The flashcards below were created by user
on FreezingBlue Flashcards.
Four powerful worldwide changes that have altered the business environment.
- Rise of the Information Economy
- Emergence of the Digital Firm
- Transformation of the Business Enterprise
What is a central productive and strategic asset of today?
Four rules Governing the Digital Economy
- Wealth Flows from innovation, not optimization
- The ideal environment for cultivating the unknown is to nurture the supreme agility and nimbleness of networks
- The domestication of the unknown inevitably means abandoning the highly successful known - undoing the perfected
- The cycle of "find, nurture, destroy" happens faster and more intensely than ever before
Two most important skills for success today
- Critical Thinking
What enables the digital firm?
Define Digital Firm
Organization where nearly all significant business processes and relationships with customers, suppliers, and employees are digitally enabled, and key corporate assets are managed through digital means
Define Business Processes
The unique ways in which organizations coordinate and organize work activities, information, and knowledge to produce a product or service
Three major aspects of Trend 4: Transformation of the Business Enterprise
Three levels of an organization
Define Information System
Interrelated components working together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization in an organization
3 Parts of the Knowledge Pyramid (in order)
- 1. Knowledge - how to use information
- 2. Information - shaped data
- 3. Data
Relate the Four parts of System Theory
Input to Process to Output to Feedback, which goes back to Input
Define Four elements of System Theory
- Input: The collection of raw data from within the organization or from its external environment for processing in an information system
- Processing: The conversion, manipulation, and analysis of raw input into a form that is more meaningful to humans
- Output: The distribution of processed information to the people who will use it or to the activities for which it will be used
- Feedback: Output that is returned to the appropriate members of the organization to help them evaluate or correct input
What is the role of IT in firms today?
Define Disruptive Technology
- A new way of doing things that initially does not meet the needs of customers
- Ex. The internet
Define Sustaining Technology
Produces an improved product customers are eager to buy
What is information asymmetry?
Information asymmetry is being increased by what phenomenon?
- Situation in which the relative bargaining power of two parties in a transaction is determined by one party possessing more information essential to the transaction than the other party
- Rise of the e-world
How is the e-world Changing Relationships?
- No need to trade of richness of information for reach of information
- Made possible by the internet
- Ex. Amazon can suggest books individually to millions of customers
Define these Business Models on the internet: Virtual Storefront, Information Broker, Transaction Broker
- Virtual Storefront: Sells physical products directly to consumers or businesses
- Information broker: Provides product pricing and availability information; generates revenue from advertising or directing buyers to sellers
- Transaction Broker: Processes online sales transactions for a fee
Define these Business Models on the internet: Online Marketplace, Content Provider, Online Service Provider
- Online Marketplace: Provides digital environment where buyers and sellers meet
- Content Provider: Provides digital content, such as news; revenues from fees or advertising
- Online Service Provider: Provides connectivity; Ex. Clickstream
Define these Business Models on the internet: Virtual Community, Portal, Syndicator
- Virtual Community: Provides online meeting place for people of similar interests
- Portal: Provides initial point of entry to the web, along with specialized content and services; Ex. Yahoo
- Syndicator: Aggregates content or applications to resell as package to third-party Web sites
Name Porter's Five Forces
- Threat of new market entrants
- Threats from substitute products
- Other competitors
Explain Socio-Technical Theory
All elements of the firm (organizational structure, tasks, people, and technology) must develop simultaneously and with the same goal