Information Goods Intellectual Property Rights An Information Digital good is a collection of symbols whose utility depends on the arrangement of the symbols not on the material form that they have Types of information goods o Information and Entertainment Products News papers Magazines Journals Books o Symbols Tokens Concepts tickets reservations financial instruments o Processes and Servers tax forms phone calls remote education Properties of Information Goods o Infinitely Replicable o Easy to distribute o experience goods previewing browsing reviews reputation o Uniqueness greater variation in valuation o Most industries are near monopoly high fixed costs virtually no marginal costs o Time dependent weather news stocks o INdestructability quality does not deteriorate o Transmutability changing form o Value may accumulate over time Intellectual Property is creations of the mind inventions literary artistic works symbols names images used in commerce Copyrights grants rights for lifetime 70 years author and 95 years company automatically without and systematic form filling Under first amendment use of copyrighted material is permitted without the authors consent under fair use Allows for making copy for personal use reselling renting only items legally purchased by the user Licenses contracts that limit the transfer of rights Infringement unauthorized reproduction transmission of copyrighted goods IT and Strategy Competitive Advantage is the ability of a firm to earn supranormal economic profits revenue in excess of user costs Measured by accounting profits stock price IT enables competitive advantage 1 Be different find market niche product differentiation 2 Price discrimination charge as close as possible to willingness to pay of each customer Forms of Price Discrimination o Third Degree price each group of customers differently based on observed characteristic student discounts internet user discounts o Second Degree offer different price product bundles that are attractive to the right customers but not others o First Degree figure out each person s willingness to pay and charge them Porter s Five Forces Model Industry Structure and the profitability of the average competitor are shaped by five forces that price 3 Lowering Cost Intensity of Intra Industry Competition 1 2 Barriers to entry 3 Bargaining power of suppliers 4 Bargaining power of buyers 5 Threat of substitute products services Buyer Power high when buyers have many choices of whom to buy from Supplier Power high when buyers have few choices of whom to buy from Threat of Substitutes high when there are many alternatives to a product or service Rivalry amongst competitors high when competition is fierce in a market Threat of new entrants high when it s easy for new competitors to enter the market Value Chain connected series of activities each of which adds value or supports the addition of value to the firms goods and services Primary Activities related to the production and distribution of the organizations products services Support Activities support the creation of business value Project a temporary sequence of unique complex and connected activites having one goal purpose that must be completed by a specific time within budget and according to specifications Project Management 29 of all projects succeed 53 are challenged 18 have failed Causes of Project Failure Poor executions management Shortcuts Premature commitment to fixed budget schedule Upper management commitment lacking Failure to adapt to change Poor estimating techniques Over optimism Mythical man month Inadequate people management skills Insufficient resources Failure to manage the plan Project Management Tasks 1 Project Scope Management identifying and managing all required tasks 2 Time Management developing acceptable schedule and ensuring timely completion 3 Cost Management preparing a budget and maintaining costs 4 Quality Management ensuring the finished project satisfies its defined goals Project Management Tools Project Management 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 Project Management Institute Systems Development Life Cycle SDLC 1 Planning a Operational feasibility b Financial and economic feasibility c Technical feasibility 2 Analysis Requirements determination a What is required b Technology and business process requirements 3 Systems design a Detailed design inputs outputs storage b Goal system specification blueprint 4 Development a Develop IT infrastructure database and programs b Programming c Acquisition of software and services 5 Testing a Write test conditions perform the system testing b User feedback c Bug fixes d Problems and opportunities 6 Implementation a User documentation b Provide training to users c User acceptance 7 Maintenance a Corrections additions and upgrades to ensure system meets goals Software Development Methodologies Waterfall sequential activity based process in which each phase in the SDLC is performed sequentially Rapid Application Development RAD emphasizes extensive user involvement in the rapid and evolutionary construction of working prototypes of a system to accelerate the systems development process Extreme Programming XP breaks a project into tiny phases and developers cannot continue on to the next phase until the first phase is complete Development Alternatives Build the Application Purchase re written application pre packaged or software as is servce may require some customization Contract out development outsourcing Database Fundamentals Entity person place thing or event about which data and information are collected customer order item distribution Relation a table in database that represents an entity Relational DBMS relates data in different tables through the use of a common data element E R Diagram visual representation and communication tool composed of entries and relationships Entities STUDENT RESIDENCE HALL COURSE Relationships STUDENT LIVES IN RESIDENCE HALL STUDENT TAKES COURSE Reading Left to Right Student lives in only 1 residence hall students take many courses Reading Right to Left Residence halls can have many students who live there courses can be taken by many students Primary Key an attribute or group of attributes that uniquely identifies a row record in relation Foreign Key non key attribute in one
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