Week 1 Flashcards
What is the business model canvas?
A business model explains how a business creates and delivers value (providing a product/service that meets customer needs) and captures value (being profitable)
How does technology impact a business
- Technology is deeply embedded in our lives
- Data is driving decision making
- Faster, cheaper, technology aids economic development
- Creating value and delivering value impact performance in terms of capturing value
- Value and a competitve advantage are created through technology
Information Technology
Information technology can be defined technically as a set of interrelated components that collect (or retrieve), process, store, and distribute data or information to support decision making and control in an organization
Purposefully designed system that brings in data, computers, procedures, and people together to manage information important to an organizations mission
Created by: hardware, software, and data - to …
- provide information processing capabilities to handle information
- provide information for management decision making
- solve problems
How is information technology created
Information technology is created by combining
- hardware
-software
- data
Why do companies us Information Technology
Information Technology is used to
- provide information processing capabilities to handle information
- provide information for managerial decision making
- solve problems
Digital transformation
Digital transformation - can reinvent an industry
ex. Uber –> ‘Taxi Service’ that does not own its vehicles
Platforms (not products) and ecosystems
Platforms - connects groups of users
- technology makes building and scaling cheaper and faster
- ex. Amazon
Cloud Coputing and Software as a Service
Cloud computing - companies and individuals can ‘rent’ computing resources (eg. processing and storage) that we previously had to ‘buy’ at great expense (ex. Amazon Web Services)
Software As a Service (SaaS) - individuals and companies can subscribe to use software instead of buying one-time license and subsequent upgrades (ex. Microsoft Upgrades)
Internet of Things
Internet of Things (IoT) - a vision where low-cost sensors, processors, and communication are embedded into products and our environment
Allows a vast network to collect data, analyze input, and automatically coordinate collective action (ex. Smart products such as door locks, thermostats, and watches)
Key trends driving change
Key Trends Driving Change:
- mobile. ex. smartphone, app store, and social media accelerate business growth
- moore’s law & other factors - faster cheaper technology
- big data - enabling analytics and artificial intelligence
- global pandemic - accelerated tech embedment into our lives at incredible pace
Big Data -> massive datasets, structured and unstructured
Data Analytics -> insights from small and big datasets
Artificial Intelligence -> uses math/algorithms to mimic intelligence (ex. machine learning)
What are the aspects of the business model canvas?
1) Creating value
- customer relationships
- customer segments
- channels
- value propositions
2) Delivering Value
- key partners
- key activities
- key resources
3) Capturing value
- cost structure
- revenue streams
What factors are accelerating business and technology and lowering cost
Factors accelerating business and technology:
- digital transformation
- platforms
- cloud computing
- software as a service (Saas)
- Internet of things
Technology’s impact on industries today
As technology becomes cheaper and more powerful, it pervades more industries and is becoming increasingly baked into traditional non-financial industries
Finance - changes viewpoint on M&A activity and transactions in the IPO environment
Accounting - reliability of any audit is tied to the reliability of the underlying technology. Increased regulation to get numbers correct (ex. Sarbanes-Oxley Act)
Marketing - online channels to track and monitor consumer activities
Operations - quality programs, supply management, factory automation
Human Resources - social media is the new resume, online hiring processes
Law - activity increase in intellectual property & patents; firms need legal skillset of employees to meet those respective demands
Information Systems - data analytics, project management, prorgammers
