IS

long tail

long tail

Large selection of content beneficial for Internet retailers

#Scale economies

attained by leveraging the cost of an investment across increasing units of production

#bigger customer base =

better cost structure, better profit prospects, better pricing

#collaborative filtering

A classification of software that monitors trends among customers and uses this data to personalize an individual customer's experience.

#churn rate

the rate at which customers leave a product or service

#Cinematch data advantages

(used by Netflix) -tailor recommendations based on availability of products and individuals taste -studios found an audience for their back catalog of movies

#atoms to bits

the shift from physical products to digital products

#fixed costs

Costs that do not vary according to production volume.

#marginal costs

costs associated with each individual unit produced

#coopetition

situation where firms may both cooperate and compete with one another

#First Sale Doctrine

Ruling that states that a firm can distribute physical copies of legally acquired copyright-protected products

#Windowing

Content is available to a given distribution channel for a specified time window

#decision fatigue

A phenomenon, akin to congestion effects for attention, where consumers avoid selection decisions with an overwhelming number of choices.

#user data

-make accurate recommendations -improve user interface design -help the firm determine the appropriate cost for acquiring content -shape creative decisions in original program offerings -make better content investments

#Disintermediation

Removing an organization from a firm's distribution channel. ______ collapses the path between supplier and customer.

#channel conflict

Exists when a firm's potential partners see that firm as a threat.

#APIs

programming hooks, or guidelines, published by firms that tell other programs how to get a service to perform a task such as send or receive data

#colocation facilities

Sometimes called a "colo," or carrier hotel; provides a place where the gear from multiple firms can come together and where the peering of Internet traffic can take place. Equipment connecting in colos could be high-speed lines from ISPs, telecom lines from large private data centers, or even servers hosted in a colo to be closer to high-speed Internet connections.

#Bandwith Caps

limitations imposed by the ISP on the total amount of data traffic that a single subscriber can consume.

#network effects (Metcalfe's Law)

When the value of a product or service increases as its number of users expands

#platforms

Products and services that allow for the development and integration of software products and other complementary goods, effectively creating an ecosystem of value-added offerings

#Exchange

first source of network effects, network is more valuable the more users can communicate on it

#power

second source of network effects, networks with more number of users suggest a stronger staying power

#staying power

The long-term viability of a product or service.

#switching costs

incurred when moving from one product to another, related to staying power, strengthen the value of network effects as a strategic asset

#Total Cost of Ownership (TCO)

Economic measure of the full cost of owning a product

#complementary Benefits

third source of network effects, it is products or services that add additional value to the primary product or service that makes up a network

#Customer Acquisition Costs

The amount of money a firm spends to convince a customer to buy (or in the case of free products, try or use) a product or service.

#one-sided market

market that derives most of its value from a single class of users (messaging)

#same-sided exchange benefits

benefits derived by interaction among members of a single class of participant

#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 (e.g., video game console owners and developers of video games).

#cross-side exchange benefit

An increase in the number of users on one side of the market, creating a rise in the other side.

#Monopoly

A market in which there are many buyers but only one seller.

#Oligopoly

a market dominated by a small number of powerful sellers

#technological leapfrogging

Competing by offering a new technology that is so superior to existing offerings that the value overcomes the total resistance that older technologies might enjoy via exchange, switching cost, and complementary benefits.

#convergence

When two or more markets, once considered distinctly separate, begin to offer features and capabilities. As an example: the markets for mobile phones and media players are converging.

#Envelopment

When one market attempts to conquer a new market by making it a subset, component, or feature of its primary offering.

#backward compatibility

The ability to take advantage of complementary products developed for a prior generation of technology.

#Citizen suppliers

new generation where product owners become providers of rentals (airbnb...) and new class of micro-entrepreneurs providing personal services (Uber, Rover...)

#Collaboratively consumed

when firms buy inventory and rent it out, an individual takes possession of an item for a period of time and then returns it for use by other

#"Sharing economy" firms

-Goods: pre-owned (ebay), loaner products (zilok), custom products (Etsy) -Services: professional services (upwork), personal services (TaskRabbit), deliver (DoorDash) -Transportation: Uber, Zipcar -Places to stay: office space, places to stay -Money and finance: money lending, crowdfunding

#electronic markets

-early players gain scale, brand, and financial resources -technology allows peer-to-peer supply without need for inventory

#social proof

Positive influence created when someone finds out that others are doing something.

#sharing economy concerns

-safety issues (insurance) -uncertainty around the ability of firms to consider workers as indepedent contractors

#product-market fit

A key concept in entrepreneurship and new product development that conveys the degree to which a product satisfies market demand. Successful efforts should be desired by customers, and scale into large, profitable businesses.

#venture capitalists

Investor groups that provide funding in exchange for a stake in the firm and a degree of managerial control, earlier a firm accepts it the more controls investors can exert

#Zuckerberg rule

he maintains a majority of voting rights in the public company virtually guaranteeing his control over the firm

#social graph

The global mapping of users and organizations and how they are connected. Friending = link between nodes in the social graph

#network effects

When the value of a product or service increases as its number of users expands

#deep web

Internet content that can't be indexed by Google and other search engines. (Facebook)

#Graph Search

allows users to draw meaning from the site's social graph and to find answers from social connections. Facebook uses to evolve search beyond the keyword

#Facebook cloud

big group of connected servers that power the site, scattered across multiple facilities

#Open Source Software (OSS)

Software that is free and where anyone can look at and potentially modify the code.3

#advertising on social media challenges

content adjacency and user attention

#content adjacency

Concern that an advertisement will run near offensive material, embarrassing an advertiser and/or degrading their products or brands.

#Web 2.0

Internet services that foster collaboration and information sharing

#social media (new Web 2.0)

content that is created, shared and commented on by a broader community of users

#peer production

Collaboration between users to create content, products, and services

#collaborative consumption

Participants share access to products and services, rather than having ownership

#Major Social Media Tools

-Blogs: online publication that keeps a running chronology of entries, share ideas, feedback -Wikis: a website that anyone can edit directly from within the browser, collaborate on task -Social network: online community that allows users to establish a personal profile, discover and reinforce affiliations -Microblogging: short, asynchronous, messaging system, distribute time-sensitive information, share opinions... -Messaging services: communicate with individuals using short-format text -Q&A sites: knowledge sharing, discovery, learning

#Blogs

online journals where people and companies post their thoughts and other content, usually related to narrowly defined topics

#Trackbacks

links in a blog post that refer readers back to cited sources

#blog rolls

a list of a blogger's favorite blogs

#key features of blogs

-Immediate and unfiltered publication -Ease of use -Comment threads -Reverse chronology -Persistence -Searchability -Tags -Trackbacks

#owned media

Communication channels that an organization controls. These can include firm-run blogs, Web sites, apps, and organization accounts on social media such as Twitter, Facebook, Pinterest, YouTube, and Instagram.

#paid media

Refers to efforts where an organization pays to leverage a channel or promote a message. Paid media efforts include things such as advertisement and sponsorships.

#earned media

Promotions that are not paid for or owned but rather grow organically from customer efforts or other favorable publicity. Social media, word of mouth, and unsolicited positive press mentions are all examples of earned media.

#inbound marketing

refers to leveraging online channels to draw consumers to the firm with compelling content rather than conventional forms of promotion such as advertising, e-mail marketing, traditional mailings, and sales calls

#roll back

The ability to revert a wiki page to a prior version. This is useful for restoring earlier work in the event of a posting error, inaccuracy, or vandalism.

#Wikis

what you see is what you get, all changes are attributed, complete revision history, automatic notification and monitoring, all pages are searchable, pages can be classified under tagging scheme

#wikimasters

Individuals often employed by organizations to review community content in order to delete excessive posts, move commentary to the best location, and edit as necessary.

#griefers

Internet vandal and mischief maker; also sometimes referred to as a troll.

#social networks

Online community that allows users to establish a personal profile and communicate with others -detailed personal profiles -affiliations with groups, individuals, and products -private messaging and public discussions -media sharing -discovery-fueling feeds of recent activity Among members

#Sermo

social network for physicians, assist physicians gain peer opinion on confounding cases

#patients like me

offers social network empowering chronically ill patients across a wide variety of disease states

#microblogging (Twitter)

A form of blogging in which posts are limited to a small number of characters Twitter posts are limited to 280 characters via the Web, SMS, or a variety of third-party desktop and smartphone apps

#Hashtags

A method for organizing tweets where keywords are preceded by the # character.

#Twitter Advantages

-real time promotion -time-sensitive information -customer engagement and support -scheduling and yield management -promotion -intelligence gathering -idea sourcing -sales channel

#Organic Reach & Advertising

Facebook's algorithms have continually decreased the reach of fan page posts, meaning that firms are reaching fewer and fewer of their fans (although Facebook will gladly sell firms ad products to improve reach).

Twitter posts appear chronologically in the feed of any follower. This means that as long as followers have Twitter open, any organically shared content will scroll by—no gate keepers. ==Twitter offers mechanisms to promote tweets. Users don't have to be following a firm to see its "promoted" ad, which can be served whenever a user visits Twitter, and the service offers extensive targeting. ==Advertisers can promote tweets to any user based on: geography, language, keywords, interests, and device type, even matching e-mail addresses to those in their CRM (customer relationship management systems). ==Twitter's fast-growing MoPub service connects advertisers that use ad networks like Google's AdMob, Apple's iAd, and Facebook's Audience Network with firms that want to auction off ad space in their apps and services (and it can use Twitter data for better ad targeting). This leverages data to make money without running more ads on its own service.

#apis

programming hooks, or guidelines, published by firms that tell other programs how to get a service to perform a task such as send or receive data

#free rider problem

When others take advantage of a user or service without providing any sort of reciprocal benefit.

#wisdom of crowds

The idea that a group of individuals (the crowd), often consisting of untrained amateurs, will collectively have more insight than a single or small group of trained professionals.

#prediction market

Polling a diverse crowd and aggregating opinions in order to form a forecast of an eventual outcome.

#"Smart" Crowd

must be devour, decentralized, offer a collective verdict, be independent

#Blockchain advantages

decentralization as a key to viable, large-scale prediction markets

#Crowdsourcing

The act of taking a job traditionally performed by a designated agent (usually an employee) and outsourcing it to an undefined generally large group of people in the form of an open call. Successes: Goldscorp & Waze

#Market Capitalization

The value of a firm calculated by multiplying its share price by the number of shares.

#query

search

#organic or natural search

search engine results returned and ranked according to relevance

#Page Rank

algorithm to rank websites

#Search Engine Optimization (SEO)

The process of improving the volume and quality of traffic to a Web site by structuring content to improve search engine ranking. A specific activity of Internet marketing.

#spiders, web crawlers, software robots

-Traverse available Web links to perform a given task. -Spiders discover documents for indexing and retrieval

#cached

Refers to a temporary storage space used to speed computing tasks.

#Deep Web

Internet content that can't be indexed by Google and other search engines.

#global servers

massive network of computer servers running software to coordinate their collective use

#Fault-tolerant

capable of continuing operation even if a component fails

#colos

Warehouse-sized facilities where telecommunication firms and other corporations bring their fiber optic cables and networking equipment together so that they can exchange networking traffic.

#search engine marketing (SEM)

Designing, running and optimizing search-engine ad campaigns.

#keyword advertising

Advertisements that are targeted based on a user's query.

#pay-per-click

advertisers display ads to potential customers for free and pay only when the customer clicks