MIS Exam 1

Commodity

A basic good that can be interchanged with nearly identical offerings by others--think milk, coal, orange juice, or to a lesser extent, Windows PCs and Android phones. The more commoditized an offering, m the greater the likelihood that competition will be based on price

Software

A computer program or a collection of programs. It is a precise set of instructions that tells hardware what to do

Information Asymmetry

A decision situation where one party has more or better information than its counterparty

Optical Fiber Line

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

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

Monopoly

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

Adaptor

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

Enterprise Resource Planning (ERP)

A software package that integrates the many functions of a business

Software Package

A software product offered commercially by a third party

Semiconductors

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

Dense Wave Division Multiplexing (DWDM)

A technology that increases the transmission capacity (and hence speed) of fiber-optic cable. Transmissions using fiber are accomplished by transmitting light inside "glass" cables. In DWDM, the light inside fiber is split into different wavelengths in a way similar to how a prism splits light into different colors

Internet of Things

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

Imitation-Resistant Value Chain

A way of doing business that competitors struggle to replicate and that frequently involves technology in a key enabling role

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

ARM

Scalability

Ability to either handle increasing workloads or to be easily expanded to manage workload increases. In a software context, systems that aren't scalable often require significant rewrites or the purchase or development of entirely new systems

Scale Advantages

Advantages related to size

Security Focused

Also known as "hardened." Term used to describe technology products that contain particularly strong security features

Porter's Five Forces

Also known as Industry and Competitive Analysis. A framework considering the interplay between (1) the intensity off rivalry among existing competitors, (2) the threat of new entrants, (3) the threat of substitute goods or services, (4) the bargaining power of buyers, and (5) the bargaining power of suppliers

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

LAMP

An acronym standing for Linux, the Apache Web server software, the MySQL database, and any of several programming languages that start with P

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 (TCO)

An economic measure of the full cost of owning a product. TCO includes direct costs such as purchase price, plus indirect costs such as training, support, and maintenance

Linux

An open source software operating system

Desktop Software

Applications installed on a personal computer, typically supporting tasks performed by a single user

Enterprise Software

Applications that address the needs of multiple users throughout an organization or work group

Private

As in "to go private" or "take a firm private." Buying up a publicly traded firm's shares. Usually done when a firm has suffered financially and when a turn-around strategy will first yield losses that would further erode share price. Firms (often called private equity, buyout, LBO, or leveraged buyout firms) that take another company private hope to improve results so that the company can be sold to another firm or they can reissue shares on public markets.

Straddling

Attempts to occupy more than one position, while failing to match the benefits of a more efficient singularly focused rival

Same-Side Exchange Benefits

Benefits derived by interaction among members of a single participant

Moore's Law

Chip performance per dollar doubles every eighteen months

Non-Practicing Entities

Commonly known as patent trolls, these firms make money by acquiring and asserting patents, rather than bringing products and services to market

Technological Leapfrogging

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

T/F: ARM has been so successful because its chip designs can run any software originally designed to run on intel chips.

False

T/F: Businesses benefit from the economies of scale when the cost of an investment can be spread across increasing units of operational effectiveness or in serving in a small supplier base.

False

T/F: Despite the potential impact of crowdsourcing, very few big brands are taking advantage of this method.

False

T/F: Firms that listen to their customers are more likely to be able to counteract the onslaught of potentiality disruptive technologies.

False

T/F: FreshDirect's tech-efficient model actually leads to lower margins than its traditional grocery peers, but the firm makes this up with a greater sales volume.

False

T/F: In contrast to other major platforms, there has never been a major open source software security vulnerability.

False

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

False

T/F: Most successful firms typically leverage a single key resource for competitive advantage to create lasting, above-average industry profits.

False

T/F: OpenTable's network effects are dye entirely to the large number of consumers who use the service.

False

T/F: Silicon chips are preferred over solid state electronics devices which are more likely to fail and draw greater amounts of power.

False

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

T/F: Technology means FreshDirect's labor costs are higher than rival's, but the firm makes up for this in other ways.

False

T/F: Technology products are considered to be price inelastic.

False

T/F: The bread of devices running iOS, and the various versions of the fragmental iOS operating system present a far greater challenge for developers than the fairly unified Android standard.

False

T/F: Your firm had better lawyer up! Studies have shown that patents are the single most-important factor for enabling a firm to profit from innovations.

False

Sustainable Competitive Advantage

Financial performance that consistently outperforms industry averages

Applications

Includes desktop applications, enterprise software, utilities, and other programs that perform specific tasks for users and organizations

Viral Marketing

Leveraging consumers to promote a product or service

Two-Sided Market

Network markets that comprise two distinct categories of participant, both of which that are needed to deliver value for the network to work

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

Strategic Positioning

Performing different tasks than rivals, or the same tasks in a different way

Operational Effectiveness

Performing the same tasks better than rivals perform them

Prediction Market

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

Platform

Products and services that allow for the development and integration of software products and other complementary goods. Windows, iOS, Android, and the standards that allow users to create Facebook apps are all platforms

Platforms

Products and services that allow for the development and integration of software products and other complementary goods. Windows, the iPhone, the Wii, and the standards that allow users to create Facebook apps are all platforms

Complementary Benefits

Products or services that dd additional value to the primary product of service that makes up a network

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 APIs to let developers write their own applications and Web sites that can send the firm orders

Solid State Electronic

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

Database Management Systems (DBMS)

Sometimes referred to as database software; for creating maintaining, and manipulating data

Inventory Turns

Sometimes referred to as inventory turnover, stock turns, or stock turnover. It is the number of times inventory is sold or used during a given period. A higher figure means that a firm is selling products quickly

Volatile Memory

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

Nonvolatile Memory

Storage that retains data even when powered down (such as flash memory, hard disk, or DVD storage)

_______ refers to attempts by an organization to occupy more than one position while failing to match the benefits of a more efficient, singularly focused rival. a.) Segmenting b.) Slotting c.) Straddling d.) Merging e.) Branding

Straddling

Supply Chain Management (SCM)

Systems that can help a firm manage aspects of its value chain, from the flow of raw materials into the firm, through the delivery of finished products and services at the point-of-consumption

Business Intelligence (BI) Systems

Systems that use data created by other systems to provide reporting and analysis for organizational decision making

Customer Relationship Management (CRM)

Systems used to support customer-related sales and marketing activities

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 larger group of people in the form of an open call

Switching Costs

The cost a consumer incurs when moving form one product to another. It can involve actual money spent as well as investments in time, any data loss, and so forth

Price Transparency

The degree to which complete information is available

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

User Interface

The mechanism through which users interact with a computing device. The UI includes elements of the graphical user interface, such as windows, scroll bars, buttons, menus, and dialogue boxes; and can also include other forms of interaction, such as touch screens, motion sensing controllers, or tactile devices used by the visually impaired

Microprocessor

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

Distribution Channels

The path through products or services get to customers

Computing Hardware

The physical components of information technology, which can include the computer itself plus peripherals such as storage devices, input devices like the mouse and keyboard, output devices like monitors and printers, networking equipment, and so on

Social Proof

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

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 see demand spike as prices drop, whereas goods and services that are less price elastic are less responsive to price change

Inventory Turnover Ratio

The ratio of a company's annual sales to its inventory

Value Chain

The set of activities through which a product or service is created and delivered to customers

Operating System

The software that controls the computer hardware and establishes standards for developing and executing applications

Resource-Based View of Competitive Advantage

The strategic thinking approach suggesting that if a firm is to maintain sustainable competitive advantage, it must control an exploitable resource, or set of resources, that have four critical characteristics. These resources must be (1) valuable, (2) rare, (3) imperfectly imitable, and (4) nonsubstitutable

Brand

The symbolic embodiment of all the information connected with a product or service

Affiliates

Third parties that promote a product or service, typically in exchange for a cut of any sales

T/F: A larger number of skilled workers who can use a given technology exists as a result of network effects.

True

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

T/F: Apple reduced the switching costs and increased Mac adoptions when they switched from the PowerPC to using Windows-compatible Intel microprocessors.

True

T/F: Disruptive innovations are often so damaging because the new technology has better margins that the incumbent technology being displaced.

True

T/F: Experts advise firms 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

T/F: Facebook requires employees to leave their teams for new assignments at least once every eighteen months.

True

T/F: Flash memory is non-volatile memory

True

T/F: Flash memory is solid-state memory

True

T/F: Internet and tech-leveraging businesses are said to be highly scalable when profit margins often improve as firms leverage their infrastructure base across as growing number of customers.

True

T/F: Many firms with similar procedures for accounting, finance, and human resource functions might buy a software package rather than develop their own code. This is usually considered fine since these functions are often not strategic.

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: The Apple Store represents a key distribution channel for the firm and the US's single most successful retail chain as defined by sales per square foot.

True

T/F: The price/performance curves shown in this chapter allow the manager to calibrate precise estimates on future computing capabilities and cost

True

T/F: When offerings are roughly the same, they are more commodity than differentiated.

True

T/F: When the network effects are strong, the best does not necessarily win.

True

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

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-Sided Exchange Benefit

When an increase in the number of users on one side of the market creates a rise in the other side

Economies of Scale

When costs can be spread across increasing units of production or in serving multiple customers. Businesses that have favorable economies of scale are sometimes referred to as being highly scalable

Congestion Effects

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

Envelopment

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

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 are converging

n00b

Written with two zeros, pronounced "newb." Greek-slang derogatory term for an uniformed or unskilled person

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.) A prediction market b.) Referendum c.) Psychometry d.) Secondary market research e.) Reputation monitoring

a.) A prediction market

Which of the following describes the relationship between Apple's iOS and Google Maps. a.) Apple's control of iOS gave it control of the distribution channel to reach its users, kicking Google out as the default mapping app and capturing the majority of user engagement. b.) Apple's initially poor map offering caused many users to delete Apple Maps, leading to Google's dominance of mapping on iOS. c.) Apple was able to leverage the success of Apple Maps to create a successful mapping product on Android, rivaling Google's in reach. d.) Google's dominance of apps and its offering mapping before Apple's market entry has helped keep it the dominant mapping option on iOS.

a.) Apple's initially control of iOS gave it control of the distribution channel to reach its users, kicking Google out as the default mapping app and capturing the majority of user engagement

Which of the following is one of Porter's five forces? a.) Bargaining power of buyers b.) Eliminating competition c.) Marketing segmentation d.) Value chain e.) Brand recognition

a.) Bargaining power of buyers

A firm's________ is the symbolic embodiment of all the information connected with a product or service. a.) Brand b.) Trademark c.) Copyright d.) Scale e.) Storefront

a.) Brand

___________ is the term used to represent the physical components of information technology. a.) Computer hardware b.) Solid state technology c.) Cloud computing d.) Programmable disks e.) Grid computing

a.) Computer hardware

The phenomenon of_____________________ exists when increasing numbers of users lower the value of a product or service. a.) Congestion effects b.) Bloating c.) The Osbourne Effect d.) Blue Ocean Strategy e.) Scalability

a.) Congestion effects

When two or more markets, once considered distinctly separate being to offer similar features and vdapabilitird, they are said to undergo________. a.) Convergence b.) Envelopment c.) Assimilation d.) Annihilation e.) Tie-ups

a.) Convergence

According to Porter, strategy is fundamentally about being_________. a.) Different b.) Profitable c.) Efficient d.) Superior e.) Scalable

a.) Different

Those looking to share open source projects, contribute to these projects, or examine the code of projects (a great way to learn) should visit the site ___________. a.)GitHub b.) Google Play c.) Facebook Hackathon d.) iTunes AppsStore

a.) Github

Netflix leveraged crowdsourcing by offering one million dollars to the first team to: a.) Improve accuracy of its movie recommendations by 10 percent. b.) Come up with a model for cost-effective delivery of its DVD-by-mail service. c.) Write code for collaborative filtering software for its Cinematch feature. d.) Aggregate data from its vast network of subscribers. e.) Develop a set-top box that offered movie streaming to television sets.

a.) Improve accuracy of its movie recommendations by 10 percent

Which of the following observations is true? a.) Internet businesses have relatively low barriers to entry. b.) Barring a few exceptions, most established offline firms have caught up with today's Internet leaders. c.) The barriers to entry for most firms that compete on technology-alone are always extremely high. d.) Timing and technology are sufficient to yield sustainable competitive advantages. e.) Low entry barriers nearly guarantee the success of Web-based business models.

a.) Internet businesses have relatively low barriers to entry

Operating systems are designed to give programmers a common set of commands to consistently interact with the hardware. These commands make a programmer's job easier by: a.) Making it faster to write software while minimizing the possibility of errors in code. b.) Providing a user interface that is easier to navigate. c.) Allowing applications to be upgraded online or by connecting to another device. d.) Sharing usage information, helping diagnose problems, indicating maintenance schedules, or providing alerts. e.) Eliminating the need to compile and debug code.

a.) Making it faster to write software while minimizing the possibility of errors in code

Moore's Typically applies to_______________. a.) Microprocessors and chip-based storage b.) Magnetic tapes c.) DVDs d.) Optical fiber e.) Hard drives

a.) Microprocessors and chip-based storage

A(n)________ refers to a market dominated by a small number of powerful sellers. a.) Oligopoly b.) Monopsony c.) Duopoly d.) Horizontal market e.) Monopoly

a.) Oligopoly

A(n)_________ is software that controls computer hardware and established standards for developing and executing applications. a.) Operating system b.) Programming language c.) User interface d.) Embedded system e.) Application server

a.) Operating system

Products and services that allow for the development and integration of software products and other complementary goods are known as________________. a.) Platforms b.) Desktop software c.) Embedded systems d.) User interfaces e.) Firmware

a.) Platforms

The price/performance improvements in Moore's Law apply to: a.) Silicon based computing and storage components b.) Hard drives c.) None of the above d.) Telecommunications devices e.) All of the above

a.) Silicon based computing and storage components

_____________ refers to performing different tasks than rivals or the same task in a different way. a.) Strategic positioning b.) Vertical integration c.) Operational effectiveness d.) Scale advantage e.) Straddling

a.) Strategic positioning

Which of the following is a strategy for competing markets with network effects? a.) Subsidizing product adoption b.) Limiting backward compatibility c.) Inhibiting viral promotions d.) Restricting development of complementary goods e.) Discouraging the redefinition of markets

a.) Subsidizing product adoption

__________ is financial performance that consistently outperforms the industry average. a.) Sustainable competitive advantage b.) Superior value chain analysis c.) Strategic positioning d.) Operational effectiveness e.)Relative cost advantage

a.) Sustainable competitiveness advantage

___________ are costs that customers incur when moving from one product to another. a.) Switching costs b.) Fixed costs c.) Variable costs d.) Loyalty costs e.) Marginal costs

a.) 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. a.) Technological leapfrogging b.) Cross-side exchange c.) Technological power d.) Exchange power e.) Economies of scale

a.) Technological leapfrogging

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.) The cell phone b.) Big data c.) Cloud computing d.) M-Pesa e.) Esoko

a.) The cell phone

TiVo was an innovator, an early mover, and so well known that the firm's name has become a verb in many households (as in "Did you TiVo that program?"), yet the firm has struggled to achieve consistent profitability. Which two factors are suggested as negatively impacting TiVo's success? a.) The firm's technology was copied and it lacked access to a key distribution channel b.) The firm needed to license patents from key players, like Cisco, and pay cable TV firms royalties for shows broadcast c.) It leveraged strategic positioning but not operational effectiveness d.) Technology costs kept plummeting while expensive inventory remained backlogged

a.) The firm's technology was copied and it lacked access to a key distribution channel

_________ involves leveraging a firm's customers to promote a product or service. a.) Viral promotion b.) Convergence c.) Product championing d.) Envelopment e.) Advertising

a.) Viral promotion

What did Waze offer Google? a.) Better advertising accuracy via crowdsourcing b.) Better maps through crowdsourcing c.) Better voice-enabled search via crowdsourcing d.) Better pricing via crowdsourcing e.) All of the above

b.) Better maps through crowdsourcing

Why is eBay an example of a two-sided network? a.) Listings attract advertisers and vice versa b.) Buyers attract sellers and vice versa c.) Products attract sellers and vice versa d.) Greenfield efforts attract localization efforts and vice versa e.) None of the above

b.) Buyers attract sellers and vice versa

Envelopment is a strategy in which a firm seeks to: a.) Migrate to a different core competency by cutting itself off from its loss making efforts. b.) Conquer a new market by making it a subset, component, or feature of its primary offering. c.) Enter an uncontested, low profit market instead of competing in saturated, high profit markets. d.) Exchange its technical expertise in one area with another firm to effectively suit its resource capabilities. e.) Acquire a rival firm and assimilate its technology and marketing strategy.

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

What are two characteristics of disruptive innovations? a.) 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. c.) First, they are subject to Moore's Law. Second, they are subject to network effects. d.) First, the legacy technology being displaced must be analog. Second, the disruptive technology must be digital. e.) 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.

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

Which of the following is a source of bargaining power of buyers? a.) Unique and highly differentiated products b.) Greater choice of products c.) Loyalty programs d.) Network effects e.) High switching costs

b.) Greater choice of products

Which of the following factors can weaken buyer bargaining power? a.) Weak network effects b.) High switching costs c.) Availability of substitute technologies d.) Multiple suppliers e.) Small customer base

b.) High switching costs

A decision situation where one party has more or better information than its counterparts is known as___________. a.) Data hoarding b.) Information asymmetry c.) Market manipulation d.) Information overload e.) Price transparency

b.) Information asymmetry

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. a.) Christensen's Law b.) Innovator's Dilemma c.) The Harard Curse d.) Developers Conundrum

b.) Innovator's Dilemma

The phrase________ refers to the number of times inventory is sold or used during the course of a year. a.) Return on investment b.) Inventory turns c.) Total cost of inventory d.) churn rate e.) Economy of scale

b.) Inventory turns

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

b.) More users = more value

Performing the same tasks better than how rivals perform them is known as__________. a.) Operational positioning b.) Operational effectiveness c.) Network effects d.) Strategic positioning e.) Strategic effectiveness

b.) Operational effectiveness

Which of the following is a customer relationship management software? a.) HBase b.) Siebel c.) OpenSolaris d.) Zimbra e.) Cassandra

b.) Siebel

__________ is performing different tasks than rivals or the same tasks in different ways. a.) Vertical integration b.) Strategic positioning c.) Multi-tasking d.) Strategic effectiveness e.) Operational effectiveness

b.) Strategic positioning

What concept related to staying power is also known by the phrases "being sticky," "creating friction," and "lock-in"? a.) Platforms b.) Switching costs c.) Exchange d.) Complementary benefits e.) Network internality

b.) Switching costs

Which of the following statements about technology is true? a.) Technological improvements are not important in strengthening a firm's strategic advantages b.) Technological improvements can often be copied by rivals, leading to a profit-eroding arms race c.) Technology cannot be used by late entrants to gain a share of the industry d.) Technology plays a marginal role in creating strategic differences e.) Technology alone is enough to provide sustainable competitive advantage to a firm

b.) Technological improvements can often be copied by rivals, leading to a profit-eroding arms race

User interface refers to: a.) Small pieces of code that are accessed via the application server which permit interoperable machine-to-machine interaction over a network. b.) The mechanism through which users interact with a computing device. c.) A set of standards for exchanging messages containing formatted data between computer applications. d.) A robust set of Web services built around an organizations processes and procedures. e.) An application that includes an editor, debugger, and compiler, among other tools.

b.) The mechanism through which users interact with a computing device

The ability to take advantage of complementary products developed for a prior generation of technology is known as____________. a.) Retrospective leverage b.) Technology mapping c.)Backward compatibility d.) Convergence e.) Envelopment

c.) Backward compatibility

Which of the following is not considered a criteria necessary for prediction markets to function properly: a.) Offer a collective verdict b.) Be diverse c.) Be related d.) Be independent e.) Be decentralized

c.) Be related

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.) Transistor density is halved every 18 months b.) Microprocessor's become cheaper over time c.) Chip performance per dollar doubles every 18 months d.) Hard drive storage per dollar doubles every year e.) Costs relative to chip performance double every 18 months

c.) Chip performance per dollar doubles every 18 months

__________ are products or services that are nearly identically offered from multiple vendors. a.) Luxury goods b.) Complementary goods c.) Commodities d.) Veblen goods e.) Giffen goods

c.) Comdmodities

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. a.) Straddled b.) Interlinked c.) Cross-side d.) Same-sided e.) Rectilinear

c.) Cross-side

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.) With technology moving away from silicon based chips, it is prudent to maintain limited inventories b.) They are always in short-supply because of the huge demand c.) Depreciation rates of chip-based electronic are high d.) Silicon chips are susceptible to physical and electronic damage if left unused for long periods of time e.) Moving excess inventory between warehouses is expensive

c.) Depreciation rates of chip-based electronic are high

Netscape, which once controlled more than 80 percent of the market share in Web browsers, lost its dominant position when customers migrated to Internet Explorer, Microsoft's Web browser. Internet Explorer was easy to install and had no significant differences in terms of usability. This example serves to illustrate that: a.) Customers of technology companies are becoming increasingly savvy and more demanding. b.) Fast-following smaller firms are always ready with newer and possibly superior products. c.) Firms with low switching costs can sometimes be rapidly overtaken by strong rivals with additional competitive advantages. d.) Firms need to employ increasingly stringent intellectual property norms to guard against infringements from smaller, competitive rivals. e.) The open source nature of technology ensures that no firm can expect to monopolize a market.

c.) Firms with low switching costs can sometimes be rapidly overtaken by strong rivals with additional competitive advantage

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

c.) Improve patient adherence to prescription schedules

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.) Unchecked investment in new technologies can burn up capital invested in promising initiatives, turning 'money tree green' to 'creosote' soot, c.) 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. d.) A successful incumbent will spread the seeds of innovation far and wide, like the creosote bush distributing far-traveling seeds to the winds. e.) Innovative efforts become a hardwood core, nearly impervious to the tech-fanned flames of disruptive new entrants.

c.) 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.

One way firms seek to strengthen their platforms and encourage third parties to develop complementary goods is by: a.) Creating a walled garden b.) Vertical integration c.) Offering APIs d.) Inimitable value chain

c.) Offering APIs

For providers of commodity products, how does the Internet typically impact price transparency and information asymmetry? a.) Price transparency decreases while information asymmetry increases. b.) Both price transparency and information asymmetry decrease c.) Price transparency increases while information asymmetry decreases d.) Both price transparency and information asymmetry decrease e.) Both price transparency and information asymmetry increase

c.) Price transparency increases while information asymmetry decreases

The resource-based view of competitive advantage states that for a firm to maintain sustainable competitive advantage it must control a set of exploitable resources that have four critical characteristics. What are these characteristics? a.) A web site, an app, cloud-based systems, a savvy technology staff b.) Operational effectiveness, strategic positioning, scale, distribution channels c.) Rareness, value, imperfect imitability, non substitutability d.) Inventory turns, high margins, long account payable periods, brand building relationships

c.) Rareness, value, imperfect imitability, non substitutability

Advantages related to a firm's size are referred to as__________. a.) Switching advantages b.) Absolute advantages c.) Scale advantages d.) Location advantages e.) Growth advantages

c.) Scale advantages

__________ refers to the long-term viability of a product or service. a.) Lock-in b.) Complementary benefit c.) Staying power d.) Network internality e.) Exchange

c.) Staying power

____________ systems help a firm manage aspects of its value chain, from the flow of raw materials into the firm through delivery of finished products, and services at the point-of-consumption. a.) Electronic data interchange b.) Database management c.) Supply chain management d.) Business intelligence e.) Customer relationship management

c.) Supply chain management

The name sometimes is ascribed to disruptive innovation theory is: a.) The intel effect b.) Steve Job's puck c.) The innovator's dilemma d.) Moore's Law

c.) The innovator's dilemma

Which of the following is an economic measure of the full cost of owning a product? a.) Lifetime value of a customer b.) Product lifecycle c.) Total cost of ownership d.) List price e.) Fixed cost

c.) Total cost of ownership

Dell, previously the world's number one PC manufacturer, has seen its market share shrink because of rivals copying its value chain and reducing the price advantage it enjoyed over rivals. Dell's present struggles: a.) Demonstrate that resource-based thinking can help firms avoid the trap of carelessly entering markets simply because growth is spotted. b.) Highlight the fact that scale advantages of an established firm are a huge factor in discouraging newer entrants to a market. c.) Underscore the importance of continually assessing a firm's strategic position among changing market conditions. d.) Are a result of rivals adopting supply chain management of software products that have yielded competitive advantages. e.) Imply that publicly traded firms are at a disadvantage in the technology sector.

c.) Underscore the importance of continually assessing a firm's strategic position among changing market conditions

Which of the following online efforts has crowd wisdom as its underlying principle? a.) Blogs b.) Social networks c.) Wiki d.) RSS feeds e.) Microblogging

c.) Wiki

In the context of network effects, the term "network" refers to: a.) A communication system consisting of a group of broadcast stations. b.) A system of intersecting lines or channels. c.) The physical wires or wireless systems that connect pieces of electronics used by network users. d.) A common user base, utilized to communicate and share with one another. e.) A series of points or nodes interconnected by communication paths.

d.) A common user base, utilized to communicate and share with one another

FreshDirect should be safe from competition with traditional grocery stores (since they would be straddling two models instead of getting FreshDirect's singular efficiency), and new startups are likely going to struggle to match FreshDirect's scale and brand. However, Amazon presents a particularly strong challenger to FreshDirect. Why? a.) Amazon's drones will offer faster delivery than FreshDirect trucks b.) Amazon's president, Jeff Bezos, grew up on a farm and has deep knowledge and personal relationships that will help implement a farm-to-table rival c.) Amazon and Google have partnered to create a joint venture combining their strengths to create an online grocery powerhouse d.) Amazon has deep pockets and is aggressively seeking to expand into groceries

d.) Amazon has deep pockets and is aggressively seeking to expand into groceries

Moving first pays off when lead time us used to create: a.) Multiple variants of the same product b.) Affiliate programs c.) Information asymmetry in the market d.) Critical resources for competitive advantage e.) Network effects

d.) Critical resources for competitive advantage

Sometimes technology can sound geeky and so technical that executives might think that it doesn't require managerial or investor attention. However, many investing in the telecom sector suffered from a lack of insight into how a key technology was impacting their industry. a.) Cloud computing b.) Open source software c.) Radio frequency identification d.) Dense wave division multiplex

d.) Dense wave division multiplex

_________ refer(s) to applications that address the needs of multiple, simultaneous users in an organizations or work group. a.) Desktop software b.) Operating systems c.) Embedded systems d.) Enterprise software e.) User interfaces

d.) Enterprise software

Cameras, MP3 players, USB drives, and mobile phones often use ______ which holds data even when the power is off. a.) Virtual memory b.) Volatile memory c.) Primary memory d.) Flash memory e.) Cache memory

d.) Flash memory

Network effects are sometimes called______________. a.) Network internalities b.) The Osborne Effect c.) Moore's Law d.) Metcalfe's Law e.) Leverage Effects

d.) Metcalfe's Law

The phenomenon of________________ exists when the value of a product or service increases along with a growing number of users. a.) Scale economies b.) Straddling c.) Strategic positioning d.) Network effects e.) Switching costs

d.) Network effects

Which statement best describes the relationship between network effects and innovation? a.) More often than not, network effects foster innovation b.) More often than not, network effects limit innovation c.) Network effects decrease innovation within a standard but increase the number of innovative offerings that compete against a strongly established standard. d.) Network effects increase innovation within a standard but decrease the number of innovative offerings that compete against a strongly established standard. e.) None of the above

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

A(n)_________ is the one that derives most of its value from a single class of users. a.) One-off market b.) Concentrated market c.) Monopoly d.) One-sided market e.) Two-sided market

d.) One-sided market

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

d.) Random-access memory

A strong brand can be an exceptionally powerful resource for competitive advantage by lowering ________, proxying _____ and inspiring _____. a.) Customer concern ; investment ; profits b.) Price ; strategy ; innovation c.) Expenses ; marketing ; respect d.) Search costs ; quality ; trust e.) Switching costs ; quantity ; performance

d.) Search costs ; quality ; trust

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.) IoT b.) Optical fiber line c.) Surge suppressor d.) Semiconductor e.) Volatile memory

d.) Semiconductor

The phrase_____________ refers to the positive influence created when someone finds out that others are doing something. a.) Cross-sided benefits b.) Viral marketing c.) Blue ocean strategy d.) Social proof

d.) Social proof

In the context of open source software, the term "hardened" is used to describe: a.) Companies with security as their core competency. b.) Anti-virus and anti-malware software products. c.) Firms that dominate the market for anti-virus software. d.) Technology products with particularly strong security features. e.) Software products with modest security features, but low performance.

d.) Technology products with particularly strong security features

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.) Solid State b.) Intranets c.) The Singularity d.) The Internet of Things e.) Elastic computing

d.) The Internet of Things

The term "software" is used to refer to: a.) A form of computing where systems collaborate to complete a task. b.) The molded silicon parts inside computer peripherals. c.) The mechanism through which users interact with a computing device. d.) The set of instructions that tells hardware what to do. e.) The output of any specific task performed by a computer.

d.) The set of instructions that tells hardware what to do

The acronym VoIP is considered by many to be a disruptive innovation. It refers to: a.) DWDM b.) Cloud computing c.) Semiconductor manufacturing technology d.) The technology used in internet telephony

d.) The technology used in internet telephony

The term_____________ refers to leveraging consumers to promote a product or service. a.) The collaboration economy b.) Social sharing c.) Network effects d.) Viral Marketing

d.) Viral Marketing

_____________ id the idea that a group of amateur individuals collectively have more insight than a single or small group of trained professionals. a.) A walled garden b.) Astroturfing c.) Outsourcing d.) Wisdom of crowds e.) Disintermediation

d.) Wisdom of Crowds

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. a.) Open source b.) Blood-red c.) Skimming d.) Top of the pyramid e.) Blue ocean

e.) Blue ocean

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: a.) The Osbourne Effect b.) Network Effects c.) Convergence d.) Envelopment e.) Congestion Effects

e.) Congestion Effects

The three sources of value for network effects include______________, staying power, and complementary benefits. a.) Supply chains b.) Scope c.) Profitability d.) Scale e.) Exchange

e.) Exchange

The _____ problem exists when savvy rivals watch a pioneer's efforts, learn from their successes and missteps, and then enter the market quickly with a comparable or superior product at a lower cost. a.) First-mover b.) Circumnavigation c.) Copyright infringement d.) Side step e.) Fast follower

e.) Fast follower

Oracle, a firm that sells commercial ERP and database products, provides Linux for free, selling high-margin Linux supports contracts for as much as five-hundred-thousand dollars. This is an example of: a.) Firms using open source software to fuel hardware sales. b.) Open source software infringing on proprietary intellectual property. c.) Risks that firms are exposed to if they use open source software. d.) The shift from open source software toward a proprietary software regime. e.) Firms using OSS to wean customers away from competitors.

e.) Firms using OSS to wean customers away from competitors

Which of the following statements is true regarding enterprise systems: a.) Enterprise systems have no impact on the availability or utility of data for reporting and business analytics - these systems are unrelated. b.) Adopting an enterprise system means firms must throw out all of their old software and deploy the entire new system in a single "big bang" implementation. c.) The standardization employed in enterprise systems ensures that such products are among the easiest software products to deploy, implement, and use. d.) Enterprise software is also called ERP systems, but the enterprise software category does not include products such as customer relationship management (CRM) or supply chain management (SCM) systems. e.)For many firms, installing and deploying enterprise systems have been difficult, with some firms experiencing loss or even bankruptcy from botched efforts.

e.) For many firms, installing and deploying enterprise systems have been difficult, with some firms experiencing loss or even bankruptcy from botched efforts

The_________ is considered the brain of a computing device. a.) Cache memory b.) Data storage unit c.) Central processing unit d.) Logic and arithmetic unit e.) Microprocessor

e.) Microprocessor

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

e.) None of the above

Storage that retains data even when powered down is called: a.) Static memory b.) Delay line memory c.) Dynamic memory d.) Random access memory e.) Nonvolatile memory

e.) Nonvolatile memory

Which of the following represents one of the primary components of the value chain? a.) Research and development b.) Procurement c.) Human Resource Management d.) Firm infrastructure e.) Outbound logistics

e.) Outbound logistics

Operational effectiveness refers to: a.) Matching the benefits of a successful position while maintaining an existing position b.) The implementation of technology in a business context c.) The number of times inventory is sold or used during the course of a year d.) Performing different tasks or the same tasks in different ways e.) Performing the same tasks better than rivals perform them

e.) Performing the same tasks better than rivals perform them

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

e.) Price elasticity

Benefits derived by interaction among members of a single class of participants are called________ exchange benefits. a.) Concentrated b.) Cross-sided c.) Dedicated d.) Renewed e.) Same-side

e.) Same-side

__________ is the ability to either handle increasing workloads or to be easily expanded to manage workload increases. a.) Reliability b.) Availability c.) Interoperability d.) Traction e.) Scalability

e.) Scalability

Patent trolls hold intellectual property with the intention of: a.) Bringing novel innovations to the market. b.) Promoting an open source model for innovations to benefit all players equally. c.) Bleeding smaller companies with high litigation costs and prolonged court battles. d.) Bringing about legal reforms in the field of intellectual property law. e.) Suing or extorting large settlements from large firms.

e.) Suing or extorting large settlements from large firms

Network markets comprised of two distinct categories of participants, both of which are needed to deliver value for the network to work are called___________. a.) Twin markets b.) Dual benefit markets c.) Straddled markets d.) Consolidated markets e.) Two-sided markets

e.) Two-sided markets

T/F: The set of activities through which a product or service is created and delivered to customers is called the_________. a.) Loyalty program b.) Core competency c.) Rewards system d.) Network effect e.) Value chain

e.) Value chain