Book Notes - Chapters 4, 8, 6, 9 Flashcards
(CIO) Chief Information Officer
Executive responsible for managing all information resources and processes in an org
Knowledge Worker
Worker who develops and uses knowledge, contributing to and benefiting from information used in performing various tasks, incl: planning, acquiring, searching, analyzing, organizing, storing, programming, producing, distributing, marketing or selling functions
Technology Transfer
Formal transfer of rights to use technology given to the user by the owner (usually developer)
Intrapreneurs
Entrepreneurs who apply their creativity, vision and risk taking within large organizations rather than starting companies of their own
Small Business
Business that is independently managed, is owned by an individual or a small group of investors, is based locally ad is not a dominant company in its industry
Business Plan
Formal written statement that describes in detail the idea for a new business and how it will be carried out, and includes a general description of the company, the qualifications of the owner(s) a description of the product or service, an analysis of the market, and a financial plan
Debt
Form of business financing consisting of borrowed funds that must be repaid with interest over a stated period
Equity
Form of business financing consisting of funds raised through the sale of shares
What is technology?
Technology is the practical application of knowledge
What is information technology?
The study or use of systems (especially computers and telecommunications) for storing, retrieving, and sending information.
What is technology planning?
Technology planning is a continual process to ensure that businesses are effectively and efficiently managing their Technologies
List the steps involved in technology planning
1 requirements analysis 2 design 3 implementation 4 testing 5 feedback 6 evolution
What are complementary Technologies and why are they important?
Complementary technology is like apps for iOS or Android, they are important because as complementary technology grows so does the supporting technology (installed base). As they all grow together they become more popular and more users tend to jump on board. The opposite can also happen, when less complimentary technology is available
Why is the installed base important?
The installed base is important because if not only allows complimentary technology to be developed an integrated within the installed base but the size and number of users of the installed base will also determine the exposure amount. This can greatly affect the success rate of complementary technology and the lifespan of the installed base
What are network effects?
Network effects exist when the value of a product depends on the number of users Facebook and Twitter are good examples of this. You would not be using Facebook or Twitter if your friends were also not using it.
How can tracking day-to-day activities increase business success?
Tracking day-to-day activities help increase business success as businesses can adapt to changing market conditions rapidly, reducing the risk of sales loss and increasing the chance of success by tailoring the business strategy to meet the market conditions.
Why is it important to protect our information?
Supporting to protect your personal information since your information can be collected, shared, and used to personally and financially harm you or your business
What expenses are associated with technology acquisition and maintenance?
Technology development requires companies to continually evaluate their existing technology and determine if new technology would provide better competitive advantages.
One of the critical considerations in mergers and Acquisitions is the compatibility of different Technologies used in each company some considerations would be whether to keep the technology separate, use one of them, or combine both. Regardless of the decision it is a very expensive process in both time and money
Why is it important that social media is current and relevant to customers?
Social media benefits includes increased brand recognition, increased brand loyalty, ease of switching from one retailer to another, lower marketing cost, increased numbers of consumers visiting social media sites. Social media allows small businesses with Niche markets to expand and have a global presence.
Why has online retailing increased?
Retail companies are taking on intermediaries and selling directly to their customers. New technologies has allowed retailers to sell globally such as language and customer support translation tools.
Describe several types of entrepreneurs
Classic Entrepreneur - Some are Micropreneurs, they start small and plan to stay small. Mainly for personal lifestyle reasons. Contrary there are also Growth-Oriented entrepreneurs, who are individuals who want their businesses to grow into huge corporations.
Multipreneurs/Serial Entrepreneurs - Thrive on the challenge of building a business and usually start a series of companies
Intrapreneurs - Employees that work for a business but enjoy the freedom to nurture their ideas, develop new products. They have a high degree of autonomy to run their own mini-companies within the larger enterprise.
Describe the traits and skills of successful entrepreneurs.
Ambitious, Independent, Self-Confident, Risk Taking, Visionary, Creative, Energetic, Passionate, Committed
What is the difference between entrepreneurs and business owners?
Business owners are more managers than creators.
What are some common major factors that motive entrepreneurs to start businesses?
Reasons include: Financial Independence, frustration working for someone else, feeling of personal satisfaction for the work you created and developing the lifestyle you want.
What does it mean when they say an entrepreneur should work “on a business” and not “in it”?
There is a bridge every entrepreneur must cross in order to grow a business beyond a certain point, a point where they must transition from “doing” to “leading.”
Why are small businesses becoming so popular?
Independence and a better lifestyle, Personal satisfaction from work, Rapidly changing technology, Outsourcing, Major corporate restructurings and downsizing.
Advantages and Disadvantages of small businesses
Advantages - Flexibility to adapt quickly to changing market conditions, innovation can happen faster, operate more efficiently, increased personal one-on-one customer service.
Disadvantages - Difficulty obtaining financing, limited variety of employee skill-set may impact growth, complying with regulations is expensive for smaller companies, major time commitments by the owners
Angel investors
Individual investors or groups of experience investors who provide funding for start-up businesses
What are the drawbacks of sole proprietorship?
Unlimited Liability Difficulty in raising capital Limited managerial experience Trouble finding qualified employees Personal time commitment Unstable business life Losses are the owners responsibility
Business Development Bank of Canada BDC
The bank that provides small and medium-sized businesses with flexible financing, affordable consulting services, and venture capital
Angel Investors
Individual investors are groups of experienced investors who provide funding for start-up businesses
Venture capital
Financing obtained from investment companies that specialize in financing small, high growth companies and receive an ownership interest and a voice in management in return for their money
Business Development Bank of Canada BDC
A bank that provides small and medium-sized businesses with flexible financing, affordable consulting services, and venture capital
How can potential business owners find new business ideas?
Many Executives get ideas for their companies while working in the same or related industry, other sources of inspiration or personal experiences as a consumer, hobbies and personal interest, suggestions from customers, family, and friends, and college courses and other education. Reading entrepreneurship and small-business magazines along with visiting their websites regularly is an excellent way to keep up with trends.
Why is it important to develop a business plan? What should a plan include?
If you require financing for your startup business you need to find Angel Investors and create an interest for them a solid business plan to show potential for solid return on their Investments is a good way to start.
Plans should include the following: cover page, table of contents, executive summary, Target customers, competitor analysis, description of company, product or service plan, marketing plan, operations and development plan, management team, critical risks, offering, exit strategy, financial plan, and finally the appendix of supporting documents.
What financing options do new business owners have?
Loans, government-sponsored programs, 3F, venture capitalist, short-term loans, line of credit, and reinvesting profits or selling off shares of the company
Summarize the risks of business ownership
Tech risks: is the idea possible? How long will it take, how much will it cost?
Management: can you pull off the idea? What’s your skill-set? Do you have the team to do it?
Market: are their customers that will use the product or service?
Finance: loans, government-sponsored programs, three F’s, venture capitalist, short-term loans, line of credit, and reinvesting profits or selling off shares of the company
How is the Internet affecting small business?
Internet driven entrepreneurs are 25% more likely to be women and 25% more likely to be university-educated customers are more comfortable with technology technology is not only having a significant impact on traditional business but also providing new opportunities to start a business many internet users are either starting internet based businesses or buying from them. The popularity of eBay and other e-commerce sites of giving the rise to a new kind of entrepreneur, mumpreneur X corporate professionals using web driven businesses specializing in the sales of specific items.
How did the economic crisis of 2008 and 2011 encourage some to become business entrepreneurs?
The crisis of 2008 and 2011 and the economic challenges that began in 2014 resulted in many people without jobs, well for the most part this was devastating for Summit provided the motivation to live their dream and start their business. Some entrepreneurs feel that small businesses offer more Financial Security than larger corporations that have the potential to lay off employees. Small businesses are in the hands of the owners while large businesses are in the hands of other people.
Partnership
An association of two or more individuals who agree to operate a business together for profit
General partnership
A partnership in which all Partners share in the management and profits, each can act on behalf of the company and has unlimited liability for all its business obligations
Limited partnership
A partnership with one or more General Partners who have unlimited liability and one or more limited partner whose liability is limited to the amount of their investment
General partners
Partners who have unlimited liability for all of the company’s business obligations and who control its operations
Limited partners
Partners whose liability for the company’s business obligations is limited to the amount of their investment, helped to finance the business but do not participate in the company’s operations
Limited liability partnership LLP
Partnership in which each partner is protected from responsibility for the acts of other partners and each party’s liability is limited to harm resulting from the Partys own actions
Corporation
Legal entity with its own rights and responsibilities separate from its shareholders, who therefore are not personally liable for the entities actions and liabilities
Public corporation
Corporation who shares are widely held and available to the General Public
Private Corporation
Corporation whose number of shareholders is limited, normally restricts the transfer of shares to third parties, and shares do not trade on a recognized Stock Exchange
Shareholders
The owners of a corporation who hold shares of stock, share or shares, that provide certain rights, also known as stockholders
Board of directors
A group of people elected by the shareholders to handle the overall management of a corporation, such a setting major corporate goals and policies, hiring corporate officers, and overseeing the company’s operations and finances
One-person Corporation
A corporation with only one person as a shareholder common and professional practices, examples such as medical doctors, accountants, or lawyers, and in trades such as plumbers and electricians
Crown corporations
Companies that only the provincial and federal governments can set up
