INFORMATION GOODS INFORMATION GOODS INTELLECTUAL PROPERTY INTELLECTUAL PROPERTY What is a Digital Information Good What is a Digital Information Good A digital information good is a collection of symbols Its utility depends on the arrangement of the symbols not on the material form that they take Examples Information and Entertainment Products Symbols Tokens and Concepts Processes and Services Properties of Information Goods Properties of Information Goods Information goods are Infinitely replicable Easily distributed Experience goods Uniqueness greater variation in valuations Most information digital goods industries are near monopolies Why High fixed costs virtually zero marginal costs Often time dependent Indestructible durable Value may accumulate over time Transmutability mix and match Non rival non excludable similar to public goods Copyright Rights Copyright Rights Automatic does not require formal filing Grants rights for lifetime 70years author 95 years company Reproduction transcribe imitate in fixed form Distribution of copies sale rent lease or lend Public performance display Preparation of derivative works Translations dramatizations fictionalizations motion picture versions multimedia products condensations abridgements and other forms in which the work may be recast transformed or adapted Authorization of others to do any of the above Copyright Copyright Works that cannot be copyrighted Works not fixed on a sufficiently permanent medium Works not original minimum degree of originality Facts e g names addresses in a tel book Works in the public domain copyright expired Works created by the US government laws and legislations Copyright Fair Use Copyright Fair Use Under the First Amendment use of copyrighted material is permitted without the author s consent under certain circumstances Guidelines for determining what is fair use Purpose and character of use Commercial vs non profit Nature of the copyrighted work factual vs artistic unpublished vs published Amount and substantiality of the portion of work used Effect on value of work effect on market for the work IT AND STRATEGY IT AND STRATEGY What is Strategy What is Strategy Strategy is a set of decisions made to achieve competitive advantage based on an assessment of strengths weaknesses competitive position options alternatives risks involved timing Competitive Advantage Ability of a firm to earn supranormal above normal economic profits 2 Price Discrimination 2 Price Discrimination Third degree Price each group of customers differently based on observed characteristics Examples student discounts discounts to WWW users Second degree most complex one Offer different price product bundles that are attractive to the right customers but not others Examples discount based on quantity different version of products First degree charge them that price Examples Figure out each person s willingness to pay and Intro to Strategy and the Internet Intro to Strategy and the Internet Porter argues companies made poor choices that eroded the attractiveness of their industries and undermined competitive advantages Shift away from competition based on quality features and service toward price Difficult to earn a profit Rushed partnerships forfeited proprietary advantages Porter 1980 The Five Forces Porter 1980 The Five Forces Porter s Five Forces Model determines the relative attractiveness of an industry Value Creation Value Creation Once an organization chooses its strategy it can use tools such as the value chain to determine the success or failure of its chosen strategy Value chain connected series of activities each of which adds value or supports the addition of value to the firm s goods and services1 Every action an organization takes is either a primary activity or support activity A transaction is an exchange of goods or services value between two or more parties 1Porter M E How competitive forces shape strategy Harvard Business Review 1979 pp 137 145 IT Support for the Value Chain IT Support for the Value Chain Through the intelligent use of IT a business can increase its competitive advantage P r i m a r y S u p p o r t SOFTWARE SOFTWARE DEVELOPMENT SDLC DEVELOPMENT SDLC Development Alternatives Development Alternatives Build the Application Purchase Prewritten Application Pre packaged or Software as a Service May include some customization Contract Out Development Outsourcing Systems Development Life Cycle Systems Development Life Cycle Planning Analysis Requirements Determination Design Development Testing Implementation Maintenance Note Essentially intended to be a linear process Software Problems Are Business Software Problems Are Business Problems Problems Find errors early the later in the SDLC an error is found the more expensive it is to fix Software Development Software Development Methodologies Methodologies There are a number of different software development methodologies including Waterfall Rapid application development RAD Extreme programming Design methodology should follow project requirements Mission critical Waterfall General application development RAD spiral User centered development XP PROJECT MANAGEMENT PROJECT MANAGEMENT Managing the IS Project Managing the IS Project Project a temporary sequence of unique complex and connected activities having one goal purpose that must be completed by a specific time within budget according to spec Project Management the application of knowledge skills tools and techniques to project activities to meet project requirements 1 1A Guide to the Project Management Body of Knowledge PMBOK Guide 2000 Edition Chapter 1 p 4 2000 Causes of Project Failure Causes of Project Failure Poor expectations Poor estimating management Shortcuts Premature commitment to fixed budget schedule Upper management commitment lacking Failure to adapt to change techniques Overoptimism Mythical man month Inadequate people management skills Insufficient resources Failure to manage to the plan Project Management Tools Project Management Tools Project management PM software is designed to support and automate the tasks of project management and to help project managers make decisions Gantt Chart Communicates schedule PERT Chart Interdependencies relationships PMI Certification Gantt Chart communicates schedule PERT Chart interdependencies relationships DATABASE DATABASE FUNDAMENTALS FUNDAMENTALS Unraveling a Database Entity A person place thing or event about which data and information are
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