Lecture 1:Concepts and Tools Flashcards
What is Business?
To advertise and sell or to be a serivce of an innovative good/product to customers and maintain money income.
List all 9 sections in a business model
- Key Partners
- Key Activities
- Key Resources
- Offering
- Relationships
- Channels
- Customer Segments
- Cost structure
- Revenue streams
What three concepts make up the “core business structure”?
- Business Strategy
- Information and technology
- Business Model
Give 4 examples of IT and Business scenarios
- IT as a business
- IT within a business
- Strategic impact of IT
- A business perspective on IT
List an example of each of the 4 business scenarios.
- IT as a business - IT products
- IT within a business - digital marketing
- Strategic impact of IT - strategic partnership with IT companies
- A business Perspective on IT - IT project management
What is a product?
More then just a physical object. Can be a service, can be someones attention, people, places, homes, organisations, a whole Eco-system that satisfies a need or a want in exchange for money or something else in value.
What else does products offer?
Consumer value! What the customer appreciates - quality, convenience, on-time delivery.
There are two distinctive ideas products offer? What is the example given in class?
I could either buy a lawn mower OR hire a company to do it for me. All depends on consumer value.
Three way to create Goods.
- produce hardware - computer, devices, server
- develop software - programs, websites, apps
- creating information - videos, music/guides, processes
Two types of providing a service?
- Personal services - consulting, support
2. Technical Service - cloud, hosting, security
What is a service?
An interaction, between a customer or client and a service provider in relevance to either a product or either another aspect that is beneficial for them.
What are the 6 new business models?
- Direct Product or service sale
1a. Direct digital product or service sale - Commission based Sale
2a. Digital Product commission sale - Subscription or rental of services
- Advertising
- Infomediary
- Other Business Models
Explain Direct Product or Service Sale Model
Directed direct from wholesaler to customer, and cutting out retailers. E.g Woolworths, David Jones. This model creates a disadvantaged to normal distribution network. However; on the plus, it can decrease business rent.
List Direct digital products
A. Commercial reports B. Video capture services C. Security and other software D. Web creation E. Libraries used in development F. Web hosting, telecoms (Skype) e.g writing an essay - buy to get a copy online
What are Commission based sales?
- Transaction Broker - PayPal, Credit-Card, B-PAY all take transaction fees
- Marketplace - Apple app Store and E-bay takes commissions from fixed-price products
- Auction Broker - E-bay creates auctions. They then take commission from sales of other peoples products via their marketplace services
- Virtual Mall - Amazon allows “shops” to sell a variety of products, providing delivery and payment options for the sellers.
Digital Product Commission Sales. What are they?
They are commissions from Digital Products.
a. music - iTunes
b. photographs/images - used by shuttershock
c. games
d. community sites
e. training videos
What is a freemium/crippleware?
A restricted, temporary/ tester to a software/ game or any web-service that is free of charge, to tempt interested customers to upgrade to a full version or pay for an extra functionality.
Provide examples of Freemium restrictions
- Feature limited - LinkedIn, newspaper subscriptions
- Customer type - educational
- Time limit - 30 day trial
- Effort limited - purchase during game to improve performance
- Support limited
- Capacity or user-licence limited - Gmail
Subscription or rental of service business model. What is this?
Generally a time based product. You pay for an amount of days. If you want more, you pay more.
- Time sensitive products and so the rental is time-based (electricity, water).
- Online games
- Software, music, news, videos
- Magazines, Newspapers
- Microsoft office 365
- Support services: for advisory products.
List all 8 methods on how to pay for Advertising.
- Fixed Price.
- CPM: Cost per mille.
- CPC: Cost per click.
- CPS: Cost per Sale
- CPL: Cost per Lead
- CPA: Cost per action.
- Hybrid.
Infomediary. What type of business model is this?
Independently collects information about consumers and products and can use this as a market research. The research is then sold back to organisations and they will share part of the research with consumers.
List three business models that are used, but not as often?
- Street performer
- Tiered services - Bronze, silver, Gold support services
- Use of Social media - tweeting, FB promoting, instafamous
Explain what a CPL is?
CPL: Cost per Lead: a cost associated with each lead (potential sale), created from a click on the advertisement.
In the business form of Advertising. Explain what a CPS is?
CPS: Cost per Sale: a cost associated with each sale resulting from a click on the advertisement
In the business form of Advertising. Explain what a CPA is?
CPA: Cost per action: Where payment is based on a desired action that the advertiser requires.
Explain what a CPC is?
CPC: Cost per click: a cost associated with each click on the add
CPM? what does that mean in terms of Adverting Business Model?
Cost per mille. A count is taken every time add is advertised to a website.
Explain how “Fixed Rate” is a form of charging through Advertising.
Fixed Price: A set amount of money for displaying advertising, usually restricted by time.
In regards to advertising as a way of business Model. What does the term Hybrid mean?
Hybrid: a combination of all seven other methods on how to charge using advertising.
