Class 4 Flashcards
(60 cards)
Positive feedback, and its network economics impact (126/7)
the self-reinforcing mechanism by which the strong get stronger and the weak get weaker. Seen in economies of scale where it sets of a virtuous cycle and a vicious cycle. not every market will have a tipping point, lots of players and then one gets an advantage, i.e. VHS and Betamax.
network effects (how value is created in networks) (128)
value of a network to its members is a function of the number of nodes in the same network. New users create value for old users.
tippy market/tipping point (130):
a “winner take all” market tendency. Subject to strong positive feedback, market will tip in favor of firm able to reach critical mass and dominate it. Not all have this, many players then one gets the advantage, i.e. VHS and Beta Max.
with Sony/Toshiba rivalry as a case study (135):
Blu-Ray and HD-DVD, Blu-Ray by Sony came out on top quickly.
two-sided networks (134):
Where networks have two types of members, each creating value for the other, think Adobe reader and Adobe Acrobat etc. Creates a feedback loop.
reach/richness, their traditional tradeoff, and how the internet has affected this tradeoff (147-148)
internet removing requirement to compromise between richness of the message and the numbers reached with the message. One of the most important concepts in e-commerce, going back far enough where you have to have a person meet your needs, this is very expensive, can’t afford a lot of people. info-richness, how customized, detailed, cater to the case is high. Info reach, how many customers can you service. Internet pushed this out where you can be very high in both, i.e. on line banking.
Definition of Internet (166),
A network of networks. Collection of networked computers that can talk to one another.
examples of various Internet services (168)
Wikipedia,
B2C/B2B/C2C/C2B/eGovernment (175-7),
categorizing ventures by transaction type, business to consumer/business to business/consumer to consumer/consumer to business/ those involving transactions with legislative and administrative institutions.
categorizing ventures by company structure (177-9)
brick and mortar/brick and clicks
business model definition (180)
captures firm’s concept and value proposition while conveying what market opportunity company is pursuing, what product or service it offers, and strategy it will follow to seek a dominant position. Priceline.
revenue model (definition and various types) (181-4),
pay for service, subscription, advertisement support.
the revenue model of NetFlix.com (based on 181-4),
subscription
dominant business models (184-8)
online retailing; infomediaries, content providers, online communities, exchanges.
disintermediation (188)
process whereby supply chain is shortened by removing intermediaries.
re-intermediation (189),
new opportunities for intermediaries to exist alongside brick and mortar counterparts to reach consumers directly through both internet and store.
examples of Web 2.0 technologies (196-200)
tech advancement going from flat pages to dynamic place, interactive, allow for structure to emerge based on users: Wiki, SideWiki, Blogs, RSS, Tags, Ajax, Microblogs (twitter)
The IT decisions your IT people should not make, only 1 & 3 (216);
How much to spend; which IT capabilities need to be companywide? need 90% follow standardized rules, and 10% breaking rules, flexibility. Sometimes there are exceptions that can’t be foreced through the system.
I.S. assessment (219);
Information systems resource assessment, inventory of IS using and evaluate how well meeting needs. Audit.
the strategic impact grid, its two dimensions, its 4 quadrants, and the meaning of each cell, (225-6);
Low to high Need for Reliable is: Low to high need for new is: Support/factory/turnaround/strategic quadrants. Strategic is the vision.
I.S. guidelines, reasons for developing them (226-8);
Go from vision to refine and establish a blueprint to enable communication, responsibility and guide future decsionmaking. Policies.
examples of technical I.S. guidelines (sidebar 5) (229)
Implementation, steps to close the gap.
governance (385),
set of decisions rights and the guiding accountability framework designed to ensure that IT resources are employed appropriately in the organization. Two main aspects: management of downside risk and fostering of upside potential.
5 categories of risk (386), in creating new I.T.
competence risk/ competency of the board
infrastructure risk/ hardware and software
IT Project risk/ H.O.
business continuity risk/ disaster recovery plan?
information risk.
