Rock MIS 301 Exam 1 Terms

Disruptive technology

Innovation that helps create a new market and value network that disrupts an existing market ex: iPhone for Kodak

Mental models

Designs of a business and technology that consumers think about when thinking of a brand; how we are aesthetically effected

Barrier to entry

obstacles that prevent a business from entering the market

Brand

The symbolic embodiment of all the information connected with a product or service.

Bundling

selling two products together

Business process

network of activities, roles, resources, repositories and data flow that interact to create a business function

Capital intensity

how much money it will take to start a new business

Channel conflict

a clash of goals and methods between distribution channel members

Commodity

a product of trade or service that is nearly identical and offered by many firms

Competitive advantage

ability to consistently outperform industry peers, must be valuable, rare, imperfectly imitable, unsustainable

Differentiation

different, sometimes more specialized goods

Distribution channels

the path through which products or services get to customers

Economies of scale

when costs can be spread across increasing units of production or in serving multiple customers. Businesses that have favorable economies of scale are sometimes referred to as being highly scalable.

Fast follower problems

exists when savvy rivals watch a pioneer's efforts, learn from their successes and missteps, then enter the market quickly with a comparable or superior product at a lower cost before the first mover can dominate

Imitation-resistant value chain

A way of doing business that competitors struggle to replicate and that frequently involves technology in a key enabling role

Information asymmetry

A decision situation where one party has more or better information than its counterparty.

Killer app

ex iTunes. a staple app

Network effects

Metcalfe's Law, or network externalities. When the value of a product or service increases as its number of users expands.

Operational effectiveness

Performing the same tasks better than rivals perform them.

Porter's Model of Industry Structure (5 Forces)

Also known as Industry and Competitive Analysis. A framework considering the interplay between (1) the intensity of rivalry among existing competitors, (2) the threat of new entrants, (3) the threat of substitute goods or services, (4) the bargaining power of buyers, and (5) the bargaining power of suppliers.

Porter's Model of Competitive Advantage

Resource-based view of competitive advantage

The strategic thinking approach suggesting that if a

firm is to maintain sustainable competitive advantage, it must control an exploitable resource, or set of resources, that have four critical characteristics. These resources must be (1) valuable, (2) rare, (3) imperfectly imitable, and (4) non-substitutable.

Scale advantages

Advantages related to size.

Search costs

cost to consumer to search for which company to use (ex. Google, Amazon, and eBay are staples for the service they provide)

Straddling

attempt to occupy more than one position while failing to match the benefits of a more efficient, singularly focused model

Strategic positioning

Performing different tasks than rivals, or the same tasks in a different way

Sustainable competitive advantage

Financial performance that consistently outperforms industry averages.

Switching costs

cost a consumer incurs when moving from one product to another

Value chain

The "set of activities through which a product or service is created and delivered to customers."

Viral marketing

Leveraging consumers to promote a

product or service

Bullwhip effect

variability in order size and timing increases at each stage up the supply chain (reduces profitability)

Contract manufacturing

outsourced manufacturing

Information System (IS)

an integrated solution that combines five components: hardware, software, data, procedures, and the people who interact with and are impacted by the system.

Just-in- time manufacturing

manufacturing just in time

Logistics

coordinating and enabling the flow of goods, people, information, and other resources

among locations

Margin (gross margin)

difference between revenue and cost before accounting for other certain cost ex: selling price of an item minus production costs

Operations

the organizational activities that are required to produce goods or services. Operations activities can involve the development, execution, control, maintenance, and improvement of an organization's service and manufacturing

procedures.

Personal digital assistants

handheld computing device meant largely for mobile use outside an office setting

Point-of- sale (POS) systems

ex cash register, and store check out systems. Transaction processing systems that capture consumer purchases and are critical for capturing sales data and are usually linked to inventory systems

Radio frequency identification (RFID) tags

small chip-based tags that wirelessly emit a unique identifying code for the item they are attached to

Return on Investment

the amount earned on an expenditure

Vertical integration

single firm owns several layers

Backward compatibility

ability to take advantage of complementary products developed for a prior generation of technology, refers to a hardware or software system that can successfully use interfaces and data from earlier versions of the system or with other systems ex: apple

Blue Ocean strategy

an approach where firms seek to create and compete in uncontested "blue ocean" market spaces, rather than competing in spaces and ways that have attracted many similar rivals, works best with strategic positioning

Complementary benefits

product of service that add value to the base products to provide complementary benefits ex: more games are available to be played on the Xbox compared to the Wii

Convergence

when two or more markets, once considered distinctly separate, begin to offer similar features and capabilities ex: markets for cameras and smart phones are converging

Congestion effects

when network effects attract too many users at a service can be so overwhelmed that it becomes unusable, when increasing number of users lowers the value of a product or service

Monopoly

a market where there are many buyers but only one dominant seller

Network effects

value = users^2

Oligopoly

a market dominated by a small number of sellers

One-sided market

derives most of value from single class of users (AIM), network effects derived from IM users attracting more IM users as being same-sided exchange benefits

Platform

products and services that allow for the development and integration of software products and other complementary goods, computer system that allows application programs to run on your computer

Staying power

the long term viability of a product or service

Switching costs

the cost a consumer incurs when moving from one product or service to another

Total cost of ownership (TCO)

an economic measure of the full cost of owning a product, includes direct cost ex: purchase price and indirect cost ex: training, support, maintenance

Two-sided market

network markets comprised of two distinct categories of participant, both of which that are needed to deliver value for the network to work ex: video game console owners and developers of videos games

-when an increase in the number of users on one side of the market create a rise in the other side that's called a cross side exchange benefit

Capital expense budget

identifies the amount of cash a company will invest in long-term assets

Cloud computing

massive collections of computers running software that allows them to operate as a unified service also enable new service based computing models

E-waste

electronic waste (2007: 2.5 tons), 80%

recycled is exported

Flash memory

non volatile and solid state memory chip based storage, "flash RAM", flash memory is slower than conventional RAM, but holds its charge even when the computer goes out

Grid computing

uses special software to enable several computers to work together on a common problem as if they were a massive supercomputer

Magnetic storage

maintains contents without power and serve as storage devices, non volatile memory storage of data on a magnetized medium, uses different patterns of magnetization in magnetizeable material to store data

Microprocessor

the brain of the computing device, the part of the computer that executes the instructions of a computer program

Moore's Law

chip performance per dollar doubles every 18 months, only applies to processors and chip based storage, incentives firms to sell tech because it will decrease in value after 18 months

Nonvolatile memory

storage that retains data even when powered down ex: flash memory. Hard disks, DVD storage

Optical fiber line

high-speed glass or plastic lined networking cable used in telecommunication, with an equipment change at the end of the cable, the amount of data that can be squirted over an optical fiber line can double every nine months

Optical storage

maintains contents without power and serve as a storage device non volatile

Price elasticity

the rate at which the demand for a product or service fluctuates with price change ex: tech products are highly price elastic meaning consumers buy more products as they become cheaper

Random access memory (RAM)

holds data and software you are currently running, needs power to be able to store data, volatile- all content lost when powered off, temporary storage that provides fast access for executing computer programs and files- moves from your hard drive to those RAM chips, where it can be more quickly executed by the processor

Semiconductor

a substance such as silicon dioxide used inside most computer chips that is capable of enabling as well as inhibiting the flow of electricity, semiconductors = computer chips

Server farm

big data

Software as a service (SaaS)

a form of cloud computing where a firm subscribes to a third party software and receives a service that is delivered online, means renting software or using software that's offered online ex: Spotify

Solid state electronics

semiconductors based devices, solid state components often suffer fewer failures and require less energy parts ex: RAM, flash memory, microprocessors, not hard drives

Supercomputers

computers that are among the fastest of any in the world at the time of their introduction, most famous by IBM Jeopardy, playing Watson

Volatile memory

storage that is wiped clean when the power is cut off from the device ex: RAM

Application programming interfaces (APIs)

programming hooks or guidelines published by firms that tell other programmers how to get a service to perform a task such as send or receive data ex: amazon.com provides API to let developers write their own applications and websites that can send the firm orders

Business intelligence systems

a category of enterprise software which uses data created by others systems to provide reporting and analysis for organizational decision making, term combining aspects of reporting, data exploration and ad hoc queries and sophisticated data modeling and analysis

Client (as in Client/Server architecture)

client server refers to two pieces of software, a client that makes a request and a server that receives and attempt to fulfill that request

Compliance

ensuring that an organization system operate within required legal constraints and industry and organizational obligations

Computer hardware

the physical components of information technology which can include the computer itself plus peripherals such as storage devices, input devices, output devices like monitors

Customer relationship management (CRM)

a category of enterprise software where systems are used to suppose customer related sales and marketing activities

Data

information of a company, raw facts and figures

Database

software used for creating, maintaining and manipulating data, used to efficiently store and manage large amount of data, drive many familiar functions

Database administrator

job title focused on directing, performing, or overseeing activities associated with a database or set of databases

Desktop software

applications installed on a personal computer, typically supporting tasks performed by a single user ex: word

Distributed computing

a form of computing where systems in different locations communicate and collaborate to complete a task, can yield enormous efficiencies in speed, error reductions, and cost saving and can

create entirely new ways of doing business

Embedded systems

special purpose software designed and included inside physical products, help make devices "smarter," sharing usage information, helping diagnose problems, indicating maintenance schedules, providing alerts or enabling devices to take orders from other systems, often stored as

firmware too

Enterprise data interchange (EDI)

a communication standard allowing business partners to exchange documents electronically, improves flow of data between partners and inside the organization, improves forecasting and order process pay cycle time

Enterprise resource planning (ERP)

a software package that integrates the many functions (accounting, finance, inventory management, HR) of a business

Enterprise software

applications that address the needs of multiple users throughout an organization or work group

Extensible markup language (XML)

instructs systems as to how information should be

interpreted and used

Information

data in words, data presented in a context so that it can answer a question or support decision making

Inherent process

how a software was made to work using mental models ex: Facebook has an inherent process to request a friend or how we upload a paper on blackboard

Knowledge

valuable information from the human mind; includes reflection, synthesis, context

Operating system (OS)

the software that controls the computer hardware and establishes standards for developing and executing applications

Programming language

provides the standards, syntax, statements, and instructions for writing computer software

Server

a program that fulfills the request of a client

Service-oriented architecture

focuses on the development, use, and reuse of small self-contained blocks of code to meet all the application software needs of an organization

Software

a computer program or collection of programs that contains a precise set of instructions that tells hardware what to do

Software package

a software product offered commercially by a third party ex: ERPs integrate the many functions of a business

Supply chain management

systems that can help a firm manage aspects of its value chain, from the flow of raw materials into the firm, through delivery of finished products and services at the point of consumption