istm 643 ch. 6-10

Amazon spent _______ billion on shipping costs in 2020.

$61.1

optical fiber line

A high-speed glass or plastic-lined networking cable used in telecommunications.

adaptor

A product that allows a firm to tap into the complementary products, data, or user base of another product or service.

social networks

An online community that allows users to establish a personal profile and communicate with others. Large public social networks include Facebook, LinkedIn, Google+, and Pinterest.

same-side exchange benefits

Benefits derived by interaction among members of a single class of participant (e.g., the exchange value when increasing numbers of IM users gain the ability to message each other).

What did Waze offer Google?

Better maps through crowdsourcing

Why is Apple Pay an example of a two-sided network?

Buyers attract sellers and vice versa

Moore's Law

Chip performance per dollar doubles every eighteen months.

hybrid clouds

Cloud computing architectures that combine on-premises infrastructure with public cloud services, such as those provided by AWS or Microsoft Azure. A hybrid cloud might "turn on" public cloud resources as needed, if an organization's existing infrastructure can't meet surging demand.

cluster computing

Connecting server computers via software and networking so that their resources can be used to collectively solve computing tasks.

social media

Content that is created, shared, and commented on by a broader community of users.

Amazon's ______ product is a fabric, no-screen health and wellness band that contains sensors and a microphone.

Halo

What did Eric Yuan do when a barrage of unforeseen security and privacy issues hit Zoom?

He halted the release of any new features for ninety days so all engineers could work on stamping out issues.

IRL

In Real Life—online acronym for interactions outside of pre-produced videos, podcasts, etc.

fork

In software development (sometimes also called project fork). When developers start with a copy of a project's program source code, but modify it, creating a distinct and separate product from the original base.

viral

In this context, information or applications that spread rapidly between users.

If you want to have conversations with colleagues, clients, and potential employers, you'll need to speak their language and understand their vocabulary. One term you may hear is ____________________. The phrase is often used to refer to disruptive technology theory and it is also the name of Prof. Clayton Christensen's book (Christensen is considered the father of Disruptive Innovation theory).

Innovator's Dilemma

fabs

Semiconductor fabrication facilities; the multibillion dollar plants used to manufacture semiconductors.

_____ refers to the long-term viability of a product or service.

Staying power

congestion effects

When increasing numbers of users lower the value of a product or service.

Who will take over as Amazon's new CEO?

andy jassy

Engineering the posting of positive comments and reviews of a firm's product and services on feedback forums is known as _____.

astroturfing

The public ledger that records transactions and ownership of bitcoins is known as the: a.MoneyGram. b. Satoshi Nakamoto. c. blockchain. d. public key. e. miner log.

blockchain

Online journal entries, usually made in a reverse chronological order, are known as _____.

blogs

Which of the following is the temporary storage that provides fast access for executing computer programs and files? a. Compact disk memory b. Hard disk c. Read-only memory d. Random-access memory e. Magnetic disk storage

d. Random-access memory

The price/performance improvements in Moore's Law apply to: a. all of the above. b. telecommunications devices. c. none of the above. d. silicon-based computing and storage components. e. hard drives.

d. silicon-based computing and storage components.

t/f Amazon has found that collaborative filtering software is cumbersome and slows their productivity and revenues.

false

t/f Buying Twitch was bad investment for Amazon, as far fewer users tune in to watch other people play video games than tune in to watch conventional television network shows.

false

t/f Twitter is larger than other social media sources.

false

t/f Disruptive innovations are often so damaging because the new technology has better margins than the incumbent technology being displaced.

false, The most disruptive technologies also often have worse margins than the initially dominant incumbent offerings. Since these markets don't look attractive, big firms don't dedicate resources to developing the potential technology or nurturing the needs of a new customer base.

t/f Technology products are considered to be price inelastic.

false, When technology gets cheap, price elasticity kicks in. Tech products are highly price elastic, meaning consumers buy more products as they become cheaper. And it's not just that existing customers load up on more tech; entire new markets open up as firms find new uses for these new chips.

t/f In tech circles, low latency is not good.

false, delay is sometimes referred to as latency—and low latency is good. It means communications are speedy.

About 70 percent of the cost of Whole Foods was categorized in Amazon financials as _________.

goodwill

Netflix leveraged crowdsourcing by offering one million dollars to the first team to:

improve accuracy of its movie recommendations by 10 percent.

The _____ is considered the brain of a computing device.

microprocessor

A(n) _____ refers to a market dominated by a small number of powerful sellers.

oligopoly

A(n) _____ is the one that derives most of its value from a single class of users.

one-sided market

________ refers to efforts where an organization pays to leverage a channel or promote a message. Paid media efforts include things such as advertisement and sponsorships.

paid media

The phrase _____ is used to refer to situations in which users collaboratively work to create contents, products, and services. Examples include social media as well as service like Skype and BitTorrent.

peer production

Large firms that find new markets attractive but don't yet have products ready for delivery might _______ efforts in order to cause potential adaptors to sit on the fence.

preannounce

t/f Blockchain has the potential for lowering payment transaction fees in a way that would be attractive to retailers.

true, Much of the blockchain's appeal comes from the fact that asset ownership records are transferred from person to person like cash, rather than using an intermediary like banks or credit card companies. Getting rid of card companies cuts out transaction fees, which can top 3 percent.

t/f For most consumers, cryptocurrency is a difficult to understand and often difficult to use technology that offers little benefit.

true, While international remittance customers and those otherwise left out of the banking and credit card system can see immediate benefit from crypto cash replacements, most of the population isn't impacted by this market. For most, cryptocurrency is a difficult to understand and often difficult to use technology that offers little benefit. Slick apps and firms offering streamlining support services that allow, for example, the easy and quick conversion from dollars (or other currencies) to cryptocurrency and back will help, but unless this offers consumer value beyond the credit card, few will bother to switch from plastic.

Salesforce.com's Chatter, Microsoft's Yammer, HipChat, and Slack are all services that have been billed as "_____________."

twitter for the enterprise

technology stack

All of the technology products and services used to build and run one single information technology solution.

network effects

Also known as Metcalfe's Law, or network externalities. When the value of a product or service increases as its number of users expands.

daily active users

Also known by the acronym DAU, this refers to the number of unique visitors, on average, who use a product or service.

channel conflict

Exists when a firm's potential partners see that firm as a threat. This threat could come because it offers competing products or services via alternative channels or because the firm works closely with especially threatening competitors.

Longtime Amazon shipping partner _______ dropped the firm in 2019 for both air and ground deliveries.

FedEx

prediction market

Polling a diverse crowd and aggregating opinions in order to form a forecast of an eventual outcome.

dynamic pricing

Pricing that shifts over time, usually based on conditions that change demand (e.g., charging more for scarce items).

_____ refers to a false online persona created to promote a particular point of view often in praise of a firm, product, or individual.

Sock puppet

SDK

Software development kit. Tools that allow the creation of products or add-ons for a specific operating system or other computing platform.

________ are media from communication channels that an organization controls. These can include firm-run blogs and websites, any firm-distributed corporate mobile website or app, and organization accounts on social media such as Twitter, Facebook, Pinterest, YouTube, and Instagram.

Owned media

Which of the following is one of the differences between Twitter and Facebook?

Twitter settings allow asymmetrical following, unlike Facebook.

The Osborne Effect

When a firm preannounces a forthcoming product or service and experiences a sharp and detrimental drop in sales of current offerings as users wait for the new item.

cross-side exchange benefit

When an increase in the number of users on one side of the market (console owners, for example) creates a rise in the other side (software developers).

envelopment

When one market attempts to conquer a new market by making it a subset, component, or feature of its primary offering.

free rider problem

When others take advantage of a user or service without providing any sort of reciprocal benefit.

collaborative consumption

When participants share access to products and services rather than having ownership. Shared resources can be owned by a central service provider (e.g., Zipcar) or provided by a community that pools available resources (e.g., Airbnb, Uber).

convergence

When two or more markets, once considered distinctly separate, begin to offer features and capabilities. As an example: The markets for mobile phones and media players have converted (and smartphones won).

peer production

When users work, often collaboratively, to create content and provide services.

The phenomenon known as ___________________ exists when a firm's potential partners see the firm as a threat. This threat could come because it offers competing products or services via alternative channels or because the firm works closely with especially threatening competitors.

channel conflict

You are at a packed stadium for the big game and you want to upload a photo of your team's touchdown using Instagram. Your mobile phone shows five bars of service, but you still can't access the Internet. This is likely an example of _______________.

congestion effects

Envelopment is a strategy in which a firm seeks to:

conquer a new market by making it a subset, component, or feature of its primary offering.

When two or more markets, once considered distinctly separate, begin to offer similar features and capabilities, they are said to undergo _____.

convergence

An increase in the number of subscribers of yellow pages creates a rise in the number of advertisers. This is an example of _____ exchange benefits.

cross-side

t/f Don't confuse blogs with conventional search engine results. Blogs are very important, but they do not influence the content that appears in searches through Google or Bing.

false

t/f Bloggers and other users of social media often refer to the MSM. This phrase stands for Media Social Methods.

false,

t/f While blogs are effective for communicating with the public, firms shouldn't use blogs for internal communication since everyone can see them.

false,

t/f A/B Testing refers to an effort where prices fluctuate based on supply and demand conditions.

false, A/B Tests are a randomized group of experiments used to collect data and compare performance among two options studied (A and B). The ability to rapidly perform and act on A/B tests is an advantage that online firms have over offline rivals.

t/f The AWS business is promising for Amazon in that it is used by more firms than any other effort. However, like many of Amazon's other "long bet" gambits, AWS has yet to earn any money.

false, AWS is responsible for the majority of Amazon's operating profit and, if considered a separate business, would be as big as a Fortune 100 company.

In order to achieve a negative cash conversion cycle a firm would want to:

increase its account payable period and its inventory turns.

The final stage of getting a product to the consumer, typically by small delivery van or other vehicle, is known as _____________.

last-mile delivery

The term __________________________________________________ refers to showing ads for products and services from a site that a user has previously visited.

retargeting

Benefits derived by interaction among members of a single class of participants are called _____ exchange benefits.

same-side

Giving away products for half of a two-sided market is an extreme example of _____.

seed the market

Amazon reports a negative cash conversion cycle, which means it:

sells goods before it has to pay its suppliers.

A(n) _____ is an online community that allows users to establish a personal profile and communicate with others.

social network

The phrase ________________ refers to the positive influence created when someone finds out that others are doing something.

social proof

GitHub and Stack Overflow are websites that are especially useful for students and professionals focusing on the _______________________ industries.

software development

The acronym VoIP is considered by many to be a disruptive innovation. It refers to:

the technology used in internet telephony.

t/f Amazon has a $100 million fund to developers enhancing technologies and developing new apps.

true

t/f Amazon offers personal cloud storage options for all forms of media, including books, games, music, and video. It even offers file storage akin to Dropbox and Google Drive.

true

t/f Apple reduced the switching costs and increased Mac adoptions when the switched from the PowerPC to using Windows-compatible Intel microprocessors.

true

t/f As of early 2021, five of the top ten most popular Internet sites in the world focused on social media, peer-produced content.

true

t/f Blogging can be an effective tool for firms to share opinions directly with the public without communication being filtered by a journalist or narrowed by the editor of a third-party publication.

true

t/f Concern over managing a firm's online image has led to the rise of an industry known as online reputation management.

true

t/f Keeping control of its own shipping needs allows Amazon to save about a third in costs that would normally go to third parties.

true

t/f Many wikis also serve as knowledge management systems that act as a sort of collective corporate memory that's vital for sharing skills, learning, and preserving expertise when employees leave the firm.

true

t/f Netflix runs on Amazon Web Services.

true

t/f Products and services that can be considered to be a "platform" allow for the development and integration of software products and other complementary goods are known.

true

t/f Publicly declared affiliations, political or religious views, excessive contact, declined participation, and other factors might lead to awkward or strained employee relationships.

true

t/f SDK are tools that allow the creation of products or add-ons for a specific operating system.

true

t/f SMART is an acronym for social media awareness teams.

true

t/f Some networks are curating user feeds, so it's not guaranteed that what you're posting on social networks will even be seen

true

t/f The version history and roll back features of wikis is considered to be more clear, allowing users to be able to see who made what edits, than collaborating simultaneously in a tool such as Google Docs or Office365.

true

t/f Twitter ads are billed on pay per performance when there is a retweet, follow, buy, or other engagement with a promotion.

true

t/f Twitter initially made its data available for free to other developers via API (application programming interface).

true

t/f Wikis can be effective for group work and team meetings, since they can be used for everything from posting an agenda in advance, to prompting users to share documents before face-to-face brainstorming and feedback.

true

t/f An exabyte is bigger than a petabyte

true, 1 petabyte (PB) is one quadrillion bytes or 250 bytes. 1 exabyte (EB) is one quintillion bytes or 260 bytes.

t/f ARM chips are generally not as powerful as desktop chips, however, Moore's law is making these chips powerful enough for server tasks, bringing with them the added benefit of requiring less energy to operate.

true, ARM chips (once computational weaklings) are now fast enough to invade the established market for laptop and server chips. ARM designs are especially attractive to smartphone manufacturers because they are far more power-efficient than the chips Intel sells for PCs, laptops, and servers. The Intel chips were never designed for power efficiency; they evolved from markets where computers were always plugged in.

t/f Apple created a robot with twenty-nine free-standing arms that can disassemble, repurpose, and recycle components in returned iPhones.

true, Apple claims its Daisy recycling robot can take apart 200 iPhones every hour, and says it diverted 48,000 metric tons of electronic waste from landfills in its first year. Apple has publicly stated it has set a goal to make all of its products only from recycled or renewable material.

t/f Flash memory is nonvolatile memory.

true, Cameras, MP3 players, USB drives, mobile phones, and even many lightweight notebook computers often use flash memory (sometimes called flash RAM or flash storage). It's not as fast as the RAM used in most traditional PCs, but holds data even when the power is off (so flash memory is also nonvolatile memory). You can think of flash memory as the chip-based equivalent of a hard drive.

t/f Flash memory is solid-state memory.

true, Chips are solid state electronics (meaning no moving parts), so they're less likely to fail, and they draw less power.

t/f One yet-to-be-proven technology that could blow the lid off what's possible today is quantum computing.

true, Conventional computing stores data as a combination of bits, where a bit is either a one or a zero. Quantum computers, leveraging principles of quantum physics, employ qubits that can be both one and zero at the same time.

t/f Cryptocurrency has the potential to greatly reduce the costs associated with cross-border financial transfers.

true, Cryptocurrency could be a boon for international commerce, especially for cross-border remittance and in expanding e-commerce in emerging markets. A blockchain-based transfer would be immediate and could theoretically eliminate all transaction fees.

t/f Customers who purchase Kindle products buy significantly more products from Amazon than those who do not own a Kindle.

true, Estimates of the firm's Kindle-generated revenue bump vary, but all point to positive Kindle-fueled sales gains. RBC Capital estimates that despite being sold at a loss, each Kindle Fire generates over $136 in operating income, with operating margins above 20 percent over the lifetime of the device.

t/f Experts advise firms to hedge against disruptive technology by developing a portfolio of technology options, giving the firm the right (but not the obligation) to continue and increase funding as a technology shows promise.

true, Firms identifying potentially disruptive technologies are wise to create a portfolio of technology options‚ startups or in-house efforts otherwise isolated from the firm's core business and management distraction. Options give the firm the right (but not the obligation) to continue and increase funding as a technology shows promise. It's also important that these experimental efforts are nurtured in a way that is sufficiently separate from the parent to offer staff working on the innovation a high degree of autonomy and protection.

t/f While no crystal ball exists to identify disruptive technologies with perfect accuracy, firms that have external conversations with innovative external groups, as well as improving internal communication with technologies can help.

true, Having conversations with those outside the firm working on the experimental edge of advancements is key. Top-tier scientific researchers and venture capitalists can be particularly good sources for information on new trends. Increasing conversations across product groups and between managers and technologists can also be helpful. Many disruptive firms were started by former employees of the disrupted giants. Employees who feel so passionate about a trajectory for future technology that they are willing to leave the firm and risk it all on a new endeavor may be a signal that a development is worth paying attention to.

_____ is the idea that a group of amateur individuals collectively have more insight than a single or small group of trained professionals.

wisdom of crowds

data warehouse

A set of databases designed to support decision-making in an organization.

The Purdue - Amazon bookstore partnership has lowered text book cost by _______ percent.

40

As many as ____________ automated ‚ robots were used with the express purpose of sowing confusion during the 2016 U.S. presidential election.

50,000

collaborative filtering

A classification of software that monitors trends among customers and uses this data to personalize an individual customer's experience.

instance

A software-based copy using a pre-defined model of the object being created. For example, an instance of a Windows computer creates a virtual software representation that works and acts exactly like the computer hardware and software it is modeled after.

serverless

A cloud computing model that allows a software developer to create systems without having to think about servers, and often without needing to think about specific software products like databases. Amazon's Lambda and Google's Cloud Firestore are example of serverless products, where a software developer simply writes code to execute on Amazon or Google's computers, without worrying about allocating servers, installing operating systems, or buying additional software products (or, in the case of Cloud Firestore, databases) to support the effort. The cloud vendor does all of this behind the scenes, leaving the developer free to focus just on programming the application.

cryptocurrencies

A digital asset where a secure form of mathematics (cryptography) is used to handle transactions, control the creation of additional units, and verify the transfer of assets. Cryptocurrencies usually take advantage of a technology known as a blockchain.

blockchain

A distributed and decentralized ledger that records and verifies transactions and ownership, making it difficult to tamper with or shut down.

sock puppets

A fake online persona created to promote a particular point of view, often in praise of a firm, product, or individual. Be aware that the use of undisclosed relationships in endorsements is a violation of U.S. Federal Trade Commission rules.

software as a service (SaaS)

A form of cloud computing where a firm subscribes to a third-party software and receives a service that is delivered online.

cookie

A line of identifying text, assigned and retrieved by a given Web server and stored by your browser.

blog rolls

A list of a blogger's favorite blogs. While not all blogs include blog rolls, those that do are often displayed on the right or left column of a blog's main page.

oligopoly

A market dominated by a small number of powerful sellers.

one-sided market

A market that derives most of its value from a single class of users (e.g., instant messaging).

monopoly

A market where there are many buyers but only one dominant seller.

server farm

A massive network of computer servers running software to coordinate their collective use. Server farms provide the infrastructure backbone to SaaS and hardware cloud efforts, as well as many large-scale Internet services.

hashtags

A method for organizing tweets where keywords are preceded by the # character.

what you see is what you get (WYSIWYG)

A phrase used to describe graphical editing tools, such as those found in a wiki, page layout program, or other design tool.

freemium

A product with a free version—sometimes with limited features or that stops working after a period of time—to allow customers to try a product and hopefully entice them into making a product purchase or subscription decision.

A/B test

A randomized group of experiments used to collect data and compare performance among two options studied (A and B). A/B testing is often used in refining the design of technology products, and A/B tests are particularly easy to run over the Internet on a firm's website. Amazon, Google, and Facebook are among the firms that aggressively leverage hundreds of A/B tests a year in order to improve their product offerings.

virtual machine

A software-based representation of a physical computer, complete with operating system and any attendant software that are part of the model being instantiated. You can use a virtual machine like a physical machine, and install software, create files, etc. Virtual machines can also be subject to viruses, security vulnerabilities, and other weaknesses of physical computing, although a cloud computing provider can take some measures to prevent attacks and provide backup and redundancy.

semiconductor

A substance such as silicon dioxide used inside most computer chips that is capable of enabling as well as inhibiting the flow of electricity. From a managerial perspective, when someone refers to semiconductors, they are talking about computer chips, and the semiconductor industry is the chip business.

Web 2.0

A term broadly referring to Internet services that foster collaboration and information sharing; characteristics that distinctly set "Web 2.0" efforts apart from the static, transaction-oriented Web sites of "Web 1.0." The term is often applied to websites and Internet services that foster social media or other sorts of peer production.

HPC

A term for massively parallel computers specifically designed to deliver significantly more calculating power than conventional off-the-shelf computing technologies. The term is often used interchangeably with supercomputing.

latency

A term often used in computing that refers to delay, especially when discussing networking and data transfer speeds. Low-latency systems are faster systems.

noSQL

A term used for non-tabular databases that are structured differently than relational tables.

silicon wafer

A thin, circular slice of material used to create semiconductor devices. Hundreds of chips may be etched on a single wafer, where they are eventually cut out for individual packaging.

grid computing

A type of computing that uses special software to enable several computers to work together on a common problem as if they were a massively parallel supercomputer.

deep learning

A type of machine learning that uses multiple layers of interconnections among data to identify patterns and improve predicted results. Deep learning most often uses a set of techniques known as neural networks and is popularly applied in tasks like speech recognition, image recognition, and computer vision.

Internet of Things (IoT)

A vision where low-cost sensors, processors, and communication are embedded into a wide array of products and our environment, allowing a vast network to collect data, analyze input, and automatically coordinate collective action.

wiki

A website that can be modified by anyone, from directly within a web browser (provided that user is granted edit access).

Firms that manufacture products where silicon-based components represent a large portion of the product's cost of goods are likely to carry as little inventory as possible because: A. depreciation rates of chip-based electronics are high. B. moving excess inventory between warehouses is expensive. C. they are always in short-supply because of huge demand. D. with technology moving away from silicon based chips, it is prudent to maintain limited inventories. E. silicon chips are susceptible to physical and electronic damage if left unused for long periods of time.

A. depreciation rates of chip-based electronics are high.

Which of the following is true about Facebook and Twitter feeds?

All Twitter posts appear in the feeds of followers with an open Twitter app, but Facebook posts are curated and only appear in the feeds of some friends and fans.

Identify the accurate statement about Amazon a. Amazon employees are given the freedom to challenge even the most senior managers, all the way up to the CEO. b. Amazon looks to make money directly from Kindle hardware sales. c. Amazon does not allow third-party sellers to use its website. d. The A/B testing used in Amazon is particularly difficult to run over the Internet on a firm's website.

Amazon employees are given the freedom to challenge even the most senior managers, all the way up to the CEO.

goodwill

An accounting term for an intangible asset above and beyond the operations value of the firm. Goodwill can include the perceived value of the company's brand name, customer base, and loyalty, positive employee relations, as well as proprietary technology and patents.

blue ocean strategy

An approach where firms seek to create and compete in uncontested "blue ocean" market spaces, rather than competing in spaces and ways that have attracted many similar rivals.

total cost of ownership

An economic measure of the full cost of owning a product (typically computing hardware and/or software). TCO includes direct costs such as purchase price, plus indirect costs such as training, support, and maintenance.

neutral point of view (NPOV)

An editorial style that is free of bias and opinion. Wikipedia norms dictate that all articles must be written in NPOV.

bitcoin

An open source, decentralized payment system (sometimes controversially referred to as a digital, virtual, or cryptocurrency) that operates in a peer-to-peer environment, without bank or central authority.

While Gordon Moore's paper originally stated that Moore's Law meant a doubling of transistor density roughly every two years, and some suggest a doubling every two and a half years, the managerial definition of Moore's Law that you'll often see appearing in the trade press is: ______________________. A. microprocessor's become cheaper over time. B. chip performance per dollar doubles every 18 months. C. hard drive storage per dollar doubles every year. D. costs relative to chip performance double every 18 months. E. transistor density is halved every 18 months.

B. chip performance per dollar doubles every 18 months.

The phrase ______________ refers to efforts where participants share access to products and services rather than having ownership.

Collaborative consumption

owned media

Communication channels that an organization controls. These can include firm-run blogs, websites, apps, and organization accounts on social media such as Twitter, Facebook, Pinterest, YouTube, and Instagram.

technological leapfrogging

Competing by offering a new technology that is so superior to existing offerings that the value overcomes the total resistance that older technologies might enjoy via exchange, switching cost, and complementary benefits.

massively parallel

Computers designed with many microprocessors that work together, simultaneously, to solve problems.

supercomputers

Computers that are among the fastest of any in the world at the time of their introduction.

The phenomenon of ________________________________________ exists when increasing numbers of users lower the value of a product or service.

Congestion effects

While we have some evidence that Moore's Law is slowing, we're also seeing many key areas of computing improve on cost/performance curves at rates far greater than Moore's Law. One area is in how quickly and cost effectively we can use technology to ______________. A. enable accurate predictions B. develop video games C. push the computing of huge, remote brains out to all sorts of "edge" devices D. develop AI and machine learning models E. keep industries stable

D. develop AI and machine learning models

DMCA

Digital Millennium Copyright Act—U.S. law protecting copyrighted works from unauthorized digital distribution.

e-waste

Discarded, often obsolete technology; also known as electronic waste.

_________ started __________, building the world's first socially driven beauty brand, leveraging social media to share, promote, and co-create.

Emily Weiss; Glossier

astroturfing

Engineering the posting of positive comments and reviews of a firm's product and services (or negative ones of a firm's competitors). Many ratings sites will penalize firms that offer incentives for positive feedback posts.

Which of the following statements is true regarding Amazon's fulfillment operations? a. It relies mostly on human beings rushing around maze-like warehouse shelves to stock products and pick orders. b. Amazon is now using 1,000 robots and a single warehouse can have as many as 500 shelf-carrying robots. c. Amazon's software enforces a rule when stocking shelves, where similar products must be stowed next to each other. d. All of the above are correct. e. Humans play a critical role in both catching errors and making systems and software more productive.

Humans play a critical role in both catching errors and making systems and software more productive.

embassy

In the context of social media, an established online presence where customers can reach and interact with the firm. An effective embassy approach uses a consistent firm name in all its social media properties.

long tail

In this context, refers to an extremely large selection of content or products. The long tail is a phenomenon whereby firms can make money by offering a near-limitless selection.

fulfillment costs

Include receiving and packaging costs, in addition to shipping costs.

operating income

Income you generate through your operations. Sales through daily business operations minus related expenses. Net income is overall "profit" but can include things such as income from investments, expenses related to financing costs or taxes, or one-time income or expenses such as a gain from a sales or a corporate fine.

wikimasters

Individuals often employed by organizations to review community content in order to delete excessive posts, move commentary to the best location, and edit as necessary.

griefers

Internet vandals and mischief makers; also sometimes referred to as trolls.

_______ are measurable values defined by a firm to demonstrate progress toward a given goal.

KPIs

KPIs

Key Performance Indicators—measurable values defined by a firm to demonstrate progress toward a given goal. Examples are quite broad and could include customer acquisition, cost reduction, or improvement in the ROI of online ad campaigns.

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.

trackbacks

Links in a blog post that refer readers back to cited sources. Trackbacks allow a blogger to see which and how many other bloggers are referring to their content. A "trackback" field is supported by most blog software, and while it's not required to enter a trackback when citing another post, it's considered good "netiquette" to do so.

affiliate marketing program

Marketing practice where a firm rewards partners (affiliates) who bring in new business, often with a percentage of any resulting sales.

Network effects are sometimes called _____.

Metcalfe's Law

multicore microprocessors

Microprocessors with two or more (typically lower power) calculating processor cores on the same piece of silicon.

Which of the following is not considered one of the four "Ms" of social media engagement: Monitor Magnet Monetize Megaphone

Monetize

account payable

Money owed for products and services purchased on credit.

_____ has allowed Amazon to radically drop the price of Kindle offerings, while increasing device functionality.

Moore's Law

Which of the following summarizes network effects? Profit = sales x profit margin More users = more value Lifetime value of a customer = Volume of each purchase made by the customer Value = number of consumers x profits Revenue = number of products sold x price

More users = more value

Which statement best describes the relationship between network effects and innovation?

Network effects increase innovation within a standard but decrease the number of innovative offerings that compete against a strongly established standard.

two-sided market

Network market that comprises two distinct categories of participant, both of which are needed to deliver value for the network to work (e.g., video game console owners and developers of video games).

Mandated for Wikipedia contributions, this editorial style is free of bias and opinion:

Neutral point of view

flash memory

Nonvolatile, chip-based storage, often used in mobile phones, cameras, and MP3 players. Sometimes called flash RAM, flash memory is slower than conventional RAM, but holds its charge even when the power goes out.

flash sales

Offering deep discounts of a limited quantity of inventory. Flash sales often run for a fixed period or until inventory is completely depleted. Players include Gilt Groupe and Amazon's Zulily in fashion, and One Kings Lane in home décor.

blogs

Online journal entries, usually made in a reverse chronological order. Blogs typically provide comment mechanisms where users can post feedback for authors and other readers.

social proof

The positive influence created when someone finds out that others are doing something.

liquidity problems

Problems that arise when organizations cannot easily convert assets to cash. Cash is considered the most liquid asset—that is, the most widely accepted with a value understood by all.

platforms

Products and services that allow for the development and integration of software products and other complementary goods, effectively creating an ecosystem of value-added offerings. Windows, iOS, the Kindle, and the standards that allow users to create Facebook apps are all platforms.

complementary benefits

Products or services that add additional value to the primary product or service that makes up a network.

two-sided network effect

Products or services that get more valuable as two distinct categories of participants expand (e.g., buyers and sellers).

APIs

Programming hooks, or guidelines, published by firms that tell other programs how to get a service to perform a task such as send or receive data. For example, Amazon provides application programming interfaces (APIs) to let developers write their own applications and websites that can send the firm orders.

earned media

Promotions that are not paid for or owned but rather grow organically from customer efforts or other favorable publicity. Social media, word of mouth, and unsolicited positive press mentions are all examples of earned media.

paid media

Refers to efforts where an organization pays to leverage a channel or promote a message. Paid media efforts include things such as advertisement and sponsorships.

cloud computing

Replacing computing resources—either an organization's or individual's hardware or software—with services provided over the Internet.

SEO

Search engine optimization. The process of improving a page's organic page rankings (rank in search results).

solid state electronics

Semiconductor-based devices. Solid state components often suffer fewer failures and require less energy than mechanical counterparts because they have no moving parts. RAM, flash memory, and microprocessors are solid state devices. Hard drives are not.

Physician social network "_________" is a godsend to physicians looking to gain peer opinion on confounding cases or other medical questions.

Sermo

bursting

Shifting capacity to a cloud provider during periods of high demand. A firm that can take advantage of bursting to scale its information systems should never see its resources overtaxed since it can always rely on its partner to pick up any slack, as needed.

microcontrollers

Special-purpose computing devices that don't have an operating system and can't do as much as general purpose computers or smartphones. Most microcontrollers, like those based on the popular open-source Arduino platform, contain a processor, memory and input/output (I/O) peripherals on a single chip.

volatile memory

Storage (such as RAM chips) that is wiped clean when power is cut off from a device.

SQL

Structured Query Language—the industry-standard language used to create and manipulate databases.

Which of the following is a strategy for competing in markets with network effects?

Subsidizing product adoption

What concept related to staying power is also known by the phrases "being sticky," "creating friction," and "lock-in"?

Switching costs

_____ refer(s) to competing by offering a superior generation of technology that is so much greater to existing offerings that the value overcomes the total resistance that older technologies might enjoy via exchange, switching cost, and complementary benefits.

Technological leapfrogging

digital divide

Term referring to the difference in access to technologies such as computing, wireless, and broadband Internet among wealthy and poor communities. Poor communities with less access often face less opportunity for everything from home schooling to easy access to online public resources.

what is GlowCap

The GlowCap from Vitality, Inc., is a "smart" pill bottle that will flash when you're supposed to take your medicine. The World Health Organization estimates drug adherence at just 50 percent, and analysts estimate that up to $300 billion in increased medical costs are due to patients missing their meds. GlowCap users reported a 98 percent medication adherence rate.

roll back

The ability to revert a wiki page to a prior version. This is useful for restoring earlier work in the event of a posting error, inaccuracy, or vandalism.

backward compatibility

The ability to take advantage of complementary products developed for a prior generation of technology.

crowdsourcing

The act of taking a job traditionally performed by a designated agent (usually an employee) and outsourcing it to an undefined, generally large group of people in the form of an open call.

customer acquisition costs

The amount of money a firm spends to convince a customer to buy (or in the case of free products, try or use) a product or service.

switching cost

The cost a consumer incurs when moving from one product to another. It can involve actual money spent (e.g., buying a new product) as well as investments in time, any data loss, and so forth.

Which of the following is NOT true about the firm Roblox?

The customer acquisition costs at Roblox is very high.

random-access memory (RAM)

The fast, chip-based volatile storage in a computing device.

wisdom of crowds

The idea that a group of individuals (the crowd), often consisting of untrained amateurs, will collectively have more insight than a single or small group of trained professionals.

staying power

The long-term viability of a product or service.

inventory turns

The number of times inventory is sold or used during a specific period (such as a year or quarter). A higher figure means a firm is selling products quickly.

microprocessor

The part of the computer that executes the instructions of a computer program.

online reputation management

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.

price elasticity

The rate at which the demand for a product or service fluctuates with price change. Goods and services that are highly price elastic (e.g., most consumer electronics) see demand spike as prices drop, whereas goods and services that are less price elastic are less responsive to price change (think heart surgery).

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.

thin devices

Thin or thin client computing devices have very little computing power in the device itself, and instead perform the bulk of computing and storage over the network, "in the cloud." Smart speakers and television streaming sticks are all examples of thin clients. The term "thin client" is also sometimes used to describe applications that run in a browser, but where most of the computing happens remotely (e.g., SaaS tools like Salesforce).

Which of the following is an economic measure of the full cost of owning a product?

Total cost of ownership

_____ are links in a blog post that refer readers back to cited sources.

Trackbacks

In the context of network effects, the term "network" refers to:

a common user base, utilized to communicate and share with one another

Polling a diverse crowd and aggregating opinions, in order to form a forecast of an eventual outcome to leverage the wisdom of crowds, is known as _____.

a prediction market

As disruptive technologies emerge, by definition they will eventually take market share away from a firm's higher-margin incumbent offerings. The result of the transition could a. All of the above b. contract corporate revenues. c. None of the above d. and incur losses. e. lower profits.

a. All of the above

In the 1990s, wave four of evolving computing came in the form of _____________ a. Internet computing b. social media c. cloud computing d. None of the above e. mobile phones

a. Internet computing

Which of the following is true of Amazon Web Services (AWS)? a. It allows anyone with a credit card to access industrial-strength, scalable computing resources. b. AWS doesn't provide services such as programming environments and networking services. c. AWS forms a large percentage of Amazon's overall revenue. d. Amazon does not offer corporate-quality computing. e. AWS is a fool-proof system.

a. It allows anyone with a credit card to access industrial-strength, scalable computing resources.

______ is the rate at which the demand for a product or service fluctuates with price change. a. Price elasticity b. Demand mobility c. Cost variance d. Supply dynamics e. Market shift

a. Price elasticity

Data from MyMagic+ helps Disney a. all of the above b. know how many costumed cast members should be roaming in various areas of the park. c. know when to add more staff at rides and restaurants. d. none of the above e. know how to stock restaurants, snack bars, and souvenir stands.

all the above

In which ways is Amazon becoming a publisher? a. The firm has its own book publishing divisions. b. Amazon has begun to produce television shows to be aired over its video streaming network. c. All of the above. d. None of the above, Amazon recognizes that if it publishes products it risks losing key suppliers. e. Amazon is a publisher of video games.

all the above

Managers looking for advice on properly dealing with obsolete technology hardware can: a. consult the e-Stewards program. b. investigate resources provided by the Basel Action Network. c. look for partners with ISO 9001 and ISO 14001 certifications. d. all of the above e. seek advice from the International Association of Electronics Recyclers.

all the above

The Amazon Go retail features stores: a. scanning app store entry. b. without cashiers. c. artificial intelligence to assist with completing purchases. d. all of the above. e. without registers

all the above

Which of the following is a benefit from MyMagic+? a. Reducing the likelihood that frustrated customers will leave for a rival Orlando theme park. b. All of the above c. Allowing the park to serve more customers d. Increasing the amount of money guests spend in park e. Cutting turnstile transaction time

all the above

Which of the following is true of Amazon? a. Amazon initially adopted the domain of a non-profit organization. b. Amazon took over seven years to turn a profit. c. Amazon has centered its focus on quarterly results. d. Amazon has limited its product categories to only books. e. Amazon's profitability has remained constant over the years and analysts continue to predict profits in the firm's future.

b. Amazon took over seven years to turn a profit.

What are the two characteristics of disruptive innovations (sometimes referred to as disruptive technologies)? a. First, they are subject to Moore's Law. Second, they are subject to network effects. b. First, they come to market with a set of performance attributes that existing customers don't value. Second, over time the performance attributes improve to the point where they invade established markets. c. First, they come to market with profit margins that are superior to those provided by the incumbent. Second, scalability enhances margin positions so that they remain superior going forward. d. First, the legacy technology being displaced must be analog. Second, the disruptive technology must be digital. e. First, they are readily recognized by managers and market participants. Second, incumbents cannot match these disruptions due to straddling and imitation-resistant value chains.

b. First, they come to market with a set of performance attributes that existing customers don't value. Second, over time the performance attributes improve to the point where they invade established markets.

Which of the following facts is true with respect to the current electronic waste scenario? a. Harvesting value in electronic waste is a skill-intensive process and requires specialization. b. There is more gold in one pound of electronic waste than in one pound of mined ore. c. Sending e-waste abroad can be costlier than dealing with it at home. d. E-waste management is not too difficult to monitor and track. e. Trade in e-waste is transparent and strictly monitored by environmental agencies worldwide.

b. There is more gold in one pound of electronic waste than in one pound of mined ore.

The amount of e-waste discarded in just one year is the equivalent of throwing away __________. a. a quarter of the commercial aircraft ever built throughout history b. all of the commercial aircraft ever built throughout history c. all of the commercial aircraft built this century d. half of the commercial aircraft built this century

b. all of the commercial aircraft ever built throughout history

In the chip industry, "fabs" are: a. silicon wafers. b. chip manufacturing factories. c. the computing cores of multicore devices. d. none of the above. e. small devices enabling the "Internet of Things."

b. chip manufacturing factories.

With _____, firms place special software on its existing PCs or servers that enable these computers to work together on a common problem. a. SaaS b. grid computing c. pipelining d. cloud computing e. sequential processing

b. grid computing

Moore's Law typically applies to _____. a. DVDs b. microprocessors and chip-based storage c. optical fiber d. magnetic tapes e. hard drives

b. microprocessors and chip-based storage

One way to address the problem of densely packed, overheating chip designs is with _____________. a. All of the above b. multicore microprocessors c. satellite processing d. new operating systems e. air-cooled processor

b. multicore microprocessors

Storage that retains data even when powered down is called: a. random access memory. b. nonvolatile memory. c. static memory. d. delay line memory. e. dynamic memory.

b. nonvolatile memory.

The multiple-brain approach to solving problems is not suitable for problems: a. that can be split up into smaller pieces. b. that are linear. c. involving huge amounts of data. d. which use resources over a network. e. which use more processing power.

b. that are linear.

The ability to take advantage of complementary products developed for a prior generation of technology is known as _____.

backward compatibility

Which of the following is not considered a criteria necessary for prediction markets to function properly?

be related

A company using a(n) _____ strategy would seek to create and compete in uncontested market spaces, rather than competing in spaces and ways that have attracted many, similar rivals.

blue ocean

Which of the following is a benefit derived from Amazon's use of Kiva robots in its fulfillment centers? a. dropped fulfillment costs b. cuts average order fulfillment time c. All of the above are correct d. allows warehouses to store more product e. reduces unload time for inbound inventory

c. All of the above are correct

Which of the following refers to a substance such as silicon dioxide that is used inside most computer chips and is capable of enabling as well as inhibiting the flow of electricity? a. Surge suppressor b. IoT c. Semiconductor d. Optical fiber line e. Volatile memory

c. Semiconductor

The phrase ____________________ is often used to refer to the emergence of technology in products where low-cost sensors, computing, and communication put embedded smarts in all sorts of mundane devices so that these products can communicate with one another for data collection, analysis, and collective action. a. Intranets b. Elastic computing c. The Internet of Things d. Solid State e. The Singularity

c. The Internet of Things

which of the following is true? a. Amazon's profitability has remained constant over the years and analysts continue to predict profits for the firm's future. b. Amazon is no longer the world's largest online retailer. c. The three pillars of Amazon's business are large selection, convenience, and lower prices. d. Amazon's strength lies in being always able to sell well directly to its customers. e. Amazon got its start selling games online.

c. The three pillars of Amazon's business are large selection, convenience, and lower prices.

Microprocessors with two or more (typically lower power) calculating processor cores on the same piece of silicon are known as: a. sequenced processors. b. cloud processors. c. multicore processors. d. paralleled processors. e. co-processors.

c. multicore processors.

_________________ was once the domain of governments and high-end research labs, performing tasks such as simulating the explosion of nuclear devices, or analyzing large-scale weather and climate phenomena. a. Digital Infrastructure b. Grid computing c. Supercomputing d. All computing hardware e. Cloud computing

c. supercomputing

This firm's processor designs power the majority of smart phones on the planet. a. Apple b. Google c. AMD d. ARM e. Intel

d. ARM

_____ refers to replacing computing hardware that a firm might otherwise purchase with a service delivered online. a. Sequential processing b. Grid computing c. Massively parallel computing d. Cloud computing e. Internet crossover

d. Cloud computing

What is the "creosote bush effect"? a. Savvy managers expand their "development roots" into other industries to pioneer new, unchartered territory, like the creosote bush. b. Innovative efforts become a hardwood core, nearly impervious to the tech-fanned flames of disruptive new entrants. c. A successful incumbent will spread the seeds of innovation far and wide, like the creosote bush distributing far-traveling seeds to the winds. d. Managers can act like the rival-killing creosote bush, pulling high-quality engineers off emerging projects if a firm's top offerings need staff or other resources to grow. e. Unchecked investment in new technologies can burn up capital invested in promising initiatives, turning 'money tree green' to 'creosote' soot,

d. Managers can act like the rival-killing creosote bush, pulling high-quality engineers off emerging projects if a firm's top offerings need staff or other resources to grow.

The advancing price/performance curve of technology is empowering the planet. Underscoring this, economist Jeffrey Sachs has stated that "____________ is the single most transformative technology for world economic development." a. cloud computing b. M-Pesa c. big data d. the cell phone e. Esoko

d. the cell phone

What do developers feel is the key to viable, large-scale prediction markets?

decentralization

Pricing that shifts over time usually based on conditions that change the demand is called ______________.

dynamic pricing

Identify the true statement about Amazon. a. Amazon made profits from the first year of its operation. b. Amazon's profitability has remained constant over the years and analysts continue to predict profits for the firm's future. c. Amazon focuses on the immediate harvesting of profits to gain a strategic advantage in the market. d. Amazon is the second largest online retailer in the world. e. Amazon takes a relatively long-term view with respect to investing in initiatives and its commitment to grow profitable businesses.

e. Amazon takes a relatively long-term view with respect to investing in initiatives and its commitment to grow profitable businesses.

________ left WebEx Cisco division to eventually create ______—the multibillion-dollar firm that would win video calling in the midst of the pandemic. a. Eric Min; Skype for Business b. Min Zhu; Zoom c. Marissa Mayer; Skype for Business d. Marc Benioff; GoToMeeting e. Eric Yuan; Zoom

e. Eric Yuan; Zoom

____________ are special-purpose computing devices that don't have an operating system and can't do as much as general purpose computers or smart phones. a. Solid state electronics b. Hard disks c. RAM devices d. Silicon chips e. Microcontrollers

e. Microcontrollers

Cameras, MP3 players, USB drives, and mobile phones often use _____ which holds data even when the power is off. a. primary memory b. volatile memory c. cache memory d. virtual memory e. flash memory

e. flash memory

Technology such as the Vitality Corp. GlowCap applies technology to: a. security technology to ensure products are only used by their owners. b. enable IBM's Smarter Planet initiative. c. change color based on the weather and other atmospheric indicators. d. lower instances of medical fraud. e. improve patient adherence to prescription schedules.

e. improve patient adherence to prescription schedules.

Amazon does not _____. a. keep project teams small enough to be fed by "two pizzas" b. offer web-based services c. allow third-party sellers to use its website d. focus on long-term goals e. own the inventory of items sold through the "Fulfilled by Amazon" program

e. own the inventory of items sold through the "Fulfilled by Amazon" program

Moore's Law occurs because: a. the demand for computers is increasing. b. prices of chips halve every eighteen months. c. better cooling technologies are becoming available. d. it is possible to reduce the number of chips per silicon wafer. e. the distance between pathways inside silicon chips is getting smaller.

e. the distance between pathways inside silicon chips is getting smaller.

Social networks are a hothouse for "_________" media, where enthusiast-consumers can help spread the word about products and services.

earned

________ are promotions that are not paid for or owned but rather grow organically from customer efforts or other favorable publicity. Examples include positive tweets, referring Facebook posts, and pins on Pinterest.

earned media

Discarded, often obsolete, technology is more generally known as _____.

electronic waste

A(n) _____ to social media refers to an established online presence where customers can reach and interact with a firm.

embassy approach

The three sources of value for network effects include __________, staying power, and complementary benefits.

exchange

t/f Corporations will want to be cautious about what is posted to wikis since wikis can be accessed by anyone.

false

t/f Despite the potential impact of crowdsourcing, very few big brands are taking advantage of this method.

false

t/f The Amazon cloud computing product known as Workspaces allows firms to manage their inventory and fulfillment within Amazon's own warehouses.

false, Amazon WorkSpaces provides access to fully functional, remotely served, virtual Windows PCs through the cloud—offered up in a desktop browser window, or even on an iPad or Kindle Fire-for a low monthly fee. These kinds of products are great choices for clients that want securely locked down PCs‚think call centers and law enforcement.

t/f Amazon has gotten physical without a full-fledged investment in storefronts. The firm has 300 Amazon popup stores, temporary kiosk-style spots in malls or other heavy-traffic retail spaces.

false, Amazon has roughly 30 popup stores, through Spring 2017. Popups typically focus on showcasing electronics. Consumers can talk to Alexa, try out a Dash Wand, or learn more about the Dash buttons.

t/f Computers help make sure shelvers stack similar items next to each other. The goal? Make sure that if an order picker seeks something like Legos, they'll find all of the firm's offerings in one spot.

false, Amazon software enforces an additional rule when stocking shelves: no two similar products sit next to each other. While this makes Amazon's shelves look like an unorganized hodgepodge, when a product is the only one of its type in a given area, this actually reduces the chances that a picker will confuse a size or color or otherwise grab the wrong thing. Reducing mistakes keeps customers happy in brand-building ways, and it reduces errors that can crush profits.

t/f The bread of devices running iOS, and the various versions of the fragmented iOS operating system present a far greater challenge for developers than the fairly unified Android standard.

false, Android devices with different hardware specs running different versions of Google's mobile operating system create a challenge for developers. As an example, consider that Hong Kong mobile app developer Animoca does quality assurance testing with about four hundred Android devices on every app the firm offers.

t/f Bezos is regarded as such a successful CEO in part based on his relentless focus on his firm's quarterly performance.

false, Bezos steadfastly refused to concentrate on the quarterly results Wall Street frets over. Instead, the Amazon founder has followed his best reckoning on where markets and technology were headed, postponing profit harvesting while expanding into new markets.

t/f Cluster computing utilizes a cluster of software and processor resources within individual PCs.

false, Computing clusters are also built with commodity servers, but they usually take advantage of special software and networking hardware to more tightly link them together to function as one.

t/f Fees for transactions handled by blockchain vs. centralized markets are higher, and since blockchains are peer-produced infrastructure, the cost to run such market should be very high.

false, Fees for transactions handled by blockchain vs. centralized markets are lower, and since blockchains are peer-produced infrastructure, the cost to run such a market should be very low.

t/f Agency pricing refers to a situation where retailers buy books at the price specified by suppliers, but can then sell at any price they want.

false, In agency pricing, the publisher sets the price and the reseller gets a cut (usually around 30 percent in the market for electronic books).

t/f During the first ten months of 2020, Amazon had to let go of over 427,000 employees.

false, In the first full quarter of the pandemic, Amazon sales soared nearly 60 percent over the same period a year earlier. Keeping up with that demand was a challenge—Amazon added over 427,000 employees during the first ten months of 2020.

t/f Intuit has shifted from the disruption caused by the emergence of cloud computing by shifting to markets for packaged software.

false, Intuit has been a leader in several packaged software categories, including personal finance (Quicken), small business (QuickBooks), and tax prep (TurboTax) software, but has effectively shifted to cloud-based offerings, some of which are initially free. So-called connected services that either run in the cloud or enhance existing offerings make up over 65 percent of the firm's revenues.

t/f Another bonus of the system: since it was based on web technology and apps, costs were especially low, coming in under budget at less than $10 million total.

false, It's estimated that Disney spent $1 billion on MyMagic+. The cost just to redesign and integrate the DisneyWorld.com website with MyMagic+ is said to have cost about $80 million.

t/f Multicore processors have been a boon to technology firms, since any software executing on a multi-core system runs faster by a multiple of the number of cores (e.g. quad core chips run traditional software 4 times as fast).

false, Multicore processors can run older software written for single-brain chips. But they usually do this by using only one core at a time. In order to take full advantage of multicore chips, applications need to be rewritten to split up tasks so that smaller portions of a problem are executed simultaneously inside each core. Developing software for multicore systems has described as "one of the hardest things you learn in computer science."

t/f Creating MyMagic+ was easy because systems were built from scratch, minimizing the amount of work integrating the new effort with existing systems.

false, Over 100 systems needed to be integrated to make the park function in a unified, guest-delighting way.

t/f Most of the security concerns for bitcoin have been dealt with and eliminated.

false, Security concerns also pose a problem. While bitcoin software is considered to be solid, it's not a guarantee that other entities are as secure. The wallets that hold your private key are also potentially vulnerable. If your computer is wiped out by a virus and you haven't written down your password or saved a backup copy in another secure and accessible location, you're hosed; it's like money burned up in a fire. Hackers that steal passwords—whether they're on your computer or the cloud—effectively have access to anything in your crypto wallet; they can walk away with all your cash and it's unlikely that there'll be a way to recover the loot.

t/f Silicon chips are preferred over solid state electronics devices, which are more likely to fail and draw greater amounts of power.

false, Silicon chips are solid state electronics (meaning no moving parts), so they're less likely to fail, and they draw less power.

t/f AWS came out of Amazon's desire to make money from the firm's excess computing capacity.

false, Some have suggested that AWS came out of Amazon's desire to make money from the firm's excess computing capacity, but the firm's CTO (Chief Technology Officer) has debunked that as a myth and a misconception. The real goal of AWS was to monetize the firm's expertise in scalability and reliability and turn this into a revenue-generating business.

t/f Staying power is important in technology industries because technology products such as office suite software, smartphone, laptops, and servers are so pricey.

false, Staying power is important for consumers of technology products because investment over time usually greatly exceeds the initial price paid for a product or service. A user invests in learning how to use a system, buying and installing software, entering preferences or other data, creating files—all of which mean that if a product isn't supported anymore, much of this investment is lost.

t/f While Amazon is the largest online retailer, the firm has struggled with customer satisfaction, largely because processes are automated and the firm offers little phone support or human assistance. The firm allows this tradeoff because it helps cut costs.

false, Strong brands are built largely through customer experience. As evidence of the strength of Amazon's brand, the firm has repeatedly scored the highest rating on the University of Michigan's American Customer Service Index (ACSI). Not only was it a rating that bested all other Internet retailers; it was the highest score of any firm in any service industry.

t/f Amazon's attempt at creating a smartphone competitor to iOS and Android, the Fire Phone, was a great success.

false, The firm's attempt at creating a smartphone competitor to iOS and Android, the Fire Phone, was a multimillion-dollar disaster—but the firm's recent batting average in new product introductions has been impressive.

t/f Firms that listen to their customers are more likely to be able to counteract the onslaught of potentially disruptive technologies.

false, The majority of a firm's current customers don't want the initially poor-performing new technology.

t/f The price/performance curves shown in this chapter allow the manager to calibrate precise estimates on future computing capabilities and costs.

false, These numbers should be taken as rough approximations and shouldn't be expected to be strictly precise over time. And predictability precision is tough to achieve. While the pace of change may vary over time, these graphs are useful to managers as rough guides regarding future computing price/performance trends.

t/f ARM has been so successful because its chip designs can run any software originally designed to run on Intel chips.

false, Unlike Intel-compatible rival AMD, ARM chips can't run software that conforms to the Intel x86 standard used in most PCs and servers, so all of a firm's old code would need to be rewritten and compiled (turned into patterns of ones and zeros that can be executed by a chip's instruction set) to work on any ARM-powered servers, laptops, or desktops (a potentially big switching cost).

t/f Amazon was wise to base Fire products off of Android, since this means that all Android tablet apps will work on the Kindle Fire.

false, While Fire OS is based on Android, it's what is referred to as a modified Android 'fork', with differences significant enough that fire runs only a subset of Android apps.

t/f The use of Kiva robots has allowed Amazon to radically reduce headcount, saving the firm additional money by cutting its workforce.

false, While the firm's warehouse processes have been relentlessly streamlined, Amazon is by no means done with improvements, and humans play a critical role in both catching errors and making systems and software more productive. While robot workers are cheaper than people, Amazon Robotics insists the firms innovations aren't a job-killer; and backs this up by pointing to the firm's 400,000-plus new hires in 2020.

Pioneered by Facebook but now adopted by most services, _____ provide a timely list of the activities of and public messages from people, groups, and organizations that an individual has an association with.

feeds

Fire OS is a _____________ of the Android operating system, a copy that has been modified so much that it has become a distinctly separate product.

fork

Zoom experimentation was spurred by a _______________, a pricing model that offered all features and 100 simultaneous users with just a forty-minute limitation.

freemium

The process of applying game mechanics to enhance non-game activities is known as ________.

gamification

Which of the following would not be considered as contributing to the "complementary benefits" value of network effects? a. Third-party apps that work with the product b. None of the above c. Books and magazines about the product d. Hardware that can communicate with and be controlled by the product e. Qualified labor skilled in using the product

none of the above

One way firms seek to strengthen their platforms and encourage third parties to develop complementary goods is by:

offering APIs.

The "three Rs" emphasized in the social media policy guidelines of most organizations relate to:

representation, responsibility, and respect.

The roll back feature of a wiki page allows:

restoration of the wiki page to a prior version.

Which of the following online efforts has crowd wisdom as its underlying principle?

wiki

t/f Facebook requires employees to leave their teams for new assignments at least once every eighteen months.

true, It's common for many firms to regularly rotate staff (both management and engineering) to improve idea sharing and innovation. Facebook, for example, requires employees to leave their teams for new assignments at least once every eighteen months.

t/f When network effects are strong, the best (e.g. the highest quality or most superior product) does not necessarily win.

true, It's important to note that the best product or service doesn't always win. PlayStation 2 dominated the original Xbox in a prior generation's game console war, despite the fact that nearly every review claimed the Xbox was hands-down a more technically superior machine. Why were users willing to choose an inferior product (PS2) over a superior one (Xbox)? The power of network effects! PS2 had more users, which attracted more developers offering more games.

t/f Modern supercomputing is typically done via a technique called massively parallel processing.

true, Massively parallel processing: computers designed with many microprocessors that work together, simultaneously, to solve problems. The world's fastest supercomputer as of early 2021 was Japan's Fugaku, a machine that uses multicore processors based on ARM technology once used exclusively in cell phones. Fugaku's massively parallel architecture includes a staggering 7 million CPU cores.

t/f Website operators can recommend Amazon products on their site, and Amazon gives the affiliate a percentage of sales generated from these promotions.

true, Not only does Amazon allow others to sell products through its site, it allows others to market for the firm. The Amazon Associates program is the world's largest affiliate marketing program, offering a sort of "finder's fee" for generating sales. For Amazon, fees paid are pay for performance—associates get a commission only if their promotions generate sales.

t/f The packaged software company, Intuit appears to be successfully navigating the rough waters of disruptive innovation. They have done through acquisition of competition and developing cloud-based products.

true, One firm that appears to be successfully navigating the rough waters of disruptive innovation is Intuit. The highly profitable, multibillion-dollar firm is the leader in several packaged software categories, including personal finance (Quicken), small business (QuickBooks), and tax prep (TurboTax) software. Acquisition of rivals is one way Intuit has dealt with disruption. But the future is in the cloud. The firm's TurboTax now has cloud-based offerings and a free SnapTax app—take a photo of your W2 and the app fills out your taxes for you automatically.

t/f Rapid obsolescence of technology products contributes to the growing problem of e-waste management.

true, Rapid obsolescence means the creation of ever-growing mountains of discarded tech junk, known as electronic waste or e-waste.

t/f Much of the e-waste ends up in China, Southeast Asia, or Africa, where it is processed in dreadful conditions.

true, Sending e-waste abroad can be ten times cheaper than dealing with it at home, and through 2017, China was recycling some 70 percent of the world's e-waste, much of it processed in dreadful conditions. However much of what once went to China is now migrating to other parts of Southeast Asia or Africa.

t/f In an example of how Moore's Law and buying at scale can reduce costs, the original MagicBand prototype came in at around $35 but costs fell below $5 by rollout.

true, The firm spent only four cents each to print paper tickets, but the early prototype for MagicBand came in at $35. Fortunately, Moore's Law, savvy engineering, and buying at scale kicked in, and manufacturing costs for bands are now below $5.

t/f Selling more goods often gives Amazon bargaining power with suppliers.

true, The size (scale) of Amazon's business provides the firm with negotiating leverage to secure lower prices and longer payment terms with suppliers.

t/f Moore's Law will likely come to an end during your lifetime.

true, The triple threat of size, heat, and power means that Moore's Law, perhaps the greatest economic gravy train in history, will likely come to a grinding halt in your lifetime.

t/f Many say we are currently in the sixth wave of computing can be considered the era of pervasive computing, where technology is fast and so inexpensive that it is becoming ubiquitously woven into products.

true, Today many say this sixth wave of computing can be considered the era of pervasive computing, where technology is fast and so inexpensive that it is becoming ubiquitously woven into products in ways few imagined years before. Silicon is everywhere!

t/f Volatility makes bitcoin and other cryptocurrencies less useful as dollar-like currencies, limiting its appeal to speculators.

true, Volatility is also an issue. To speculators, bitcoin and other cryptocurrencies seem like get-rich-quick schemes or the much smaller legitimate market that is looking for in-and-out transactions such as cross-border payments. Some also worry about a crypto valuation bubble.

Network markets comprised of two distinct categories of participants, both of which are needed to deliver value for the network to work, are called _____.

two-sided markets

_____ involves leveraging a firm's customers to promote a product or service.

viral promotion

A website anyone can edit directly within a Web browser is known as a _______.

wiki