Consumers "in the dark" over green electronics

When I first began reading this article, I assumed, out of habit, I suppose, that I was reading an article written by an American. In reading, I thought to myselfm "How great! Someone is finally taking the lead on getting labels on our electronics!" Not to be, it seems. The British are the ones who will start seeing more and more of the energy efficiency labels as we Americans continue to be left in the dark.

When I bought my new computer in January, I, for the first time ever after having read horrendous stories about toxic chemicals leaking from American trashed electronics in third-world countries, actually looked up the energy efficiency of my choices. Greenpeace has put together a "Guide to Greener Electronics" that I referred to. I was terribly disappointed to see that not a single brand of computers was "in the green." Dell, ranked highest, was not in the running for my new computer because of very poor reports on after-sale customer service. Surprisingly, Apple falls well at the end of list with horrible rankings on every criteria.

I chose an HP, ranked second among computer brands, but still far from being "green." I hope that the American government soon follows the British government in making energy efficiency rankings widely required and known, reducing VAT on greener products, and making an effort to save the planet! I for one am ashamed that I had never thought to consider this before and that it's not more widely done.

As Natacha's article mentions, it will take several decades for the planet to feel the effects of the changes we make now, so there is certainly a great urgency to take these positive steps now. Africa is considered very vulnerable "because of the weakness of its capacities of adaptation." Asia is threatened by the "melting of the glaciers of the Himalayas [that] will involve floods, crumbling, disturbances in the water supply." Trashed electronics have no place in already vulnerable areas.

Another article of interest.

easyJet

easyJet is a low cost airline (in some ways like Southwest Airlines) with a successful business model. Because it prides itself on being low-cost, easyJet must keep its own costs low, which it does by doing the following:

- Effective use of the Internet to reduce distribution costs
Approximately 95 % of all seats are sold over the Internet.
- Maximizes the utilisation of the substantial assets (i.e. aircraft)
- Ticketless travel
No tickets are generated; all correspondence is done via e-mail or online.
- No meals
While passengers can purchase food onboard, meals are considered superfluous, so they are not served, nor is the price included in the fare.
- Efficient use of airports
The company not only prides itself on quick turnaround times, but also negotiates competitive pricing with airports for using the space.
- Paperless operations
Saves trees and everything is easily accessible from all over the world!

Revenue streams:
- Food onboard
- Commissions
- Advertising (while using easyJet)
- Fees from purchases with credit cards
- Travel Partners (hotels, car rentals)
- "Be the first on the plane" revenues
- Insurance

Innocentive

InnoCentive is a clever concept that allows other companies to present mostly research and development problems that needs solutions, while other companies or individuals are welcome to find those solutions. The name is derived from this concept: giving an incentive for finding an innovative solution. The "solvers" look for these solutions and the "seekers" then pay those who find an adequate solution usually somewhere between $10,000 and $100,000.

Eli Lilly, the pharmaceutical company, owns InnoCentive. It was the first "seeker" company for the web site. InnoCentive.com charges the "seekers" a fee to register and to post their challenges on the InnoCentive.com web site. "Solvers" can register with the company, fee-free, then view the challenges ou on the web site. Throughout the process, the identity of the "seeker" company remains undisclosed. This is a very innovative way of relieving companies of the burden of finding solutions on their own. Instead, they can essentially outsource the work, pay the person without employing him or her, get a solution, and move on. This saves time, money, and other resources. It also gives scientists around the world, the chance to shine and become recognized.

Quick Quiz

1. OTHER than core revenue sources:
-sale of goods and services
-advertising
-subscription
Please list 3 additional revenue sources in e-commerce.

1. Commissions/fees - As with eBay and InnoCentive
2. Infomediary - Collecting data on consumer habits for companies
3. Affiliate - Acting as a go-between like Vente-Privee and bluefly (i.e. selling someone else's products)
4. "On demand"/one-time use purchases - Not full-out subscriptions, but purchases for single use, such as playing a game or reading an article

2. If "market segments are dead", how are segments replaced? Why is it important to the digital economy?

Market segments have died because the lines are now blurred. As we discussed with the Long-Tail Effect, consumer preferences are no longer so cut and dry. Customers no longer allow companies to offer a product and convince them that there's a need for it. Customers are more in charge now and have the power to demand what they need.

There is also the, until recently, undiscovered and underestimated, power of word of mouth and the power of the click. Customers now can click their way to finding new music, new articles, new interests, and on and on. And no longer can a company convince itself that the same people who like A will also like B and C. One may like A, B, and C, the next may like A, E, and P. Turns out we're not as "cookie cutter" as they thought!

So what does this mean for the digital economy? It means the avenues are wide open! It means people are clicking until they're blue in the face and if you have something to sell, you better get out there and be a part of it, because there really is enough for everyone to share. And that's what it's all about: sharing.

3. How can 'free' generate revenue for an online business? Please include your favorite example.

Free products appeal to everyone. It's amazing what people will take home with them simply because "it was free!!!" As we saw with Freemium, if a company offers a quality product that they successfully convince customers they need, the company then has a better chance of getting those same customers to commit to a fancier or more elaborate product that they have to pay for. Skype does this successfully by offering its most basic product of instant messaging and talking to and video conferencing with other Skype users for free, but then offers customers the option of paying to call land lines and treating their Skype accounts as real telephone lines. Because it is so expensive to call European mobile phones, I myself have purchased SkypeIn and SkypeOut credit, so that I can stay in contact with people at home. Because I cannot convince all my friends and family to get Skype, nor can I guarantee the people with whom I want to talk will be near a computer at the moment I want to speak with them, I am convinced that it's worth spending the money. And it has been.