SGMA 217 Chapter 5

What are the three key concepts companies must consider when developing new technologies?

Complementary products, installed base, and network effects.

What are complementary products?

Products often sold separately but used in combination, creating demand for each other, such as video game consoles and video games.

What is the installed base?

The number of users of a particular technology or the number of units of a product that are currently in use.

What are network effects?

A phenomenon whereby a product gains more value as more people use it.

What is a management information system (MIS)?

A technology system that provides managers and employees with the information they need to perform their jobs as effectively as possible.

What are the three functions of an MIS?

To collect, process, and present data as information useful to solve problems or make decisions.

What is artificial intelligence (AI)?

Technology that mimics human intelligence processes and helps to make advanced decisions.

What is cloud computing?

A network of remote servers hosted on the internet that store, manage, and process data, rather than a local server or a personal computer.

What is green IT?

The practice of creating and using environmentally sustainable computing.

What is online-only retailing?

A fully online business model where the company was conceived from the outset to sell online.

What is click-and-mortar retailing?

A partially online business model used by traditional brick-and-mortar retailers to sell online as a secondary channel.

What is business-to-business (B2B) procurement?

An online model used by companies to move their supply chain ordering and tracking processes online.

What is the advertising-based revenue model?

A model where content or functionality is offered to users for free and the company sells advertising to generate revenue.

What is a fee-based content site?

A revenue model where users are charged a fee for access to news, research, entertainment, or other types of content.

What is the freemium model?

A revenue model where a certain amount of content is offered for free, but access to premium content requires a subscription.

What is a fee-based platform?

A revenue model where companies offer users functionality or connectivity in exchange for a fee.

What is search engine optimization (SEO)?

An approach used to improve search engine ranking by optimizing website structure, use of keywords, number of links from other sites, and other techniques.

What is pay-per-click (PPC)?

A method of online advertising where advertisers pay only when a consumer clicks on an ad.

What is content marketing?

An online marketing technique that uses blogs, videos, infographics, and other content to attract and engage customers.

What is social media marketing?

An online marketing technique that involves interacting with customers on social networks such as Facebook, Twitter, Pinterest, and Google+.

What is lead generation?

An online marketing technique that often involves creating a landing page to incentivize customers to provide their email address or other contact information.

What are web analytics?

The collection and analysis of data related to a website or other online marketing activities.

What is crowdsourcing?

Using consumers to present their ideas about products.

What are the four common goals of online marketing?

Increasing site traffic, increasing engagement, generating leads, and increasing sales.

What is the role of online tools in stakeholder interaction?

To improve customer service, manage company reputation, and gather product and marketing insight.

What are three important considerations for adapting to increased mobile device use?

Optimize website design for mobile devices, ensure compatibility with mobile devices, and simplify payment options for mobile users.