MIS 3305 Test 1
How did Apple trump Google to become the dominant mapping platform on iOS?
Apple's control of IOS gave it control of the distribution channel to reach its users, kicking Google out as the default mapping app and capturing the majority of user engagement
Porter's Five Forces
Model developed by strategy expert Michael Porter that identifies five competitive forces that influence planning strategies; Power of Suppliers, Power of Buyers, Threat of Substitute Products, Potential New Entrants, Rivalry Among Existing Competitors
Collaborative filtering is a classification of software that:
Monitors trends among customers to personalize an individual customer's experience
Moore's Law corollary that is taking place with people too. As technology becomes fast and cheaper and developments like open source software, cloud computing, software as a a service, and outsourcing push technology costs __
More
The Hardware Layer Cake
TOP TO BOTTOM: User, Applications, Operating Systems, Hardware
Extensible Markup Language
Tagging language that can be used to identify data fields made available for use by other applications
T/F: Businesses that have favorable economies of scale are sometimes referred to as being highly scalable
True
T/F: China has the most Internet users worldwide
True
T/F: Firms are using social media to generate sales, improve their reputations, better serve customers, and innovate
True
T/F: Firms must invest in techniques to improve quality, lower cost, and design efficient customer experiences
True
T/F: Firms that build an imitation-resistant value chain develop a way of doing business that others struggle to replicate
True
T/F: IPO markets need new firms, and the tech industry is a fertile ground that continually sprouts new businesses like no other
True
T/F: Many firms choose not to implement operational components of ERP software and instead elect to create their own propriety solutions in part because they see their uniqueness in certain operations areas as key to creating difficult-to-imitate competitive advantages.
True
T/F: Market entry is NOT the same as building a sustainable business and just showing up does not guarantee survival
True
T/F: The marginal costs of digital goods is effectively zero
True
T/F: The tech-centric consulting practices of firms such as Deloitte Consulting and Accenture are larger than the accounting firms where they were initially launched
True
Computing hardware
the physical components of information technology which can include the computer itself plus peripherals such as storage devices, input devices like the mouse and keyboard, output devices like monitors and printers, networking equipment, etc.
Churn Rate
the rate at which customers leave a product or service
Forces accelerating and lowering costs of entrepreneurship
crowdfunding, cloud computing, App Store, 3D printing, social media
Master Data
data that is relatively stable, customers, vendors
Transaction Data
data that is temporary, customer orders, purchase orders
Channel Conflict
exists when firm's potential partners see that firm as a threat
FreshDirect
farm to fork supply chain, prepares its own goods, stores in a warehouse, higher turnover, lower prices
Michael Porter said that...
firms suffer margin-eroding competition because they define themselves according to operational effectiveness instead of strategic positioning
A Server is used in two ways:
hardware context and software context
Sharing Economy Business
peer to peer, connecting buyers and sellers
Strategic Positioning
performing different activities better than rivals, or the same activities in a different way, should create a difficult to copy strategy
Operational Effectiveness
performing the same tasks better than rivals perform them
Application Software
performs functions for the user, desktop software
Hardware
physical components of information technology; CPU, RAM, ROM, storage devices, input devices, output devices
Social media is now the
preferred communication tool
Platforms
products that allow for the development of software products and other complementary goods
Long Tail
refers to an extremely large selection of contents or products, a phenomenon whereby firms can make money by offering a near-limitless selection
Disintermediation
removing an organization from a firm's distribution channel; collapses the path between supplier and customer
The First Sale Doctrine only applies to ____ products and you must have a ___ to stream the bits (media)
Physical, license
Having a bigger customer base enables firms to
- Have better cost structure - Have better profit prospects - Offer better pricing
Atoms to Bits
a shift from physical to digital products
network externalities
a situation in which the usefulness of a product increases with the number of consumers who use it
Coopetition
a situation where firms may both cooperate and compete with one another
Software Package
a software product offered commercially by a third party
Client
a software program that makes requests of a server program
Extensible Markup Language (XML)
a tagging language that can be used to identify data fields made available for use by other applications
Augmented Reality
a technology that superimposes content, such as images and animation on top of real-world images
Imitation Resistant Value Chain
a way of doing business that competitors struggle to replicate and frequently involves technology in a key enabling role
Economies of Scale
cost advantages reaped by companies
Marginal Costs
costs associated with each additional unit produced
Fixed Costs
costs that do not vary according to production volume
Media industry is an oligopoly with only a few media conglomerates controlling over ____% of media consumed
90%
VRIO
A framework to determine the competitive potential of a resource; Value, Rare, Inimitable, Organized
Internet of Things
A vision where low-cost sensors, processors, and communication are embedded into a wide array of products, allowing a vast network to collect data, analyze input, and automatically coordinate collective action.
Value Chain
Another framework used to determine all activities needed to create a product or service to add margin of value; divided into Primary and Secondary
___ grew to the most valuable firm in the US due to its handheld consumer electronics
Apple
APIs
Application Programming Interface, programming guidelines that tell other programs how to get a service to perform a task
Brand Power =
Buying Power
T/F: In recent years, activity has dramatically declined in areas of intellectual property, patents, piracy, and privacy
False
T/F: Network externalities exist when a product or service becomes less expensive as more people use it
False
T/F: The United States holds the number one ranking in Internet access speeds
False
The Harvard Business Review declared ____ the "Sexiest Job of the Twenty-First Century"
Data Scientist
T/F: For today's collegiate job seeker, public participation in social media is strongly discouraged
False
Fast Follower Problem
Exists when savvy rivals watch a pioneer's efforts, learn from their successes and missteps, then enter the market quickly with a comparable or superior product at a lower cost before the first mover can dominate.
Two main technologies replaces EDI
Extensible Markup Language and Javascript Object Notation
Secondary Value Chain Components
Firm Infrastructure, HR, Technology, Procurement
___ is now the world's most profitable media company
Many business students aspire to careers in investment banking. Tech firms may very well influence their careers, given that the tech sector comprises a high number of ____ and ____
IPOs (initial public stock offerings), and Merges and Acquisitions
ERP Software Benefits
Improved process, better decision making, global integration, reduced IT maintenance, real time access to data.
Primary Value Chain Components
Inbound Logistics, Operations, Outbound Logistics, Marketing and Sales, Support
FlipKart
India's largest online store
An organization's ___ department ensures that systems get build and keep running. It also takes on strategic roles targeted at proposing solutions for how technology can give the firm a competitive edge
Information Systems
IPO
Initial public offering, the first time a firm offers a public stock exchange , known as "going public"
Tech impact is reaching even beyond the confines of Earth itself. According to an example in your chapter, how was a tool on the International Space Station recently acquired?
It was printed on-demand using 3D printing technology
Search Engine Marketing, Search Engine Optimization, Customer Relationship Management, and personalized systems are all central components of the new ___ toolkit
Marketing
Digital Distribution Pertaining to Netflix
Netflix must store the content and they do not have the cloud storage to do so, so they use Amazon's services
Two Types of Software
Operating System and Application Software
Michael Porter
Professor at Harvard, developed the Value Chain and Porter's Five Forces
___ refers to a technology which can be used to "track your luggage at the airport"
RFID
Examples of ERP Systems
SAP, Oracle's NetSuite, Microsoft Dynamics 365
ERP Functions
Sales, inventory, manufacturing, HR, purchasing, order tracking, decision support
The danger of Operational Effectiveness is
Sameness
Who are the Big ERP Vendors?
Sap, Oracle, Microsoft
Two Critical Factors of the Long Tail
Selection attracts customers and the Internet allows large-selection inventory that offline firms can't match
While the size of the tail in the long tail phenomenon is disputable, one fact that is critical to remain above this debate is that:
Selection attracts customers, and the Internet allows large-selection inventory efficiencies that offline firms can't match
Web Services
Small pieces of code that are accessed via the application server, and permit interoperable machine-to-machine interaction
Application Sever
Software that houses and serves business logic for user and reused by multiple applications
Experts in the area of __ specialize in technology for competitive advantage
Strategy
This piece of US legislation was enacted in the wake of the accounting scandals of the early 2000s. Although often criticized, its also seen as raising the stakes for mismanagement and misdeeds related to a firm's accounting practices
The SOX Act
Which of the following is a radical change brought about by new technologies?
The growth of privacy and security concerns
Application Programming Interface
a set of routines, protocols, and tools for building software applications
Examples of Operating Systems
Windows, macOS, iOS, Android, Unix
First Sale Doctrine
a US Supreme Court ruling stating that an individual who knowingly purchases a copy of a copyrighted work from the copyright holder receives the right to sell, notwithstanding the interests of the copyright owner
Collaborative Filtering
a classification of software that monitors trends among customers and uses this data to personalize an individual customer's experience
Software
a collection of programs that tell a computer what to do
Information Asymmetry
a decision situation where one party has more or better information than its counterparts
Distributed Computing
a form of computing where systems in different locations communicate and collaborate to complete a task
Bandwidth Caps
a limit imposed by the ISP on the total amount of traffic that a subscriber can consume
Javascript Object Notation (JSON)
a popular data interchange format, JSON is a technology standard often used to format data when being sent or received via APIs
Server
a program that fulfills the requests of a client
A/B Test
a randomized group of experiments used to collect data and compare performance among two different groups
Service-oriented architecture (SOA)
a robust set of web services built around an organization's processes and procedures
Scale Advantages
advantages related to size
Strategic Differences
advantages that rivals will struggle to match
Crowdsourcing Tools
allow firms to reach out for expertise beyond their organizations
Tata Consultancy Services
an Indian Technology firm, number 2 in the world
Over the Top
an industry term referring to media services that are provided over the internet
Desktop Software
applications installed on a personal computer, typically supporting tasks performed by a single user, word, photo editor, computer games
Enterprise Software
applications that address the needs of multiple users throughout an organization or work group
Straddling
attempt to occupy one or more position while failing to match the benefits of a more efficient rival
How can Competitive Advantage be gained through the Value Chain?
by linking activities more cheaply and expertly then competitors
Danger of relying on technology
can be matched quickly
Total Quality Management
commitment to customer focused performance that enhances quality and continuos improvement
Non-Practicing Entities
commonly known as patent trolls, these firms make money by acquiring patents rather than brining products and services to market
Applications
includes the desktop applications, enterprise software, utilities, and other programs that perform specific tasks for users and organizations
Netflix enjoys a triple scale advantage by being the first:
largest customer base, network of distribution centers, largest selection
Sources of Switching Costs
learning costs, information and data loss, financial commitment, contractural commitment, search costs, loyalty programs
Cinematch is a proprietary recommendation system that...
led to supplier power and used algorithms to personalize recommendations
Viral Marketing
leveraging consumers to promote a product or service, little advertising costs
Netflix dominance was due to
leveraging technology and timing
Economies of Scale are attained by...
leveraging the cost of an investment across increasing units of production
Windowing
making content available to a given distribution channel for a specified time window, usually under a different revenue model
Search Engine Marketing, Search Engine Optimization, and Customer Relationship Management systems all
manage information and customer data
Incompatible management information systems can hinder ___
mergers and acquisitions
Many telecom firms began digging up the ground and laying webs of fiberglass to meet the growing demand for Internet connectivity. However, rivals and startups began to imitate these firms and soon these new assets were not so rare and each day they seemed to be less valuable. It can be inferred from this example that:
resource-based thinking can help avoid the trap of carelessly entering markets simply because growth is spotted
First Sale Doctrine
ruling that states that a firm can distribute physical copies of legally acquired copyrighted products
Electronic Data Interchange
set of standards for exchanging messages containing formatted data between computer applications
Configuration Data
settings to define the business, fiscal year, chart of account
Database Management Systems
software for creating, maintaining, and manipulating data; considered an application
ERP (Enterprise Resource Planning)
software packages that integrate many functions of a business
Firmware
software stored on nonvolatile memory chips, many products can be upgraded online
Operating System
software that controls the hardware, schedules tasks, manages memory, controls devices
Embedded Systems
special-purpose software designed and included inside physical products, make devices "smarter" and diagnose problems
Supply Chain Management
systems that can help a firm manage aspects of its value chain through delivery of finished products at the point of consumption
Switching Costs
the cost a consumer incurs when moving from one product to another, either monetary or situational
Price Transparency
the degree to which complete information is available
Supply Chain
the flow of materials, information, and services from suppliers to manufactures to the end customer
User Interface
the mechanism through which users interact with a computing device, includes elements of the graphical user interface such as windows, scroll bars, buttons, touch screens, etc.
Distribution Channels
the path through which products or services get to customers
"Atoms to Bits"
the shift from physical to digital products
Resource Based View of Competitive Advantage
the strategic thinking approach suggesting that if a firm is to maintain sustainable competitive advantage, it must control an exploitable resource
Brand
the symbolic embodiment of all the information connected with a product or service
Affiliates
third parties that promote a product or service, typically in exchange for a cut of sales
The Goal of the Value Chain
to create value that exceeds the cost of conducting that activity
Business Intelligence Systems
use data created by other systems to provide reporting and analysis for organizational decision-making
Apps perform the work that
users and firms are directly interested in accomplishing
Four Key Characteristics of Resource Based Competitive Advantage
valuable, rare, inimitable, nonsubsitutable
sustainable competitive advantage
when a firm's financial performance consistently outperforms industry averages
Network Effects
when the value of a product or service increases as its number of users expand
