Lorin Hitt - Faculty Research in Knowledge@Wharton

SAP, Microsoft and the Coming Consolidation in Software

Wed, 14 Jul 2004 17:19:54 EST

Even the most jaded journalists ‑ who scorn press releases ‑ knew there was a hot story in the separate handouts issued June 7 by Microsoft and SAP. Microsoft, the world’s largest maker of software for personal computers, last year had approached Germany’s SAP, a leading enterprise software company, about a potential merger, but the preliminary talks were discontinued this spring, said the dry-as-dust announcements. The news sparked a buzz throughout the technology world, and for good reason. Wharton faculty members and other academics say that it was as good an indication as any that the software industry is ripe for consolidation. They differ, however, on whether SAP needs to link up with a major partner in order to thrive. And some suggest that a SAP-Microsoft merger may not be a dead issue.

The Buzz on Google's IPO

Wed, 19 May 2004 14:34:20 EST

By any measure, there is much to admire about Google - its business model, its laser-like customer-focus, its ability to generate revenues and profit. And yet, with the company’s recently announced plans to go public, Google-watchers also see some formidable obstacles ahead, such as increased competitive challenges from Microsoft, Yahoo! and others. Even the act of going public, observers say, is not without possible drawbacks: a relinquishment of some managerial control, for example, and the need to devise ways to generate more revenue without alienating legions of loyal users. In short, the hottest show in Silicon Valley is ready to roll, and its long-term future is anybody’s guess.

Will Commission Cuts Kill the Small Travel Agent?

Wed, 08 May 2002 00:00:00 EST

When an industry�s revenue base vanishes, it�s time to collapse � or transform. That�s the choice travel agents have faced since March when eight of the nation�s ten largest airlines reduced their base commissions to zero. As a result, agents will have to change from being commission-dependent retail clerks into service-focused professionals with knowledge that leisure travelers are willing to pay for, according to Wharton professors and other experts.

Poachers Are Out to Plunder Your Intellectual Property � Can You Do Anything?

Wed, 01 Aug 2001 00:00:00 EST

As more companies outsource non-core activities and enter into alliances to extend their competitive reach, the risk that someone � a potential partner or vendor � could poach their intellectual property is increasing. While the risk of such theft is hardly new, it is rapidly becoming a serious problem in today�s post-industrial, information-driven society. Wharton�s Eric K. Clemons and Lorin M. Hitt have been studying the issue. Clemons presented the major elements of this research at a recent conference.

Opportunities for B2B e-Business in Real Estate

Wed, 22 Nov 2000 14:28:29 EST

Real estate developers like John Bucksbaum, CEO of General Growth Properties, the second-largest owner and operator of shopping malls in the U.S., see lots of opportunities to expand their business on the Internet. Bucksbaum discussed the company�s e-business strategy at a real meeting of the Samuel Zell and Robert Lurie Real Estate Center. Other panelists discussed a wide range of other issues, from the impact of B2B e-business on real estate to the way demographics will shape the future of real estate demand.

Is Online Consumer Spending Slowing Down?

Wed, 01 Mar 2000 13:58:19 EST

With Internet sales volume expected to reach $133 billion by 2004, electronic merchants are gearing up for a spree of online consumer spending. But their efforts may be misdirected, according to recent data from the Wharton Forum on Electronic Commerce. Forum findings indicate two trends: First, a decline in the rate of growth of online spending per person even though total online retail spending is increasing; and second, a significant dropout rate of online shoppers. In 1998, 15% of the consumers who bought online in 1997 did not buy online in 1998. These trends, according to a Wharton researcher, have �huge implications for the business plans of many B2C dot-coms.�

Have Web Access, Will Travel

Wed, 01 Sep 1999 11:37:43 EST

The Internet has created an environment where customers have almost unlimited access to information relevant to any and all purchasing decisions, or what the Wall Street Journal recently dubbed the "Golden Age for consumers." How will this Golden Age affect retailers? How will it affect margins? What pricing strategies, other than offering lowest possible prices and accepting lowest possible margins, can retailers employ? Wharton�s Eric Clemons, Il-Horn Hann and Lorin Hitt set out to answer these and related questions as they relate to the online travel industry. Both retailers and consumers should find their conclusions instructive.

The Real Benefit of PC Banking

Wed, 23 Jun 1999 08:00:00 EST

Early e-commerce research and studies by consulting firms suggested that the real value of online banking lay in its ability to lower costs. A new investigation by Wharton's Lorin M. Hitt and Harvard's Frances Frei shows, however, that this is hardly the whole story. The researchers argue that the real advantage of PC banking is that banks are able to retain high-profit clients whom they don't want to lose.

Can Number-Crunchers Become Geeks?

Sat, 27 Mar 1999 05:02:31 EST

Many banks spend as much of 15% of their non-interest income on information technology? What determines whether these investments will pay off or flop? A new study by Lorin Hitt and Patrick Harker of Wharton and Frances Frei of Harvard offers some insights.