ITSS 3300- Bose Final
Nielsen's Law - ANSWER-Internet connection speed will grow by 50% every year
Implication: Higher speeds enable new products, platforms and companies
Kryder's Law - ANSWER-storage disk drive density will double every 13 months
Implication: storing data is getting cheaper
The Five Component Model - ANSWER-Computer Side:
• Hardware (actor)
• Software (instruction)
Data (bridge)
Human Side
• Procedures (instruction)
• People (actor)
Automation: work pushed to computer side (from human side)
People are harder to change
What's the most important component of the 5 component model - ANSWER-YOU
- your cognitive skills determine quality of your thinking ability to conceive information
from data
(ultimately, you interpret the data)
- you add value to info and info systems
- ONLY HUMANS PRODUCE INFORMATION
- all components must work together
Competitive Forces
(What forces determine industry structure?) - ANSWER-Competition can come from:
- vendors who manufacture substitutes
(Threat of substitution)
- new competitors
(Threat of new entrants)
- existing rivals
(Rivalry)
Competitive Forces Airline Example - ANSWER-Boeing vs Airbus
- Boeing is made in the US
- Airbus is made in Europe
, Bargaining Power Forces
Where does Bargaining power come from? - ANSWER-Bargaining power comes from:
- suppliers
- customers
Use Five-Forces Model to Identify Sources of Strong Competition - ANSWER-
Bargaining Power of customers:
Toyota buys auto paint (because Toyota is a huge customer that will buy paint in a large
volume)
Threat of substitution:
Frequent traveler choosing which auto rental company to go to
Bargaining Power of suppliers:
New car dealers - they control the "true price" of a vehicle & customer can't reliably
verify the accuracy of that price
Threat of new entrants:
Corner latte stand - it's an easy business to replicate
Rivalry:
used car dealers - there are so many to choose from
Micheal Porter's Four Competitive Strategies - ANSWER-Cost
Differentiation
Industry Wide
Focus
Cost - Industry Wide: sell a wide range of products that are low in cost
(Amazon, Walmart)
Cost - Focus: sells a specific type of product targeted at certain groups that are low in
cost (Payless, Sam Moons)
Differentiation - Industry Wide: sells a wide range of products that are sold at a higher
cost because something about their products are unique to its brand - marketing efforts,
designer made (Gap, Luis Vuitton)
Differentiation - Focus: sells a very specific type of product targeted at certain groups
that are sold at a higher cost because something about their product is unique to its
brand (Vans, LuluLemon)
What is an example of Cost - Industry Wide? - ANSWER-Zappos, Amazon Style, Kohls
- sells wide range of products that are low in cost
Nielsen's Law - ANSWER-Internet connection speed will grow by 50% every year
Implication: Higher speeds enable new products, platforms and companies
Kryder's Law - ANSWER-storage disk drive density will double every 13 months
Implication: storing data is getting cheaper
The Five Component Model - ANSWER-Computer Side:
• Hardware (actor)
• Software (instruction)
Data (bridge)
Human Side
• Procedures (instruction)
• People (actor)
Automation: work pushed to computer side (from human side)
People are harder to change
What's the most important component of the 5 component model - ANSWER-YOU
- your cognitive skills determine quality of your thinking ability to conceive information
from data
(ultimately, you interpret the data)
- you add value to info and info systems
- ONLY HUMANS PRODUCE INFORMATION
- all components must work together
Competitive Forces
(What forces determine industry structure?) - ANSWER-Competition can come from:
- vendors who manufacture substitutes
(Threat of substitution)
- new competitors
(Threat of new entrants)
- existing rivals
(Rivalry)
Competitive Forces Airline Example - ANSWER-Boeing vs Airbus
- Boeing is made in the US
- Airbus is made in Europe
, Bargaining Power Forces
Where does Bargaining power come from? - ANSWER-Bargaining power comes from:
- suppliers
- customers
Use Five-Forces Model to Identify Sources of Strong Competition - ANSWER-
Bargaining Power of customers:
Toyota buys auto paint (because Toyota is a huge customer that will buy paint in a large
volume)
Threat of substitution:
Frequent traveler choosing which auto rental company to go to
Bargaining Power of suppliers:
New car dealers - they control the "true price" of a vehicle & customer can't reliably
verify the accuracy of that price
Threat of new entrants:
Corner latte stand - it's an easy business to replicate
Rivalry:
used car dealers - there are so many to choose from
Micheal Porter's Four Competitive Strategies - ANSWER-Cost
Differentiation
Industry Wide
Focus
Cost - Industry Wide: sell a wide range of products that are low in cost
(Amazon, Walmart)
Cost - Focus: sells a specific type of product targeted at certain groups that are low in
cost (Payless, Sam Moons)
Differentiation - Industry Wide: sells a wide range of products that are sold at a higher
cost because something about their products are unique to its brand - marketing efforts,
designer made (Gap, Luis Vuitton)
Differentiation - Focus: sells a very specific type of product targeted at certain groups
that are sold at a higher cost because something about their product is unique to its
brand (Vans, LuluLemon)
What is an example of Cost - Industry Wide? - ANSWER-Zappos, Amazon Style, Kohls
- sells wide range of products that are low in cost
