MIS REVIEW #1

Multilayered Distribution system

-API: guidlines for 3rd parties to interact -Service oriented architecture (SOA)

Vendor benefits of Saas

-Limits development to a single platform. -Tighter feedback loop. -Ability to instantly deploy bug fixes and product enhancements. -Lower distribution costs. -Greater accessibility. -Reducing software piracy.

players in the ecosystem built around iPhone/iPad? How does each player benefit from this ecosystem?

-content providers: lots of competition and variety w low price -IOS, App store: portal is high responsive to what's popular, subsidise software -Iphone and IPad: good tech by IP, raises profits Strone network effects bc economies of scope and scale

Understand that the slowest part of the Internet is typically the last mile, not the backbone.

-last mile: tech that connects end users to Internet -Internet backbone: high speed data lines that interconnects and form core of Internet

Why does the sharing economy become so popular nowadays

-recession wage stagnation social media environmental concerns smartphones

Application Programming Interface (API)

A set of software routines that allows 3rd party software system to work with another. ex. Uber uses Google maps to display cars ex. CarPlay installs Siri and Iphone

How does the market share for desktop operating systems differ from server operating systems?

Desktop Operating System: 91% Windows dominated, Mac, Linux Server Operating System: 46% Windows, 29% Linux, Unix, other

Virtual reality

FB acquired Oracle

Internet vs Web

Internet: network of millions of networks Web:

Why did Apple want to switch to new chip architecture for its Mac? What are the pros and cons?

Pro: more powerful so Apple cam offer thin, light laptops run windows, high volume chip supply Con: rewrite/revise its OS/apps to work on Intel

Why can't Netflix secure a long tail of streaming content that is the same size as its content catalog in the DVD-by-mail business? What is Netflix doing to make its streaming catalog more appealing than rival offerings?

*windowing/exclusives - Windowing: making content available to given distribution channel for time window Most studios like streaming revenue, they don't want to undercut higher revenue early windows. Premium TV networks like HBO pay TV channels exclusive content until pay TV time window closes -Firms refuse to offer streaming rights to Netflix, only HBO service -Studios don't want Netflix to increase in power over product distribution, want to preserve supplier bargaining power -Netflix Creates exclusive content and OG content for 1st windows rights

rivals to the Netflix streaming effort

-Amazon incorporating streaming into TV and devices, Kindle Fire products, Fire TV, expanding library, add on w amazon prime -Hulu: joint w NBC, FOX, -Apple: Itunes -Facebook: -CBS "all access" streaming service- Star trek -Comcast and Verizon: apps to stream content on phone/website

Understand that the two major 3G standards (the more popular GSM and the less widely adopted CDMA) are being replaced by a single, dominant, higher-capacity 4G standard (LTE). The transition from 3G to 4G is increasing bandwidth and capacity, but usage continues to skyrocket as smartphone and tablet users stream increasing amounts of video and audio.

-Broadband: high speed internet connection; by cpaxil cable, DSL, fiber to home, wireless spectrum -Bandwidth: network transmission speeds expressed by bits per sec (bps)

difference between desktop application and enterprise application software?

-Desktop application: applications installed on personal computer, supporting tasked by singer user -Enterprise application: address the needs of multiple users throughout an organization/work group ex: Firefox, Excel, Skype, SAP, Oracle

how to leverage social media platform, what is digital strategy and what is social strategy

-Digital strategy: leverage platforms to reduce marketing/customer acquisition costs Ex. -Social strategy:

What is ERP? What is CRM? What is SCM?

-Enterprise Resource Planning system(ERP): integrates many functions need in an org. -Customer relationship management(CRM): systems used to support customer related sales and marketing activities -Supply chain management: systems that can help firm manage aspects of its value chain through delivery of finished products and services at the point of consumption

examples on how IT increases customers' switching costs.

-Ex. Netscape dominated in web browsers until Microsoft bundled Internet Explorer w Windows OS and AOL Easy to switch, customers noticed no difference -Ex. Facebook profile, Netflix movie preference, FreshDirect grocery list (uses data to raise switching costs, can offer better personal experience) *to win customers, new entrant must offer product/service that exceeds incumbent's value and any switching costs

why established firms sometimes fail to recognize and react to potentially disruptive innovations.

-Focus on customers current needs, not questionable new tech -Firm's customers don't want initially poor financial performing new tech -Startups amass expertise quickly

ISP? What is peering? Understand that carriers usually don't charge one another for peering. Instead, "the money is made" in the ISP business by charging the end-points in a network—the customer organizations and end users that an ISP connects to the Internet.

-ISP: AT&T, Time Warner(cable broadband), Comcast(cable broadband), Verizon (DSL), lack of connectivity forces ISPs to collaborate -Peering: separate ISPs link their networks to swap traffic on internet for no charge ISPs charge individuals and corporate users for access

different business models can be built around open source software Understand the motivations for large incumbents (such as IBM, Google, Oracle) to contribute to the development of open source software.

-Lowers cost of computing, more accessible to smaller firms -Reliable, secure, lowers computing cost for all -Diverts funds to be used for other initiatives, encourages innovation -Makes money for vendors by selling support and consulting services -Industry's evolution: now all major hardware firms run Linux, leads to large unified marketing attracting software

what techniques can it use to nurture and develop these technologies?

-Paying attention to trajectory of cheap/fast tech, external conversations on experimental edge advancement, internal conversation with engineers -Firm can invest in portfolio of startups/emerging tech options which separates (less distraction) from core business, consider acquiring firm if they have a stake

What is strategic positioning?

-Performing different tasks from competitor or same task in a different way -Opposite of operational effectiveness -Uses tech to achieve sustainable competitive advantage; by Michael Porter

apply the five forces framework to assess the competitive landscape in the PC industry.

-Potential new entrants: easy to assemble components, distributed easily/cheap though internet -Power of buyers: as PC become commodities, many choices, buyers demand lower price -Power of suppliers: most suppliers of components have no power over PC makers except for CPU and OS -Rivalry w existing competitors: -Substitutes:

different business models around operating system

-Some firms develop their own proprietary OS and bundle it w their own hardware products -Some firms sell OS as major product -Some firms give away OS for free to create a platform for other business

list/identify examples of computer input devices processing devices output devices storage devices.

-input devices: keyboard, mouse, scanners, video cameras, microphones -Processing devices: Central processing unit (CPU) Processor manufacturers: Intel, American Micro Devices (AMD), ARM-based chip manufacturers Random Access Memory (RAM): chip-based memory Volatile memory or nonvolatile Special function cards: enhance basic capabilities (Video cards,Ethernet cards) -Output devices: Video displays, printers, audio speakers, overhead projectors, etc. - Storage devices: nonvolatile memor volatile memory: Hard disk drives, SSD (solid state drives), Optical disks (CDs and DVDs), Flash drives

five forces framework to an industry, assessing the competitive landscape and the role of technology in influencing the relative power of buyers, suppliers, competitors, entrants, and alternatives.

-intensity of rivalry of existing competitors: compete w other brick n mortar -threat of new entrants: competition online -threat of substitutes: online music streaming -bargaining power of buyers: demand cheaper prices, greater convenience -bargaining power of suppliers: ubers are cheaper than taxi's

How have the rise of the Internet and the advance in IT impacted the competitive landscape of music CD/ printed book industry?

-intensity of rivals increased bc brick and mortar couldn't compete online: Firms scramble to invest in new e commerce channels, -New entrants like Amazon w highly scalable cost while brick n mortar where straddling -Better online experience w collaborative filtering, substitutes w digital music files, new platforms like Spotify and Pandora <<increases bargaining power of buyers

benefits for Netflix to move from atoms to bits

-leads to binge watching -more freedom creativity in storytelling (commit to whole season than episode to episode) -simpler service

key reasons explaining Kodak's downfall

-market shares, revenue, competitors, tech. Explosion -Fuki created cheaper design paper for printing film -expansion in photography opened door for computer industry(printers, software) and broadened product line for potential for market growth -took Kodak along time to build on knowledge, competition w IBM, Apple -Intro of substitutes: portable digital camera, switch to digital

one-sided market vs two-sided market

-one sided: positive feedback loop of network effects, market gets most value from one class of users -two sided: market w 2 distinct classes, both needed to deliver network value to function (money side and subsidy side) Ex: video game console and software developers Indeed: employers and applicants

characteristics of disruptive innovation? list/identify examples of disruptive innovation and explain why.

-performance attributes customers don't want, over time attributes improve to appeal to customers and invade established markets Ex. Bitcoin: open source, decentralized payment system through peer to peer, w/out bank Ex. Cryptocurrencies: digital asset from mathematics used to handle transactions, verify Ex. Blockchain: distributed/decentralized ledger and records and verifies transactions

major factors contributing to Uber's success How does Uber leverage data in its service? What aspects of the firm's operations are improved through data analytics? Does this provide the firm with a sustainable competitive advantage?

-product market fit: degree product statifies market demans create over 50,000 new jobs a month. -data: optimizes algorithms to determine number of drivers, where demand is, and dynamic pricing. -safety: The software system shows maps, cars, locations of customers. -User's data from staff optimized algorithm used to power firm's operation model, alert drivers, improve service, set pricing, identify cities to enter -API's(guidelines on how other developers can embed Uber into their own apps) allow Uber to become platform; partners w Opentable, UNited Airlines, Trip Advisor, Hyatt Hotels, Uber Heath

why people use Facebook and its implications for business effectiveness of different advertising strategies on Facebook

-used bc of social graph, network effects, switching costs -feeds from social graph are the lifeline of Facebook's ability to strengthen user value -Hashtags helps discover conversations, encourage more public sharing Advertising based on content adjacency and user attention; (precisfise targeting to demographics, likes, interests, CRM, increase in mobile use provides FB data on customer flow, social context ads <ex. of social proof, cut back on ads

key challenges to the sharing economy?

-workers are indept. Contractors instead of traditional employees w heathcare, insurance -Provides of Airbnb breaking law if running business in certain zone, health and saftey laws -complaints about surge pricing to meet supply and demand

Porter's 5 forces of industry and competitive analysis

1. Intensity of rivals and existing competitors 2. Threat of new entrants 3. Threat of substitutes 4. Bargaining power of buyers 5. Bargaining power of supplies

strategies for competing in markets with strong network effect

1. move early: Yahoo late in Japan, Ebay late and lost sale 2. subsidize adoption: price reduction, rebate, giveaway ex. Gilt 3. leverage viral promotion social media, subsidies (incentives) Social profit: when someone finds out that others are doing the same thing Ex. Blue apron, posts food on FB to inc. awareness, Uber 4. redefine market: Ninetendo appeals to families vs Song and male gamers Blue ocean strategy: firms seek blue waters of new market than blood red water w rivals 5. alliances/partnerships: Uber vs Lyft/Ola/Grab- share tech, business resources, local market knowledge 6. leverage distribution channels: Apple music in IOS devices 7. seed the market: giving away products ex. Google offers free, ad supported search 8. encourage complementary goods: Amazon funded skill app for its echo products 9. leverage backward compatibility: take advantage of complementary products developed for propr tech generation ex. Samsung Pay accepted more in stores bc of MST: same tech as back of credit card

What should managers always ask before launching an innovative (but possibly disruptive) product?

5 forces - How big will the market be? - What is the level of competition

social network

A series of social relationships that links a person directly to others, and through them indirectly to still more people ^ profiles, group affiliations, pm, media sharing, feeds

What are the barriers to cloud computing adoption?

Barriers to Cloud Computing Adoption: 1) Security: Threats to data confidentiality which is being trusted with another company and worries on whether the provider is providing good security for the data 2) Accessibility: There is more dependence on the internet which can crash at any second and also risk that there is a crash at the provider's infrastructure so loss or lack of data 3) Total Cost of Ownership: Providers can sell computing service per hour or per GB which can be bad for huge companies that spend a lot to rent and should instead buy/invest 4) Switching Costs: Large amounts of data are difficult to move from the cloud interface to another database 5) Interoperability with Systems: Out of date systems can be difficult to run on cloud software because they may be more up to date 6) Less Flexibility: There is less flexibility because cloud interference will keep updating so there is more training/learning costs which can't be avoided and customization can be limited to only specific settings on the cloud

commodity

Basic goods w identical offerings (milk, coal, water, wheat) based on pricing

blade-razor strategy

Buy main component once, continuously restock on complements ex: Kodak Business Model Gillette, HP Printer

Moore's law is only related to (CPU) processing speed. However, not only processing speed but also communication speed and storage capacity all experience exponential growth over the last 30 years.

Chip performance (speed/storage) doubles every 18 months at the same cost Data storage doubles 12 months, optic fiber 9 months

What "class" of software does Netflix use to make movie recommendations? Which key competitive resource does this software "create"? What kinds of benefits does this provide to the firm? How does the long tail effect interact with its recommendation software? Is Netflix's recommendation software successful? Understand how Netflix built its recommendation software.

Collaborative filtering; Cinematch: system monitors trends among customers and use data to personalize an individual's customer experience High customer satisfaction: Increases switching costs, decreases churn rate, highly scalable, builds branding Long tail: limitless selection which attracts customers and create inefficiencies that offline firms can't match>>>>used w cinematch to recommend movies with customer's preference to increase engagement Leverages data recommended titles make up 60% of netflix users content, don't have to wait for movies that are in stock

router

Computing device that connects networks and exchanges data between them used by IP for relay work

challenges for Netflix to move from atoms to bits

Content Acquisition factors -legal: First Sale Doctrine: Netflix can't offer Internet streaming w/out separate streaming licensing but cost to stream on Netflix rose 43x higher>>"long enough tail" -competition: Increase in content providers wanting the same show from studios -content availability: windowing: Title availability depends on windowing(theater to DVD to live TV to pay TV) -potential partners: Some firms refuse to offer Netflix streaming rights -content costs: Inconsistencies in licensing rate

List a technology-based company and discuss whether it enjoys sustainable competitive advantage based on the resources it controls. Understand that technology advantage alone will not yield sustainable competitive advantage.

Dell- vertical integrated manufacturing, direct to consumer sales, cheaper> dominated PC market Over time, rivals improve manufacturing efficiency by studying Dell, price advantage fell

impacts of digital camera on the entire imaging chain

Disruptive technology that changed demand for film camera

Why is iPhone so successful

Economies of scope: average unit cost decreases as production increases for multiple product types

what conditions can the Internet strengthen supplier bargaining power

Ex. Auto sales and jewelry are commodities and the price transparency(complete info is available) of the Internet counteracts w info asymmetry( 1 party knows more than other), where customers don't know enough info about the product to bargain effectively Ex. Ebay, jewelry dealer can take rare item to global audience (larger customer base) instead of brick and mortar stores -internet increases buyer bargaining power for commodities -the more differentiated, the more the internet switches power to sellers

benefits of adopting enterprise software challenges of adopting enterprise software? What are the different types of costs i

Ex. Ford accounts payable was slow but now its fast and efficient Ex. IBM: 6 days to 4 hours in financing -huge spending; $15 million for large company, costs in licensing, design, testing -high failure rate: ⅓ fail bc of unrealistic/unclear project goals, inaccurate estimates of needed resources, poor communication among developers/users -high switching costs and vendor lock in

utility computing

Firm develops its own software and then runs it over the Internet on a service provider'scomputers. Paas and Iaas

crowdsourcing

Firm states a problem to be solved for reward to broader community learn alot from submissions, fuels innovation Ex. 1 million to whoever can increase Cinematch scores by 10%

open source software why firms choose open source

Free software where anyone can look at and modify the code Ex. Firefox, WordPress -cost -time to market -reliability: less buggy -customization -scalability: can handing increasing workloads, easily expand to manage increase

coopetition What are the risks and benefits to Netflix in using Amazon's cloud computing Platform?

Frenemies: Netflix using Amazon cloud service to be closer to high speed Internet Benefits: avoids operational issues, freed to focus on proprietary systems that are a source of competitive advantage Risks: unreliable infrastructure, people go somewhere else

social graph Why is Facebook's social graph considered to be stronger than the social graph created by the sites of its early competitors

Global mapping of users and how they're related Strong bc of network effects and switching cost

Is Uber good for the economy or bad

Good, suppliers can use underused assets and reduce transaction costs in storefronts, utulities, staff

Apple Software Device Model

IPod>Iphone>IMac ITunes>Applestore>iCloud inc. switching costs networks effects in 2 sided market between software and platform

net neutrality? Who would you side with, Netflix or the large ISPs?

ISPs must treat all Internet communications equally, not discriminate or charge differently Netflix is expanding> network clogging traffic collab w Verizon and Comcast to connect directly to networks to improve streaming goes against net neutrality ISP's want Netlfiex to pay more, places bandwidth caps on data traffic

Cloud computing service models

Iaas: Customer: "I need a server" (raw processing power and/or storage) The capability provided to the customer is to rent Paas: Customer: "I have developed or acquired an app, I need a place to run it." The capability provided to the customer isto deploy • Saas: Customer: "I want access to the software app via my thin client interface (e.g., Web browser)" The capability provided to the customer is to use the provider's applications running on a cloud infrastructure.

URL label the protocol name, host name, domain name, path, and file name for a given URL.

Identifies resources on Internet along w application protocol needed to retrieve it, aka web address http://www.nytimes/com/tech/indec/html www> host name(offers load balancing and fault tolerance), nytimes>domain name(internet directory service that allows devices and services to be named nad discoverable), tech>path(maps folder location) index.html>file (file you want)

major players in the CPU market? Understand the key strategies played by each of these firms

Intel, American Micro Devices(AMD), ARM based chip manufacturers

DNS domain name service how a computer interacts with DNS to find the IP address of a given URL.

Internet directory service that allows devices and services to be named and discoverable. looks up host and domain names and returns the actual IP address for them. Likened to a big, hierarchical set of phone books "name servers" capable of finding Web and email servers and more. The system also remembers what's it's done.through a cache: temporary storage space used to speed computing tasks.

two leading ERP vendors? Be able to list the functions of a business that might be impacted by an ERP.

Leading vendors: SAP(targets large companies), Oracle(small companies) ERP: HR, manufacturing, inventory, decision support, order tracking, purchasing

Viral marketing

Leveraging customers to promote product/service- Increases public awareness w social sharing *ads on google, Facebook

"faster and cheaper computing" affect areas such as IT production and inventory decisions, IT adoption decision?

Managers must regularly study trends/trajectory in tech to recognize opportunity and avoid disruption PC become commodities> compete on price>low profit Moore's law> increases price cutting

cloud computing

Model enabling on-demand network access to shared pool of configurable computing resources including servers, storage, and applications that can be rapidly personalized with minimum service provider interaction which have different factors including these characteristics: 1) On-Demand Self Service: A consumer can be provided with cloud computing without having any human interaction with the service provider at any time 2) Broad Network Access: Any device that is connected to the internet is able to use the cloud service and work on it for more collaboration 3) Resource Pooling: Multi-Tenancy Model because multiple people can share the same resources and Location Independence because user doesn't know where his data is being stored 4) Measured Service: The cloud computing usage can be measured throughout and monitored, reported, controlled, allowing both users transparency 5) Rapid Elasticity (Scalability): If you need more resources you can easily buy more with more customers or profit for a specific company There are pros and cons to adapting cloud service: 1) Benefits: More flexible, cheaper without buying expensive hardware and servers which is more scalable because you can increase at any time with more flexibility and access 2) Challenges: Dependent on another company for software and apps and how they are functioning, threat of security from data, IP address not specifically known, less customization options Two types: Saas and Utility computing (Paas and Iaas)

factors explaining Netflix's success in its DVD-by-mail business?

Netflix advantage: large selection, large distribution centers, larger customer base, strength in brand and data scalable=global expansion, streaming on apps

why the gross margins in the PC industry are generally lower than the software industry.

PCs became commodities, PC makers had to compete on price which leads to low profit Moore's law (rapid technology obsolescence) Exacerbates price cutting

complements to PCs that may drive up demand for PCs

Peripherals such as printers, digital camerasSoftware applications,Internet

net neutrality? Who are the example companies supporting this view? W

Principle that all internet traffic should be treated equally -Internet content providers supports bc they don't want ISPs to block content or favor their own offerings above rivals, limit innovation if switches from flat rate pricing to usage based pricing -SUpported by Google/Netflix to maintain openness

How does Uber ensure rider and passenger quality

Rate drivers Better than taxi's bc pf scheduling, service speed, reliable, ease of payment, diff car options Uber continues to invest in new technologies, exploring voice recognition and biometrics to further strengthen driver verification,and implementing a panic button linked to emergency services.

why Facebook acquired Instagram, WhatsApp, and Oculus VR.

Remove rivals and strengthen assets

Customer benefits of Saas

Saas benefits: -Lower costs on software, hardware, maintenance, staff -financial risk mitigation. flexible low startup costs -Faster deployment times and variable operating expense -Scalable systems: easier for firms to meet high demand sun -Higher quality and service levels w upgrades and expertise -Remote access and availability through any web browsers

basic function of central processing unit (CPU)

Selects and processes instructions, performs arithemtic/logical comparisons, stores operations in memory

operating system Understand the value of an operating system is determined both by its own functionality and the availability of the applications running on it.

Software that controls the computer hardware and establishes standards for developing and executing applications Every computing device has an OS -User -Application -OS -Hardware

Open Source Software (OSS)

Software that is free and where anyone can look at and potentially modify the code ex. Linnux, Apache, MySQL, PHP/Pearl/Python LAMP

TCP transmission control protocol vs IP internet protocol) how TCP and IP work together to enable data communications between one computer to another.

TCP: Works at both ends of internet communication to ensure a perfect copy of a message is sent. -IP: routing protocol in charge of forwarding packages on the internet, via routes 1. TCP slices web page data from web server into packets 2. IP fowards packets from router to router until PC 3. TCP puts packages back together to get perfect copy on your computer

Random Access Memory (RAM)

Temporary memory(volatile memory) a computer uses to store information while it is processing. nonVolatile memory ^Hardrive stores longterm data

Suppose now your company wants to adopt an enterprise software application (e.g., CRM, ERP) and you have two options - buying some packaged enterprise software or using software-as-a-service model (i.e. getting on-demand enterprise software). What are the benefits of buying the packaged one and what are the benefits of getting the on-demand one? Understand how the size of your organization affects your choice.

There are pros and cons to adapting cloud service: 1) Cloud Computing: More flexible, cheaper without buying expensive hardware and servers which is more scalable because you can increase at any time with more flexibility and access 2) Packaged ERP: More customization for the company with no continuous costs and integration of different sectors. A smaller company will tend to rent cloud service because there are less needs with less number of customers that can be bought every month compared to large companies that will invest money to stop paying very high costs every month.

why the click-through rates on Facebook are substantially lower than the click-through rates at Google.

Users on Google: hunt for specific action 2% click through rate Users on FB: hike lack of directed intent 0.4% hike- collect info to drive action ex. users of google hunt- lack directed intent to search, follow breadcrumbs ex. users of Facebook

IP address Understand that every device on the Internet needs to be assigned with an IP address.

Value used to identify device that is connected to Internet

volatile memory and nonvolatile memory

Volatile: storage wiped clean when power is off Nonvolatile: storage saves data on hard disk

How the Web works What is HTTP? What is HTML

Web works through request response cycle: HTTP request for web page from client PC, HTTP response w HTML web page(can contain picture or video clip which requires separate response) from web server -Http(hypertext transfer protocol): application transfer protocol that allows Web browsers and web servers to communicate with each other, secure and closed -html(hypertext markup language): language used to compose web pages

Can Facebook turn Graph Search into a money maker? How

Yes, it allows users to draw meaning from sites social graph, and find answers from social connections (provides user content/opinions/trending news Google cant) -Claimed it could be primary source of jobs. Travel info, dating

Microprocessor

an integrated circuit that contains all the functions of a central processing unit(CPU) of a computer CPU:Brain of the computer that performs instructions defined by software chip installed to motherboard

Resource based view of sustainable competitive advantage

approach to reach sustainable competitive advantage (attributes that outperform) resource must be 1. valuable 2. rare 3. imperfectly inimitable 4. non substitutable -timing and tech can enable competitive advantage ex. .dot come burst

distributed computing Understand what is client and which is server in a distributed computing environment. Understand how client browsers on various machines interact with a company's systems.

client: makes request, sever: fulfills request

PaaS what are the resources the cloud vendor will provide/manage and what are the resources the cloud user will have a control? What basic question is it essentially addressing for a cloud user? Know that Windows Azure, force.com, and Google app engine are all examples of PaaS vendor.

cloud provider offers services that include hardware, operating system, development tools, testing that its customers use to build their own applications on provider's infrastructure cloud firm manages platform, while client controls creation and deployment of applications ex. salesforce offers IDE to write, Google offers Bigtable, Microsoft offers windows azure and sql azure database FB does not provide Paas because although it has cloud service to allow app developers it does not provide the hosting or processing power for the application

IaaS the resources the cloud vendor will provide/manage and what are the resources the cloud user will have a control? What basic question is it essentially addressing for a cloud user? Know that Amazon is the pioneer to officially offer IaaS to the public and Rackspace is also gaining an increasing market share of IaaS

cloud providers offer services (running remote hardware, storage, and networking) but client firms can choose software used cloud form manages infrastructures while client controls operating system, storage, applications offered by amazon, CSC, backspace, HP, IBM, VMare ocus more on enterprise-oriented private clouds but recently started to diversify their services thorough public cloud offerings as well ex. Netflix on amazon AWS two types of cloud services: 1) Public Cloud: The cloud infrastructure is made available to the public that can be rented for services 2) Private Cloud: The cloud infrastructure is operated solely for a single organization

When you decide if you want to get service from a particular cloud vendor, why should you consider the long-term viability of the cloud vendor?

competitive advantage: security legal and compliance skill, expertise, available labor time time vendor issues

Digital Hub Strategy three biggest strategic moves by Jobs in the Macintosh rationale for Apple to open physical stores?

control, integrate, add value to digital device 1. new chip architecture ;intel 2. new software ; MacOSX 3. new distribution channel ; Apple stores ^Leverage distribution channels to increase customer experience

economies of scale

cost decreases as output( units or production or more customers) increases ex. Blue Nile are scaleable bc it sells more through than the 116stores w 1 website 1 warehouse Growing firm gains bargaining power w suppliers and buyers> Apple holds smartphone/tablet market, aka better pricing

switching costs

costs to switch to another product or service strengthens network effects weakens buyer bargaining power -learning costs -info/data (reenter data) -financial commitment -contractual commitment -search cost -loyalty program *investments in product make them more reluctant to switch

Value chain

how you create and deliver product to customer Primary components -inbound logistics(getting), operations(creating), outbound logistics(delivering) marketing, support Secondary components -firm infrastructure, HR, tech, production *used to analyze rival differences and strengthen own assets, reveal weaknesses, tech improves quality through supply chain management, CRM, ERP

Longtail How does Netflix benefit from the long tail? Why can't the traditional brick- and-mortar retailers capture the long tail effect?

large selection of products that aren't as popular but satisfies every customer group not popular enough for stores to sell more users=firm more likely to pay for content than small rivals

why a software company (e.g., Microsoft) could potentially generate high profit margin.

low marginal costs, potential for bundling revenue from upgrading, economies of scale

Why do certain entry barriers decrease as a result of cloud computing

lowers barriers lowers capital increases innovation: more desire for mixed skill increases high end server sales: shift from hardware to servers service farm: network of computer services, backbone of Saas *cheap land, low cost power, fast fiber optic connection

Fresh Direct business model How does IT impact its value chain? Would a similar business work in rural areas? Why or why not? Advantages does FreshDirect have that insulate the firm from serious competition from start-ups copying its model

mobile app, next day delivery, high inventory turns, farm to fork supply chain for optimal features >>creates an imitation resistant value chain (reinforces competitive advantage) Rivals that want to copy would be straddled from 2 business models unable to get full advantages from both No, tech plays key role FreshDirect started early- develops brand, scale, data

TCP vs UDP user datagram protocol

operates instead of a TCP in applications where delivery speed is important and quality is sacrificed

collaborative consumption/sharing economy

peer-to-peer sharing or renting ex. Uber, Ebay, DoorDash, Airbnb, ThredUP

Network effect/Metcalfe's law three primary sources of value for network effects

product/service inc. as user base inc. ex.Ex. Facebook- common user base -exchange: more users=more communication -staying power> strengthened by switching costs and total cost of ownership -complementary benefits: adds ons by platforms

SaaS the resources the cloud vendor will provide/manage? What basic question is it essentially addressing for a cloud user? Know that the cloud user will usually not manage or control the cloud infrastructure, operating systems, and even individual application capabilities, with the possible exception of limited user-specific configuration settings.

provides software and hardware to replace internal info system firm subscribes to 3rd party software that delivered online requires least support, where Iaas runs on blank canvas ex. email, yahoo gmail microsoft online services

What is disintermediation? What are the benefits from disintermediation in the video industry? Is Netflix a friend or foe to the studios?

removing org. from firm's distribution channel between supplier and customer Like: increases profits Dislike: decreases supplier bargaining power *ex. buying NBC by comcast to create single content and distribution into one firm Benefits: studios don;t need to share revenue with third parties, keep money from new windows, studios direct to customer: potential valuable data asset to maintain customer relationship foe to content creator providers bc of Netflix Originals "desire to be one screen to find all" Apple TV, Amazon Video

Coupons 2 purposes

sell too much supply at discount for profit attract customers to buy more

major functions performed by a content delivery network (CDN) provider

system of distributed servers (network) that deliver pages and other web content to a user, based on the geographic locations of the user, the origin of the webpage and the content delivery server.

Collaborative filtering ex. Cinematch- Netflix

systems that monitor trends among customers and use data to personalize an individual's customer experience ^needs data and tech started w Amazon books

Why do some collaborative consumption firms choose to take possession of inventory rather than allow the "crowd" to provide it peer-to-peer style?

to ensure quality and gain more control on customer experience Ex. ThredUP

Enterprise Resource Planning (ERP)

types of software product by 3rd party that integrates business functions -sales -inventory -marketing -HR -purchasing -order trafficking -decision supply

Risks w Saas

•Dependence on a single vendor. •Concern about the long-term viability of partner firms. •Users may be forced to migrate to new versions. •Possibly incurring unforeseen training costs and shifts in operating procedures. •Reliance on a network connection, which may be slower, less stable, and less secure. •Data assets stored off-site may lead to securityand legal concerns. •Limited configuration, customization, and system integration options compared to packaged software or alternatives developed in-house. •User interface of Web-based software is less sophisticated and lacks the richness of most desktop alternatives. •Ease of adoption may lead to pockets of unauthorized IT being used throughout a firm.