SIT CHAPTER 1
Examples of continuously redesigning Digital Business Models
- Netflix beating Blockbuster - Spotify beating itunes - uber beating taxis All disruptors that hurt BADD
Business Intelligence
-Historic, current, predictive business insights - trends and patterns
What is Porter's 3 generic strategies?
1. Broad Cost Leadership 2. Broad Differentiation 3. Focused Strategy
What are Porter's Five Forces?
1. Buyer Power 2. Supplier Power 3. Threat of substitute products or services 4. Threat of new entrants 5. Rivalry among existing competitors
What are the 3 facebook algorithms?
1. FB learner flow 2. Deeptext 3. Deepface (97% accurate)
What are the best industries for FIRE?
1. Security brokers and dealers 2. Software 3. Soft drinks
4 common forces of BIG data (4 V'S)
1. VARIETY 2. VERACITY (uncertainty) 3. VOLUME 4. VELOCITY
Knowledge
2 kinds: explicit and tasit - skills, experiences, expertise that create personal intellectual resources
Elon Musk believes that it will take about _______ billion real-world miles to gain "Worldwide regulatory approval for autonomous vehicles."
6
In the Digital Business Model slide, there were _______ basic forms of DBM examples.
8
What is a system?
A collection of PARTS that work TOGETHER for a COMMON PURPOSE.
What is business strategy?
A leadership plan that achieves a specific set of goals or objectives; HOW A COMPANY WILL ACHIEVE ITS VISIONNN
Facebook began selling ads and morphed into big brother, and is now the world's largest wholesale renter of:
AI augmented data
Using business intelligence to analyze trends and relationships, Walmart learned that when a storm is approaching Florida, people purchase more:
Beer and Strawberry Pop Tarts
What are the money makers of the core drivers?
Business Intelligence and Knowledge
Today's digital business model - focused managers make strategic decisions based upon _______ and _______.
Business Intelligence, Knowledge
What is buyer power in Porter's Five Forces Model?
Buyers affect the price willing to pay
Who is Reed Hastings?
CEO of Netflix - late fee from Blockbuster caused him to have idea for Netflix Business Model
Information
Data processed, interpreted, organized (meaningful)
What are the four core drivers of the information age?
Data, Information, Business Intelligence, Knowledge
Examples of Business Strategy
Developing new products or services Entering new markets Increasing customer loyalty Attracting new customers Increasing sales entering new markets
Tesla has new proprietary AI chips that are up and working and can be used as _______ replacements for older S, X and 3 models.
Drop-in
Which of the following are included as potential external opportunities in a SWOT analysis that are helpful to an organization?
Expanded product line, increase in demand, new markets, new regulations
What does Keith always say about facebook?
FB rents our data which is WORSE THAN BUYING IT
The most powerful Facebook algorithm is called:
FBLearner Flow
What does FIRE stand for?
Financial Independence Retire Early
Example of Business Strategy
For Eat Like a Woman: business vision of wanting to make women's health up to grade on men's health (bc FDA stopped testing on women) - business strategy was to start company, get it up to $500,000 sales/mo, then sell it.
what are the two types of unstructured data?
Machine Generated and Human Generated
In terms of strategic sequencing, which of the following works best?
Vision, Mission, Business Strategy, IT Strategy
Your Professor, Dr Pepper has asked you to analyze the soft drink industry using Porter's five forces model. Which of the following represents buyer power in the soft drink industry?
Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store.
What is MIS (Management Information Systems)?
a business function which moves info about people, products, and processed to facilitate decisions - uses system thinking to operate cross-functionally
What is a competitive advantage?
a feature of a product or service on which customers place a greater value than they do on similar offerings from competitors
What is a broad differentiation strategy?
a strategy involving a company differentiating its products in a different way; like more customer-based; Virgin Atlantic being so customizable
Competitive strategy is about?
being different
Steve Jobs and Apple created a big advantage in the technology industry with the introduction of the iPod, iPhone, and iPad. What are these all examples of?
both a and b
A leadership plan which includes where you want to go, including your stretch goals is called a _______.
business vision
Polaroid and Blockbuster were used as examples to demonstrate:
companies operate in competitive digital environments
Which of the following represents the types of data commonly found in the human resources department?
employee data
Your boss Kanye, has asked you to analyze the music industry using Porter's five forces model. Which of the following represents supplier power in the music industry?
established record labels like EMI, Sony, Universal
What is big data?
extremely large complex data sets analyzed to reveal patterns, trends, and associations, especially relating to human behavior and interactions.
What is rivalry in Porter's Five Forces Model?
high when competition is fierce rawr; low when competition is complacent
What is the threat of new entrants in Porter's Five Forces Model?
high when its easy for new competitors to enter market; low when there are significant entry barriers EG: (chemical bank ATMS)
If we did a Google search on Pizza in class, Google used AdWords, so whoever bids the _______ gets their advertisement to appear _______ on the search page.
highest, higher
Assume you are in the business of producing and selling hamburgers. If you could produce more hamburgers with the same input, what would happen to your productivity and profits; assuming the price of your hamburgers remains the same?
increase in productivity, increase in profits
What are knowledge workers?
individuals valued for their ability to interpret and analyze information
What is feedback?
information going to original transmitter and modifying actions to maintain stability
What is human generated data?
input data, clickstream, gaming
What is the threat of substitutes in Porter's Five Forces Model?
it is high when there are many alternatives; low when there are few. EG: airlines and trains, buses, cares, etc
What is system thinking?
it's the MONITORING of whole systems by viewing inputs being processed into outputs, while gathering info on each part
MIS has only been around for likee 40 years
keith said.
Which of the following are included as potential internal weaknesses in a SWOT analysis that are harmful to an organization?
lack of strategic direction, obsolete technologies, lack of managerial talent, outdated product line
What is machine generated data?
satellite images, scientific atmosphere data, radar data
Data
simple facts or figures
Who is Wayne Huizenga?
started Waste Management and Blockbuster
What does SWOT stand for?
strengths and weaknesses (inside company), opportunities and threats (outside company)
With Michael Porter's five forces model:
strong forces increase competition
What is a focused strategy?
targeting a niche market and concentrate on either cost leadership or differentiation
What is human generated data?
text messages, social media, emails
Take on Airlines:
the five porter forces are ultra strong so should not join that industry if all five forces are strong
What is broad cost leadership?
reaching large market segment
What is a business mission?
the purpose a company serves
What is an example of Business Intelligence?
the trend that before hurricanes, FL residents stock up on 2 things: beer and strawberry pop tarts in walmart
Why are systems important?
they enable business communication
What is a business vision?
where you want to go
Polaroid had a unique competitive advantage for many years until it missed which trend or trends?
People taking digital questions
Your Professor, Dr. Pepper has asked you to analyze the soft drink industry using Porter's five forces model. Which of the following represents supplier power in the soft drink industry?
Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases.
Because Tesla uses _______ not _______ it hits a commercial price point that is more practical, it can see farther and is less bulky and expensive.
Radar, Lidar
Jeremy is an executive for Wright Web Designs, where his primary role is to ensure the security of IT systems and develop strategies to protect the company from online viruses and hackers. What is Jeremy's role within the company?
Chief Security Officer (CSO)
In the Michael Porter article "What is Strategy?" one key point was that:
Competitive Strategy is about being different
Google as DBM?
Google is biggest Ad- Supported; they sell specific words, the more specific the more expensive ($$$)
How do IT and Business strategy relate?
IT strategy supports business strategy - EG: hardware and software taken care of by Amazon web services so that's an aspect of the company they don't have to worry about.
Did Huizenga partner with Hastings?
NOPE! Hasting's Netflix was total disruptor to Blockbuster. oops.
Which of the following is correct about the Netflix subscription business model?
Netflix was started in 1997
are competitive advantages long term?
No, short term usually because competitors find quick ways to dupe them, causing need to find new ones!
What IT topic is much more fun and interesting to study and implement?
OLAP
What is OLAP?
OLAP is abbreviation of Online Analytical Processing. This system is an application that collects, manages, processes and presents multidimensional data for analysis and management purposes.
What is OLTP?
OLTP is abbreviation of On-Line Transaction Processing. This system is an application that modifies data At the very instant it is received and has a large number of concurrent users.
Steve Jobs moved fast with his portable music player, rapidly developing the first iPod device that could hold thousands of songs in your pocket:
Over 9 months
Who's MOST IMPORTANT TO SATISFY IN LIFE?
SHAREEEHOLDERRRS
Harvard Business Review article said whattt
STRATEGY IS TO BE DIFFERENT
FIRE stands for becoming Financially Independent Retire Early. Working in which industry likely gives you the best chance, based on the industry profitability slide in class?
Security Brokers
The top three industries on the FIRE slide in terms of profitability were:
Security Brokers, Soft Drinks, Prepackaged Software
In the "What is strategy?" HBR article, a key point was that:
Strategic Positioning was more important than Operational Effectiveness (OE)
In the "What is Strategy?" article, one of the following is NOT true:
Strategic positions should be short term
Where does the term Strategy come from?
Strategy is greek - status - ago: army- led
Which of the following statements is correct when considering a SWOT analysis?
Strengths and weaknesses originate inside an organization
What is supplier power in Porter's Five Forces Model?
Suppliers ability to influence the prices they charge for supplies
Which of the following is an example of information?
What is my worst-selling product?
When you implement an Enterprise software solution like SAP, you want departments like Accounting, Finance and Marketing to:
Work interdependently
What is SWOT used for?
used to ID significant influences that work for or against business strategies
