ISDS 3100 Exam 2, Chapters 4-6: Gabe Piccoli

Platform

set of stable components that support variety and evolvability in a system by constraining the linages among other components

Platform Resources

assets or capabilities that the platform makes available via a software interface

Digital Marketplaces

communities of buyers and sellers who exchange product information, coordinate, and transact using digital technologies

Example of a digital marketplace

Expedia

Example of a platform and the platform being used as a resource

Windows being used by Netflix, and excel

Value in Scarcity

the value of a good is a function of its limited availability

Value in plentitude

the value of a network is a function of the number of connected nodes

Positive feedback

self-reinforcing mechanism by which the strong get stronger and the weak get weaker

negative feedback

the strong get weaker

the weaker get stronger

Network

a collection of interconnected nodes

Network effects

The process by which a network becomes more valuable as its size increases--that is, when a new node, while pursuing his or her own economic motives, joins the network, the network is more valuable for all the other members.

Tippy Market

Market that is subject to strong positive feedback

- Winner take all market

Tipping Point

the time when one organization or technology tips toward market dominance

Survival kit for firms in decline

- become compatible with the dominant player

- find a niche that is different and big enough

Two-Sided Network examples

- users of content and suppliers of content (adobe PDF format)

- Buyers and suppliers of goods (Digital marketplace)

How do gauge the value of a two sided network

value of the network to one type of member depends on the number of members from the other side

Network properties

Network Effect Strength

Network Clustering

Disintermediation Risk

Multihoming Potential

Data

codified raw facts

Information

Data in context for an audience to understand

Classic Information Goods

products purchased for the sole purpose of gaining access to embedded information.

• Products that can be digitized

8 Characteristics of Classic information Goods

- high production costs

- negligible replication costs

- not the carrier

- negligible distribution costs

- sunk costs

- no natural capacity limits

- not consumed by use

- experience goods

What are products and services typically?

information intensive goods

What critical role does information have as a product or service?

- creating the product/service

- bringing it to market

Process virtualizability

process performed without participants (objects) physical interaction

what requirements does the virtualizability process depend on?

- sensory

- relationship

- synchronism

- identification and control

Sensory requirements

need to experience a range of sensory stimuli

Representation

the capability of IT to effectively simulate actors and interactions

Reach

the capability of IT to overcome both time and space constraints

Monitoring and identification

is the capability of IT to authenticate process participants and objects and track their activity

IT enablers

- Representation

- Reach

- Monitoring and identification

digital disruption

the change that occurs when new digital technologies and business models affect the value proposition of existing goods and services

disruptive innovation

a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors

Critical Success Factors (CSFs)

crucial steps companies perform to achieve their goals and objectives and implement their strategies

Information systems assessment

The process of taking stock of the firm's current information systems resources and evaluating how well they are fulfilling the needs of the organization.

Information system guidelines

A set of statements, or maxims, specifying how the firm should use its technical and organizational information systems resources.

Information systems vision

a broad statement of how the organization should use and manage its information systems for strategic purposes

Strategic Impact Grid

An analytical framework that helps in defining the role of information systems in a specific company by analyzing two dimensions: the current need for reliable information systems and the future need for new information system functionalities.

Strategic initiative

A long-term (three-to five-year) proposal that identifies new systems and new projects, or new directions for the IS organization.

Strategic plan

an organization's mission and future direction, performance targets, and strategy.

- Prerequisite to information systems planning