Chapter 14-assessing greater use of DIGITAL TECHNOLOGY

Question 1

how is cost effectiveness an advantage to businesses investing in e-commerce?

Answer 1

Allows businesses to cut certain costs- most notably rent in expensive cities
More flexible staffing rather than in retail outlets where they have to base their staffing on estimated customers visiting the store

Question 2

How is increased demand an advantage to businesses investing in e-commerce?

Answer 2

more people can access your products which will inevitably lead to a demand increase

Question 3

how is improved efficiency an advantage to businesses investing in e-commerce?

Answer 3

More likely to match production to demand and therefore there is less waste

Question 4

how is greater profit margins an advantage to businesses investing in e-commerce?

Answer 4

Manufacturers can sell directly to consumers rather than through retailers so there are lower costs

Question 5

what are disadvantages to businesses of e-commerce?

Answer 5

Greater competition
Costs of new tech
customers cant experience the product before buying it

Question 6

what some of the advantages of e-commerce to customers

Answer 6

Wider range
greater info
greater convenience

Question 7

what are some of the disadvantages of e-commerce to customers?

Answer 7

sercurity
cant experience the product before buying it
no customer support

Question 8

What is the definition of e-commerce?

Answer 8

the buying and selling of goods and services and/or the transmission of funds or data using a electronic network such as the internet

Question 9

what is the definition of Big Data?

Answer 9

large pools of data that can be captured, communicated, stored and analysed

Question 10

what are Doug Laney’s three V’s and what do each of them mean?

Answer 10

Volume: the quantity of data being produced for business analysis, lower costs
Velocity: the speed at which the data can be recorded has increased dramatically recently
Variety:Provides opportunity for more unstructured information to be stored eg. emails

Question 11

what was the forth V that was added later?

Answer 11

Veracity: the reliability of the data. Its all good having lots of varied data which can be recorded quickly however if its not reliable then its not worth anything

Question 12

what are the benefits of big data?

Answer 12

Improved decision making, improved security, better marketing info e.g can target segments of the market easier

Question 13

what are the disadvantages of big data?

Answer 13

Reliability of the data

If the potential use of the big data is smaller then it is not worth investing in it

Question 14

what is the definition of data mining?

Answer 14

the process whereby a business transforms raw data into useful information

Question 15

why is data mining more reliable today than 50 years ago?

Answer 15

there is more data to work with which increases its reliability

Question 16

what are some examples of data mining techniques?

Answer 16

data counting and analysis 
Clustering 
Correlation 
Decision trees 
Critical path analysis

Question 17

what is enterprise resource planning?

Answer 17

a business management software that allows a business to monitor activities in every department through the collection and interpretation of data

Question 18

what are the advantages to the functional areas of ERP?

Answer 18

HR: track the work rates of staff to see who needs extra training or when productivity drops
Marketing:tracks how well their promotional products are selling and compares sales before and after promotion
Operations: tracks stock levels, distribution networks and productivity