3.9.4 Flashcards
What does digital technology involve?
Digital technology involves the use of digital resources to find, analyse, create, communicate, and use information digitally. It covers a wide range of technologies and applications.
What is e-commerce?
E-commerce involves the buying and selling of goods or services, or the transmitting of funds, over an electronic network.
What is big data?
Big data refers to the vast amounts of data that can be mined from multiple sources to identify trends and patterns, often used for decision-making.
What is data mining?
Data mining is an analytical process used to identify patterns and relationships between variables within large sets of data.
What is Enterprise Resource Planning (ERP)?
ERP is a software application that integrates all aspects of a business (such as inventory, manufacturing, marketing, sales, etc.) into one system to aid in decision-making and improve efficiency.
What are the key benefits of ERP software?
ERP software offers a unified view of a business, helping to identify strengths and weaknesses, improve workflow, reduce duplication, and increase efficiency. This can ultimately improve a company’s bottom line.
What are the main drawbacks of ERP software?
The main drawbacks of ERP software include the high cost of installation and training, potential dips in productivity during the implementation phase, and the need for IT infrastructure upgrades and ongoing maintenance.
What is the purpose of data mining in business?
Data mining helps businesses identify previously unseen relationships between data sets, predict future trends, extract performance insights, and develop actionable strategies.
How is data mining used in marketing?
Data mining supports marketing through sales forecasting, database marketing, market segmentation, and e-commerce basket analysis to predict customer behavior and enhance targeting strategies.
What is the role of big data in decision-making?
Big data is used to track performance, generate marketing insights, improve decision-making, enhance security, and manage capacity efficiently through the analysis of large data sets from diverse sources.
What is m-commerce?
M-commerce refers to commercial transactions conducted via mobile devices, such as smartphones and tablets. It is the fastest-growing segment of e-commerce, driven by the widespread use of smartphones.
How has m-commerce impacted e-commerce?
M-commerce has transformed the way consumers make purchases, with mobile devices becoming increasingly important for both business-to-consumer (B2C) and business-to-business (B2B) markets.
What is cyber-hacking?
Cyber-hacking refers to unauthorized access and manipulation of computer systems and networks. As businesses digitize more data, the risk of data breaches and cyber-attacks increases.
How does digital technology impact the product life cycle?
Digital technology, particularly e-commerce, is believed to shorten product life cycles and accelerate the decline phase. It also reduces “time to market” for new products, speeding up growth phases.
What are the key impacts of e-commerce on marketing?
E-commerce impacts marketing by enabling differentiation, shortening product life cycles, increasing the use of digital promotion, facilitating dynamic pricing, and enabling broader product ranges and localization.
How does e-commerce impact human resource management?
E-commerce increases the need for a workforce with broader digital skills, affects workforce planning (e.g., seasonal demand), raises concerns about warehouse working conditions, and promotes automation in business operations.
What are the operational impacts of e-commerce?
E-commerce affects operations by making logistics complex, emphasizing relationships with suppliers, requiring economies of scale, and making it easier for smaller firms to sell online.
What are the financial implications of e-commerce?
E-commerce requires significant investments in platform setup and integration, potentially increases the need for multi-currency transactions, and may expose businesses to the impact of exchange rate fluctuations when selling internationally.
What are some of the opportunities arising from e-commerce?
Opportunities include greater global reach, reduced time-to-market for new products, more targeted marketing, and dynamic pricing. E-commerce has also led to the rise of successful digital-first companies like Uber and Snapchat.
What is the greatest threat posed by e-commerce to businesses?
The greatest threat is failing to adapt to e-commerce. Rapid technological advancements can disrupt existing business models, and businesses that do not keep up may become less competitive or obsolete.
How has e-commerce impacted the finance function of businesses?
E-commerce requires substantial investment in digital infrastructure, creates multi-currency transaction needs, and exposes businesses to risks associated with international sales, including the effect of exchange rate changes.
