Test 3 chapter 15 Flashcards
The Digital Revolution: A Brief History
1937 to 1942: World’s first electronic digital computer was developed at Iowa State University
1947: The transistor was invented
1950’s: Invention of the silicon chip
1970’s: The decade for companies like Atari, Commodore, and Apple
The Digital Revolution: A Brief History- 2
1981: IBM introduced its first Personal Computer (PC)
1982: The 286 microprocessor was unveiled
1984: Apple introduced the Macintosh
1993: The creation of the Pentium processor
The Digital Revolution: A Brief History- 3
1969: The Internet can trace its origins (Defense Advanced Research Projects Agency)
1972: E-mail was sent for the first time
1973: The creation of a cross-network protocol; the true birth of a network of networks or the Internet
1993: Tim Berners-Lee invented URL, HTML, and http Also the first commercial browser was created
Web users 1993: 600,000; 2010: 1.5 billion
Search engine market share: Google 64%, Yahoo! 20% Bing, new in 2009
Innovator’s Dilemma
Staying committed to a current, profitable technology
Failing to provide adequate levels of investment to new and possibly risky technologies
Company is responding to the needs of established customers
Value Network
Found in every industry
Cost structure that dictates the margins needed to achieve profitability
Boundaries are defined by the unique rank ordering of the importance of various product attributes
Each network has its own metrics of value
Sustaining Technologies
Incremental or radical innovations that improve product performance
Most new technologies developed by established companies are sustaining in nature
The vast majority of innovations are sustaining in nature
Disruptive Technologies
Redefine performance
New entrants to an industry
Enable something to be done that was previously deemed impossible
Enable new markets to emerge
Global E-Commerce- facts
Every 48 hours, Yahoo records more than 24 terabytes of data about its users’ online habits— equivalent to all the information contained in all the books in the Library of Congress
Between 2003 and 2008, the number of Internet users in China increased from 68 million to 300 million; in Shanghai, Beijing and Guangzhou, 50% of all residents use the Internet
37% of European adults—136 million people—shopped online in 2008
Global E-Commerce- divisions
Divided into three broad categories
Business to Business (B2B)
Business to Consumer (B2C)
Consumer to Consumer
(Peer to peer)
Internet penetration
Korea 76.1% (highest)
U.S. 75%
China has 300 million users; largest e-commerce market
Western European online retail and travel sales will grow at 8% CAGR, 2008-2014
37% (136 million) European adults shop online
Categories of Web Sites
see slide
Creating Web Sites
Register a country-specific domain name
Localize the web site in the native language and business nomenclature of the target market
Reflect local culture, customs, and aesthetic preferences
Privacy issues; EU’s strict laws adopted by Canada, Australia, and Asia
Create a distribution system
mobile commerce
Term for conducting commercial transactions using wireless handheld devices such as PDA’s, cell phones
Wi-fi networks have limited range
