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Wolfgang Glatthaar International Business Machines (IBM), Gennany The rapid developments in infonnation technology (IT) will continue through the coming years. New application areas will be added. Whereas the use of infonnation technology in the past decade has been concentrated primarily on business and public administration, in future the suppliers of infonnation technology will develop an increasing number of applications for the private household (see fig. 1). Traditional perspective: New perspective: 'IT-solutions for the "IT-solutions for the company' private household" ~ . . . . . . \ . . . . . . . . . . . . \ . . . . . . . . . . . . \ . . . . . . . . . . . . \ . . . . . . . . . . . . \ . . . . . . . . . . . . \ \ \ \ \ Fig. 1. New perspective on information technology This development has already generated considerable market dynamics. Latest forecasts for the USA suggest that by 1996 at the latest the private household will present greater sales potential for home computers than business and public administration. VI Preface Up to now the use of infonnation technology in the private household has not been regarded as highly significant by either business or science, even though PCs have become widespread in the private sphere. In the ESPRIT framework there have been individual projects dealing with home networks, and in a number of Asian and European countries, as well as America, experiments with interactive television are taking place. Internet and commercial online services are experiencing rapid growth. This application area for infonnation technology in the private household, which is generating increasing business attention, must also be the subject of appropriate research activities.





Computerized Information Processing of the Private Household: A Framework

Traditional business informatics and information management deals with information processing in business contexts. In the last decade information technology focused on electronic data processing in service, industry companies and administrative authorities.

Walter Brenner, Lutz Kolbe



In-home Infrastructures

Microsoft Brings Personal Computing Home

Software for home computers can offer virtually unlimited educational and entertainment capabilities — allowing arm hair sports fans to become experts at their favorite game; families to learn together using interactive instruction, simulation games and talking books; and empowering home-office workers to run then-businesses with the finesse of a Fortune 500 corporation. Industry analysts agree that in North America as well as in other countries, the home market is the fastest-growing segment of the PC industry.

Michaela Jaritz

Digital Devices and Advanced Technology for the Consumer Market

The technology employed in today’s consumer products has seen rapid advances in recent years. In the past, consumer technology was seen as the poor relation of technology in, for example, the professional, communications and aerospace markets. However this situation is changing, driven by the financial rewards of developing successful consumer products. In many areas such as displays, transmission techniques and video compression, the consumer market is providing the main drive for technological advancement.

Terry R. Hurley

Bang & Olufsen’s Integrated Home-Networking with Beolink

This chapter describes the utilisation of computerised information processing in Bang & Olufsen products. First examples of consumer benefits in the products are given, then the present technical infrastructure is outlined, marketing experiences are summarised and at last future perspectives and strategies are stated.

Peter Petersen

Out-of-home Infrastructures

Oracle Media - Enabling the Information Age

There will be major changes in the way businesses operate. Telephone, cable, hardware, and software companies are revamping the computing and communications infrastructure to create an Information Highway — a new popular network that will link the providers and consumers of information, entertainment, goods, and services.

Mary Callaghan

SmartCards as Carrier of Personal Data and Documents

In 1968, two German inventors received the first patent for chipcards: Jürgen Dethloff and Helmut Gröttrup (see fig. 1). At that time nobody recognized which importance the chipcard technology would get later. The subject of the patent was an identificand, which could be represented by a card, a key or a token. The main feature of the identificand was an integrated circuit able to communicate with an identificator (i.e. a service device) by means of optical, capacitive, inductive or galvanic coupling. Contact-oriented cards as well as contactless cards have been anticipated, a fascinating and revolutionary invention. The roots of chipcard technology lie therefore in Germany, however, the first chipcard applications have been performed in France. A major role was taken by the French journalist Roland Moreno whose first chipcard patents are dated from 1976.

Bruno Struif

Deutsche Telekom’s Network Platform for Interactive Video Services

The film business — or perhaps one should say the cinema — is one hundred years old this year. In October 1954, that is, some 40 years ago, TV entered the homes of our country with channel one’s first news broadcast, the “ARD Tagesschau”. The digital media age that is almost upon us will catapult the TV viewer into a new career: from a viewer to a programmer. The next few years will show how much use he makes of this opportunity.

Norbert Maassen



The Citizen’s Information System “Dresden and the Frauenkirche (Church of Our Lady)” — Realization, Experiences, Prospects

The “Dresden and the Frauenkirche (Church of Our Lady)” citizen’s information system informs residents and visitors about the 800 year history of the city, offers an overview of the most significant secular and religious architectural masterpieces and provides users with a detailed insight into the history of the Frauenkirche, built in 1726–43 by George Bähr. It is comprised of three chapters of equal length, each chapter equally important from a topical point of view. Some 350 pages of pictures and text shown on the screen are enhanced by historical and current documentary film sequences of about 40 minutes in length, 20 minutes of musical extracts from Dresden composers and singers, and quotations and poetry from leading literary figures and contemporary witnesses in Dresden. The multimedia application, that is provided in the form of a Point-of-Information (PoI) solution, is available on a daily basis and free of charge to those people visiting the pavilion on the Frauenkirche construction site. Furthermore, it is also available for purchase on a CD-ROM, whereby approximately 65% of the sales proceeds go towards the restoration. The technical equipment of the Pol system consists of an IBM pentium computer, a laser disc player and an IBM touch screen XT 21. It was decided not to compress the moving picture sequences in order to ensure maximum quality. The contents of the system have been transferred almost 1:1 to the CD-ROM, although the moving picture sequences have been compressed in MPEG standard.

Manuela Rost-Hein

Books of the Next Generation — Reading on the Electronic Frontier

Today reading has successfully made the transition from paper to the dynamic medium of the computer screen and is becoming a common experience in the world of electronic media. And while the computer industry does everything to convince us that multimedia, will be the glorious future of electronic communication we convey most of our concepts by writing and reading, be it on the computer, be it on paper. The electronic book as a platform to read on a dynamic medium is still in a very early stage both in software and hardware and may look dramatically different from what we expect it to be at this stage. Still the book is the primary source for text and thus a container of memory.

Florian Brody

Electronic Agents and the Market Place: New Generations of Electronic Services for Consumers

We witness the merging of the telecommunication, information processing and entertainment industries. Communication needs in this complex world can only be met by a more integrated approach in the design of communication devices, network and services.

Rob de Vogel

Home Systems — The Vision

The ‘home of the future’ has been envisaged by many people over the years. Early writers saw an ideal society, with work minimised through the use of labour-saving machines, and the people able to use their increased leisure to pursue creative and enjoyable lifestyles. The ‘pursuit of happiness’ was written into the American Constitution as the principal benefit of a free society.

David G. J. Fanshawe

Teleshopping: Today’s Solutions and Future Trends

Currently companies present their goods and services using a wide range of different media. The aim is always the same: To raise the customers’ desire. At last, one wants to sell.

Heiner Drathen

Private Household Shopping Behavior

In future, computer aided purchasing for households might turn the following scenario into reality (see fig. 1): In the privacy of her home, Andrea decides to buy a new shirt. Now she has several options to choose from: she can surf the World Wide Web (WWW) and look through the offers of national and international suppliers or she can hunt for bargains in her regional home shopping network. Another possibility is the use of CD-ROM catalogues of big mail order companies. For home shopping she employs a standard TV and a set-top box. An alternative would be a Multimedia PC. She chooses regional home shopping and can now select one of the electronic product catalogues (EPC) of various multistores. Some of these EPCs are already supported by an advisor system to simplify the selection of a suitable shirt. Electronic shopping centers (malls) represent an alternative way of searching for bargains without being limited to individual stores. Later, Andrea places her order via telephone or data connection. Home Shopping needs electronic sales assistants. Key features of successful salespeople include the ability to adapt to the customer’s problem fast on the basis of having only limited information, to cope with fuzzy hints and to present a problem solution satisfying the customers’ information needs.

Heribert Popp, Stephan Thesmann, Peter Mertens

Interactive Multimedia and In-Home Marketing

Electronic Superhighway and multimedia have become the buzz-words that can be read about in almost every magazine, newspaper or trade-journal. A giant hype has been created, suggesting the upcoming of an equally giant new industry. How bitter is the truth: no multimedia platform has yet received a wide market acceptance, many new product launches remain just announcements, many proclaimed mergers are cancelled and even more start-ups never grow profitable. Big money is invested in what prove to be even bigger disappointments.

Jonne R. M. van der Drift, Luc Stakenborg

New Media: A Growth Market in Erotica and Pornography for Beate Uhse

The spread of computers into the private household brings new opportunities for many enterprises. Within a brief period a new, rapidly growing market has emerged in which market shares are not yet firmly established. Given this, the Beate Uhse Group has responded relatively quickly to secure market potential.

Petra Höper

SEGA Game Applications: Consoles, Games and Development Possibilities

At the end of the 1970s, only visionaries recognized that the first video game machines and home devices represented the birth of a new medium, namely that of video and computer games. By 1994, they had grown into a US$ 10 billion market, combining the characteristics of older media (sound, vision and animation) with interaction and thus opening up a whole new world of entertainment for consumers.

Winnie Forster, Torsten Oppermann

TV of the Future — The Future of TV

It was a hot day in August 1969 and I — like probably many others — can recall it quite well: For the first time a man, Neil Armstrong, set foot on the moon and billions of “earthlings” left on their homeplanet witnessed those spectacular pictures from outer space via TV. Since we did not have one at home in those days everybody gathered at my aunt and uncle’s who had recently bought one for the occasion. What it looked like? It was a ghastly monster in a very sixty — ish design, big and ugly. But it was highly effective: it filled one corner of the living room and everybody squeezed into seats and sofas in front of it in order not to miss those sensational black and white pictures and the crackling sound of Armstrongs legendary line: “It’s a small step for man, but a big step for mankind...”

Friedrich-Carl Wachs, Johann-Reinhardt Wachs

Interactive Video-Services for the Residential Customer

The Information Highway is the basic term for a wide range of services in different areas of telecommunications, computing and entertainment. These services include high-speed data transfer over ATM (Asynchronous Transfer Mode) networks or other data services, such as Switched Multimegabit Data Services (SMDS) via Distributed Queue Dual Bus (DQDB)-networks. Presently booming online-services are further examples for services attracting public interest now. The success of the Internet — especially since introduction of convenient user interfaces like the World Wide Web — shifts online-services also in the discussion of the Information Highway. Wide introduction of ISDN offers digital connections not only for business users and fiber in the loop as well as cable TV (CATV) networks enable private users to use broadband services. The PC offers multimedia today and a complete generation has been grown up with this technology.

Claus Sattler, Niels Klußmann

Information Technology and Applications for Elderly and Disabled People

With continually improving health standards, elderly people tend to live longer and lead much longer active lives. The future elderly also tend to live more independently and are generally economically better off than previous generations so constituting an important group of (new) users of assistive devices.

J. A. van Woerden

Current Projects


The Information Society — Developments in the Triad of Europe, North America and Japan

The driving force behind the Information Society is the desire of governments worldwide to improve the use of Information and Communication Technologies (ICT) products and to make the best use of the opportunities they create. This will lead to an increase in competitiveness, create new jobs and improve the overall quality of life for all citizens. Example applications which are already available as pilot systems in many countries can be found in areas as diverse as health care and tele-medicine (Wall Street Journal 1994), on-line access to public information services provided by local and national governments, new leisure and entertainment opportunities (direct broadcast satellite digital TV, virtual reality games played over the Internet on powerful 64-bit games consoles, interactive TV, direct access to travel agents for viewing and booking holiday options are just a very few of the possibilities which already exist today), tele-working, and tele-shopping from home via a normal telephone line.

Roger Longhorn

Home Automation — Recent Developments in the Genesis and Diffusion of Intelligent Home Technology in Europe, Japan, and the USA

Let us start with a short presentation of the research-project the research is associated with. In 1987, an interdisciplinary research group was founded at Frankfurt University. Within that group researchers from the departments of economics, political sciences and sociology started to investigate the process of the emergence of new technologies. At the moment, the group works in four different fields (Fleischmann 1993). One project concentrates on the genesis of telecommunication technology. A second project is concerned with the genesis of production technology. A third project is engaged in the field of the genesis of traffic technologies. Last but not least there is the project which is concerned with the genesis of Intelligent Home Technology. This project has started to make an international comparison of the Intelligent Home approaches in Europe, Japan and the USA.

Thomas Heimer

Multimedia Application Services

Progress in the field of semi-conductors and LSIs has made the size of computers smaller and smaller and brought us very powerful workstations (WSs) and personal computers (PCs). Digital switching and transmission technologies have realized an ISDN that provides various attractive telecommunication services. These computers and communication networks have become one of the most important social infrastructures for the 21st century. Computer systems were initially limited to character-based information, but recent WSs and PCs can easily manipulate multimedia information such as characters, figures, sound and image data. B-ISDN, which will be realized by ATM switching and optical transmission technologies, can effectively transmit multimedia data include audio and video.

Sadami Kurihara

Time Warner Cable Full Service Network — Silicon Graphics Technology and Architecture Overview

Sixty years after Philo T. Farnsworth first demonstrated a television system, his amazing invention remains in some respects exactly as he left it. Though television has received wide spread distribution around the world and the quality of the picture has steadily improved, it remains for the most part a passive display system for broadcasting images into the home. Even telephone technology has experienced more evolutionary development than television, with individualized, interactive services such as voice mail, call waiting, conference calling and others. Television is about to undergo a revolutionary transformation, with the introduction of the Time Warner Cable’s Full Service Network (FSN), the world’s first digital, interactive television network.

Gary Sager

Burda New Media’s Multimedia Activities for Private Customers

In December 1993, when we set up the independent business area, Burda New Media within our Munich publishing company, you could say we set off in a VW Polo on the communication highway. Very soon, however, this proved to be a country lane full of potholes, an adventure, the realisation of a new idea, like the construction of the railroad between the east and west coast of America in the previous century. It is very easy to get lost in the fog on the communication highway, and to misjudge the bends.

Hubertus Hoffmann

Agent Based Communication in Traffic Telematics

The need for mobile communication grows with the increasing mobility of our society. A good example of this is the wide acceptance of mobile phones since the introduction of GSM-services. For road users mobile access to static and dynamic information gets more and more important with growing traffic. Mobile gets an advanced meaning — similar to mobile phone calls this implies not only within the means of transportation but everywhere. Complex data communication replaces voice communication for instance in trip planning or navigation applications.

Christoph Mayser, Martin Römer, Georg Zimmermann

Impacts and Implications


Business Impacts

New Products and Services for Private Households on the Information Highway: Facts and Obstacles

When the topic of discussion is “Information Highway”, there are two groups frequently asking to speak. The sceptics refer to the high lead costs and use the absence of social acceptance, the insufficient command of the technological basics and the missing markets as arguments. Their counterparts are the gold-diggers. Whether technology or contents suppliers, both groups see the future in the new technologies. The consumer is frequently uncertain when hearing that multimedia on the Information Highway will change his working environment, his role as a consumer, the information he gets and his leisure time.

Joachim Niemeier

New Visions of Information Technology and Postmodernism: Implications for Advertising and Marketing Communications

Although volumes have been written on information revolution and much writing continues at this very moment, it is rather surprising that this has not made an impact on the academic field of marketing communications or advertising (Katz 1991). Even within the broader field of marketing, the writing is limited — for exceptions, see Blattberg/Glazer/Little (1994), and current authors’ contributions from 1984 through 1994. In the world of marketing practice, there is no question that the information revolution has had an impact on various marketing activities such as, channels of distribution, networking of global markets, product design and new product development, customer data management, home shopping, home banking, real time manufacturing and marketing, to name a few. Although the world of marketing practice is being revolutionized because of new information technologies, the field of advertising seems to lag behind. In a recent speech to the Advertising Foundation, Edwin Artzt, the Chairman of Procter and Gamble lamented profoundly about the state of the advertising field, pointing to the fact that it has yet to show any initiative in capitalizing on new technologies.

Alladi Venkatesh

Seven Theses on Successful Market Development for Home Management Systems

Roland Berger & Partner have worked in the area of home management for about three years. Two issues have always come up during the intensive discussions with companies involved in this sector: The technical problems of home automation have more or less been solved.Nevertheless, the discussions within and between companies have been carried out almost exclusively on a technical level.

Kai Howaldt, Mirko-Stefan Jeck

Stand-alone Multimedia in the Private Household

For almost two years now multimedia has been the key “buzzword” within the Communications, Media, Computing and Electronics industries. The discussion originally started with the announcements of the Clinton/Gore administration to actively support the creation of the “Information Superhighway” as well as industrial mergers such as the one between Viacom and Paramount. Today several possible developments are discussed under the umbrella of multimedia. Whereas corporate strategic planners and marketing specialists envision an enormous market potential for new products and services, social scientists paint the dark picture of “couch potatoes” and social isolation. In order to go beyond such superficial statements it is necessary to at least roughly define what multimedia or the multimedia-market is and which applications and technologies will presumably drive the market.

Felix Goedhart, Thomas Künstner

Strategic Management and Transformation in Converging Industries — Towards the Information Society

The use of multimedia technologies as the core driving element of converging markets and virtual corporate structures will impel considerable economic and social change. Sound strategic management which takes into consideration the basic transformation processes of this sector will be a substantial success factor in securing a competitive advantage within this deciding future market. The related change from an industrial to an Information Society will above all else be affected by the dynamics of technological developments. The underlying principal of these developments can be explained with the Contratief Cycle Theorem (Nefiodow 1991). Accordingly, technological innovations are the substantial determinants of economic growth and social change. Today’s transformations are driven by information technologies, in particular multi-media based technologies, much like the steam engine, railways, the telephone, radio and the automobile (Contratief Cycle factors) have changed mankind’s daily existence in the past. Following the Contratief divisions of the model, our present post-modern industrial society is in the midst of a transformation towards an Information Society (the transition from the fourth to the fifth Contratief Cycle). The fifth Contratief Cycle will be strongly influenced by emerging multimedia technologies, which will act as catalysts towards the Information Society.

Thomas Baubin, Bernd W. Wirtz

The Multimedia Marketplace in the Private Household — Some Observations and Comments

Writing an article on the multimedia marketplace of the private households, one is confronted with the readers expectations. These might include to read chapters on a comprehensive description of the status quo of the multimedia applications of the private households, a glance of the current technological discussion, and finally a — quantitative — forecast of the future shape of the market. This contribution is different: It simply states some observations that the author picked up during the first quarter of this year, and it tries to show that even the topic of the article is fuzzy in nature. Instead of a in-depth analysis of the terms “multimedia” and “private”, the article immediately leads to the illustrations of some “waves”, the reader might wish to draw his/her own deductions regarding the shape and size of the “paddles”.

Georg Rainer Hofmann

Information Technologies in the Home: Policies and Markets

Computers and telecommunications have experienced steady growth in the business sector since the 1950s and have boomed during the past decade. Business applications of information technologies (IT) were discussed in the trade press and in academic publications (Dholakia/Mundorf/Dholakia 1995). Diffusion of IT in the home was delayed by decades and has only recently gained momentum. As the business sector experiences some degree of saturation with a somewhat predictable replacement cycle, home IT is thought to be the growth market of the 1990s and beyond. In addition, the home and business markets are increasingly intertwined (Mundorf/Zoche 1994). Media, industry, and government officials have announced the multimedia revolution and the Information Superhighway with much fanfare. We have seen much supply-side driven enthusiasm. However, the demand side of home IT-adoption is not well understood.

Norbert Mundorf

Social Implications

Computer Use at Home — A Cultural Challenge to Technology Development

Computerized information processing is a new type of technology. It is not a simple piece of hardware or only a new physical machine, but a technical system in which microcomputers, household machines or communication media are loosely coupled with one another or with a network to allow programmed or interactive use. This type of a high technology system based upon information engineering (Rammert 1992a) does not only change production and control at the private enterprise, but it will also change work and communication at the private household.

Werner Rammert

The Home in Transition: Social Implications of Home Information Technologies

Risk-free one may prophesy that new information technologies in the home will have an impact on everyday life and on the functioning of households. Predicting the nature and the extent of the social implications of new home information technologies is more precarious. Even today little insight exists about how every day and domestic lives are being affected by information technologies. Little systematic research has been and most research confines to one or some specific aspects. A clear picture of the whole is hard to get.

Felix van Rijn


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