Term
|
Definition
| increases as innovation increases |
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Term
innovator's dilemma
give an example
who has overcome this? |
|
Definition
"living on the edge of chaos"
how to innovate your business and create new strategies w/o diverting too many of your resources away from operations
Apple has solved this problem. Instead of focusing on profits, they focused on products. They are focused on innovating new products and services rather than strictly focusing on how to continue what they already do |
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Term
| What is the concept of "discontinuity" tell us about long term survival of companies? |
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Definition
| discontinuity is the idea that markets and corporations are forever changing, and that to keep up you have to be willing to adapt and fail |
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Term
| How has IT evolved over the years and how has it transform and disrupt the world? |
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Definition
|
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Term
| What characteristics of digital products change the way businesses compete? |
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Definition
|
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Term
|
Definition
| small random changes can lead to radically different outcomes-- 'butterfly effect' |
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Term
|
Definition
long periods where nothing happens filled by short revolutionary transitions
ex- kodak, newspaper industry |
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Term
|
Definition
"chip performance doubles every 18 months"
another way to look at it is that chips that are as fast as today's chips will be available in 18 months for half the price
OR
that in 18 months time you'll be able to purchase technology that's twice as fast or holds twice as much information for the same price |
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Term
|
Definition
| a substance such as silicon dioxide used inside most computer chips that is capable of enabling as well as inhibiting the flow of electricity. computer chips are sometimes called semi-conductors |
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Term
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Definition
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Term
|
Definition
|
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Term
|
Definition
creating a product that will end up damaging your sales or development of a current product or service
ex- kodak didn't further develop the digital camera because it didn't want to destroy it's film sales |
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Term
|
Definition
| the inability to change corporate processes such as the rules of thumb for decision making, control processes or the information used for decision making, in the face of clear market threats |
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Term
|
Definition
|
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Term
|
Definition
| 5 waves of MOORE'S Law: 60's, 70's, 80's (personal computers), 90's (internet computing), climaxing in the 2000's with ubiquitous computing |
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Term
|
Definition
| a dynamic network of many agents acting in parallel, constantly acting and reacting to what the other agents are doing. control tends to be highly dispersed and decentralized. If there is to be any cohesive behavior it must arrive from competition or collaboration of the agents themselves. The overall behavior of the system is the result of the huge number of decisions made every moment by many individual agents. |
|
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Term
|
Definition
1. large number of different elements
2. no one element understands the whole system
3. have rich interaction
4. operate in an open system, one of many
5. operate far from equilibrium
6.any agent can influence and be influenced by other agents
7. demonstrate emergent behavior
8. affected by positive or negative feedback loops |
|
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Term
| in a ______ system, many and any agents can influence the system |
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Definition
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Term
| give an example of one agent influencing others in a CAS |
|
Definition
| Apple and Google lowering app-creating restrictions |
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Term
| give an example of a feedback loop: |
|
Definition
| the continuous loop of more xbox games being made, resulting in less ps2 games being made, resulting in less people buying ps2s, resulting in more people buying xboxes, resulting more xbox games to be made |
|
|
Term
| COMPLETE LIST OF CAS CHARACTERISTICS |
|
Definition
|
|
Term
what is co-evolution in business?
Give an example |
|
Definition
| ex- facebook increasing privacy settings, google plus soon after offering users expanded privacy settings |
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Term
|
Definition
|
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Term
|
Definition
| using a bunch of different people and perspective to generate new challenging perspectives to overcome culture lock |
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Term
|
Definition
| model of how the world works |
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Term
|
Definition
| plan, method, or series of maneuvers to obtain a specific goal |
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Term
|
Definition
| if you believe in a theory, then a strategy to cope with events |
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Term
|
Definition
| specific actions for reaching strategic goals |
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Term
|
Definition
| detailed, day to day steps to achieving tactics |
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Term
| ______ reflect knowledge of the complex system |
|
Definition
| Strategies reflect knowledge of the complex system |
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Term
|
Definition
| a 3D model that represents the possible strategies and resulting outcomes one can take. it is always changing |
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Term
|
Definition
| more minds are better than one |
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Term
|
Definition
| as the environment changes, the potential of your strategy changes |
|
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Term
| how do you find new peaks? |
|
Definition
1. keep moving
2. send out lots of scouts
3. mix short/long jumps |
|
|
Term
| how do you survive a constantly adapting business world? |
|
Definition
| create and employ a population of diverse strategies |
|
|
Term
bottom-up leadership
give an example |
|
Definition
making decisions from the 'bottom' of management. Crowdsourcing and involving multiple, diverse persepectives. Leadership approach of choice in a RAS system.
Best Buy's Blue shirt Christmas gift card sales predictions |
|
|
Term
what are Robust Adaptive Strategies?
Give an example. |
|
Definition
| Microsoft winning the OS War of '88 |
|
|
Term
| what characteristics of CAS affect RAS? |
|
Definition
1. contain large number of elements
2. open system- one of many
3. many interactions in which we learn from one another
4. strategy is dependent upon knowledge of system |
|
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Term
|
Definition
| following a single leader such as a CEO. makes diversifying extremely difficult |
|
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Term
|
Definition
| these are the multiple trial and error ventures that businesses take in order to test the effectiveness and ultimately evaluate the worth of new strategies |
|
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Term
| operational effectiveness |
|
Definition
| performing similar tasks better than rivals, easy to match. although this promotes 'sameness' and fosters a resistance to innovation, it is a necessary component of a firm |
|
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Term
|
Definition
| performing the same tasks in a different way or performing different tasks, difficult to match |
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Term
|
Definition
| when a business attempts to match the benefits of a successful position while maintaining its current position |
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Term
|
Definition
| the set of activities through which a product or service is created and delivered to customers |
|
|
Term
| MIS 302F in one slide.... |
|
Definition
1. Industry Structure
2. Competitive strategies
3. value chain
4. business processes
5. information services |
|
|
Term
| Porter's Five Forces Model |
|
Definition
an externally focused model that evaluates a firm's position within an industry based on
1. potential for new entrants
2. power of suppliers
3. rivalry of existing competitors
4. power of buyers
5. threat of substitute products or services |
|
|
Term
| sustainable competitive advantage |
|
Definition
| the ability to consistently out perform industry peers |
|
|
Term
|
Definition
| through operational effectiveness or strategic positioning |
|
|
Term
| to maintain a sustainable competitive advantage a firm must maintain a set of exploitable resources with these four requirements: |
|
Definition
1. valuable
2. rare
3. imperfectably imitable
4. non-substitutionable |
|
|
Term
| porter's competitive strategy |
|
Definition
| an internally focused model that stresses the importance of strategic positioning and being different from competitors |
|
|
Term
| porter's value chain model |
|
Definition
| internally focused on evaluating how we produce/deliver goods/services. evaluated on whether the product or the service is unique and thus valuable |
|
|
Term
| primary components of value chains |
|
Definition
touch the product, there are five aspects:
1. inbound logistics
2. operations
3. outbound logistics
4. marketing/sales
5. services |
|
|
Term
| secondary component of value chains |
|
Definition
don't touch the product, include:
1. firm infrastructure
2. Human resource management
3. technology/research and development
4. procurement |
|
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Term
|
Definition
1. brand
2. differentiation
3. patents
4. scales
5. distribution channels |
|
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Term
|
Definition
| the symbolic embodiment of all the information that is connected with a product/service |
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Term
|
Definition
| costs incurred when a customer switches from one product to another (aka lock-in) |
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Term
|
Definition
| the value of a network increases as the number of users increases |
|
|
Term
information asymmetry
give an example |
|
Definition
when someone has all the information and thus all the power
ex- pre-internet era car dealerships had all the power, putting customers at a disadvantage |
|
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Term
|
Definition
| the cure for information asymmetry, when information is available to all |
|
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Term
|
Definition
| you can choose to be industry wide or focused on one area, you can low cost or differentiated, or a combination. however, your proximity to other companies on the chart directly correlates to how much you will compete with them |
|
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Term
|
Definition
| the raw materials that go into producing a product or service |
|
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Term
|
Definition
| turning resources into products |
|
|
Term
|
Definition
| getting the product to the costomers |
|
|
Term
|
Definition
| how you sell your product |
|
|
Term
| components of value chain |
|
Definition
1. in/outbound logistics
2. operations
3. marketing and sales
4. service |
|
|
Term
|
Definition
| taking control of more parts of your value chain, 'from field to shelf' |
|
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Term
|
Definition
|
|
Term
|
Definition
network effects; value of a network = (# of users)^2
coined by bob metclaf, UT prof, inventor of the ethernet |
|
|
Term
| sources of a network's value |
|
Definition
1. exchange
2. staying power
3. complementary benefits |
|
|
Term
|
Definition
something is exchanged between users
ex- instant messaging has a high exchange value because as more people join you are able to communicate with a greater number of people in your network |
|
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Term
|
Definition
having high switching costs so that you create a customer base of 'barnacles'
includes aspects such as invested time, learning time, etc. |
|
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Term
|
Definition
another product or service that adds additional value to your product or service. create a positive feedback loop, which lowers the amount of complimentary benefits available to your competitors.
complementary benefits are a bottom up approach |
|
|
Term
| software's role in industry |
|
Definition
| to make the value chain more efficient, remember: strategy is more important than technology. we don't just create technology for shits and giggles |
|
|
Term
|
Definition
| products and services that allow for development and innovation of software products and other complimentary goods. |
|
|
Term
one-sided market
give an example |
|
Definition
derive most of their value from a single user group
ex- AIM |
|
|
Term
two-sided market
give an example |
|
Definition
derive their value from two groups of users (aka cross-side exchange)
more sellers=more buyers, more buyers=more sellers. creates a positive feedback loop
ex- eBay |
|
|
Term
|
Definition
| fierce competition and scenarios where the best product doesn't always win |
|
|
Term
|
Definition
| the point at which one winner could take all |
|
|
Term
| how do you increase the number of buyers? |
|
Definition
| encourage people to make more complimentary benefits for your product, focus and invest on one side of a two sided market and the other side will follow growth |
|
|
Term
| technological leapfrogging |
|
Definition
| when a product's technical functionality surpassing your rivals by an incredible amount enough to out weigh possible switching costs |
|
|
Term
| cross-side exchange benefit |
|
Definition
|
|
Term
|
Definition
1.hardware
2.operating system
3. application
4. user |
|
|
Term
| marginal cost of software |
|
Definition
| because no raw materials are used in the production of one additional unit, this cost is zero |
|
|
Term
| how would you threaten microsoft? |
|
Definition
1. substitution
2. hold-up (litigation)
3. security- everyone is after the big guy
4. less online network (?) |
|
|
Term
|
Definition
1. no immediate threat
2. easy to continue what you're good at
3. short-term profitability
4. cultural lock-in |
|
|
Term
| how do you make money on the free OSS |
|
Definition
| by selling support and consulting |
|
|
Term
|
Definition
1. lowering computing allows for more small firms to enter the industry
2. more reliable, secure computing lowers the cost for all users
3. diverts costs that would otherwise be spent on fixed costs so that these costs can now be spent on innovation or other more competitive initiatives |
|
|
Term
| arguments against open source |
|
Definition
1. some systems have a higher TCO (total cost of ownership)
2. some think its complicated to install/manage
3. legality/licensing concerns |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
all the costs incurred from owning something.
ex- owning a car includes the cost of gas, insurance, and maintenance |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
| what made microsoft so profitable? |
|
Definition
1. partnering with OEM (IBM)
2. ISV (independent software vendors)
3. complimentary benefits
4. lock-in created by upgrades
5. bundling
6. network effects |
|
|
Term
| firms with __________ can leverage network effects to take over prior market leaders. |
|
Definition
|
|
Term
| it's imperative to _______ in markets influenced by market effects |
|
Definition
|
|
Term
|
Definition
instead of going into shark infested water, this occurs when a firm evaluates the industry before they enter it and choose to go into an area that is unoccupied and thus offers little competition
ex- wii taking the gaming industry to older folks, women, young children. all groups who had previously been alienated or ignored by the industry |
|
|
Term
|
Definition
| technique used for leveraging wisdom of crowds polling a diverse crowd and aggregating options in order to form a forecast of eventual outcomes |
|
|
Term
| qualities of a 'smart' crowd |
|
Definition
1. diverse
2. decentralized
3. offer a collective verdict
4. be independent |
|
|
Term
|
Definition
| when savvy rivals observe a competitor, learn from their mistakes and achievements, then enter the market quickly with a comparable or better product at a lower cost |
|
|
Term
| why is technology not a source of competitive advantage? |
|
Definition
| this is not a source of competitive advantage because it can be matched so quickly |
|
|
Term
| Porter's claim in regard to strategy |
|
Definition
| "fundamentally about being different" |
|
|
Term
| what is the benefit of resource-based thinking? |
|
Definition
| the benefit of this mindset is that you can evaluate your position and resist entering an industry just because it is experiencing growth |
|
|
Term
|
Definition
| using technology to create competitive assets or ways of doing business that are difficult for others to copy |
|
|
Term
| a firm can strengthen their strategic position by________ |
|
Definition
| by leveraging assets that reinforce each other a firm can strengthen this |
|
|
Term
| imitation-resistant value chain |
|
Definition
| a unique way of doing business that usually involves technology and is difficult for competitors to match |
|
|
Term
|
Definition
leveraging consumers to promote a product, important aspect of building up a company's brand
ex- sharing a company's page on FB |
|
|
Term
|
Definition
| advantages related to size. involve economies of scale, or being able to spread costs across increasing units of production or consumer base. |
|
|
Term
|
Definition
| being able to efficiently utilize economies of scale |
|
|
Term
| a growing firm gains ________ with suppliers and buyers |
|
Definition
| a growing firm gains bargaining powers with these groups |
|
|
Term
| sources of switching costs |
|
Definition
1. learning costs
2. information and data
3. financial commitment
4. contractual commitments
6. search cost
7. loyalty programs |
|
|
Term
|
Definition
| products or services that are nearly identical that are offered from a number of different firms |
|
|
Term
| how do you break a commodity trap? |
|
Definition
| leverage technology to differentiate your product/service |
|
|
Term
| what roles can data play? |
|
Definition
data can increase switching costs by providing more accurate forecasts or product demands depending on the number of users
ex- unwilliness to re-enter information after already making an account on netflix
data can also allow firms to differentiate
ex- amazon customizing your homepage based on buying records |
|
|
Term
|
Definition
the ways goods or services make it to your customer. you can also recruit customers to enhance these channels
ex- offering a cut of the sales to people who allow you to advertise on their site |
|
|
Term
|
Definition
| third parties who promote your product for a cut of the profit, play a role in promoting distribution channels |
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