Chapter 15 Flashcards
Computers and communications hardware and software have changed dramatically:
Flash memory
Networks
What are the two types of IT departments?
Strategic and Operational
What is a Strategic IT Department?
making key decisions about technologies
What is a Operational IT Department?
making decisions that functional groups support
Intranet
a network that has the same look and feel as the Internet but is limited to a single firm’s internal Web servers
Extranet
an open intranet that provides limited access to certain groups of stakeholders, such as key customers and suppliers
Advantages of Cloud Computing
Financial benefit
Flexibility
Encourage collaboration
Processing speed
Managers need information to make good decisions:
Data –> Information
Databases store files in a logical system.
Characteristics of Good Information
Accurate Relevant Timely Understandable Secure
Decision Support Systems (DSS)
Decision support systems provide access to data and the processing power to convert the data into information
Expert Systems (ES)
- Guide decision makers
- Integrate knowledge of experts
- Diverse types of systems are available
- Individual systems deal with narrow set of issues
- Can be time-consuming to program
Business-to-Consumer (B2C)
businesses and final consumers interact
Business-to-Business (B2B)
businesses buy from and sell to other businesses
E-commerce
using the Internet to facilitate the exchange of goods and services
What type of Customers do you find in a B2C Company
Individual final consumers
What type of Customers do you find in a B2B Company
Other Businesses
What is the number of customers in a target market for a B2C Company
Very Large (usually a few dollars to a few hundred dollars)
What is the number of customers in a target market for a B2B Company
Often limited to a few major business customers
What is the size of typical individual transaction for a B2C Company
Relatively small (usually a few dollars to a few hundred dollars)
What is the size of typical individual transaction for a B2B Company
Potentially very large (often several thousand dollars, sometimes several million dollars)
What is the Customer Behavior for a B2C Company
May do some research, but many purchases may be based on impulse.
What is the Customer Behavior for a B2B Company
Usually does careful research and compares multiple vendors. May take bids.
What is the Complexity of Negotiations of a B2C Company.
Purchase typically involves little or no negotiation. Customer usually buys a standard product and pays the listed price.
What is the Complexity of Negotiations of a B2B Company.
Often involves extensive negotiation over specifications, delivery, installation, support and other issues.
What is the Nature of Relationship with Customers for a B2C Company
Firm wants to develop customer loyalty and repeat business but seldom develops a close working relationship with individual customers.
What is the Nature of Relationship with Customers for a B2B Company
Buyers and sellers often eventually develop close and long-lasting relationships that allow them to coordinate their activities.
Information Technology in the B2C Market
- Web 2.0
- Advertising on the Internet
- Viral marketing
- QR codes
- Handling payments electronically
Using Information Technology in the B2B Market
- Reduce the time, effort, and cost of doing business
- Reduced costs to the business
- Large pool of buyers and sellers for negotiations
- Value-added services
Intellectual property
products resulted from creative and intellectual efforts ie. music, software, movies.
