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Towards Small-Sized Long Tail Business through Dynamic Advisor for Knowledge and Information Oriented Communities

Masakazu Takahashi 1Takao Terano 2Kazuhiko Tsuda 1Takashi Yamada 2Toshiyuki Nakao 2Ariyuki Kishimoto 2

1. Graduate School of Business Sciences, University of Tsukuba, Tokyo (GSSM), 3-29-1, Otsuka, Bunkyo, Tokyo 112-0012, Japan
2. Computational Intelligence and Systems Science, Tokyo Institute of Technology (TITECH), 4259 Nagatsuda-Cho, Midori-ku, Yokohama, Kanagawa 226-8502, Japan

Abstract

This paper discusses the development of a system DIKOC (Dynamic Advisor for Information and Knowledge Oriented Communities), which directed at both consumer needs and manufacturer needs. Usually, long tail businesses refer only to the E-businesses of large scale firms that focus on small groups from among so many consumers. Actually, large scale E-commerce traders, such as Amazon and E-bay only sell pre-existing sales goods. Also, E-business firms, such as Google and Yahoo only provide information search services in the Internet. However, from the viewpoint of producers or retailers of small business firms, there have been few discussions about long tail businesses. Although they were not able to get information of consumers, so far, they have considered it is impossible for small business firms to utilize recommendation information of the long tails of consumers.
We believe that, using cutting-edge information and communication technologies, we are able to realize a long-tail business model for small sized firms. Especially in Japan, in order to effectively develop long tail business for small sized firms, all consumers, manufacturers, and retailers must develop their flexible relationships and information sharing.
To cope with the issues, we are employing the approach to develop a common portal site to share the long tail business information. DIKOC uses agent-based software technology in order to collect, analyzes, and provide recommendation information for them. To cope with the issues, it is important to implement a match-making functionality to bridge the gaps among consumers, manufacturers, and retailers. DAIKOC site will have the following components:

- Databases to store the characteristics of targeted consumers, manufacturers, and retailers;
- Components to gather requirements on new products or services collected from small groups of long-tail consumers;
- Brokerage functions of these requirements among consumers, manufacturers, and retailers;
and
- Generators for dual-directed recommendations focused on temporally changing information of latent consumer groups.

The paper also explains the current status of DAIKOC site implementations, and its future plans to
the small sized long tail business.

 

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Presentation: Oral at International Conference on Economic Science with Heterogeneous Interacting Agents 2008, by Takao Terano
See On-line Journal of International Conference on Economic Science with Heterogeneous Interacting Agents 2008

Submitted: 2008-03-09 05:26
Revised:   2009-06-07 00:48