Wk1:Chap1 - Doing Business In Digital Times

Question 1

What is Big Data?

Answer 1

Datasets whose size and speed are beyond the ability of typical database software tools to capture, store, manage and analyse.

• high volume
• amount, variety, structure and speed is different
• 80/90% unstructured (which makes traditional tech struggle to process and analyse fast)
• studied by data scientists in the field of data science
• big data is time sensitive

Question 2

What is Data Analytics?

Answer 2

The use of software and statistics to find meaningful insight I. The Data, or better understand the Data.

Question 3

What is Data Visualisation?

Answer 3

Helps to understand Data at a glance by displaying data in summarised formats such as dashboards and maps.

Question 4

Why is it important to develop digital business models? To:

Answer 4

• deliver an incredible customer experience
• turn a profit
• increase market share
• engage employees

Question 5

How does Customer Experience (CX) measure up?

Answer 5

There is a strong relationship between the quality of a firm’s CX and brand loyalty, which I turn increases revenue.

Question 6

Cloud computing

Answer 6

• Resource acquisition is “as needed” and without upfront investment.
• resources no longer dependant on buying that resource

Question 7

Machine-to-Machine (M2M) Technology

Answer 7

• a broad label that can be used to describe any technology that enables networked devices to exchange information and perform actions without the manual assistance of humans.

It forms the basis for a concept known as Internet of (IoT) : Objects that connect themselves to the internet with sensor-embedded devices (coined by Kevin Ashton in 1999)

Question 8

Data science

Answer 8

• managing and analysing real time massive sets of data for purposes such as target marketing, trend analysis, and the creation of “individually tailored” products and services.
• analytics as a profession.

Question 9

Social-Mobile-Cloud (SoMoClo Model)

Answer 9

• huge data centres accessible via the internet and forms the core by providing 24/7 access to storage, apps, and services
• handheld and wearable devices and their users form the edge of the cloud.
• social channels connect the core and edge, creating integration of technical and services infrastructure needed for digital business
• makes it possible to “meet expectations”
• “hence customer loyalty and revenue”
• “allows quick response”

Question 10

Digital business.

Answer 10

A social, mobile and web-focused business

Question 11

Business model

Answer 11

How a business makes money

Question 12

Customer experience (CX)

Answer 12

About building the digital infrastructure that allows customers to do whatever they want to do, through whatever channel they choose to do it.

Question 13

Cloud computing

Answer 13

A style of computing in which IT services are delivered on-demand and accessible via the internet

Question 14

Business process

Answer 14

Series of steps by which an organisation coordinates and organised tasks to get work done

Question 15

Processes?

Answer 15

Activities that convert inputs into outputs by doing work

Question 16

Deliverables?

Answer 16

Outputs created through work toward a desired Benidorm or expected performance improvement

Question 17

Performance?

Answer 17

A result of processes where maximising efficiency over one’s competitors is a critical success factor. Performance has to be sustained over time and continuous improvement is strategically important

Question 18

Three basic components of a business process?

Answer 18

1. Inputs (raw materials, data, knowledge, expertise)
2. Activities (work that transforms input & acts on data and knowledge)
3. Deliverables (products, services, plans, or actions)

Question 19

Business process involves

Answer 19

1. People
2. Technology
3. Information

Question 20

Business Process Characteristics (how to prevent things from going wrong) processes may be:

Answer 20

1. Formal processes or Standard Operating Procedures (SOP) : documented and have well-established steps
2. Informal Processes: typically undocumented, undefined, or are knowledge-Intensive

Question 21

Process Improvement: Business Process Reengineering (BPR)?

Answer 21

Continuous examination to determine whether they are still necessary or operating at peak efficiency by eliminating wastes steps

Question 22

Business Process Management (BPM)?

Answer 22

Consists of methods, tools, and technology to support and continuously improve business processes.

• used to map processes performed manually, by computers, or to design new processes.
• requires buy-in from a broad cross section of the business, the right technology selection, and highly effective change management to be successful.

Question 23

What does competitive advantage depend on?

Answer 23

1. IT Agility (the ability to respond quickly)
2. Responsiveness (IT capacity can be easily scaled up or down as needed)
3. Flexibility (the ability to quickly integrate new business functions or to easily reconfigure software applications)

~ All are tightly interrelated and fully dependant in an organisation’s IT infrastructure and architecture~

Question 24

IT Consumerization ?

Answer 24

• the migration of consumer technology into enterprise IT environments
• caused by personally owned IT becoming a capable and cost-effective solution for expensive enterprise equivalents

Question 25

Strategic Planning?

Answer 25

A series of processes in which an organisation selects and arranges its businesses or service to keep the organisation healthy or able to function even when unexpected events disrupt or or more of its businesses, markets, products or services

Question 26

Strategy?

Answer 26

The plan for how a business will achieve its mission, goals and objectives.

Question 27

The process of strategy formulation:

Answer 27

Corporate profitability = industry structure and competitive advantage

Question 28

Industry structure?

Answer 28

Determines the range of profitability of the average competitor and can be very difficult to change

Question 29

Competitive advantage?

Answer 29

An edge that enables a company to outperform its average competitor. Can be sustained only by continuously pursuing new ways to compete

Question 30

SWOT?

Answer 30

1. STRENGTH: Reliable processes; agility; motivated workforce
2. WEAKNESS: Lack of expertise; competitors with better IT infrastructure
3. OPPORTUNITIES: A developing market; ability to create a new market product.
4. THREATS: Price wars or other force reaction by competitors; obsolescence

Question 31

Porter’s competitive Forces Model

Answer 31

Rivalry (our company and competing companies)

• supplier power: bargaining power is suppliers and brands
• buyer power: bargaining power of buyers and distribution Channels
• threat of substitute products or services
• threat of new entrants

Question 32

Profit =

Answer 32

Profit = total revenue - total costs

Profit is increased by increasing total revenue and/or decreasing total costs. Profit is decreased when total revenues decrease and/or total costs increase

Question 33

Profit margin =

Answer 33

Profit Margin = selling price - cost of the item

Profit margin measures the amount of profit per unit of sales, and does not take into account all costs of doing business.

Question 34

Strategies for competitive advantage

Answer 34

• cost leadership
• Differentiation
• niche
• growth
• alliance
• innovation
• operational effectiveness
• customer orientation
• time
• entry barrier
• customer or supplier lock-in
• increase switching costs

Question 35

Primary activities? (1-5)

Answer 35

Business activities directly involved in the production of goods involving the purchase of materials, the processing of materials into products and the delivery of products to customers.

1. Inbound logistics
2. Operations
3. Outbound logistics
4. Marketing and sales
5. Services

Question 36

Support activities? (1-4)

Answer 36

Applies to any or all of the primary activities which may also support each other.

1. Infrastructure, accounting, finance and management.
2. Human resource management (HR)
3. Technology development, and research and development (RD).
4. Procurement or purchasing.