MIS Midterm 2

The __________________ is a permanent and unique identifier baked into every network-connected device.

MAC Address

What is Facebook's incentive to create user-friendly APIs?

Make it as easy as possible for developers to create and post apps to the network. The more users you have, the more developer you attract.

social graph

refers to Facebook's ability to collect, express, and leverage the connections between the site's users, or as some describe it, "the global mapping of everyone and how they're related." Trust is one of Facebook's most distinguishing features—bringing along with it a degree of safety and comfort that enabled Facebook to become a true social utility and build out a solid social graph consisting of verified relationships.

churn rate

the rate at which customer leave the product

Rent the Runway also leverages analytics for demand pricingPricing that shifts over time (also known as dynamic pricing), usually based on conditions that change demand (e.g., charging more for high-demand items with limited availability)..

A hot summer dress available in limited quantities may be priced higher from May to August, but data will also help expose value in underutilized inventory a customer is most likely to be interested in, maximizing return from the firm's vast dress library.

switching costs

A move to another service means recreating your entire social graph. The more time you spend on the service, the more you've invested in your graph and the less likely you are to move to a rival.

A _____ is a small computer program that extends the feature set or capabilities of another application.

A plug-in is a small computer program that extends the feature set or capabilities of another application. Google allows users to install a cookie that allows them to opt out of interest-based tracking. And since browser cookies can expire or be deleted, the firm offers a browser plug-in that will remain permanent, even if a user's opt-out cookie is purged.

Rent the Runway also practices continuous deployment which is

A software development approach where an organization's developers release products, features, and updates in shorter cycles, when ready, rather than wait for centrally-managed delivery schedules.

IP address

A value used to identify a device that is connected to the Internet. IP addresses are usually expressed as four numbers (from 0 to 255), separated by periods. IP addresses will change depending on how and where you connect to the Internet. Connect your laptop to a hotel's Wi-Fi when visiting a new city, and you're likely to see ads specific to that location.

The three sources of scale advantage which the Netflix DVD-by-mail business had over rivals imitating its effort were:

A warehouse network, customer base, and long tail selection

ERP System Costs

$15 million consisting of -Software: accounted for 1/3 of implementation cost -Implementation and consulting -Infrastructure: consisted of the hardware and software required to support the system. Dependent upon what stuff they already had. -Training -Ongoing costs: -Software maintenance and support fee -Infrastructure Maintenance and support fees -On-site-staff:

There are three factors driving online ad growth trends:

(1) increased user time online, (2) improved measurement and accountability, and (3) targeting.

Understanding Vulnerabilities

- Most threats come from insiders -rogue employees can steel secrets, install malware, or hold a firm hostage -Other insider threats come from -Contract employees -Temporary Staffers -Outsourcing key infrastructure components -Partner firms such as clients and technology providers

Motivations for criminals

- any internet connected network is susceptible to security attacks - Account theft and illegal funds transfer (some steal data for personal use) (others sell stolen data to fraudsters, who use it to buy then resell goods or create false accounts via identity theft) -Stealing personal or financial data -corporate espionage might be performed by insiders, rivals, or even foreign governments - cyber warfare-technology disruptions by terrorists that cut off power to millions - Terrorism -pranks involving setting off rumeos that could have widespread repercussions -protest hacking (hacktivism) - revenge

Technology=Heart of Netflix Operations

-58 ultra high-tech distribution centers (DCs) -DCs located close to USPS facilities -Trucks collected shipments from USPS hubs and return the DVDs to nearest Netflix DC -scanners pick out incoming titles -pre-sort mail before dropping it off at USPS -DVDs hand-inspected for cracks/smudges -processes linked to Cinematch

Information securities model (9)

-Confidentiality - integrity - availability -processing -storage -transmission -policy and procedures -technology -education and training

SDCS Human Resources ERP Module

-Current HR system consisted of 30 year old mainframe code that was recently migrated to the client/server platform. -there was no true integration, and each functional area was responsible for data entry for its respective department, resulting in duplication of data entry.

Choosing an HR System

-Deciding whether to select 1 vendor who would provide all systems of ERP or use Best-of-breed (ERP system merging together a series of software system. -Tech consulting advised against the best-of-breed approach

How Rent a Runway works?

-Get high end designer dress for 10% of the actual price and loan it for 4 days -139 a month subscription to choose three fashion items

The Ideal ERP System

-Ideal ERP was where the full power of ERP was used to face challenges confronting school managers. -Ideal ERP would be where all functions of school were seamlessly integrated.

ERP and the Education Industry

-public school were still seeking for ERP solutions. -IT spending tended to be low in public schools -In private sectors ERP had seen successful as it allowed firms to increase productivity by integrating their financial, manufactures, supply chain,etc. -ERP: single database that stored all important information in common storehouse, which increased productivity. -ERP has failed more than 50% of times even with the help of consultants, so very risky.

Personnel

-this was complex as well -

Name channel phases (there are five)

1. Awareness 2.Evaluation 3.Purchase 4. Delivery 5. After sales

Concerns of Bitcoin

1. Consumer benefit needs to be stronger. 2. difficult to understand and often difficult to use 3. Bitcoin also has a reputation problem. 4. Security concerns 5. ambiguous cloud of not knowing how they will be regulated and what legal issues apply to them 6. Volatility 7. transaction volume

Motivation for partnership (there are 3)

1. Optimization and economy 2. Reduction of risk and uncertainty 3. Acquisitions of particular resources and activities.

Categories of Customer Relationship (There are 6)

1. Personal Assistance 2. Dedicated Personal Assistance 3. Self-Service 4. Automated Service 5. Co-creation: Customer assisting you. People writing review, people creating content on you tube, people helping design a product. 6. Community: How active the community is

Type of Key Resources (There are 4)

1. Physical 2. Intellectual (brand, copyrights 3. Human 4. Financial

3 Key Activities

1. Production 2. Problem Solving 3. Platform/Network

1. What is Query 2. Organic or natural search 3. Pagerank

1. Query is search 2. Search engine results returned and ranked according to relevance 3. Algorithms to rank websites. A site with more pages linking to them are ranked higher

1. What is SEO

1. Search Engine Optimization- The process of improving a page's organic search results

4 types of partnership

1. Strategic alliance 2. Coopetition 3. Joint Ventures 4. Buyer and suppliers

What are the 2 characteristics that disruptive technologies come with that make it so threatening

1. they come to market with a set of performance attributes that existing customers don't value. 2. Second, over time the performance attributes improve to the point where they invade established markets For example, the first digital cameras were bad, but overtime it became better due to innovations

Business Model Starts Here

9 blocks that shows how company intends on making money.

Benefits for designers to use Rent a Runway

98 percent of Rent the Runway customers rent brands they've never bought before. The halo-effect from a positive experience renting a designer's more daring dresses may prompt a woman to purchase more frequently-worn staples like a little black cocktail dress or accessories. Some designers are now even testing new looks on Rent the Runway, while others are developing exclusive lines for the site.

network effect

And that large user base has also attracted all sorts of firms and organizations looking to connect with Facebook's masses. Without the network effect, Facebook wouldn't exist.

When taken together, these features enlist websites to serve as vassal states in the Facebook empire.

Another aspect of the Facebook platform, Facebook's Open Graph, continues to project Facebook's influence beyond the site itself. The initiative allows developers to link web pages and app usage into the social graph, placing Facebook directly at the center of identity, sharing, and personalization-not only on Facebook but also across the Web.

Many leading content outlets use Facebook Instant Articles feature because:

Articles load faster, increasing the likelihood that they'll be read (and ads will be served)

Class 18

Articles load faster, increasing the likelihood that they'll be read (and ads will be served) Starts here

Why did competitor underestimate Netflix

Because internet pureplay without a storefront and Overall customer base was microscopic in comparison.

Tech and Timing:Creating Killer Assets

Building a great brand online starts with offering exceptional value Advertising builds awareness, but brands are built through customer experience

a classification of software that monitors trends among customers and uses data to personalize an individual customer's experience.

Collaborative Filtering

Social Engineering

Con games trick employees into revealing information or other compromising tasks

Phishing

Cons executed through technlogy Goal: leverage reputation of trusted firm or friend to trick a victim into performing an action or revealing information Spear phishing attacks specifically target a given organization or group of users

A situation where ads appear alongside text the advertiser would like to avoid.

Content adjacency problems

Content delivery networks

Content delivery networks are systems distributed throughout the Internet that help to improve the delivery speeds of Web pages and other media, typically by spreading access across multiple sites located closer to users.

Advertising based on a website's content.

Contextual Advertising

Google ads are contextual, while Facebook's are merely adjacent. Explain**

Contextual advertising is advertising on a website that is relevant to the page's content. Google robots automatically serve ads that relevant to your users. For example, if you run a movie review blog, AdSense might serve contextual ads to buy movie tickets or sign up for a movie streaming service. The ads are selected from the inventory of advertisers who register through AdWords. Adjacent Advertising...

Text ads appearing on Google search pages are billed on a(n) _____ basis.

Cost per click

What are the four main areas that the nine blocks cover

Customer, offer, infrastructure, financial variability

deep linking

Deep linking allows an advertisement to launch an app and call up requested information, say, clicking a Pinterest link for a vintage handbag and jumping immediately to bag vendor's page within the Etsy app.

Inception Phase

Define system's goal -facilitate organization's competitive strategy -support business processes -improve decision making Determine Project Scope -may be influenced or limited by users, processes, or facilities Assess feasibility of project (proof of concept) -Costs -Schedule -Technology -Organizational Feasibility

Social Network Analysis. Who in this network is more important?

Depending on how you define importance: People who have most ties with others People who bridge two otherwise isolated networks People who have the least degrees of separation from other others People who connect to other important people

Design Phase

Develop and evaluate alternatives Hardware design determined by project team Software design depends on source

Physical Threats

Dumpter diving Shoulder surfing Eavesdropping

True or False It can be easier to recruit employees before a firm goes public, since staff granted shares and options may see an upside at IPO.

Facebook also finds that in a voraciously competitive high-end technical job market, the firm no longer has the promise of a massive IPO pay-day as a recruiting lure.

What does it take to run this thing?

Google doesn't disclose the number of servers it uses but estimates say it runs over 1.4 million servers in over a dozen worldwide server farms (massive network of computer servers running software to coordinate their collective use.

The district planned to start with which one first and why?

HR- to mitigate risk because it would require the least modification of the three.

Level 2: Retaining Users How can u predict that users will stick

Investors look for products that have accruing benefits as the user engages, and mounting losses if the user leaves.

Which of the following is true of Amazon Web Services (AWS)?

It allows anyone with a credit card to access industrial-strength, scalable computing resources.

Advertisements that are targeted based on a user's query are referred to as _____.

Keyword Advertising

What are the 4 Tavel's Hierarchy of Engagement

Level 1: Growing the users Level 2: Retaining Users Level 3: Self Perpetuating Level 4: Billion dollar business

Enabling Factors (5 facts)

Liberalization of global economies digitization og business processes Proliferation of computing and telecom Education outside of US, Europe, and Japan Propagation of worldwide business culture (now everyone has VC)

Moving From Atoms to Bits: Opportunity or Threat?

Many media products created as bits (digital files with 1s and 0s) When we buy a CD, DVD, book, or newspaer, we are buying physical atoms that are a container for the bits Advantage to moving from atoms and bits -Netflix will eliminate a huge chunk of shipping and handling costs -bandwidth costs are minimal

New Ad Models

Marketers need to rethink how they advertise to take advantage of the social graph. Advertisers hope to reach many consumers with similar interests via engagement ads

Keywords that prevent an ad from showing up when specific terms are present.

Negative keyword

How Netflix Works Describe DVD-by-mail

Netflix chooses a DVD-by-mail service model -It charges a flat-rate monthly subscription -Customer pay no mailing expenses or late fees Disk arrive in Mylar envelopes containing: -prepaid postage -return address After watching the video, consumers: -Slip the DVD back into the envelope =Drop the disc in the mail

8. Key Partnership

Network of patters and supplier that makes business work.

PMP

Non-profit organizations that manages projects

Mobile is Tougher, But Global Players Have Big Mobile Platforms

On the Web, Facebook can test an innovation by rolling it out to a subset of users and gauging their reaction. But this so-called A/B testing is harder with mobile.

What test showed them that this was really going to work?

One test involved purchasing 100 dresses and setting up a popup rental shop for college students.

But what if you want the content on your website to remain off limits to search engine indexing and caching?

Organizations have created a set of standards to stop the spider crawl, and all commercial search engines have agreed to respect these standards. One way is to put a line of HTML code invisibly embedded in a Web page that tells all software robots to stop indexing a page, stop following links on the page, or stop offering old page archives in a cache. Users don't see this code, but commercial Web crawlers do.

Facebook is the current winner

Platform

1. Customer Segment

Refers to the different people and enterprise that an organization intends to serve.

Expanding with New Models

Rent the Runway has an opportunity to move to a subscription business, further enhancing the concept of the "closet in the cloud." Customers can buy items they like at a discount. Customers are currently not used to subscribing to fashion, so convincing them to try this model may be a challenge.

What is System Development

Requires the development of all 5 IS components Requires more than technical expertise -Establish system goals -setting up the project -determining project requirements -requires business knowledge and management skills

Benefits of Outsourcing(4)

Save costs Gain expertise Free up management time Refocus on core competencies Ex-Yelp storage is outsources to Amazon

Key System Development Issue

Scope, schedule (time), resources (money, people, equipment).

The practice of running and optimizing search engine ad campaigns is referred to as

Search Engine Marketing

The practice of designing, running and optimizing search-engine ad campaigns is known as:

Search engine marketing

Competition

Since its IPO in 2002, Netflix survived big incumbent competitors, low cost newcomers, and price wars.

Supervised Learning Algorithms Support Vectors Machine:

Typically used for classification but can be transformed to perform regression. Ex. Predict how likely someone will click on this.

4 important facts

Wiring money or data across the globe is easier By 2015, 3 billion people-alomst half the world will speak more or less fluent englis VC and innovation is increasing outside the U.S Firms tht source offshore often realize cost savings of 40-70%

Exceptional customer experience fuels

a strong brand that makes Amazon the first place most consumers shop online Having more customers allows the firm to provide more products, creating scale. Amazon also opens its website up to third-party sellers—a dynamic where more customers attract more sellers, which attracts still more customers

Deep Learning

a type of learning that can process wider range of data resources--more accurate than machine learning (image classification, voice recognitions, facial recognition)

Google has attempted to demonstrate sensitivity to user privacy concerns by:

allowing users to leverage a cookie and a plug in that opts them out of interest-based tracking.

Economists often consider the marginal costs of digital goods

are effectively zero

Supervised Learning Algorithms simple neural network

artificial neurons make 3 layers. 1. Input 2. a hidden layer where calculate takes place 3. Output

Streaming content has increased a viewing habit of consumer multiple episodes or whole seasons of programing, known as:

binge watching

The advantage of an ICO for issuing firms is that they _______________ .

can raise capital with limited to no regulation

Facebook's advertising future

has been helped by large growth in the lucrative app-install ad market. Firms such as King, Disney, and Warner Bros. are spending millions of dollars per month marketing their games on Facebook, allowing the firm's Mobile App Install program to bring in business totaling in the hundreds of millions of dollars.

Supervised Learning Algorithms gradient boosting trees

multiple trees tht generate decision sequentially. corrects errors from the previous one, and the final output is the combinations of the results froms all trees.

An industry practice whereby content is available to a given distribution channel for a specified time period, usually under a different revenue model is known as _____.

windowing

True or False In a significant "big data" play for more accurate consumer targeting, Facebook now allows advertisers to combine externally collected data with Facebook's insights.

True

A method of charging for advertising whenever a user responds to an ad by performing a specified activity such as signing up for a service, requesting material, or making a purchase.

CPA (Cost-per-action)

5. Revenue Stream

Cash the company generates from each customer

Google's Ad Hunt versus Facebook's Ad Hike

FB ads get a much lower CTR: 0.04% versus Google's 2% Unlike Google ads, Facebook ads aren't directly related to the visit Potential problems of bad content adjacency for advertisers (Their brand ad is showing next to a bad brand ad) Google ads are contextual, while Facebook's are merely adjacent

True or False IP addresses provide Google with perfect geographic targeting in queries.

False Geotargeting via IP address is fairly accurate, but it's not perfect. Some ISPs may provide imprecise or inaccurate information on the location of their networks, or be be so vague that it's difficult to make a best guess at the geography. Proxy servers, third-party computers that pass traffic to and from a specific address without revealing the address of the connected users, can also mask an IP address.

Supervised Learning Algorithms Decision Tree:

Highly interpretable classification that splits data-branches representing different nodes

Outsourcing

Hiring another organization to perform services. Moving a task across firm's boundaries

Geotargeting

Identifying a user's physical location (sometimes called geolocation) for the purpose of delivering tailored ads or other content.

Supervised Learning Algorithms Random Forest

Improves the accuracy of general decision tree by generating multiple decision tree, and taking a vote to predict output, which is a continuous variable. Ex. predict call volume for staffing decisions

What does offshoring mean for you?

In order to be successful in job today means - non routine, complex, high value-added knowledge work - Strong interpersonal and communication skills -Ability to coordinate and work on a global scale -Cultural mindfulness

In order to achieve a negative cash conversion cycle a firm would want to:

Increase its account payable period and its inventory turns.

Test the system

Test plan Product Quality Assurance Beta testing-future system users try out system on their own

Social Proof

The "Find Women Like Me" tool, which allows women to enter key parameters: height, bust size, dress size, and age, then combs through thousands of images to show social proof in the form of what real women are wearing.

customer acquisition costs

The amount of money firms spend to acquire a customer. The cost to acquire a customer must be less than reasonably estimated customer lifetime value (i.e., it should cost you less to bring in a customer than the value that customer will eventually return to your business). The greater this gap, the more profitable the customer. Customer Acquisition Costs < CLV = NPV (future customer profits)

Facebook Applications

The app will have to be hosted, as it is NOT stored by Facebook. You must use Facebook's API + FQL + FBML to translate HTML & SQL.

Cost Structures

The cost incurred to run a business

What is the 'creosote bush effect'?

The desert-dwelling creosote bush excretes and drops a toxin that kills nearby rival plants that might otherwise siphon away resources like water or soil nutrients. Threatened managers can act just like the bush-they'll pull high-quality engineers off emerging projects if a firm's top offerings need staff to grow. Lucrative old tech has a credible case for big budget allocations and is first in line when planning corporate priorities. Managers can act like the rival-killing creosote bush, pulling high-quality engineers off emerging projects if a firm's top offerings need staff or other resources to grow.

Wiemann wanted to implement a ERP (Enterprise Resource Planning), what are the 3 ERP he wanted to install?

The district has issued a request for proposal (RFP) for -Finance -HR -Student Information Software

A Fashion Company with a Technology Soul

The firm's CEO and co-founder, Jenn Hyman, describes the firm as a "fashion company with a technology soul." The firm leverages mobile, social, big data, and advanced tech-enabled logistics to deliver on the promise of "Cinderella Moments."

The Success and Impact of Open Graph

The initiative allows developers to link Web pages and app usage into the social graph, placing Facebook directly at the center of identity, sharing, and personalization—not only on Facebook but also across the Web. With just a few lines of HTML code specified by Open Graph, any developer can add a Facebook "Like" button to his or her site and take advantage of the social network's power of viral distribution. Facebook also offered a system where website operators can choose to accept a user's Facebook credentials for logging in. Users like this because they can access content without the hurdle of creating a new account. Other efforts allow firms to leverage Facebook data to make their sites more personalized. Firms around the Web can now show if a visitor's friends have "Liked" items on the site, posted comments, or performed other actions. Using this feature, Facebook users logging into Yelp can see a list of restaurants recommended by trusted friends instead of just the reviews posted by a bunch of strangers.

Mounting Losses

The longer you stay with the product, the more you have to loose by leaving

Accruing Benefits

The more you use the product, the better it gets because the customers add data to the product, either explicitly or implicitly, and the company uses the data to improve customer's experience.

4. Customer Relationship

The type of relationship the company wants to keep with its customer

Messenger: A Pillar Business Building Facebook's Future

To make messenger more valuable, Mark acquired CEO of Paypal. Messenger has bulked up, and now includes key features of other leading messaging apps: group messaging, stickers, location sharing, notifications if your message has been seen, recording and sending audio messages. It's also a Skype competitor, offering free VoIP (Voice over IP) Internet calls. Under Marcus, Messenger has also expanded to become a tool for corporations to communicate with customers. Firms can now use Facebook to send customer updates (receipts, shipping information), and can use Messenger for customer support chat. And the Facebook Messenger Platform allows firms to build AI (artificial intelligence) powered chatbots that interact with customers using natural language and can learn from interactions and preferences over time. With a PayPal guy at the helm, Messenger has also become a payments platform Facebook has introduced a platform that allows developers to build their products that integrate directly via Messenger

Traditional Web Applications

Traditional Web Application: Browser on your computer sends HTTP request to Web/App Server, which works with database to find information, and outputs it via HTML back to the Browsers on your computer. All web applications - like your HTML assignment - must be HOSTED on a SERVER in some physical location. Web apps use HTML code to call up data and objects, such as photos.

What the two different type of revenue strem

Transaction Revenue- Resulting from one time customer payment Recurring Revenue-ongoing payment to either provide the value proportion or provide post customer purchase support

Which of the following factors shifts bargaining power to the suppliers of streaming video content?

Video content is perfectly differentiated, and as we learned in the Strategy and Technology chapter, providers of differentiated goods also have stronger bargaining power. There are only a small number of firms offering high-demand content, essentially operating as an oligopoly with concentrated supplier power. Over the past several years, the ranks of bidders jostling elbows at the streaming media negotiating table has increased. When you buy a DVD, you own it for life, but streaming costs are usually licensed for a limited time period.

Facebook allows any developer to add a Facebook "Like" button to their site with just a few lines of HTML code. What advantage do websites leverage by integrating this feature?

Viral Distribution

Which of the following statements is true about Facebook's acquisition of WhatsApp?

WhatsApp's share of the global mobile messaging market was so much greater than Facebook's, Zuckerberg saw WhatsApp as the best way for Facebook to remain relevant in this market.

The Long Tail in Action Why traditional retails doesn't work

-Netflix offers 100,00+ DVD titles -Traditional retailers lack shelf space -Traditional retailers determine break even point by considering -Number of customers that can reach a location -Store size -Payback from inventory -Cost to own and operate the store

Killer Asset Recap: Understanding Scale

-Netflix's size = huge scale advantage -Scale economies allow firms to -Lower prices -Spend more on customer acquisition, new features, or other efforts -Smaller rivals have an uphill fight -Established firms end up straddling online and brink and mortar markets -Economics of Scale = Profits

The ERP Big Picture at SDCS

-People thought SIS (Student Information System) would revolutionized district operations, but Weimann said it only provided 50% of functionality that the district needed. -Therefore, HR first because had more knowledge and experience.

Employee Benefits

-Required a lot of manual work and was complex -SDCS offered many things and the benefits department was monetering everything

ERP in School District: A quite Revolution

-SAP, Oracle, and all were diverting their focus from private sector to education industry. -Started building things such as SIS (Student Information System) specific to education industry. -Prices charged to education clients dropped due to slow economy. -Firms were cutting prices since so many districts were now interested: firms can now generate economic of scale. -Consulting firms also focused on coming with the best solution for education industry.

Continuous Process Improvement

-Staff members are expected to focus on improving the firm's business processes -Quality management features are built into information systems -Netflix can monitor and record the circumstances surrounding any failures

Studio Alliance and The Long Tail

-Studios earn% of subscription revenue -Netflix gets DVD's at very low costs -Studios spend no $$ on additional marketing

Payroll

-The payroll division had several areas and handled more than 28 forms to process various pay actions -Time and labor collection- most district used paper time cards. -Paycheck Processing- was done twice a month and had a lengthy process

Founding the Business: Are We On To Something? Define: product/market fit Define:MVP

-They tested product/market fit 1)The first step wasn't about building a website or a logistics system, it involved running low-tech tests to prove that they were really on to something. These tests amounted to quickly developing what entrepreneurs often call the minimum viable product ( allows the team to collect customer feedback and to validate concepts and assumptions that underlie the business idea.)

Level 1: Growing the users

-Users have to complete core action

SDCS Background

-Very large school(2nd largest in Cali) -District embarked on an effort to improve teaching and learning in the classroom. -This reform got a lot of national attention since it was one of the largest in history -Largest goal of reform was to modernize business practices.

Agile Software development

-lower project risk -break larger projects into smaller projects that can be completed weekly -Organize sprints with small teams to complete project deliverable and often -Daily scrum review of progress and feedback loops.

Prototypes

-mock up of an aspect of system -help users evaluate requirements -reinforce that this is only a mock up

System Implementation Timeline

-to implement one module of ERP took 24 months -Several ERP modules implementation could take up to 5 years

Persistent Risk

-too good to be true -ERP didn't deliver what it had promise to deliver to school districts. -across the nation, districts reported a very low level of satisfaction with ERP.

3 Unique Problems for School Districts

1) Limited Budget -Managers spent low on IT -used inferior substitute due to low funding -under invest in consultants when implementing ERP (Should spend way more on consulting). 2) Under-Qualified Personnel -District's IT staff consisted of former teachers who excelled at using tech in classroom -When implementation of ERP began, district started using more consultants, which resulted in few staff developing the skills 3) Changing Leadership -Superintendents didn't stay very long. The longest stayed was 6 years -Constantly changing leadership was crippling many districts's effort to modernize the ERP

Name the different types of customer segment and provide description (There are 5)

1) Mass Market: Large group of people with similar needs. Mostly found in electronics market. 2) Niche Market: Only certain people want it. Often found in supplier-buyer relationship. Ex. some organizations heavily depend on one supplier for things 3)Segmented: Describes clients based on money 4)Diversified: Amazon, serve customers with very different needs 5) Multi-sided platform: both segments are required to make the business work. Free newspaper needs to attract advertisers and advisers need to finance

What are the distinct elements that caters customer's needs(there are 11)

1) Newness 2) Performance- improving products and services 3) Customization- tailoring products to a specific group of customers. Recently mass customization and co-creation has gained importance. 4) Getting the job done- helping customers get certain work done 5)Design-Apple 6) Brand/Status 7)Price 8)Cost Reduction 9)Risk Reduction 10) Accessibility-middle class can afford expensive things, mutual funds, private jet 11) Convenience/usability

Name Channels types and if they are direct or indirect(there are 5)

1) Sale Force (Direct) 2) Web Sales (Direct) 3)Own Stores (Indirect) 4) Partner Stores (Indirect) 5) Whole sellers (Indirect)

ERP System Benefits

1) Tangible cost saving-resulting from staff reduction, reduce printing costs, processing errors, and space costs 2) Productivity Improvement 3)Soft benefits

Risks

1)Scope Creep: If implementation time took longer than cost will dramatically increase 2)Wide scale development: Deploying a new system to multiple users and location greatly increased the risk of project faliure 3) Issue Escalation: issue would have to be resolved asap, or snowball effect 4) Organizational Change Risks specific to education industry 1) Negotiations: universities negotiate poorly resulting in poor agreements 2) IT Experience: IT departments in schools aren't that progressive or experienced 3) Software Modification: need a lot of money for modication after buying the system

Ways to generate revenue strems(there are 6)

1. Asset Sales-books, pens, car, etc 2. Usage fee-the m ore you use, the more you pay 3. Subscription fee 4. Lending/Renting/Leasing 5. Licensing 6. Brokerage fee 7. Advertising

3 Goals of Information Security Programs

1. Confidentiality: Prevent the disclosure of sensitive information. 2. Integrity- The protection of system information or process from intentional or accidental modification 3. Availability- the assurance that system and data are accessible by authorized users when needed

Customer relationship may be driven by what 3 factors

1. Customer Acquisitions 2. Customer retention 3. Boosting sales

Machine learning provides predictions and prescription (Types of analytics)

1. Description- describe what happened 2. Predictive-anticipate what will happen 3. Prescriptive-Provide recommendations on what to do to achieve goals.

Why is IS development Difficult

1. Difficulty of determining requirements 2. Requirements changes as system develops 3. Schedule and budget difficult to estimate 4. Techonology changes-how to adapt 5. Diseconmies of scale -As development team grow, average contribution per worker decrease

Common Types of fraud attempted

1. Enriching Click Fraud: when site operators generate bogus ad clicks to earn CPC income. Enriching Impression fraud: when site operators generate false page views (and hence ad impressions) in order to boost their site's CPM earnings. Depleting Click frauds: clicking a rival's ads to exhaust their CPC advertising budget. Depleting impression fraud—generating bogus impressions to exhaust a rival's CPM ad budget. Rank-based impression fraud—on sites where ad rank is based on click performance, fraudsters repeatedly search keywords linked to rival ads or access pages where rival ads appear. Disbarring fraud—attempting to frame a rival by generating bogus clicks or impressions that appear to be associated with the rival, in hopes that this rival will be banned from an ad network or punished in search engine listings. Link fraud (also known as spamdexing or link farming)—creating a series of bogus websites, all linking back to a page, in hopes of increasing that page's results in organic search. Keyword stuffing—packing a website with unrelated keywords (sometimes hidden in fonts that are the same color as a website's background) in hopes of either luring users who wouldn't normally visit a website, or attracting higher-value contextual ads.

Business can be cost driven or value driven. Provide Sample characteristics(there are 4)

1. Fixed Costs 2. Variable costs 3. Economies of scale 4. Economies of scope

Sevel Well-established trends

1. Global sourcing will continue to grow 2. Keyword will be "global" 3. Sourcing will move up the food chain- right now the focus is minor stuff like customer care, but later on it will move up to more complex things such as chip design, graphic serch, etc. 4. Talent will be more important than cost 5. Scale will decline dramatically 6. Sourcing will become more personal- more tutoring 7. More two way traveling

Communication between web browser and web server can identify:

1. IP Address 2. Type of browser The ability to identify a surfer's computer, browser, or operating system can also be used to target tech ads. For example, Google might pitch its Chrome browser to users detected running Internet Explorer, Firefox, or Safari; while Apple could target Mac ads just to Windows users. 3. Computer Type 4. Computer Operating System

Interactive Design Process (5)

1. Inception Phase 2. Analysis Phase 3. Design Phase 4. Construction Phase 5. Production and Implementation

Design Thinking 3 Stages

1. Invest a future- Customer's want but don't have. Observe and ask questions about their behavior. 2. Test your ideas out- Conduct experiments and see how they respond and adjust everything accordingly. 3.Bring the new product and service to life. When have the winner, identify the resources your company will need to produce it and distribute it.

Understanding the Major Types of Machine Learning

1. Supervised Learning: Learn the relationship between given input and the output. 2. Unsupervised Learning: explore input variables without given an explicit output variable 3. Reinforcement Learning: Learns a task by trying to maximize rewards it receives for its action. Interacts with the environment

Benefits of Bitcoin

1. cuts out transaction fees 2. micropayments (or small digital payments) 3. boon for international commerce, especially for cross-border remittance and in expanding e-commerce in emerging 4. bitcoin straddles the line between transparency and privacy. All transactions are recorded in the open, via the blockchain, but individuals can be anonymous. You can create your anonymous private key and have someone transfer funds to you or earn bitcoin via mining and no one can see who you are.

Managing Risks

Accept transfer mitigate avoid

An effort that links advertisers to Web sites and other content providers (e.g., app firms, games) that are willing to host advertisements, typically in exchange for payment.

Ad Network

2. Third-party cookies are usually served by:

Ad networks An organization cannot read cookies given to a user by another firm. Cookies from Web sites that a user might not have visited (third-party or tracking cookies) are served by ad networks or other customer profiling firms.

Ad Rank =

Ad rank= f(Maximum CPC, Quality Score, expected impact of extensions and formats)

Brook's Law

Adding more people makes the project later

dynamic search ads

Ads generated automatically based on the content of a website. Dynamic ads are particularly useful for firms with rapidly updating inventory or firms struggling to keep up with new search terms that may be relevant to their product lines.

CPA

Advertisers pay each time a person does something (sale, lead,etc.)

CPC OR ppc

Advertisers pays each time a Web site visitor clicks on an ad

CPM

Advertisers pays for every thousand times an ad is displayed.

A cost-per-action program, where program sponsors (e.g., Amazon, iTunes) pay referring websites a percentage of revenue earned from the referral.

Affiliate Program

Which of the following is a benefit derived from Amazon's use of Kiva robots in its fulfillment centers?

Allows warehouses to store more product Cuts average order fulfillment time Reduces unload time for inbound inventory

Linkfraud

Also called "spamdexing" or "link farming." The process of creating a series of bogus websites, all linking back to the pages one is trying to promote.

Physical Retail—When Brick and Mortar Has a Role in an Online Business

Amazon does pure play (only sells online) because they sell products that customers are already familiar with. However, Rent a runways sells stuff that people aren't that used to. Rent the Runway's move into physical retail locations allows the firm to continue to offer online efficiencies for most of its customers, but it also creates an opportunity for some customers to have a high-touch in-person experience. Rent the Runway's stores are focused on customized, high-value customer engagement. Customers go online to book an appointment with an in-store stylist, and technology is leveraged to enhance the store visit. Customers give information in advance on the type of event they're planning to attend and they can share additional information that might allow stylists to pull product for their appointment and be best prepared for their arrival.

IP Address

An IP address not only helps with geolocation, it can also indicate a browser's employer or university, which can be further matched with information such as firm size or industry. Ability to identify a surfer's computer, browser, or OS can be used to target tech ads Greatest personalization and targeting comes from Cookies, which are line of identifying text, assigned and retrieved by a Web server and stored by your browser.

The factors that can determine a given ad's Quality Score in Google include:

An ad's quality score includes an ad's click-through rate (CTR), or the number of users who clicked an ad divided by the number of times the ad was delivered (the impressions). The CTR measures the percentage of people who clicked on an ad to arrive at a destination-site, a key measure of the performance quality of a given ad.

The biggest challenge Rent the Runway faces when trying to increase initial and repeat customer adoption comes from:

As with many new efforts, the biggest challenge to adoption comes not from a given competitor, but rather from inertia. A challenge that most unknown and unfamiliar new product offerings face.

what is bitcoin

At its core, bitcoin is a standard for securely exchanging value and recording ownership over the Internet without an intermediary.

Customer Evolution

Average customer income is around $100,000.For these savvy, affluent consumers that value experiences ahead of ownership, Rent the Runway is the smartest, most convenient way to shop.

Why Outsource (4 Reasons) monetary related

Business case for outsourcing varies by situation, but reasons often include one or more of the following: Lower costs (economies of scale or lower labor rates) Lower ongoing investment in internal infrastructure Control of budget more tightly for predictable costs Get work done more efficiently or effectively

Bots-herders

Business model

Managing Large Scales system development project (more people problem) (4)

Challenges include 1.Coordination 2. Diseconomes of scale (adding more poeple increases coordination requirements) -configuration control (changes must be carefully managed and monitored) -Unexpected Events (chance of disruption due to unanticipated events)

3. Channels

Channels are customer touch points that play an important role in customer experience. Companies can choose to reach its customers through it own own channel (direct) or partner channels (indirect)

Production/implementation

Convert business activities from old system to new -Pilot (Dad moves in alone) move in one by one. If system fails, it only affects minited unit -Phased (Whole family moves in, but only to the living room and kitchen) New system installed in phase. Tested after each phase. Continues until installed at entire organization. -Parallel (Live in both houses at once, which is secure but expensive) New system runs in parallel with old system during testing. -Plunge (Move into new, bow up the old) direct instalation. no back up

What makes CineMatch valuable?

Cinematch data creates switching costs. Netflix churn rate was below 3% (Churn rate: the rate at which customers leave a product or service) Netflix's marketing costs benefit from satisfied customers, as referrals are better received by customers than advertisement.

Cinematch: Profitable Data Asset

Cinematch-Netflix's proprietary recommendation system Each time a DVD is returned, Cinematch asks customer to rate it

Supervised Learning Algorithms Naive Bayes:

Classification Technique that applies bays theorem that calculates the probability of an event based on the previous knowledge

A line of identifying text, assigned and retrieved by a given Web server and stored by your browser.

Cookies Server: Then take this unique string of numbers and letters (called a cookie). I'll use it to recognize you from now on.

Earned Media vs. Paid Media

Customers arriving at the site via the earned media (Positive influence created when someone finds out that others are doing something) of a fashion blog have a 200 percent higher conversion rate than customers arriving via the paid media (Refers to efforts where an organization pays to leverage a channel or promote a message. paid media efforts include things such as advertisement and sponsorships)of search engine ads

Analysis Phase

Determine and document features and functions -Interview users -Document requirements Approve requirements less expensive to change system in this phase

So What's It Take to Run This Thing?

Facebook has extraordinary data storage needs that are growing at breakneck speeds. The Facebook cloud, A collection of resources available for access over the Internet. (the big group of connected servers that power the site) is scattered across multiple facilities Much of what powers the site is open source software (OSS)Software that is free and whose code can be accessed and potentially modified by anyone.. Facebook also developed its own media serving solution, called Haystack. Haystack coughs up photos 50 percent faster than more expensive, proprietary solutions, and since it's done in house, it saves Facebook costs that other online outlets spend on third-party content delivery networks (CDN). Systems distributed throughout the Internet (or other network) that help to improve the delivery (and hence loading) speeds of Web pages and other media, typically by spreading access across multiple sites located closer to users. Akamai is the largest CDN, helping firms like CNN and MTV quickly deliver photos, video, and other media worldwide. like Akamai.

APIs (Application Programming Interface)

Facebook's Application Programming Interface (API) are instructions programmers follow to create and post applications on the site.

Facebook Ads: Despite Post-IPO Concerns, a Massive Potential Upside is Realized

Facebook's ability to better manage supply and demand to improve pricing, leverage data for targeting, and create lucrative new ad products and formats have kept growth engines oiled and fueled for expansion. And no one doubt's Facebook's mobile ad muscle now that mobile brings in more than 80 percent of the firm's ad revenue.

True or False Rent the Runway is able to keep costs down by running online-only. All customer service is handled online rather than via more expensive phone reps.

False Stylists can help women with product selection or other insight, and are available via phone calls, emails and online chat.

True or False ARM has been so successful because its chip designs can run any software originally designed to run on Intel chips.

False Unlike Intel-compatible rival AMD, ARM chips can't run Intel software, so all of a firm's old code would need to be rewritten to work on any ARM-powered servers, laptops, or desktops.

True or False Intuit has shifted from the disruption caused by the emergence of cloud computing by shifting to markets for packaged software.

False Intuit has been a leader in several packaged software categories, including personal finance (Quicken), small business (QuickBooks), and tax prep (TurboTax) software, but has effectively shifted to cloud-based offerings, some of which are initially free. So-called connected services that either run in the cloud or enhance existing offerings make up over 65 percent of the firm's revenues.

True or False In order to expand earned-media reach, organizations should include a request at the end of their Facebook posts that requests that users reshare the information.

False. Don't beg for likes or reshares. That'll get your post punished, decreasing its reach.

True or False. By default, a post by a "liked" firm or friend will appear in your feed.

False. Not everyone sees every post to their feed; like Google, Facebook uses a secret and constantly refined algorithm that attempts to identify what you're most interested in, while cutting "spammy" content.

Which of the following is perhaps the most significant contributor to Facebook's ability to strengthen and deliver user value from the social graph?

Feed

Market Cap

Firm Value= Share price **Number of shares

Facebook Feed: Viral Sharing Accelerated

Firms and products that you "Like" on Facebook can post messages that may appear in your news feed (where you can like and comment on their posts and share the messages virally), making Facebook a key channel for continued customer engagement. The evolving "Like" button now allows users to share "reactions" including "wow," or that they are "sad" or "angry," which each interaction adding to Facebook's data asset and offering deeper insight on users and posts. like Google, Facebook uses a secret and constantly refined algorithm that attempts to identify what you're most interested in, while cutting "spammy" content.

Price Mechanism Fixed vs. Dyamic

Fixed Pricing 1. List Prices-fixed prices for individual products 2. Product features dependent- price depending on quality of value proposition 3. customer segment-price depending on type of customer segment 4. volume dependent Dynamic Pricing 1. Negotiations 2. Yield Management-inventory and time of purchase. Ex. Hotel 3. Real-time market-priced based on supply and demand 4. Auctions

Why Outsource (4 Reasons) non monetary related

Focus on core competencies Make up for lack of in-house resources Increase flexibility to meet changing business and commercial conditions Access to innovation and thought leadership

8. Google's ad network gives it:

For Google, its ad network is a distribution play. The ability to reach more potential customers across more websites attracts more advertisers to Google.

Data

For operations, data exposes bottom-line impacting variations such as, how long do certain materials last, how prone are they to needing repair, and how does this impact cost and any prep delay before certain types of dresses can be sent out again? The website and mobile app can then track online engagement and deliver a host of customer metrics—where a customer clicks, what she's searching on and which products she's returning to. The firm's recommendation engine is continually refined, not just for dress suggestions, but also as feedback is gathered on the conversion rate for accessories and other products offered for purchase. A/B testing is used to continually refine the firm's approach through constant experimentation. More data will also provide even more insights on fit for a given body type—nudging customer satisfaction even higher.

Advertising and Social Networks: A Challenging Landscape but a Big Payoff

Fortunately for the firm, online advertising is hot. For years, online advertising has been the only major media category that has seen an increase in spending, but google is way more successful with online advertising.

Facebook in 60 seconds (List the 10 facts)

Founded as drunken experience in Harvard dorm 4 thousands users in two weeks 1 million users in 10 months Zuckerberg passed on offers from MTV and Yahoo Started in college market, expanded to high school, now open to world Microsoft pays $100 million a year to broker ads Microsoft pays $240 million for 1.6% stake = $15B Almost a billion users Private company - projected revenue $4.6 billion Facebook IPO

Social Graph (4 Key Points)

Global mapping of users, organizations, and how they are connected is called the social graph The term was coined by Mark Zuckerberg, founder of Facebook You are at the center The larger the graph - the larger the switching cost

Strategic Issue

Goggle leads in search ad for its unmatched network effects; however, switching costs are very low. Defeating Google with some sort of technical advantage will be difficult since Web-based innovation can often be quickly imitated.

Challenges in Monetizing the Social Graph

Google Advertisement poses a huge challenge for Facebook. Google's search engine advertisements displayed during a consumer's search are based on the key words typed into the search engine Google gets a 2% click through rate (CTR) Google gets paid every time a consumer clicks on a sponsored link

how can a firm recognize potentially disruptive innovations?

Increasing conversations across product groups and between managers and technologists can also be helpful. It's common for many firms to regularly rotate staff (both management and engineering) to improve idea sharing and innovation. Facebook, for example, requires employees to leave their teams for new assignments at least once every eighteen months

Bringing Potential Rivals and Platform Powerhouses into the Facebook Family

Instagram-Because of photo sharing and mobile centered app, fb acquired it. WhatsApp-this acquisition wasn't about increasing Facebook's total revenue; as TechCrunch stated, it was about surviving the global shift to mobile. Oculus VR-Facebook's $2 billion purchase of Oculus VR is a long-term bet at keeping the firm at the vanguard of computing's evolution.

Explain how google works

It doesn't search the web. It searches the database. "Spider" crawl the web reading web pages and reporting back to google's database. You can also submit your site to search engine for indexing. Search terms are matched against the database using a proprietary algorithm. This requires a whole bunch of servers in many server farms!

International Outsourcing

Large companies outsourced outside of U.S because of large, well-educated, English-speaking population that works for 20%-30% of .S labor costs Also advantages for customer support and other functions that operate 24/7

Response to crime

Law enforcement agencies dealing with computer crime are often outnumbered, outperformed, and underfunded

Supervised Learning Algorithms Linear Regression:

Linear Regression: Highly Interpretable, modeling the past relationship independent input, and dependent output.

Critical Path Analysis

Longest Pathway Sequence of activities charted Used to determine the earliest date a project can be finished. Longest path through the network of activities -Task dependencies compressed as much as possible

Risk of Outsourcing

Loss of control Benefits outweighed by long term costs -High unit costs,forever -paying for someone's else's mismanagement -may not get what you pay for but don't know it No easy exit -Critical knowledge in the mind of vendors -Expensive and risky to change vendors

Busting the Bad guys

Lots of click from a single IP make bad guys easy to spot Click farms: A network of users and computers engaged in coordinated click fraud. Since the different computers leverage different IP addresses, click farms can be more difficult to detect. Zombie Network: Hordes of surreptitiously infiltrated computers, linked and controlled remotely. This technique is used to perpetrate click fraud, as well as a variety of other computer security crimes. Search firms and ad network software use data patterns and other signals to ferret out other fraud types Rank based impression fraud Spamdexing-a number of methods such as repeating unrelated phrases to manipulate relevance of resources indexed by a search engine. Keyword Stuffing

Customer Engagement Mobile

Mobile represents even more customer convenience.Booked a calendar item on your phone? The same device can be used to select a dress and reserve it for the big event. Shortly after Rent the Runway launched its first mobile app, mobile spiked to over 40 percent of firm traffic, and continues to rise. Problem: Despite the success of mobile, as mentioned in the Facebook chapter, many experimental features and A/B tests are more easily conducted on the Web. Changes on a firm's website are immediately available to all users the next time they visit the site, and it can be easier to run experiments by showing new features and design changes to a subset of users who access the site via a browser. For mobile apps, users may have to download a new version of the app, problems take longer to fix, and updates take longer to distribute for wide use.

Facebook published a set of application programming interfaces (Programming hooks, or guidelines, published by firms that tell other programs how to get a service to perform a task such as send or receive data. For example, Amazon provides application programming interfaces (APIs) to let developers write their own applications and websites that can send the firm orders) that specified how programs could be written to run within and interact with Facebook. What was the benefit of this?

Now, any programmer could write an application that would live inside a user's profile. Developers could charge for their wares, offer them for free, or even run ads. Facebook lets developers keep earnings through their apps. Facebook, becoming a platform meant that each new third-party app potentially added more value and features to the site without Facebook lifting a finger

Among the many ad products Facebook offers are "___________," which increase the reach of an item that a firm shares.

Promoted Posts While disappointing to marketers who have worked hard to cultivate a fan base on Facebook, it can't come as a surprise that Facebook would one day limit the free-ride on its service and attempt to commercialize fan pages by promoting post reach. Among the many ad products Facebook offers are "Promoted Posts," which increase the reach of an item that a firm shares. Expect firms with a substantial Facebook following, especially those that have seen solid results from past campaigns, to boost their advertising as a result.

Summary of Operations and Logistics

Rent the Runway leverages technology to run a reverse logistics business in which every product that is sent out to a customer must also come back. Technology is used to schedule and prioritize inventory flow. Product must also be washed, perhaps repaired, and prepped for send-out in what is often a very small window of time for completion. Despite relying so heavily on technology, many aspects of Rent the Runway's business still need human participation.

Customers Like It—But What About Suppliers? Growing the Customer-base and Creating a Win-Win

Rent the Runway needed to buy from designers in bulk, and at a discount, in order for the model to work. Designers weren't that confident because it could damage their brand. Rather than cannibalizing sales, Rent the Runway is now seen by many designers as a vital partner: an experiential marketing channel that introduces high-end designer brands to new customers.

Errant Apps and the Challenges of Running a Platform

Scrabble game, despite its popularity, created by the Agrabal brothers was bad because they didn't have legal rights. While the Facebook Scrabulous app is long gone, the tale serves to illustrate some of the challenges faced when creating a platform. In addition to copyright violations, app makers have crafted apps that annoy, purvey pornography, step over the boundaries of good taste, and raise privacy and security concerns. The Wall Street Journal has reported that unscrupulous partners had scraped personal information from the profiles of Facebook users and then sold the information to third parties—a violation of Facebook's terms of service that created a firestorm in the media. Other app firms were accused of scamming users into signing up for subscriptions or installing unwanted software in exchange for game credits. Platform owners beware: developers can help you grow quickly and can deliver gobs of value, but misbehaving partners can create financial loss, damage the brand, and sow mistrust.

Facebook Takes on Search What is Dark Web, and how is this related to Facebook? Graph Search

Sites that can't be indexed by Google and other search engines are referred to as the dark Web. since much of Facebook is private, accessible only among friends, most Facebook activity represents a massive blind spot for Google search. some speculate that if Facebook can tie together standard Internet search with its dark Web content, this just might be enough for some to break the Google habit. Facebook has introduced Graph Search, intending to evolve search beyond the keyword. With Graph Search, Facebook allows users to draw meaning from the site's social graph and to find answers from social connections. Planning an outdoorsy getaway and looking for ideas from friends you trust? Use Graph Search to collect photos of friends at National Parks. Some have claimed Graph Search could become a primary source for job placement, travel info, and even dating.

Cookies

Small text files placed on your computer by websites you visit Can help personalize a page, target ads, or monitor traffic Cookies are not executable, so they can't replicate and are not virus However, due to browser mechanism to set and read cookies, can be used as spyware.

spiders, Web crawlers, software robots

Software that traverses available websites in an attempt to perform a given task. Search engines use spiders to discover documents for indexing and retrieval.

What were the mistakes of API

Some applications were accused of spamming friends with invites to install them (Facebook eventually put limits on viral communication from apps). There were also security concerns, privacy leaks, and apps that violated the intellectual property of other firms

Class 17- Facebook

Starts Here

Class 19 Rent a Runway

Starts Here

Disruptive Technologies

Starts Here

Facebook More from the Reading

Starts Here

Goggle

Starts Here

Netflix Starts Here

Starts Here

Outsourcing

Starts Here

Artificial Intelligent and data mining starts here

Starts here

Information Security

Starts here

Software Project Management

Starts here

Construction Phase

System must be built System testing Users must be converted to new system

Customer Engagement Social

The mobile device isn't just the store—it's a world-connected camera to capture and share looks and fuel up a hyper-viral word of mouth machine leveraging the firm's biggest fans as its most persuasive marketers. Referrals matter. Rent the Runway sees a 75 percent higher conversion rate from friend referrals than from other marketing methods. When it became clear that customers loved sharing their experiences online, the firm launched photo reviews on the Rent the Runway website. At first this seemed a bit risky. Would customers consider it icky to see other women in their dresses? It turns out the community was much more altruistic and supportive—pretty much the opposite of what one finds in YouTube comments.

Yahoo! and the Squandered Mobile Opportunity

The mobile team leader left the company, while other members of the pioneering mobile unit were scattered to other teams and had trouble convincing browser-centric managers that mobile was the future. In many ways, Yahoo!'s mobile team was premature, but more importantly, it didn't have an executive champion to protect and nurture the team during the pioneering phase when financial results couldn't be realized.

But what if I Don't Want a Cookie

The most popular Web browsers allow you to block all cookies, block just third-party cookies, purge your cookie file, or even ask for your approval before accepting a cookie. if you block cookies, you block any benefits that come along with them, and some website features may require cookies to work properly. deleting a cookie breaks a link between your browser and that website, if you supply identifying information in the future (say by logging into an old profile), the site might be able to assign your old profile data to the new cookie.

factors that determine an ad's quality score have included an ad's click-through rate (CTR) what is CTR

The number of users who clicked an ad divided by the number of times the ad was delivered (the impressions). The CTR measures the percentage of people who clicked on an ad to arrive at a destination-site.

2. Value Propositions

The reason why customers turn to one company over the other. It is about what the company offers to its customer segment.

Facebook's Dominance on the Desktop

The site simply turned on a substandard photo-sharing feature and quickly became the biggest photo-sharing site on the Web. The firm serves as many views a day (4 billion) as YouTube, and followed Twitter's Periscope with it's own Facebook Live video streaming tool, even paying celebrities and media companies to create and share content on the site. Facebook even wants to be your better address book, business directory, and phone dialer. The firm's Android-only Hello App matches phone numbers of your calls to Facebook profiles so you get a better caller ID with more info about who you're talking to (e.g., a friendly heads-up it's the caller's birthday).

Network Effects

The value of a product or service grows as more users are consuming it More Facebook friends you have, the more value the site provides Facebook tools bring users together through Games, Apps, Chat, Feeds, Email, Media

True or False Facebook actually cut back on ads in newsfeeds, resulting in higher profits.

True

Why Mobile Is Different and in Some Ways Better than the Desktop. He points out that there are at least four areas where the competitive dynamics of smartphone apps differ from browser-based desktop services: 5 key things that distinguishes mobile.

User's Address book: Smartphone apps can access a user's address book. This makes it easier to rebuild the social graph for a new mobile service. Could Storage: Smartphones apps can access a phone's media library and can often plug into cloud storage. This makes it easier to share photos and video than on desktop services. Push Notifications: Smartphone apps can use push notifications, a huge benefit for increasing engagement. While desktop services needed to rely on e-mail notifications or hoped users remembered to return to a Web site, push notifications from a service instantly say, "Hey, there's something new here for you to pay attention to," and offer single-tap re-entry into a service. Icon reminder: Smartphone apps also get an icon on the home screen. A constant visual reminder for a service. Single-tap access is also far better than bookmarking or typing in a URL. Less Real Estate: While a desktop site can crush a new competitor by adding a feature as a new menu item or icon, on mobile there isn't the screen real estate for this—another reason mobile seems to favor single-purpose, specialized apps.

Level 3: Self Perpetuating

Users have to create virtual loop. The strongest virtual loop is network effect. Hard to create virtuous loop. It propels a company forward.

How do users make their video choices?

Users make their video choices in their "request queue" at Netflix.com Consumer use the website to -Rate videos -Specify movie preferences -Get video recommendations -Check out DVD details -Share their viewing habits and review

How has Mark Z. exerted his control on fb?

When Facebook filed to go public, Zuckerberg's ownership stake stood at 28 percent, but Facebook created two classes of shares, ensuring that Zuckerberg maintains a majority of voting rights in the public company and virtually guaranteeing that his control of the firm continues, regardless of what investors say. Maintaining this kind of control is unusual (although not unprecedented—Google's founders have a similar ownership and voting structure).

What happened when Netflix went public?

When it went public, financial disclosure rules forced the firm to reveal how profitable it was. Rivals such as blockbuster and wal-mart showed up

Click Fraud

When stakes are high and an opportunity to cheat arises, some will take it!

Operations and Logistics

a one-of-a-kind orchestration of luxury good selection, cleaning, repair, packaging, shipping, return, and inspection that's executed over and over again. No one has done anything like this at the scale of Rent the Runway. New Jersey distribution center, about the size of two football fields, isn't just the firm's primary warehouse; it's the largest single dry cleaning operation in the United States

Rent the Runway is one of the many practitioners of agile software development which is

a systems development technique that leverages cross-functional, self-organizing teams designed to rapidly leverage business knowledge and software development skills

Relate your understanding of Netflix dominance in the DVD-by-mail business to what you learned in the Strategy and Technology chapter: what three resources for competitive advantage did Netflix create in this market that rivals Blockbuster and Walmart couldn't match?

brand, scale, data asset

Firms face two key challenges when advertising on social media

content adjacency(Concern that an advertisement will run near offensive material, embarrassing an advertiser and/or degrading their products or brands) user attention-The Hunt versus the Hike -Users of Google and other search sites are on a hunt—a task-oriented expedition to collect information that will drive a specific action. -Users go to Facebook as if they were going on a hike—they have a rough idea of what they'll encounter, but this often lacks the easy-to-monetize, directed intent of search. -Click through rates are lower in fb -Most banner ads don't charge per click but rather CPM, or cost per thousand impressions(n impression is measured each time an ad is served to a user for viewing, i.e. each time an ad appears on someone's screen. But Facebook banner ads performed so poorly that the firm pulled them in early 2010.)

Removing an organization from a firm's distribution channel thereby collapsing the path between supplier and customer is known as _____.

disintermediation

Pricing that shifts over time usually based on conditions that change the demand is called ______________.

dynamic pricing

dark Web

either behind corporate firewalls or inaccessible to those without a user account—think of private Facebook updates no one can see unless they're your friend—all of that is out of Google's reach.

t or f Computers help make sure shelvers stack similar items next to each other. The goal? Make sure that if an order picker seeks something like Legos, they'll find all of the firm's offerings in one spot.

f Amazon software enforces an additional rule when stocking shelves: no two similar products sit next to each other. While this makes Amazon's shelves look like an unorganized hodgepodge, when a product is the only one of its type in a given area, this actually reduces the chances that a picker will confuse a size or color or otherwise grab the wrong thing.

t or f The use of Kiva robots has also allowed Amazon to radically reduce headcount, saving the firm additional money by cutting its workforce.

f While robot workers are cheaper than people, Kiva isn't a job-killer; in fact, Amazon has actually increased staff since deploying the robots. Says the firm's VP of Worldwide Operations, "Kiva's doing the part that's not that complicated. It's just moving inventory around. The person is doing the complicated work, which is reaching in, identifying the right product, making sure it's the right quality, and making sure it's good enough to be a holiday gift for somebody."

Offshoring

involves moving a task across geographic boundaries. refers to getting work done in a different country, usually to leverage cost advantages.

The Long Tail in Action..why does it work

it works because -the cost of prodution and distribution drop -It gives the firm a selection advantage that traditional stores cannot match -geographic constraints go away and untapped markets open up

At the heart are three pillars of Amazon's business:

large selection, customer experience, and lower prices.

The phenomenon whereby firms can make money by selling a near-limitless selection of less popular products is known as the

long tail.

6. Key Resources

most important asset required to make business work.

Recurrent Neural Network

multiple neural network that can store information in context nodes allowing it to learn data sequence and output a number or another sequence. Ex. Predicting the next word in the sentence.

Convolution Neural Network

multiple neural network with a special architecture designed to exact data from each layer to give the most accurate output. Ex. Processing an image

Context for examining while studying Facebook (there are 5)

network effects platforms, partnerships issues rolling out new technology privacy

Strategic Concerns for Platform Builders: Asset Strength, Free Riders, and Security

potential for weakened assets: Right now, everyone goes to Facebook because everyone else is on Facebook. But Facebook, or any firm that opens up access to users and content, risks supporting efforts that undermine the critical assets of network effects and switching costs. If you can get Facebook content on other sites, why go to Facebook? revenue sharing: Too much data portability presents a free rider problem in which firms mooch off of Facebook's infrastructure without offering much in return. As an example of this tension, Facebook and Twitter, firms once known for their openness, have begun to erect walls to make it more difficult for users to integrate their services. Twitter users used to be able to click on an Instagram photo and have it displayed directly in the Twitter app or in a pop-up window in Twitter-owned TweetDeck, but doing so prevents Facebook from wrapping Instagram content in messages, collecting "Likes," and—although it doesn't currently do so—running ads. security: Security breaches can occur on any site, but once the data is allowed to flow freely, every site with access is, for hackers, the equivalent of a potential door to open or window to crawl through

When site operators tag users according to which page they visit on their site and reintroduce products on other visited sites is known as_______________

retargeting

he term __________________________________________________ refers to showing ads for products and services from a site that a user has previously visited.

retargeting

Amazon reports a negative cash conversion cycle, which means it:

sells goods before it has to pay its suppliers.

t or f Turn Testing looks to distinguish activity of a human user and a computer operated through artificial intelligence.

t

customer lifetime value

the idea is to predict the value of future profits that will accrue from acquired customers, so CLV is often stated as the net present value

7. Key Activities

the important things that the company must do to make business model work

Why Big Firms Fail

they listen to their customers and focus on the bottom line. And because of the first characteristic mentioned, the majority of a firm's current customers don't want the initially poor-performing new technology.

Supervised Learning Algorithms Linear quadratic discriminant analysis:

upgrades a logistic regression to deal with non-linear problems. Changes in input doesn't affect output

Supervised Learning Algorithms Logistics Regression:

used for classifying tasks, meaning the output variable is binary (black and white) rather than continuous

IP targeting cannot reliably identify individual users because:

users are assigned different IP addresses as they connect and disconnect from various networks.

Facebook Apps

users derive additional value through online apps, which people can use for free or a small fee You can play games such as Scramble or Word Jumble and share with friends who also like word games Basically, a lot of people engage in platform application because of the large amount of people that are on Facebook.

Supervised Learning Algorithms AdaBoost

uses multiple models to come up to a decision but weighs them based on their accuracy in predicting the outcome.