BMGT301 Exam 2 - Chapters 4, 8, 9, 15, Big Data and Excel

AND Logical Function (Excel Formula)

=AND(condition1,[condition2]) Result is true or false

AVERAGE IF Logical Function (Excel Formula)

=AVERAGEIF(range,criteria,[average range])

AVERAGE IFS Logical Function (Excel Formula)

=AVERAGEIFS(average range, criteria range1, criteria1, [criteria range2, criteria2])

COUNTIF Logical Function

=COUNTIF(range,criteria) Example:=COUNTIF(A2:A5,"apples")

COUNTIFS Logical Function

=COUNTIFS(criteria range1, criteria 1, [criteria range 2, criteria 2])

IF Logical Function (Excel Formula)

=IF(logical test, value if true, [value if false])

Index (Excel Formula)

=INDEX(Range,Cell value in row #, [Cell value in Column #]) Example: =INDEX(A1:C10,2,3)

IRR (Excel Formula)

=IRR(values,[guess])

Match (Excel Formula)

=MATCH(lookup value, lookup array, [match type]) Type 1 finds largest value that is less than or equal to the lookup value, 0 finds first value that is equal to the lookup value, -1 finds the smallest value that is greater than or equal to the lookup value.

NPV (Excel Formula)

=NPV(rate in %,value1,[value 2],[value3])

OR Logical Function (Excel Formula)

=OR(condition1,[condition2])

PMT (Excel Formula)

=PMT(rate in %,nper,pv,[fv])

SLN (Excel Formula)

=SLN(Cost,Salvage,Life)

SUM (Excel Formula)

=SUM(A2,A3) or =SUM(A2:A4,15)

SUM IF Logical Function (Excel Formula)

=SUMIF(range,criteria,[sum range])

SUM IFS Logical Function (Excel Formula)

=SUMIFS(sum range, criteria range1, criteria1, criteria range 2, criteria2)

How can a firm leverage social media?

A firm can leverage social media through Inbound Marketing, leveraging online channels to draw consumers to the firm with compelling content rather than conventional forms of promotion such as advertising, e-mail marketing, traditional mailings, and sales calls.

What role do technology and timing play in realizing advantages from the data asset?

A firm must have the technology available in the right period of time in order to be able to capitalize on a potential advantage from data.

Why would a firm use a loyalty card? What is the incentive for the firm? What is the incentive for consumers to opt in and use loyalty cards? What kinds of strategic assets can these systems create?

A firm uses a loyalty card in order to increase the likelihood of a customer choosing their company, to encourage customers to spend more money, to enable a more personal connection to their customers, to attract new customers, and to enhance the overall value provided by the firm. The firm gets increased sales while customers get rewarded for spending their money at the firm.

What is a blog? How are organizations leveraging blogs?

A medium for posting online diaries. Organizations are leveraging blogs by enticing blog writers to give positive reviews of their products and/or services.

Database (definition)

A single table or collection of related tables.

When might data not yield sustainable advantage?

Data might not yield a sustainable advantage if you cannot appropriately analyze the data to maximize profits or if the other product has VRIS.

What's a wiki? Why is Wikipedia of increasing importance to firms?

A wiki is a website that anyone can directly

What factors do you believe helped each of these efforts achieve dominance?

Being VRIS. Being the first to a market and mastering it is a rare accomplishment achieved by only a few companies.

What is crowdsourcing? Give examples of crowdsourcing.

Crowdsourcing is the act of taking a job typically performed in-house by a company and outsourcing it to a large group of people in an open call. An example is Netflix's user tendency systems.

DBMS (definition)

DBMS stands for Database Management System, which is computer software that collects and analyzes data.

What is Data Analytics?

Data Analytics is the use of math and statistics to derive meanings from data in order help make better and more informed decisions.

What is meant by "data relevance"? What is meant by "data governance"? What is the difference between a data mart and a data warehouse?

Data relevance is the continuous connection between the data being received and the area of interest. Data governance is the overall management of availability, usability, integrity, and security of the data employed in an enterprise. Data warehouses store current and historical data from many core operational transaction systems, consolidate and standardize information for use across enterprises (as long as the data is not altered), and provide query, analysis, and reporting tools to the firm. Data marts are a subset of data warehouses, focusing on summarized data for use by specific populations of users.

What is Big Data?

Data sets that are so large traditional systems cannot analyze the data. The data is unstructured and hard to interpret.

What are the data warehouses?

Data warehouses are databases housing internal and external data.

Solver (Excel)

Data, Analysis, Solver. Set objective, set min/max/value, set changing cell, set constraints, solve.

What are the capabilities of DBMS?

Database Management Systems have interfaces between applications and physical data files, separate logical and physical views of data, solves problems of the traditional file environment (redundancy, inconsistency, organization).

Hierarchy of Data

Database, File, Record, Field, Byte, Bit

What are the three types of Data Analytics?

Descriptive (give summarized past events and explain what happened but not why it happened and what might change), Predictive (use past data to model future outcomes), and Prescriptive (chooses techniques such as optimization to help employees and managers do a better job).

Pivot Table (Excel)

Excel will recommend pivot tables to sort and organize data.

What kind of products or services are subject to network effects?

Facebook, eBay, Twitter, any company where more users boost their content available.

How can a firm monitor its reputation online?

Firms have developed new groups called Online Reputation Management. Their job is the process of tracking and responding to online mentions of a product, organization, or individual. Services supporting online reputation management range from free Google Alerts to more sophisticated services that blend computer-based and human monitoring of multiple media channels.

How might firms leverage this data to better serve you and improve their performance?

Firms provide rewards and usage incentives, typically in exchange for a method that provides a more detailed tracking and recording of customer activity. In addition to enhancing data collection, loyalty cards can represent a significant switching cost.

VLookup (Excel)

First argument is the name of the item you're searching for, second argument is the cell range that contains the data, third argument is the column index number, fourth argument is TRUE or FALSE. For exact matches, select False. For approximate matches, select true. Example: ("apples",A2:B16,1,TRUE)

What is Hadoop? Why would a firm use Hadoop instead of conventional data warehousing and data mart technologies?

Hadoop is an open source effort that provides a collection of technologies for manipulating massive amounts of unstructured data. A firm would use Hadoop instead of conventional data warehousing and data mart technologies because it is flexible, cost effective, and scalable. It was originally used by large internet firms but usage has since become more widespread.

How to get Pivot Table

Insert, Recommended Table

Which firm do you suspect has stronger end-user network effects: Google's online search tool or Microsoft's Windows operating system? Why?

Microsoft has stronger end-user network effects because they offer more complementary products and have a high switching cost.

How are firms negatively impacted by the use of Twitter and other social media?

Negative reviews can be posted and spread quickly. Whatever is said is out of the firm's hands and the spread of the information is up to the public.

What is Netflix churn rate & what are the reasons behind this rate?

Netflix has a very low churn rate, approximately 4%, because of their commitment to customer service.

Does Netflix have a strong brand? How is a strong brand created?

Netflix has a very strong brand which has been built through superior customer service, a large scale, affordable stock, and incredible value to the customer.

What do you believe are the most significant long-term threats to Netflix?

Netflix has established itself as a near monopoly in online streaming. However, this industry has only been around for less than a decade and many new competitors have recently become more powerful, including Hulu and AmazonPrime. Netflix no longer is the only streaming service with large quantities of shows and as new companies enter the market and provide a very similar product for cheaper, Netflix will slowly lose its current competitive advantage.

How does the Netflix business model work?

Netflix represents a classical Service Business Model. The users of the service and the people who pay for it are the same, and users receive entertainment content in exchange for a subscription fee.

What 'class' of software does Netflix use to make video recommendations?

Netflix uses Cinematch, a form of collaborative filtering. It monitors trends among customers and uses the data to individualize that customers experience, allowing consumers to see only products they will be interested in.

What are Netflix sources of competitive advantage? What are the benefits of these advantages?

Netflix's main sources of competitive advantage are their use of user data, a massive scale which allows Netflix to have more capital, and its user tendencies allow for niche content to be distributed well. These advantages allow Netflix to hold onto the top spot in online streaming.

What are network effects?

Network effects are the effects that one user of a good or service has on the value of that product to other users. When a network effect is present, the value of a product or service is dependent on the number of others using it.

How are organizations effectively leveraging social networks?

Organizations have developed SMART, the Social Media Awareness and Response Team, a group tasked with creating policies and providing support, training, guidance, and development expertise for and monitoring of a firm's social media efforts.

What are peer production and social media? Give examples of each.

Peer production involves users working, often collaboratively, to create content and provide services online. Social media is content that is created, shared, and commented on by a broader community of users. An example of peer production is Skype or BitTorrent and an example of social media is YouTube.

Self-regulation is often proposed as an alternative to legislative efforts. What kinds of efforts would provide "teeth" to self-regulation.

Self-regulation addresses privacy concerns that companies may have.

What are relational databases?

The most common standard for databases. These databases are structured to recognize relationships between stored information.

What are the other names for this concept?

The other name for this concept are Network Externalities or Metcalfe's Law.

What are Social Networks?

Social networks are online communities that allow users to establish a personal profile and communicate with others.

What is Technological Leapfrogging?

Technological Leapfrogging is a company offering new technology so superior that it jumps over all other competitors to become a leader in the industry, regardless of other factors.

Is technology a pre-requisite for network effects?

Technology is NOT a pre-requisite for network effects, think of a flea market.

What is meant by the Apple Economy?

The Apple Economy means providing complementary benefits that add value to the existing product, such as Apps with iPhones.

What is the Netflix prize?

The Netflix Prize was an open competition to see who could develop the best collaborative filtering algorithm to predict user streaming choices.

Is data a source of competitive advantage?

The combination of big data and effective analytics provides a competitive advantage, but data alone does not.

What is 'the long tail'?

The phenomenon whereby firms can make money by offering a near-limitless selection of less-popular products.

What are the sources of the network effects?

The sources of network effects are exchange, staying power, and complementary benefits.

Why are data marts and data warehouses necessary?

They are necessary to separate and accurately interpret large amounts of data.

What is Twitter? How are firms effectively using Twitter?

Twitter is a microblogging service whose messages are confined to 140 characters. The default settings allow for asymmetrical following and promotion by firms is a great way to spread their products.

What are the V3 of Big Data?

Volume, Variety, and Velocity

Conditional Formatting (Excel)

What-if analysis that allows you to change formatting of a cell based on data.

What is Web 2.0?

World Wide Web sites that emphasize user-generated content, usability, and interoperability.

Are advantages based on analytics and modeling potentially sustainable? Why or why not?

Yes they are because companies tend to follow similar trends over time.