isom quiz 1

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isom quiz 1
2014-05-26 03:15:26
isom quiz

isom quiz 1
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  1. causes of dotcom bubble(4)
    • amazon’s get big fast(keep lowering price to boost sales+ increasing marketing costs)
    • speculation from investors+crazy public
    • Over spending in fiber optic information highways
    • waves of IPO of internet companies+vc funding for craziness
  2. benefits from dotcom bubble…(4)
    • Breakthroughs in technology bring financial bubble
    • The overinvestment eventually lead to cheap Information highway that is built in very short time(5 years) upon which other business are built
    • forced the brick and mortar companies to become internet companies and forced them to get serious about IT
    • good for the newcomers and those survived
  3. Metcalfe's law states that …which creates…if there are k nodes, there are…lines connecting the nodes…
    • the value of a telecommunications network is proportional to the square of the number of connected users of the system;
    • network effect;
    • k*(k-1)/2
  4. Moore’s law states that…implies
    • overall processing power for computers will double every two years;
    • smaller and smaller chips
  5. Amazon vs ebay & takeaways(3)
    • Market research vs just an idea;
    • planning does not equal success because the internet is so dynamic and so many people contribute to it that its very difficult to predict
    • the internet is like a market place that filters off bad business model efficiently
  6. Transferring the password is difficult, hence rises that Public key encryption, which is…
    the receiver to send the lock first
  7. prerequisites of new markets/nature of digital economy(5)
    • globalization
    • digitalization
    • speeds
    • merger of products and services
    • role of ideas
  8. globalization: 2 features; today … is the enabler of globalization
    the system of interconnected economies based on capital markets and Characterized by the use of technology; companies doing business in global market, eg 711; IT
  9. globalization: why do business globally(6)
    • nature of business
    • more customers
    • close to customers
    • diversificationless affected by government policy in one placereduce risk
    • obtain local information
    • lower cost(easy to copy model for 711)
  10. outsourcing vs offshoring
    • putting business process in another company
    • putting business process in another country
  11. Difficulties in Globalization
    • Laws and regulations: labour law and tax laws
    • Culture and language: coca-cola
  12. 3 globalizations
    • 1.0 Countries
    • 2.0 Companies-search for labour and service
    • 3.0 Individuals- individuals to think of themselves competing globally with other individuals
  13. 10 world flatteners
    • 11/9/89
    • 8/9/95
    • workflow software
    • uploading
    • outsourcing
    • offshoring
    • insourcing-UPS do repair and maintenance for Toshiba
    • informing
    • supply chaining
    • Steroids-do things mobile
  14. 11/9/89(K)
    Berlin Wall came down, single flat place, the word globalization came up + rise of Windows-PC becomes widely available + authoring ability
  15. 8/9/95(K)
    Netscape went public, invent web browser-internet becomes widely available
  16. workflow software(K)
    software connect to software, platform for collaboration, interoperable – productivity gain
  17. offshoring(K)
    Performing the same production at much lower costs (cheaper labor, lower taxes, subsidized energy, lower health-care costs
  18. Implication of outsourcing/offshoring-not zero sum game(K)
    • More jobs and higher econ growth for china
    • Cheap imports saves for US consumers and manufacturers
    • Difference btw developed and developing countries decreases
  19. Uploading(K)
    x- top-down distribution, x-centralized entity, eg. Linux, Wikipedia, blogging
  20. supply chaining-pros, importance, challenges, eg of using IT to meet SCM challenges
    • collaborate horizontally, common standards, interface, x-points of friction at borders, efficiencies gain
    • take advantage of the best producers at the lowest price
    • Global optimization: total delivery cost of all your parts on time is low;
    • harder to forecast demand, Inventory control, in and out of fashion, fast innovation
    • Walmart, RFID
  21. Insourcing(K)
    small companies see world, take their business global; improve the efficiency of their GSCs
  22. informing(K)
    personal supply chain, Self-collaboration, like-minded people, enabled by Search Engines
  23. steroids(K)
    turbo-charge” the other nine Flatteners, improved communication technologies, VoIP, P2P, Wi-Max
  24. what is flat world(K)
    specialization, lowest relative opportunity cost, Everyone can contribute, go from vertical to horizontal, IT: new platform
  25. takeaway from world flattener(K)
    • faster inventions, IT, bigger, complex, Ideas
    • To demonstrate that the services we receive now may come from anywhere, and technology is the enabler
  26. digitization of goods- What is the property of Information Goods(2)
    • Very difficult to produce the first copy
    • Very easy to make copies-low marginal cost
  27. Speed(K)
    • Product cycle, inventory costs, customer satisfaction, process supply chain information
    • Quick diffusion of knowledge, news, opinion, technology, inventions
  28. Merger of product and services(example)
    • Iphone+app store
    • Amazon + UPS
    • Pizzeria location on google map
  29. IP protection-patent-3 test
  30. IP protection-copyright applies to…doesn’t violate when…
    • Expression of an idea (not the idea itself)
    • fair use, not for commercial use
  31. Trademarks-def
    word, phrase or symbol to identify a brand
  32. trade secrets-cons
    cannot sue others for stealing invention
  33. new businesses(examples of travel, C2C, financial)
    • travel: orbitz, expedia, zipcar
    • C2C exchange and auction: ebay, yahoo auction
    • Financial: fidelity, etrade
  34. Changes brought by digital world(consumer and workers)
    • Consumers: niche, more choice
    • Workers: telecommuting, knowledge workers, individual work
  35. Major ethical issue in digital world
    Piracy and privacy
  36. What is E-Business(K)
    Transactions, inc. information exchange; telecommunications systems, private networks or the Internet
  37. three key characteristics of E-Business
    exploiting, delivering, reaching
  38. why is auction good
    efficient because the person with the highest valuation gets the item
  39. auction ysd VS auction today
    auction house VS online
  40. pros of online auction(6)
    • For object of unknown value,
    • Flexible,
    • Dynamic,
    • Mechanized- x-complexity of negotiations & can sell lots of stuff,
    • efficient,
    • not easy to collude
  41. Type of auction
    • Open auctions-english and dutch
    • Sealed-bid auctions- first price & second price (Vickrey)
  42. seller’s reserve price-meaning
    minimum acceptable price
  43. dutch auction(K)
    start high to sell quickly, tulips
  44. first price VS second price sealed-bid(K)
    • people tend to bid lower in first price auction
    • Telling the truth is optimalin second-price auction
  45. theories in auction
    • Winner’s Curse-overestimation
    • Lemon Car-uncertainty, lower expectation, no seller would sell valuable car
  46. Why consumers pay different prices?
    Consumer heterogeneity(Preference), Awareness(Search cost), Trust(Branding), Lock-in(Too late to switch)
  47. Digital Divide-meaning
    effective access to digital and information technology
  48. One Laptop Per Child(K)
    strategic defense, window to the world, collaborative learning, ignorance and poverty.
  49. Long Tail(K)
    variety, Real reason behind gain in consumer welfare(utility)(not lower price)
  50. Limitation on traditional bookstore
    Capacity limit, won’t sell goods that rank low
  51. Long tail from real data-observation on the long tail
    Mediocre products give way to head and tail
  52. Technologies drive the long tail
    • Centralized inventory(cost, limitations of shelf space)
    • Search engines, Product and Price Comparison Agents, Online reputation systems
  53. E-business benefit(9)
    • global marketplace, buyers become sellers, variety
    • 24/7, convenience
    • Personalization
    • Better customer service
    • Reduced cost
    • Increase Search and transaction speed
  54. buyers become sellers(K)
    reputation become asset, start as buyer
  55. concerns of e-business(3)
    • privacy
    • ROI
    • touch and feel(experience centre)
  56. how e-business radically change value chain
  57. 2 value chain under Disintermediation for publishing e-books
    • Riding the bullet value chain-author, publisher, retailer, customer
    • Plant value chain- Author, customer(release when enough pledges)
  58. Benefits of Disintermediation(3)
    • Commission
    • Quick launch
    • Feedbacks
  59. 5 e-bus B2C model
    • Subscription
    • Online Storefront: website as intermediary btw manufacturer and consumer(amazon, itunes store)
    • Brick-and-clicks: parknshop, experience centre(don’t sell in shops), GAP, commercial express
    • Internet Presence: provide information, eg. Cocacola, mcdonald
    • Intermediary: Affiliated website-host own site and help sell Amazon, get commission; 3rd party sellers-sell through amazon and pay commission
  60. Pros of Brick-and-clicks
    • More options for consumers
    • reputation (physical store) leads to trust
  61. B2B (K)(4)
    • Large revenue
    • Transparent info exchange in us(not in china)
    • Direct seller, eg. Cisco
    • New Intermediaries: alibaba
  62. C2C(K)(5)
    • Online Garage Sale, eg. Craigslist
    • Online auction
    • Services: rentacoder
    • Online communities
    • Funds placed in escrow
  63. Echopal (K) (5)
    • Buy directly from farmer, farmers check price before
    • Market failure, reducing uncertainty, eliminating unnecessary intermediaries