Futuring and Innovation II

CS875- Futuring and Innovation II

Unit 8 Discussion Board 1

Raphael Brown

Date: 04/28/22

 

     Research organizations that had a good plan but had something go wrong because of circumstances beyond their control; that is, technology was introduced, the market changed, an innovative competitor entered the market, and so forth.

The organization that I have selected is one that I have direct knowledge of since this is an organization I did business with. This is a brief history of the organization; Formed by iVillage co-founder Robert Levitan, the firm intended to build a currency exclusive to Internet shops, similar to airline frequent flyer programs or grocery store stamp books. Flooz.com (Flooz) was a for-profit venture that failed. The term "flooz" was derived from the Arabic word for money, fuloos, which means "money." Users acquired floozy credits either due to promotional bonuses offered by certain internet companies or from purchases made directly through flooz.com. These floozy credits could then be redeemed for products at partnering online retailers. The adoption of flooz by merchants and consumers proved to be limited. It never established itself as a widely recognized medium of trade, limiting both its utility and attractiveness as a medium of exchange. When Robert Levitan and Spencer Waxman started a firm to sell gift cards on the Internet in August 1998; the operation's basic idea was straightforward: by using the Internet, users were rewarded with certificates and a unique currency - flooz – which they could then use to make purchases on the Internet. Each fluz was worth one dollar.

The certificate was then delivered to the receiver through e-mail, and they could use it to place orders with participating merchants such as Books.com, Barnes & Noble, and others. The concept was intriguing: every individual who places an order for products on the Internet represents a prospective customer. This does not need the use of your credit card! During the first two years, the organization saw significant growth. The service needed to be provided free of charge to customers, with most of the company's revenue coming from transactions paid to retailers. However, since the fees were minimal, shops were eager to embrace the new service.

There was just one thing that the developers did not consider: the security system. In response to a series of unlawful transactions made using stolen credit cards carried out by Russian and Filipino hackers, the system was forced to be shut down as soon as possible. Customers began to voice their dissatisfaction with the disappearance of their money, and participating businesses refused to accept it as a form of payment. In the end, Flooz.com was unable to overcome all of its difficulties and was forced to file for bankruptcy in 2001.

Flooz.com was a website that offered virtual cash that could be used in place of credit cards. Users could spend their Flooz at partner online retailers such as Tower Records, Barnes & Noble, Outpost.com, and Restoration Hardware when they had purchased a certain amount. Flooz.com obtained $35 million in funding from investors despite the ridiculousness of its premise. Flooz was utilized for corporate presents by Cisco and Delta Air Lines, two of our business partners. Even after spending $8 million on an advertising campaign that included Whoopi Goldberg, Flooz declared bankruptcy in August 2001, less than two years after the company first opened its virtual doors. (10 Big Dot.Com Flops - Flooz.Com (7) - CNNMoney.Com, n.d.) In 2001, Flooz.com was notified by the Federal Bureau of Investigation that a Russian organized crime syndicate was using Flooz and stolen credit card numbers as part of a money-laundering scheme, in which stolen credit cards were used to purchase currency and then redeemed. Levitan has stated that fraudulent purchases accounted for 19% of consumer credit card transactions by mid-2001.(10 Big Dot.Com Flops - Flooz.Com (7) - CNNMoney.Com, n.d.)

     Find an example that illustrates a potential impact on your sociotechnical plan.

However, the notion of a sociotechnical plan is geared toward social practices that put activities such as education and social services inside a framework. Still, it also relies on a technology platform that allows the invisible fashion to be made feasible. For example, "Rumble."

     Discuss why it is relevant.

The Flooz concept and the Rubble concept are both still very much alive and well today. The most challenging problem for entrepreneurs is finding out how to make online transactions easier or provide a platform. People still want to interact, which means the Chrysler Public Relations Department is still necessary! Drivers are texting on their cell phones while driving! This is a major no-no and something I strongly discourage you from doing.

     Describe 2 of the forces that may affect your innovation idea.

Other aspects that impact the system, in addition to the user's level of comfort with utilizing a sociotechnical system such as Rumble, include the language or alphabet used for the system and the technical difficulty of handling people with names that are identical or substantially similar.

 

References

10 big dot.com flops—Flooz.com (7)—CNNMoney.com. (n.d.). Retrieved April 24, 2022, from https://money.cnn.com/galleries/2010/technology/1003/gallery.dot_com_busts/7.html

Kosoff, Maya (October 16, 2015). "These dot-com startups look just like some of today's hottest tech companies — here's what happened to them". Business Insider.