1. Problem based learning and the virtual economy: A new approach to teaching ecommerce Ameritech Fellows Summer Program Howard Rosenbaum hrosenba@indiana.edu hrosenba@indiana.edu School of Library and Information Science Center for Social Informatics Indiana University 06/28/01

2. Ameritech Fellows Summer Forum Rosenbaum: PBL and the VE: A new approach … I. Introduction The virtual economy and ecommerce II. Pedagogical strategy Problem based learning Structure of the course III. The student experience in the VE Store owners Shoppers IV. Discussion Challenges and opportunities

3. Ameritech Fellows Summer Forum Rosenbaum: PBL and the VE: A new approach … I. Introduction The virtual economy and ecommerce Challenge: to design and develop an inquiry-based learning environment for teaching ecommerce Objective: provide students with a challenging, novel, technology-focused, and learner-centered educational experience They learn by “ doing ” ecommerce instead of listening to someone talk about how to do ecommerce Technology: a working, robust, and web-based virtual economy (VE: Web, Cold Fusion, and Oracle) Syllabus: http://www.slis.indiana.edu/hrosenba/www/L561/syll/syll6.html

4. Ameritech Fellows Summer Forum Rosenbaum: PBL and the VE: A new approach …

5. Ameritech Fellows Summer Forum Rosenbaum: PBL and the VE: A new approach … http://ebiz.slis.indiana.edu/g/ve/login.cfm

6. Ameritech Fellows Summer Forum Rosenbaum: PBL and the VE: A new approach … I. Introduction The virtual economy and ecommerce II. Pedagogical strategy Problem based learning Structure of the course III. The student experience in the VE Store owners Shoppers IV. Discussion Challenges and opportunities

7. Ameritech Fellows Summer Forum Rosenbaum: PBL and the VE: A new approach … II. Pedagogy Problem based learning VE: a distributed digital marketplace simulating a competitive environment for buying and selling Teaching: developing, implementing, using and testing a curriculum based on “ problem based learning ” Learning: confronting and resolving a series of problems related to starting up and managing an ebusiness Activities: students start up, design, and operate e- businesses which compete in the VE Shoppers use digital money to purchase information products and services

8. Ameritech Fellows Summer Forum Rosenbaum: PBL and the VE: A new approach … The pedagogical approach: problem-based learning and the development of a situated learning environment In starting up, designing, and managing an ebusiness, students face an ill-structured problem They work in small, self-directed teams and investigate issues involved in creating web-based ebusinesses Students are responsible for determining what they need to learn to develop and manage their ebusinesses They draw upon a range of disciplines to resolve the problems they face

9. Ameritech Fellows Summer Forum Rosenbaum: PBL and the VE: A new approach … There are real-world benchmarks against which student work can be evaluated Sales, repeat customers, traffic reports, and customer feedback Students apply what they learn to the basic problem as it evolves over time This is “ authentic learning ” because “ students publicly exhibit their learning, and there are often real life standards of quality ” (Gordon 1998: 391) Outcome: “ higher levels of comprehension, more learning and knowledge-forming skills, more social skills ” (Rheem, 1999)

10. Ameritech Fellows Summer Forum Rosenbaum: PBL and the VE: A new approach … Structure of the course and timeline for the VE Week 1: Introduction: Developing a start-up company Week 2-7: Design, build, and test the site 2: Present business plan, begin content development 3: Database population, evaluation of sites and development of initial prototype 4: Development of advertising and marketing plan 5: Final design; online ad auction 6,7: Presentation of customer service and support strategies, testing and redesign (if necessary) Week 8-15: Operate the storefronts

11. Ameritech Fellows Summer Forum Rosenbaum: PBL and the VE: A new approach … I. Introduction The virtual economy and ecommerce II. Pedagogical strategy Problem based learning Structure of the course III. The student experience in the VE Store owners Shoppers IV. Discussion Challenges and opportunities

12. Ameritech Fellows Summer Forum Rosenbaum: PBL and the VE: A new approach … The student experience in the VE: Store owners: Developed and implemented business plans Designed working storefronts Designed content pages (product descriptions, help pages, etc) Used a template page to set up a product catalog, transaction procedures, and an order form Developed content Annotated bibliographies and collections of articles, web site reviews, newsletters, subscription services, editing and consulting activities, and entertainment

13. Ameritech Fellows Summer Forum Rosenbaum: PBL and the VE: A new approach … They: Created advertising and marketing strategies, banner ads for the portal page, sales, and other promotions Participated in an ad auction Set up customer service and loyalty programs Developed policies to protect customer privacy, handle grievances, complaints, and technical support Managed their businesses Monitored store accounts, handled customer service and support, and maintained inventory Added and removed content and redesigned sites

14. Ameritech Fellows Summer Forum Rosenbaum: PBL and the VE: A new approach … Synergia: information services Vegas Casino: entertainment GetBusy: information, servicesDigiTeam: collaboration services Succinct: subscription SWOT.com: informationGetBusy Business Bistro: bundled information

15. Ameritech Fellows Summer Forum Rosenbaum: PBL and the VE: A new approach … Through their actions, store owners raised some fascinating ethical issues They Took advantage of the architecture of the VE Looked at each others ’ store directories Read each other ’ s weekly reports Searched for pricing information One group downloaded at least one of another group ’ s articles and sold it as their own When do business practices cross the line between competitive and unethical?

16. Ameritech Fellows Summer Forum Rosenbaum: PBL and the VE: A new approach … The student experience in the VE Consumers Had to develop familiarity with ecommerce Used the VE extensively Checked their accounts and purchase histories Provided extensive feedback to store owners and the instructor Committed fraud Claimed files were corrupted or never delivered Took advantage of closing strategies Formed buying circles

17. Ameritech Fellows Summer Forum Rosenbaum: PBL and the VE: A new approach … I. Introduction The virtual economy and ecommerce II. Pedagogical strategy Problem based learning Structure of the course III. The student experience in the VE Store owners Shoppers IV. Discussion Challenges and opportunities

18. Ameritech Fellows Summer Forum Rosenbaum: PBL and the VE: A new approach … IV. Discussion Challenges and opportunities Assessment of the project Assessment is ongoing and have thus far involved three methods Student feedback from team meetings throughout the semester Student papers on ecommerce issues Student reflective essays at the end of the course Peer evaluations from participating faculty

19. Ameritech Fellows Summer Forum Rosenbaum: PBL and the VE: A new approach … Obstacles There were technical and social obstacles to overcome Technical: developing the VE Hiring and working with student programmers Troubleshooting while the VE was operational Handling over 400 student-shoppers Social Working with the participating faculty in three countries Managing the student teams

20. Ameritech Fellows Summer Forum Rosenbaum: PBL and the VE: A new approach … What I needed to learn How to change my pedagogical approach to take full advantage of problem based learning How to manage small groups by walking a fine line between intervention and imposition How to talk and work with programmers and database designers There were as many as five people working on the VE simultaneously this spring The VE is a complex infrastructure

21. Ameritech Fellows Summer Forum Rosenbaum: PBL and the VE: A new approach … Assistance I sought the assistance of faculty colleagues teaching ecommerce and related courses Australia: University of Canberra: Ric Jentzsch University of Queensland: Sophie Cockcroft UK University of Bath: Richard Vigden, Joe Nandhakumar University of Greenwich: Margaret Lennox US The Citadel: Janette Moody Duquesne University: A. Graham Peace, William Spangler Kennesaw State University: Martha Meyers Lehigh University: Catherine Ridings University of Oklahoma: Laku Chidambaram Georgia College and State University: Ric Bialac I also sought the assistance of a talented groups of SLIS students, some on the payroll and some with independent studies

22. Ameritech Fellows Summer Forum Rosenbaum: PBL and the VE: A new approach … What I would change I would use project management principles early on to set the technical development in motion Hire developers who can make more than a one semester commitment Begin negotiating with participating faculty a full semester in advance I would develop online assessment tools as the class takes shape

23. Ameritech Fellows Summer Forum Rosenbaum: PBL and the VE: A new approach … Advice Learn as much as you can about the technologies you want to use Be prepared for the project to be all-consuming Time management is necessary Expected unexpected problems Technical: problems with the system and the network Social: problems with participants Lost passwords Lack of participation Problems with store teams Problems with hired and volunteer staff

24. Ameritech Fellows Summer Forum Rosenbaum: PBL and the VE: A new approach … Mentoring and dissemination I worked intensively with the participating faculty Dissemination has included: The VE and course material on the web http://ebiz.slis.indiana.edu/g/ve/login.cfm http://www.slis.indiana.edu/hrosenba/www/L561/syll/syll6.html An article Rosenbaum, H. (2000) Teaching Electronic Commerce: Problem based learning in a Virtual Economy. Journal of Informatics Education and Research 2(2). 45-58.

25. Ameritech Fellows Summer Forum Rosenbaum: PBL and the VE: A new approach … Conference presentations Supercomputing ‘00 (Dallas) America’s Conference for Information Systems ‘00 (Long Beach) EDiNeb: Technology and Innovation in Pedagogy ‘01 (Nice, France) America’s Conference for Information Systems ‘01 (Boston) American Society for Information Science and Technology ‘01 (Washington DC) Second Association of Internet Researchers Conference ‘01 (Minneapolis)