Integration and Review Why studying IT is important Pace of technological change is fast and getting faster Computing technology is increasingly powerful and prevalent This poses many challenges and opportunities for organizations Organizations IT spending continues to increase Businesses need to make good decisions about IT in order to survive and thrive Information Goods Many goods have some value added by IT now Information Goods o Experience goods o Unique o Variable valuations o With digitization Information Goods take on new characteristics Infinitely replicable Easy to distribute High fixed costs low marginal costs Intellectual Property Protection The characteristics of IP Info Goods make them similar to public goods Nonrival Nonexcludable hard to prevent people from using it This leads to need for special treatment different from physical property rights protection Copyright 75 95 year time limit Creative works art books play movie Automatic Fair use Patent 20 years time limit For inventions useful nonobvious Must be approved Exclusive rights Time limited because new innovation builds on old Need to balance protection with access Alternatives to relying on IP regulation Technical solutions DRM digital rights management Subsidize creation of IP Alternate Business Models o Make the product cheaper and easier to buy o Look for alternate revenue streams advertising o Offer extreme customization o Reconceptualize the basic product as a service o Give away the product To define a good business model you need to understand your strategy Strategy Goal Create sustainable competitive advantage by doing things in a unique way in the industry Generic Strategies Cost Leader Differentiation o Horizontal o Vertical Value Chain Virtual Value Chain Tool for analyzing how activities fit together to add value and accomplish strategy Role of IT gathering organizing selecting synthesizing distributing info Visibility Mirroring New Customer Relationships Porter s Five Forces Model determines the relative attractiveness of an industry Netflix Case Know the basic facts Key ideas o Collaborative filtering leverage data on all customers to provide customized recommendations o Crowdsourcing take a problem and let anyone solve it o Long Tail o Competitive advantage building rare valuable inimitable non substitutable resources Brand Scale cinematch Strategic Analysis o Netflix sources of competitive advantage o 5 forces Change keep running but not too fast Data Management Modeling ER diagrams o Cardinality Primary and foreign keys Normalization Database operations Features of MS Access o E g Relationships tables queries forms reports Why information quality is important and how each of the points below relates to information quality Components and terminology o Entity attribute table etc
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