MIS 301 Exam 1
What is router? What are the basic functions of router?
A router is a network hardware that allows communication between your local home network. The basic functions are security and issuing unique IP addresses.
What are the main factors explaining why firms choose open source products over commercial alternatives?
Low Costs, Scalability, Reliability, Faster time to market (when bundled with hardware)
Understand why a software company (e.g., Microsoft) could potentially generate high profit margin.
Low Marginal costs, potential of bundling, and high switching costs
What are the strategies for competing in markets with strong network effect? Be able to list/identify examples on how to implement each of the strategies.
-Encourage complements - Android developer challenge -Viral promotion - Facebook -Leverage bundling - Skype and windows - Redefine market to include customers - Apple smartphones - Subsidize adoption - Uber & Lyft
Be able to list example companies in and/or categorize firms into the following three types: 1) platforms that help increase the utilization of durable assets, 2) platforms that enable exchange of services, and 3) firms that own certain goods and recirculate such goods.
1. (sharing economy) Airbnb, Uber 2. Social media platforms such as Facebook 3. Local restaurants
Be able to list a technology-based company and discuss whether it enjoys sustainable competitive advantage based on the resources it controls. Understand that technology advantage alone will not yield sustainable competitive advantage.
1. Apple: It does have sustainable competitive advantage because of its protected ecosystem and brand appeal from network effects. 2. Microsoft Windows: It does have sustainable competitive advantage within the personal computer market because of its low costs and network effects. 3. Amazon: It does have sustainable competitive advantage because it can offer low costs, convenience, and low barriers to entry.
What are Porter's "five forces"?
1. The intensity of rivalry among existing competitors 2. The threat of new entrants 3. The threat of substitute goods or services 4. The bargaining power of buyers 5. The bargaining power of suppliers
What is distributed computing? Understand what is client and which is server in a distributed computing environment. Understand how client browsers on various machines interact with a company's systems.
A form of communication where systems in different locations communicate and collaborate to complete a task.
How does one-sided market differ from two-sided market? Be able to list/identify examples of two sided market and explain how the two sides interact with each other.
A one-sided market derives most of its value from a single class of users whereas a two-sided market in which two sides of the market are required to contribute in order to deliver value. An example of a one-sided market is text messaging, and an example of a two-sided market is console owners. The two markets can interact, called cross-sided market. For example, Microsoft's Xbox benefits from this because more users attract more developers.
What is IP address? Understand that every device on the Internet needs to be assigned with an IP address.
A value used to identify a device connected to the internet.
Who are the rivals to the Netflix streaming effort? Do any of these firms have advantages that Netflix lacks? What are these advantages?
Amazon Prime Video is a rival to Netflix. Amazon has rights to some movies and shows that Netflix does not which can give it an advantage over Netflix. They also have a large customer base and provide other services aside from just streaming which can attract customers.
Which company is the pioneer to IaaS?
Amazon is the pioneer to officially offer IaaS to the public and Rackspace is also gaining an increasing market share of IaaS.
Why do certain entry barriers decrease as a result of cloud computing?
Barriers to entry decrease with cloud computing because it lowers costs.
What is blade-razor strategy? Be able to list/identify examples of using blade-razor strategy.
Blade-razor strategy is using either hardware (razor) or software (blade) to profit. Examples: Games are the blade while game consoles are the razor Ink cartridge is the blade while a printer is the razor
What are the different business models around operating system? Be able to list/identify examples of each business model
Bundle OS with hardware - Mac OS Sell OS - Windows Give for free and use as platform for other business - Android
What are the major functions performed by a content delivery network (CDN) provider?
CDN is a network of servers linked together with the goal of delivering content as quickly, cheaply, reliably, and securely as possible.
What are the challenges of adopting enterprise software? What are the different types of costs involved with enterprise software adoption? Understand why many firms have failed when attempting large-scale enterprise system integration.
Challenges: Large up-front costs, High Failure rate, and high switching costs Costs: Licensing, Designing, Training Reasons of failure: Unrealistic goals, poor leadership, Poor estimates of resources, and poor communication in designing
What are the potential benefits of adopting enterprise software?
Cheaper in long run, faster than humans, efficient, and less mistakes
What is cloud computing? What are the essential characteristics of cloud computing?
Cloud computing is replacing computing resources of either an organization's or individual's hardware or software with services provided over the internet. The essential characteristics include on-demand self service, broad network access, resource pooling, rapid elasticity, and measured service.
What are commodities?
Commodities are products or services that are nearly identically offered from multiple vendors. Firms must differentiate their products since consumers are so price-focused with the many similar choices.
What is coopetition? What are the risks and benefits to Netflix in using Amazon's cloud computing platform?
Coopetition is the collaboration between two competitors in a market. Netflix using Amazon's cloud computing runs the risk of new product development and innovation, and reduction of efficiency and communication with its consumers. Netflix using Amazon's cloud computing can be beneficial as well in that they can reach a larger audience and save money on not developing their own cloud computing platform.
Be able to explain why Facebook acquired Instagram, WhatsApp, and Oculus VR.
Creation of more user data, prevention of rivals, point of entry into new markets
What is crowdsourcing? What is its benefit to companies?
Crowdsourcing is a technique in which a firm states a problem they would like solved, the reward it will provide, and then makes this available to a broader community in the form of an open call. The benefit to companies it reduces costs, boosts creativity, and spreads information about the firm through platforms like social networks.
What is DNS? Understand the basic function of DNS and how a computer interacts with DNS to find the IP address of a given URL.
DNS = Domain Name Service ISP service that looks up IP addresses. Goes to root server name -> .com name server-> yahoo.com nameserver
What are the major factors contributing to Uber's success?
Data, network effects, convenience, cost.
What is the difference between desktop application and enterprise application software? Be able to list/identify examples of each type of application software
Desktop applications are run on personal devices and accommodate a single user. Ex. Excel Enterprise software are used on organizational devices and accommodate multiple users. Ex. Oracle/SAP
What is the social graph? Why is Facebook's social graph considered to be stronger than the social graph created by the sites of its early competitors?
Diagram that illustrates interconnections among people in social networks/ ability to collect, express, and leverage the connections between the site's users. Facebook was much stronger because it did not allow phony accounts, thus all relationships were verified.
Be able to evaluate the effectiveness of different advertising strategies on Facebook and explain why.
Digital Strategy - Using platform to target customers (Ineffective) Social Strategy - Using platform to improve or increase social relationships while acquiring new customers
On how to leverage social media platform, what is digital strategy and what is social strategy? Be able to list/identify examples that implement each strategy.
Digital Strategy - Using platform to target customers. Ex: Geico ads Social Strategy - Using platform to improve or increase social relationships while acquiring new customers Ex. Ebay group gifts
What are the impacts of digital camera on the entire imaging chain?
Digital cameras have all but wiped out film use, the record stores are dead, and mobile phones are the only phone for many users.
What are the characteristics of disruptive innovation? Be able to list/identify examples of disruptive innovation and explain why.
Disruptive innovation has two main characteristics: they come to the market with a set of performance attributes that existing customers don't value and overtime, the performance attributes improve to the point where they invade established markets. Examples: -Digital cameras used to be terrible, slow, bulky, and had poor battery life, but they have improved overtime. -Early mobile phones had poor performance but have improved.
What is ERP? What is CRM? What is SCM? Understand what each of these enterprise systems basically does.
ERP - Enterprise Resource Planning/ integrates multiple functions in an organization CRM - Customer Relationship Management/ integrates sales and marketing SCM - Supply Chain Management Software - integrates supplier relations
Understand why Adobe allows the free download of Acrobat Reader and why Monster.com allows free access by job seekers. Understand how to decide the money side and the subsidy side for a market with two-sided network
Each side must be analyzed in willingness to pay/price sensitivity & quality/quantity sensitivity.
What are economies of scale?
Economies of scale are the decrease in cost of production as the number of units of a product increase.
How does Facebook benefit from strong network effect? How does Microsoft benefit from strong network effect? How does Apple benefit from strong network effect? What role did network effects play in your choice of an operating system, a social network, a word processor, or a mobile phone?
Facebook benefits from strong network effects because of the complementary product developers for apps and viral promotion from their large user base of personal friends. Microsoft can leverage bundling with Skype since Windows is so high presence already. Apple benefits from strong network effects because their OS and features are compatible with only their products and so more people will purchase their products. Network effects plays a role in what I purchase because I am more likely to choose a product that a lot of people I interact with often own so it's more compatible in forms of communication and collaboration.
Understand why people use Facebook and its implications for business.
Facebook improves social failures for people. It also allows businesses to leverage relationships to sell products.
Be able to apply the five forces framework to an industry, assessing the competitive landscape and the role of technology in influencing the relative power of buyers, suppliers, competitors, entrants, and alternatives.
Five Forces analysis for Music Retailers: -Their intensity of rivalry increases because they are not only competing with physical stores, but also online now as well. -Online investments are expensive, so some firms partner with new entrants such as Amazon to compete and stay alive in the market. -The process of buying CDs now faces the substitute of digital music as those files become more available on commercial music sites. -There are several options for the buyers, giving them high bargaining power. They can now demand lower prices and greater convenience. -The bargaining power of suppliers, such as music labels and the artists themselves, also increases since they have multiple platforms to sell their products/services to and can demand higher pays and greater convenience.
Why do some collaborative consumption firms choose to take possession of inventory rather than allow the "crowd" to provide it peer-to-peer style?
For some marketplaces, end users simply can't be relied on to consistently manage inventory and logistics. In these cases, successful "collaborative consumption" efforts own inventory to ensure quality and gain more control over the customer experience Example: Rent the Runway
What is open source software?
Free software where anyone can modify the code.
Understand how the Web works. What is HTTP? What is HTML?
HTTP = Hyper Text Transfer Protocol Sent to request info and is sent back with it HTML = Hyper Text Markup Language Provides content for the web page
What is ISP? What is peering? Understand that carriers usually don't charge one another for peering. Instead, "the money is made" in the ISP business by charging the end-points in a network—the customer organizations and end users that an ISP connects to the Internet.
ISP is internet service provider. Peering is a process by which two internet networks connect and exchange traffic. It is used because it is cheaper and sometimes easier to control traffic flows.
Under what conditions can the Internet strengthen supplier bargaining power? Be able to give an example.
If network effects are strong or a seller's goods are highly differentiated, the internet can strengthen supplier bargaining power. Example: In the airline industry, fuel is a major component and their are only two main suppliers of it: Boeing and Airbus. These two firms have high bargaining power since the airlines have no other options than those two, and therefore must deal with the potential high prices.
Suppose now your company wants to adopt an enterprise software application (e.g., CRM, ERP) and you have two options - buying some packaged enterprise software or using software-as-a-service model (i.e. getting on-demand enterprise software). What are the benefits of buying the packaged one and what are the benefits of getting the on-demand one? Understand how the size of your organization affects your choice.
If the size of the organization is large, SaaS model is the better option since it helps reduce costs, provides the advantage of being highly scalable, and generally have higher quality and service levels. If the organization is small, the packaged enterprise software option is beneficial because they are easier to work with, especially for firms that don't have IT professionals, the software is the same throughout the company, and it makes purchasing decisions easier.
What is IaaS? For this service model, what are the resources the cloud vendor will provide/manage and what are the resources the cloud user will have a control? What basic question is it essentially addressing for a cloud user?
Infrastructure as a service offers an organization an alternative to buying its own physical hardware. The cloud vendor usually manages the infrastructure whereas the cloud user can select their own operating system, development environments, underlying applications, and other software packages. The basic question it addresses for a cloud user is which model provides the hardware service for the user to manage everything else.
Be able to list/identify examples of computer input devices, processing devices, output devices, and storage devices.
Input: Mouse, Keyboard Processing devices: CPU (Intel AMD, ARM), RAM Storage: Flash drive, disk, SSD Output: Speakers, screens
Who are the major players in the CPU market? Understand the key strategies played by each of these firms
Intel and ARM are the major players in the CPU market. Some key strategies of Intel are bundling and developing integrated platform solutions which are less expensive and therefore more attractive to consumers.
How does "faster and cheaper computing" affect areas such as IT production and inventory decisions and how does it affect IT adoption decision?
Inventory depreciates fast so technology must sell quick. Computing capital must be bought with utility expiration in mind, upgrading IT budget must be allocated wisely for training etc.
Can Facebook turn Graph Search into a money maker? How could it do this, or why won't it accomplish this goal?
It allows users to draw meaning from the site's social graph and to find answers from social connections. This may allow better dating, company recruiting, and advertising.
Why is iPhone so successful?
It is successful because of protected innovations, buyer loyalty/lock-in, creation of a hardware ecosystem and economies of scale.
How does the market share for desktop operating systems differ from server operating systems?
Linux has a bigger share, Windows loses a large portion of its share, and Mac is completely gone
What is "long tail"? How does Netflix benefit from the long tail? Why can't the traditional brick-and-mortar retailers capture the long tail effect?
Long tail is a large selection of products or content. Netflix benefits from long tail because they are able to reach a wider audience through the variety of diverse content. Traditional retailers can't capture the long tail effect because the internet allows Netflix to host large-selection inventory efficiencies that offline firms can't match.
Be able to list/identify examples on how IT increases customers' switching costs
Make certain products only compatible with your company or brand -Example: Apple with iMessage Using online platforms that have already established high switching costs. -Example: Wells Fargo uses online bill payment because customers are less likely to leave the bank than those who don't use it
What should managers always ask before launching an innovative (but possibly disruptive) product?
Managers should ask: How big will the market be? What is the level of investments required? Will the advantage of existing products be strongly weakened/Will the existing business model be changed?
Understand the key reasons explaining Kodak's downfall.
Middle-managers knew the digital world was coming, saw it as a major threat, and were paralyzed by that knowledge because they didn't know their skills would be relevant to this world.
Understand Moore's law is only related to (CPU) processing speed. However, not only processing speed but also communication speed and storage capacity all experience exponential growth over the last 30 years.
Moore's Law states that chip performance doubles every year and a half (number of transistors). Data storage doubles every year and optical fiber doubles every nine months.
What are the benefits for Netflix to move from atoms to bits?
Moving from atoms to bits allowed Netflix to reach a larger audience and gather more detailed data on the preferences of its users.
What is net neutrality? Who are the example companies supporting this view? Who are the example companies against this view and why? Who would you side with, and why?
Net neutrality is the concept that ISPs treat all internet communications equally and do not discriminate or charge based on user, content, website, content, etc. Netflix and Facebook are companies that support net neutrality. Verizon, AT&T, and Comcast are against net neutrality. This is because ISPs are the ones who benefit most because they can charge higher amounts for those who use more or slow down services. For companies like Netflix, they want their streaming to be consistent so they can maintain their users base. I would side with companies like Netflix and Facebook to ensure that all users are experience a fair experience when using the internet.
What is net neutrality? Who would you side with, Netflix or the large ISPs? Why?
Net neutrality is the principle that all internet traffic should be treated equally and that ISPs should not discriminate, slow down access, or charge differently per use, content, site, platform, application, type of attached equipment, or modes of communication. I would side with Netflix because when internet traffic is not treated equally, it puts a strain on the consumers who don't know what speed or prices to expect from the products and services via internet they are using.
What are the challenges for Netflix to move from atoms to bits?
Netflix faces bandwidth caps and has to rely on Amazon servers for streaming, encoding, digital rights management, etc.
Is Netflix a friend or foe to the studios? Make a list of reasons why they would "like" Netflix, and why studios might be fearful of the firm. What is disintermediation? What are the benefits from disintermediation in the video industry?
Netflix is both a friend and a foe of the studio industry. Studios like Netflix because it advertises their movies through the cinematch system, pays for licensing, and has minimalist control. However, Netflix cannibalizes other studio sales. Disintermediation is the elimination or reduction intermediaries between producer and consumer. It allows for higher profit margins and more artistic freedom.
What "class" of software does Netflix use to make movie recommendations? Think about Chapter 2: Which key competitive resource does this software "create"? What kinds of benefits does this provide to the firm? How does the long tail effect interact with its recommendation software?
Netflix uses collaborative filtering called Cinematch. It gives a competitive resource by harnessing powerful, detailed data. It benefits the firm by improving customer experience, building brand, and creating a switching cost. The cinematch suggests obscure movie as it knows the customer better, improving customer experience and better relations with the supplier.
What are the major factors explaining Netflix's success in its DVD-by-mail business?
Netflix's DVD-by-mail was successful because consumers could keep the DVDs for as long as they wanted, the firm provided quick delivery, there weren't as many competitors, and the market had little new entrants.
Is Netflix's recommendation software successful? Understand how Netflix built its recommendation software
Netflix's recommendation software is highly successful. 60% of movie requests originate from the recommendation system. It was crowd sourced by offering $1 million for the best design.
What is SaaS? For this service model, what are the resources the cloud vendor will provide/manage? What basic question is it essentially addressing for a cloud user?
Software as a service refers to software that is made available by a third party online. The vendor provides the software and hardware, essentially managing everything. The basic question it addresses for a cloud user is what service model manages everything for me.
What are network effects? Be able to list/identify examples of products that are subject to network effects.
Network effects are when a product or service's value increases with the number of users. Examples are Facebook, Windows and Office, Uber.
What are three biggest strategic moves by Jobs in the Macintosh business?
New chip architecture: from Motorola to Intel New OS: Mac OS New distribution: classy Brick-and-Mortar stores
Once a firm can detect disruptive technologies, what techniques can it use to nurture and develop these technologies?
Once a firm detects a disruptive technology, it can build a portfolio of options on emerging technologies, investing in firms, startups, or internal efforts that can focus solely on what may or may not turn out to be the next big thing. These efforts are also nurtured in a way that is sufficiently separate from the parent.
Understand why the click-through rates at Facebook are substantially lower than the click-through rates at Google.
People on Facebook are hiking - browsing People on Google are hunting - actively searching for something
What is PaaS? For this service model, what are the resources the cloud vendor will provide/manage and what are the resources the cloud user will have a control? What basic question is it essentially addressing for a cloud user?
Platform as a service delivers tools so an organization can develop, test, and deploy software in the cloud. The vendor provides the platform such as hardware, operating system, database, and other software. The user controls the applications they build using the vendor resources. The basic question it addresses for a cloud user is where can I develop/store my applications.
Understand how to apply the five forces framework to assess the competitive landscape in the PC industry
Power of supplies: some power, not excessively strong Power of customers: very powerful because there are plenty of choices Potential new entrants: many because there are low barriers of entry Rivalry of existing firms: vicious because it's almost a commodity Possible Substitutes: many
What different business models can be built around open source software? Understand the motivations for large incumbents (such as IBM, Google, Oracle) to contribute to the development of open source software.
Providing consultancy/services/ training, promote complementary products, undercut competitors, and dual licensing
Who are the two leading ERP vendors? Be able to list the functions of a business that might be impacted by an ERP.
SAP and Oracle Impacted functions -Credit checking, Loan Covenant writing, pricing, etc
Why does the sharing economy become so popular nowadays?
Sharing economy has become popular because it's allowing firms to pool resources, products, and services in ways that create new markets and market opportunities.
Understand why the gross margins in the PC industry are generally lower than software industry.
Software is harder to replicate and therefore can sometimes cause a monopoly in the market. The software industry also has high barriers to entry. It is also a riskier industry to be a part of than the PC industry.
What is operating system? What are the basic functions of operating system? Understand the value of an operating system is determined both by its own functionality and the availability of the applications running on it.
Software that controls the hardware and sets standards of execution of apps. Basic functions: -Arbitration - Manages tasks and allocates resources -Abstraction - interface hardware and applications
Review the FreshDirect business model: What factors explain its success? How does IT impact its value chain? Would a similar business work in rural areas? Why or why not?
Some factors that explain its success are: -The environment in which it was founded: the busy streets of New York where consumers are more concerned about convenience and accessibility, and want to avoid traffic. -The warehouse is located in areas away from New York city, reducing costs of rent and energy consumption than traditional mom and pop stores -Their lower costs and large variety of selection attracts more customers and therefore generates more revenue, along with selling inventory faster IT impacted its value chain by providing an online store run by artificial intelligence to fix a problem in New York and provide a convenient and cheap alternative to traditional stores. A similar business wouldn't work in rural areas because traffic and driving are not as high of an issue and costs of physical stores aren't as expensive in terms of rent and energy consumption.
What is strategic positioning?
Strategic positioning is performing different activities than your rivals, or the same activities in different ways.
What are switching costs? What are the sources of switching costs?
Switching costs are costs a consumer incurs associated with switching brands, products, or services. Sources of switching costs include: learning costs, information and data, financial commitment, contractual commitments, search costs, and loyalty programs.
What is TCP and what are the basic functions of TCP? What is IP and what are the basic functions of IP? Understand how TCP and IP work together to enable data communications between one computer to another.
TCP = transmission control protocols Ensures perfect copies are produced
What is the difference between TCP and UDP? Why would you use one over the other?
TCP checks for errors slowly and perfectly, UDP checks for errors fast and with mistakes when you are in a rush.
What are the benefits to users from cloud computing? What are the barriers to cloud computing adoption? When you decide if you want to get service from a particular cloud vendor, why should you consider the long-term viability of the cloud vendor?
The benefits from cloud computing are increased efficiency, reduce capital investment, reduce IT maintenance/cost, rapid access to resources/rapid deployment on platforms, and scalability. The barriers are lock-in, security, flexibility/customization, availability/dependability, and total cost ownership. You should consider long-term viability of the cloud vendor because if they go broke or get purchased by a larger company, you want to ensure you will still have your data.
What is Apple's "Digital Hub" strategy? What motivates this strategy?
The digital hub strategy was to make the Mac an essential piece of hardware to integrate Apple peripherals such as the iPod. It was motivated by the smashing success of the iPod.
What advantages does FreshDirect have that insulate the firm from serious competition from startups copying its model?
The firm spent over $75 million, making startup costs for other firms very expensive. Switching costs are also high because FreshDirect has majority customer data which locks in consumers. It also has a large customer base from ads and promotions.
What are the complements to PCs that may drive up demand for PCs?
The internet, peripherals (printers, digital cameras), and software applications
What is the slowest part of the internet?
The last mile, not the backbone
Understand why established firms sometimes fail to recognize and react to potentially disruptive innovations.
The markets for these innovations don't look appealing for potential new entrant firms because of the poor feedback from consumers and the initial poor technology.
Why did Apple want to switch to new chip architecture for its Mac? What are the pros and cons?
The new chip was more powerful, lighter, could run windows and window apps and thinner. They would have to rework the OS which would be a huge expense.
How does Uber ensure rider and passenger quality? As a rider or passenger, how would you feel about these efforts? How does this change the service dynamic compared with traditional cab rides?
The passengers are able to rate their drivers, and those who fall below a 4.7 on a 5 star scale risk being fired. I feel good about these efforts as it allows me to filter out the bad drivers myself, rather than the employees of Uber whom I've never met. This allows me to feel safer and happier about my drivers because I know that they have very high ratings that other passengers, include myself, have given them.
What is the rationale for Apple to open physical stores?
The rationale for Apple was to better focus on customer experience and create a stronger brand identity.
What is the "resource-based" view of competitive advantage? What are the characteristics of resources that may yield sustainable competitive advantage?
The resource based view of competitive advantage is that using all resources effectively and efficiently will help increase a company's competitive advantage. The characteristics of resources that may yield sustainable competitive advantage are: valuable, rare, inimitable, non-sustainable.
How have the rise of the Internet and the advance in IT impacted the competitive landscape of music CD/ printed book industry?
The rise of internet and the advance in IT has increased the competition in the music CD and print book industry since these products and services are now competing with a whole new market of Ebooks and online music industries.
What are the three primary sources of value for network effects?
The three primary sources of value for network effects are exchange, staying power, and complementary benefits.
Why can't Netflix secure a long tail of streaming content that is the same size as its content catalog in the DVD-by-mail business? What is Netflix doing to make its streaming catalog more appealing than rival offerings?
There are legal issues on digital distribution rights, increased costs for license renewal after a limited time period, different pricing models, more competition, and direct competition with television networks.
What are the key challenges to the sharing economy?
There are safety issues, payment collection especially with risk of hackers in instances of personal payment platforms.
What is URL? Be able to identify/label the protocol name, host name, domain name, path, and file name for a given URL.
URL = Uniform Resource locator It is able to identify resources and app protocol to retrieve HTTP request info and is sent back with it
s Uber good for the economy or bad? Justify your answer.
Uber is good for the economy because the high level of profit creates jobs, increases tax revenue for the government, and creates competition in a market sect which was largely controlled by few for many years.
How does Uber leverage data in its service? What aspects of the firm's operations are improved through data analytics? Does this provide the firm with sustainable competitive advantage? Why or why not?
Uber leverages data by expanding globally to power the firm's operational model, alert drivers, improve service, set pricing, and even identify possible cities to enter. Yes this provides Uber with sustainable competitive advantage because Uber has a larger user database and they are able to outcompete their competitors by targeting specific user types.
What are the players in the ecosystem built around iPhone/iPad? How does each player benefit from this ecosystem? Do we see strong network effects in this ecosystem and why?
Users: Free OS and enjoyment of free app store Content Providers: Strong platform to provide apps, plenty of users App Store: bundled with Apple products, takes a percentage of app sales iPad: able to leverage bundles with the App store Yes there is a strong network effect. As users increase, it brings more content providers, thus more people buy Apple products to enjoy content, repeating the cycle.
What is value chain?
Value Chain is the set of interrelated activities that bring a product or service to the market.
What is viral marketing? How can companies leverage social media to build a brand inexpensively?
Viral marketing is a strategy by which consumers are encouraged to share information about a company and its products via the internet. Companies can share user data with the social media to leverage it in order to build their brand.
What is the difference between volatile memory and nonvolatile memory? What is the basic function of central processing unit (CPU)?
Volatile wipes memory after turning off but nonvolatile doesn't. The basic function of a CPU is select instructions, process them, perform logical functions, and store operations in memory
What is the Internet? What is the Web? Understand the difference between the two.
Web is HTML pages on the internet The Internet is the massive connection of devices worldwide.
Examples of PaaS vendors
Windows Azure, force.com, and Google app engine
Understand that the two major 3G standards (the more popular GSM and the less widely adopted CDMA) are being replaced by
a single, dominant, higher-capacity 4G standard (LTE). The transition from 3G to 4G is increasing bandwidth and capacity, but usage continues to skyrocket as smartphone and tablet users stream increasing amounts of video and audio.
Understand that advances in chip technology don't work alone
operating systems and applications must be written to take advantage of the new capabilities
