20/80 Flashcards
How does IT impact marketing?
Key Technologies:
* SEO (Search Engine Optimization)
* Email Marketing Platforms
* Social Media Marketing Tools
* Benefits:
* Targeted Campaigns
* Real-Time Interaction
* Improved Customer Loyalty
what is Globalization
Globalization refers to the increasing interconnectedness and interdependence of businesses across borders, with IT playing a key role in facilitating international trade, communication, and operations
How does globalization impact business?
Characteristics:
- Global reach through technology
- Outsourcing capabilities
- Cultural diversity considerations
Benefits:
- Access to global markets
- Lower production costs
- International collaboration
Challenges:
- Currency/trade issues
- Regulatory differences
- Cultural barriers
What is a Business?
A business is an organization that provides goods or services to meet customer needs, typically for profit. Businesses are the backbone of economies, generating employment, fostering innovation, and addressing societal needs.
What role does IT play in financial management?
Key Tools:
- Accounting software
- Cloud-based platforms
- Automated invoicing
Benefits:
- Real-time insights
- Cost reduction
- Enhanced accuracy
What is Cloud Computing?
Key Types:
1. laas (Infrastructure as a Service)
- Full control over infrastructure
- Example: AWS
2. Paas (Platform as a Service)
- Platform for development
- Example: Google App Engine
3. Saas (Software as a Service)
- Software via internet
- Example: Microsoft Office 365
What is the role of cloud computing in business?
Benefits:
- Scalability
- Cost-efficiency
- Accessibility
Examples:
- Microsoft Azure
- Google Cloud
- AWS
What are the key IT-
enabled business models?
- E-commerce: Online selling of products/services
- Subscription Models: Recurring revenue (Netflix)
- Freemium Models: Basic free, premium paid
- Sharing Economy: Resource sharing platforms (Uber)
What are the four main industry sectors?
- Primary Sector: Natural resource extraction (agriculture, mining)
- Secondary Sector: Manufacturing and production
- Tertiary Sector: Services (retail, healthcare, hospitality)
- Quaternary Sector: Knowledge-driven
(IT, R&D, education)
What are the main types of business ownership?
- Sole Proprietorship: Single owner, simple setup, high personal risk
- Partnership: Shared ownership between multiple individuals
- Corporation: Separate legal entity owned by shareholders
- LLC: Combines benefits of corporations and partnerships
- Cooperatives: Owned and operated for member benefit
What are the three main components of business environment?
Internal Environment
* External Microenvironment
* External Macroenvironment
What is PESTLE Analysis?
A framework for analyzing external business environment factors:
* Political: Regulations, trade policies, political stability
* Economic: Inflation, unemployment, exchange rates
* Social: Demographics, cultural norms, consumer behavior
* Technological: Innovation and industry evolution
* Legal: Laws, regulations, IP rights, labor laws
* Environmental: Sustainability, climate change, waste management
What is SWOT Analysis?
A strategic tool to evaluate:
* Strengths: Internal factors providing competitive advantage
* Weaknesses: Areas where company faces challenges
* Opportunities: External trends or market gaps
* Threats: External risks that may hinder success
What is Porter’s Five
Forces?
A model analyzing competitive forces in an industry:
* Industry Rivalry: Competition among existing players
* Threat of New Entrants: Ease of market entry
* Bargaining Power of Suppliers:
Supplier influence on pricing
* Bargaining Power of Buyers:
Customer influence on pricing
* Threat of Substitutes: Availability of alternatives
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What are key considerations for Strategic Decision-Making in IT Businesses?
Set Clear Objectives: Define measurable goals
* Leverage Data Analytics: Identify market trends
* Invest in Training: Update employee
IT skills
* Enhance Agility: Adopt scalable IT solutions
What is a Business Model?
A business model outlines how a
company.
- Creates value
- Delivers it to customers
- Generates revenue
Key components:
- Value Proposition
- Customer Segments
- Revenue Streams
- Key Resources
What is the Role of IT in Business Models?
IT is critical for:
- Automation of repetitive tasks
- Enabling global reach
- Data-driven decision making
- Supporting innovation and scalability
- Improving operational efficiency
What are the Types of Business Models?
Product-Based (e.g., Apple)
* Service-Based (e.g., Uber)
* Subscription Model (e.g., Netflix)
* Freemium Model (e.g., LinkedIn)
What are Traditional
Business Models?
Characteristics:
- Physical storefronts
- Face-to-face interaction
- Localized markets
- High overheads
- Limited market reach
- Fixed operational costs
- Product-centric focus
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What are Digital Business
Models?
Key features:
- Online platforms
- Automation
- Scalability
- Global reach
- Data-driven operations
- Cost-effective
- Minimal physical infrastructure
What is E-Commerce?
Types:
- B2B (Business to Business)
- B2C (Business to Consumer)
- C2C (Consumer to Consumer)
- C2B (Consumer to Business)
Models:
- Marketplace
- Retailer
- Subscription-Based
What are the key
Differences Between
Traditional and Digital
Models?
Traditional:
- Physical stores
- Face-to-face transactions
- High operational costs
- Limited scalability
- Local markets
Digital:
- Online operations
- Automated processes
- Lower operational costs
- High scalability
- Global reach
- Data-driven decisions
What are business processes?
A set of structured activities aimed at achieving specific organizational goals, like a “recipe” for business operations.
What is the role of HR in business?
Recruiting, training, and managing employees.
What is the role of finance in business?
Budgeting, accounting, and financial reporting.
What is the role of marketing in business?
Acquiring customers, branding, and increasing sales.
What is the role of CRM in business?
Managing customer interactions and improving retention.
How does IT drive innovation?
IT supports simulations, collaborative research, and big data analysis.
What is IT in decision-making?
The use of technology, digital tools, and data analytics to support and improve business decisions.
What is DDDM?
A process of making business decisions based on data analysis instead of intuition.
What are the key steps of
DDDM?
Data Collection - Gathering information from transactions, customers, and digital sources.
Data Processing - Cleaning and
organizing data.
Data Analysis - Using Al, statistics, and
Bl tools to identify patterns.
Decision Implementation - Applying
insights to business strategy.
What are Bl tools?
Software applications that analyze data and generate insights through dashboards, reports, and visualizations.
How do BI tools help decision-making?
Improve data visualization
Automate reporting
Enable real-time tracking of trends
How does Netflix use
DDDM?
✔️Personalized Recommendations - Al suggests content based on viewing habits
✔️Content Production - Data-driven decisions on which shows to greenlight ✔️User Engagement Analysis - Tracks pause & rewatch behavior
✔️Dynamic Pricing Models - Adjusts subscription pricing based on data ✔️Marketing Optimization - Uses analytics to refine ad campaigns
How does BI help financial decision-making?
Budget Forecasting - Predicts revenue and expenses
Fraud Detection - Uses Al to identify suspicious transactions
Risk Assessment - Evaluates financial stability
Investment Optimization - Analyzes market trends for smarter decisions
Automated Reporting - Reduces human errors in financial statements
How does Al assist HR?
Automates resume screening
Predicts which candidates will succeed
Tracks employee performance
What are top cybersecurity risks?
Data Breaches - Unauthorized access
to sensitive information
Al Manipulation - Hackers can trick Al-
driven decisions
Cloud Security Issues - Storing data
remotely increases risks
How does ML improve business decisions?
Automated Data Analysis - Processes massive datasets
Predictive Analytics - Forecasts customer behavior & risks
Anomaly Detection - Identifies fraud & cybersecurity threats
Personalization - Tailors content for users (Netflix, Spotify)
What is IT Governance?
Ensures IT aligns with business goals while managing risks and compliance.
What is predictive analytics?
Al-powered forecasting using past data to predict future trends.
Who are the key stakeholders in business?
- Owners/Shareholders: Expect returns on investments
- Employees: Rely on business for income and career growth
- Customers: Seek high-quality products and services
- Suppliers: Provide raw materials or services
- Community: Benefits from job creation and ethical practices
What are the main types of business models?
- Product-Based: Generates revenue through selling physical items (e.g., Apple)
- Service-Based: Offers expertise or solutions (e.g., IT consulting firms)
- Subscription-Based: Earns through recurring payments (e.g., Netflix)
- Freemium: Basic services free, premium features at cost (e.g., Spotify)
- Marketplace Model: Connects buyers and sellers (e.g., Amazon)
What are the main types of business ownership?
- Sole Proprietorship: Single owner, simple setup, high personal risk
- Partnership: Shared ownership between multiple individuals
- Corporation: Separate legal entity owned by shareholders
- LLC: Combines benefits of corporations and partnerships
- Cooperatives: Owned and operated for member benefit
What are the four main industry sectors?
- Primary Sector: Natural resource extraction (agriculture, mining)
- Secondary Sector: Manufacturing and production
- Tertiary Sector: Services (retail, healthcare, hospitality)
- Quaternary Sector: Knowledge-driven (IT, R&D, education)
What characterizes startups and innovation?
Core Characteristics:
- High growth potential
- Technology-focused
- Agile and experimental
Role of IT:
- Enables rapid scaling
- Supports data-driven decisions
- Facilitates innovation
