Chapter 8 Flashcards
Income you generate through your operations. Sales through daily business operations minus related expenses. Net income is overall “profit” but can include things such as income from investments, expenses related to financing costs or taxes, or one-time income or expenses such as a gain from a sales or a corporate fine.
Operating income
Money owed for products and services purchased on credit.
Account payable
Period between distributing cash and collecting funds associated with a given operation (e.g., sales).
Cash conversion cycle (CCC)
Problems that arise when organizations cannot easily convert assets to cash. Cash is considered the most liquid asset—that is, the most widely accepted with a value understood by all.
Liquidity problems
The number of times inventory is sold or used during a specific period (such as a year or quarter). A higher figure means a firm is selling products quickly.
Inventory turns
A type of machine learning that uses multiple layers of interconnections among data to identify patterns and improve predicted results. Deep learning most often uses a set of techniques known as neural networks and is popularly applied in tasks like speech recognition, image recognition, and computer vision.
Deep learning
Pricing that shifts over time, usually based on conditions that change demand (e.g., charging more for scarce items).
Dynamic pricing
A line of identifying text, assigned and retrieved by a given Web server and stored by your browser.
Cookie
A classification of software that monitors trends among customers and uses this data to personalize an individual customer’s experience.
Collaborative filtering
Products or services that get more valuable as two distinct categories of participants expand (e.g., buyers and sellers).
Two-sided network effect
Marketing practice where a firm rewards partners (affiliates) who bring in new business, often with a percentage of any resulting sales.
Affiliate marketing program
Offering deep discounts of a limited quantity of inventory. Flash sales often run for a fixed period or until inventory is completely depleted. Players include Gilt Groupe and Amazon’s Zulily in fashion, and One Kings Lane in home décor.
Flash sales
An accounting term for an intangible asset above and beyond the operations value of the firm. Goodwill can include the perceived value of the company’s brand name, customer base, and loyalty, positive employee relations, as well as proprietary technology and patents.
Goodwill
Term referring to the difference in access to technologies such as computing, wireless, and broadband Internet among wealthy and poor communities. Poor communities with less access often face less opportunity for everything from home schooling to easy access to online public resources.
Digital divide
Exists when a firm’s potential partners see that firm as a threat. This threat could come because it offers competing products or services via alternative channels or because the firm works closely with especially threatening competitors.
Channel conflict
A software-based copy using a pre-defined model of the object being created. For example, an instance of a Windows computer creates a virtual software representation that works and acts exactly like the computer hardware and software it is modeled after.
Instance
A software-based representation of a physical computer, complete with operating system and any attendant software that are part of the model being instantiated. You can use a virtual machine like a physical machine, and install software, create files, etc. Virtual machines can also be subject to viruses, security vulnerabilities, and other weaknesses of physical computing, although a cloud computing provider can take some measures to prevent attacks and provide backup and redundancy.
Virtual machine
A set of databases designed to support decision-making in an organization.
Data warehouse
Structured Query Language—the industry-standard language used to create and manipulate databases.
SQL
A term used for non-tabular databases that are structured differently than relational tables.
noSQL
A randomized group of experiments used to collect data and compare performance among two options studied (A and B). A/B testing is often used in refining the design of technology products, and A/B tests are particularly easy to run over the Internet on a firm’s website. Amazon, Google, and Facebook are among the firms that aggressively leverage hundreds of A/B tests a year in order to improve their product offerings.
A/B Test
Include receiving and packaging costs, in addition to shipping costs.
Fulfillment costs
In software development (sometimes also called project fork). When developers start with a copy of a project’s program source code, but modify it, creating a distinct and separate product from the original base.
Fork
Digital Millennium Copyright Act—U.S. law protecting copyrighted works from unauthorized digital distribution.
DMCA
