In MIS750
Chapter 7, we are exposed to a topic on “IT Strategy & Planning”.
In short, strategy
is the direction of an organisation to achieve competitive advantage by
allocating its resources for growth especially within a challenging
environment. The organisation will then need to develop a strategy of performing
activities differently than its competitors.
This includes making
radical changes to the business processes for producing or distributing
products and services innovatively which sometimes the fundamental structure of
the industry.
For example Facebook
has recently announced two major changes to its advertising policy that will
let it track users across the web while giving them access to the advertising
profiles created by the social network of their likes and interests. The site
creates profiles in order to sell targeted adverts tailored to the individual
but has never before let users view or edit the information in those files.
In addition to
Facebook users, other web browsing activities outside of Facebook will also be
added to this profile through the Facebook ‘Like’ button. Even if individuals
do not click this on third-party sites it still registers their presence if
they are logged into Facebook in the same browsing session.
Similar buttons
from Twitter and Google have identical abilities, but this is the first time Facebook
has chosen to utilise this wealth of data. If users don’t want to be tracked in
this way then they can opt out via the Digital Advertising Alliance or for
mobile browsing adjust their settings on their handset.
The strategy
adopted by Facebook is via “targeted advertising” that the aim to make it
clearer to individuals why they were seeing certain ads. It is anticipated that
although Facebook is giving people more control over what sort of adverts they
see they’re also becoming more aggressive regarding the types of data they
collect.
Targeted
advertising is a type of advertising whereby advertisements are placed so as to
reach consumers based on various traits such as demographics, psychographics,
behavioural variables such as product purchase history.
Most targeted
new media advertising such as the one by Facebook uses second-order proxies for
targeting, such as tracking online or mobile web activities of consumers,
associating historical webpage consumer demographics with new consumer web page
access, using a search word as the basis for implied interest, or contextual
advertising.
A conducted a
study on targeted advertising in 2009 revealed that targeted advertising has secured
an average of 2.7 times more revenue per ad as non-targeted "run of
network" advertising.
Sources:
New
York Times, Wikipedia, Information Technology for Management 6th Edition
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