MBA Chapter 1 (Module 1)

what percentage of the world’s economy is considered digital

20%

which 5 firms have surpassed $1 trillion in value

1. apple

2. Microsoft

3. google (alphabet)

4. Meta (facebook, instagram, whatsapp)

5. amazon

6. nvidia (AI)

(dominating separate markets)

Market Capitalizations

the market cap of a publicly traded firm is its total value. Market cap can be calculated by multiplying the number of firms shares by its current share price

forbes suggests that __% of firms are failing at digital transformation

72%

Research and Development (R&D)

the portion of a firm focused on innovation, typically pioneering advances that will eventually arrive as new products and technologies 

Nvidia

most important firm in providing microprocessors that are used in artificial intelligence. have 80-95% of the high end AI chip market

microprocessors

the part of the computer that executes the instructions of a computer program

server farms

a massive network of computer servers running software to coordinate their collective use. Server farms provide the infrastructure backbone to SaaS and hardware cloud efforts, as well as many large-scale internet services 

pros of AI

fight crime, advance cleantech, diagnose diseases, fuel science breakthroughs

cons to AI

can leave gaping security holes, chatbots can “hallucinate” and make things up

digital growth compressed into covid years

1. pandemic broke offline habits

2. contactless payments, grocery delivery, telehealth, work from home

3. inflation pushed interest rates higher

4. me too investments (thin multiple streaming services)

golden triad of “entrepreneurship”

1. there’s a problem

2. i can solve this problem

3. and i can be paid by solving the problem

pivoting

in product development and entrepreneurship, this involves significantly redefining the market, business and/or product offering 

term sheet

A legal document that is the agreement between a founding firm and its investors. It defines investment terms, ownership stake, board membership if offered, etc 

finance

tech is the disciplines lifeblood, bankers work on IPOs (initial public stock offerings)

accounting

Numbers used by accountants are all recorded, stored and reported by information systems and the reliability of any audit is tied to the reliability of the underlying technology

The reliability of any audit is tied to the reliability of the underlying technology 

marketing

The ability to track customers, analyze campaign results and modify tactics has amped up the return on investment of marketing dollars with firms increasingly shifting spending from tough-to-track media such as print, radio and television to the Web. 

central components of the new marketing toolkit. 

Search engine marketing (SEM), search engine optimization (SEO), customer relationship management (CRM), personalization systems and a sensitivity to managing the delicate balance between gathering and leveraging data and respecting consumer privacy

Operations

A firms operations management function is focused on producing goods and services, and operations students usually get the point that tech is the key to the future 

human resources

1. Knowledge management systems are morphing into social media technologies: social networks, wikis and twitter style messaging systems 

2. Used for training, screening and evaluation 

3. The successful HR manager recognizes that technology continually changes an organizations required skill sets a s well as employee expectations 

the law

Firms planning to leverage new inventions and business methods need legal teams with the skills to sleauth out whether a firm can legally do what it plans to do 

tech jobs made up all the top __ jobs that werent health care jobs

15

hype cycle

hype cycle charts the path an innovation takes once it enters the market 

y axis hype cycle

expectations surrounding an innovation

x axis hype cycle

value over time

hype cycle phases

1. emerging innovation

2. inflated expectations

3. trough of disillusionment

4. slope of enlightenment

5. plateau of productivity

Emerging innovation

Technological breakthrough or product launch getting people talking. capitalists plow money into startups focused on this area

inflated expectations

1. Excitement bringing in more suppliers and people using product 

2. Alot of media coverage, limited proof it can bring in what you need 

trough of disillusionment

1. Original excitement wears off 

2. Low return on investment

many companies never recover from fall

slope of enlightenment

When early adopters see initial benefits and others start to understand how to adapt the innovation to their organizations 

firms begin to adopt the tech

plateau of productivity

More users see real world benefits and the innovation goes mainstream. period of regular use 

what is the usual time range for a full hype cycle

3-5 years

disruptive business models

1. uber (no vehicles owned)

2. airbnb (no properties owned)

3. google (most profitable advertiser, no media produced)

search engine optimization (SEO)

process of improving a websites visibility in search engines

customer relationship management (crm)

system for managing customer relationships