1 Comp Adv over other firms higher usage sales IR AC IS increase revenue avoid costs improve service 2 Five Forces defines industry structure how a business competes threat of new entrants threat of substitutes power of suppliers power of buyers rivalry among existing competitors industry structure drives competition profitability and shapes five forces model Sust Comp Adv financial performance outstands industry consistently Fast Follower Problem savvy competitor watches fixes mistakes enters market Resource based view of competitive advantage to obtain comp adv own resource valuable rare imperfectly imitable nonsubstitutable Imitation resistant value chain competitors struggle to imitate usually involves technology of some sort 3 Value Chain views an organization as a series of processes each of which adds value to the product or service for each customer primary vs support direct vs indirect product impact first mover adv firm can impact market share by being first to market with a competitive advantage 4 Information Goods collection of symbols also known as a digital good utility is a function of the arrangement of the symbols NOT on the material form they take 7 Properties 1 High fixed costs sunk almost 0 marginal cost 2 Infinitely replicable 3 Easy to distribute 4 experience goods 5 Often time dependant 6 Indestructibility 7 Public goods non rival non excludable markets for info goods usually near monopoly 5 Content vs Conduit content is the creative stuff while conduit it the code layer the control between content and delivery TODAY no control of code conduit because anyone can publish anything on web 2 0 Content Code Physical Speakers C Free Free Free Telephone Free Controlled Controlled Cable TV Controlled Controlled Controlled 6 Network Effects Metcalf s Law the value of a network increases with the square of the number of users N 2 Externality the behavior of an individual affects the utility of another smoking pollution Standards the more people agree to build something using a common standard the more likely the item will benefit from network effects the owner of the standard usually obtains the most benefit Positive Feedback increasing returns often lead to expanding the network more tight better than loose 7 Pricing Strategy Price Discrimination must have some monopoly power two customer classes product cannot be resold 1st Degree perfect Each consumer pays the maximum he or she is willing to pay Traditionally seller negotiates with each buyer 2nd Degree quantity discounts 3rd Degree market split into 2 or more segments seniors students etc Versioning Multiple versions multiple prices Self selection of version no need for active customer data based pricing airline seats Bundling pure only A and B sold together mixed A and B cheaper together than if bought individually 8 Web 2 0 interactivity info sharing Web 1 0 transaction based one way Social Media Blogs trackbacks to earlier posts blog roll fav blogs blogosphere those who read write on a blog Wikis site that can be modified by anyone Wikipedia what you see is what you get principle roll back to previous edit Crowdsourcing team solves issue together Wisdom of Crowds more insight than single professional Prediction Market polling diverse crowd and aggregating opinions to form forecast of eventual outcome RSS really simple syndication or rich site summary method for sending users data can subscribe to RSS feed Mash Up combo of two technologies or data feeds into single intergrated tool Location based services use GPS cell phone Virtual Worlds avatars represent people Corporate World Social Media Offense SMART social media response team Three Rs representation responsibility respect Embassy Approach establish online presence at various services with a consistent name Defense Online Reputation Management tracking and responding to online mentions of a product organization or individual important to monitor and mediate 9 Effectiveness Metric doing the right things achieve goals Efficiency Metric doing things right optimize process KPI key performance indicator Benchmarking continuously measuring results comparing to goals finding a benchmark is hard measuring hard too how do u measure customer satisfaction Transactional Info encompasses all of the information contained within a single business process or unit of work and its primary purpose is to support the performing of daily operational tasks like a typical order entry system Analytical Info encompasses all organizational information and its primary purpose is to support the performing of managerial analysis tasks BPR business process reengineering analysis and redesign of workflow within between enterprises usually have As Is and To Be purpose is to make all business practices best in market 10 Software for Business hardware is all physical components of technology computer drive and software is programs telling hardware what to do Operating System software that controls the computer hardware and establishes standards for developing and executing applications Firmware software stored on nonvolatile memory chips as opposed to being stored on devices such as hard drives or removable discs Embedded Systems special purpose software designed and included inside physical products often on firmware Applications desktop applications enterprise software utilities and other programs that perform specific tasks for user and organizations Desktop Apps installed on a personal computer typically supporting tasks performed by a single user Word Enterprise Apps address the needs of multiple users throughout an organization or work group Gmail Distributed Computing a form of computing architecture where systems in different locations communicate and collaborate to complete a task speed cost savings error reduction Electronic Data Interchange EDI set of standards for exchanging information between computer applications Extensible Markup Language XML tagging language that can be used to identify data fields made available for use by other applications Why do tech projects fail lack of communication unclear project unmanaged risks poor leadership inaccurate need estimates 11 Software in Flux Open Source Software free anyone can look at and potentially modify the code cost savings but sometimes higher cost of ownership Commercial Products paid for Microsoft Office if software popular people will stay with it to avoid switching costs 12 Cloud Computing a Cloud Computing i Private vs
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