Wk1:Chap1 - Doing Business In Digital Times Flashcards
What is Big Data?
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
What is Data Analytics?
The use of software and statistics to find meaningful insight I. The Data, or better understand the Data.
What is Data Visualisation?
Helps to understand Data at a glance by displaying data in summarised formats such as dashboards and maps.
Why is it important to develop digital business models? To:
- deliver an incredible customer experience
- turn a profit
- increase market share
- engage employees
How does Customer Experience (CX) measure up?
There is a strong relationship between the quality of a firm’s CX and brand loyalty, which I turn increases revenue.
Cloud computing
- Resource acquisition is “as needed” and without upfront investment.
- resources no longer dependant on buying that resource
Machine-to-Machine (M2M) Technology
- 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)
Data science
- 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.
Social-Mobile-Cloud (SoMoClo Model)
- 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”
Digital business.
A social, mobile and web-focused business
Business model
How a business makes money
Customer experience (CX)
About building the digital infrastructure that allows customers to do whatever they want to do, through whatever channel they choose to do it.
Cloud computing
A style of computing in which IT services are delivered on-demand and accessible via the internet
Business process
Series of steps by which an organisation coordinates and organised tasks to get work done
Processes?
Activities that convert inputs into outputs by doing work
Deliverables?
Outputs created through work toward a desired Benidorm or expected performance improvement
Performance?
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
Three basic components of a business process?
- Inputs (raw materials, data, knowledge, expertise)
- Activities (work that transforms input & acts on data and knowledge)
- Deliverables (products, services, plans, or actions)
Business process involves
- People
- Technology
- Information
Business Process Characteristics (how to prevent things from going wrong) processes may be:
- Formal processes or Standard Operating Procedures (SOP) : documented and have well-established steps
- Informal Processes: typically undocumented, undefined, or are knowledge-Intensive
Process Improvement: Business Process Reengineering (BPR)?
Continuous examination to determine whether they are still necessary or operating at peak efficiency by eliminating wastes steps
Business Process Management (BPM)?
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.
What does competitive advantage depend on?
- IT Agility (the ability to respond quickly)
- Responsiveness (IT capacity can be easily scaled up or down as needed)
- 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~
IT Consumerization ?
- 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
Strategic Planning?
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
Strategy?
The plan for how a business will achieve its mission, goals and objectives.
The process of strategy formulation:
Corporate profitability = industry structure and competitive advantage
Industry structure?
Determines the range of profitability of the average competitor and can be very difficult to change
Competitive advantage?
An edge that enables a company to outperform its average competitor. Can be sustained only by continuously pursuing new ways to compete
SWOT?
- STRENGTH: Reliable processes; agility; motivated workforce
- WEAKNESS: Lack of expertise; competitors with better IT infrastructure
- OPPORTUNITIES: A developing market; ability to create a new market product.
- THREATS: Price wars or other force reaction by competitors; obsolescence
Porter’s competitive Forces Model
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
Profit =
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
Profit margin =
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.
Strategies for competitive advantage
- cost leadership
- Differentiation
- niche
- growth
- alliance
- innovation
- operational effectiveness
- customer orientation
- time
- entry barrier
- customer or supplier lock-in
- increase switching costs
Primary activities? (1-5)
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.
- Inbound logistics
- Operations
- Outbound logistics
- Marketing and sales
- Services
Support activities? (1-4)
Applies to any or all of the primary activities which may also support each other.
- Infrastructure, accounting, finance and management.
- Human resource management (HR)
- Technology development, and research and development (RD).
- Procurement or purchasing.
