PEST: Technology factors Flashcards
PEST: technologic factors elements
internet
information tech
material and equipment
5 industries radically changed by tech.
music
travel
transportation
publishing
retail
complementary goods
needed for value
additional products required for main products value
technology standard
enables compatibility of complementary goods
installed base
number of users for a product
lock in
extent to which a customer is committed to a product/service
larger lock in
greater resistence to switch
causes of lock in
habit or system
learning
investment
switching costs
solution of lock in
lower switching costs
offer leap in performance
network effect
value increases as user base grows
solutions of network effect
compatibility
partnerships
incentives
build base
what’s the vicious/virtuous cycle
positive or negative feedback loop in which network effects either enhance or diminish products appeal
virtuous
positive
A virtuous cycle is a positive feedback loop where one favorable action or condition leads to another, reinforcing overall success and growth.
ex. network effect
vicious
negative
A vicious cycle is a negative feedback loop where one unfavorable action or condition leads to another, reinforcing decline or failure.
what are the elements in the virtuous/vicious cycle
availability of complementary goods -> attractiveness to users -> number of users (installed base) -> attractiveness to producers of complementary goods ->
current business tools
ecommerce and omni channel
virtual and augmented
artificial intelligence
ecommerce and omni channel
online research/shopping
seamless experience between platforms, online/physical experience
benefit of ecommerce and omni channel
enhanced marketing
improved efficiency
enhanced data
higher margins
virtual and augmented
replicates an environment or maps over reality
benefit of virtual and augmented
experience without purchase
reduced cost
enhanced experience
artificial intelligence
machines that are programmed to think like humans
fast gathering of data
AI benefits
task automation
less bias
better/faster decisions
predictive capabilities
opportunities of technology
products-innovation, uniqueness, value
improved info use - access and sharing
competitive advantage; barriers to entry
customization
technology threats
imitation - info costly to develop but cheap to share
new tech. and new entrants in unfamiliar areas - need new capabilities, resources and learning
info overload and security
disconnected employees/customers
