9.4 Assessing Use Of Digital Technology. Flashcards
Why do businesses feel pressure to adopt digital technology?
Reach new market segments in new locations.
Reduce costs by integrating tech into operations.
Access and analyse big data.
Define E-commerce.
Digitally enabled commercial transactions amongst organisations and individuals.
Name 3 benefits of using E-commerce.
Increases size of target market.
Reviews - build reputation.
Better communication.
What are the drawbacks of E-commerce?
Can break down - not 100% reliable.
Reviews.
Increases amount of competition.
What is a business model?
The plan for successful operation of a business.
What are the 3 ways a business can respond to changes in technology?
Do nothing.
Hybrid approach.
Transition.
What would a hybrid approach look like?
Keep old but launch new targeted with new approach.
Why would it be a good idea to keep a hybrid approach?
Have old to fall back on if new fails and vice versa.
What would it look like for a business completely transitioning to new technology?
Reinvent business model.
Name 2 advantages for the first mover into a new market?
Potential to make lasting impression - build brand reputation and loyalty.
Time to refine processes and perfect product before competitors.
Give one example of a business who was an unsuccessful first mover.
Tupperware.
Become generic term however competitors were able to identify their mistakes.
In the end Tupperware went bankrupt.
Name a disadvantages of being the first mover.
No path to follow as establishing new market.
What is big data?
Large data sets that identify trends that can be used to assist decision making.
How do businesses retrieve big data?
User interactions with websites.
Social media.
Location data.
Define data mining.
The process of analysing data from different perspectives and summarising it into useful info.
