PDE Essentials of MIS 13th Edition - P X + X C File | C:/Users/mande/Downloads/Essentials%20of%20MIS%2013th%20Edition%20-%20PDF%20ebook%201.pdf . . 301 of 548 Q + Three Internet titans-Google, Apple, and Apple has more than 1 billion active devices in circus Facebook-are in an epic struggle to dominate your lation, creating a huge installed base of users willing Internet experience, and caught in the crossfire are to purchase services and a source of new revenue search, music, video, and other media along with the streams. Apple's services business, which includes devices you use for all of these things. Mobile devices the App Store, Apple Music, and Apple Pay, has with advanced functionality and ubiquitous Internet been growing at a double-digit rate and delivered access are rapidly overtaking traditional desktop $7.04 billion in revenue in the first quarter of 2017 machines as the most popular form of computing. alone. According to CEO Tim Cook, Apple has Today, people spend more than half their time online become one of the largest service businesses in the using mobile devices that take advantage of a grow- world. This service-driven strategy is not without ing cloud of computing capacity. It's no surprise, worry because both Google and Facebook offer stiff then, that today's tech titans are aggressively battling competition in the services area. Google continues for control of this brave new online world. to be the world's leading search engine, accounting Apple, which started as a personal computer com- for over three-quarters of the world's web searches. pany, quickly expanded into software and consumer About 90 percent of Google's revenue comes from electronics. Since upending the music industry with ads, most of that on its search engine. Google domi- its MP3 player, the iPod, and the iTunes digital nates online advertising. However, Google is slipping music service, Apple took mobile computing by in its position as the gateway to the Internet. New storm with the iPhone, ipod Touch, and iPad. Now search start-ups focus on actions and apps instead Apple wants to be the computing platform of choice of the web. Apple has also become a mobile search O for the Internet. competitor. Its iOS mobile operating system software Apple's competitive strength is based not on its gives iPhone and iPad users the ability use Apple's hardware platform alone but on its superior user own search engine for searches of music, apps and interface and mobile software applications, in which local services, bypassing Google. + it is a leader. Apple's App Store offers more than In 2005, Google had purchased the Android open 2 million apps for mobile and tablet devices. Applica- source mobile operating system to compete in mobile tions greatly enrich the experience of using a mobile computing. Google provides Android at no cost to device, and whoever creates the most appealing set smartphone manufacturers, generating revenue indi- of devices and applications will derive a significant rectly through app purchases and advertising. Many competitive advantage over rival companies. Apps different manufacturers have adopted Android as are the new equivalent of the traditional browser. a standard. In contrast, Apple allows only its own Apple thrives on its legacy of innovation. In 2011, devices to use its proprietary operating system, and it unveiled the potentially market-disrupting Siri all the apps it sells can run only on Apple products. (Speech Interpretation and Recognition Interface), Android is deployed on over 80 percent of smart- a combination searchavigation tool and personal phones worldwide, is the most common operating assistant. Siri promises personalized recommenda- system for tablets, and runs on watches, car dash- tions that improve as it gains user familiarity-all boards, and TVs-more than 4,000 distinct devices. from a verbal command. Google countered by Google wants to extend Android to as many devices quickly releasing its own AI tool, Google Now. as possible. Apple faces strong competition for its phones and Google's Android could gain even more market tablets both in the United States and in developing share in the coming years, which could be prob- markets like China from inexpensive Chinese smart- lematic for Apple as it tries to maintain customer phones and from Samsung Android phones that have loyalty and keep software developers focused on the larger screens and lower prices. iPhone sales have iOS platform. Whoever has the dominant smart- started to slow, but Apple is not counting on hard- phone operating system will have control over the ware devices alone for future growth. Services have apps where smartphone users spend most of their always played a large part in the Apple ecosystem, time and built-in channels for serving ads to mobile and they have emerged as a major revenue source. devices. 51OF 12:07 AM Clear Q KO 22 10/11/2022PDE Essentials of MIS 13th Edition - P X + X C File | C:/Users/mande/Downloads/Essentials%20of%20MIS%2013th%20Edition%20-%20PDF%20ebook%201.pdf . . 302 of 548 Q + In 2017 Google accounted for 94 percent of the will increasingly come from mobile smartphones and mobile search market in the United States. Although tablets. As of mid-2017 Facebook had 1.74 billion Google search technology can't easily navigate mobile active users. Facebook ads allow companies the mobile apps where users are spending most of to target its users based on their real identities and their time, Google is starting to index the content expressed interests rather than educated guesses inside mobile apps and provide links pointing to derived from web-browsing habits and other online that content featured in Google's search results on behavior. smartphones. Since more than half of global search At the end of the first quarter of 2017, 98 percent queries come from mobile devices, the company of Facebook's revenue came from advertising, and revised its search algorithms to add "mobile friendli- 84 percent of that ad revenue was from mobile ness" to the 200 or so factors it uses to rank websites advertising. Many of those ads are highly targeted on its search engine. This favors sites that look good by age, gender, and other demographics. Facebook on smartphone screens. The cost-per-click paid is now a serious competitor to Google in the mobile for mobile ads has trailed desktop ads, but the gap ad market and is even trying to compete with emerg between computer and mobile ads fees is narrowing. ing mobile platforms, having purchased Oculus VR Google instituted a design change to merge PC ads Inc., a maker of virtual reality goggles, for $2 billion. and mobile ads and present a cleaner mobile search Together, Facebook and Google dominate the digital page. ad industry and have been responsible for almost all Seven Google products and services, including of its growth. Search, YouTube and Maps, have more than a billion In March 2013, Facebook overhauled its home users each. The Android operating system software is page to increase the size of both photos and links installed on more than two billion devices. Google's and allow users to create topical streams. This move ultimate goal is to knit its services and devices gives advertisers more opportunities and more O together so that Google users will interact with the information with which to target markets. A "per- company seamlessly all day long and everyone will sonalized newspaper" with, for example, an op-ed want to use Google. Much of Google's efforts to feed featuring followed commentary pages, a sports make its search and related services more powerful section tailored to preferred events and teams, and and user-friendly in the years ahead are based on a hometown news feed will enrich Facebook's user + the company's investments in artificial intelligence database. Facebook has its own personalized search and machine learning. These technologies already tool to challenge Google's dominance of search. have been implemented in applications such as voice Facebook CEO Mark Zuckerberg is convinced search, Google Translate, and spam filtering. The that social networking is the ideal way to use the web goal is to evolve search into more of a smart assis and to consume all of the other content people might tance capability, where computers can understand desire, including news and video. That makes it an what people are saying and respond conversationally ideal marketing platform for companies. But he also with the right information at the right moment. Allo knows that Facebook can't achieve long-term growth is a smart messaging app for iOS and Android that and prosperity based on social networking alone. can learn your texting pattern time to make During the past few years Facebook has moved into conversations more expressive and productive. It sug- virtual reality, messaging, video, and more. Face- gests automatic replies to incoming messages, and book is challenging YouTube as the premier desti- you can get suggestions and even book a restaurant nation for personal videos, developing its own TV reservation without leaving the chat. Google Assistant programming, and making its messages "smarter" is meant to provide a continuing, conversational dia- by deploying chatbots. Chatbots are stripped-down logue between users and the search engine. software agents that understand what you type or Facebook is the world's largest social networking say and respond by answering questions or executing service, with 1.9 billion monthly users. People tasks, and they run in the background of Facebook's use Facebook to stay connected with their friends Messenger service. Within Facebook Messenger, and family and to express what matters most to you can order a ride from Uber, get news updates, them. Facebook Platform enables developers to or check your flight status. A new standalone app build applications and websites that integrate with will allow users to stream videos in their news feed Facebook to reach its global network of users and through set-top boxes such as Apple Inc.'s Apple TV to build personalized and social products. and Amazon.com Inc.'s Fire TV as well as Samsung Facebook has persistently worked on ways to con- Internet-connected TVs. Zuckerberg has said that he vert its popularity and trove of user data into adver- intends to help bring the next billion people online tising dollars, with the expectation that these dollars by attracting users in developing countries with 51OF 12:07 AM Clear KO 22 10/11/2022PDE Essentials of MIS 13th Edition - P X + X C File | C:/Users/mande/Downloads/Essentials%20of%20MIS%2013th%20Edition%20-%20PDF%20ebook%201.pdf . . 303 of 548 Q + SCIVICE , WITH 1.7 onnon mommy users. FCUpic tasks, and they run in the background of Facebook's use Facebook to stay connected with their friends Messenger service. Within Facebook Messenger, and family and to express what matters most to you can order a ride from Uber, get news updates, them. Facebook Platform enables developers to or check your flight status. A new standalone app build applications and websites that integrate with will allow users to stream videos in their news feed Facebook to reach its global network of users and through set-top boxes such as Apple Inc.'s Apple TV to build personalized and social products. and Amazon.com Inc.'s Fire TV as well as Samsung Facebook has persistently worked on ways to con- Internet-connected TVs. Zuckerberg has said that he vert its popularity and trove of user data into adver- intends to help bring the next billion people online tising dollars, with the expectation that these dollars by attracting users in developing countries with Chapter 7: Telecon Technology 269 affordable web connectivity. Facebook has launched Sources: David Streitfeld, "Google Wants to Be Everywhere with Every. several services in emerging markets, such as the ne," New York Times, May 17, 2017; Tim Bajarin, "Learning This I Thing Helped Me Understand Apple's Strategy," Tune, April 3, 2017; Mathew Free Basics service designed to get people online so Ingram, "How Google and Facebook Have Taken Over the Digital Ad they can explore web applications including its social Fortune, January 4, 2017; Deepa Seetharaman, "Facebook Announces Launch of Television App," Wall Street Journal, February 14, network. Facebook wants to beam the Internet to 2017; Tripp Mickle, "Apple Continues Its Comeback Campaign, but iPhone underserved areas through the use of drones and Worries Persist," Wall Street Journal, May 2, 2017; David Ingraham, "Face- book Nears Ad-Only Business Model as Game Revenue Falls," Reuters, O satellites along with other technologies. Zuckerberg May 5, 2017; Don Reisinger, "How Mark Zuckerberg Is Shaping the Future thinks that Facebook could eventually be an Inter- of Facebook, Social Media," eWeek, May 16. 2016: Robert McM net service provider to underserved areas. If Face- "Facebook Hopes Chatbots Can Solve App Overload," We Overload," Wall Street Journal, book can match Google on this front and succeed in April 17, 2016; Eric Emin Wood, "Is a Shift to Being a Service Provid Apple's Future?" IT World Canada, May 5, 2016; Yoni Heisler, "Apple's making itself synonymous with mobile access, the Growth Strategy Is Hiding in Plain Sight," BGR.com, January 28, 2016; + company could very well compete for global adver- Alistair Barr, "Mobile Devices Upend Google Search," Wall Street Journal, February 25, 2016, and " How Google Aims to Delve Deeper into Users' tising dominance. Lives," Wall Street Journal, May 28, 2015. CASE STUDY QUESTIONS 7-13 Compare the business models and core compe- 7-16 Which company and business model do you tencies of Google, Apple, and Facebook think is most likely to dominate the Internet, 7-14 Why is mobile computing so important to and why? these three firms? Evaluate the mobile strate- 7-17 What difference would it make to a business or gies of each firm. to an individual consumer if Apple, Google, or 7-15 What is the significance of search to the suc- Facebook dominated the Internet experience? cess or failure of mobile computing? How have Explain your answer. Apple and Facebook attempted to compete with Google? Will their strategies succeed? MyLab MIS Go to the Assignments section of MyLab MIS to complete these writing exercises. 7-18 Compare Web 2.0 and Web 3.0. 7-19 How do social search, semantic search, and mobile search differ from searching for information on the web by using conventional search engines? Chapter 7 References 51OF Clear Q 12:07 AM KO 22 10/11/2022