Chapter 5 Technology Disruption And Business Environment Flashcards
What is disruptive technology?
Technology that fundamentally changes how consumers, industries, or businesses operate.
Disruptive technology often creates new markets and value networks, potentially displacing established market leaders.
Give an example of a disruptive technology.
Uber, which created a business model using a smartphone app to connect riders with drivers.
This model eliminated the need for licensed drivers and traditional taxi services.
What are the key reasons for the growth of disruptive businesses?
Advancements in technology enabling cost reduction and efficiency improvements.
The modern on-demand economy has increased consumer access to technology.
In which sectors are the largest growths of disruptive technology observed?
Health services and financial services.
Financial technology, or Fintech, is a significant part of this growth.
What is Fintech?
Financial technology that provides banking services, investment advice, and money transfer solutions.
Fintech companies challenge traditional banks by offering innovative services.
What is blockchain technology?
A decentralized distributed ledger that records transactions between two parties.
It eliminates the need for a central server and manual verification.
How does blockchain improve transaction processes?
By using peer-to-peer agreement to record and verify transactions.
This enhances transparency and security in financial transactions.
What are the three basic areas driving rapid IT development?
Processing power, communication speed, and storage capacity.
These advancements are crucial for the evolution of various technologies.
True or False: Disruptions are always adopted immediately by humans.
False. Disruptions are often resisted initially but adopted when deemed useful.
This resistance can be seen across various industries.
What is e-business?
The use of the Internet to conduct business transactions.
E-business encompasses a range of activities, including online shopping and electronic data exchange.
How has the Internet revolutionized business?
By enabling new ways of conducting business and sharing information.
It has significantly impacted education and household communication as well.
Fill in the blank: Nearly every manager today has a _______ or _______ as part of their daily tools.
desktop; laptop.
This reflects the integration of technology in management practices.
What is E-business?
The transformation of key business processes through the use of internet technologies
E-business has grown dramatically and become a way of life for all types of businesses.
How has E-business impacted small and medium businesses?
It has provided a competitive edge over rivals by enabling them to add new services and invest in technology systems
Affordability and ease of technology have facilitated this transformation.
What does M-commerce stand for?
Commerce conducted via mobile or cell phones
M-commerce provides consumers with an electronic wallet for transactions.
What can people do through M-commerce?
Trade stocks or make consumer purchases
Purchases can range from hot dogs to washing machines.
What is social networking?
A system using technology to connect, explore interests, and share activities around the world
Many businesses use social media tools to reach out to customers.
What are major online advertising tools?
- Search Engine Optimization (SEO)
- Facebook Ads
- Google Ads and clicks
- Website banners
- Blogs and Vlogs
These tools are essential for marketing in the digital age.
Define a blog.
A web-based journal or log maintained by an individual with regular entries of commentary, descriptions, or accounts of events
Blogs can include graphics or video.
How do businesses use bloggers?
To push their products in the market and compete with other brands
This is often done through free products or invitations to brand launch events.
What is a vlog?
A video weblog that captures moving images
A new generation of blogs that emerged in the 21st century.
What are the effects of technology and internet-based companies on industries?
Accelerating the pace of disruption at an alarming rate
Examples include Google disrupting the Yellow Pages and Airbnb disrupting the hotel industry.
How has Google disrupted the Yellow Pages business?
By reducing its value from $60 billion to below $1 billion
This demonstrates the significant impact of digital technology on traditional business models.
What is the value of Airbnb in the hotel industry?
Over $25 billion
Airbnb has the largest inventory of rooms without owning a single property.
What is the market value of Uber?
Over $50 billion
Uber has disrupted the local travel and taxi business without owning a single car.
