CMIS 526 Exam 1

Legal issues in EC

Taxation- sales taxes, Internet freedom act where Internet sales are treated like Mail order sales digital rights management- preventing unauthorized duplication, restrict which devices can play media, limit number of times immediate can be played net neutrality- should the internet be open or should internet access come first to the highest bidder Sales taxes have historically not been levied on companies selling to consumers in different states. EC both reduces state sales tax revenues and makes local business less competitive as compared to out‐of‐state online retailers.

Five Megatrends: The Internet of things

- A broad range of physical objects that can automatically share data over the internet. - The industrial internet of things (IIoT) enables the convergence of IT and operations technology to enable mass-prodcued customized products - The IoT is a network that can automatically share data over the Internet. With the ability to connect "things" such as sensors, meters, signals, motors, actuators, or cameras, the potential for gathering useful data is limitless. Examples include: • Monitoring home temperatures while on vacation remotely • Alerting drivers of parking spaces and traffic volumes • Cardiac monitors alerting physicians of potential health risks • Smart cities, smart homes, and e-health.

Business models in the digital world

- A business model is a summary of a business's strategic direction that outlines how the objectives will be achieved - A business model is a summary of a business's strategic direction that outlines how the objectives will be achieved; a business model specifies the value proposition, as well as how a company will create, deliver, and capture value. - Organizations need to determine the best business model to apply in order to be successful. This section will take a look at several of these models that can be considered

Data: the root and purpose of information systems

- Alone, raw data are not very useful - When processed, data transforms into information - When information is understood and used for decisions, it becomes knowledge - Data are the raw symbols, such as characters and numbers that we capture every day. • Once data are processed and analyzed, the data become information. Even this isn't enough with which to make decisions. • To make decisions, we need to understand the context of the information and the environment in which we want to use it. • Knowledge is the ability to understand information, form opinions, and make decisions or predictions based on the information.

An information system that works: FedEx

- Delivers millions of pounds of freight to 220 countries, handles 50 million tracking requests every day, updates system

Organizational Decision making levels

- Executive/strategic level (upper management) - Managerial/tactical level (middle management) - Operational Level (operational employees, foremen, supervisors) - Most businesses have three levels of management, with one or more layers of managers in each level. • The executive management includes top‐tier management focused on long‐term strategic business decisions such as how to compete, price versus quality, and what countries to do business in. • Middle or tactical management is focused on running the organization to meet the strategic goals, and typically has a management time frame of 3 to 12 months. Typical decisions might include where additional stores in existing markets should be opened. • Operational employees and management perform the day‐to‐day work of the organization, making decisions on a day‐by‐day basis. • A shift manager at a Walmart would be operational management, whereas a store manager at a Walmart would be at the lowest level of middle or tactical management.

IS for supporting strategy: Doing things smarter

- Firms have a competitive strategy - IS should be implemented to support the organizations strategy o A strategic mentality towards IS results in finding ways to sue IS to achieve a chosen strategy by innovation, streamlining operations, or optimizing the value chain o A strategic view of IS results in creating a computer-based loan application process to process loans faster and better than rivals - Although automating and learning are good approaches to information systems, ensuring that expenditures are for systems that match the corporate strategy is also critical. It wouldn't make sense for a low‐cost car manufacturer to implement a highly sophisticated and very expensive quality control system that rivaled the quality control systems of Mercedes, because that isn't why customers are buying their cars, and the system wouldn't generate an appropriate return in investment.

Five IT Megatrends: Big Data

- IDC estimates that in 2013, 4.4 zettabytes of data were generated and consumed - What would that amount equal? It is 4.4 trillion GB or the equivalent of about 140 billion 32GB iPads - Forecated to grow to 180 zettabytes by 2025 - Increasing amounts of data increases the ability to detect meaningful relationships and other insights which can contribute to business success - Businesses continue to gather ever more data from internal and external sources. More collected data are from both structured and unstructured sources, such as natural language postings about a business.. • This presents new opportunities if it can be properly analyzed and mined for information. • The resources required to mine Big Data pose tremendous challenges for business. • Big Data is a key part of "business intelligence,"

E-auctions

- Individual sellers can sell or barter items at online auctions, consumers place bids, examples are ebay.com and swap.com, revenue model based on small transaction fees highly profitable

IS organizational learning: Doing things better

- Information systems can track and identify trends and seasonality - Managers can use this to plan for timely staffing and training for personnel - Information systems can track information and identify how the business is functioning in general and at different times of the year. Managers can learn from this information and utilize it to run the business more efficiently, planning in advance how they handle seasonal demand fluctuations or changing business processes that are flawed and generating problems, such as approving loans that will be defaulted.

Information systems defined

- Information systems use information technology to collect, create and distribute useful data - Five components of information systems o Hardware o Software o Telecommunications o Data/information o People - Organizations: the context of information systems - As we discuss information systems, its important to know what they are, and what they aren't. The learning objective for this section is for you to be able to explain what an information system is, including the components. A key part of this is the element of data, as well as the difference between data, information, and knowledge. Data: The Root and Purpose of Information Systems Hardware, Software, and Telecommunications Networks: The Components of Information Systems People: The Builders, Managers, and Users of Information Systems

Five IT Megatrends: Mobile Devices

- Many believe that we are living in a post-PC era - In developing world mobile devices often leapfrod traditional PC's - Implications o Consumerization of IT o Bring your own device to work is a major concern o Security concerns - One of the biggest trends we see today is the move towards Mobile Devices. In developing nations, the vast majority of adults have mobile phones. In the developing world, mobile devices are frequently seen leapfrogging traditional PCs. This can lead to both opportunities and challenges both for managers and marketers such as: • Employees can conduct business almost anytime, anywhere. • Customers have their phones with them 24/7, allowing them to be reached throughout the day, wherever they may be. • This trend facilitates the increasing "consumerization of IT." • It also leads to security issues, as managers need to deal with employers' preference of "bring your own device" (BYOD).

Enabling organizational strategy through IS

- Organizational decision-making levels - Organizational functional areas - IS for Automating: Doing things faster - IS for Organizational Learning: Doing things better - IS for supporting Strategy - Identifying systems for supporting strategy - Identifying how to compete: choosing a generic strategy, resources and capabilities, and analyzing the value chain - The role of IS in value chain analysis - The technology, strategy fit

Five IT Megatrends: Social Media

- Over 4.6 billion and growing Facebook users share status updates or pictures with friends and family. - Companies harness the power of the crowd by using social media to get people to participate in innovation and other activities. - Organizations use social media to encourage employee collaboration. - The rise of Social Media is largely based on the network effect, referring to the notion that the value of a network increases with the number of other users. Examples include: • Facebook users share status updates or pictures with family or friends • Users use apps such as Snapchat, Twitter, WhatsApp to communicate • Professors use social networks to provide students with course related updates • Companies use the power of the crowd to participate in innovation and product designs • Chapter 5 focuses on social media.

Sources of Competitive Advantage

- Quality- Toyota - Service- IBM - User base- Facebook - Proprietary- Coke - Innovation- Apple - Brand- Nike - Value- Nintendo - Data- uber

fintech

- Refers to technologies that support activities in the financial sector Big data analytics has brought about many radical changes for this industry. For instance, using data analytics, the banking and finance industry is able to look at a customer's credit worthiness to determine the amount of loan the customer could handle

Examples of IS careers

- System analyst, programmer, operator - Network administrators - Database administrators - IS auditor - Since the first computers decades ago, an entire ecosystem has grown up surrounding the development, implementation, support, use, and maintenance of information systems. This ecosystem includes multiple types of highly skilled professionals, and expanding use means that demand continues to grow for those with advanced or unique skills. IS careers can be very rewarding, both financially and in terms of job satisfaction. Salaries for developers range from $60K to six figures. IS manager salaries are often in the six figures, and for executive positions like CIO can exceed $300K!

Value chain analysis

- The process of analyzing an organizations activities to determine where value is added to products or service - Used to identify opportunities where information systems can be used to gain a competitive advantage - Value chain analysis can highlight opportunities in which information systems implementation can make an organization more effective and efficient and can secure a competitive advantage. - By identifying the cost structure at each level of the value chain and benchmarking against competitors, organizations can identify changes that will enhance performance

Key Reasons for outsourcing

- To reduce or control costs. - To fee up internal resources. - To gain access to world-class capabilities - To increase the revenue potential of the organization - To reduce time to market - To increase process efficiencies - To be able to focus on core activities. - To compensate for a lack of specific capabilities or skills. In addition to the help information systems give to outsourcing other business processes, information system processes are also subject to outsourcing. • Information systems outsourcing is done for the same reasons for as other business processes. • The prime driver for information systems outsourcing is also cost reduction, just like for other types of outsourcing. • Other drivers include outsourcing to more effective companies and allowing a business to focus on its core business activities.

Categories of IS

- Transaction processing systems TPS - Management information system MIS - Decision support system DSS - Intelligence system - Business intelligence system - Office automation system - Knowledge management system - Social software - Geographic information system GPS - Functional area information system - Customer relation management CRM - Enterprise resource planning system ERP - Supply chain management system - Electronic commerce system - Mobile app

Five Megatrends: Cloud Computing

- Web technologies enable using the internet as the platform for applications and data - Applications that use to be installed on individual computers are increasingly kept on the cloud (gmail, google docs, google calendar) - Can enabled advanced analytics of massive amounts of big data - Much of the functionality of applications previously installed on your computer can now be accessed over the cloud. • Cloud computing is really about sharing technology resources and taking the pain out of using and sharing data and applications. • A major advantage is backup and reliability. If your computer breaks, you haven't lost your data. • Also, you can access your files from any computer. For example, have you ever used Dropbox? • It requires connectivity to function, so the constant connectivity we see at work and play is a key enabler. • Mobile computing has further added to the value of the cloud metaphor.

Possible fraud indicators

- email addresses, shipping and billing addresses, transaction patterns - In e-commerce transactions, there is no imprint of the physical card and no cardholder signature, so online merchants have to be especially careful when deciding whether or not to make a transaction. Online merchants often use automated fraud screening services that provide the merchants with a risk score based on a number of variables such as match between shipping address, billing address, and phone number; the time of the order and the customer's time zone; transaction volume; and the customer's IP address and its geographic location.

Ways to protect yourself when shopping online

- use a secure browser - check the site's privacy policy - read and understand the refund and shipping policies - keep your personal information private - give payment information only to businesses you know and trust - keep records of your online transactions and check your email - review your monthly credit card and bank transactions Make sure that your browser has the latest encryption capabilities; also, always look for the padlock icon in your browser's status bar before transmitting sensitive information. Make sure that the company you're about to do business with does not share any information you would prefer not to be shared. Make sure that you can return unwanted/defective products for a refund. Make sure that you don't give out information, such as your Social Security number, unless you know what the other entity is going to do with it. Make sure that you don't provide your payment information to fly-by-night operations. Make sure that you don't miss important information about your purchases. Make sure to check for any erroneous or unauthorized transactions.

Executive level

. Information systems at the executive level are focused on helping executing managers understand the current business status through: • executive information systems that often show aggregate business performance data, and • tools to support executing decision making, such as forecasting and planning tools

A business model reflects the following

1. What does a company do? 2. How does a company uniquely do it? 3. In what way or ways does the company get paid for doing it? 4. What are the key resources and activities needed? 5. What are the costs involved?

6 capabilities of the web

1. global information dissemination- products and services can be marketed over vast distances for example a global audience has access to the trailer for Universal Pictures fast and Furious 6 2. Integration- websites can be linked to corporate databases to provide real time access to personalized information for example customers can view real time fares on www.usairways.com 3. Mass customization- firms can tailor their products and services to meet customer's particular needs for example customers can build their own Messenger bag on timbuctoo.com 4. Interactive communication- companies can communicate with customers improving their image of responsiveness for example customers can receive live help through text or video chat on landsend.com 5. Transactional support- clients and businesses can conduct business online without human support for example customers can purchase everything from books to kitchenware on Amazon.com 6. Disintermediation- cutting out the middleman and reaching customers more directly and efficiently for example U.S. Airways can sell tickets directly to customers without the need for travel agents

Revenue Models in the digital world

A revenue model describes how the firm will earn revenue, generate profits and produce a superior return on invested capital - Affiliate marketing - Advertising - Subscriptions - Licensing - Transaction fees/brokerage - Traditional sales - Freemium - The most important ingredient for any organization is determining how to generate revenue. A revenue model describes how the firm will earn revenue, generate profits, and produce a superior return on invested capital.

A sharing economy

A sharing economy has been defined as an economic system in which assets or services are shared between private individuals, either free or for a fee, by the means of the internet A sharing economy, like the platform-based business model, results in a shared ownership of products as they are produced and improved. These new models have a high expectation in the innovative technology marketplace.

Bitcoin

Bitcoins are a virtual currency that exists in the technology world. Unlike credit cards and payment services (PayPal) where fees are added, Bitcoins have no extra charges. Bitcoins are akin to cash payments in that they are anonymous

Enhancing communication using social media

Blogs- topical blogs of interest to customers and critics called blog amateurization of journalism Microblogging- post new to customers, an example is Twitter which is limited 240 characters for example Coca cola's official Twitter account instant messaging- enables multiple participants to have conversations for example whatsapp allows group chats free text Companies can enhance their communication through the effective use of social media. Depending on the objectives, many different tools can be implemented. For example, a company may have experts write blogs on topics that customers find interesting and would like to know more about.

Types of electronic commerce

Business to consumer (b2c)- transaction between businesses and their customer, someone buys something from amazon Business to business- transaction among business, a manufacturer conducts business over the web with its supplier Consumer to business- between customers and businesses, a person offers his photography at shutterstock.com Consumer to consumer- a person purchases some memorabilia from another person via ebay.com There are many types of EC, based on who is interacting with, or selling to, whom. Business‐to‐consumer is businesses selling to consumers; consumer‐to‐business is consumers selling to businesses. As a consumer, you mostly make use of B2C. Perhaps you also use eBay to auction off items you no longer need, which is a form of C2C. Has anyone ever sold something to a business (C2B)?

New Revenue and Pricing Models

Companies can earn revenues not only through traditional sales, but also through subscription, licensing, or transaction fees and both companies and individuals can earn money through Web advertising or affiliate marketing

IS for automating: Doing things faster

Computers can automate existing business processes to varying degrees. Depending on the process, this may or may not be significant. In the above example, going from a manual process to a fully automated process changed the total time for loans under $250K from 25 days to 15 minutes.

Choosing a generic strategy

Determining how a company competes is one of the most important decisions an organization must make. This model will help organizations determine how best they can compete in the marketplace to counter the effects of the five forces.

E-government

Gov to citizens g2c Gov to business g2b Gov to gov g2g Governments use e‐government to increase efficiency and effectiveness, much like businesses do. By reducing paperwork and allowing for the electronic dissemination of information and the automated processing of transactions, governments can significantly reduce operating costs while increasing services. Examples of this might include the electronic filing of income tax returns, the online filing of business license applications, or the ability to share data electronically between different law enforcement agencies.

Challenges of operating in the digital world

Government - Political instability - Regulatory laws, standards, individual freedoms Geo-economic - Infrastructure differences - Demographics - Welfare - Worker's expertise Cultural - Language differences, beliefs, attitudes, religion, life focus There are new challenges to operating in the digital world as well as new opportunities. In addition to the expected challenges of culture, varying worker demographics, and political instability, there are additional challenges as different countries pass varying information system regulatory controls affecting privacy, standards, information ownership, and information censorship. These additional challenges are requiring information-based, Internet centric companies (like Google, Facebook, etc.) to fundamentally alter the products and services offered in different countries • this undermines the fundamental benefits of ubiquity and standardization associated with Internet-driven globalization.

Internet Marketing

Historically, companies' advertising budgets were mostly spent on noninteractive advertising campaigns, such as billboards, newspaper, radio, or television ads. However, by 2013, 42 percent of U.S. online adults were accessing the Internet multiple times a day from multiple devices and locations. In response to these changes, companies are reallocating their advertising budgets; in 2014, organizations spent 24 percent of their advertising budgets on Internet marketing; research firm Forrester estimates that by 2019, companies will spend 35 percent of their advertising budgets on Internet marketing, including search marketing, display ads, e-mail marketing, social media, and mobile marketing.

group buying

If many people agree to purchase the product or service, they get significant discounts

Managerial or tactical level

Information systems at the managerial, or tactical, level are focused on helping middle management exercise control more efficiently and effectively and on helping them make semi‐structured decisions with better input and resources

Information systems for competitive advantages

Information systems hold great promise for organizations, but also pose significant risks. The learning objective for this section is for you to be able to describe the dual nature of information systems, how they may help and how they may harm. Like FedEx, many organizations are leveraging information systems to do business more effectively and efficiently. This may simply improve the bottom line, or it may give a significant business advantage to organizations and allow them to have an edge over their competitors. This type of leverage can be applied by organizations of all sizes and industries. Firms of all types and sizes can use information systems to gain or sustain a competitive advantage over their rivals

Valuing innovations

Innovation is key for organizations attempting to gain or sustain a competitive advantage Innovation- involves creating new products or services that return value to the organization ' Radical innovation- also known as disruptive innovations, use markedly new or different technologies to access new customer segments and significantly greater benefits To differentiate itself, an organization often must deploy new, state-of-the-art technologies to do things even better, faster, and more cheaply than rivals that are using older technologies.

Successful innovation is difficult

Innovation is often fleeting and risky- such as the battle between HD DVD and Sony's blue ray Innovation choices are often difficult Open innovation can prove to be beneficial when you integrate external stakeholders into the innovation process Innovation can bring great rewards, but it typically isn't easy. Some innovations only give a short‐term advantage; they are readily copied by competitors once they see it works. And when there are competing technologies, there is no guarantee that the one a company chooses to embrace will become the market standard, making large investments risky. Finally, companies often have to choose a limited set of options to pursue out of a wealth of opportunities. Resources are constrained; time is limited, and the information about the different options is imperfect.

e-finance

Is the use of IS to provide financial services and markets e-finance consists of: E-banking and online brokerage - Paying bills online using electronic bill pay - People can turn to multiple sites to het the latest information about stock prices

Mobile E-commerce

Location based mobile Commerce- services can be offered tailored to a person's needs based on their current location information on the go- customers can get further information about a product wherever they are including the store but this can lead to showrooming product and content sales- consumers use mobile apps to make purchases on the go Mobile commerce has seen tremendous growth in the past few years. M-commerce is any electronic transaction or information interaction conducted using a wireless, mobile device and mobile networks. Powerful mobile devices, such as Apple's iPhone and iPad or Samsung's Galaxy, support high-speed data transfer and "always-on" connectivity. The increasing use of tablets is seen as a major driver of mobile commerce.

Enhancing cooperation with social media

Media sharing- via Flickr Instagram, Vimeo, YouTube, slide share Tagging- manually adding metadata to contact Geo tagging- geospatial data added Social bookmarking- allows users to refine data social cataloging- creation of categorization system by users Cooperation between users can be increased through the use of cooperative tools, where everybody gets to take advantage of each user's contributions. This can include cooperative efforts to find, tag, bookmark, or catalog Web content. This builds a repository of useful information references that can be accessed by other participants, who are also contributing to the pool for the greater good.

Porter's Five Forces

Model developed by strategy expert Michael Porter that identifies five competitive forces that influence planning strategies. Rivals within your industry- Competition in price, product distribution, and service Geographic reach, ease of product comparison, price competition New Entrants- Increased capacity in industry, reduced prices and market share. Reduced entry barriers and eased critical resource access Customer's bargaining power Reduced prices, demand for better quality service. Wider customer choices, lower switching costs, higher customer bargaining power Supplier' bargaining power Increased costs and reduced quality Equalized access to suppliers Threat of substitute products Potential returns on product, decreased market share, customer loss New substitutes created by Internet and IT Information systems can help offset many competitive forces, such as computer‐aided design and manufacturing, to help firms meet customer demands when customers have a high degree of bargaining power.

online classifieds

Online classifieds - just advertising, no online transactions, freecycling, an example would be craigslist.com - Consumer‐to‐consumer e‐commerce allows consumers to achieve a fair price for goods, which they otherwise might not be able to achieve. E‐auctions allow consumers to sell rare and unusual items to a world market. Online classifieds allow consumers to sell and search for products locally, reaching a wider audience but still facilitating what is often a local face‐to‐face transaction. There is, however, a danger of fraud.

Operational level

Operational information systems primarily focus on process automation. This can include automating routine activities as well as automating and optimizing structured decisions (such as employee scheduling).

Opportunities and threats of consumer to consumer e-commerce

Opportunities- consumers can buy and sell to broader markets, eliminates the middleman that increases the final price of products and services, always available for consumers 24/7 365, market demand is an efficient mechanism for setting prices in the electronic environment, increases the number of buyers and sellers who find each other Threats- no quality control, higher risk of fraud, harder to use traditional payment methods such as checks, cash, ATM cards

The technology/strategy fit

Organizations are constrained by time and money to build or acquire only those systems that add the most value - This typically comes in the form of business process management (a method of improving functioning of an organization). - It is important that when firms are choosing technologies to implement, they make sure the technologies support the business strategies already in place. - Although many projects may appear to be justified, limited resources require careful selection. By making sure that the projects selected are focused on helping the company meet its core business objectives, a company can help ensure that the projects are adding value.

Paid Search

Paid search is a way to ensure that your company's page appears on the first page user see

The Web

Powerful Web technologies have given rise to a global platform where firms from across the world can effectively compete for customers and gain access to new markets. Web sites that are linked to corporate databases provide real-time access to personalized information. The Web has opened new avenues for communication between companies and their customers, including Web-based support, electronic mail, online text or video chat applications, and social media. This facilitates all stages of a transaction, allowing companies to conduct business online without human assistance, greatly reducing transaction costs while enhancing operational efficiency.

Organizational requirements for innovation

Process requirements- focus on success over other objectives Resource requirements- employees with knowledge, skill, time, and resources. Partner with appropriate resources Risk tolerance requirements- tolerance for risk and failure Innovation isn't something every company can do. The company has to have an organization and process that allows innovation to move forward and not get caught up in office politics and competing agendas. If a company decides to pursue innovation, it either needs the resources in‐house or needs to contract with a partner that has the appropriate resources. Finally, a company that doesn't allow risk taking and the occasional failure will punish people who try to take risks and innovate and will soon stifle any possibility of innovation.

Benefits of e-tailing

Product benefits: with no store size and shelf space restrictions companies can sell far wider variety of goods Place benefits: Internet storefronts are available on almost every computer connected to the Internet Price benefits: online retailers are efficient with high volumes and low overhead that allow for very competitive pricing When companies are selling online, they can take advantage of the elimination of the retail market space, selling a much wider variety of products, targeting unique market segments on a global basis, and undercutting competitors' pricing.

Identifying how to compete: resources and capabilities

Resources- reflect the organizations specific assets that are utilized to achieve cost of differentiation from its competitors Another point organizations must consider when determining how to compete are the resources and capabilities available to them. Here, we look at the resources available. The more resources a company has the stronger they can position themselves to compete against their rivals.

Search engine optimization (SEO)

Search engine optimization attempts to improve a pages ranking in search engines like Google techniques include having other pages linked to the page keeping content updated and including keywords It is hard to influence the ranking of your company's page in the organic search results. Users will typically only click on the first few items of their search. Search engines' algorithms are usually proprietary and are frequently changed, and there can be hundreds of factors influencing a page's rank. They also check for "cheating," such as hidden keywords

Web-based collaboration tools

Spreadsheets- Google Drive Microsoft Excel online word processors- thinkfree, Google Drive, Microsoft Word online presentation- Google Drive, Microsoft PowerPoint online, prezi office suites- Google Apps, Microsoft Office online project management- trac, Redman, egroupware, collabtive note/task management- Evernote, Wunderlist, Microsoft OneNote online cloud storage/ sharing- drop box, Google Drive, Microsoft one drive, Icloud Many types of applications that have been traditionally desktop are now housed in the cloud, enabling multiple users to access them at the same time over the Web.

Designing websites to meet online consumer needs

Structural firmness- no bad links understandable error messages and privacy/security, speed Functional convenience- ease of use, simple navigation, user feedback, help features, one click ordering, flexible payment, order tracking representational delight- aesthetically pleasing, professional look and feel, color font images, consistent layout, no clutter Successful companies design their Web sites to enhance their online customers' experience when interacting with the Web site. The site has to work correctly, be easy to use, and to look good. There is a hierarchy of these needs. Most important is structural firmness, followed by functional convenience, and finally representational delight.

Systems competency

Systems integration, development methodologies, critical thinking, problem solving - also separates good IS professionals from technicians, as it involves an understanding of how technology integrates with organizations, people, and society.

Five IT Megatrends that shape the digital future.

The current confluence of emerging technologies and social events has created five significant trends that business managers need to manage and understand if they don't want to be left behind: • Mobile devices • Social media • The Internet of Things • Cloud computing • Big Data Let's explore each of these individually in the next five slides.

Thinking about investments in radical innovation

The disruptive innovation cycle suggests three wats to think about investments in radical innovation 1. Put technology ahead of strategy a. Because of importance you must begin with technology and by understanding technology and develop a strategy from there 2. Put technology ahead of marketing a. Marketing comes into play later in this model 3. Innovation is continuous a. Emerging technologies are constantly on the lookout for the next new thing

electronic commerce (e-commerce)

The exchange of goods, services, and money among firms, between firms and their customers, and between customers, supported by communication technologies, and in particular, the internet Electronic commerce occurs when any aspect of the transaction is facilitated by electronic communication technologies. We typically think of the Internet, which is where the vast majority of electronic commerce takes place. Exchanges can involve consumer, businesses, and the government, where any of these can be the buyer, the seller, or both.

Implementing the innovation process

The e‐business innovation cycle is based on choosing technologies, matching them to opportunities, and executing against the opportunity. After each execution there is an assessment phase where learning occurs, and then the process starts again. The most difficult part of the cycle is in choosing the enabling/emerging technologies, which can be exceptionally difficult. Matching the selection with business opportunities is the next most difficult phase.

Globalization and societal issues in the digital world.

The rapid rise of a new middle class in developing countries has enabled established companies to reach millions of new customers. Tremendous decrease in communications costs has increased the use of outsourcing. Rapid urbanization has led to 50% of the worlds population now living in cities. The global shift in economic power and climate change are other influencing factors. The past decades have seen major global changes influencing individuals, businesses, economics, and societies well into the future. Examples of globalization include: • Being able to ship wine from Australia to Europe costs only a few cents • People can make voice or video calls around the globe for free using Skype, Google Hangouts, or WhatsApp • The streaming movie provider Netflix is available in almost every country With the decrease in communication costs, companies can now draw on a large pool of skilled professionals from all over the globe.

Drawbacks of E-tailing

Trust- this is especially a concern for new online businesses without a proven track record Direct product experience- e-tailing does not provide sensory information Product delivery and returns- except for direct downloads, e-tailing requires additional delivery time for products and returns may also be a hassle compared to just going to the store There are challenges to e‐tailing, especially for certain product and service types. Often, trust becomes an issue due to the customer's inability to adequately experience the capabilities and characteristics of a product prior to purchase, as well as due to uncertainties surrounding product delivery and returns.

Service Based business models

Under a service-based business model, a manufacturer can offer equipment services as well as the product For example, rolls Royce might sell jet engines near cost in a competitive market with the real revenue coming from the maintenance contracts to service those engines The servicebased business model is found in many industries where the buyer is in control thus little profit margin is realized. When this happens the seller usually works to gain a long‐term maintenance service contract in exchange for the sale of the product at a reduced price. This is also referred to as XaaS (X as a service)

Evolving web capabilities

Web 2.0 application shift a web users role from a passive consumer of content to its creator The network effect refers to the notion that the value of a network (or tool or application based on a network) increases with the number of other users. The more users, the higher the value.

Evolving Social Interaction

Web 2.0 technologies change how people interact and enable social media with online information at our fingertips and personal expression available 24/7 individuals often post very private information about themselves, about others, and without thinking about the consequences Now that users can readily share information as well as consume it, social media have changed dramatically to take advantage of these capabilities. Users now have information, and the ability to express their opinion on it at their fingertips literally 24/7. This has led to an explosion in the sharing of personal information, sometimes very private, and often without taking into account the consequences.

Consumer to consumer e-commerce

When building a marketing app businesses must decide if the platform they build will be scalable Scalability is an important consideration when creating apps for your business. Being able to run the same basic app on a PC or your cell phone gives your customers options for shopping your site

The evolving workspace

a generation of social media users- millenniums and Generation Y, different word expectations, portfolio careers, not cradle to grave jobs, don't just serve customers, but collaborate with customers karma companies now create a corporate culture that embraces trends of the digital world, embracing social media attracts and retains top talent The current generation of workers grew up in an Internet‐enabled world and expect an Internet‐enabled workplace. They expect to have multiple jobs with multiple companies throughout their lives and value a workplace where they can leverage modern technologies versus being banned form utilizing and accessing them.

Mashups

a mashup is a new application or website that uses data from one or more service providers Many organizations have recognized the power and benefits of allowing other sites and apps to incorporate their services and data into mashups. Organizations use mashups to extend their reach to build greater customer relationships.

long tail

a new approach to segmentation based on the idea that companies can make money by selling small amounts of items that only a few people want, provided they sell enough different items - to the ability to cater to niche markets instead of selling mainstream products

wikies

a wiki is a website allowing people to create edit or delete content as well as discuss content Of course, the most famous wiki is Wikipedia. You can find almost any subject in Wikipedia and is often a good place to start but should not be used exclusively for research. The good thing about Wikipedia is that it contains many subject articles input by many people. The bad thing about Wikipedia is that it contains many subject articles input by many people. In other words, do other research and don't always rely on what is created in Wikipedia.

Electronic meeting system EMS

an electronic meeting system utilizes networked computers in sophisticated software to support various group tasks Electronic meeting systems provide a synchronous and structured meeting process. The process includes electronic idea generation, idea evaluation, and voting. In this way, EMS helps groups stay on track and avoid costly diversions that can often occur in less structured meetings.

Core activities

are focused on the actual value‐creation processes within the organization, including inbound logistics, operations and manufacturing, outbound logistics, marketing and sales, and customer service. These core activities form the organization's "value chain." Different industries can have significant variance in their core activities.

Support Activities

are those activities that enable the core activities (and the other support activities) to function efficiently and effectively, but they don't directly create value for the customer. (admin, firm infrastructure, HR, technology development, procurement)

Enhancing collaboration with social media

cloud based collaboration tools, content management systems, learning management systems, collective intelligence such as open source software or wikis, human based computing such as crowdsourcing Collaboration can also benefit from social media. There are multiple different ways people can work together, and collaboration tools facilitate that process. Content management systems allow multiple users to coordinate working on documents, without accidently overwriting or deleting each other's work, and often saving multiple prior versions in case the need to access them arises. The concept of collective intelligence is based on the notion that distributed groups of people with a divergent range of information and expertise will be able to outperform the capabilities of individual experts. Crowdsourcing uses everyday people from all over the world as a cheap labor force.

Collaboration

collaboration is where two or more people are working together to achieve a common goal a small company can collaborate very easily usually at a set time in place while global companies require effective and efficient communication channels for collaboration Organizations require collaboration between employees of different departments as well as outside business partners such as suppliers, customers, and other external stakeholders.

Categories for collaboration tools

electronic communication tools- tools allowing users to convey verbally and written information and send files documents or other content such as fax email voicemail blogs wikis websites- outlook, blogs, Wikipedia Electronic conferencing tools- tools allowing information sharing and rich interactions between users like Internet forums, instant messaging, application sharing, video conferencing such as Apple FaceTime, Skype, Google Hangouts, Webex collaboration management tools- tools used to facilitate virtual or collocated meetings in manage group activities like electric calendars, knowledge management systems, intranets, online document systems such as Google Docs, Microsoft Office online, Microsoft SharePoint

Groupware

groupware is a class of software that enables people to work together more efficiently Groupware can be divided into synchronous and asynchronous tools, as well as into tools that enhance working at the same location or across different locations. Synchronous means at the same time, such as when two people are talking on the telephone. Asynchronous means disconnected in time, such as when someone reads an email a day after it was sent. Asynchronous groupware tools include e-mail, mailing lists, workflow automation systems, intranets, group calendars, collaborative writing tools, and discussion forums. Synchronous groupware tools include shared whiteboards, online chat, electronic meeting systems, and video communication systems.

Freemium

is a marking approach companies use to obtain customers by offering something free to build a large customer base then charge a premium for unrestricted versions with more functionality A relatively new concept, Freemium, has become very popular among new and innovative companies. It relies on the marketplace in attracting a large number of users for a free trial or use of an application. Once hooked they are encouraged to subscribe to a premium version of the app with a large number of features that add value to the customer's use of the app. Flickr is a recent example of this mode. Flickr allows users to store, share, and organize a limited number of pictures and then encourages them to upgrade to the "pro version" where they can store an unlimited number with advertisement free browsing

business competency

is what separates IS professionals from mere techies. Although technical positions are often outsourced, it is much harder to outsource business savvy.

paid inclusion

is where some search engines offer to elevate a Page's position in the organic results after paying a fee Google is paid on a pay per click basis which can become very expensive It is not unusual for businesses to pay for placement of online advertising resulting in premium positions in search engines. But, it is only beneficial if that placement converts into sales. Forrester Research estimates that spending on paid search will increase to US$41.3 billion between 2019

Mass customization

mass customization generates additional value for customers and profits for producers Mass customization, which caters to individualized customer preferences while maintaining economies of scale, helps firms tailor their products and services to meet a customer's particular needs on a large scale. Linking online product configuration systems with just-in-time production allows companies to assemble each individual product based on the customers' specifications. Dell and Nike are two examples of firms that have successfully implemented mass customization into their e‐commerce strategy.

Securing payments in digital world

must be sure that online transactions are secure issues related to different forms of online payments are - Payment services- involve the use of independent payment services such as PayPal, Google Wallet - crypto currencies- involves the use of a non-banking currency such as Bitcoin - managing risk- businesses are financially liable for fraudulent transactions thus have to look for these and sometimes have to reject risky transactions - Online payments are readily made using credit cards, which offer consumers some protection against fraud by the seller, which typically still requires a significant amount of personal information to complete the sale. - At the same time, the merchant is at significant risk of fraud from buyers, and unlike "card‐ present" sales in traditional stores, when a sale is made online the merchant is financially liable if the sale is fraudulent. - Merchants now employ additional safeguards to flag and reject sales that have warning signs indicating they may not be legitimate.

- Information systems can help organizations

o Be more productive and profitable o Gain competitive advantage o Reach more customers o Improve customer service - This holds true for all types of organizations- professional, social, religious, educational, and government- and for all types of industries- medical, legal, and manufacturing - Information systems don't exist in a vacuum, they exist in the context of varying types of organizations. Information systems play multiple roles in organizations, ranging from automating business processes and driving down costs to reaching new customers and better servicing existing ones. - The organization of information systems has changed over the years. In the past, IS was controlled in a central location composed of technical experts, but more and more the IS function is distributed across the organization as people become more tech-savvy and there is a greater understanding of the need to adjust IS to the needs of different functional units. BUSINESS PURPOSE

A digital platform enables other business or users to create value seen in the examples

o Products Amazon Marketplace, eBay o Services Airbnb, Uber o Payments Square, PayPal o Investments and funding Kickstarter, Lending Club o Content Wikipedia, Twitter, YouTube o Communication WhatsApp, Skype o Collaboration Dropbox o Social relationships Facebook, LinkedIn o A digital platform is another business model example created for innovative products that could quickly be pushed to the customer.

social commerce

o utilizing social networks to build lasting relationships and advertised products

B2C e-commerce

online exchanges between companies and individual consumers Companies can ignore e‐commerce and just sell through physical outlets, can be virtual companies that only sell through online store fronts, or can combine them using a "click‐ and‐mortar" approach that allows both online transactions and physical store sales.

Downsides and dangers of using social media applications

online product reviews, microblogging, social networks, bad vibes going viral, lessons learned including identifying a crisis team identifying your worst social media nightmare, monitoring your social media environment, and acting fast within the 1st 24 hours, societal impacts of social media Web 2.0 provides many opportunities, but it also poses many threats to organizations. Not all competitors are scrupulous, and it is easy for companies to post negative reviews of competitors or arrange for positive reviews of themselves. Even activities under a company's control, such as its Twitter account or social network site, can pose a risk, as it is easy to release a tweet or exert controls that customers find offensive and overbearing.

Digital Rights Management

or DRM, includes practices to limit the copying and distribution of digital goods to paying customers.

Intranets and employee portals

real time access to information- updated information instantly available throughout the organization enterprise search- company focused, including corporate databases collaboration- document sharing and Co editing employee portal- employee benefits self service Companies create intranets to share documents and information within the organization. Employee portals are often set up so employees can access self‐service benefits.

Capabilities

reflect the organizations ability to leverage their resources in the marketplace This slide shows the source of capabilities available along with some strong examples. The stronger the capabilities, the stronger the company is in leveraging their resources in the marketplace.

Consumer to business E Commerce

relatively new phenomenon, consumers can sell small pieces of work or services to businesses it might be argued that anyone who made a living doing this is actually in business for themselves

Enhancing connection with social media

social networking- one of the most popular uses of the Internet, Facebook had 1.65 billion users as of March 2016, social search which is increasing the relevance of search results viral marketing- good marketing techniques can be driven by word of mouth or person to person communication and the power of viral marketing can be a great tool Social networking involves letting people communicate and network online, but social search takes that one step further. LinkedIn has more than 300 million members, and Xing (which is widely popular in Europe) has around 12 million members. Viral marketing is based on users promoting content they find interesting or engaging to their friends; in effect, users are "infecting" other users. This can be a very powerful and effective marketing strategy

Technical competency

the ability to understand new technologies and to use them to their best advantage - involves an understanding of the "nuts and bolts." IS professionals are not necessarily experts in the nuts and bolts, but they know enough to be able to apply them to practical problem solving.

Disintermediation

the cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries o cutting out the middleman and reaching customers more directly and efficiently

Future web capabilities

the semantic web- a set of design principles that will allow computers to better index web pages, topics, and subjects with enhanced search results web 3.0- TV centered around mobility, the contextual web where tremendous amounts of content available to users will be filtered by contextual factors such as time location etc. Innovation continues to abound and future Web technologies may go in may different directions. The semantic Web is an effort to make the abundance of Web pages readable by machines as well as people so they can process them more accurately and greatly enhance our ability to search for and find information. Although no one knows what Web 3.0 will entail, some speculate that it will revolve around mobility and mobile computing, whereas others believe it will entail contextual filtering, so users will see information based on what they are doing, where they are, what time it is, or a combination thereof. Even as we race toward Web 3.0, enterprises seek to leverage social media within their boundaries and with their customers to become social enterprises.

Virtual teams

virtual teams are composed of members from different geographic areas and assembled as needed to collaborate on a certain project Organizations typically strive to put together the right members of a team or task force to solve challenging business problems, regardless of where they are located geographically within the organization. When team members are located at different physical locations, they are a "virtual team." Virtual teams face the challenge of communicating and collaborating at a distance, and use modern technologies such as teleconferencing and online Web technologies to interact and share documents and information.