MIS 301 Exam 2 Review

Equifax Breach

Software was out of date, network inspection system had not been working for 10 months, and the hackers ran 9000 queries from 51 databases.The breach wasn't affecting sales revenue so they didn't do anything to change their software.

Vertical integration

When a single firm owns several layers in its value chain

black hat hacker

a computer criminal

phising

a con executed using technology, typically targeted at acquiring sensitive information or tricking someone into installing malicious software

pay-per-click (PPC)or (CPC)

a concept where advertisers don't pay unless someone clicks on their ad

cookies

a line of identifying text, assigned and retrieved by a given web browser and stored by your browser

deep linking

a link that takes a user to a specific webpage (rather than a home page) or which launches an app and brings up a unique location rather than just launching the app - cuts out Google

Computer Virus

a malicious code that spreads by attatching itself to files that are a part of legitimate installed programs

server farms

a massive network of computer servers running software to coordinate their collective use; provide the infrastructure backbone to SaaS and hardware cloud efforts, as well as many large-scale internet services

cost per action (CPA)

a method for charging for advertising whenever a user responds to an ad by performing a specific activity, such as signing up for a service

plug-in

a small computer program that extends the features set or capabilities of another application

firewall

a system that acts as a control for network traffic, blocking unauthorized traffic while preventing permitting acceptable use

hack

a term that may, depending on the context, refer to either 1) breaking into a computer system 2) a particularly clever solution

hacker

a term that, depending on the context, mat be applied to either 1) someone who breaks into computer systems 2) to a particularly clever programmer

Turing Test

a test of AI that, if passed, would mean a computer is indistinguishable from a human being

proxy services

a third-party computer that passes traffic to and from a specific address without revealing the address of the connected user

dynamic search ads

ads generated automatically based on the content of a website; 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

keyword advertising

advertisements that are targeting based on a user's query

contextual advertising

advertising based on a website's context - might lead to content adjacency problems

PageRank

algorithm developed by Google cofounder Larry Page to rank websites

link fraud

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

brute-force attack

an attack that exhausts all possible password combinations in order to break into an account. the larger and more complicated a password or key, the longer the attack will take

distributed denial of service (DDoS) attack

an attack where a firm's computer systems are flooded with thousands of seemingly legit requests, the sheer volume of which will slow or shut down a site's use

ad network

an effort that links advertisers to web sites and other content providers that are willing to host advertisements, typically in exchange for payment; also called AdSense

major participants in mobile industry

android and iOS, also Windows and Blackberry

Amazon's 2-sided network effect

by opening to 3rd party sellers, customers attract more sellers and sellers attract customers

Before Android was launched, what were the key challenges to handset manufacturers and content/app providers? Has Android addressed these challenges?

challenges for handset manufacturers: complexity of carrier aggregation power management challenges supporting expanding capabilities of phones Challenges for content providers: sharing revenue w OS provider expensive software development/certification Android combined hardware and software. Open Source software is also free and encouraging for manufacturers

Zara design team

consists of young and fresh designers from design school; regularly rotated to Cross-pollinate experience, Encourage innovation

online ad growth

due to enhanced targeting increased time online long tail of content providers. targeted ads provided by: contextual advertising geotargeting using cookies

impressions

each time an ad is shown to a user

fraudsters

firms that purchase assets from data haversters. actions may include using stolen credit card numbers to purchase goods, creating fake accounts via ID fraud, and more

shoulder surfing

gaining compromising information through observation (as in looking over someone's shoulder)

botnet or zombie network

hordes of surreptitiously infiltrated computers, linked and controlled remotely

botnets (zombie networks)

hordes of surreptitiously infiltrated computers, linked and controlled remotely

Geotargeting

identifying a user's physical location for the purpose of delivering tailored ads or other content

dark web

internet content that can't be indexed by Google or other search engines

malware

is an umbrella term used to refer to a variety of forms of hostile or intrusive software, including computer viruses, worms, trojan horses, ransomware, spyware, adware, scareware, and other malicious programs. It can take the form of executable code, scripts, active content, and other software.

Amazon's CCC

is negative! - sells goods and collects money from customers before it pays its suppliers - ADVANTAGE: extra money for expanding operations, making interest-bearing investments, etc.

Zara's vertical integration

keeps huge size of its production process in-house

negative keywords

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

Retargeting

look at products on Amazon, don't buy it, product starts to pop up in ads on the web

affiliate marketing program

marketing practice where a firm rewards partners who bring in new business, often with a percentage of any sales

Goal of AWS

monetize the firm's expertise in scalability and reliability and turn this into a revenue-generating business

account payable

money owned for products and services purchased on credit - Amazon doesn't pay suppliers right away

random stowe

no two similar products sit next to each other - reduces chances that a picker will confuse one item for another

flash-sales

offering deep discounts of a limited quantity of inventory; offer is run for a fixed period or until inventory is completely depleted

Zara's IT expenditure is less than one-fourth the fashion industry average

only invests at the points in its value chain where it will have the most significant impact

cash conversion cycle (CCC)

period between distributing cash and collecting funds associated with a given operation - want CCC to be small, otherwise unsold inventory is sitting on shelves and doesn't generate any cash until it's sold

potential vulnerabilities

physical threats user and admin. threats tech. threats (malware)

Goal of gathering data for Zara

plan styles and issue orders based on feedback rather than hunches and guesswork The goal is to improve the frequency and quality of decisions made by the design and planning teams

How does google rank sponsored ads?

precise formula based 1. the max. CPC that advertiser willing to pay 2. the ads quality score (CTR,keywords etc.) 3. expected impact of ad format

confidentiality

prevent the disclosure of sensitive information from unauthorized people, resources, and processes

dynamic pricing

pricing that shifts over time, usually based on conditions that change demand

liquidity problems

problems that arise when organizations cannot easily convert assets to cash

opt-out

programs that enroll all customers by default, but allow customers to discontinue participation if they want to

agency pricing

publisher sets the price and the resellers get a cut; used by Apple

cached

refers to a temporary storage space used to speed computing tasks

encryption

scrambling data using code or formula, known as cipher, such that is hidden from those who don't have the unlocking key

query

search

organic/natural search

search engine results returned and ranked according to relevance, to determine the order Google uses PageRank.

RFID

small chip-based tags that wirelessly emit a unique identifying code for the item that they are attached to. Think of RFID systems as a next-generation bar code.

spiders/web crawlers/software robots

software that traverses available websites in an attempt to perform a given task; search engines use these to discover documents for indexing and retrieval

white hat hacker

someone who uncovers computer weaknesses without exploiting them the goal of white hat hackers is to improve security systems

third-party cookies

sometimes called "tracking cookies" and are served by ad networks or other customer profiling firms; used to identify users and record behavior across multiple websites

biometrics

technologies that measure and analyze human body characteristics for identification or authentication. these might include finger print readers, retina scanners etc.

Pure play firm

term to describe companies that rely solely on the Internet to distribute products and services.

what determines appeal of an ad network

the ad technology, infrastructure and sale of an ad network. more advertisers= more content providers=higher priced ads= increased accuracy of targeting. gives the ability to reach a wider potential customer base. creating a network effect that can give a firm competitive adv.

Availability

the assurance that systems and data are accessible by authorized users when needed

last-mile delivery

the final stage of getting a product to the consumer, typically via a smaller delivery van or other vehicle

inventory turns

the number of times inventory is sold or used during a specific period

click-through-rate (CTR)

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

search engine marketing (SEM)

the practice of designing, running, and optimizing search engine ad campaigns

search engine optimization (SEO)

the process of improving a page's organic search rankings; has become a critical function for marketing organizations

integrity

the protection of system information or processes from intentional or accidental modification

market capitalization (market cap)

the value of a firm calculated by multiplying its share price by the number of stores

Why did Google develop android

they didnt want one firm to control the smartphone market. by providing android for free it gives hardware manufacturers an incentive to use the Android OS

How did Zara build its brand?

through its physical store presence, with over 7,000 locations worldwide, Zara shifted attention to driving online sales, with plans to increase its presence in Europe from 22 countries to 35

can a firm buy a top ranking ad?

to an extent yes, since they are based on the max CPC per advertiser, if you can pay the top CPC you can obtain a top ad ranking

Zara is able to be so responsive through

vertical integration and technology-orchestrated coordination of suppliers, Just-in-time manufacturing, Finely tuned logistics

fork

when developers start with a copy of a project's program source code, but modify it, creating a distinct and separate product from the original base

Technologies used by Zara for: Firm Infrastructure

DSS for collaboration among designers, store managers, market specialists, production managers and planners

compliance

Following a rule or order

Zara's store managers are armed with personal digital assistants (PDAs) that can be used to:

Gather customer input Chat up with customers to gain feedback on what they'd like to see more of

Parent company of Zara

Inditex group

The downside of contract manufacturing

Skimp on safety Ignore environmental concerns Employ child labor

dumpster diving

combing through trash to identify valuable assets

CPM

cost per thousand impressions; used more for building campaigns targeting more at creating awareness than generating click-throughs

channel conflict

exists when a firm's potential partners see the firm as a threat

key challenges for network operators (At&T) in mobile industry

huge investments required have to control handset manufacturers constant upgrades and updates

remarketing/retargeting

lets a web browser show custom targeted ads to a user when visiting other sites if that user has already visited a given page on the advertiser's site; allows firms to "reintroduce" products to users or target them with special messages or promotions

landing page

the web page displayed when a user clicks on an advertisement

how to hide pages from search engine crawlers

- HTML tags - no-index file - make sure websites aren't linked to other pages and haven't been submitted to websites for indexing

Secrets of Google's success

- Pull (instead of Push) advertising - Pricing Method (CPC instead of CPM) - Selling Strategies (auction instead of fixed prices) - Ad Networks (AdSense)

3 factors driving online ad growth trends

1) Increased user time online 2) Improved measurement and accountability 3) Targeting

Metrics for Google's Ad Ranking Formula

1) Max CPC that an advertiser is WTP 2) Ad's quality score 3) Expected impact of extensions

Google's assets

1) brand 2) scale 3) network effects 4) data

3 pillars of Amazon's business

1) large selection 2) customer experience 3) lower prices

walled gardens

A closed network or single set of services controlled by one dominant firm. Term is often applied to mobile carriers that act as gatekeepers, screening out hardware providers and software services from their networks.

content adjacency problem

A situation where ads appear alongside text the advertiser would like to avoid. occurs due to contextual advertising. advertisers can also use negative keywords.

Point-of-sale (POS) system

A transaction process that captures customer purchase information, showing how garments rank by sales; linked to PDA's

Trojan Horse Virus

A type of malware program that substitutes itself as a legitimate program. Once installed it delivers a hidden, malicious payload.

challenges and adv. of Android being Open Source

ADV hardware manufacturers can charge lower prices for android smartphones. bugs can be easily caught and fixed CHALLENGES Google has no control over what Android OS is loaded into (quality of hardware)

AdWords v. AdSense

AdWords- businesses pay Google to display ads AdSense- Google pays businesses for space on their website to run Google ads

Running out of bestsellers at Zara delivers several benefits:

◦Allows the firm to cultivate the exclusivity of its offerings ◦Encourage customers to buy right away and at full price ◦Encourages customers to visit often ◦Reduces the rate of failed product introductions

Technologies used by Zara for: Outbound Logistics

Automated Conveyers, DSS to support warehousing and distribution

affiliate programs

CPA program where program sponsors pay referring websites a percentage of revenue earned from the referral

Technologies used by Zara for: Technology R&D

Development of technology for vertical integration

Capital Commitments Necessary?

Google has over 1.4 M servers -building massive server infrastrucure is one cost of entry -impacts competitiveness bc/ few if any companies have these kinds of resources

Technologies used by Zara for: Inbound logistics

IT enabled JIT, inventory management systems

Where do Amazon's profits go?

Investments in fulfillment center infrastructure and cloud computing business

Contract manufacturing

Involves outsourcing production to third-party firms

Why is android so successful?

Open SOurce SOftware free of cost for device manufacturers, numerous brands selling android phones highly customizeable

Technologies used by Zara for: Marketing and sales

POS, Information transmitted to headquarters; vertical integration, customer profiling systems, inventory management systems, IPODS, IPADS

service level agreement (SLA)

Part of a standardized service contract where a service is formally defined

wholesale pricing

Paying publishers for titles and then selling the books at whatever price it wanted

SLAM

Scan Label Apply Manifest

Computer Worm

Self-replicating program designed to carry out some unauthorized activity on a victim's computer. Worms can spread themselves from one computer to another without any assistance from victims.