Tech factors

Question 1

What is Technology?

Answer 1

Equipment & Material Advancements

Question 2

Information Technology Advancements

Answer 2

Devices & software for creating, storing, exchanging, and using information
E.g. cloud; data analytics; video calls

Question 3

Example: Tesla factory in Germany

Answer 3

(process innovation) to use fewer parts, making their cars lighter to make batteries last longer, cheaper, faster & better quality.

Question 4

Significance

Answer 4

Demands constant scanning & learnings
Changes sources of competitive advantage & barriers to entry
Creates opportunities for new products & efficiencies
Legacies/compatibility make change challenging

Question 5

Five Industries Radically Changed by Technology

Answer 5

Music
Travel
Transportation
Publishing
Retail

Question 6

Technology Shifts

Answer 6

• Power
• build and move
• Communication
• Information
• Smart tech

Question 7

Vicious cycle

Answer 7

Availability of complimentary goods - Attractiveness to users - Number of users - Attractiveness to producers of complimentary goods

Question 8

Technology Standard

Answer 8

enables compatibility (compl. goods)
E.g. Apple’s iPhone vs Blackberry

Question 9

Network Effect

Answer 9

value increases as user base grows (e.g. Apple & Blackberry again)

Question 10

Lock-In

Answer 10

extent to which a customer is “committed” to a product or service
Larger = greater resistance to switch

Question 11

Blockchain and challenge

Answer 11

distributed ledger that ensures accuracy & security of data
Challenge: requires many participants on one platform

Question 12

Some Opportunities

Answer 12

Products – innovation, uniqueness, value
Improved information use, access & sharing
Competitive advantage; barriers to entry
Customization

Question 13

Some Threats

Answer 13

Imitation → information costly to develop but cheap to share
New technologies & new entrants in unfamiliar areas
Need new capabilities, resources & learning
Information overload & security
Disconnected employees & customers

Question 14

4 Types that Create Varying Challenges for Large Firms

Answer 14

• Radical/disruptive
• Architectural
• Modular
• Incremental/sustaining

Question 15

Incremental/Sustaining Innovation

Answer 15

Improves existing products in expected ways
Target:
-Mainstream
-High-margin customers w/ enhancements in products functionality
*Incumbents usually win; less risky

Question 16

Radical/Disruptive Innovation

Answer 16

-Different performance attributes not valued by mainstream
-Starts in lower performance segment, improves rapidly; enters mainstream market
*New, disrupting firms often win; big risk
internet, electricity, microwave oven,