"Google is using its vast database of web shopping data to construct the Google Price Index – a daily measure of inflation that could one day provide an alternative to official statistics."Using this technology to identify underlying trends in human behavior is valuable for two main reasons:
• First, it measures actual behavior, rather than some abstract construction of theoretically relevant activities.
• Second, it is significantly more efficient than alternative (more traditional) means of collecting similar information:
"The work by Google's chief economist, Hal Varian, highlights how economic data can be gathered far more rapidly using online sources. The official Consumer Price Index data are collected by hand from shops, and only published monthly with a time lag of several weeks."As barriers to the free flow of information continue to break down (Figure 4.4, p102), the effect is a broad democratization of power that resists manipulation. Previously, firms were able to control the message they wanted to convey about their organization and brands by controlling the information flow. As control over information is diffused, control over the message for a firm becomes much more difficult. The result should be a more honest, open relationship between firms and their stakeholders. Those firms that continue to mislead key stakeholders and are discovered will be punished. In such a global business environment, those firms that strive to meet the needs of a broad segment of stakeholders are more likely to flourish.
Take care
David
Bill Werther & David Chandler
Strategic Corporate Social Responsibility: Stakeholders in a Global Environment (2e)
© Sage Publications, 2011
http://www.sagepub.com/strategiccsr2e/
Instructor Teaching Site: http://www.sagepub.com/strategiccsr/
The library of CSR Newsletters are archived at: http://strategiccsr-sage.blogspot.com/
Google to measure inflation by using web data
By Robin Harding in Denver
330 words
12 October 2010
Financial Times
London Ed1
01
http://www.ft.com/cms/s/2/deeb985e-d55f-11df-8e86-00144feabdc0.html
or
http://www.buzzbox.com/top/default/preview/google-to-measure-inflation-by-using-web-data/?clusterId=2117309&id=9866332&topic=google%3Ainflation
From: David Chandler {msbbe096}
Sent: Friday, November 14, 2008 11:44 AM
Subject: Strategic CSR - Google
The two articles in the urls below demonstrate the power of the internet to re-shape the way information is communicated around the globe (Chapter 1: Globalization and the Free Flow of Information, p20; Issues: Internet, p237). This phenomenon will continue to evolve in ways that we have not yet even begun to imagine (at least, those of us who do not work for Google):
“You can Google to get a hotel, find a flight and buy a book. Now you may be able to use Google to avoid the flu.”
The philanthropic arm of the internet search company (http://www.google.org/) has released a new service (http://www.google.org/flutrends/) that will track internet search terms related to the flu nationally (e.g., “cough” or “fever”) and use this information to help identify potential outbreaks of the illness:
“It displays the results on a map of the U.S. and shows a chart of changes in flu activity around the country. The data is meaningful because the Google arm that created Flu Trends found a strong correlation between the number of Internet searches related to the flu and the number of people reporting flu symptoms.”
This information is powerful because of the speed with which it identifies early trends to which government agencies and health providers can then react:
“Tests of the new Web tool from Google.org, the company's philanthropic unit, suggest that it may be able to detect regional outbreaks of the flu a week to 10 days before they are reported by the Centers for Disease Control and Prevention.”
I believe that firms are just beginning to appreciate the ways in which these communication tools will affect their operations and reputations. What seems apparent, however, is that the affect will be dramatic and that firms that are not transparent and accountable to their stakeholders will suffer as a result.
Have a good weekend.
David
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
Sniffly Surfing: Google Unveils Flu-Bug Tracker
By Robert A. Guth
1070 words
12 November 2008
The Wall Street Journal
D1
http://sec.online.wsj.com/article/SB122644309498518615.html
Aches, a Sneeze, a Google Search
By MIGUEL HELFT
1267 words
12 November 2008
The New York Times
Late Edition - Final
1
http://www.nytimes.com/2008/11/12/technology/internet/12flu.html
