Watson et al. Chapters 1+3 Flashcards
1
Q
What does ‘Electronic Commerce’ mean?
A
The use of computer networks to improve organizational performance. Use of IT to enhance communications and transactions with all of organization’s stakeholders.
2
Q
What are the three risks that organizations face?
A
1) Demand risk: be flexible!
2) Innovation risk: (innovation leads to imitation, which leads to oversupply)
3) Inefficiency risk: failure to match competitors’ uni costs
3
Q
What does ‘disintermediation’ mean?
A
The elimination of intermediaries (brokers/dealers/”the middle man”)
