ICT FLASHCARDS
ICT : information and communication technologies
à everything is impacted by ITC
• 1/3 of the people have concerned about the security of their data and don’t trust technology.
• 92% of French people are connected to the internet.
• 30M jobs are in telecommunications
• 57% of the web traffic comes from mobile web traffic
• Average time spend on internet/ day: 6h31
Companies are audited for:
- Capturing data
- Storing it
- Processing it
- And share the created it
GDPR: law that states 7 principles and rights about data regulation in the UE (consent before collecting and using data). General Data Protection Regulation
3 types of market players:
- Pure player: born with internet, BM relies on internet
- Click & mortar not born with internet but adapted to it
- Brick & mortar not born with internet, and didn’t adapt to it so disappear in modernized societies
Companies that were born 40y ago - took 10y to rule the world. à biggest companies were oil companies, car retailers….
Nowadays, biggest companies: GAFAM & tech companies (magnificent 7= biggest companies in USA: Amazon, Google, Apple, Microsoft, Tesla, Nvidia, Meta)
Apple is worth 3.5T$ -> market capitalization grows by 25%/y à 2X faster than the rest
à bigger than the market cap of 96% of countries GDP
MAAMA: Microsoft, apple, meta, google, amazon
Denmark named an ambassador at the Silicon Valley to regulate the power of GAFAM.
➔ Techplomacy
Techplomacy shows:
- Social changes are impacted by technological disruption
- Tech companies have influence and sometimes surpass states influence
- Non state actors are shaping foreign policies à influence geopolitics
Tech giants = political institutions that have influence
Key successes for tech giants: DIVERSIFICATION OF BM
Weaknesses: Poor CSR (corporate social responsibility -> used to forces companies to be ethical) + regulations
Disruption: provide a new product/ service to people that didn’t benefit from it before.
3 digital disruptions:
- 40y ago: based on innovation. GAFAM created unique services that disturbed traditional ecosystems. (ex: Macintosh)
- 20y ago: GAFAM positioned themselves and purchased companies in other sectors that weren’t disrupted. (ex: Google purchasing YouTube or Amazon bought MGM)
- 15y ago: new actors & new economic sectors that weren’t disrupted.
à NATU (Netflix, Tesla, Uber & Airbnb)
Coopetition: competition + collaboration (100% of Netflix’s content is hosted by Amazon Web Services).
Dark pattern design: to capture data without customers even knowing it. (Ex: infinite scrolling) – ex: not easy to unsubscribe from Amazon
ATT: App Tracing Transparency: Apple 2021 to reinforce privacy (choose to share or not your data)
Data brokers: data that are shared to companies without our consent
Regulations:
- 2000: e-commerce directives: to make sure competition is fair and market goes well
- 2016: GDPR
- 2018: GAFA Tax
- 2019: Digital service act package
à DMA: digital market act: create a safer space online
à DSA: digital service act: provide a level playing field to foster innovation in ITC in Europe.
Privacy by design: develop and implement privacy as a norm in the development of a platform.
Digital divide: inequal access to digital technologies
BATX : Baidu, Alibaba, Tencent, Xiaomi
Digital protectionism (used by China) : technologies were imported and then frontiers were shutdown to make them mature and grow progressively à strengthen before exporting them.
Made in China 2025: become a leader in the tech market and export their technologies
Made in China 2035: run technological world and export their new tech IA…
Silk Road aim: Chinese strategy to conquer the world.
Digital silk road: to connect to the rest of the world using ITC
Belt & Road: connect China, Europe and Africa
Tiktok issue is the proximity of China with the communist party.
à fear of being spied on, disinformation, blackmail…
Unicorns: privately heled company which is valorized by Venture Capitalist before stock exchange. Introduction is at least 1B$ (50% in USA, 14% China)
Ex: Doctolib, Qonto, Back market
1229 unicorns in the world but only 12 in 2023 because of unstable macro eco environment
Biggest: BYTEDANCE (225B$)
Hectocorn: 100B$
Decacorn: 10B$
Zebra: startup company valorized by venture capitalist, but the BM is ethical, they want to have a social impact. The growth is lower.
A company’s objectives:
- Brand awareness
- Win customers
- Make revenues
- Win customers loyalty
Shift of power: economic power used to belong to USA/ EU and now it goes to China/ India
Development of a digital economy:
à digitalization of content (ex: Vinyl to CD)
à dematerialization of content (ex: CD to Spotify)
It challenges economics and BM but allows to reinvent themselves
Processing technologies: analyze data to process it into information.
à Morrow’s law: processing power of chipset is multiplied by 2 every 18 months at a constant cost.
Transmission technologies: you need to share this information (right person, right time, right info)
Rivalry used to be based on power (size of the company). Now power = data
ITC: relevant (high economic power), broad (every sector), fast (changes occur fast)
ITC = convergence of 3 industries: content, IT, telecommunications
4 reasons for it growth:
- Nb of people connected to internet
- Deregulation of telecommunications
- Acceleration of technological development
- Internationalization of companies (virtuous cycle of innocation)
ITC & digital divide:
- Economic divide : pas les moyens d’y accéder
- Usability divide: don’t’ know how to use it (ex: generation gap)
- Empowerment divide: not use the optimum level
DSL: digital subscriber line (carry broadband internet signals)
More time spend on mobiles than computers.
Front office business processes must be mobile friendly
BIG DATA: amount of digital data produced, stored, exchanged by human and machines at a given moment.
à great variety of data (images, email, positions…)
à exa, zeta, iota
5V: to describe data: volume, veracity (trust of the data) ,velocity(speed at which it is produced and exchanged) , variety, value
6 factors explaining digital data growth:
1. Nb of people connected to internet
2. Nb of devices with data production capabilities
3. Increasing in the mobile data traffic
Supply and user effect
MNO: mobile network operators
20,3GB of data is consumed by phone/ month
Net neutrality: whenever the origin of the internet traffic, its typology and description, we are not able to discriminate it (no right to prioritize). End of it in the USA in 2018.
4. Traffic video IP is growing fast: most of the data are videos (vlogs, videocalls…)
5. Development of UHD (ultra haute definition)
6. Video mobiles adoption is climbing (China is watchingthe most Short-from videos) donc en gros ca fait que tu passes de plus en plus de temps à regarder …
Buying online:
- Advantage: access, time, choice, transparency, personalization
- Cons: cost, tradeoff, quality
Omnipresence on social networks while the user is alone IRL:
- Generation gap
- Exchange globalization
- ITC development & rapid changes
à deep changes in our society
à due to processing/ transmission technologies + new technologies progress
1B people connected to 3G à 15y
1B people connected to 4G à 4y
1B people connected to 5G à 3,5y
à faster is the adoption
How do human handle change?
- Awareness process
- Express interest in 1 technology
- Assess technology
- Try it
- Evaluate & adopt it
Roger’s theory:
- 2% : innovators
- 13,5% early adopters (opinion leaders)
- 34% early majority
- 34% late majority
- 16% laggards à against technology, adopt it because they don’t have the choice
2 models technologies:
- TAM: technology acceptance model: based on the perceived usefulness & ease of use à not sufficient
- UTAUT: unified theory acceptance and use of technology: consider other parameters
Value Chain:
Porter: 2 types of activities: primary & support
à the vision is restrictive since companies have connection flows with other market players
3 types of flows: (modern vision of VC)
- Product/ service: top down
- Financial flows: bottom up
- Information flows: bi direction
There is a geographic dimension depending on the product / distribution (local à farmer, national à car manufacturer, international)
Value chain might differ according to the degree of control, the localization…
Tech disturb space & time: ex zoom meeting in USA while you’re in France
ICT value chain:
1. Content & service production : PRODUCTION ex: crée le playmobil
2. Publishing & distribution activities: PACKAGING & EDIT ex: fais le packaging
3. Network activities: TRANSPORT CONTENT : transporteurs du jouet
4. User terminal: ALLOW USER TO ACCESS IT :magasin
5. End user :enfant
Horizontal concentration strategy: company stays at the same level of the chain to expand its scope of activity (cinema qui achète un autre cinema ou Netflix qui achète un cinema)
à reduce OV cost
à reduce competition (buy same level competitor)
à increase ARPU (average revenue per user)
Vertical integration: Company group under one authorityactivities than belong to more than one layer of VC.
1. Backward: integrate at above levels (from 3 to 2, 2 to 1…)
à optimize margin
à secure supplies (0 risk linked to basic contracts)
à added value has shifted in the VC (since you didn’t generate enough value at the previous level)
à deprive competitors from smtg they need (Amazon bought MGM)
à increase ARPU (since it offers new services)
à decrease churn rate (average nb of customers that you lose over a dedicated period over the nb of customers you had during the same period) x 100
It’s 5x more profitable to keep customers than to win new ones
2. Forward: integrate below levels (from 1 to 2, 2 to 3…)
à increase ARPU
à secure a control in the distribution network
à OTT have threatened telecommunication operators’ businesses
Ex: AT&T buy direct TV in 2018
To decide on which strategy to choose, you have to consider several factors : time to market, media expertise, cost, contribution to revenue…
Percolation path: all the links that connect market players in the VC (the flows)
Technological evolution à change in the distribution chain + new market players = new possibilities, new circuits
à necessity to implement a media technology
VC allows to:
- Understand market players policies
- Understand economy of the sector and legislation and competition laws
CYBERSECURITY
à touch everyone
à in all transactions
à risk that won’t disappear, but we can try to manage it
Main weak points:
- Human being
- Hardware default
- No business processes in place
2022= 3205 data breaches in the USA that had compromised 325 000 users’ information
Data breaches: non authorized access to personal data
à 9.36M$ = average cost of data breach in USA
France, 2021: 46B$ spent in data breaches
Access based control: employees have different degrees of access to different levels of confidential information.
Data breaches costs:
- Detection and escalation (direct and indirect) à importance to investigate since hackers often hide and can spend several months without being detected
- Post breach response (legal fees, product discounts since loss of trust, regulatory fees = 4% of annual turnover or 20B€)
- Notification costs
- Lost business
Health care, financial and cloud computing à highest cost of breaches
It takes on average 194 days to identify a breach + 64 days to contain it.
Main security threats:
- Brute force attack: hackers use sophisticated software to crack the machine
- Botnet attack: hackers take control of machines to give orders to other machines to make a coordinate attack and overwhelm the victim
- Ransomware: malware that encrypt some data and ask for a ransom
- Social engineering: attackers pretend to be someone the victim trust à need of 0 trust policy
- Phishing: trick the victim into giving up sensitive information.
à Vishing (voice vishing) – Smishing (sms phising)
- Spearphising: customized attack
- Whaling: going to the big fish
- Pharming: redirecting to fake websites
- Angler phishing: on social networks
- Man in the middle: intercept communication to steal info
ATP: advanced persistent threat : hackers remain without being detected à human involvement and use of sophisticated techniques
Hacktivism: hack for a cause à Anonymous, Wikileaks, Dead Cow
Cyberwarfare: hackers attack strategic infrastructures (ex: stock exchange, distribution networks).
à strong & very dangerous
à disruption & chaos
Ways to protect: MFA, training, 0% trust policy
Proactive measures:
- Assess basics, train & raise awareness, backups, use of white hackers, penetration testing, incident response exercise
Reactive measures:
- Playbooks, insurance, legal experts, investigation, communication & PR