IS Test 2 (Conceputal)

Social Graph

"A mapping of everyone and how they are related." It will not only include who is connected, but also the type of connections between people, such as work, friendship, interests, and location.

According to the video on false news, what is an inherent risk in the current speed of information dissemination, as implied in the transcript? - People read less than they used to because they get information faster. - The speed causes technological issues with older devices. - Quick information spread leads to an overload of factual reports. - It facilitates the rapid spread of misinformation before facts can be verified.

It facilitates the rapid spread of misinformation before facts can be verified.

Per the textbook, why is it important for technology platforms to leverage distribution channels effectively? - It gives them an excuse to increase product prices due to distribution costs. - It enables them to focus on production while outsourcing marketing responsibility. - It allows them to rely less on the product's quality and more on its availability. - It ensures their product reaches a wide audience, reinforcing network effects through increased adoption.

It ensures their product reaches a wide audience, reinforcing network effects through increased adoption.

Per the textbook, what is the main advantage of "Being Compatible with the Leading Network" for new tech entrants? - It guarantees instant brand recognition and market dominance. - It allows new entrants to avoid investing in customer service. - It facilitates user adoption due to reduced switching costs and familiar usage paradigms. - It legally binds leading networks to share a portion of their revenue.

It facilitates user adoption due to reduced switching costs and familiar usage paradigms.

According to the video on false news, what is "circular reporting" as defined in the transcript? - It's when journalists circle back to their sources before publishing a story. - It's the constant repetition of correct - It's when one publication publishes misinformation, another reprints it, and the original then cites the reprint as the source. - It's when a story gets reported in a roundabout, confusing manner.

It's when one publication publishes misinformation, another reprints it, and the original then cites the reprint as the source.

Per the textbook, in network economics, what drives the "stronger staying power" of a digital platform? - Its ability to retain users through increasing returns to scale and network effects. - The platform's financial capacity to sustain long-term advertising campaigns. - The physical robustness of the platform's servers and infrastructure. - The exclusivity of the platform, limiting its user base to a niche group.

Its ability to retain users through increasing returns to scale and network effects.

Fabricated Content

New content that is 100% false, designed to deceive and do harm.

Per the textbook, what is the primary risk associated with the Osborne Effect? - Overhyping product features that cannot realistically be delivered. - Underestimating competitor reaction and market dynamics post-announcement. - Mismanaging inventory and supply chains leading to product unavailability. - Prematurely announcing future products, thus hurting sales of current offerings.

Prematurely announcing future products, thus hurting sales of current offerings

Total Cost of Ownership (TCO)

All of the costs associated with the design, development, testing, implementation, documentation, training and maintenance of a software system.

Per the textbook, what strategy is essential for a platform seeking to benefit from "same-side exchange benefits"? - Focusing on diversifying the types of services offered. - Prioritizing international expansion to new user bases. - Encouraging user interaction and collaboration within the platform. - Limiting user access to ensure higher quality of service.

Encouraging user interaction and collaboration within the platform.

What is the reduction in impurity (ΔI1, ΔI2 ) under each of these different partitions?Notes: I = impurity the partition featured in DT1 is ΔI1 and the partition featured in DT2 is ΔI2 0.01 < ΔI1 < ΔI2 < 0.05 0.01 < 0.05 < ΔI1 < 0.20 < ΔI2 0.01 < ΔI1 < 0.05 < 0.20 < ΔI2 0.01 < ΔI1 < 0.05 < ΔI2 < 0.20

0.01 < ΔI1 < 0.05 < 0.20 < ΔI2

Per the textbook, what is "machine learning" in the context of data and technology? - A type of data analysis that requires human beings to teach machines how to learn complex patterns. - A category of artificial intelligence that allows software applications to become more accurate in predicting outcomes without being explicitly programmed. - A system that enables machines to make decisions and carry out tasks without human intervention. - The process of machines collecting data and learning about users' habits over time.

A category of artificial intelligence that allows software applications to become more accurate in predicting outcomes without being explicitly programmed.

Walled Garden

A closed network or single set of services controlled by one dominant firm.

What is a general definition of a platform in business? - A standalone product that functions independently - An organizational structure that prioritizes hierarchical communication - A business strategy focusing solely on digital marketing. - A collection of essential components that enables various goods to function together

A collection of essential components that enables various goods to function together

Big Data

A general term used to describe the massive amount of data available to today's managers.

One-sided market

A market that derives most of its value from a single class of users.

Per the textbook, in terms of network effects, what distinct feature does the textbook attribute to a one-sided market? - A market distinguished by the exclusivity of one product or service category. - A market characterized by a single entity's product or service predominance. - A market operating solely within a specific geographic boundary. - A market where increased user numbers in a single group enhance its value.

A market where increased user numbers in a single group enhance its value.

When interpreting a decision tree, what does a longer path from the root node to a leaf node typically indicate? - An error in the tree construction process - A more complex decision process with multiple conditions to satisfy - A simpler decision process with fewer conditions - A less important decision outcome

A more complex decision process with multiple conditions to satisfy

What defines a business ecosystem? - A network of interdependent companies and individuals that co-evolve capabilities and align investments to create mutual value around a specific product or service. - Independent companies merging to form a single larger corporation to improve market share and reduce competition. - A coalition of companies that come together to legally corner a specific market or industry. - A conglomerate of businesses that operate under the same parent company and share resources.

A network of interdependent companies and individuals that co-evolve capabilities and align investments to create mutual value around a specific product or service.

At a cutting-edge healthcare analytics firm, you've unearthed a data pattern that proposes a transformative approach to patient care, one that could redefine existing paradigms. This discovery has caused ripples of excitement about the potential changes in patient interaction models. In the context of analytical findings, how would this insight be classified?: - A novel insight, as it unveils a previously unrecognized perspective with transformative potential - A comparative insight, as it draws parallels with established methods in different contexts - A confirmatory insight, as it validates existing strategies with more robust data - An incremental insight, as it builds upon existing knowledge to suggest improvements

A novel insight, as it unveils a previously unrecognized perspective with transformative potential

Social Network Analysis

Aims to understand how different players using social media are connected.

Per the textbook, what does the term "walled garden" refer to in the context of digital ecosystems? - A scenario in online retail where customers are only shown products that match their previous shopping behaviors and preferences. - A system where access and interactions are restricted to content, services, or applications within the confines set by the provider or platform. - The strategy of companies building virtual reality (VR) spaces for online shopping, gaming, or social interactions. - The practice of using firewalls in a digital system to prevent cyber-attacks and protect user data.

A system where access and interactions are restricted to content, services, or applications within the confines set by the provider or platform.

Business Intelligence

A term combining aspects or reporting, data exploration and ad hoc queries, and sophisticated data modeling and analysis.

Per the textbook, what does "business intelligence (BI)" primarily refer to? - The use of technology in businesses to intelligent systems that can replace human decision-making. - A smart system used in businesses for automating customer interactions only. - A term encompassing aspects of reporting, data exploration, ad hoc queries, and sophisticated data modeling and analysis. - The process of gathering intelligence on business competitors through undercover means.

A term encompassing aspects of reporting, data exploration, ad hoc queries, and sophisticated data modeling and analysis.

Machine Learning

A type of artificial intelligence that leverages massive amounts of data so that computers can improve the accuracy of actions and predictions on their own without additional programming.

Per the textbook, what role can APIs play in a digital ecosystem? - APIs are primarily used to track the online activities of users across different platforms. - APIs facilitate the integration of different services and platforms, fostering innovation and enhancing functionality across applications. - They are digital certifications that all software applications need to function legally. - APIs are advanced digital algorithms that predict an application's success.

APIs facilitate the integration of different services and platforms, fostering innovation and enhancing functionality across applications.

Blue Ocean Strategy

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

*Per the textbook, what accurately encapsulates the concept of "Big Data"? - Pertains to sizable data compilations, demanding distinct protocols and mechanisms for ethical and regulatory conformity. - An expansive term indicating vast, often unstructured data, surpassing traditional database handling capacities, critical for modern managerial tasks. - Refers primarily to extensive data sets, necessitating exceptional computational prowess for effective parsing and utilization. - Denotes data collections with intrinsic commercial worth, representing potential market commodities.

An expansive term indicating vast, often unstructured data, surpassing traditional database handling capacities, critical for modern managerial tasks.

Same-side Exchange Benefits

Benefits derived by interaction among members of a single class of participant.

How does Social Network Analysis contribute to understanding social media platforms? - By analyzing the relationships and information flow within networks. - By evaluating the effectiveness of advertisement placements. - By determining the most popular content categories. - By quantifying the financial profitability of different platforms.

By analyzing the relationships and information flow within networks.

Per the textbook, how do congestion effects challenge the principles of network effects? - By deteriorating user experience when scaling leads to system overloads or resource constraints. - By leading to legal disputes over network bandwidth usage rights. - By causing physical traffic jams during product launches in retail stores. - By overwhelming new users with too many feature choices.

By deteriorating user experience when scaling leads to system overloads or resource constraints.

How do complementors enhance the appeal of a business ecosystem to end-users? - By providing technical support to users to ensure they remain within the ecosystem. - By offering discounted services to attract users away from competing ecosystems. - By developing innovative goods that stimulate demand for the platform, supporting the ecosystem's growth. - By creating exclusive content available only to users within the ecosystem.

By developing innovative goods that stimulate demand for the platform, supporting the ecosystem's growth.

Per the textbook, how do APIs contribute to the network effects for a digital platform? - By automating data backup on different servers. - By encrypting data to prevent unauthorized access. - By enhancing the platform's visual appeal and user interface. - By enabling integration with external systems and expanding functionality.

By enabling integration with external systems and expanding functionality.

*How does the Social Graph benefit Facebook users? - By increasing the speed and efficiency of the platform's servers. - By automatically connecting users with others who have similar interests. - By providing users with monthly reports of their activities and interactions. - By enabling more relevant and personalized content in their feeds.

By enabling more relevant and personalized content in their feeds.

Per the textbook, how can technology firms "Expand by Redefining the Market" to their advantage? - By identifying and catering to underserved niches or creating new use cases for their offerings. - By engaging in frequent rebranding exercises to keep the market guessing. - By changing their company description and mission statement every fiscal year. - By legally challenging the definitions of market boundaries to suit their needs.

By identifying and catering to underserved niches or creating new use cases for their offerings.

Per the textbook, how does social proof primarily strengthen a product's position in a market? - By adopting socially responsible manufacturing practices. - By ensuring the product is mentioned in social studies. - By leveraging user testimonials and ratings to build trust among potential customers. - By offering social media features within the product.

By leveraging user testimonials and ratings to build trust among potential customers.

Content Adjacency

Concern that an advertisement will run near offensive material, embarrassing an advertiser and/or degrading its products or brands.

Multi-homing

Consumers or complementors adopt multiple platforms.

Demand-side

Consuming/Demanding Network Effects

Per the textbook, which factor contributes most directly to a product's stronger staying power in the market due to network effects? - Availability in multiple languages. - Frequent updates and bug fixes. - Increasing value as more users join the network. - Extensive offline marketing campaigns.

Increasing value as more users join the network.

Unstructured data

Data that take the form of social media comments, blog posts, other text-based communication, photos, video, audio, or any other form that is not easily arranged in structured format.

Platform business

Describes when a firm provides the infrastructure (essential components) to facilitate interactions among two or more constituents (sides).

*Which factor is less relevant to the success of platform businesses compared to traditional models? - Economies of scale - Cross-platform compatibility - Data-driven decision-making - User interaction and engagement

Economies of scale

What significant shift was facilitated by the transition from Web 1.0 to Web 2.0? - The transition from digital to analog content. - From a read-only web to an interactive web. - The reduction in social media platforms. - The limitation of content creation to professionals.

From a read-only web to an interactive web.

Per the textbook, in a network, what defines same-side exchange benefits? - Similar benefits for users regardless of their market side. - The ability to exchange products with other users. - Equal exchange rates for international transactions. - Increased value from the interaction between users on the same side of the market.

Increased value from the interaction between users on the same side of the market.

Per the textbook, what advantage does moving early in a market offer to technology companies? - It ensures the company has the first pick of physical office locations. - It allows the company to delay product development until market trends are clear. - It allows a company to establish a strong network base and set industry standards. - It ensures that the company's staff gain experience before the market evolves.

It allows a company to establish a strong network base and set industry standards.

Per the textbook, how does seeding the market aid in the promotion of a new technology product? - It helps companies test their products' viability in agricultural settings. - It allows companies to plant physical advertisements in strategic locations. - It creates an initial user base that helps in demonstrating the product's value, encouraging further adoption. - It provides a backup plan if the current market rejects the product.

It creates an initial user base that helps in demonstrating the product's value, encouraging further adoption.

Per the textbook, why is compatibility with the leading network crucial for new technology platforms? - It forces larger networks to acknowledge smaller competitors. - It requires the leading network to share profits with newer platforms. - It allows new platforms to avoid legal challenges related to patents. - It ensures interoperability and reduces the users' cost of switching, thereby encouraging adoption.

It ensures interoperability and reduces the users' cost of switching, thereby encouraging adoption.

Per the textbook, why is content adjacency important in digital advertising? - It prioritizes text-based content for ad placements, avoiding multimedia content. - It allows for ads to be randomly placed, providing equal exposure across various content. - It ensures that ads are placed next to related content, increasing the relevance and likelihood of consumer engagement. - It focuses on placing ads next to the most popular content, regardless of relevance.

It ensures that ads are placed next to related content, increasing the relevance and likelihood of consumer engagement.

In business analytics, why is it important for insights to have a clear connection to strategic objectives? - It ensures that the insights are relevant and can lead to actionable decisions. - It guarantees financial success for any initiatives taken. - It focuses on competition rather than internal growth. - It allows companies to bypass detailed data analysis.

It ensures that the insights are relevant and can lead to actionable decisions.

Within digital platforms, "multi-homing" refers to a scenario where users or providers engage with multiple platforms instead of committing to just one. What is the primary implication of multi-homing for platform competition? - It leads to market consolidation, as users tend to engage more with one platform, leading others to diminish. - It encourages monopolistic practices, as platforms seek to buy out competitors to control user bases. - It decreases overall market value, as divided user attention reduces the revenue potential for each platform. - It intensifies competition, as platforms must continuously innovate and improve user experience to maintain engagement.

It intensifies competition, as platforms must continuously innovate and improve user experience to maintain engagement.

What is true about Fabricated Content? - It is completely false content, designed to deceive and do harm. - It involves altering imagery to deceive. - It is true information presented in a misleading way. - It is genuine content taken out of context.

It is completely false content, designed to deceive and do harm.

Per the textbook, what characterizes data as being "unstructured"? - It is scattered across various digital platforms and cannot be gathered into one place. - It is not organized in a pre-defined manner or does not follow a specific format. - It consists of numbers and statistics without any accompanying analysis or interpretation. - It lacks legal structures for privacy and security regulations.

It is not organized in a pre-defined manner or does not follow a specific format.

What does it mean if an insight is described as "novel" in the context of business analytics? - It is based on newly gathered data. - It is unrelated to current business objectives. - It pertains to innovative technology only. - It provides a new understanding or perspective previously unrecognized.

It provides a new understanding or perspective previously unrecognized.

Per the textbook, why is "Leveraging Backward Compatibility" a strategic move for technology companies? = It provides an excuse for companies to not invest in new technologies. - It allows companies to minimize research and development expenditures. - It enables companies to recycle unsold products with minimal upgrades. - It reassures users that their current investments and data will remain valuable and usable.

It reassures users that their current investments and data will remain valuable and usable.

Per the textbook, how does leveraging backward compatibility influence a user's decision to adopt new technology? - It pressures users to upgrade due to fears of discontinued support. - It allows companies to resell outdated technology at a premium. - It confuses users with too many options in the product lineup. - It reduces the risk and cost associated with the transition, making adoption more appealing.

It reduces the risk and cost associated with the transition, making adoption more appealing.

What is the role of prescriptive analytics in business decision-making? - It suggests possible actions and guides future decisions. - It negates the need for human decision-making. - It solely interprets past business performance. - It predicts future business challenges with 100% accuracy.

It suggests possible actions and guides future decisions.

What is a traditional pipeline business model primarily characterized by? - Decentralized production with independent value creation - Linear flow of value through creation & distribution - Multiple points of value creation interacting in a network - Circular flow of resources and information

Linear flow of value through creation & distribution

What does the platform business model disrupt in traditional markets? - Linear value chain view - Hierarchical corporate structures - Offline retail experiences - Digital marketing strategies

Linear value chain view

What is the primary difference between supply-side and demand-side economies of scale? - Network effects are specific to demand-side economies of scale. - Demand-side economies are always positive, while supply-side can be negative. - Supply-side economies are exclusive to technological firms, while demand-side are not. - Supply-side relates to the user base size, while demand-side relates to the number of suppliers.

Network effects are specific to demand-side economies of scale.

Two-sided market

Network market that comprises two distinct categories of participant, both of which are needed to deliver value for the network to work.

In terms of value creation, how do platform businesses differ from pipeline businesses? - Platforms focus on single transactions, pipelines on customer relationships - Platforms prioritize offline growth, while pipelines focus on online expansion - Platforms rely on fixed supply chains, while pipelines are flexible - Platforms create value by enabling interactions, while pipelines do so through a series of steps

Platforms create value by enabling interactions, while pipelines do so through a series of steps

In terms of value creation, how do platform businesses differ from pipeline businesses? - Platforms prioritize offline growth, while pipelines focus on online expansion - Platforms create value by enabling interactions, while pipelines do so through a series of steps - Platforms rely on fixed supply chains, while pipelines are flexible. - Platforms focus on single transactions, pipelines on customer relationships

Platforms create value by enabling interactions, while pipelines do so through a series of steps

Per the textbook, how do "stronger staying power" and "network effects" relate in the context of digital platforms? - Stronger staying power refers to the platform's physical durability, not network effects. - Staying power and network effects are typically seen as mutually exclusive strategies. - Platforms with stronger staying power attract more users, reinforcing network effects. - Network effects reduce the need for a platform's staying power.

Platforms with stronger staying power attract more users, reinforcing network effects.

Which type of analytics anticipates future trends based on historical data? Diagnostic analytics. Predictive analytics. Real-time analytics. Descriptive analytics.

Predictive analytics.

Traditional pipeline business model

Produce value through a linear set of well-defined activities.

Supply-side

Producing/supplying Economies of Scale

API

Programming hooks, or guidelines, published by firms that tell other programs how to get a service to perform a task such as send or receive data.

Which technique is commonly used to address overfitting in decision trees? - Pruning the tree to remove unnecessary branches - Increasing the size of the dataset tenfold - Making the tree deeper by adding more levels - Ignoring the validation set while training

Pruning the tree to remove unnecessary branches

Which of the following is an essential characteristic of valuable insights in business analytics? - The volume of data points considered. - Complexity of the data used in the analysis. - The age of the data used for analytics. - Relevance to the business's goals or challenges.

Relevance to the business's goals or challenges.

Per the textbook, what defines a two-sided market in digital platforms? - The platform allows open-source development, encouraging global participation. - The platform limits its operations to two geographical markets to ensure focus and quality. - The platform offers its services in both digital and physical market spaces. - The platform facilitates interactions between two distinct user groups creating mutual value.

The platform facilitates interactions between two distinct user groups creating mutual value.

Backward Compatibility

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

Social proof

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

Root Node

The first node in a classification tree

What is the primary advantage of using collective intelligence over individual expertise? - The potential for more informed and diverse perspectives leading to better decisions. - Decreased reliance on technology. - Reduced need for specialists. - Faster decision-making processes.

The potential for more informed and diverse perspectives leading to better decisions.

What factor primarily drives the concept of demand-side economies of scale? - The diversification of products to cater to multiple segments of the market. - The expansion into global markets to increase demand for products and services. - The reduction in production costs as more units of a product are manufactured. - The increase in user demand leading to network effects.

The increase in user demand leading to network effects.

In decision tree analysis, what does 'root node' represent? - The final outcome of the decision process - The physical location where the decision is made - The initial decision point from where the tree splits - A leaf at the bottom of the tree

The initial decision point from where the tree splits

Per the textbook, what is "convergence" in the context of digital platforms? - The decision by a platform to operate in both digital and physical markets. - The tendency for different technologies to evolve toward performing similar tasks. - The collaboration between competing platforms for mutual benefits. - The reduction of digital platforms in the market due to economic downturns.

The tendency for different technologies to evolve toward performing similar tasks.

What is the primary goal of purity measures in the context of decision trees? - To increase the computational complexity of the tree-building process - To maximize the depth of the tree - To handle missing data within nodes - To ensure that each node represents a single class as accurately as possible

To ensure that each node represents a single class as accurately as possible

How do platforms within a business ecosystem typically think about their growth? - They aim to monopolize the market by acquiring smaller, potential competitors. - They consider how to create a broader ecosystem beyond their core product. - They diversify into unrelated industries to hedge against market volatility. - They focus on aggressive marketing to outperform competitors in the same industry.

They consider how to create a broader ecosystem beyond their core product.

Per the textbook, what role do complementary goods play in enhancing network effects? - They allow companies to compete in multiple sectors simultaneously. - They ensure that companies adhere to global trade regulations. - They provide short-term revenue boosts during product launches. - They increase the overall value of the primary product, encouraging more users to join the network.

They increase the overall value of the primary product, encouraging more users to join the network.

What role do complementors play in a business ecosystem? - They support growth by increasing users' switching costs and extending the platform's value proposition. - They handle the legal aspects of the ecosystem, ensuring compliance with regulations. - They mediate disputes within the ecosystem, ensuring smooth interactions between entities. - They reduce the overall cost of services by offering cheaper alternatives to users.

They support growth by increasing users' switching costs and extending the platform's value proposition.

Per the textbook, how do two-sided markets benefit from network effects? - They rely on competitive pricing to ensure both sides receive equal value. - They diversify product offerings to cater to multiple market segments. - They use aggressive marketing strategies targeted at both user groups. - They thrive on the interdependency of user groups, where the growth of one side benefits the other.

They thrive on the interdependency of user groups, where the growth of one side benefits the other.

Congestion Effects

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

In machine learning, why are training data and test data used differently? - Training data determines the user interface of machine learning applications, while test data manages the backend processing. - Training data helps the model learn during the development phase, while test data helps evaluate the model's performance and predictiveness on data it hasn't seen before. - Training data is used for visualizing data patterns before the model development, while test data is used for system hardware optimization. - Training data provides real-time data updates for deployed models, while test data is used for offline analysis.

Training data helps the model learn during the development phase, while test data helps evaluate the model's performance and predictiveness on data it hasn't seen before.

Envelopment

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

In the realm of digital platforms, the phenomenon of "multi-homing" is often observed. What best describes the practice of multi-homing? - Platforms offer a diverse range of home-based services to ensure user convenience and retention. - Users migrate from one digital residence to another, seeking better features or pricing. - Users or providers actively engage in and maintain presence across multiple competing platforms concurrently. - Platforms create interconnected home environments for users, enhancing the digital ecosystem.

Users or providers actively engage in and maintain presence across multiple competing platforms concurrently.

Per the textbook, what fundamental concept is critical for the growth of platforms like Facebook, WhatsApp, and Twitter? - Focusing on isolated market demographics. - Restricting access to platform resources. - Utilizing network effects. - Limiting user communication capabilities.

Utilizing network effects.

Novel

new and different

What metaphor is often used to describe the traditional pipeline business model? - Web of interconnected nodes - Spokes on a wheel - Water flowing through a pipe - Bridges connecting islands

Water flowing through a pipe

The Osborne Effect

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

Cross-side exchange benefit

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

Convergence

When two or more markets, once considered distinctly separate, begin to offer features and capabilities.

Covergence

When two or more markets, once considered distinctly separate, begin to offer features and capabilities.

Training Data

existing data that have been manually evaluated and assigned a class

Test Data

existing data used to evaluate the model

Predictive analytics

extracts information from past data and uses it to predict future trends and identify behavioral patterns

Dissemination

the act of spreading widely; scattering