivists, others seeking to embarrass Beijing
Scott Shackelford, associate professor of business law and ethics at Kelley, IU Cybersecurity Risk Management Program chair and director of the Ostrom Workshop Program on Cybersecurity and Internet Governance, said the high-profile diplomatic breach leading up to the games — including the boycott led by the United States – “means that the games could be targeted by hacktivists and other groups seeking to embarrass or otherwise harass Beijing.” Scott Shackelford “There are always issues associated with the Olympics given that they are a target-rich environment for criminals seeking to target athletes and spectators alike,” Shackelford said. “Beijing’s harsh data localization, cybersecurity, and cyber sovereignty laws also raises human rights concerns for athletes and reporters attending the games.” He also noted that ironically while the Olympic games generally often coincide with a peaceful break from ongoing geopolitical tensions, this might not last long. “Witness the Russian invasion of Crimea three days after the 2014 Sochi games concluded,” he said. Shackelford can be reached at sjshacke@indiana.edu.
Tune In and Learn from our Experts - The Science of Decision Making
Did you know the average adult makes more than 35,000 decisions each day? The Science of Decision Making is the most recent episode available on The Goizueta Effect podcast. Emory University's Goizueta Business School Professor Ryan Hamilton shares how a better understanding of the human mind can help you make the best decisions in your own life – and position your products, services, and teams for growth. On the podcast you’ll find out more about: Grounding Tenets: The 4R’s of Decision Making How Cognitive Resources Impact the Decision-Making Process The Mental Load of COVID Importance of Reference Points for Businesses Halo Effects: Impact on Perceived Prices and Satisfaction Levels Impact on Satisfaction Levels Impact on Individual Perception Does Hamilton’s Research Influence His Behavior? The link to the podcast is attached below and if you are a reporter interested in learning more about Ryan Hamilton’s research – we’re here to help. Ryan Hamilton, associate professor of marketing at Emory’s Goizueta Business School. He is available to speak with media regarding brands and brand reputation – simply click on his icon to arrange an interview.
Across America it seems deliveries are delayed; shelves are looking increasingly bare and there’s an elevated sense of anxiety when it comes to what lies ahead for America’s economy. All of these important topics are forefront in the minds of many and reporters are covering these stories locally and nationally on a daily basis. It's making news, and that’s why we’ve asked Dr. Richard M. Franza, the Dean of the James M. Hull College of Business at Augusta University, a few quick questions that we’re seeing pop up in media coverage across Georgia. Q 1 - What is causing shortages here at home, especially in grocery stores? “Like most things, it is complicated, not a lot of easy answers, but there are clearly a few things in play here. First, companies have been having a hard time finding workers throughout the supply chain. It starts at the producer level, whether it is meat processing plants or producers of other foods and sundry items, production levels are down due to limitations on workers. Then, there have also been worker issues at the transportation/logistics part of the supply chain. Particularly in the area of trucking. So, even when producers have enough supply, they are having difficulty getting it to the stores. Finally, there are issues at the grocery stores themselves. Both at their distribution locations and the store themselves, they have been short on labor unloading and picking items, again delaying products from getting on the shelves. The problem has gotten worse in the past few weeks due to the COVID spikes due to omicron. While omicron is causing less serious results, it appears to be easier to catch. So, lots of people are getting it, making people have to miss work for five days, putting a further crunch on the labor force.” Q 2 - Is this a problem we are likely to see continue through the first quarter or half of the year? “I am optimistic that we can get past the omicron crunch in the coming weeks (by mid to late February, if not sooner). So, things should get better this quarter. However, this will just put us back to where we were pre-omicron, with still some lingering issues. I am hopeful that as the pandemic evolves into an endemic, things will resemble a more normal environment. While this virus has been unpredictable, I am hopeful that we can return to more normal environment no later than the end of the second quarter.” Q 3 - What we can we expect once the pandemic finally subsides? “I am extremely optimistic concerning our economy post-COVID. We have been pretty resilient to date, so I think if COVID transitions to endemic, I think we will see more spending and more people going to work.” If you’ve got more questions to be answered, or if you’d like to speak with him one on one – then let us help. Dr. Richard M. Franza is available to speak with media about important issues like America’s supply chain and the economy – simply click on his icon now to arrange an interview today.
Aston University and Alpharmaxim unite to revolutionise healthcare communications campaigns
Aston University has teamed up with Alpharmaxim Healthcare Communications to apply the latest behavioural psychology research to develop a unique prescribing behaviour tool for healthcare professionals. At present there is a growing recognition in the healthcare sector that measuring belief change and/or intent to change behaviour can determine the effectiveness of marketing campaigns. The Healthcare Belief-Barrier Identification Tool (H-BIT)will identify beliefs and barriers in prescribing behaviour of EU healthcare professionals in specific disease areas, enabling targeted communication strategies that maximise the reach of treatments. Alpharmaxim is a long-established specialist marketing communications agency in the healthcare sector that helps pharmaceutical companies create effective communication plans for their products or services. A Knowledge Transfer Partnership (KTP) is a three-way collaboration between a business, an academic partner and a highly qualified graduate, known as a KTP associate. The UK-wide programme helps businesses to improve their competitiveness and productivity through the better use of knowledge, technology and skills. Aston University is the leading KTP provider within the Midlands. This KTP will combine Alpharmaxim’s rich history of harnessing behavioural psychology through their Belief Continuum® (BC) model with Aston University’s expertise in Nominal Group Technique (NGT), a structured method for group brainstorming that encourages contributions from everyone and facilitates quick agreement on the relative importance of issues, problems, or solutions. Applying NGT to objectively evaluate beliefs and behaviours that underpin behavioural change in a defined disease area will be unique in this field. The academic team from Aston University will be led by Dr Carl Senior, reader in psychology at Aston University. Dr Senior is a behavioural scientist with 20 years’ experience working at the interface between social psychology and organisational behaviour and was one of the first to develop a framework for applying NGT to understanding effective behaviour change. Commenting on the project, Dr Senior said: “We are delighted to have this opportunity to work with Alpharmaxim in this strategic relationship to lead change that is both focused and relevant to modern day health care.” Dr Senior will be joined by Dr Jason Thomas, senior lecturer in psychology at Aston University. Dr Thomas has spent the last ten years investigating novel approaches to encourage behavioural change, working with companies such as Direct Line and Starbucks to encourage their employees and customers to eat more healthily. William Hind, founder, controlling director and agency principal at Alpharmaxim, said: “We are delighted to be involved with this innovative KTP and hope the partnership will change the face of healthcare communications, ultimately improving the lives of patients with hard-to-treat diseases.”
Ask an Expert - Are American Fan-Based Businesses at Risk for Decreased Revenue?
Modern fandom, according to Mike Lewis, is about having a passion for something—a sports team, entertainer, politician, fashion brand, a university—something. Lewis, professor of marketing and faculty director, Emory Marketing and Analytics Center (EmoryMAC) and host of the podcast, Fanalytics, considers fandom important because what people are fans of defines a modern culture. We can laugh at the sports fan with the painted face and the open shirt and the spikes on the sleeves, but the reality is, the traits that drive that level of enthusiasm and commitment are the traits that change the world outside of the arena. Mike Lewis, professor of marketing and director of EmoryMAC To better understand modern fandom and its effect on culture, Lewis, along with Yanwen Wang, Associate Professor of Marketing and Behavioral Science, and Canada Research Chair in Marketing Analytics, University of British Columbia, created EmoryMAC’s “Fandom Analytics Initiative.” The Fandom Analytics Initiative’s first report, Next Generation Fandom Survey, Generation Z: The Lost Generation of Male Sports Fans, published in September 2021, examines the results of a national survey the initiative commissioned. Nearly 1,400 people across four demographic groups—Generation Z, Millennials, Generation X and Baby Boomers—participated in the survey. Is Gen Z the Lost Generation of Male Sports Fans? The results reveal a somewhat troubling trend: Generation Z males (those born between 1990 and 2010) “seem to be increasingly indifferent and negative to traditional sports,” Lewis and Wang write in their report. “Generation Z’s relative lack of passion for sports and other categories is troubling for fandom-based businesses and a curiosity for those interested in the state of American society.” While only 23 percent of Generation Z defined themselves as “avid sports fans,” 42 percent of Millennials did, along with 33 percent of Gen Xers and 31 percent of Baby Boomers. Perhaps even more revealing is the percentage of respondents who considered themselves “anti-sports fans”—a startling 27 percent of Generation Z tagged themselves as “anti-sports” compared to 7 percent of Millennials, 5 percent of Gen X, and 6 percent of Baby Boomers. “That was unexpected,” says Lewis, who thought Generation Z would line up similar to Millennials, given that both groups are digital natives. “I’m still more and more surprised at how different Generation Z is than Millennials and, frankly, everyone else.” When Lewis and Wang took a look at the differences between male and female Generation Zers, things got even more interesting. In traditional sports categories (football, basketball, hockey, baseball, soccer), more Generation Z females defined themselves as “avid sports fans” than did their male counterparts. When it came to football, 20 percent of both Generation Z males and females described themselves as avid fans (the lowest percentage of all the demographic groups). But in every other traditional sport, Generation Z “avid sports fan” females outnumbered males by a discernable margin. Only when it came to eSports did Generation Z males outnumber Generation Z females. “I think there’s a very deep issue going on,” says Lewis. “Something fundamental has shifted.” The survey included questions about fandom-related psychological traits, specifically, community belonging and self-identity. On both, Generation Z males scored lower than Millennials. “The findings related to sports are particularly germane from a cultural perspective,” states the report. “Part of the lack of Generation Z fandom is due to younger individuals having less intense feelings of group belonging in general.” Beyond the Playing Field, How Does Loyalty Shine? While the report doesn’t take a deep dive into the psychology behind Generation Z’s fandom differences, it does note that Generation Z came of age during a time of “ubiquitous social media, dramatic demographic changes, and a hyper-partisan political environment,” they write. “These dramatic changes may fundamentally alter how members of Generation Z engage with cultural industries.” Overall, Millennials were shown to have the “highest preference across all sports,” according to the report. Millennials are not only willing to watch games, but they also enthusiastically wear team gear. Baby Boomers are up for watching games but are less interested in following teams on social media. As it turns out, note the authors, Generation Z isn’t totally disconnected. Across the entertainment categories, Generation Z is similar to other generations. “Sports fandom is the outlier,” they state. In addition to sports, Lewis and Wang looked at six other fandom segments: new and now celebrities, social justice culture, athletic excellence, old school personalities, brand fanatics, and Trump Fans. Lewis points to the fact that whatever one thinks of Donald Trump, he does generate fandom. “That passion for whatever it is—sports, politics, movies, music—that’s really what drives the world,” says Lewis. Because of its importance, fandom is, notes the study, “increasingly actively managed,” whether to garner viewers, money, or votes. Recent trends such as streaming across devices, the ubiquity of social media, an increase in demographic diversity (not to mention a once-in-a-lifetime pandemic), have affected mainstream sports and entertainment. As a result, Lewis believes it’s important to study how fans are changing across generations. Leagues, teams, networks, studios, celebrities, and others need to understand why there is less engagement to formulate strategies for acquiring the next generation of fans. Authors Mike Lewis and Yanwen Wang As sports leagues and teams see more growth opportunities with women and increasingly diverse fan bases, Lewis wonders if some sports teams may alienate their current fan bases by marketing to non-traditional groups. “If you’re a league or a team, you’ve got a real dilemma at this point,” he explains. “If the NFL wants positive press, it has to market to the non-traditional fan segments. If they do that, are the traditional fan segments going to be less interested? Perhaps.” EmoryMAC’s research on fandom in the modern age is ongoing. A study into how eSports’ fandom differs from traditional sports fandom is also in process—as is research on how younger demographic groups see colleges and universities as institutions worthy of fandom. EmoryMAC will continue to make data and insights available on its fandom analytics website. “Looking at the fandom and passion of young groups now will tell you a lot about what the world will look like in 20 years,” says Lewis. I suspect that the era of sports being a mass marketing product and also a cultural unifier is probably going to end. Mike Lewis While that strikes Lewis as sad, he and EmoryMAC are merely following the data. “It may be the reality of where this is going,” he adds. If you're a reporter looking to know more - then let us help. Professor Michael Lewis is an Associate Professor of Marketing at Emory University’s Goizueta Business School. In addition to exploring trends in the overall marketing landscape, Lewis is an expert in sports analytics and marketing. He is available for interview - simply click on his icon to arrange a discussion today.
American Rescue Plan Act can do more to address racial wealth inequality
While the American Rescue Plan Act provided a major infusion of economic aid to low-income and middle-class Americans, more should be done to tackle racial wealth inequality and the structural issues in the tax code that allow those at the top of the income distribution to benefit disproportionately from tax subsidies, an Indiana University professor wrote. Goldburn P. Maynard Jr., assistant professor of business law and ethics at the IU Kelley School of Business, analyzed the American Rescue Plan Act's major provisions to determine their potential impact on racial equity, presenting his findings in Yale Law Journal. The article, "Biden's Gambit: Advancing Racial Equity While Relying on a Race-Neutral Tax Code," was published Jan. 9 and is part of a series that examines the novel tax implications of the American Rescue Plan Act through the lens of fiscal impoverishment, race, unemployment insurance, and state and local responses to economic crises. "While analysis reveals that the Biden Administration made some progress on (racial equity) through ARPA, in the months since its passage, federal courts have undermined some of this progress by halting race-conscious equity programs in ARPA," wrote Maynard, who worked as an estate tax attorney for the Internal Revenue Service before entering academia. His essay argues that "race consciousness is central to achieving" racial equity and "requires more than traditional policies that target financial need." The bulk of the stimulus measure focused on redistribution through the tax system, which does not incorporate racism and other dimensions of social inequity into its notions of fairness, Maynard wrote. To this day, the IRS does not collect racial data on taxpayers. He also noted that several policies targeted people or groups based on need. For example, the Department of Housing and Urban Development in November provided $14 million in American Rescue Plan funds to support fair housing organizations. But few new policies under the plan have addressed systemic discrimination, and most were designed to be temporary, such as the child tax credit. "Where these policies fall short is their lack of focus on historic systemic discrimination," Maynard wrote. "ARPA does not tackle the central issues that lead to racial inequity in the first place. Because RE requires the consideration social hierarchy and historical injustices, these provisions of ARPA are not as impactful as others." Several core policies in the American Rescue Plan Act target individuals or groups based on need, particularly racial minorities, he said. But several courts with conservative judges have treated race-based policies designed to counteract racial inequities as discriminatory in their interpretations of the Constitution. "Today, many courts equate efforts to promote RE with efforts to promote racial segregation. The odds of having all three branches in perfect alignment are slim," Maynard wrote. "ARPA also illustrates weaknesses in our current understanding of the Constitution as limiting the government's ability to redress historic wrongs. The status quo limitations are so strong that it is hard to imagine any large pro-equality advancements in the foreseeable future. "At our current pace, achieving RE will be a centuries-long project. This is discouraging, but highlights the importance of continuing the fight for wealth taxation and other levies on capital. It also underscores the smallness of the tax system when tackling a problem as embedded as RE. There are many decisions, regulations and laws that have embedded racism structurally and systematically. The tax system serves as an efficient compensator of harm, but this is not always what the victims of harm want. Instead of after-the-fact compensation for discrimination, victims of inequities often prefer to have the discrimination eliminated. That is the purpose of RE. The tax system can play an important role in promoting RE, even if it is not the leading one."
Aston University MBA students to work with SMEs through new Virgin Money programme
The Levelling Upstarts programme is open to all small and medium-sized enterprises (SMEs) The Virgin Money programme aims to match SMEs with MBA students from leading university business schools, including Aston Business School Applications for the programme are open and will run until the end of February. Virgin Money has launched an innovative new programme which gives SMEs the opportunity to partner directly with MBA students from leading universities, including Aston University, through digital workshops to help them solve specific business challenges. Levelling Upstarts aims to both empower regional SMEs to level up and to foster the next generation of business leaders. The programme will help SMEs overcome challenges such as building brand awareness, honing a competitive advantage or selling into new markets. They will receive tailored guidance and recommendations through access to MBA students at leading universities, including those from Aston Business School. The digital workshops for successful applicants will be held with Aston University in March and June. Around 40 businesses will be selected to take part in the initial round of workshops across the three business schools on the programme. Kirit Vaidya, Fulltime MBA programme director at Aston Business School, said: “We have been working with Virgin Money for over two years. We are excited to participate in the Levelling Upstarts programme. “Our students have experience and expertise in a range of areas including IT, marketing, operations and human relations in addition to what they learn on our MBA programme. “The students gain enormously from the experience of applying their knowledge to add value for businesses. The participating businesses gain from the students’ expertise and fresh perspectives in addressing specific challenges or to transform their business models in a fast-changing world.” Professor George Feiger, executive dean of the College of Business and Social Sciences at Aston University, said: “Both our students and the participating businesses can gain immensely from the Levelling Upstarts programme by sharing ideas, putting thoughts into practice, offering alternative perspectives, challenging the perceived norm, creating bold solutions and ultimately working in partnership to enable the SMEs to move forward. “It is also a unique opportunity for tomorrow’s entrepreneurs to gain direct access to the growing businesses of today, putting their training into practice and gaining new skills along the way, boosting their employability.” Graeme Sands, Interim Head of Business Banking at Virgin Money, said: “Our new Levelling Upstarts programme enables businesses to get focused, comprehensive and free support that otherwise may not be available to them. “By pooling the resources of talented business students and helping them think outside of the box, the programme can help to help solve their business challenges while simultaneously giving MBA students valuable and transferable skills to help their future careers. “It really is a win-win for both students and participating businesses.” Applications for the programme are now open and will run until the end of February. Businesses that wish to express an interest can email levellingupstarts@virginmoney.com for further information on how to apply.
Aston University encourages SMEs to sign up to Innovation Workshops to support business growth
SMEs with a registered or trading address in Birmingham, Solihull, Redditch, Bromsgrove or the Wyre Forest are invited to attend The full series consists of three workshops hosted by academics from Aston Business School and Birmingham City Business School The workshops are part of the Innovation Vouchers scheme to help drive innovation and business growth SMEs with a registered or trading address in Birmingham, Solihull, Redditch, Bromsgrove, or the Wyre Forest have been invited to attend Aston Business School’s Innovation Workshops. The free1 workshops are part of the Innovation Vouchers project, which is part funded by the European Regional Development Fund. The full series consists of three workshops hosted by academics from Aston Business School and Birmingham City Business School on 2, 9 and 23 February 2022 running from 9.30 am to 5.00 pm at The Eastside Rooms in central Birmingham. The academics include Innovation Vouchers project director Professor Nick Theodorakopoulos and head of Aston Business School Professor Pawan Budhwar. The workshops are on three key areas: 2 February 2022: Envisioning Growth through Innovation 9 February 2022: Leadership & Strategy for Innovation 23 February 2022: Marketing for Innovation Attendees who attend all workshop sessions will receive a ‘Managing Innovation in Business’ certificate from Aston Business School. Nick Theodorakopoulos, professor of entrepreneurship development and Innovation Vouchers project director at Aston Business School, said: “The Innovation Workshops support small-and-medium sized businesses to build their capacity to innovate and grow. “Independent evaluations from the previous project phases have showed that workshops have a positive impact on attendees, resulting in substantial increases in gross value added and new job creation. “The staff who deliver the workshops are experts in their field with excellent industry experience. I would encourage businesses owners to attend the Innovation Workshops and grow their business.” Tickets for the Innovation Workshops are available HERE. Notes to Editors 1The workshops are free for eligible businesses. However, de minimis rules apply. The support we plan to provide through the workshops will comply with the State Aid rules using the de minimis exemption (in accordance with Commission Regulation (EU) No 1407/2013, OJ L 352/1). Under this exemption a single undertaking may receive up to the limit of €200,000 of De Minimis aid from the Member State within which it does business and which provides the aid over any period of three fiscal years. To attend the workshops, you will be asked to complete a Statement of Previous Aid received under the De Minimis exemption and arrange for a director of your business to sign it. Using this information we will assess your eligibility to receive assistance. About Innovation Vouchers European Regional Development Fund The project is receiving up to £803,273 of funding from the England European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020. The Ministry of Housing, Communities and Local Government (and in London the intermediate body Greater London Authority) is the Managing Authority for European Regional Development Fund. Established by the European Union, the European Regional Development Fund helps local areas stimulate their economic development by investing in projects which will support innovation, businesses, create jobs and local community regenerations. For more information visit https://www.gov.uk/european-growth-funding Workshop Times and Dates All Innovation Workshops start at 9.30am and end at 5pm.
Aston University opens applications for Midlands’ Pitch Up investment competition
The Minerva Birmingham Pitch Up Competition is aimed at small business leaders looking for support with gaining investment Ambitious business leaders can improve their ability to win investment while boosting their profile The final will take place at Venturefest on 24 March 2022 at Eastside Rooms. Applications to Minerva Birmingham’s Pitch Up 2022 competition have opened. Formerly known as ‘Pitchfest WM’ and now in its 7th year, participating businesses have the chance to pitch head-to-head to a variety of investors to win a cash prize, and the ultimate accolade of Pitch Up Champion. Pitch Up is a collaboration, co-delivered by the Aston Centre for Growth, University of Birmingham Enterprise, and Minerva Business Angels, part of the University of Warwick Science Park Ltd. The competition provides the opportunity for ambitious business leaders to improve their ability to win investment while simultaneously boosting their business profile. Interested business leaders can apply here, applications close on 28th February. Shortlisted applicants will be supported through a workshop to refine their pitch deck, sharpen their pitching skills and receive valuable feedback in order to improve. The first workshop will take place on 20 January 2022. A select number of successful applicants will then advance to the next stage of the competition and have the opportunity pitch to an investor-led panel to gain more practice and receive more feedback. The best performing businesses will then be selected to pitch at the prestigious Pitch Up Final. This will take place as part of Venturefest WM on 24 March 2022 at Eastside Rooms, Birmingham. Venturefest attracts some 300 delegates including investors, entrepreneurs and innovators. The overall winner will be decided by audience vote and crowned Pitch Up Champion 2022, they will receive a cash prize and the option of additional support from Minerva Birmingham. Last year’s winner, Mark Platt Founder and CTO of Figura Analytics, said: “I was really amazed to win last year’s competition and delighted at the new connections and networks I made as part of the process. “The support received through the competition was fantastic; each workshop I attended allowed me to meet new people, learn new skills and left me energised and eager for more. Our winning pitch was definitely the result of some really insightful advice and feedback from the team and panel members.” The event has put more than 125 entrepreneurs directly in front of investors and helped bring in excess of £40,000,000 of investment to the region's small businesses to date. Paula Whitehouse, director of Aston Centre for Growth, said: “We are delighted to continue this collaboration, Minerva Birmingham Pitch Up exists to boost access to finance for the region’s most exciting and innovative young businesses. “The competition continues to play a crucial role in unlocking opportunities and investment for the future of high growth companies within the region.” Alex Toft, head of Minerva Business Angels, part of the University of Warwick Science Park Ltd. said: “It’s great to be part of such a collaborative relationship building not only support for our entrepreneurs but helping to build that support structure of finance and experience provided by investors. “This is a great opportunity for those earlier in their development cycle who would otherwise struggle to get noticed. We also continue to call on those who have never considered angel investing to join to reach out to us to find out more.” David Coleman, CEO of University of Birmingham Enterprise said: “Within the Midlands, there is a clear disparity between the large proportion of the UK's high-growth companies that are based here, and the investment secured. “That's why collaborative programmes like Pitch Up, which engage a diverse range of investors, are so important to increasing the likelihood of companies securing the funding they need.” Find out more about Pitch Up, by contacting centreforgrowth@aston.ac.uk, visiting Minerva Birmingham Pitch Up or apply now here.
Ask an Expert: Should Gaming Companies Release Their Latest, Greatest Platform Updates Early?
Late last year, Emory Business published an excellent article featuring research by Emory’s Ramnath K. Chellappa. An excerpt is included below and an attachment to the full article is attached as well. In June 2016, Xbox executive Phil Spencer told technology blog The Verge that it might be “crazy to announce something this early” as he unveiled the release of Xbox One X. It was a full year before the gaming console was set to hit the market. But Spencer, executive vice president of gaming at Microsoft, did so to arm customers with “as much information as possible.” He also wanted to communicate to developers what tools they’d have at their disposal. However, new research by Ramnath K. Chellappa, professor of Information Systems & Operations Management; associate dean and academic director for the MS in Business Analytics at Goizueta Business School, and Rajiv Mukherjee, assistant professor of information and operations management, Texas A&M University Mays Business School, shows that these types of preannouncements, no matter how informative, may not always be in a company’s best interests. According to Chellappa and Mukherjee, the value of preannouncing the latest and greatest features of a gaming console isn’t nearly as straightforward as the value gained by alerting customers to a new version of a Ford F150. While it may sound counterintuitive, as Chellappa and Mukherjee explain in their recent paper, “Platform Preannouncement Strategies: The Strategic Role of Information in Two-Sided Markets Competition,” sometimes the best way to announce new features in a platform-based world is by saying nothing at all. “We’re dealing with an ecosystem when we buy platforms,” Chellappa explains. “There’s a big difference between how products provide utility to an end-user versus how platforms provide utility to two sides of a market, one of which might be end-users.” When a company unveils a new version of a bicycle or television, there isn’t an ecosystem associated with those products. “But when you buy a gaming console, the value of you owning that console goes up as more of your friends play the same console,” Chellappa says. In their paper, the authors refer to this type of value as “same-side network effects.” In the platform world, Chellappa adds, there are also “cross-side network effects” in play—that the value of the gaming console goes up as more games are developed for that console. While many studies in marketing have focused on product preannouncements, the pair’s paper, published in Management Science earlier this year, is the first to study the use of preannouncements as a strategic lever for platforms rather than products. To conduct their research, the authors used game theoretic analysis to study three specific preannouncement strategies: formal (advertising, participating in tradeshows, developer training programs); informal (releasing information on a user or developer forum); and no announcement at all. The authors use Microsoft’s Xbox and Sony’s PlayStation gaming consoles as the primary setup in their paper (although their findings are generalizable to similar platforms). What Chellappa and Mukherjee found was that there were scenarios where it made sense to preannounce, but other scenarios where companies would be better off making either a lackluster preannouncement or none at all. “You would think that if I’m going to put out a new platform that has a lot of new features, I should inform the market about all those things,” explains Chellappa. “But what we find is that sometimes the competitive effects can force you not to announce much about the products you’re releasing because it might create a kind of a price competition.” For instance, a headline in an August 2020 blog in tomsguide.com comparing Xbox One X to Sony’s PlayStation 4 Pro, stated: “The Xbox One has more power than the PlayStation 4 Pro, but Sony fights back with an incredible game lineup and a lower price.” The article also includes insight including: Agents and Developers Create Business Model for Two-Sided Markets and Strategic Preannouncements Push Prices and Licensing Fees Higher The article is attached here – it’s well worth reading the entire piece. Gaming is a billion-dollar business – and if you are looking to know more about this subject – then let our experts help. Dr. Ramnath K. Chellappa is Associate Dean and Academic Director of the Master of Science in Business Analytics program. He is also the Goizueta Foundation Term Professor of Information Systems & Operations Management at the Goizueta Business School, Emory University. Ramnath is available to speak with media regarding this topic – simply click on his icon now to arrange an interview today.
