Midterm Review Flashcards
5 IT Mega Trends
[Mobile]
Mobile devices are often the primary means of accessing the internet.
[Social Media]
The rise of social media is largely based on the network effect
[Internet of things]
A network of a broad range of physical objects that can automatically share data over the internet
Ex. Cardiac monitor that can alter physicians of patients health risks; Home automations sensors; Apple Watch, Smart fridge
[Cloud Computing]
Using the internet as the platform for applications and data
ex. iCloud, google docs, etc.
[Big Data]
Extremely large complex datasets, which are characterized as being of high volume, variety, and velocity.
Component of IS systems
Hardware
Refers to physical computer equipment, such as a computer, tablet, or printer, as well as components like a computer monitor of keyboard.
Hardware includes not only “traditional” computer components but a variety of other input and output devices including sensors, cameras, actuators, and the like.
Software
Refers to a program or set of programs that tell the computer to preform certain tasks
Software enables organizations to utilize the hardware to execute their business processes and competitive strategy by providing the computer hardware with instructions on what processing functions to preform.
Telecommunications Networks
Refer to group of two or more computer systems linked together with communications equipment
Telecommunications networks allow computers to share data and services, enabling the global collaboration, communication, and commerce we see today.
Types of Information systems
Management information systems
Collaboration System
Social Software
Geographic Information System
Management information systems
Produce detailed information to help manage a firm or part of a firm
Ex. Inventory management and planning system, student enrollment management
Collaboration System
Enable people to communicate, collaborate, and coordinate with each other
Ex. E-mail system with automated, shared calendar.
Social Software
Facilitate collaboration and knowledge sharing
Ex. Social network, connecting colleagues and friends
Geographic Information System
Create, store, analyze, and manage geographically referenced data.
Ex. Site selection for new shopping mall
Five Primary Competitive Forces
- The rivalry among competing sellers in your industry
Ex. Competition in price, product, distribution and service. - The threat of potential new entrants
Increased capacity in the industry, reduced prices and decreased market share. - Bargaining power of buyers
Ex. Reduced prices, need for increased quality, and demand for more services. - Bargaining power of suppliers
Ex. Increased costs and reduced quality - Threat of substitute products or services from other industries
Ex. Product returns from customers, decreased market share, and losing customers for life
Location Based Services
Location
Determining the basic geographic position of the cell phone
Mapping
Capturing specific locations to be viewed on the phone
Navigation
The ability to give route directions from one point to another
Tracking
The ability to see another persons location
Downsides of Using Social Media
- Online Product reviews
- Microblogging
A blogging platform where the amount of information that can be shared per author is either enforced to be very short. Ex. Twitter - Social Network
Posting the wrong content online (personally and professionally) - Bad vibes going viral
Incidents that go viral
- Microblogging
Issues When Social Media Enters the Workplace
Enterprise (not equal to) Web
Success with technology/social media in a consumer environment does not always translate to success in a corporate environment.
Ex. MySpace shows that success at one point in time is not guaranteed to continue. What appears as seamless magic collaboration is sometimes based on intricate processes
Culture
Many businesses face strong culture resistance. Social media applications, based on the premise of open communication, do not always do well within traditional top/down organizational structures based on rigid hierarchies and control. Further, social media applications base their success on user-driven self-expression.
Organizational Context
Any implementation of social media applications should be driven by a specific usage context; Employees should use the tools (technology/social media) for the right purpose.
Organizational Hierarchies
Organization-wide implementations typically need changes in terms of organizational culture and processes and often the flattening of organizational hierarchies. Therefore, social media implementations need the support and active involvement of senior management to cope with large magnitude of change.
Network Effects and Critical Mass
Within organizations, achieving the critical mass needed for successful social media implications is often difficult and takes a considerable time and patience
Ex. Wikipedia only has a small number of people who choose to actively participate in the creation of content
Generation Gap
When an organization is comprised mainly of baby boomers they are less likely to fully embrace the capabilities of organizational social media applications.
Technological inertia
People are not willing to witch to new applications unless they see real, tangible benefits.
Technology Integration
Organizations have to ensure that any social media applications are integrated well with the organizations existing information systems infrastructure to reap the greatest benefits
Security
Securing information systems infrastructure is a paramount concern. Companies have to balance their desire for enhancing collaboration with the need to protect intellectual property and compliance with rules and regulations
Types of Organizational Strategies
Low-Cost Leadership strategy (Broad & Narrow)
Offers best prices in its industry on its goods and/or services.
Ex. Walmart
Differentiation Strategy (Broad & Narrow)
Attempts to provide better products or services that its competitors.
Ex. Porsche, Nordstrom, and IBM
Best-Cost Provider
Offering products or services of reasonably good quality at competitive prices.
Ex. Dell
Narrow Market
Focusing on a particular segment of consumers
Ex. Apple when they focused on high quality computer for how and educational markets
Broad Market
Aims at many different types of consumers
Components of a Business Model
Business Model
A summary of a businesses strategic direction that outlines how the objectives will be achieved; specifies the value proposition as well as how a company will create, deliver, and capture value.
Customer Segments
The customers targeted with he product/service offering
Value Proposition
The utility that the product/service has to offer to customers
Channels
The ways in which the product/service offerings reach the target customers
Customer Relationships
The relationships formed with the target customers
Revenue Streams
The way a firm generates income
Key Resources
The most important assets needed to make the business model work
Key Activities
The most important activities needed to make the business model work
Key Partners
The network of partners and suppliers needed to make the business model
Revenue Types
Affiliate Marketing
Paying businesses that bring or refer customers to another business
Advertising
Free services are provided to customers and paid for by a third party
Subscription
Users pay a monthly or yearly recurring fee for the use of product/service
Licensing
Users pay a fee for using protected intellectual property
Transaction Fees/Brokerage
A commission paid to business for aiding in the transaction
Ex. PayPal, eBay, Groupon ect.
Traditional Sales
A consumer buys a product/service from the website
Freemium
Basic services are offered for free, but a premium is charged for special features
Moores Law
Intel Cofounder Dr. Gordon hypothesized that the number of transistors on a chip would double about every 2 years.