MIS

strategic positioning

accompanied by operational effectiveness, performing different activities than the original rival, or at least in a different way (think of FreshDirect example -low waste -high inventory turns -regularly evaluate product -effective AI usage (tech VERY helpful) -constant improving software=hard to copy

Differentiation

actually differentiating the market offering to create superior customer value

data mart

addresses concerns of a problem (improving product quality) or business unit (marketing) -store large amounts of data; expensive and take years to build -trade-off between large-scale integration and targeted efforts with quick pay off -many consultants advise smaller projects -start warehouse building with clear goals

scale and its potential advantages

advantages related to size. Example: Netflix incurs a cost of $300 million for 25 million subscribers while Blockbuster incurs the same cost for 1.3 million subscribers; can also be used to gain bargaining power with suppliers or buyers through popularity

Incumbents: Close Off Rival Access and Constantly Innovate

by continually innovating, rivals can't simply mimic their product; through mac's innovation, users can download windows on mac, but mac software can't be downloaded on microsoft

software as bits vs. software as service

bits: develop, test release -> install, qualify, operate service: develop, test, operate -> internet

over-engineering

building a model with so many variables that the solution arrived at might only work on the subset of data you've used to create it

rewards and risks of systems

can save money when used right by making data more usable and link systems, though these systems are easily matched by competitors and many fail

operational effectiveness

causes firms fail by them seeking to simply outperform their competitors instead of strategic positioning; especially when it comes to tech

Random Access Memory (RAM)

chip based memory -volatile (when power goes out, al is lost if it wasn't saved to non-volatile is more permanent like a hard drive -temporary

linux distribution and development

distribution: free linux distribution -> linux foundation -> 1. usability 2. support 3. training 4. consulting development: developed by foundation, coordination for developers; donations like $1B from IBM

database management systems

stores a retrieves data that an application creates and uses -fits in cake between o.s. and applications -organization's different programs use shared data -helps manage the value chain (track inventory across the board, communicate with suppliers)

good gamification difference

doesn't start with game elements (ages vary), but core drives -KPIs, narratives, queues, focuses on basic human drive to succeed, and connecting goals to teams

agile development

dominant; targets waterfall's weaknesses by tackling work continually (improvements in small areas) -teams -customer needs, organizational goals -fixable and speedy -critics say too rapid, less quality

electronic date interchange

electronic date interchange (EDI) is a set of standards for exchanging information between computer applications; often used to send documents from org to org; decreases error

CRM (Customer Relationship Management)

empowers employees to track and record data at nearly every point of customer contact

how data helped find the Golden State Killer

-sequenced his DNA on GEDmatch website, used DNA from distant relatives to build family tree to him -helpful in this case, but there are privacy concerns

service oriented architecture

-set of web services built around an organization's processes and procedures, separate applications allow for flexibility; turns products to platforms -expedia affiliation network

walmart's data sharing

-shares inventory data with 17,000 suppliers; purchases, returns, forecasts, etc; increases sales by as much as 19% -otherwise, does not share data

Sarbanes-Oxley Act

2002, aka SOX, was passed to protect shareholders and the public from fraudulent accounting practices; technology is the reason this act is able to hold accountants accountable (ha)

Non-practicing entities

Hold property not to bring product to market, but to prevent others from doing so in hopes to achieve a settlement from them

EDIs

electronic data interchange: interorganizational information systems -southwest and rental

Customer Relationship Management (CRM) systems

support customer related and marketing activities

user value of operating systems

the value of an OS is jointly determined by the OS' own functionality and the availability of apps running on it

Leverage Backward Compatibility

this is the ability to take advantage of complementary products developed for a prior generation of tech (spotify allows itunes users to import playlists directly from itunes to spotify with ease)

Channel conflict

when manufacturers (brands) disintermediate their channel partners, such as distributors, retailers, dealers, and sales representatives, by selling their products directly to consumers through general marketing methods and/or over the Internet

client server system

world-wide web; two pieces of software (client and a server that fulfills the request)

flash memory

-USBs, mobile phones, MP3; not as fast as RAM, but holds data (chip-based hard drive) -non volatile

data quality

4. is this data accurate

congestion effect

When increasing numbers of users lower the value of a product or service (EA games example)

virtualization

can make a single computer behave like a machine; consolidates resources

important drivers for microsoft's early success

-complementary products -relationship with OEMs -support for ISVs -bundling -network effects

deep learning

"deep" is layers of interconnections and analysis examined to arrive at results; more analytical complexity for the AI

Moore's Law and other tech firms and products

-"skate to where the puck is going, not where it is" -IPod for example offered more storage for way cheaper -kindle was updated and price decreased by 400 dollars -amazon launched "search inside the book" and created a database 20x larger than one before -Moore's Law rewrites boundaries of competition

Sculley Year

-1985-1993 -recruited by jobs from pepsi, now replaced him -tried to push mac to new markets, especially publishing and education -apple's desktop market was driven by superior software aldus (adobe) pagemaker and things like laser printers -education: apple had more than half the market -wordwide market share: 8% -by 1990, had $1 billion in cash, most profitable company in the world -products stood out by being "plug and play", and designed products with unique chips, disk drives, and monitors -ibm compatibles narrowed ease of use gap in 1990 when microsoft released windows 3.0 (ibm put up with, mac loved) -apple sold at premium price; some went for up to 10,000; gross profit 50% -ibm prices dropped and attracted most of new applications, meaning that macs looked overpriced -apple devoted 9% of sales to R&D, while IBM 1% -sculley tried to move apple mainstream in 1990, like the Mac Classic for $999, designed to compete with IBM -sculley forged alliance with ibm; taligent set up to create OS Kaledia to write multimedia apps -tried to rework mac OS to run of intel chips with novell and intel to speed up processing -both projects tried to create and new "hit" every 6-12 months assaulted pc industry; apple's gross margin dropped 34%, 14 point below 10 year average

The Spindler Years

-1993-1996 -spindler, the company's president, replaced sculley in 1993 -killed plan to put mac os on intel chips, but decided to license apple to some companies to make clones -cut costs by firing 16% of workforce; pushed international growth; 45% sales came outside US -despite efforts, apple was losing momentum, survey from 1995 found no windows users would consider buying a mac, but over 50% apple users expected to buy an intel based PC -spindler had hopes for OS to change fate, but taligent and kaleida didn't work out; spent 500 million but neither side would switch tech -69 million loss in 1996

positive feedback loops

-2 sided markets have more positive feedback loops, which are whenever businesses listen to complaints or grievances to improve their company. an increase in the number of users on one side of the market creates a rise in the other side (cross side benefits)

the macintosh and apple's digital hub strategy

-2001, apple's 25th anniversary, jobs laid out digital hub vision; consumers have a digital lifestyle, where the mac is the hub, and knew apple's control of both hardware and software was a strength -revamped product line for integrated user experience; through this, became 4th largest pc vendor in the world with 8% share by the end of 2009, strength in premium priced pc category, 91% priced 1000 and above sold by apple -shift to intel cpus: first mac computer with intel chip 2006, higher performance overall; intel chips enabled apple to build laptops that were faster and better battery life; notebooks 69% of macintosh sales 2009, compared to 38% 2002. could run windows os and apps with intel -operating system: new OS 2001, first platform since 1984; Mac OS X based on UNIX; cost 1 billion to develop; upgrades every 12 to 18 months; leopard, 6th version october 2007, sold 2 million copies opening weekend; ran on more than half mac computers january 2010; 81% users very satisfied, vs windows XP 53% -applications: proprietary, so growing in efforts to support mac line; iLife suite programs cost apple and depended on independent software like microsoft; apple developed web browser safari 2003, so microsoft said no IE for mac, but still office for mac, which was critical for mac, sold 1 billion of office to mac users -distribution: first apple store: mclean, virginia 2001. gave consumers a first experience with mac line, half of retail mac sales were new to mac customers 2009. 280 stores in 10 countries accounted for 16% apple's total revenue

Healthcare.gov/ObamaCare

-250,000 visited the site on launch day, only 8 enrolled -no clear leadership/accountability -no testing beforehand -couldn't handle national scale -fixed with clear priorities, results reporting, and coordination

the business of open source

-60 billion $ a year industry; disproportionate impact of trillion dollar IT market; 95% IT orgs use open source software, more accessible to smaller firms, and cheaper costs allow for more tech innovation -acquisition boom: hortonworks, cloudera, MapR, mongoDB, and Red hat (first open source firm to go public/market capitalization fo $30 billion)

quantum computing

-6h wave of tech innovation -examples: strain analysis in paint, one molecule car, 3D printing, self-cleaning clothes -a quantum computer of only 300 atoms would have more power than every computer in the world, instant calculations that the largest computer right now would needs billions of years to figure out

internet connection in finance

-75% of financial market volume trading is automated (algorithmic, black box, high frequency trading) -have to be quick with systems -colocation facility: storage places where a firm's servers get super fast connections; equinix is major colocation and IXP had 9 data centers, and is classified as a real estate investment trust -important to understand how it works

Bits and Bytes

-8 bits (0 or 1) form a byte... one letter or number -exact amount and managerial amount -kilobyte: 2^10 bytes OR 10^3... one typewritten page -megabyte: 2^20 bytes OR 10^6... one photo -gigabyte: 2^30 OR 10^9... 1 DVD movie -terabyte: 2^40 OR 10^12... printed collection of the library of congress -petabyte: 2^60 OR 10^15... walmart's data warehouse -exabyte: 2^70 OR 10^18... 1/5 of all printed material in the world

supervised learning

-Agent observes input-output pairs & learns to map input to output -essentially, it is trained by learning from examples

Analog vs. Digital signal

-Analog, takes audio/video signals and translates it into electrical pulses. circuit switching (analog sound wave, cant break up. one long continuous wave. If the line was lost, the transmission failed. One dedicated line (costly and could fail)) -Not fault-tolerant -Digital, signal breaks data into binary format where audio and video are represented by 1 and 0. packet switching (take characters and break them up into binary code) router puts the info together. If one line gets cut, message can be re-routed. (Fault-tolerant -ex: if one of google's servers goes down, it's okay.

Apple in 2010

-April 4, 2010 Apple launched IPad; 3rd innovative device of the decade -Apple started off as "Apple Computer" in the 1980s in 90s, although almost went bankrupt in 1996 -Jobs transformed apple computers to apple inc with innovative and new devices early 2000s -2009: iphone and ipad 60% of sales of 43 billion, and shared price had risen more thant 15% since 2003 -ipod sales falling 2009 -microsoft released windows 7 this year, so pc became more popular again, although apple's share had stayed below 5% since 1997

Buying a computer

-CPU speed (Hz, MHz, GHz) -RAM (GB, for example 16 GB Mac) -Hard drive (size ex 125 GB, speed ex 5400 RPM, type HDD which was 2 terabytes, or SSD which has no moving parts, has 50GB and is better for startups, and is more tolerant to damage) -32 bit is 2^32 vs 64 is 2^64

DSL

-Digital Subscriber Line -A method of connecting to the Internet via a phone line. -A DSL connection uses copper telephone lines but is able to relay data at much higher speeds than modems and does not interfere with telephone use. -however, downside is the copper wire in that the farther away you are, the worst it works -works better in densely populated areas

ERP systems and strategic advantage of a database

-ERP improves connections across value chain by connecting its activities -enterprise information systems plus databases equals money bc of this coordination

IP

-Internet Protocol -routes packets to their final destination, which might have to travel to several other networks to get where they're going -work is done by routers; speak/communicate using IP -every computer on the internet is connected to a router, and all routers are connected to at least one other router -routers don't have all the info, nut have a good idea; help keep internet decentralized and fault-tolerant

basics of network effects

-Metcalfe's/value increases with users entrepeneurs like zuckerburg, bill gates, etc leverage network effects to gain success -network effects don't always matter (socks), but when they do, they're important

Application Software microsoft

-OSes sold mainly through hardware original equipment manufacturers, applications were sold through computer companies, corporate site licenses, various retail channels, and the internet -key for OS was build close relationships with independent software vendors, didn't have access to source code, but had access to APIs to take advantage of. -customers often chose a software application and stuck with it (high switching costs), but as the cost of producing software went up, and windows reduced switching costs, and microsoft became largest PC app vendor -microsoft gained customers by bundling their applications and upgrade sales -competitors had to play catch up -applications were 1/3 of sales in 2005, peaked 60% in 1990s -market share rose 90% in 1995, 95% 1998 -revenue decreased because of bundles, upgrades were taking in revenue, had lower margins than new products, and 80% only used 20% of features

Microsoft's enterprise strategy

-PC industry was growing at a compound annual growth rate of 15% to 18% from 1982 to 2000, microsoft, using OEM relationships had a dominant position for desktop and OS markets... 90% share -faced obstacles to maintain in the 5 years after 2000, growth in pc shipments fell, quality and security issues continued, and open source gained momentum, and new markets harder to get into -1998 halloween memo: new network OS called Linux, free version of UNIX with open source for all developers, gained web and email users -dell or compaq adopting linux could put downward pressure on server OS prices, and as more services offered, price sensitive customers, such as the government, threatened to go to them -many in Asia adopted Linux, solution to cutting cost of PC; 1% in 2005, forecasted 10% in 2008 -Asia only 11% in 2004, but opportunity -linux worldwide shipments predicted to grow 25% annually from 1999 to 2003 -apache and MySQL already popular before -commercially supported versions took 2% of desktop market 2003 -ballmer called it a cancer that took away incentive for software industry to innovate -survey in 2004 said that 70% large companies used linux somewhere without even knowing -linux benefitted from security flaws in microsoft and IBM pushed it in 2004, which was threat to microsoft's monopoly -linux advertised free and open-source nature, but microsoft tried to promote usability and complementary products; but usually, price was biggest concern -microsoft tried to increase consumer education and total cost of ownership studies -implemented shared source initiative, which opened pieces of code to encourage collaboration (some could see, not modify) -linux gained 2-3% microsoft OS business

PaaS and IaaS motivations

-SaaS provides software and hardware, but sometimes firms want to pay someone to run it for them -they replace hardware and software with a 3rd party online; costs are equal to processing, storage, and telecommunications -usually, 80% of corporate tech spending goes to data maintenance, so these chip away those costs, and firms are instead spending money to establish data centers -many like salesforce and force offer additional upgrade services -infrastructure as a service is a good alternative for firms wanting more control; they can select their own operating systems, software packages, and the vendor manages -they can provide additional back up/storage options -intense competition; getting cheaper -"private clouds" allow only the firm access to the material -hybrid clouds: resources from private clouds and off-site resources -cloud-bursting: when a data center at maximum capacity can shift part of the workload to another cloud (black swans)

History of Apple

-Steve Jobs and Wozniak, 20s, founded apple computers April 1st, 1976 in garage -built a circuit board called Apple I; made 200 more within months and had businessman mike markkula join -jobs wanted to bring easy computer to market; released Apple II April 1978; sparked computer revolution driving pc industry to 1 billion in less than years -became industry leader quickly, sold over 100,000 apple IIs by the end of 1980; launched successful IPO in december 1980 -when IBM entered pc industry in 1981, things changed; ibm pc used microsoft's DOS-OS and cpu from intel, which was open enough for others to clone... apple did not license hardware to third parties and proprietary designs -this pc set a new standard and gained market share, so apple released macintosh 1984; breakthrough with design, elegance, and ease of use... but slower processing speed and lack of compatible software caused net income to fall 62% between 1981 and 1984 -jobs forced out of 1985

TCP

-Transmission Control Protocol -works at both ends of most internet communication to ensure a perfect copy of a message is sent -slice data into chunks called packets labeled with a destination address and source address -after packets are received, machine's TCP kicks in, checks packets and puts them in the correct order

DB Application System Components

-User -Database Application (forms, reports, queries, application programs) -DBMS -Database (tables, relationships, metadata)

Vista

-Vista successor to Windows XP, first major release in 5 years; scheduled to released 2005 with file system WinFS and web service architecture indigo, but made changes and pushed release 2006 -guaranteed security improvements, better graphics, improved searching, easier to use on multiple pcs and less rebooting -great deal of press, but lots of security updates meant customers had to make more minor updates and sick of it -2005, many hadn't downloaded most recent update, windows xp service pack 2 released in august 2004, people thought vista had tough road ahead

thin and thick clients

-a computer of computer program that depends heavily on some other computer -thick client provides rich functionality independent of a central server

IP address

-a device's internet protocol address for communication gets from whichever org is running internet; servers rarely change, laptop depends on location; can be used for location and advertising -if running low on IP addresses, network address translation (NAT) uses a gateway allowing multiple devices to use a single IP address... slows down internet access and is complex only solution is new IP scheme, IPv6, which goes from 2^32 to 2^128, but not backward compatible and will take years to upgrade

hosts and domain names

-a domain is the name the network is connecting to, the host is the computer on that network; can have different ones

open software

-a fundamental model powering software by offering free alternatives where anyone can look at and potentially modify a program's code -poses a challenge to assets and advantages cultivated by market leaders (how can we compete with 'free'?"

Embedded Systems and Firmware

-a lot of OS is on hardware, but some are on non-volatile memory, read only memory chips, aka firmware -embedded systems are designed/included in physical products; help with maintenance, stored on firmware, microprocessors devices communicate

Data rich, information poor

-a survey found 57% of companies w/o beneficial, consistently updated, company wide, analytical capability -it is limiting BI; initiative is getting data to a usable form

gamification steps

-accomplishment (points, badges/ progress bar) -ownership (virtual goods, build from scratch) -scarcity (dangling, prize pacing/ it's your job and your life) -avoidance (FOMO, progress lost/ avoiding loss of career) -unpredictability (miniquests, storytelling/ are recruiters googling my name?) -social influence (friending, group quest/ recommendations) -empowerment (milestone unlock, instant feedback/ better ways to dress up profile) -meaning (narrative, elitism/ finding dream job)

legal risks of linux

-adapters of OSS w/o support have to rely on community of volunteers for upgrades who might accidentally implement patented software into the code -different licensing standards across different open sources

emergence of the internet

-allowed firms to find a method to share data on their networks -open standards communications protocol (TCP/IP)/ not standard til mid-1990s -browser had its own GUI on top of OS, accessing data anywhere on computer's hard-drive -HTTP requests and HTML answer -first challenge was internet browser; invested resources and created internet explorer 3.0, integrated directly into windows 98 OS -netscape went from 87% to 22% by 1999; explorer 95% and netscape 3% by 2003 -loss of shared to 83% due to security problems, firefox had 10% -Java was a threat: software applications could run on any machine using JVM, running on applets; threatened to reduce OS but took away programmers -launched a windows specific computer language licensed from sun -sun sued mircrosoft in 1997, settled in 2004 -showed potential for middleware residing between OS and its apps and data, reducing complexity -sun had this vision of computers were the network -microsoft believed computing was a commodity -2001 revamped licensing programs; customers were charged annual fee allowing them to new versions over a specified period of time, although ended up increasing their costs sense new model was before replacement cycle -challenge was to manage the complexity of vast network

Itunes

-although a lot of mp3 players were similar to the ipod, but what set it apart was the itunes store -itunes synchronized ipods with computers and music store allowed users to easily purchase and download music -released in april 2003 -combination of the two created an entertainment hub; first legal site allowing music to be downloaded on a pay per song basis -downloaded songs could be played on the user's computer, burned onto a cd, or transferred to an ipod -within 3 days, pc users had downloaded 1 million copies of software and purchased 1 million songs -became #1 music store in the world -by 2010, had sold 1 billion songs -offerings expanded to audiobooks and tv shows; over 8,000 movies could be downloaded or rented -before itunes, sold an average of 113,000 a quarter, afterwards 733,000 units -itunes didn't collect much profit; 70/99 of each song went to music label and 10 went to processing fees, so only got a little proft -central to itunes model was the standards that guaranteed music labels' intellectual property and the proprietary tech inside of the ipod; had an exclusive DRM system called fairplay that protected itunes songs against piracy by limiting # of computers that could play a downloaded song to 5 -no competing mp3 player could play fairplay protected songs -apple had a tense relationship with content companies; didn't like the fixed pricing structure; saw higher priced CD sales -came to an agreement in 2009 that gave up DRM, allowing labels to charge more for new or popular music and allowed people to move songs from itunes around more

competition for itunes

-amazon.com, napster, and walmart.com offered individual songs with discounted prices -music labels had allowed some of these to sell music without DRM up to a year before signing agreement with apple -subscriptions offered unlimited music at $5 a month -myspace formed a partnership with 3 major music labels in 2008 -internet radio, last.fm offered free music -spotfiy created online jukebox that was largest in europe; some labels making more off spotify than itunes -jobs responded by buying lala.com in 2009; circulated idea that apple could be exploring alternative model to store and download music

spotify and echo nest

-analyze music and pay attention to what world is saying

Amelio Years (1996-97)

-apple director, appointed ceo 1996 -wanted to go back to premium price strategy -sales still fell and no OS produced to combat windows 95 -amelio turned to jobs, who helped with announcement of NeXT software (jobs after he left apple) in december 1996 -jobs returned to apple as a part time adviser -job cuts and restructuring efforts, lost 1.6 billion and market share decreased to 3%

keys as a manager producing tech

-avoid overproduction so products don't rapidly fall in value -consider how long equipment is useful, what is the expense of upgrading, etc

NoSQL models

-avoid rigid structure of relational databases; popular with firms rely on massive and unwieldy structured data; heart of "big data" efforts; no one standard

why do projects fail

-bad tech, processes, and procedures 1. unclear/unrealistic goals 2. bad leadership/commitment 3. inaccurate estimates 4. badly defined requirements "feature creep" 5. poor status updates 6. poor communication 7. immature tech 8. too complex 9. poor practices of development 10. stakeholder policies

microsoft connects to server environments

-before 1993, microsoft focused on OS software for PCs -developed software networks that connected powerful computers, aka servers, to clients (desktop PCs) -knew they needed to offer a more powerful OS for corporate desktops and network servers, introduced Windows NT (UNIX-based OSes) -portable, which meant it could work on computer that had non-intel microprocessors -early versions had bugs and were slow to find their target markets -Windows NT 4.0 1996 immediate success, lacked stability for corporate, however -Windows 2000 very successful, finally got to corporate market; 70% server market share -challenge was technical support; always had to answer customer questions about security issues, costs of 1 billion per year

Linux effect on finances and development

-before linux, firms made their own incompatible versions of software; markets were fractured and failed to attract 3rd party software writes; now, the market is unified -linux is supported through the Linux Foundation -now, hardware firms spend more on developing commercial software, add-ons, consulting services, and enhancing hardware

key take aways from video with Bill Gates and Steve Jobs

-both Bill and Steve respected each other greatly for the achievements they had within the business tech industry -although their business models and process differed greatly, they recognized that they each had their strengths and that sometimes the other had implemented better procedures (steve had intuition about people's tastes, microsoft was better at partnerships) -steve knew that the key to 'winning' wasn't for apple to beat microsoft, but instead, for apple to stay true to itself -Gates still has a passion for learning and philanthropy, which he uses tech to drive -apple's key to success is collaboration -both agree that people and passion are the key to success

other hope for Moore's law

-breakthroughs every now and then -new materials might work -using light for signals instead of electricity? -quantum computing

TCP/IP (Transmission Control Protocol/Internet Protocol)

-built into any device that a user would use to connect to the internet and make internet networking happen

software development methodologies

-businesses look to successful past-approaches when developing their own -methods to divide tasks, relate software creation, good for a manager to be familiar with

Microsoft Network, MSN

-by 2005, microsoft's internet holdings were msn.come, msn access dial-up service, hotmail, msntv, and MSNBC (generated more than 50% of sales from advertising, less than 40% from declining dial-up service) -MSN attracted 400 million unique visitors a month -what would role in search space me with google and yahoo involved; low customer loyalty, and google had toolbars and desktop search -paid search listings increase from 3.2 billion end of 2005 to 5.5 2009 -january 2009 launched msn search with 200 mil advertising; still lagging behind google 67 mil with only 40 mil and 47 yahoo -ms 816 mil pages, google 4.6 billion -microsoft wanted to be dominant in this space, and wanted growth from online; launched online downloading service to compete with apple, who had 70% market share -invested in foxsports to cover popular sporting events

processing devices

-central processing units (CPU) selects instructions, processes them, performs arithmetic and logical comparisons and stores operations in memory -main memory: sometimes called random access memory -special functions cards: enhances computer's basic capabilities on things like video cards

waterfall

-classic/outdated -linear sequential identification, design, implementation, verification, maintenance -upfrontness prevents "feature creep" (expansion of project) -too rigid, timely, and precise

Watson example

-cloud based computing platform, allowing any organization to tap into all sorts of services (language processing, image recognition, etc) -75 industries, 17 nations; North Face, Kia, Sesame Workshop -wide using range -won jeopardy so ya

surveys and data

-combine data with bits brought from outside, since a lot of firms don't sell to customers directly -can provide key operational insight -brinker uses weather, employment stats, gas prices, etc

competitors to app store

-competitors fell into two categories; RIM, palm, and nokia approached by controlling both hardware and software; RIM's blackberry was widely offered and popular amongst corporate usersl RIM and apple most popular smartphone companies, apple accounted 5% total unit value, but had 60% total operating profits in 2009; palm struggling to survive, reported 11th quarterly loss in 2010 -leader in systems nokia; symbian OS held 47% share, especially in europe and emerging markets like india, but smartphone market share decreased dramatically; weak presence in U.S. ; tried to abandon symbian for more advance with intel in 2010, MeeGo with app store Ovi -HTC, Samsung, LG electronics, and motorola took different approach and licensed operating systems to microsoft or used google's free android OS -windows 7 shipping holiday season -android open platform that allowed mobile operators to use free w/o many restrictions, so by 2010, about 50 android based phones on market with 4% market share gain -android marketplace was gaining momentum; 2010 survey suggested 87% interested in developing apple apps, 81% android apps, 43% blackberry, 34% microsoft -iAd intensified comp between apple and google in 2010, allowing developers to include ads in the software

what connects routers are computers

-connected through cables, or wirelessly -at home cables are copper, long-haul cables use fiber optic lines -wireless is wifi or cell phone towers -wifi finds base station, local area network (LAN) w/ a copper cable -most big organizations have multiple ISPs; peering is when different network equipment connects to share traffic at internet exchange points

cluster computing

-connecting server computers using special software, networking links (local area network) them as one and computers work together to solve problems -distributed systems -encompasses IAAS and PAAS -load-balancing helps balance info -takes advantage of parallel processing power

alternative technologies

-consumer electronics since early 2000s (cell phones to tvs) were dependent upon functionality much like that of a pc -game consoles and phones reflected this; others worried, but jobs knew he could position the mac at the heart of his business and benefit

operating systems

-controls computing hardware -makes thinks easier for both users and programmers -some firms like Nintendo and Apple make their own operating systems, while some help other firms create their own or even help other firms create one (microsoft) -user interface is the way through which users interact with a computing device, often looks different -support programs (like finder and windows explorer) help navigate control panels and storage management work with hardware -OS are given a set of commands to interact with the hardware, make programming easier (easy to use IPhone catalyzed netwrok effects)

Cost of Ownership and Tech failure

-costs in every which way -mistakes ripple -firms need to constantly support the organization (training, feedback, audits, data backups, planning for disaster, and managing security) -firms spend 70-80% of money to keep IS running

apple inc in the new decade

-couldn't argue that apple had successfully evolved from a PC manufacturer to mobile devices, mostly thanks to jobs who changed the rules -capitalization approached $220 billion in spring 2010 surpassing IBMm HP, Cisco, Intel, and rest of tech except microsoft, it was easy to see apple would not be easily derailed

Leverage distribution channels

-create or control your own distribution channels; for example, apple created their own distribution channel, java bundled with netscape so their computer script could be more widely used

Tech and the rise of walmart

-created and leveraged data to achieve world-class supply chain efficiencies and the #1 retailer in the world -Walmart is responsible for 12% of productivity gains in the US economy -senior IT executives have been snatched up for roles at Dell, HP, Amazon, and Microsoft

open source linux

-created by Linus Tovalds in 1991, revolutionizing operating systems -now, it's found essentially anywhere; cell phones, stock exchanges, tablets, supercomputers; supported by most web services, makes up 92% of amazon's cloud business; forms the core of Tivo OSes; underpins google's android and chrome offerings -described as free (free/libre/open/source/software), although not entirely (TCO); essentially anyone can look at and change it -stark contrast with conventional software practices (proprietary), who refer to it as "socialism" or "cancer" -not just software nerds, but bit name firms like facebook and IBM -many are working together to set new standards

Ways Zara uses tech to predict what to bring to stores and how to do so efficiently

-customer surveys (managers motivated since 70% of income comes from sales) -point of sales system: aka POS: transaction processing systems that track inventory from customer purchases -60% of merchandise is in house, and production time is lowered through tech reducing error and speeding up tasks -inventory optimization models determine how much of each product is delivered to a store -RFID: radio frequency technology security tags track products with a unique code that is easily reassigned -software creates effective schedules for employees -omnichannel allows customers integrated set of sales, shopping, and return experiences (online store, storefront, etc) -key is their information system effectively combines software, data, procedure, and people interacting with the system

how bad data can affect the economy

-data deception lead to the 2008 financial crisis -computer models can't handle black swan situations; collapse of long-term capital management when an unexpected Russian crisis led markets to lose 90% of their value in less than 2 months

the software industry

-defining the industry is difficult, but it has among the best economics of any industry -the marginal economics are essentially zero -software firms can establish and new standard for the industry through network effects and switching costs

DBMS additional

-different than database; a DBMS is a licensed software program, while a database is a collection of tables, relationships, and metadata Software -> Use: excel -> spreadhseets DBMS -> database, database apps

P2P (peer-to-peer) system

-distributed structure that partition takes between peers -equal participants to a client-server structure -p2p structure is more robust -each peer provides its own resources including bandwidth, storage space, and computing power (oppose to client-server structure)

Problems with packing pathways tighter

-each new generation cranks out more chips per silicon wafer (a thin circular material used to create them): electronics travel shorter distances, 2x as fast; creates problems with size, heat, and power

satellite wireless

-early on, could be download or needed antennas -geosynchronous earth orbit (geo) satellites circle the earth at a distance = to its circumference; high delay from this length -O3B (other 3 billion) trying to overcome the 3 billion who lack access to the internet, middle earth orbit satellites circle closer to earth and orbit faster than earth; risky, but not unheard of (onneweb, spacex) -google's project loon delivers internet to rural areas through balloons in space -facebook's project aquila swaps balloons for solar power drones -wireless is expensive and 85% of users use pay as you go plans, so it will be difficult to get people to adjust

Internet Serivice Provider (ISP)

-ensures messages can get to any computer online, exchanges traffic, connects computers -provides software to send messages, often requires users to pay a fee; verizon, comcast

Barriers to Entry, Technology, and Timing

-enter doesn't mean survival, and new firms can always overtake -key is what firm doesn't with timing AND tech; create differences (Think google and apple through strategy, monitoring landscape, recognizing rivals, reacting to challenge) 1. brand 2. patents/regulation 3. distribution channels 4. capital intensity 5. switching costs 6. network effects

mobile and embedded devices

-entered space to become platform for digital and mobile applications, created opportunities for software platforms to increase communication and content sharing (important to consumers and enterprises) -lack of consumer homogenity meant devices with incompatible devices, and battle with ODMs and carriers -offered variations of windows operating systems for personal digital assistants and mart phones -since microsoft so dominant with PC, ODMS unsure about mobile version of windows; microsoft partnered with t-mobile, vodafone, verizon, cingular to promote OS -established alliances with contract manufacturers like high tech computer and mitac -phone OS windows moible 2003 appealed enterprise because integrated with office and outlook -competed with symbian, palmsource, and other linux based operataing systems -symbian supported by nokia, panasonic, ericsson, and samsung -symbian allowed customers to customize interface, but microsoft had more standard OS with little customization; symbian market leader with 81% shared, but most business from palmone -in Q4 2004, microsoft surpassed palmsource first time for smart phone OS shipments, 9.7% market share

why not just use excel for data?

-excel is meant to store less thousands of rows of data, whereas microsoft access can manage about a million -commercial databases can store several billoon

health care and U.S. tech

-expensive and prone to errors -"screening sheet" combines info with AI and system makes recommendations -can help with prescriptions -apple's healthkit and researchkit gives people access to their own health

microsoft grows up

-federal court judge ruled in 2000 that microsoft was a monopoly; was able to resolve and join the DOJ antitrust action -brad smith resolved most of 24 legal issues, costing 5 billion, but built relationships with gov. and business organizations -2004 European commission found guilty of antitrust bc of digital media player market; had to pay 600 mil fine and offer windows without media player -microsoft learned to be more careful in legal situations and hired more legal staff -increased dividend to shareholders and stock buybacks

apple in the personal computer industry

-first usable "personal" computer devices was apple, but IBM brought pcs mainstream in 1980s -new standard (wintel) in 1990s dominated industry -manufacturers, like dell to no-names, built computers around wintel standards; growth meant lower prices and more capabilities -industry grew even more in 2000s, carried by internet demand and chine and middle east emerging as markets; more than 1 billion pc users by 2010 -revenue failed to grow with volume; pcs faster with more memory and storage, average selling prices declinec capr of 8% per year from 1999-2005 -cpu prices dropped faster, at a rate of 30%; pc manufacturers average profit margin fell below 5% -standardization meant R&D spending cut; dell leader in pc making industry, was spending 1% -taiwan and china manufacturing became more popular, design and testing -new pc product emerged; more expensive computers gained traction late 1980s; 2 decades later, portable pcs represented 57% worldwide pc shipments, expected to reach 70% by 2012 -lower prices meant higher sales volume; asp for a laptop $544 by end of 2009, half of what it was in 2007 -sub-category of mini notebooks took off during global economic downturn 2009; sold for around $400

Glow Cap

-flashes every time you need medicine, sends report to you or doctor of your taking patterns, alerts pharmacy; cheap or even free because a lot of debt goes into the fact that so many patients miss their medicine; developing a chip that can go inside a body and identify illness

benefits of SaaS

-forgo costs of installing and purchasing software (thousands->millions increase over time); IT savings of 25-60% -SaaS are a variable expense in that they are flexible and decreases risk by paying more or less depending on what the firm needs -Saas benefits from economics of scale by having a variance of skill sets through a variance in customers; push vendors to adapt new tech -highly scalable: different workloads at different times; service level agreements guarantee ability to meet demand spikes -greener; better designed data centers, designed for computers, not people -software developers operating SaaS see benefits -SaaS firms have higher feedback loop, accessible and quick enhancements -30% industrial software price tied to cost of distribution; save money going to customers directly -SaaS is global; available to anyone with internet connection, highly specialized markets, "vertical niches" -counters software piracy

Early Microsoft Years

-founded by Bill Gates and Paul Allen founded microsoft in 1975 -first product was a BASIC programming language for first PC -big break came in 1980 when IBM asked Gates to provide operating systems for their new PC; so Gates bought one from another programmer and called it MS-DOS that only worked with intel microprocessors; 85% of market shared and sales over $100 million (key was licensing model) -tried to expand beyond MS-DOS and started working on graphical user interface windows; 1.0 out in 1985 -also started working with IBM on totally new OS/2 -originally seen as an imitator for applications from independent software vendors -largest success in 80s besides OS was writing applications for Apple OS; helped develop windows

limitations of iphone

-had critics; restricted market to AT&T, since AT&T had spotty service and access to data -some bought ipod touch and stuck with t-mobile or verizon -no keyboard, battery life short, can't add memory, didn't have flash tech

Microsoft's Challenge in 2005

-had slowed down after two decades of spectacular growth in revenues, profits, and stock -Windows and office were growing slowly in revenues and profits -competing software, like Linux, and google rising in popularity were posing new threats -strongest balance sheet of any company in the world, committed to aggressive reinforcement of it core businesses like operating systems, web services, and new businesses like xbox -settled many law suits by 2005 -main challenge: reposition for modern times; were seeking to look for opportunities with network externalities (large market shares) -goal was to be worldwide leader is software, services, and solutions to help business people -Ballmer as CEO: would these efforts allow microsoft to repeat its previous successes or would the future be full of new leaders

data leveraging

-lies at the center of competitive advantage -much like regular resource based competitive advantage: imperfectly imitable, lacking in substitutes, valuable, and rare -move early, differentiate; no monopoly in data

clouds and tech industry impact

-hardware markets threatened by the cloud; server sales of IBM fell 20-30% in recent years -every dollar into cloud computing, several from IT markets -Moore's law has made servers cheap, but operating cloud computing is still somewhat expensive -can accelerate innovation and change skills needed for IS workers; make money for strategic innovation -IT changing; skills for hardware and maintenance decreasing, more business focused and more durable -low costs decrease barriers to entry; sophistication lowers development time; cost to start internet company fell from $5mil to 2000 to $5000 in 2011 -major computing vendors have server farms in region and diverse infrastructure protects against disaster -cloud industry vendors are computing industry's biggest customer -allows scalability -piracy is difficult (EA)

IT and supply chain performance

-has a positive impact on supply chain performance (reduces costs of buying and selling; sourcing, buying, and coordinating are much easier, reduced bullwhip effect) -can be used for demand forecasting (optimizing inventory sales and costs) -improves delivery scheduling (just in time delivery)

microsoft's biggest threats

-imitation -hold-up: litigation -market saturation (geographic expansion, diversification) -substitution (JAVA, non-pc, free web apps, new entrants) -security

solutions for small and medium sized businesses

-in 2000, microsoft changed their strategy to look into SMB segment of business (4.2 bil) needed software -competing with SAP, oracle, peoplesoft, siebal systems -Microsoft business solutions aimed for 10 billion in revenues by 2010, offering platform of tech fo third party partners to build -vertical strategy SMB products -2 billion marketing since 2000, increased revenue 556 to through Q3 05, lost 4 million Q4 -many said business application market consolidating (oracle acquiring people soft, microsoft and SAP maybe merge) -2005 microsoft announced destructuring of sales organization, wanting second sales group to better support SMb busines model; customizing specific industries

understanding network structure/types of markets

-in order to understand the source of a product's value, you have to understand the structure of its market -one-sided market: a market that gets most of its value from a single class of users (texting); same side exchange benefits come from members of that class -two sided market: a market that gets its value from two categories/classes of users. both categories are needed for value to be added (video game users and developers); when an increase in users creates and increase in users in the other side, it is a cross-side exchange benefit; can have same-side and cross-side

Chip shape and helping Moore's law

-instead of being flat, the chips can be 3D, which boosts their speed and efficiency -transistors: chips that work together to store memory

ICANNN

-internet corporation for assigning names and numbers -non profict org for setting internet standards -.com little restrictions; .edu acredited secondary educationn institutes -sTLDs: sponsored top level domains -ccTLDs: country code TLDs -geographic TLDs

Dell's Supply Chain

-involved suppliers from around the globe, pushed suppliers for just-in-time delivery, low inventory meant low costs, practices demand shaping to manage inventory (u kno)

Jobs and Apple Turnaround

-jobs appointed interim CEO september 1997 -august 1997 apple had announced microsoft investing 150 million in apple, 5 year commitment to bring microsoft office to mac, but jobs halted immediately; 99% who bought clones existing mac users -refused to license mac OS -15 product lines slashed into 4 -hired taiwanese contract assemblers to manufacture mac products, revamping distribution system -launched website 1997 for direct sales -increased spending on R&D and pared down inventory -imac august 1998; $1,299 all in one; colorful translucent and eggshell design- supported "plug and play": printers designed for windows based machines -imac helped apple outpace industry average for first time in years; 309 million profit in 1998, reversed 1 billion loss -jobs wanted apple to be a cultural force, retained position as CEO of pixar that he bought in 1986, used campaigns with slogans like "think different" and "it just works" -hip; popular fashion magazines -goal was differentiation

Zara's imitation resistant value chain

-key is vertical integration (own several layers of their value chain): 300 designers at "the cube" design over 30,000 items a year, average time from idea to appearance is 15 days, 60% produced in house, own 40% of their own fabric and produce most of their own dyes, effectively coordinating the 17 million items delivered in their two times a week deliveries from distribution centers, purposefully manufacture few of the same goods which motivate people to buy immediately (85% sells at full price), stock based on location, spend little on advertising because customers visit frequently -by targeting right points on value chain, it pays off

the ipad

-launch of ipad in 2010; priced 499 to 829 -featured 9.7 inch LED screen; could connect to AT&T or wifi -developers had released over 1000 applications by time of launch -jobs took more control of ipad components, buying two microprocessor design companies between 2008 and 2010, so ipad became first apple product to run on its own chip, the A4; desinged for next gen mobile devices and required low-power and fast processing speed; apple claimed ipad had 10 hours battery life -450,000 ipads sold first week on market; jobs claimed change world, but still no guarantee; no keyboard, no flash, no multitasking -jobs announced new iphone os 4 enabling multi-tasking, that would be more available for ipads later in the year -biggest debate being usage model; would it replace kindle? jobs said reboot consumer behavior -relationship with publishers; with books and publishers, apple allowed them to charge as much as they wanted -hype caused other companies, like HP, to announce their tablets in 2010

apple app store

-launched 2008, key factor in iphone's success -software apps and PDAs for phones around for years; palm inc leader in 90s, and microsoft had written 20,000 apples for its mobile OS, but could only be downloaded through multiple outlets with average price of $10 or more -app store was first that made it easy; download apps or PC for free or paid for around .99; introduced as part of itunes, which users already familiar with -3rd party developers welcomed since made downloading so easy -in 18 months, 4 billions applications been dowloaded by iphone and ipod touch users worldwide -185,000 applications offered in 20 categories, variety -a bulk of $4 billion spent on mobile apps in 2009 spent on iphone apps, exlucluding developer's share, left apple with about $1 billion

benefits for SaaS

-limit development to a single platform -ability to instantly deploy bug fixes -lower distribution costs -reduce software piracy mac vs pc joke haha

the next big thing

-looking for growth in other strategies including research-driven innovations, mergers, intellectual property in patent portfolio (june 2004, demonstrated many future technologies) -possibly would lead to new industry standard through things like connected car technology, windows automotive technology, which were praised, but things like smart personal objects (extender of MSN direct) but not significant impacts -historically, didn't license tech often, but created patent licensing program 2003, hired senior executive from IBM, generating 100 possible patent deals by 2005, announcing microsoft IP ventures to license tech and focus on entrepreneurs and small businesses -gate and ballmer wanted to protect windows and office, fend linux/open-source, attack sony, IBM, Nokia/Symbian, Intuit, Siebal Systems, Google, Yahoo -confronted these challenges by use financial and intellectual resources, new standards, emulated competition, bundled solutions, and marketed those with existing products

Stradding

-low-margin storefront, high-margin delivery (not benefiting from either) -essentially, marketers adapting a positioning strategy to put their product in two categories simultaneously

storage hardware

-magnetic disks (hard drive): maintain contents without power and serve as storage devices -optical disks (CDs and DVDs) -magnetic tape (same as magnetic) -flash drives: nonvolatile and solid state (more robust than moving parts)

total cost of ownership of software

-maintenance -support -training -compliance auditing -security -backup -provisions for disaster -software development -purchase price -ongoing license fees -configuration -testing -deployment

creating software or nah

-many firms choose to buy software instead of creating their own because that is costly and time-consuming -enterprise resource planning packages have multiple functions -can add more over time and mix and match functions

marriott vs air bnb

-marriott had the same amount of places as air bnb in 88 years vs 4 years; technology is the difference -tech "disrupts" traditional economy in this way -accounting=language, tech=enterprise

linux on desktop

-more complex, so very little of it is on desktop computers, raising TCO and decreasing 3rd party development

operational data can't always be queried

-most transactional databases aren't set up to be simultaneously accessed for reporting and analysis -tracking who bought what is easy, but if they system is asked to track historic trends, it could be too much -AirBNB: 150 data scientists crunch 15 perabytes of data daily to perfectly suggest price for a stay -firms can separate data repositories for their reporting and analysis that act as a staging are to turn data to info

barriers to entry through network effects

-new entrants must be very desirable

solid state electronics

-no moving parts -benefit of chips is this, less likely to fail and access data faster -think Moore's law

emerging markets and foreign governments

-north american, european, and japanese matured, so growth in emerging markets -2005: gov agencies started investing more in tech, and in some places, tech decisions shaped their market for software -gov threatened to go to linux is microsoft didn't improve pricing -microsoft tried to combat by improving windows and office to address emerging markets needs, like windows xp starter edition -price points were 36, but some gov paid 2.50 per license -some buying linux machines/pcs and downloading pirated versions of windows -2005 announced windows genuine advantage program, discontinuing noncritical updates for pirated copies -2004 piracy estimated 29 billion cost, US 6.5 billion

make, buy, or rent

-not binary options for whole organization in all situations -competitive advantage: do we rely on unique processes, procedures, or technologies that create differentiating competitive advantage? if yes, then these options not best -security: are there unacceptable risks with the software? is it trustworthy? is it safe for both offsite and on-site work? -legal and compliance: is our firm allowed to use tech? are there legal requirements related to this? -skills, expertise, and available labor: can we build it? -time: do we have it -vendor issues: is this vendor reliable

home entertainment devices and content

-november 2001: entered $20 billion tech industry with xbox; internet access, play CDs and DVDs, MP3s, 3x processing power of computer consoles -industry becoming mainstream form of entertainment -opportunity for growth and helping in converging a digital world where home devices were integrated using microsoft software -pursued vertical strategy when entering industry; sold hardware below cost, wanting to achieve high margins from software sales -costs $20 mil per game; acquired small game studios and game developers; focus-group research, game development kits -often charged $10,000 for info -invested billions; sold 1.5 million in christmas 2001, so successful depressed profitability final quarter 2001 -June 2005: forecasted to have installed base first-generation of 22 million, #2 in gaming market -offered xbox live, breakthrough in may 2004 when electronic arts changed mind and started developing content for xbox live; use base of 1.6-1.8 million by june 2005 -new gen: xbox 360 and PS3; xbox 360 used an intel processor and custom IBM processor, graphics supported by ATI; gates wanted xbox to be entertainment center for everything, but changes made this problematic -still wanted digital home: media center PC; single living room device that could connect to Xbox, successfully enlisted largest content providers to use its rights management products

organizational changes

-numerous key senior executives left the company; left because microsoft had become stagnant -gates and ballmer had challenge of keeping culture; conflict within every decision -centalized nature of decision making worked well for microsoft, though by 1999 five layers of management caused complaints from employees -ballmer raised salaries in 1999, though stock falling and turnover still high -moral started to improve by 2001 -2003 switched from stock options to restricted stock awards -some said would discourage entrepreneurial talent, though surveys said otherwise -ballmer CEO 2000, market capitalization was 600 billion but half by 2005, ballmer knew too centralized -divided operations into 7 divisions and profit and loos accountability for each -started focusing on enterprises, consumers, and small and medium-size businesses -every systematized

walmart's challenges

-older, needs to find new market or savings to boost profits and move stock higher -target for criticism; magnet for unions -suppliers face catch-22: large market, low prices

open vs closed standards

-open standard companies, like android, allow any company to use their technology "open market" -closed standard companies (proprietary), like apple, allow a company to retain ownership and control their software, but the network might be restricted (1 manufacturer)

Microsoft software for the PC

-operating systems stayed centerpiece of strategy in early 90s -windows 3.0 was preferred IBM-compatible computers; allowed MS-DOS programs to run, as well providing easy look of mac os2; allowed windows and MS-DOS to be complementary products -some sales came from original equipment manufacturers (OEMs) who pre-installed programs on computer's hard-drive, only cost was shipping master copy to each OEM -first desktop OS with gui was windows 95; encouraged users to upgrade with added features, costing a half-billion to develop -5 years and 2 billion for OS3 -half a million per year for engineers to support independent software vendors that wrote applications for OSes -another key feature being frequent upgrades, millions to develop instead of billions for new release -upgrades became important for security and performance, user upgrades went from 32% to 75%

Application Software

-operation systems are designed to create a platform for programmers to write more applications, which broadens the computer's ability -application software performs the work that users actually want to do, so the more, the better (network effects)

Mickey's Wearable Magic Band

-parky entry, room key, connected to credit card for purchases -MyMagic+: web/mobie usage allows for scheduling rides, GPS maps, FastPass -data for credit card in anonymized and encrypted, and allows a limit for spending -allows for customer delight as well as efficiency -data helps with staffing, stocking, minimizing customer frustration -spent over 1 billion -Moore's Law allowed for this innovation along with its benefits, and even allowed for decreasing manufacturing costs from $5 to $30 -a lot of conflict between groups and outside companies, but CEO's leadership helped -in the future, b-day greetings, animatronics can call out name, etc

registering a domain name

-pay for the right to a particular domain name through web hosting services -often competitive and pricey; auction format

apple: buyers and distribution

-pc buyers fell into 5 categories: home, small and medium sized business (SMB), corporate, education, and government -home consumers represented most; nearly half on worldwide shipments; cared about price, but also mobility, design, wireless connectivity -businesses balanced price with service and support -education buyers needed software availability -shift in distribution in early 1990s when more knowledgeable pc customers moved away from full-service dealers and started buying directly from the manufacturer, while home and SMB started buying from superstores like walmart and costco -white box channel (generic machines assembled from local entrepreneurs) represented about 30% of market 2009, mostly to small and home office

new form factors examples

-philips fluid, rolltop laptop mode, rolltop carry mode, sixth sense

utility computing (PaaS and IaaS)

-platform as a service: delivers tools for an organization to test, develop, and deploy software (programming languages, database software, OS, etc) -infrastructure as a service: offers more bare-bones alternatives to physical hardware (storage, computing, networking resources) that are allocated over the internet; basic offerings, more customizable; -further down=more supports

Virtualization: software that makes one computer act like many

-possibly most important tool in hardware industry, like an operating system for operating systems -can create smaller compartments in memory and allow each to behave as its own operating system and resources -key benefit: firms can stop buying separate . servers for each application they want to run; save money -many server computer run at 15% less than max capacity; centers w/ virtualization increased 80% efficiency; cost cuts and green -can power down if not being used, and if need more, data can be transferred -containers; type of virtualization allowing apps to share O.S. -can allow firm to reorganize hardware if need -virtual desktops allow are server to run what amounts to a copy of PC-OS applications and deliver and image from PC to other devices; allows a scale-up, back up, and upgrade systems more easily -windows is virtualization; dell-involved, xen, docker

operating systems as an interface between hardware and users and applications

-processes key strokes and mouse movements -sends signals to display monitor -reads and writes desk files -controls processing of user applications -responsible for managing and coordinating tasks and sharing the computer's resources (user applications OS interface, scheduler & resource manager, file systems & network protocols, device drivers computer hardware)

wireless

-provided in towers -wireless spectrum: airwave frequency space; licensed, high competition = high prices -need bandwidth; network strain within single networks -fastest right now is 4G LTE; download 40mps -speed of 5G depends on carrier upgrades

machine to machine communication

-sending and receiving of messages between machines -internet of things expanding this and tech rapidly

Apple moving behind the macintosh

-shift towards the digital hub strategy was implemented by the debut of the ipod in 2001, the iphone in 2007, and the ipad in 2010 -company name changed from apple computers to apple in 2007

Paas and Iaas risks

-similar to Saas; much like architecture, code is in-house and complex, so it's difficult for others to install and so there are a lot of new companies being developed -firms considering need financial analysis; high-volume, low-maintenance makes sense -be cautious; one mistake by vendor could be detrimental

apps and app stores: further disrupting the software industry on smartphones, tablets, and beyond

-smartphone sales surpassed 1-billion per year; apps are main use -app have advantage over packaged software and browser alternatives; always open, cheaper distribution, more interactive interfaces, apps can integrate w/ OS, background upgrades, businesses need apps for customer engagement (many leverage apps for customer impulse orders), leverage tools to guide customers -apps lock a user on a platform; need software developers to create a package using developer tools -disadvantages: bug requires re-installment and could linger, A/B . testing requires more than 1 app, usage policies, crowded app store

security

-software industry dominated by emphasized features, but microsoft struggled when security threats became prevalent -started as harmless hackers, turned into viruses affecting users, pushing microsoft to change business processes, investing time in money in avoiding security threats -2004-05: attempt to acquire security software from companies like giant software, gecad, and sybari -created 5 year plan for a host-based security platform for its desktop and server OS -people weren't sure about security software from a company whose software was being fixed

writing software

-software is written in programming language -C++, C#, Objective-C -Visual basic (microsoft) and java are popular -uses cause vary in preference -constantly evolving (apple and swift) -languages are extended by frameworks, simplifying common tasks, reducing error; easier for developers

data mining

-some data is so large, it is hard/impossible to spot trends -data mining is a process of using computer to find different patterns -customer segmentation: figuring out with customers are most valuable to the firm -marketing and promotion: identifying which customers will respond to which price -marketing basket analysis: determining which customers buy together -collaborative filtering: personalizing an individual's customer experience based on trends from similar customers -customer chain: determining which customers are likely to leave, and how to prevent it -fraud detection: uncovering consistent criminal activity patterns -financial modeling: building trading systems ti capitalize on historical trends -hiring and promotion: characteristics consistent with typical employee's success

Online Analytical Processing (OLAP)

-sourced data from relational databases -calculated and summarized in advance -multidimensional; stored in data cube -can be 1000x faster -allows data to be compared across multiple factors/points of view -data is easily queried and extracted -enhances business intelligence -enables users to perform ad hoc analysis

BI toolkit

-spreadsheets into data mining packages with experts -goal of query and reporting tools is to support users with selected, sorted, ordered, calculated and compared data

Challenges of AI Machine Learning

-starts with "naked algorithms"; public domain or accessible from cloud providers of APIs -data quality -not enough data -tech staff needs training -"change management" -prohibited data -negative consequences of misuse -hardware monitored -competition in data (move early, be scalable)

supercomputers

-supercomputers are among the fastest and the most powerful tech in the world at the time of their production -in the past, the government had access to them, but now they are extremely useful for businesses -for example, united airlines used one to increase their number of flight patterns significantly

suppliers, complements, and substitutes

-suppliers fell into 2 categories: product makers of memory chips, disk drives, and keyboards with many sources (widely available at high prices) and those that made microprocessors and operating systems (intel and microsoft) -microprocessors: cpus; brains of computers; intel commaned 80% of cpu market; competition in 1990s from advanced micro devices and via technologies, but intel remained leader with tech, manufacturing scale, and powerful brand -cpu prices adjusted since 1970, dropping by an average of 30% per year -operating systems: software that managed PC's resources and applications; microsoft dominated since IBM P C in 1980s; 90% of pcs in the world ran on a version of windows; big hit was windows xp; sold 17 million copies in first 8 weeks; developed for 1 billion $45 to $60 per copy; Vista did not fare as well (sluggish performance and didn't want to upgrade), but windows 7 had strong reviews, spent 1.5 billion in development and 1 billion marketing, shipped over 60 million units in first quarter, 7 billion in revenue, fastest selling OS in history -application software, content, and complementary products: value of a computer correlated with these things being available on their platform; key app software included word processing, presentation graphics, desktop publishing, and internet browsing; since 1990s, # of apps for pcs exploded, but asps for pcs collapsed; microsoft largest vendor for software for wintel pcs, and second for macs behind apple; hardware wise, printers and multimedia devices etc helped

3 components of a database

-tables or files: primary keys uniquely identify rows (aka records), columns (aka fields); each table has one theme, think registration example -relationship among rows in tables: primary keys and foreign keys allow relationship (relational databases use foreign keys to represent relationships) -metadata is data that describes other data: format depends on database software; field properties describe formats; makes databases more useful and easier to use

Tech helping escape poverty

-tech is becoming so cheap, more and more people around the world can afford phones especially. -for every 10 phones for 100 people, that country's GDP bumps up 0.5% -phones helps with things like farmers who suffer from information asymmetry and lose money, mothers who need to be able to check info on phone, etc -in Kenya, people easily transfer money though text using M-PESA

ways to accurately data mine

-test its accuracy by dividing data, building models with that portion, then use the other portion to verify -just because data is consistent now doesn't mean it's collected consistently -a pattern may show, but determining the best response can be tricky -info tech + statistics + business knowledge

internet 101

-the internet is a series of millions of networks -there is no center; it is meant to be redundant and fault-tolerant -took off in 1990's; supported by private firms

DNS

-the internet's phonebook -domain name service -distributed data base that looks up host and domain names, returning actual IP addresses for computer communicating -computer doesn't know address, finds service on DNS resolver, finds IP address, connects to root namesaver, finds right one, responds to resolver with IP address; ready to communicate -system remembers info and will remember a cache

walmart's data mining process

-uses data mining to track inventory; for ex, during hurricanes -operational forecasts; cashiers, data cafe provides managers with central clearing house for data driven problem solving) -leverages Hadoop based data to support data efforts through social media; purchases Kosmix to deepen social and big data experience at walmart labs

the ipod sensation

-the ipod set apple on its explosive growth path -became an icon of the digital age thanks to its design, simple user interface, and large storage -first one stored 1000 songs and cost 399 -apple held more than 70% mp3 market in U.S. -ipod nano had gross margins of 40%; biggest component was flash memory -apple knew flash memory was important, so payed $500 million up front to intel and micron in 2005 to secure a lot of their memory output, eventually became one of the largest purchasers of flash memory in the world -approach to developing and marketing the ipod was more open than its strategy for the macintosh; the ipod could sync with both windows and max -also, through accessories for the ipod, apple built and ecosystem of product; for every $3 spent on an ipod, $1 add on, add through the made for ipod program, earned 5% for every product -the touch was premier ipod product line released in 2007; had built in wifi, a 3.5 inch screen, and a multitouch graphical interface -35 million sold by april 2010 -ipod asps ran $50 to $100 higher than competition; rivals like sandisk, creative, and samsung all had a market share below 10%

apple's occasional failures

-the mac mini was one of two that failed; $599 entry level desktop without keyboard or mouse; consumers could get more functionality from windows for a lower pric -apple tv introduced in 2007, didn't do well so management referred to as hobby

net neutrality

-the principle that all Internet traffic should be treated equally by Internet Service Providers -google supports: "broadband carriers shouldn't be able to control activity online."; really, they worry without it, ISPs will block their content or favor rivals -limits opportunity for start ups -the internet is a utility, ther is 0 meaningful competition to provide utility to America; all internet providers should be treated equally and FCC is ineffective -little incentive for motivation -telecom accuse google of piggybacking -ISPs complain of increasing bandwidth demands

recycling tech

-there is a disconnect between wanting to do good and actually doing good (complex value chains, international laws, there are people who put profit above principle) -process of separating tech to be recycled in labor intensive -80% is sent abroad -organizations like the Silicon Valley Toxics Coalition, Basel Action Network, and Greenpeace are organizations that show the conditions of these e-waste facilities -many firms are targeted and exposed by these companies, apple is considered a greener company; this targeting works because firms try to eliminate major toxins from manufacturing

gamification and psychology

-through gamification, we understand that gamifying things provides -incentive and can pay hude dividends through human's natural psychological desire to achieve and rationalize -online games teaching kids about cancer, fold it story

the iphone

-time magazine called the iphone the invention of the year, represented apple's desire to reinvent the iphone -2.5 years to develop iphone, estimated cost of $150 million -risky: dominated by nokia, motorola, and samsung with 60% market share -starting in 90s, industry preference was friendly interface and attractive hardware designs, pushing towards multimedia functions -the iphone, with its 3.5 touchscreen, efficient OS X platform, and intuitive use changed the rules in industry -first model was $499 for 8GB; at the time, handsets costing over 300 only accounted for 5% of worldwide mobile phones sales -AT&T agreed with an unprecedented revenue sharing agreement with apple, giving apple control of distribution, pricing, and branding -first gen sold 6 million in 5 quarters; but more than a million over grey market, where consumers bought iphones from unauthorized resellers and used them on unsanctioned mobile networks; could eventually cause apple to lose $1 billion over 3 years from loss of service share revenue -second model released 2008, faster 3G; revamped pricing model with AT&T; subsidy on phone for dropping revenue sharing agreement, so consumers bought $199 phone for two-year contract, while unsubsidized phone cost $599 -revenues exploded in 2009 to $13 billion -iphone 3GS on sale June 2009; subsidized version dropped to $99 -ASPs for Iphones $563, while competitors $300 to $400 -falling component costs helped reduce cost structure, bill of materials for newest 16GB model under $180, while first had half of storage and cost $220 -lower prices and wider international distribution fueled sales, while AT&T benefitted from being exclusive iphone carrier, generated average revenue of $95 with iphone, while other carriers $50 -within 3 years, iphone went from 0 to 30% of apple's total revenue; captured 14% of market

PC manufacturers

-top four pc vendors (hewlett-packard, dell, acer, and lenovo) accounted 55% worldwide vendors -hp had comeback in 2002 when acquired compaq computer; 3rd largest tech company... servers and storage; 2/3 pcs outside of US; 11,000 retail outlets -dell struggled; direct sales and build-to-order manufacturing was a hit to market, yet late to catch consumer boom.... michael dell returned ceo in jan 2007, pushing for consumer friendly products, re-entered retail distribution, and pushed international expansion; still struggled with cost controls and poor margins... only top four to lose worldwide market share -acer benefitted from acquiring high-profile US pc brands; taiwan based; bought gateway in 2007, becoming third largest pc vendor in the world; also bought pb, who had strong presence in europe (acer also leading brand there); worldwide pc shipments 22% growth 2009, fastest among competition.., notebooks and networks strength -china based lenovo similar strategy to acer; moved to front ranks in 2005 when purchaed IBM money losing PC business for 1.75 billion; strength was dominant position in china, 1/3 of market

semi-supervised learning

-training data includes a few desired outputs that may or may not contain labels -labeled data is costly, but unlabeled data is not, so more often than not, data is unlabeled -an example is a photo archive where some images are labeled and some are not -in semi-supervised learning, a machine can use guess based predictions about the data (unsupervised) to feed bad into the supervised learning training data, which then allows it to make predictions about the new and unseen data

examples of AI in action

-uber face recognition -delivery drivers optimize pickup/drop off schedules -automated phone service for customer service: wechat, Humana used cotigo to analyze reps with compassion fatigue -soft-skills of HR: SaaS workday provides software to improve employee retention by recognizing patterns; Pymetrics test candidates on 80 traits, using machine learning to determine best ones -robo-journalists: associated press and wordsmith, Los Angeles Times and Quakebot

UDP

-user data protocol -faster, and more reliable than TCP -focuses on speed over quality

PC vs Mac

-users were so reluctant to switch to mac thanks to network effects (more applications and supports from ISVs, more hardware and software compatibilities), switching costs (learning costs/training)

VoIP

-voice over internet protocol -phone calls through the internet are becoming more reliable -larger orgs use plain old telephone service (POTS) and data, which is expensive -olde phone use circuit switching, which is less efficient that packet switching -trade off between quality and efficiency

multi-tiered distribution system

-web server: software and its underlying that listens for client requests -application server: software and its underlying hardware that houses underlying applications -database server: software provides database services to other computing devices

how are network effects markets different

-when network effects are influential, competition looks different -early/fierce competition: is is important to be aggressive early on because once a clear leader is set bandwagons form -monopolistic tendencies: winner-take-all; one firm dominates, which is the natural state of the market -the more popular, the more bargaining power (apple > oligopoly) -it isn't about being better, it's about exceeding the value of switching costs, exchange (not easily copied), and complementary benefits

"digital universe"

-will grow significantly from 2019-2020 -big data is the torrent of bit with the data universe -walmart is an example of huge data, using 2.5 perabytes of data an hour

wifi

-wireless fidelity -antennas built in, but has to be in range of base of hotspot -base station range: 300ft, connected to a cable, DSL, provider -bluetooth: wireless tech replaces thinks like printer and speaker cabling -constantly upgraded -buy femtocell to overcome speed issues

examples of open-soruce

-wordpress: software for running a blog or website -firefox: web brower -libreoffice: competitor for office -Gimp: a graphic tool with similar features to photoshp -shotcut: video editing -audacity: audio editing -magneto: e-commerce softare -tensoreflow: machine learning software -alfresco: collaboration software tha competes with microsoft's sharepoint -marketcetera: trading platform -zimbra: email software competing with outlook -MYSQL: open source database -mongo DB, HBase, and Cassandra: non-relational distributed database software packages used to power things like FB, twitter, amazon -SugarCRM: customer relationship management software -docker: tools for containerizations -asterisk: implementation for running PBX corporate telephony system -Git: version control software -Free BSD and sun's opensolaris: open source version UNIX

6 waves of tech

1. 60's (big supercomputers restricted to gov) 2. 70's Moore's Law/development of chips 3. 80's PC's 4. 90's internet 5. 00's mobile phones 6. 10's tech is so fast and inexpensive it's every where

Buying time for Moore's law through size

1. Densely packed and overheating chips can be combatted by multicore microprocessors that allow 2 or more lower power processors to do the work and often outperform silicon, must be executed simultaneously (downside is writing code for these is very difficult) -video game consoles are very aggressive with this because it allows more to go on on he screen at once -Nvidia and AMD chips perform simultaneous calculations, which are perfect for AI and voice recognition functions

3 things that slow down Moore's Law

1. Heat: require chips to be cooled to prevent melting 2. Power: computers draw 4-5% of the world's power 3. Things can't get smaller forever

5 components of value chain

1. Inbound logistics: getting needed materials from suppliers into firm 2. operations: turning these inputs into products/services 3. outbound logistics: delivering products/services into markets 4. marketing and sales: customer engagement, pricing, promotion, transaction 5. service, maintenance, customer support (Doesn't always flow the same)

5 most important factors in profiting from innovation

1. Secrecy 2. Lead times 3. Sales skills 3. Manufacturing 5. Patents

Key aspects of Zara's business model

1. Zara wins with info: vertical integration, tech organized suppliers, just in time manufacturing, and finely tuned logistics 2. zara measures design differently: 300 young designers create 30,000 new items every year, quickly produce product, design teams, use data analysis to forecast fashion trends (POS, unwanted item pile, surveys) 3. Managing logistics differently: 40% fabric and most dyes made in house, clothes arrive undyed to shift with fashion (agile), 60% product in house, contract manufacturing only with things with long shelf life 4. zara managing operations: fabric cut and dyed with automated factories, fabrics stitched together with local businesses (creates relationship, easy to monitor, incentive for loyalty) 5. zara optimizing operations: software used to schedule staff baed on predicted volume, clothes ironed in advance, packed on hangers 7. zara manages logistics differently: 5 million square foot distribution center, 2.5 items a week, inventory optimization models allow to customize stores 8. zara managing sales and marketing: little advertising (0.3% budget), z-days, limited product 9. decision making: driven by data (POS), reported to cube, communication with manufacturers, product shipped to stores depending on demand

2 critical conditions of data mining

1. clean organization of data 2. events in data should reflect current and future trends

Why Open Source?

1. cost-conventional: traditional software requires customers to pay more for software that runs on increasingly powerful software, for example, provided up to $20 mil in tech savings for amazon 2. reliability: more people look at the program's code, so it is more likely that an error can be fixed; carnegie mellon study has shows linux has up to 20% better quality than commercial 3. security: many eyes=vulnerabilities; one experiment shows apple and microsoft were hacked, but Linux was not 4. scalability: allow a firm to grow from a startup to blue chip without rewriting much code and spending a lot on development costs; can be migrated and balanced for a server's workload 5. agility and time to market: can allow skipping steps of software development, so new products reach the market faster

DBMS 3 functions

1. create 2. process 3. administer examples: MS access, SQL server MS, IBM's DB2, Oracle, MySQL source

Risks of SaaS

1. dependence on a single vendor: if the vendor goes under, that's it, and they have all of your data, which could get out; you don't have hardware, software, or staff to handle 2. traditional software allows firms to stick with old stuff, but SaaS forces changes, could mean training costs 3. reliant on network connection; if it goes out, so does the whole system' 4. security issues: accessing from a remote location can be dangerous, some are not comfortable w/ date so accessible, different regulations in different areas 5. less flexible: not as many programming options, although less upgrades= less training 6. greater consumerization: employees can store important data w/o corporate approval; operational inconsistencies, legal/security concerns; however, can be good for creativity; introducing new tools, but requiring high level of engagement between managemnt, IT, and others

key learning objectives

1. describe what's happening in industry today 2. offer and intro to business and tech concepts/connections 3. durable concepts that will stay applicable 4. critical thinking

8 ways to create competitive advantage

1. developing a new product of service 2. enhance products or service 3. differentiate products or services 4. lock in customers and buyers 5. lock in suppliers 6. raise barriers to market entry 7. establish alliances 8. reduce costs (for ex, in apple, 1-4 were the responsibility of Steve Jobs, while 5-8 are the responsibility of the new ceo)

values of network effects

1. exchange: allows people to interact with each other. every product or service subject to network effects foster some kind of exchange; refers to the size of the network you can connect with (world of warcraft, fax machine, facebook) 2. staying power: long-term viability; people want something that will remain relevant; investment increases; related to switching costs (more friction, greater switching costs); being low-cost isn't always the answer 3. complementary benefits: products or services that add additional value to a network (software, IOS and complementary apps); people invest time to reach greatest benefit; platforms provide application program interfaces (guidelines published by firms that tell other programs how to get a service to perform a task, like amazon providing API's to let developers write their own applications) all 3 work together: exchange brings users, complementary benefits attracts firms, and staying power enhances strength

Secondary components of value chain

1. firm infrastructure: functions that support whole firm (general management, planning, finance) 2. human resource management: recruiting, hiring, training, development 3. technology/research and development: new product and process designs 4. procurement: sourcing and purchasing functions

cake layers

1. hardware 2. operating system (collection of programs that control hardware) 3. applications (range of end-user programs to apps) 4. users -flexibility gives computers customizations options and understanding helps managers make better decisions

server definitions

1. hardware: a computer that has been configured to support requests from other computers 2. software: a program that fulfills requests software relies on hardware

ways tech is used in different aspects of business/ its overall importance

1. marketing: study consumers, social media is key 2. HR: for hiring, for example, LinkedIn 3. accounting: calculations with accuracy/storing data -tech allows industry to advance quicker, jobs will continue to grow and are in high demand ($$), MIS builds connection between business and tech

tactical reasons to use a database

1. preserve data integrity (assurance that data is consistent, correct, and accessible; credit cards have 16 digits, but knowing which one begins with which is an example of metadata and can help with avoiding storing bad data) 2. eliminate data redundancy (unnecessary repetition of data that slows data processing) 3. limit data view (query, report) so that users only see what they need to see, as cleanly and clearly as possible (data forms allow read, insert, and modify data; reports show data in structured content; DBMS provide features for querying data)

Racing game example

1. racing games recharge aging brains 2. crowdsourcing tap citizen scientists 3. games train leaders for the battlefield of the boardroom through simulations (driving outcomes) 4. the average age of a video game purchaser varies

how do firms make money

1. sell, support, and consulting services: red had make $3 billion a year doing this; oracle sells ERP and database provides linux ability to bring customers away from microsoft; IBM makes more from services than hardware and software; MongoDB and Docker sell premium add-ons

potential problems with Zara's business model

1. since only two distribution centers located in europe, an natural disaster could cause major setbacks in production and sales worldwide 2. if the euro raises value, but the value of the dollar does not, zara will be paying more to produce, so they will have to raise prices to combat 3. although europe makes of 2/3 of the profit, there is also a larger market in China than in Spain 4. if the economy in europe falls, people will be looking for cheaper, and zara relies heavily on europe, so will have to focus elsewhre

data relevance

1. what do we need to compete in analytics and meet out future goals

data sourcing

2. can we obtain the data we'll need? from where?

.NET: An operating system for the internet

2001: microsoft largest number on new products in history, many part of .NET which was OS for the internet -microsoft knew world wide web would need web services that could serve as standard-based platform for interactions between computers -.NET costed 2 billion alone in 2001, but allowed different sites and programs to communicate to a greater degree than previously possible -delivered personalized experience -web services were an example of "middleware" that operated between an operating system and applications; common language/protocol to allow different apps with different OSes to communicate -eXtensible Markup Language (XML) was a new open-standard programming language, organizing data to be easily exchanged between devices; usually, each new system of enterprise apps required new set of rules, users, passwords, etc, but now, computers could access web service without knowledge about other apps or systems sharing info -decreased system integration costs -moved more of the "intelligence" aspect of business into the web service instead pf UI or back-end servers, diminishing value of servers and operating systems -.NET vs Java were leaders of this space -IBM and microsoft started web services interoperability organization to set standards for web service -partners on tech standards would compete in other areas (IBM vs Hewlett-Packard, Mircosoft vs IBM) -microsoft's strategy was convincing software programmers to use its tech, but programmers unsure; microsoft invested 2 billion to support developers, and promised .net would be compatible with ranges of programming languages, apps, OSes -would .NET make windows obsolete? needed to incorporate windows to .NET

data quantity

3. How much data is needed?

data hosting

5. data hosting

data governance

6. what rules manage this data?

android

86% worldwide market share, 66% US

analytics

A term describing the extensive use of data, statistical and quantitative analysis, explanatory and predictive models, and fact-based management to drive decisions and actions.

artificial intelligence

A branch of computer science seeking to create computers that mimic human performance on cognitive tasks. -found in chips, cloud-computing, open source, software development kits, etc -industry expected to grow from $2 billion in 2017 -to $58 billion by 2021 -85% of firms think they're using AI as a competitive advantage tool, only 20% do

Multiplexing

A form of transmission that allows multiple signals to travel simultaneously over one medium.

Apple

A hardware company first, but a majority of its revenue comes from products that didn't exist a few years ago, like the IPhone and IPad. -18% ipad, 13% mac, 2% ipod, itunes/software/services 9%, accessories 3%, iphone 55% (diverse)

dashboards

A heads-up display of critical indicators that allow managers to get a graphical glance at key performance metrics.

broadband

A high-speed (last-mile tech) of Internet connection that is always connected

Hadoop Distributed File System (HDFS)

A highly distributed, fault-tolerant file storage system designed to manage large amounts of data at high speeds. -80% corporate data is messy and unstructured -open source -half a dozen software pieces that are integrated together -supported by IBM, amazon, pivotal -morgan stanley uses to analyze data on a larger scale

heartbleed

A major bug in OpenSSL that allowed attackers to send malformed heartbeat requests to a server, which could respond by disclosing sensitive information like plaintext user names, passwords, and cryptographic keys -just because widely used doesn't mean don't audit to unsderstad strength and potential risks

DHCP (Dynamic Host Configuration Protocol)

A network service that provides automatic assignment of IP addresses and other TCP /IP configuration information.

Virtual Private Network (VPN)

A private data network that creates secure connections, or "tunnels," over regular Internet lines

data warehouse

A set of databases designed to support decision making in an organization -fast online queries exploration, large amounts of data from different OSes

Imitation-resistant value chains

A way of doing business that competitors struggle to replicate and that involves technology in a key enabling role; leverage resources to strengthen and make different for rivals to match

unsupervised learning

Category of data-mining techniques in which an algorithm explains relationships without an outcome variable to guide the process.

Semiconductors

Computer chips hard inside that either enable or prevent the flow of electricity

Expert Systems

Computerized advisory programs that imitate the reasoning processes of experts in solving difficult problems; mimics human experts

Porter's Model of Competitive Strategy

Cost, industry-wide scope: Lowest cost across industry Cost, focused scope: Lowest cost within an industry segment Differentiation, industry-wide scope: Better product/service across the industry Differentiation, focused scope: Better product/ service within an industry segment

forms

Create Read Update Delete example is google; reports show data in a one-time snapshot

The Nest example

Creates by Tony Faddell, uses Moore's Law to work with the weather and other aspects to decrease prices of heating and air -internet of things (low costs of tech allow it to be easily embedded into every day life)

data

Facts, figures, and other evidence gathered through observations -goal is to change data to information, so that data is presented in a context to support decision making

data aggregators

Firms that collect and resell data.

integrated development languages

IDE; application used to write code that includes an editor, debugger of errors, and more tools; compile code to turn instructions to simplified version for microprocessors

New Tech effects

Increased intensity of rivalry, partner with new entrants (virgin music example), substitution (discs vs digital music) example: internet allows for bargaining power, but doesn't affect all industry the same way

business intelligence

Information collected from multiple sources such as suppliers, customers, competitors, partners, and industries that analyzes patterns, trends, and relationships for strategic decision making (reporting + data exploration + data modeling + analysis)

The death of Moore's law

It isn't precise, or is more of an observance. -the key is more it to get faster and smaller, but it can only get so small -will likely disappear within my lifetime

KPIs

Key performance indicators measure strategic performance and are maximized by incentives structures (increase return/revenue, decrease risk)

hard-drive storage

Kryder's law: will this process accelerate or not -non-volatile

LAMP software

L- linux operating system A- apache web server software M- MySQL database software P- programming languages -powers many sites, from FB to youtube

machine learning

Leverages massive amounts of data so that computers can act and improve on their own without additional programming

microsoft's overall process

MS-DOS -> windows & MS-DOS -> upgrade -> servers -> SMBS, government, education (growth) -> more pc applications -> joined gaming market

Network Effects

Metcalfe's Law/Network Effects: essentially, the more that something is used, the greater its value, even if it's not as good as a less popular alternative (Facebook and OpenTable)

low-end disruption

Producing a low-cost product or service for the low-end or most price-sensitive segment of the market, and then gradually moving upmarket as the product or service improves its technology and processes.

canned reports

Reports that provide regular summaries of information in a predetermined format.

the last mile

The Connection between your computer and local ISP.

why buy software when you can rent?

SaaS: -application service providers and hosted software vendors -lowers costs: O.S., I.S., hardware, IT staff, maintenance -make $: subscriptions, advertising, upgraded premiums -salesforce.com is an example of enterprise customer relantionshio management, netsuite (ERP suite), workday (SaaS for HR), ServiceNow (IT infrastructure), splunk (analytics tools) -IBM offers SaaS version of cognos; oracle CRM on demand and purchased netsuite; SAP's business by design -on desktop: quickbooks, tubro tax, adobe google, apple

Move Early

Strategy for competing with network effects -being the first to do something in the market is one way to becoming dominant; although, sometimes fast followers can come in and outdo the original

SQL and its model

Structured Query Language -most common language for creating and manipulating databases -table of file: list of data -column or field: defines data a table can hold -row or record: represents a single instance of whatever the table keeps track of -key: fields used to relate tables in a database -primary key and foreign key: primary is one unique value, while foreign key is more than one value and relates different tables

SQL

Structured query language; used to talk to databases -can be used to create databases and its structures

SCM (Supply Chain Management)

Systems that can 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. -now ERP can be used more effectively to turn data to information

Bandwidth

The amount of data that can be transmitted over a network in a given amount of time -U.S. is ranked among worst in the developed world because it is expensive and not very fast

going private

The process by which all publicly owned shares of common stock are repurchased or retired, thereby eliminating listing fees, annual reports, and other expenses involved with publicly owned companies (Dell)

e-discovery

The process of identifying and retrieving relevant electronic information to support litigation efforts.

Incompatible Systems

This limit is a big problem for large firms that have legacy systems, outdated information systems that were not designed to share data, aren't compatible with newer technologies, and aren't aligned with the firm's current business needs. Made worse by mergers and acquisition.

ad hoc reporting tools

Tools that put users in control so that they can create custom reports on an as-needed basis by selecting fields, ranges, summary conditions, and other parameters.

URL

Uniform Resource Locator; a location or address identifying where documents can be found on the Internet; a Web address -when you type is, you're telling a computer what you want to di http://www.nytimes/.com/tech/index.html http: hypertext transfer protocol www.: host name nytimes: domain name .com: top level domain tech: path index.html: file

Quantum computing

Using quantum physics, bits can be both 0 and 1 simultaneously, doubling memory capacity. -19^94 bytes would become 442 quibits -models could be created to test the biological effects on drugs -predict weather -complete computer security

4 major operating systems

Windows, Mac OS, Unix, Linux -

extensible markup language

XML; allows software developers to create standards for data elements that can be sent from different computes, orgs, etc

hardware cloud

a cloud computing model in which a service provider makes computing resources such as hardware and storage, along with infrastructure management, available to a customer on an as-needed basic

database application

a collection of forms, reports, queries, and application programs that process a database -more than one application, and each one will have a different use -all process the same inventory stored in a common database -intermediary between the web server and the database -browser -> internet -> different applications -> DBMS -> database

Software as a Service (SaaS)

a firm subscribes to a 3rd party software replacing service that is delivered online; delivering end-user software to a firm over the internet instead of on the organization's software to a firm over the internet

commodity

a good that is sold across many companies but is not differentiated because it is somewhat of a necessity; water, milk, oj, etc; highly price focused

Hypertext Markup Language (HTML)

a language used to create web pages; file doesn't need html and can generate custom content; not always types, but file lurking behind screen

database

a list of data; organizations (like amazon) have a lot of different databases

computers and WWII

a lot of the development of computers had to do with WWII coding and the Cold War

Omnichannel

a multichannel selling approach where a single retailer provides a seamless customer shopping experience from desktop computer, mobile device, telephone, or brick-and-mortar store

firewall

a part of a computer system or network that is designed to block unauthorized access while permitting outward communication.

copyleft

a play on the word copyright; general method for making a program free, and requiring all modified and extended versions of the program to be free as well

protocol

a set of rules for communication; defines how web browsers and servers communicate; independent from hardware and OS -the internet supports a lot of different apps that use their own app transfer protocol to communicate with each other, such as SMTP (simple mail transfer protocol) -the web also uses different protocols; s added to web search means secure, so information between browser and server is encrypted

apps

a small piece of software for a specific platform

fault tolerance

a system continues to operate, even if a component of it fails

amdah's law

a system's speed is determined by its slowest component

microprocessors

aka CPU; executes instructions for the computer -performs mathematical operations, move data from one memory location to another, make decisions and jump to a new set of instructions based on those decisions -Moore's law states that after 18 months, this will occur 2x faster than before

Seed the market

allocating the market to a specific group of customers; the PS3 was combined with blu-ray tech

cloud computing

allows computers running software to operate unified (google, microsoft, and amazon have all spent money on moore's law for server farms, which are a network of computers running software to coordinate their collective use, which allows them to redraw their software and hardware) -latency: delay, cloud can have more compared to other consumer electronics

static vs dynamic web servers

amazon example; static will remain unchanged (HTML assignment) whereas dynamic will change (amazon's daily deals)

scrum

an approach to organizing and managing agile projects -tasks are broken into sprints (1-6 weeks) =roles (job functions): product owners, scrum master (runs meetings), team (focused workers) -artifacts: document work; product vision, product backlog (features for user needs), sprint backlog (what needs to be done in 1-3 weeks), task board -ceremonies (meetings): sprint planning (daily goals), daily scrum (daily team meeting), sprint demo/review.retrospective (demonstrate completed work)

data scientists

an individual who searches through multiple, disparate data sources in order to discover hidden insights that will provide a competitive advantage -shortage

Large, well-known followers: preannouncements

announcing in advance prevents buyers from buyer from a competitor, but announcing too early can cause buyers to wait for new product instead and sales go down

ASICs and FPGAs

application-specific integrated circuits: good at specific tasks (helps combat Moore's law depletion) -field programmable gate arrays: can be programmed after purchase

desktop software

applications installed on personal computer

enterprise software

applications that address needs of multiple users in an organization/group (inventory, sales, payments)

Privacy Regulation?

birthday, gender, and zip code can allow 87% of people in the U.S. can be pinpointed by name -some blame moore's law -regulations will increase firms need to be more careful

cluster vs grid

cluster has several computers with more tightly coupled software than grid which works with several computers and one task -subject to same limitation: software must be written to divide existing problems into smaller pieces that can be handled by each core, processor, and computer -only works with nonlinear

Binary digits

computers represent data using binary digits (0 or 1), aka bits -open: 0 -closed: 1

sunk costs in software

costs that have already been incurred and cannot be recovered -most costs are sunk once the first copy of software is produced

Switching costs

costs that make customers reluctant to switch to another product or service (Microsoft -> AOL or Wells Fargo)

tech investment

creates a barrier of entry for other firms

Database Management System (DBMS)

creates, manipulates, and maintains databases -varies in scale and usability (can be single use like microsoft access or industry like oracle)

Internet of Things

describes a system in which everyday objects are connected to the internet and in turn are able to communicate information throughout an interconnected system (apple watches, lamps, etc)

encourage development of complementary goods

develop subsidies, software, training programs, startup capital for goods that might encourage users to use your programs (oculus has a ten million fund for contributing developers)

tech 2020 and beyond

difference between success and failure in finance is tech -update model for IT -simplify legacy IT systems -use tech for customer needs -prepare to connect anywhere -address cybersecurity early -gather + grow talent -deliver what's next

Business process models

essentially the way a business operates; no standard way, varies across the board (ex: log on to website, place order, save order, pay for order, assemble order, ship order, update customer shopping list)

price/performance curve for most tech

exponential; rough guides can be used to try and predict future -when tech gets cheap, price elasticity kicks in because tech has a high elasticity -tech is a fast changing industry, so along with the future will come new customers and new markets

Economics of scale

factors that cause a producer's average cost per unit to fall as output rises; When cost of investments can be spread across more production or growing customer base

asymmetry of tech

fast downloads, slow upload speeds

FTTH (fiber to the home)

fastest last-mile tech around -works over long distances -upload and download speeds are the same -firms have to build fiber from scratch

fiber copy hybrids

fiber optic and copper hybrid, low cost compared to regular fiber optic and high speed compared to copper

sustainable competitive advantage

financial performance that consistently out performs than competition/"industry peers"

SaaS business model

firms earn money via a usage based pricing akin to monthly subscription -freemium pricing model (dropbox)

grid computing

firms place special software on computers, enabling multiple of them to work together on a common problem -monsanto used this is explore ways to manipulate crops resistant to cole -eliminates a lot of of money spent on R&D

Advantages of Hadoop

flexibility, scalability, cost effectiveness, fault tolerance

capability maturity model integration

gauge organization's process maturity and capability in key areas, provides set of practices for developing processes

Rivals: Be Compatible with the Leading Network

google maps was the leading network, so when microsoft created their maps, their software was compatible with google maps' software to allow users an easy transition

Information systems components

hardware, software, data, procedures, people

server usages and client-server system

hardware: computer that has been configured to support requests for other computers called clients software: program that fulfills requests -a client server system refers to two pieces of software, a client that makes a request, and a server that receives and attempts to fulfill the request -when total number of simultaneous client requests to a given server increases, server can become overloaded

supply chain management

help a firm manage aspects of its value chain

business intelligence systems

help a firm use data created by other systems to provide analysis

Porter's 5 Forces of Industry Competitive Advantage

helps manage competition, shows an industry's attractiveness, shows profitability, provides insight

optical fiber line

high-speed grass or plastic-like networking cable

zara's essential advantage

information systems allow zara to design, produce, and distribute within weeks; although tech is essential, it does not work alone, and need to work alongside an industry's 5 component information systems framework; innovate process, not just product

enterprise resource planning . system

integrates many functions an organization needs

neural networks

interconnected neural cells. With experience, networks can learn, as feedback strengthens or inhibits connections that produce certain results. Computer simulations of neural networks show analogous learning. -referred to as the black box -difficult to define in a traditional formula -appropriate data

3 tier client system

internet (browser) -> web server computer (application) -> database server computer (DMBS + DB)

system examples

inventory, manufacturing, human resources, purchasing, order tracking, decision support

walmart and e-commerce

jet.com 3.3 billion; e-commerce sales increased 63%; products 10-67 million -new tech in store bonobos, flipkart

Hilton Example

joshua stayed at the hilton and wanted to be upgraded to a gold, or even diamon member. -because of this loyalty program, there was incentive for him to make hilton his main, if not only, hotel -the incentive through rewards was an example of gamifying -they were even able to charge more by providing double the points for that room

input hardware

keyboard, mouse, document scanners, bar-code (UPC) scanners, video cameras, microphones

cybersquatting

knowingly registering a name of another firm to sell and profit from it; illegal from anti-cybersquatting protection act in US and doamain name dispute resolution policy reaches across borders

Sources of Switching Costs

learning costs: customers have to invest time into learning information and data: user might have to re-enter data financial commitment: investing in new equipment contractual commitments: have to break contracts can be bad/not reliable search costs: have to find new alternatives which takes time and money loyalty programs: lose benefits ie; value of switching has to be greater than costs

Leverage viral promotion

leverage users to promote product on social media

Patents

licenses that give an inventor the exclusive right to make, use, or sell an invention for a set period of time -can be nullified (software is granted, but hard to defend) -protect things like operation (iPod click wheel)

internet backbone

made up of fiber optic lines that carry data traffic; usually about 100 gigabits per second, some even one terabit per second

computer kitchen analogy

memory: processor, hard-drive, RAM processor: countertop to store groceries hard-drive: grocery store to get groceries RAM: pantry (what can fit on countertop goes to pantry)

google, microsoft, and apple's hardware and software layers

microsoft: -hardware: oems are dell, hp, apple/ wintel -OS: windows, ISVs help with apis which factor in and microsoft provides the platform -applications: microsoft, isvs apple: -hardware: oem product is apple -OS: apple -apps: apple and microsoft (isv) google: -hardware: google, some others -OS: google -apps: google.com

parts of a computer

motherboard: heart of computer, every part connects -CPU (central processing ): brain of the computer, runs the software and processes data -RAM: random access memory, hold data of software, sits on the motherboard, usually four or five -video card: connects to motherboard, creates images on monitor, sits in a slot power supply: sits on top of case, lots of wires -hard disk: holds info, even with the power off (non-volatile), software and data -optical drive: sits on front bay of the computer, uses laser to write CVDs and DVDs

expand by redefining the market

nintendo launched the wii by appealing to families instead of graphics; successful -blue ocean strategy is when firms seek blue waters instead of blood red waters with business sharks -accompanied by strategic positioning -convergence is when two or more companies that were separate start to offer similar features -envelopment is when a firm seeks to make an existing market a subset of its product offering (IPod to IPhone)

tipping points

occur in network effects when one winner emerges in value; dominance is established and it is an uphill battle for competitors

Subsidize Adoption

offer INCENTIVE; it is sometimes worth paying customers to adopt your technology and build the size of your network; price reduction, rebate, giveaways (subs. -> viral -> distribution channel) -think of fandango, microsoft bizpark example,

JSON (JavaScript Object Notation)

originally created for javascript, it is a set of standards for a variety of computers and programs; super convenient, but since it is so widely used, it is more of a target for infiltration and abuse

Alliances and Partnerships

partnering with complementary companies can boost product acceptance and enhance network effects; citibank and other banks, airways

Path Name and File Name

path maps to a file name where a file is stored, and file is name of exact file you want

mental models

people makes judgements, and information systems are used to appeal to people's mental models (think google vs yahoo)

hardware

physical components of information technology (computer, storage devices); getting faster and faster

strategy dashboard

player commits to desired actions player tracks feedback mechanics desired actions impact business metrics desired actions results in win feedback mechanics progress win incentives progress win (driven by tech but can't work alone)

public sector and data: crime fighting

police use ad hoc query in Richmond, Virginia -had reduced crime rate by 20% -bureaucrats in Albequerque save $2 million

load balancing

popular websites have several computers working together to share a load of requests

Walmart's data driven value chain

proprietary system retail link in 1991; records inventory, reorders things, schedules deliveries, etc with every sale -7th best supply chai in the country -inventory turnover ratio: 11.11, meaning walmart sells the equivalent to its entire inventory every 4-5 weeks -back office scanners track inventory as shipments come in; suppliers rated on delivery timelines -leading their suppliers in adoption of RFID: boosted sales 20% by putting inventory where it belonged -scan and go makes customers shopping experience easier; tried to partner with best buy, target, sears, and 7-eleven to set new MCX standard

software

provides instructions for hardware; managers who understand software better understand possibilities and impact of technology in all aspects

e-waste

rapid obsolescence of tech means more and more tech junk; toxic for the planet and will only get worse as moore's law continues to prevail

internet 2

research network with new protocols and transmission speeds that provides an infrastructure for supporting high bandwidth Internet applications like academic, industry, and government firms

fast follower problem

rivals watch a pioneer's efforts, learn from their mistakes, and attempt to enter market superior (easy in tech)

Genetic Algorithms (GAs)

search algorithms that mimic the process of natural evolution. They are used to generate solutions to optimization and search problems using such techniques as mutation, selection, crossover, and chromosome. -essentially, they examine many potential solutions to a problem and modify mathematical models to choose best -define data

high inventory turns

sell product fast in order to receive profit fast

fabs

semiconductor fabrication facilities (inexpensive to build)

platforms

services that allow for the development of software and other complementary goods, creating an "eco-system" value by adding offerings (IOS, windows, kindle, etc)

Value chain

set of interrelated activities that bring products or services to market; elements work together to reinforce competitive advantage

cloud computing in more context

set of services making it more common for a firm to move software out of its own IS, running on someone else's hardware; replacing computer resources like hardware through services provided over the internet -businesses with cloud computing predicted to grow from $260 billion to $411 billion by 2020 two types: -software as a service and utility computing -major players leader innovation: netflix, amazon, facebook -the idea of buying packaged software changing due to things like the app store -allowing startups and smaller businesses more access to software -both types have similar benefits; evolutionary impacts on industry finances, cost structure of innovation, skills set

multicore

several processors in a single chip

information asymmetry

situation in which one party is more informed than another because of the possession of private information

application server

software that houses business logic for distributed system -web services: small pieces of code that are accessed through an application server; individual components that perform different tasks, support machine to machine interaction over a network -application programs interfaces do a similar things, referring to a code, requesting response from other programs do accomplish that task; firms other than google use google maps because google published APIs to use that service

Supply Chain Management

structuring and coordinating of relationships and activities across firms to deliver value in and information and technology intensive global environment -a supply chain is a network of organizations and facilities that transforms raw materials into products delivered to customers (consumers -> retailers -> distributors -> manufacturers -> suppliers ->) -disintermediation is taking out the middle man (distributor and retailer, aka from manufacturer to customer)

Transaction Processing System (TPS)

supports the monitoring, collection, storage, and processing of data from the organization's basic business transactions, each of which generates data -POS, ATM, service desk -a transaction is some kind of business exchange -can be tricky to monitor data with cash, so many businesses use a loyalty card to track

terrestrial wireless

systems provided by cell towers

computer architecture

that thing

throughput

the amount of work performed by a system during a given period of time

price transparency

the degree to which complete information is available

Distribution Channel

the means by which you deliver the product or service to the customer: iTunes is a distribution channel for apple music; API's are application program interfaces, which allow other firms to tap into Thur services (Uber and United airlines, etc) -can be dangerous (google with Apple)

Brand and it's importance

the symbolic embodiment of all info connected with a product or service 1. customer service builds quality and trust 2. tech can build viral marketing (Google vs Microsoft and bing)

Moore's Law

thought up by founder of intel Gordon Moore, who wrote a paper about regular advances in chips allow for cheaper pricing, or more specifically, how chip performances per dollar doubles every 18 months/applies to chips and processors -doesn't apply to all tech components, but others often experience a similar phenomena, although not as predictable

scripting languages

tool that executes an application, interpreted within applications -script automates functions in office -slower than what's in commercial software, but easier to use

absence of production capacity constraints

unlimited number of copies can be produced

cable broadband

uses thick copper wire to offer broadband access -90% of U.S. homes use -have to share with neighbors

resource-based view of competitive advantage

using 1. rare 2. valuable 3. imperfectly imitable 4. nonsustainalble resources to maintain sustainable competitive advantage (prevents businesses from simply entering markets because growth, like dense wave division multiplexing)

bullwhip effect

variability in order size and order timing increase at each stage up the supply chain (occurs bc of multistage nature of a supply chain and reduces profitability of a supply chain) -think airpods, where the retailer told the distributor to send more, who told the manufacturer to send more, who told the supplier to send more, who ended up overstocking inventory as a result and drives up costs that drive back up the supply chain, resulting in higher costs across the board -avoid the bullwhip effect by letting all participants of the supply chain have access to consumer-demand info (information systems are helpful to send data directly)

output hardware

video displays, printers, audio speakers, overhead projectors, and plotters

LL Bean data master

went from SQL to Hadoop tech, new consultants, new cloud -based system, new IT skills, trained employees, OLAO tools more available, implemented automated tools

massively parallel processing

when computers that have many microprocessors work together simultaneously

distributed computing

when computing occurs through computers that are in different locations, communicating with one another -speedy, reduces error, and saves money