Chapter Thirteen - Creating Innovative Organizations

Flashcards covering key concepts from the chapter on business-driven technology, focusing on disruptive vs. sustaining technologies, ebusiness, and the impact of the Internet.

Disruptive Technology

A new way of doing things that initially does not meet the needs of existing customers.

Sustaining Technology

Produces an improved product that customers are eager to buy.

Digital Darwinism

The idea that organizations failing to adapt to changes in the information age are doomed to extinction.

Innovator’s Dilemma

Established companies can take advantage of disruptive technologies without hindering existing relationships with customers, partners, and stakeholders​

Balance innovation and productivity (Eventually we have to stop --> It is a cost (losing productivity)​

How did the internet start?

The internet began as a military project in the late 1960s as an emergency military communciations system

It evolved to connect academic and research institutions, eventually expanding to the public in the 1990s.

Internet

A global network connecting computers, enabling communication worldwide.

What is the impact of the internet on organizations?

Companies must continuously adapt to changing markets, economic conditions, and technologies to survive.

By focusing on unexpected changes, businesses can leverage disruptive technologies for growth.

What does WWW stand for?

World Wide Web - Provides access to Internetinformation through documents including text, graphics,audio, and video files that use a special formattinglanguage called HTML – hypertext markup language

Web browser

Allows users to access the WWW​

What does HTTP stand for?

Hypertext Transport Protocol  (HTTP)– The (language)Internet protocol Web browsers use to request anddisplay Web pages using URL – universal resource locator

What were the reasons for the growth of the World Wide Web? 

BUSINESS DISRUPTORS​

• Microcomputer revolution​

• Advancements in networking​

• Easy browser software​

• Speed, convenience, and low cost of email​

• Web pages easy to create and flexible

What was Web 1.0?

A term to refer to the WWW during its firstfew years of operation between 1991 and 2003​.

• Ecommerce – Buying and selling of goods andservices over the Internet​

• Ebusiness – Includes ecommerce along with allactivities related to internal and external businessoperations (services, billing, questions, etc.)​

THE CATALYST FOR EBUSINESS​

• Travel – Travel Agent vs. Expedia​

• Entertainment – Movie vs. Netflix​

• Electronics – Landline vs. Cellphone​

• Financial services – Bank vs. Banking Online​

• Retail – Brick and Mortar vs. Amazon​

• Automobiles – Manual vs. Self-Driving Cars​

• Education and training – ILC vs. VILC​

Ebusiness

Includes ecommerce along with all activities related to internal and external business operations (services, billing, questions, etc.)

What are the advantages of eBusiness?

Expand global reach, open new markets, reduce costs, improve operations, and imprve effectiveness

What is the downside of eBusiness?

More competition (not restricted to geography anymore)

What is the impact of the internet on information?

• Information is easy to compile ​

• Increased richness ​

• Increased reach ​

• Improved content ​

Ecommerce

Buying and selling of goods and services over the Internet.

Mass Customization

The ability of an organization to tailor its products or services to the customers’ specifications.

Personalization

Occurs when a company knows enough about a customer’s likes and dislikes to tailor offers accordingly.

What is the long tail on a sales curve?

The Long Tail refers to the part of a sales distribution curve where popularity drops, but products continue to sell in smaller quantities over time.

The “head” of the curve represents a few popular products with high sales, while the “tail” represents many niche products that individually sell less but collectively can generate significant revenue.

This concept is important for businesses because it shows how offering a wide range of products—even those with low demand—can reduce costs and increase profitability when supported by digital platforms and efficient distribution

How does technology reduce costs when it comes to intermediaries?

Technology enables businesses to rethink traditional distribution channels, often reducing costs by eliminating or transforming intermediaries.

Disintermediation

The process where intermediaries are removed from a supply chain.

Reintermediation

Adding new intermediaries, often digital platforms, to create value in the transaction process.

Cybermediation

Using online intermediaries (like e-marketplaces or comparison sites) to facilitate transactions.

Clickstream Data

Data that tracks the exact pattern of a consumer’s navigation through a website.

Clickstream data can reveal​

• Number of page views​

• Pattern of websites visited​

• Length of stay on a website​

• Date and time visited​

• Number of customers with shopping carts​

• Number of abandoned shopping carts​

Viral Marketing

A technique that encourages users to pass on a marketing message to others.

How do you generate revenue on the internet?

• Banner ad - Box running across a web page that containsadvertisements​

• Pop-up ad - A small web page containing an advertisement ​

• Associate program (affiliate program) - Businesses generate commissions or royalties ​

• Viral marketing - A technique that induces websites orusers to pass on a marketing message ​

What are website metrics?

• Visitor metrics​

• Exposure metrics​

• Visit metrics​

• Hit metrics