ECMgt.com:
July 2001 Volume 3, Issue 7 - Business
Models and Value Webs
Subject: July 2001 ECMgt.com: Business
Models and Value Webs
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Business
Models and Value Webs
Management Perspective
by Mitchell Levy, Author,
E-Volve-or-Die.com
Just when you thought things were settling down with business models, more changes are on the way. Improvements in efficiency of the supply chain and logistics, disintermediation, and continuing complexity are part of the future. However, the complexity of business models is simplified when we treat "business process" as simply "process", and create a fabric to support the exchange of commerce over networks. In a digital landscape, that fabric is called a value web.
Value webs describe the mesh that supports commerce on the Internet. Just like the physical dimensions of space, value webs can be understood along each axis of the process they support. The business dimensions of value webs include the supply and value chain, horizontal business applications, and static and dynamic transactions - best described as asynchronous (spot buy), and synchronous (Electronic Data Interchange).
Before discussing value webs, we need to decipher the alphabet soup of Internet business models that fit into them: B2B, B2C, A2A, C2C, peer-to-peer, the B2B2C portal model, dynamic pricing / exchange model, market-to-market / e-business networks, n-tierprise / extended enterprise models, and dynamic collaborative commerce (DCC), this is quite a lexicon! Each model has its place on the value web, and some models fit particular vertical markets better than others. Additionally, these models overlap, merge, and evolve over time. Internet business models such as direct commerce (VMI, for instance), complement sell-side and demand-chain management for partners, complementors, and enterprises alike. The merging of P2P (peer-to-peer) networks and web services is likewise enabling the evolution of 21st century "transparent commerce".
Lexicon:
Evolution of Networked Models:
The common thread in all these business models is that the network, not the computer, is the workhorse of process. EDI grew into supply chain automation; ACH (Automated Clearing House) and ATM (Automated Teller Machines) networks found a common interface; and the Web grew from websites to extranets, exchanges, and then to e-Marketplaces. The key industries affected by these models include finance, telecommunications, distributed computing, collaborative design and discovery (science and therapeutics), and entertainment, (especially music and cinema).
Vertical market e-Business models:
Successful Internet business models have appeared in manufacturing, energy, health care, distribution and retail sectors, and all on value webs. Manufacturing has leveraged supply chain automation through exchanges, e-marketplaces, including market to market models. In energy, exchanges and automated trades help the sensitive balancing of the power grid, which would not be possible were it not for networked process. Health care has built in the use of electronic point of service, document workflow in multi-partner portals, and soon, networked medicine. Distribution and logistics, especially Fed-Ex and UPS, have reinvented a new supply / value chain. Retail has embraced Vendor Managed Inventory (VMI), and "direct commerce", leading to apparent increase in supply, and simultaneous disintermediation and reintermediation. We'll look closer into each of these markets in the examples illustrated below.
Manufacturing:
International Truck and Engine Corporation has embraced coordination of manufacturing through complex coordination of engineering and manufacturing, going beyond the supply chain, and has seen dramatic gains. Through online collaboration with suppliers during design, International Truck is avoiding costly problems later in the process. Art Data, VP of Information Technology was quoted as saying: "If you reduce the design cycle by 50%, what's the value of that?" he asks. "We think it's worth millions." (1)
Likewise, the original concept of Covisint, used by the big three automakers, included collaboration of demand generated by rapidly changing inventory needs generated from better sales information generated from dealers. While implementation has been slow, larger manufacturers in heavy industry and technology, especially General Electric and 3M, use EDI and design collaboration to swiftly bring new products to market. In 3M's case, this includes coordinated delivery and processing of fine chemicals from smaller vendors, as well as more custom designed materials for specialty end-users.
Briggs & Stratton built a collaborative extranet, BriggsNetwork.com, for partners and suppliers. Original equipment manufacturers and over 35,000 distributors worldwide use the eight-language site to check manufacturing specifications, view upcoming sales promotions, and receive information about parts and warranties. (1) This involves sharing of engineering documents, flow charts for manufacturing, and logistics for coordinated assembly of new products, coordinated with its partners, over a "value web".
Diesel-engine-maker Cummins Inc. takes a similar approach with its business customers, such as Peterbilt Motors Co. and Kenworth Truck Co., who can access Cummins' extranet to receive updates on engine orders and view design prototypes of future models. Cummins has formed a customer council to evaluate ease of use and efficiency as it integrates new networked features and significant upgrades to the site. "To the extent that we're easier to deal with, they'll design their products to use our engines," says Brad Lontz, director of the E-business office at the $7 billion Columbus, Ind., company. (1)
Energy:
While the energy crisis in California may not seem the best example of complex value webs, without the efficiency of coordinated moving of power in blocks, the situation would be far worse. With demand outstripping capacity over 10% of the time, quick and efficient means of locating, negotiating, and paying for available power capacity across a broad network of providers will be essential to keep the State functioning. Electrical grids themselves are a complex network, and integrating its engineering requirements with the business process of acquiring power is a new and evolving axis on the value web.
Healthcare:
BlueCross Blue Shield uses a complex network of digital processes for its preferred hospitals and clinics, physicians, and end user consumers. Integrating patient records, payments to physician networks, and contracts with large hospitals is a complex task made easier by value webs. Fitting the classic model of supply and value chain integration, patient information and payments move countercurrent to each other. Other processes, such as monitoring efficacy of treatment, coordination of benefits, and using EDI for both patient documents and requests for payments are more horizontal applications. As HMOs begin to embrace monitoring of patient progress, in both clinical and laboratory settings, value webs will be necessary to both balance the benefit of treatments with availability of new and more effective health management options.
Distribution and Logistics:
Among the companies leveraging networked business process to trigger expansion and efficiency is Atlanta-based United Parcel Service of America Inc., which receives 85% of shipment information electronically. UPS picks up 13 million packages daily, and has 4,000 IT professionals, and is expanding its e- commerce services to include warehousing, phone center operations, billing and financial applications. The company's strategy is to become more involved in its customers' supply chains and to enable international commerce. (1) From the value web perspective, the dimensions of supply chain, package pickup, routing, tracking, accounting, and call center, must be integrated to create one seamless, efficient, and intelligently responsive e-business. Using value webs is the best way to intelligently wire a business for growth and profit.
Retail:
St. Helena, Calif., Franciscan Estates, the winemaking division of Constellation Brands Inc. can more effectively tune sales efforts since gaining access to more precise sales data from distributors. Using a software application from E.piphany Inc., data-mining specialists at the company now dig more deeply into the raw data. Franciscan can track not only which products are selling well through distributors, but also the details of sales at individual stores. "All of a sudden, our universe expands to 600,000 retailers," says Paul Stern, a company official in this project at the Gartner Conference (1) in Denver, April 2001."The distributor network has become so big that it's almost mandatory that we have access around them," he adds. "Our goal is to double sales volume in five years. We couldn't possibly do that without having access to the data".
Telecommunications:
Value webs are being used in wireless networks, especially with integrated e-commerce and locator ability based on combined GPS and cell positioning technology. Now services are being designed around providing directories of information, available through a small web browser, that allow views based on the nearest provider of services, wherever that may be. Coupled with transaction profiles, and electronic calendars, wireless networks are positioning themselves as the enabler of transparent commerce. The location of a user at any time will be compared with transaction profiles consistent with the user to facilitate "predictive merchandising".
Entertainment:
Perhaps the best examples of growing value webs are the peer-to-peer networks rapidly growing on websites such as Napster, Aimster, and other music swapping sites. While free music may appear to be the business model, in reality it is a complex network of discovery and coordination for distributed FTP nodes, including the ability to pay for purchased material. The peer-to-peer business model is a perfect example of a value web: there is a supply and value chain (music) discovery and transfer, and third-party payment, certificate, and encryption services. The key to value webs in this model is the vertical value chain which supplies the licensed content, the horizontal applications that coordinate file discovery and transfer, and the payment and encryption services which bind the value web together with commerce services.
Corporate Web Services:
Flowing through evolving value Webs- are the new ASPs - "Atomic Service Providers" and eBusinesses of one. Builders of these webs include Microsoft, Sun, IBM and Hewlett-Packard. Interlinked marketplaces and services, described by Forresterís exT e-business network model, use discovery services provide by UDDI, (Universal Definition and Discovery Interface). Micro applications can be used by business and IT users who require very specific functionality. The network has becomes the enterprise, with outsourcing of small IT processes. HP has announce "apps on tap", describing a new model where Global 2000 firms access applications through small service windows, paying for granular e-business function on a "per event" basis.
Summary: Evolution of e-business models requires a fabric that supports the various dimensions of business process. That fabric is the networked value web. Digital business models, in particular, require the dimensions of a value Web to support the orthogonal but integrated dimensions of supply and value chain, horizontal business applications, and the axis of synchronous and asynchronous transactions. Value webs are found in vertical markets including manufacturing, healthcare, energy, retail and distribution, and telecommunications. An internetworked economy requires a web where the network is the enterprise, and the competitive strategy of a business model determines its success and value in the ecosystem.
URLs:
Excerpts of interviews were quoted in sections on manufacturing and retail from:
Collaborative Commerce: Competing
in the Connected Economy
April 17-19, 2001, Chicago, Illinois
Gartner
Research
About
Mitchell Levy
Mitchell Levy, is President and CEO of ECnow.com (http://ecnow.com),
a training business service provider helping companies transition its employees,
partners and customers to the Internet age through off-the-shelf and customized
on-line and on-ground training. He is the author of E-Volve-or-Die.com, Executive
Producer of ECMgt.com, an on-line E-Commerce Management (ECM) e-zine, Chair of
comdex.biz at Comdex Fall and Chicago and the Founder and Program Coordinator
of the premier San Jose State E-Commerce Management Certificate Program (http://ecmtraining.com/sjsu).
Mitchell is a popular speaker, lecturing on ECM issues throughout the U.S. and
around the world.
I
hope you enjoy this eZine.
See you in cyberspace,
Mitchell
Levy
Executive Producer, ECMgt.com <http://ECMgt.com>
President, ECnow.com <http://ecnow.com>
Founder and Coordinator, SJSU-PD ECM Certificate Program <http://ecmtraining.com/sjsu>
To subscribe to ECMgt.com, please visit http://www.ECMgt.com or send e-mail to VMS3.Subscribe@ecnow.com?subject=ecmgt.Jul2001+subscribe
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FEATURE ARTICLE
Multi-Channel Selling:
Leveraging the power of the Internet while fostering channel partner relationships.
By Michael Johnson
Distributing products used to be cut and dried. Manufacturers turned out the product, and then established networks of resellers, VARS and dealers sold that product to consumers, and took a cut of the total profit. Enter the Internet, and the lure of selling directly to the end user in order to pocket all the profit. Dell Computer Corp. doesn't use indirect channels, and doesn't have to share the profits with its sales channel partners, so why should we, right?
This is the kind of dangerous thinking that cost major retail manufacturers like Levi Strauss, Reebok and Starbucks millions in direct-via-Web infrastructure costs and channel partner alienation. Within weeks of launching their online entities, these manufacturers scrapped the operations in response to channel conflict with distribution partners.
These companies' distributors aren't alone in viewing direct Internet sales as an encroachment on their space and the problem is not unique to the retail space. In a recent study by Reality Research & Consulting, 57 percent of the resellers surveyed said that they would stop recommending a product if the manufacturer started selling it directly to end-users. Fourteen percent said they would drop a brand completely if this happened. It wasn't long before a similar pattern developed among the B2B manufacturers.
This has left many channel-dependent companies perplexed as to how to leverage the Web while collaborating with their channel partners. Gartner counsels that Web sites, strong business processes and information exchanges must be combined with channel partner networks&emdash;to match customer desires to value chain competencies.
ECM quells the conflict
Joining "channel conflict" as a current eBusiness buzzword is "enterprise channel management" or ECM, which many experts say is the cure for channel conflict. ECM technical solutions address Internet infrastructure, forming new electronic bonds between manufacturers and channel partners.
According to META Group, by 2003, half of Global 2000 companies will deploy a comprehensive channel alignment strategy to improve the effectiveness of marketing and enhance customer and partner relations by leveraging brand equity, by creating a collaborative online sales effort and by improving the efficiency and quality of the user experience.
Manufacturers who want to have e-commerce on their website without being seen by their channel partners as encroaching on their space need to adopt a channel management infrastructure with these characteristics:
Rather than instituting a direct-via-Web model, an infrastructure solution that links the "Click to buy" button to an appropriate channel partner gives both manufacturer and channel partner the ability to leverage the Internet. A storefront with an appearance similar to the manufacturer's site is set up for the channel partner, so the buying experience is seamless and the customer never knows he/she has left the original site.
Because the same system serves the manufacturer and the channel partners, both parties have access to customer data that enables efficient promotions, cross- and up- selling, and support. Integrated architecture also allows existing Sales Force Automation and Customer Relations Management systems within each company to be used with expanded capability software in an integrated solution package.
The link between the manufacturer's and channel partner's Web sites allows the partner to benefit from the manufacturer's brand equity, and becomes an additional source of leads, which ultimately benefits both parties. The manufacturer can offer the end user an immediate opportunity to buy, and still leverage the relationship with its channel partner.
The channel-management infrastructure should keep track of sales performance information such as lead-to-sale conversion rates, initial response time, and revenue generated per channel partner.
If the enterprise is global, the channel management system must accommodate overseas channel partners and sales lead sources by supporting multiple languages and foreign currencies.
The system should incorporate extensive business rules to determine which partner is best aligned to close the sale. It should determine customer needs, record those needs and pass the information along to the most appropriate partner. This improves the quality and timeliness of the leads and allows for better lead conversion rates and customer service.
The Internet is an incredibly powerful tool for marketing, sales, service and supply that can also disrupt existing ways of doing business. Some of the largest online merchants have already stumbled over the problem of channel conflict. Those who don't want to repeat history are looking to Internet infrastructure solutions to grow their eBusinesses without destroying traditional channels, which continue to play a major distribution role now and in the future.
Michael Johnson is Chief Executive Officer and Chairman of the Board of InfoNow Corporation, a provider of channel commerce solutions based in Denver, CO.
All reader comments are available at our bulletin board. Please go to http://venus.beseen.com/boardroom/s/26553 to read them your self or to post your own comments.
CONTENT - ECMGT.COM E-COMMERCE NEWS
This section sponsored by ECnow.com, please visit them at http://www.ecnow.com
137
Million Wireless Data Users in North America by 2005
Mobility-focused
applications and consumer-based data services and devices will drive the North
American wireless data market to grow from 7.3 million subscribers in 2000 to
137.5 million subscribers in 2005
17
Million North American Voice Portal Users Seen by 2005
In the short term,
data portals will become much less glamorous and important than voice portals,
which are beginning to emerge in all of the key wireless carriers' plans, according
to Allied Business Intelligence.
EMC
Infrastructure Delivers 'Profound Cost Savings'
"Profound cost savings"
associated with an EMC information storage infrastructure are quantified in the
most significant new independent research on storage total cost of ownership and
value research presented in several years.
2001
PC market in U.S. will show first-ever decline
An IDC study showing softer-than-expected
U.S. PC sales has caused the research firm to lower its estimate for 2001.
The
Data Dilemma
Generating more data, but enjoying it less? According to
a recent study released by Forrester Research entitled, "Turning Data Into Dollars,"
you're not alone.
JPA
Forecasts One Million Web Sites with 3D Content by 2007
The market for
technologies that bring 3D graphics to the Web could see a dramatic expansion
over the next several years.
Itty-Bitty
Screens to Inherit the Web
No, it's not the last gasp for PCs. But it
is twilight time for the idea that the PC's big screen is the default display
for the World Wide Web. From now on, itty-bitty is beautiful.
Storage
networks seen as wave of the future
Storage Area Networks might not sound
very sexy, but that hasn't stopped some vendors and their customers from getting
excited about the emerging technology
Let's
Get It Right: High-Speed Access Is Still Booming!
It has become almost
`politically correct' by some segments to gnash our teeth and moan about the terrible
downturn of the economy and telecommunications
Women
in Technology: An Uncertain Future Says Deloitte & Touche Survey
Women
face an uncertain future in the high tech industry as findings from a national
Women in Technology Leadership survey.
New
Study Indicates Revenues From Mobile Services to Cover 3G Licensing and Infrastructure
318-Page Independent Analysis From Telecompetition, Inc. Projects $470 Billion
in Western Europe and $1.7 Trillion Worldwide for Mobile Data Services Alone.
Broad
Patent on Internet Updates Awarded
Seattle-based Punch Networks announced
that it has received a broad patent for the way it updates far-flung information
on the Internet.
Recent
trends point toward aggregated software development
Macromedia recently
surprised a lot of people by reaching out to acquire application server vendor
Allaire.
Bell
Labs Internet Traffic Discovery Could Point the Way to More Efficient Networks
A recent discovery by researchers at Bell Labs, the R&D arm of Lucent
Technologies, sheds new light on the nature of Internet traffic and could lead
to more efficient routers and other network components
Consumers
Have Control Over Online Privacy
A panel concludes that customers can
choose to do business with companies that they trust and avoid ones that they
don't.
720
Million Mobile Data Subscribers Expected by 2003
Despite market conditions,
the deployment and adoption of mobile data applications is evolving at a sustained
and rapid pace in a large number of countries.
E-Tailers
Can Make Big Splash With First Impressions
The projected boom in the online
population over the next few years presents e-tailers with an "enormous opportunity"
to win the loyalty of a whole new crop of consumers.
Giga
Releases Industry Study On Windows 2000 Server Showing Deployment Slow to Market
Giga Information Group analysis shows corporations have not sufficiently evaluated
cost, business benefits and risks of deployment
Information
Overload Not A Serious Issue
Experienced Internet users do not generally
suffer from information overload, according to a new study.
Gartner
to Expand Focus to Business Strategists
Gartner Inc. will launch a new
research service for business strategists responsible for planning business growth
Last
Hurdle for Internet to be Solved by Multi-Billion Dollar Language Translation
As increasing Internet penetration bridges the communications gap, the only
remaining obstacle to companies seeking to reach foreign markets is being able
to speak to every user in a language that they understand.
Semiconductor
IP Market Grew 40 Percent in 2000
Driven by the trend toward system-on-chip,
the worldwide semiconductor intellectual property market totaled $689 million
in 2000, up 40 percent from 1999 revenue results
---
E-PRODUCTS NEWS
Sharp's
new Linux/Java PDA
Sharp has announced a new PDA for the non-Japan market
which features an embedded Linux operating system and a Java application environment
National
Semiconductor improves architecture for Net appliances
National Semiconductor
this week unveiled a new architecture for its Geode family of system-on-chip products
IBM
reveals new strain of chip power
IBM says creating superfast, power-efficient
processors for handheld computers requires only a small stretch.
Net
Privacy Group Offers Free 'Snoop-Ware'
A non-profit Internet privacy group
released free software that it says enables online users to find out whether they
are being tracked and, if so, who is doing the tracking...
Chip
company aims at multiprotocol wireless
Eyeing the increased use of multiple
standards in home wireless networks, Embedded Wireless Devices came to Embedded
Processor Forum in San Jose, Calif., promoting a range of chips aimed at devices
from information appliances and household goods to audio and video devices.
Faster
Storage Networking Devices Loom On The Horizon
New 2G bit/sec. Fibre Channel
storage devices are starting to become available, with the promise of doubling
the speed of data transfers within storage-area networks, but analysts disagree
on how useful they'll be in mainstream applications.
Red
Hat Linux 7.1 Deluxe Workstation
Red Hat Linux 7.1 Deluxe Workstation
provides everything you need to get started with Linux, either standalone or to
build a local-area network of up to five Linux machines.
Sierra
Wireless Integrates 1xRTT Technology Into Embedded Module.
Sierra Wireless
announced the development of the Sierra Wireless CDMA 1xRTT Embedded Module.
Verizon
pitches managed network services
Regional Baby Bell Verizon rolled out
two new managed network services offerings.
Secure
mobile phone introduced
It used to be that top-secret communication gadgets
were reserved for the military and security services.
Record
Industry Sues MTVi
Advanced instant-messaging technology could help Microsoft
break a string of mediocre-selling upgrades to its ubiquitous operating system.
Oracle,
Sun Developing E911 Applications
Oracle and other key vendors are pushing
forward on technology designed to spur location-based services, despite evidence
that a pivotal part of this wireless movement has slowed down.
Second
Exchange Patch Runs Into Trouble
Some system administrators say that Microsoft's
second software fix for an Exchange mail server bug is causing those servers to
hang-just like the first patch.
Internet
appliances: Down, but not yet out
With all the Internet appliances dotting
the floor of Computex trade show, one might think that the scaled-down computers
are selling well
Nothhaft
Knows What VPN Managers Want
A former CEO sells a service that he says
would solve the main problem preventing businesses from using Virtual private
networks in a carrier environment technology.
Microsoft
To Embed Messenger In Windows XP
Microsoft Corp. has unveiled plans to
embed its Messenger software in the Windows XP desktop, making the instant messaging
tool now available through MSN readily available on a user's desktop.
Bluetooth
Too Affordable and Too Useful Not to Succeed
Bluetooth promises a world
without wires. But it is facing competition from 802.11, a rival high-speed local
wireless network standard popular in the U.S.
Oracle
Unveils New Database, Revised Pricing
Oracle has finally delivered the
long-promised upgrade to its key database product, along with a price cut that
it hopes will keep the expensive software competitive with offerings from IBM
and Microsoft.
New
Explorer to add outside links
The newest version of Microsoft Corp.'s
Internet Explorer web browser will be able to direct Web page readers to other
sites without the permission or even the knowledge of the page's owner.
Intel
Transistor Claims Speed Record
Intel said it has created the world's fastest
silicon transistors, tiny switches that turn on and off nearly 1,000 times more
quickly than those that power today's microprocessors.
Sygate
looks to secure remote workers with new software
Aiming to add new layers
and strength to the security that keeps remote workers safely connected to corporate
networks, Sygate Technologies will release Version 2.0 of its Sygate Secure Enterprise
suite.
Netscape releases
preview of browser upgrade
AOL Time Warner's Netscape Communication subsidiary
has made available a preview version of its upcoming Netscape 6.1 Web browser.
---
E-SERVICES
Band-Aids
Won't Cure Airlines' Customer Service Cancer
Sometimes "the news" requires
a serious reality check. Such is the case with the recent report that Orbitz has
taken off in a big way following its official June 4th launch.
Java's
widening gulf
While war has not yet been declared among Java application
server vendors, JavaOne conference in San Francisco did showcase their lack of
unity.
SBC
Introduces Easy-To-Install Home And Small Office Networking For DSL Customers
SBC offering 2Wire HomePortal gateways to link multiple PCs to one DSL connection,
deliver broadband access and applications throughout the home, office
IT
Role in Wireless Deployment
Information age companies are about one-eighth
of the way to becoming wireless. I can't help but wonder whether Industrial Age
companies, at the same juncture, recognized that they were migrating to a horseless
world.
Getting
CRM Right
A new CRM study released by Forrester Research has found that
most CRM efforts are not focusing on the customer, and that few involve all of
the necessary CRM departments in their efforts.
Telia
to Build New Generation Internet
Telia will be the first in Europe to
build a commercial network based on the latest Internet protocol, IPv6.
Netscape:
We're in Media, Not Browser Business Now
AOL Time Warner Inc is remaking
its pioneering Netscape software business into an Internet media hub brimming
with Time Warner artists and publications
BT
Cellnet Adoption of Reverse Billing Set to Boost M-Commerce
BT Cellnet
is preparing to introduce reverse billing for third-party content and service
providers a move that'll provide a major boost for the m-commerce industry.
Hughes
Network Systems Announces First System to Provide Broadband Wireless Access
Broadband leader Hughes Network Systems announced that its Point-to-MultipointAIReach
Broadband 9000 fixed wireless system is now also capable of operating as a Point-to-Point
system at a full North American DS-3 level
IBM
Swings for Speedy Checkout at U.S. Open
IBM and Bass Inc. are supplying
point-of-service systems to help buyers of memorabilia check out fast at the U.S.
Golf Association's U.S. Open.
Microsoft
brings keyword search to UDDI
Microsoft and Realnames teamed on a keyword-based
searching service Thursday for the UDDI registry, adding one of the first new
features to a directory that has been billed as a "Yellow Pages" for the Internet.
Boeing
Pushes Net Strategy
Aircraft maker to sign biggest airlines to on-board
Web access program
7-Eleven
expands e-financial services
Traditional convenience-store chain 7-Eleven
has expanded testing of Vcom, its financial services kiosk.
GM
Launches Wireless Health Care Pilot
More than four months after announcing
its initiative to promote the use of handheld devices among physicians, General
Motors launched the first pilot phase of its wireless health care initiative.
Microsoft
enhancing messaging tool
Microsoft Corp. is enhancing and expanding the
use of its instant messaging software, a move the software maker believes could
give it dominance over rivals America Online and Yahoo! Messenger.
Can
Personalization Keep Bank Customers Loyal?
A new CRM application from
Point Information Systems, Inc. promises to help banks identify sales opportunities,
forecast possible customer defections, profile competitors, and optimize customer
retrieval strategies...
Napster
rival finds file-trading converts
Disappointed with Napster's decision
to filter popular songs from its file-swapping network, turn to Audiogalaxy, a
relatively new alternative for free music downloads.
Nokia
Advances the Connected Home with New DSL Gateway
Nokia's MW1324 Enables
In-Home Networks Through Wireless LAN and HomePNA Options
Zframe
Sends Web Page Replicas to Mobile Devices
General adoption of mobile devices
has long been hampered by the fact that screen sizes vary, processors can't handle
data-intensive applications like graphics, and access to the Internet is difficult.
Windows
XP And MP3s May Not Mix
Microsoft is weighing how much support it will
offer in its upcoming Windows XP operating system for MP3s, a popular music format
that competes with the company's own Windows Media technology.
AT&T
Balks on High-Tech Cable Box
When AT&T pushed back plans for a high-tech
cable TV set-top box last week, the future of interactive TV in the United States
dimmed a bit.
Finally,
DSL Service That Rocks
DSL provider Speakeasy will start offering, what
else, a music subscription service to its customers thanks to Bertelsmann's Emusic.
Carnivore
'No Problem' for New E-Mail Encryption
If a new software research project
proves successful, Web surfers will be able to send secure e-mail and instant
messages that are not only automatically encrypted, but are further hidden from
prying eyes by a stream of fake data.
E-MARKETING
Automakers
Need To Focus on Web Branding, Not Online Selling
Automakers hoping to
leverage the power of the Internet to generate new car sales need to concentrate
less on online selling and more on building brand awareness.
Net
Phone Companies in Darwinian struggle
In the latest signs of the rapid
consolidation in the Internet telephony market, ZeroPlus.com has shut down its
services, and rival PhoneFree changed its name and strategy.
IT
Must Look Beyond the U.S.
The next major shift in the use of IT will obviously
be toward wireless and mobile commerce.
The
Big Dogs Are Killing E-Business
While scouring the trade shows like InternetWorld
and eBusiness Expo for products that matter to the small business, I've discovered
dozens of wonderful tools for customer relationship management, office productivity
and e-commerce enabling of businesses.
Wireless
Advertising Association Set to Unveil New PDA and WAP Standards
The Wireless
Advertising Association, which recently became a fully independent organization,
plans to announce new draft standards for mobile and wireless advertising.
From
Elvis to Kobe: Selling Celebrity Online
Buying a piece of fame online
is easy because thousands of online celebrity auctions fill the pages of such
Web auction sites as Yahoo! and eBay.
International
MTU Market Set to Grow to $9.8 Billion in '05
Given the geographic expansion
and emergence of new players in non-US markets, the international Multi Tenant
Unit market is poised for strong.
Does
Your Team Measure Up?
How do you know if you're getting the most bang
for your buck-or body? Try looking at sales per employee as a measure of efficiency.
3Com
sales plunge, firm drops cable/DSL modem line
The company said it was
making good on its pledge to streamline its businesses by completely jettisoning
its line of consumer cable and digital subscriber line modems.
European
Net Travel Market Surging
Echoing the success U.S. online travel companies
have enjoyed, data released by Jupiter MMXI said that European travel Web sites
are also seeing a surging demand for their services...
ExciteAtHome
Bails Out of Key European Markets
High-speed Internet service provider
ExciteAtHome Corp. it was shutting down its operations in France, Germany and
Spain, becoming the latest victim of a sharp slowdown in Internet advertising.
Scarcity
of Tools and Technology Limits Feasibility of U.S. Wireless Applications
Despite
rudimentary interfaces, poor national cellular coverage, and other development
challenges that are unique to the U.S., Sun, and others, foresee a huge opportunity
in the number of users cell phone and PDA-based applications could reach.
E-Tailers
Can Make Big Splash With First Impressions
The projected boom in the online
population over the next few years presents e-tailers with an "enormous opportunity"
to win the loyalty of a whole new crop of consumers.
Siebel
extends e-business apps to Compaq iPaq handheld
Siebel systems announced
the availability of Siebel Sales Handheld on Microsoft Pocket PC for the Compaq
iPaq Pocket PC.
Mercury
Interactive Casts Net Around Global Sales Force
Keeping everybody in a
business on the same page can be tough, even under the best of circumstances.
When the business spans two continents one of which is not known for its telecommunications
infrastructure the task can be Herculean.
Online
Advertising Stabilizes
With about a month to go before Yahoo reports its
second-quarter results, Wall Street analysts are scurrying to predict when it
will be safe for investors to buy stocks of companies that depend on online advertising
Broadband
Access Technologies Jockey for Subscribers
Broadband is hot with the installed
base of worldwide broadband subscribers forecasted to exceed 21 million by the
end of 2001.
The
Serious Business of Mobile Entertainment
Forrester Research has predicted
that multiplatform gaming will generate global revenues of $26 billion by 2005,
and that mobile phones are second only to broadband in terms of the impact the
technology will have on the digital entertainment sector.
Qwest
gets NASA contract extension
Qwest Communications International Inc. has
won a $25 million, five-year contract extension providing high-speed Internet
access to NASA's research and education network.
Wireless
Looks to New Markets for a Lift
The North American wireless data market
to grow from 7.3 million subscribers in 2000 to 137.5 million subscribers in 2005.
Viral
Campaign Looks Like Another Radiohead Hit
Capitol Records Inc.'s viral
marketing approach seems to have paid dividends again for alternative rock group
Radiohead.
Corporate
Web Sites Aren't Servicing Reporters Needs
A recent study conducted by
Vocus showed that corporate Web sites need to improve content and navigation in
order to get better news coverage.
European
E-Tailers Face Regulatory, Cultural Barriers
The differences in retail
regulations among European nations correlate strongly with less online shopping
---
SUPPLY CHAIN NEWS
This section sponsored
by - Sameday.com, please visit them at http://www.sameday.com
New
Oracle package takes aim at B2B rivals
Oracle has put Ariba and Commerce
One in its crosshairs with the release of a new procurement package that analysts
say will be cheaper, quicker to install and better integrated with e-business
products than those of its rivals.
Amazon
Outsources Electronics Sales
Further paring its focus to its strong suits
of marketing and customer service, Amazon.com has outsourced part of its electronics
fulfillment to Overstock.com
Suppliers
to ride new self-service app wave
Self service applications that give
suppliers access to a company's sensitive supply-chain planning data promise to
minimize inventory and distribution costs
Taming
the Bullwhip Effect
On average, a firm loses anywhere between 9 and 20
percent of its value over a six-month period due to supply chain problems.
CIM
2.5 advances interoperability standards
IT managers say the interoperability
of systems may be inching closer to reality with the release by the Distributed
Management Task Force of the final version of the Common Information Model.
Orange
Launches Mobile Consultancy
Orange became the first mobile network operator
to launch a standalone wireless services consultancy.
Multivendor
Storage Deal Seen As Potential Support Boon
Analysts said an agreement
announced among six rival makers of data storage devices could provide users with
tested multivendor storage area networks and, more importantly, make it easier
for them to get customer support.
Amazon
to focus on building up existing stores
Amazon plans ro focus on strengthening
and expanding its four existing international stores over expansion into new markets
for the time being.
Supply
Chain Vendors Wait Out Downturn, Emphasize ROI
Proven return on investment
measures are required today to sell supply chain apps
Users
Extend Use Of Web Portals To Supply Chain For Materials Procurement
A
number of companies are putting a new twist on portals, using these applications
to connect with partners and suppliers.
EMC
in Sync with New Oracle Database
Information storage company EMC Corp.
is checking interoperability and integration of Oracle9i with EMC systems and
software for more than 9,000 global installations running the combined technologies.
Penske
Logistics to Install Wireless Terminals in 4,000-Vehicle Fleet
Penske
Logistics plans to roll out smart wireless terminals to its 4,000-vehicle fleet
starting in September.
SAP
Pushing CRM Applications At User Conference
Business applications vendor
SAP is using its Sapphire 2001 user conference to announce upgraded customer relationship
management applications and to try to convince users that it's a viable vendor
of the software.
The
Internet Gets Reborn
Microsoft calls it .Net, HP calls it eSpeak, and
Sun calls it ONE: But it all adds up to the biggest change in computing since
the invention of the browser.
NetApp
Oracle's NAS vendor of choice
Network Appliance demonstrate the first
Direct Access File System interfacing with Oracle Disk Manager on the new Oracle9i
Data Server platform
Narrow
Path
Choosing an application service provider is a gamble, with uncertain
odds on the viability of the business plans
J.D.
Edwards Pins Recovery Hopes On Collaboration
At its annual user conference,
struggling business applications vendor J.D. Edwards is emphasizing collaborative
commerce technology.
Virgin
Picks Sprint for U.S. Move
Richard Branson's Virgin Group has chosen U.S.
telecom operator Sprint Corp as its partner for a $1 billion assault on the North
American mobile market.
Vendor
Consolidation Coming
Massive consolidation will occur in the IT industry
in the next year or so, producing players that will dominate systems integration.
I-Manager:
Devon Cohen
Meet Devon Cohen, CEO of Ford Motor's dealer-led online company,
FordDirect.com.
Lotus
to announce link to WebSphere
In the first of a series of steps to connect
IBM subsidiary products across platforms through its WebSphere Internet infrastructure
software.
---
CONTENT, PORTALS & COMMUNITY
No
Execs Need Apply
Market-battered tech firms are increasingly doling out
new stock option packages, but leaving executives out of the bounty.
Yahoo
scores victory in Nazi case
Yahoo has scored an early-stage legal victory
in its ongoing attempt to post material and auction items--including Nazi memorabilia--on
its Web site that may be offensive to people in other countries.
Former
Dot-com Workers Find Homes At Porn Sites
As IT workers receive pink slips
by the droves, some are finding job security in an industry that shows little
sign of slowing: online adult entertainment.
Amazon
to sell PCs Online
Amazon.com will sell personal computers online and
market books to institutional buyers, including businesses and government agencies,
later this year.
World
Supply of Dull Business Headlines Said To Increase
There's a general trend
toward publishing more international business lately, on the theory, I guess,
that our inescapably global economy has gotten readers of the financial pages
more interested than ever in news from abroad.
Cuban's
Arrest Angers Journalists
A Cuban reporter whose anti-Castro articles
were published on a website hosted by another country is jailed, raising an outcry
from a media watchdog group.
Aggravated
consumers pummel PCs
A quarter of the 4,200 PC users who participated
in an online tech store's survey have confessed to physically attacking their
computers at one time or another.
For
Online Shoppers, Some Battles Not Worth Fighting
Can an e-tailer make
a simple mistake without being punished? Are e-tailers human enough to err, and
can customers be divine enough to forgive?
Salon:
Last One Standing
With the demise of Feed, one of the Web's first general-interest
online mags, only Salon survives as an independent on the Web.
Landowners
get paid for cable lines
Conceding that digital information is not freight,
a subsidiary of Norfolk Southern Corp. has agreed to pay landowners along its
tracks when it installs underground fiber-optic lines.
Judge
snuffs out ban on cigarette sales
A federal judge has struck down a New
York state ban on mail-order, Internet and telephone cigarette sales intended
to prevent smoking by youths, saying the law violated interstate commerce provisions
of the U.S. Constitution.
Worm
Invades Microsoft Servers
DoS program has been discovered on several corporate
networks
Free
browser tool exposes Web bugs
In a gesture intended to heighten awareness
of online tracking techniques, a non-profit privacy group has released a free
tool that exposes surveillance codes hidden in Web pages.
Reporters
Win Web Logs Fight
The U.S. government belatedly drops its request for
the Web logs of a journalists collective in Seattle.
Search
Engines, Portals, Big Web Draws
About 95 million Americans last month
clicked on search engines, portals and online communities, giving such sites the
greatest volume of Web traffic, according to a survey.
IM
rivals can't connect on messaging plans
Barriers between instant messaging
products are proving hard to dismantle, sparking new tactics in a brewing standards
war over the nascent technology.
Online
Billing: Clever Idea, Lousy Deal
Somewhere in the zone between idea and
execution, e-commerce suffers from a case of diminished returns.
Techies
Not Extremely Happy
Ziff Davis Media just launched ExtremeTech.com. It's
a direct attempt to take on techie sites like AnandTech and Tom's Hardware Guide
popular because they are peer-level sites.
Book
Awards to admit e-books for the first time
The National Book Foundation
will now consider literary works in e-book form for its National Book Awards,
the foundation announced at BookExpo America.
Top
Tech Salaries Down, First Time Since 1985-Study
Salaries for the highest-paid
bracket of information technology managers have fallen for the first time since
1985.
Premium
Processing For H-1Bs Draws Praise, Criticism
The U.S. Immigration and
Naturalization Service next month plans to start a premium processing service
that would charge H-1B visa applicants an additional $1,000 but guarantee them
a decision in 15 days.
The
Wrong Way to Do Dirty Tricks
A startling report from the Minnesota Senate
race provides a stunning example of American politics as tech-cluelessness combined
with petty nastiness.
...
GOVERNANCE & GOING GLOBAL
Broadband
Bill is a 'Dangerous Fantasy'
A broadband bill before Congress is a "dangerous
fantasy," TechCentralStation.com host James K. Glassman told the House Judiciary
Committee in testimony today
Changing
times in tech mecca
Computex, the world's third-largest trade show, highlights
chip rivalries, handheld computers and the problems facing Taiwan's tech-heavy
economy.
Blue
Martini Goes Continental
Blue Martini Software is headed for Europe with
a few new tricks in its bag. The CRM software company with the intoxicating name
has opened a handful of European offices and is toting new language versions of
its application suite.
Nev.
lawmakers OK Internet gambling
The Silver State has become the cyberstate
as Nevada lawmakers voted to permit Internet gambling by casinos there.
New
Navy-Marine intranet aims to cut legacy apps
The Navy-Marine Corps Intranet,
the largest single government IT project in history, is on schedule. And as work
continues, thousands of legacy applications are being discovered and excised.
Broadband
Deregulation is Essential
The Eastern Management Group Addresses Citizens
for a Sound Economy Foundation (CSEF) on the Merits of the Internet Freedom and
Broadband Deployment Act
Ax
moldy, Cold War tech-export law
Computing power dwarfing that used to
build the most advanced weapons is now available to foes of the United States,
making computer-hardware export controls a waste of time.
Defense
sites track visitors
One in four Web sites run by the Defense Department
have no privacy statement posted, according to an oversight report released.
Senate
Passes Bill To Ease Copyrights For Net Learning
The U.S. Senate passed
a bill that would ease copyright restrictions on Internet-based content to allow
more opportunities for distance learning.
Washington
State's Highest Court Upholds Anti-Spam Law
The Washington State Supreme
Court unanimously overturned a lower court ruling that had struck down the state's
anti-spam law.
Florida
Utility Uses CRM To Conserve Energy
Florida Power & Light Co. has
launched an Internet-based home energy survey designed to help its customers trim
their electricity consumption.
Turkey
restricts Web content
Turkey's parliament passed a law that subjects the
Internet to the same restrictions as print media but abandoned plans to require
official permission to set up a Web site.
Legislation
urged to protect corporate data, theft of e-mail addresses
A congressional
subcommittee exploring the need for new cybercrime legislation was urgedby private-sector
officials to back laws protecting the confidentiality of security data shared
with the government.
FTC
Member Says Privacy Concerns Becoming 'Hysteria'
Federal Trade Commissioner
Thomas Leary said that he doesn't expect the FTC to impose significant regulations
on B2B exchanges or privacy issues.
State
Department behind the Internet times
At the State Department, where government
officials are responsible for watching the world, thousands of employees must
get in line to use the Internet.
House
Leader Resurrects Carnivore Concerns
House Majority Leader Richard Armey
wants to look into privacy concerns associated with the FBI's controversial Carnivore
e-mail surveillance technology.
Report
Supports Move To End IT Export Controls
A group of 28 national security
experts today released a report recommending that Congress eliminate all federal
export controls on computers, because the existing limits are no longer effective.
Bangalore
Fishes in Troubled U.S. Tech Waters
India's technology state Karnataka
is launching a drive to lure U.S. industry players facing cost runs due to a sectoral
slowdown into relocating their operations to its capital Bangalore.
eBay
Lawyer Lobbies U.S. for Spam Bill
Stricter laws are needed to protect
Internet auction users from spammers who harvest e-mail addresses from auction
sites, an eBay executive told U.S. lawmakers at a House subcommittee on crime
hearing on cybercrime.
Germany
to Update E-Commerce Law
The German government has drafted an update of
a 1997 teleservices data protection law that would bring it more in line with
the European Union's recent e-commerce directive and ease the heavy regulatory
burden on e-tailers.
Bar
Association May Oppose UCITA
The Uniform Computer Information Transactions
Act faces more woes, this time from the American Bar Association.
...
PARTNERS & DEALS NEWS
MSN
U.K. plays with casino Web site
Microsoft's U.K. portal has inked a two-year
marketing deal to provide advertising and promotions for an online casino, Web
- based gambling company Gaming Internet.
Informix
shareholders approve database sale to IBM
Informix said its shareholders
have voted in favor of an agreement under which the struggling company would sell
all the assets of its database business to IBM, clearing the way for the $1 billion
deal.
Acapel
talks up Siebel alliance
The U.S. division of Japanese software maker
Softfront, is betting that VOIP enhancements for CRM software will give the company
a beachhead on American shores.
IBM,
Campus Networks Partner on Wireless Services
IBM Global Services is looking
to advance its efforts on college, government, and corporate campuses through
a new partnership with Campus Networks.
California
ISPs unite to fight Baby Bells
California's Internet service providers
have united to form a common front in fighting new strategies among the Baby Bells.
NetZero,
Juno to unite in merger
Free Internet service providers NetZero and Juno
Online Services said that they have agreed to merge, combining the last big independent
players still operating in the once-hot free Net access market.
AOL,
GM Extend Web Car Sale Deal
America Online is extending through January
2002 an alliance with No. 1 auto maker General Motors Corp. to promote the sale
of cars on the Internet.
Microsoft
to work with Yugoslavia
Microsoft Corp. signed a letter of intent to computerize
public services in Yugoslavia.
Intel
and Comcast to Develop and Trial Home Connectivity Products
Intel and
Comcast Cable Communications, announced that the two companies have agreed to
develop, test & trial a set of home networking products, including residential
broadband gateway, wireless network adapter & cable modem.
Cendant
In Talks To Acquire Galileo
Travel and real-estate franchising firm Cendant
Corp. confirmed that it is in talks to acquire Galileo International Inc., a computerized
travel reservation company.
Alcatel
makes deal with Thomson
French telecom equipment supplier Alcatel SA has
signed a preliminary agreement to sell its digital subscriber line modem unit
to French consumer electronics group Thomson Multimedia
Business
2.0 folds into AOL Time Warner
AOL Time Warner on Thursday agreed to buy
Business 2.0 from its publisher, Imagine Media.
AOL
In $200 Million Pact With Chinese PC Maker
AOL and Beijing-based PC manufacturer
and Internet service provider Legend Holdings Limited announced the formation
of a joint-venture company to develop consumer interactive services for the Chinese
market.
Scientific-Atlanta
and Broadcom Collaborate in the Development of Dual-Channel MPEG-2 Encoder Chip
Broadcom Corporation introduced a dual-channel MPEG-2 encoder chip for next
generation personal video recorder set - top boxes.
NEC
signs pact with Veritas, Oracle
Aiming to boost its global profile, the
Japanese chip maker will make its storage area network systems compatible with
Veritas and Oracle Japan products.
AOL
tickets LastMinuteTravel.com
Online airfare broker LastMinuteTravel.com
said it has booked a multi-year agreement with America Online, which will make
its selection of just-released travel offers available through AOL travel channels.
AT&T
Board Sets Wireless Split-Off Date
Marking a significant milestone in
its restructuring, AT&T announced that the split off of AT&T Wireless
as a separate independent company will occur on July 9, 2001.
Real
Networks, Cisco Team To Offer Streaming Media
Real Networks Inc. said
it has teamed with Cisco Systems Inc. to incorporate its RealSystem iQ audio and
video broadcasting technology into Cisco's content networking product line
Tincell,
FlashSpot Networks Partner on Voice Advertising Services
Tincell announced
a joint marketing agreement with FlashSpot Networks, an interactive audio advertising
sales company.
How
to Be a Wealthy Failure
Studies show many merger and acquisition deals
fail to create value, but if you're after a golden parachute.
European
aircraft maker sets in-flight Internet plans
European Aiplane Manufacturer
Airbus Industrie announced a deal under which it will invest in Tenzing Communications
and use the Seattle-based vendor's wireless communications technology to provide
e-mail and Internet access to airline passengers.
B2B
market ripe for mergers
Too many firms make business software; smaller
ones could be gobbled up
---
MOVERS & SHAKERS NEWS
From
A List To Delist
Nasdaq delistings are up sharply from a year ago, as
the dead dot-coms formally are interred.
HP
pulls TV ad after icy response
Hewlett-Packard pulled a TV commercial
showing children coordinating a snowball attack on a streetcar using mobile phones
after allegations that it led to copycat attacks, Britain's TV watchdog.
Systems
glitch brings NYSE trading to a halt
The New York Stock Exchange stopped
all of its trading for more than an hour because of data connectivity problems
that continued to affect about 10% of the stocks listed by the exchange.
Hot
on the Scent of Information
Animals hunt for prey using, among other things,
scent. It turns out that humans searching for info on the Web use, among other
things, scent as well.
MP3.com
hit by Another Sour Legal Note
A Newe York judge found MP3.com liable
for copyright infringement in a lawsuit brought by the music publishing division
of the Zomba Group of Companies.
Finger-pointing
after the implosion
Who should shoulder most of the blame for the dot-com
debacle and the pain and suffering of individual investors?
Proxim
to Defend Against Claims by Agere and Symbol
Proxim, Inc., the pioneer
in wireless broadband networking, announced its intention to vigorously defend
against recent patent infringement claims by Agere Systems, Inc. and Symbol Technologies,
Inc.
Always
one eye on the hackers
Most of the companies gathered at tInternet Security
Conference 2001 had some permutation of the phrase, "we can help stop hackers!"
displayed prominently on their booths.
M-Commerce
Faces a Premium-Rate Threat
The revelation by the Independent Committee
for the Supervision of Standards of Telephone Service in the U.K. of a concerted
crackdown on premium-rate Short Message Service and Wireless Application Protocol
services.
Bush
taps Unisys VP for e-government post
Mark Forman, A vice president for
e-business at Unisys, was named associate director for information technology
and e-government
FCC
Chief Warns Cable Industry
The head of the Federal Communications Commission
is prodding cable companies to keep consumers at the forefront as they zoom into
the digital world with new TV, Internet and phone products.
Apache
Software server compromised by break-in
The Apache Software Foundation,
the open-source software group that distributes the popular Apache Web server
software, is slamming crackers who broke into its public computer server recently.
HP
Warns Of Widening Slowdown In IT Spending
Hewlett-Packard, which already
expected a weak revenue showing in its current fiscal quarter, said it's becoming
even more cautious after last month's sales were soft in all parts of the world.
Windows
XP may steer users' Web choices
Microsoft is extending to Windows XP a
new technology that could give the company some control over consumers' access
to sites, content and services on the Web.
Silenced
Professor Sues SDMI, RIAA
The Princeton professor whose digital-music-cracking
research was squashed by the Secure Digital Music Initiative organization last
April filed suit against the SDMI and a group that represents major record labels
in a New Jersey federal court.
New
Wireless Architecture Greatly Extends Coverage Area
New architecture for
next-generation wireless systems for cellular phones proposed by SUNY Buffalo
researchers could provide an efficient and flexible way to extend cellular coverage.
Nortel
warning highlights telecom woes
Nortel Networks' profit warning Friday
may have just ushered in the new world order of slower growth for the telecommunications
sector.
ExciteAtHome
to make closures
ExciteAtHome, a provider of high-speed Internet access,
announced it will close its media operations in France, Germany and Spain.
Microsoft
Not Interested in Owning Cable Company
Microsoft Corp. has no interest
in owning a cable company, although it continues to push its interactive television
software
State
Energy Probes Look Into Traders' Tech Habits
State officials investigating
California's extraordinary energy prices are zeroing in on how energy traders
use the technology tools of their profession
On
Wall Street, Jury Still Out On Intel
Intel's business-as-usual second-quarter
forecast was supposed to be a good thing, but it's too early to be so sure, analysts
say.
Houston
Floods Teach IT Managers Readiness Lessons
With floods from Tropical Storm
Allison submerging parts of Texas, corporate IT departments in Houston scrambled
to restore computer systems and communications in affected parts of downtown.
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