BUSI 830 Overview of Case Study Types

defining the problem - ANS-- important- to clarify nature of business issues =important step. even can ask questions after define the proble - ANS-- need logical answer - can break problem into smaller pieces , could also conduct a SWOT analysis of the firm, then state hypotheiss and potential solutions, then choose framework to structure your hypotheses, then state assumptions, at end summarize framework and analyses you utilized. importance of pose and flexibility - ANS-- confidence in your answer, handle self when make a mistake, as situations change and new information becomes available, are you able to adapt? articulation wiht communication, display energy and drive examples: The client, a leading manufacturer of prefabricated kitchen furnishings, has been steadily losing market share over the last two years. • The senior executive team would like you to help them understand why and what they can do to improve their market standing. what should you ask? - ANS-- Has the size of the market changed in the last two years? • Has the competitive structure of the industry changed? Mergers and Acquisitions? New Entrants? • Are there any new products or new technologies that are gaining market share? • How are we currently positioned (low cost, high quality, etc )? What is our competitive advantage? parade of facts case example: Client is a leading food company that wants to develop a fresh prepared meal business • Trend among consumers is toward fresher food with no artificial preservatives or coloring • Consumers are currently purchasing $5 0 billion of frozen meals—trendis toward more upscale products • A fresh meal plate combining a protein, vegetable and starch is delicately arranged in a sealed plastic dome package • Nitrogen gas flushing is used to extend shelf life • Product is currently in limited consumer test at $5 50 to $850 per meal • Shelf life of product is 14 days— product will spoil in 21 dayspotentially causing food poisoning • Client wants to know if they can make money in this business • Client wants to know if the market is big—how will they keep competition out • Client wants a consultant to assistin building business case - ANS-- Key Problem: Profitability of Business and Size of Market • Problem Understanding: • Ask about consumer test What prices are consumers responding to? Are there any items spoiling on the shelf? • What is the competitive structure of this market currently? • What are the components ofthe company's cost structure? • Structure Analysis: • What is the break-even point for the firm? 1 Determine Gross Margin per Unit 2 Determine fixed costs 3 Divide to find break-even • Estimate the size of the market(a case within a case) • Determine the market share they will need to break-even • Develop Recommendations: • Discuss the competitive structure of the market Can the firm realistically achieve the break-even market share? rare but : Estimate the total number of dry cleaners in Philadelphia - ANS-- Assume there are two million people in Philadelphia • Estimate the size of market by segmenting the population • Assume the population consists of 25% adult men, 25% adult women, and 50% children • Assume children have no dry cleaning and only 25% of adults use dry cleaning • Estimate the average number of "units" of clothing each man and woman brings weekly to the cleaners For this case, assume that 3 shirts/ blouses and 1 suit are brought to the cleaners each week • Thus the total size of the market (per week) is one million units of clothing (1 million people x 25% x 4 units per person) Estimate the average number ofunits a dry cleaner can handle per week • Assume that the average dry cleaner has two workers who typically handle 20-30 customers (or 80-120 units of clothing) per hour • If the average dry cleaner is open eight hours a day, 5 days/week, they typically handle units per week (80-120 units x 8 hours x 5 days) • Divide the total market size by the average units handled per dry cleaner to find the total number of dry cleaners • There are between 208 and 312 dry cleaners in Philadelphia profitability business issue u- frameowrk - ANS-- profitability - revenue (volume and price) and cost (fixed and variable How do you increase revenue? • Increase prices • Increase volume • Decrease costs Increasing price (can one really increase price?) • Market power • Demand elasticity • Differentiated product • Higher prices of substitutes • Additional benefits - customer service Increase Sales Volume • Increase market share • New products to new customers • More products to current customers • Increase growth • Improve technology • Promotion • Find more efficient channels Decrease Costs • Cost structure of firm / Evaluate value chain • Improve utilization of equipment • Outsource manufacturing • Consolidate purchasing • Reallocate to lower cost areas Partner with distribution • Strategic IT • Identify cost drivers • Consider Fixed versus variable costs • Which costs can be decreased • What are the competitors cost structures • How have costs changed over time • Direct costs (materials, labor, factory overhead) vs. indirect costs (SG&A, overhead, depreciation, capital costs, R&D) market expansion business issue framework - ANS-- market penetration (current market current product), market expansion (current market new product), market development (current product new market), diversification (new market new product) competitive analysis business issue - ANS-- 3 C's - customer ie individual customer perceptions loyalty switching costs etc company ie economics so costs, profitability, break even analysis, core competencies, resources, culture competition ie industry, size, number of competitiors, capabilities, economies of scale and then: SWOT so strenghts weaknesses, opportunities, threats strengths are what you can use/leverage off of and internal, weaknesses minimize you and ninternal, opportunities can exploit/expand on and external, and threats need to defend against and external market strategy business issue - ANS-- -4 P's so product (Features and capabilities • Positioning decisions and market segmentation • Differentiated versus commodity • Reliability, brand name (quality, reputation) • Packaging, size) price Retail and discounts • Strategy: MC = MR, skim, penetrate • Volume or profits • Perceived value or cost plus margin • Economic incentives to channel place (Channels (consider level of desire and margins desired) • Coverage (trade off between coverage and costs) • Inventory - levels, turnover, carrying costs • Transportation - alternatives, efficiencies, costs) promotion - buying process, consumer awareness, interest, promotional efforts, loyalty etc porter's five forces - ANS-- suppliers ie bargaining power, switching costs, threat of forward integration, presense of substitute inputs buyers -bargaining power ie buyer volume, info, concentration, profits substitutes -threat ie relative price performance of subsititutes, switching costs potential entrants threat- economies of scale, access to distribution, gov policy, all impact industry competition ie industry growth, fixed costs/value added, overcapacity etc pwc's solution in identifying technologies with most potential - ANS-- Uncovering trends, technologies, and processes that could impact the client's business positively A global pharmaceutical company in the process of developing an overall three to five-year IT strategy wanted to identify and prioritize disruptive technology investments that might benefit its business as part of its planning for the future. Though the company's technology leaders were familiar with the promises and possibilities of many emerging technologies, they needed to analyze how emerging technology investments would serve company-wide business strategies and goals. They knew that trends and buzzwords were easy to spot; the harder job was to discern which technologies would be most impactful most quickly. The company also hoped to reposition its IT organization as more of a business enabler by empowering its IT leaders to communicate the value of emerging technology investments to the business as a whole. - ANS-- ET: Focus uses both quantitative and qualitative analysis to explore both inside-out (divergent) and outside-in (convergent) sources of innovation and looks at the opportunities and potential impact from every possible angle: industry, technology, trends and value chain. Our four-phased approach helps the client identify which technologies to invest in based on business relevance and technical viability. First, we identify business trends, emerging technologies, and processes that could have an impact on the client's business over the next several years. Next, we filter technology trends based on corresponding business trends and opportunities. Then we prioritize the investment opportunities by assessing their business relevance and technical viability. And finally, we can build business scenarios that help visualize how the technologies and processes could impact the business in the future. YOU ARE EXPECTED TO ASK FOLLOW UP QUESTIONS - ANS-- 80/20 principle - 80% of the problem accounted for by 20% of the issues dO NOT jump to cnculsions after conclusions made at the end after asking and structuring etc, say a few recommendations - ANS-- a giant retailer's profits are down 10% since last year. what would you do? - ANS-- 3 C's for revenue analysis what would falling prices in an indsutry mean - ANS-- price war perhaps The falling prices can be interpreted to mean that a price war has begun in the industry, perhaps due to short-sighted competitive responses to new technologies. The falling volume can be interpreted to mean that the client and its competitors are getting cut out of the value chain, as manufacturers have begun to sell directly to resellers and end consumers. Based on the available data, deteriorating metrics across the board suggest that the industry is mature and rapidly approaching obsolescence. Absent novel opportunities for differentiation, there is little that the client can do to return to profitability under these market conditions. Recommendations should recognize this reality and likely address options for exiting the industry via diversification, firm sale, and/or closure. if market share has been decreasing, what are some questions to ask? - ANS-- about who competitiors are? market size? prices? competitor marketing? customers ie if price sensistive synergies in M&A - ANS-- Spreading fixed costs over greater production levels Gaining sales from having a larger product line and extending brands Better capacity utilization of plants Better penetration of new geographic markets Learning valuable management skills Obtaining higher prices from eliminating competition (beware of antitrust, though) Eliminating redundant headcount from a newly combined entity (e.g., duplicate R&D, Marketing, Sales, etc) JUST IN TIME PRODUCTION - ANS-- materials arrive at the customer's factory exactly when needed. JIT calls for synchronization between suppliers and customer production schedules so that inventory buffers become unnecessary. Effective implementation of JIT should result in reduced inventory and increased quality, productivity, and adaptability to changes. ask about whether to purchase new equipment - ANS-- BE pont = fC/ (price - VC) recommendation for information sharing and reporting standardidation - ANS-- XBRL - xml based language for standardizing methods for preparing, publishing, and exchanging financial info ie financial statemetns Accuracy & reliability of electronic transmissions Companies can further speed the process of reporting Business offer expanded financial information to all interested parties virtually instantaneously Consumers import XBRL documents into internal databases and analysis tools to greatly facilitate their decision-making processes data security - ANS-- password control, firewalls, system audit trails outsourcing controls neektas notes - ANS-- turn notes toward interviewer, do not say "I think" If I'm the client (pay attention to who it is you're talking to), what can I do to reduce the costs in my call center? - ANS-- SUMMARIZE THE QUESTION "in order to reduce costs - look through financials - look at everything you've looked at (FACTS) - what is the main problem: training - how to fix it: TANGIBLE solutions insurance company moves data base to the cloud, telling them as they go through transition where the major risks are - ANS-- (moving data base comes with risks — cybersecurity) retraining of employees, where info could get messed up (transfer), who has the right access to what, benefits (working remotely, frees up storage in our system, more time to redevelop hospital has a bunch of different branches (cardiology, plastics), all operate on different systems, systems aren't compatible & doctors cannot get information about different patients (centralize the system) - ANS-- - build a new system - all the doctors can correspond on the website - only 1 record per patient - support service line is under-staffed & they can't meet all customer calls - SWOT analysis - find solutions to broad problems & tailor them to specifics of case study business isn't doing well - ANS-- highlight aspect of business contributing to failure - rank different aspects from most critical to least critical - be conscious of notes - interviewer might ask for them (mark it up) things to think about with a company - ANS-- public/private? - who are the clients customers - brand loyalty - what products/services does the company offer - how strong is the brand - how are products distributed - how can the company expand M&A risks and controls - ANS-- -risk: culture mismatch (1 will be the prominent culture), jobs overlap, systems (syntax mismatch - information could be lost, read or categorized incorrectly onto a new system) -control: culture- rebranding unified mission statement, job- cut people based on our values, create training workshops, create jobs for people in both companies (pull acquired employees into high leadership positions), system- either pick 1 or implement a new one, teach systems to new staff, retrain them to align with values M&A implementing new system - ANS-- implementing new system: how can data get messed up (conversion information may not translate correctly, way one company logs things may be different), who has access to what, new passwords for everyone, lack of backup every night (ensure that that happens with the new system) -pros: decrease of competition, increase of capital (more $ to do work with), cutting costs (get rid of departments), monopolize the market *WHY would a company want to acquire:* - ANS-- keep up with competitors (technology) CREATE VALUE (increase efficiency for some people) they are looking for growth opportunities implementing new software within the firm-risk - ANS-- -risk: employee training, transfer of info either in or out (iPhone only thing that backs up is the contacts), cyber security (access it from your house- susceptible to internal breaches- crazy wife, phone doesn't have a password), cannot limit access entering a new market risk and pros - ANS-- -risk: small store small town, customer may not be comfortable with technology so it changes the brand, changes the target, changes distribution?, employee training isn't up to date, investment may not pay off - pros: easily accessible information, back up & stored (as opposed to paper), ability to plan inventory better & see trends online things to think about with a market - ANS-- how is the industry overall new tech/new regulations start up risks - ANS-- barriers to entry- can a start up enter the market successfully, competitors, lack of any brand recognition - disruption - who are the customers - technology, regulatory issues always a risk - distribution channels - How experienced is management? Train them. Advisory board to lead us company going mobile risks - ANS-- Why should they do it despite the risks - Summarize: - what could've been handled better & how? Lists of risks 5 - ANS-- HR 1. workers will not understand new systems 2. dissatisfaction with change - creatures of habit 2. Financial 1. not enough $ to support investment 1. survey of customers/stakeholders to see if this is a feasible change 3. international business 1. currency conversion/exchange rate 2. language barrier 3. time difference 4. new policies/regulations (GDPR - regulation in Europe) 4. Marketing 1. not aligned with culture 2. market isn't receptive 3. competitors in the industry 5. Cloud/cyber 1. lack of awareness about regulations (cloud) 2. highly sensitive information (cloud) and susceptible to security breaches (digitizing) 3. may be hard to transfer your information out hot to mitigate risk in a company - cyber - ANS-- review & update strategy every 6 months - automatic back up your data @ the end of every day - private server (safe) - passwords!! (2 step authentication) - token - people who come in & have temporary access get it removed - granting proper levels of access to different employees - map a plan that protects company both on site & remotely - monitor for unauthorized changes - secure networks (no public networks) how to mitigate risk in a company - HR, marketing - ANS-- employee training - review & update strategy every 6 months - extensive background check & fingerprinting Marketing - constant client outreach to grow & adapt their plan to this - review & update strategy every 6 months how to mitigate risk in a company - financial and mobile - ANS-- keep track of investment, ensure that there are no losses we cannot handle - financial forecasting by Finance team Mobile: - phone password - don't save passwords how to cut costs HR vs production vs finance - ANS-- HR: - lay-offs & re train - production - invest in tech, outsource -finance - sell unimportant assets, redesign insurance plans other type of case studies: P&L - what questions to ask and look into - ANS-- look at the industry - competitors A. external factors: natural disasters, rise in IR, new entrant into the market B. internal factors: we increased costs, we have lower revenue (sold less), we have outdated products B. what are the revenue streams C. how do we sell products (outdated?) D. any major shifts in costs/supplies? E. new product disadvantages: layoffs F. is your business only dependent on the current environment? if so, spread your market internationally pricing to maximize profitaibliity - ANS-- pricing to maximize profitability 1. look at pricing of competitors 2. is the product different enough for this high of a price 3. the cost for producing the product growth and increasing sales - ANS-- expand product offerings 2. adjust prices 3. expand how you distribute your products 4. assess which products have the largest growth & invest in them accordingly 5. identify changing customer desires 6. invest in marketing 7. strengthen customer service risks of M&A - ANS-- not enough funds to support - not enough knowledge regarding technology/new industry - CULTURE - changing their target market may lose brand loyalty - security risks - regulations of new market - how does this impact management? systems used? main risk categories - ANS-- CULTURE FIT - REGULATIONS - HR - TRAINING, BACKGROUND CHECKS - CYBER - systems: secure network (private wifi), systems are backed up at least once a day, newest version of all systems are used - password: everyone has a new pass, safe, 2 step authentication, pass change every 6 months, security questions - access: who gets access to what (go over this w exec management) - FIN: THEY WON'T BE ABLE TO PAY OFF THE INVESTMENT - MARKETING: LOSE CURRENT BRAND LOYALTY, BRANDING WILL NOT WORK - DISTRIBUTION CHANNEL CHANGES - COMPETITION start from the top down - board should have an enterprise security management committee - everything on computers is monitored - how much should we monitor things - establish real-time risk alerts newest version of software ensure that every step is logged password strength who has access to what monitoring for abnormal activity cybersecurity can take over (intellectual property/operations & all customer data) technical questions - ANS-- Benefits of internet commerce - ANS-- Access to worldwide customer/supplier base, reductions in inventory investment and carrying cost, rapid creation of business partnerships, reduction in retail prices through lower marketing costs, better customer service what is procurement - ANS-- intranet and risks - ANS-- small lanes and large wans that may contain thousands of nodes- connect employees within single building/same physical campus and between geographically dispersed located. I.e. email routing, transaction processing bw business units. Risks ie interception of network messages ie passwords, ids, confidential emails (called sniffing ) , privileged employees with access to corporate databases- ie outsiders may bribe employees with such access to write off an AR, sell sensitive info like credit card info. prosecution of perpetrators of info stealing within company - ANS-- company does not prosecute perpetrators sometimes due to fear of negative publicity cloud computing - ANS-- model for enabling convenient, on demand network access to a shared pool of computing resource s- networks, applications, storage, services ) that can be released with minimal management effort Example of when would need cloud computing ie business is doing well, but service slowing down bc too much demand so suddenly in trouble. A few years ago would have to buy/rent more servers . called "hosting". Costs time to set up and costs a lot of money too. Want To build service and improve product but customers getting angry due to time taking to set up servers. Alternative = cloud computing. Access to computer power whenever need - put ie website on cloud and if demand increases, can scale up servers almost instantly so more computing power as need it. Customers stay happy without noticing any difference. When don't need anymore can release this into the cloud. Billing works same as gas/electricity Remotely access cloud server and control it (but can't physically touch ie hardware). Just focus on software ie Gmail. pros of cloud computing, consequence - ANS-- Pros of cloud computer = scalability (grow or shrink based on demand) 2. Instant money bc only pay for what use - equipment utilization SOOO client firms can acquire IT resources as needed, resources provided over network, acquisition of resources is rapid, computing resources pooled to meet needs of multiple client firms Consequence is individual client has no control over or knowledge of physical location of service being provided. three cloud computing offerings - ANS-- Cloud computing offers three classes computing : software as a service - service provides host applications for client organizations over private network, SaaS vendors typically develop/mange own web based software designed to serve multiple businesses and users Infrastructure as a service- computer power and disk space to client firms who access it form desktop pcs. IA as provider owns houses and maintains equipment and client pays for it on a per use basis ie Amazon web series offer infrastructure capacity to it Netflix? Platform as a service enables client firms to develop onto cloud infrastructure including facilities for application dev, program testing, program implementation etc. so can rapidly build and deploy web applications risks/costs cloud computing - ANS-- despite convenience and potential for cost savings, cloud computing not realistic for all companies. Smaller businesses start up companies etc cloud promising to in house computing. Info needs of large companies often in conflict with these though: bc many large firms have incurred massive investments in ie software HR equipment, not inclined to walk away from investments and turn over entire IT ops to cloud vendor. 2. Many large enterprises functions running on legacy systems that old but continue to add value- risks of migrating legacy systems to cloud would require considerable reprogramming so makes wonder if cost/benefit is worth it cloud security threats from video - ANS-- Cloud security threats: data breach - someone can pass through and steal information, destroy information, so need access controls etc , biometrics to verify identities as go into particular server rooms . need encryption, data loss - accidental deletion of data. Also server breakdown may cause damage or loss to user data, Need to move to assumed breach model - know attackers will get in regardless of how strong firewalls and internal controls are. Segregate network assets so isolated once someone get in, monitor audit controls to detect. Internal control/security issues concerns for all companies to outsource IT to the cloud. When organizations critical data outside corporate walls, it is at risk. Tech failures in cloud, distributed denial of service attacks (DDoS), hacking, vendor exploitation, loss of strategic advantage outsourcing risks chapter 14 - ANS-- internet risks - ANS-- -many consumers (consumer perception) view internet as unsafe place to do business ie security of credit card information (ie buys flowers on line and when day arrives, company goes out of business/disappears and never hear from them again) Theft of passwords- website steal visitors password and use same password for dif applications ie atm etc Consumer privacy - concerns about lack of privacy discourage internet commerce Cookies=files containing user info that created by web server of site visited, cookies then stored on visitor's computer hard drive pg. 510 risks internet to businesses 2 and result - ANS-- Ip spoofing - masquerading to gain unauthorized access to web server - modifies IP address of originating computer to disguise identity. Make message appear to be coming from trusted or authorized source and slip through control systems, then crack corporate networks to perpetrate frauds, destroy data Denial of service attack DoS- assault on web server to prevent form servicing legitimate users. Ie syn flood, smurf, DDos Distributed denial of service attack - perpetrator may employee zombie or bot computers to launch attach. Result of such attacks = "punish company " that had bad blood with, also financial gain day or two ie so after attack CEO will receive pone call demanding sum of money at offshore account or attack will continue Also logic bombs, trojan horse- bring down computer network by corrupting or destroying systems. virutalization SEE VIDEO - ANS-- Virtualization - multiplies effectiveness of a physical system by creating software versions of the computer with separate operating systems - concept of running more than one virtual computer on single physical computer - since each virtual system runs own application, total computer power multiplied and no additional hardware investment 2 controls to internet threats - ANS-- Encryption - conversion of data into secret code for storage in databases and transmission over networks - sender uses encryption algorithm to code and at receiving end utilization of coding equivalent to decrypt. Can't just encrypt- how does supplier know that hacker did not intercept and alter customers purchase order? Could have bad financial impacts. So also have digital signature- electronic authentication that ensures transmitted message originated with authorized sender and not tampered with after signature applied. Receiver uses senders public key to decrypt. Also digital certificate - trusted third partiers issue these - sender's public key that Certification authority has signed . Firewalls- system used to insulate organization's intranet from internet - used to authenticate outsider user of network, verify authority and direct user to program requested. data warehousing - ANS-- Data warehousing- -g 477 one of fastest growing IT issues today. Being incorporated into ERP systems. Database consuming lots od dick storage. Involves extracting converting standardizing organization's operational data form ERP and legacy systems and loading into central pace. Data then uses for analysis like data mining - uncover patterns and relationships. Extract data from databases, cleanse, transforms in to warehouse model, loads into database. Positive is that it integrates data form legacy and contemporary systems into entity wide analysis. Consolidate global data, Superior structure for systems development- systems dev function separated into new systems development and system maintenance. DDP - ANS-- Distributed data processing model DDP 600 - so ie marketing, finance, admin, production has own it function- alternative to centralized model- reorganized IT function into small units distributed to end users and placed under their control. Cost savings, increased user satisfaction, improved cost control responsibility. Disadvantage =mismanagement of organization wide resources, hardware/software incompatibility, lack of standards VPN - ANS-- Virtual private network vpn private network within public network - maintaining security and privacy but requires encryption and authentication extranet - ANS-- Extranet- variant on internet technology- password controlled network for private users rather than public. risks associated with erp implementation -explain everything but accounting implications - ANS-- *Implementing changes way organization does business, so most ERP failures are results of cultural problems within firm that stand in opposition to objective of process reengineering. * process engineering will need to occur to take advantage of ERP . also need to assess technical culture so technical support staff for the new system - if most of users unfamiliar with computer technology, face steeper learning curve *Need to determine if ERP fits organization's culture or fits their business needs i.e. if have two dif prices for same inventory item and ERP system only allows you to implement one *System scalability issue s- if organization's management expects business volumes to increase during life of ERP, scalability issues. Systems ability to grow smoothly and economically as user requirements increase. Has to do with size, speed, workload, and transaction cost i.e. database size increases by x then query response time should increase by factor no more than x . workload- workload scalable is increased by factor of x, response time can be maintained by increasing hardware capacity by factor no more than x. in scalable system, increases in workload do not increase transaction cost. *Also consulting problems - delivering incompetent trainees so criticized. Do not implement it as well as should - set guidelines. * high costs- hundreds of thousands to hundreds of millions of dollars. Risk comes from training costs, systems testing and integration (integrating i.e. some legacy systems with ERP), usually new ERP systems needs new database- transfer data from legacy systems to ERPs relational database. Empty fields and corrupted data values cause conversion problems demanding human intervention, data may be lost or put in wrong place accounting implications with erp implementations - ANS-- *Also accounting implications - transaction authorization - controls need to be build to validate transactions before other modules/departments accept them. More based on programmed controls. Manual processes requiring segregation of duties often eliminated in ERP. Also risk with supervision - too often only implementation dep understands how ERP works *Access controls critical ERP environment - goal of ERP to maintain data confidentiality, availability. Uncontrolled access exposes organizations to cyber criminals who steal critical data. Control is usually have access control list - specifies user ID, resources available to user and level of permission granted i.e. read only edit create *reliability - if server failure , could leave entire organization unable to access transactions. May have two linked servers connected in backup mode incase one fails controls to cultural problems erp 2 - ANS-- Controls: big bang method and phased in approach. Big bang method - more ambitious -attempt to which operations form old legacy systems to new system in single event that implements ERP across entire company. Associated with system failures, getting entire organization on board and in sync huge task. Day 1: every employee like a trainee, doesn't understand how it works. Bc integrates entire organization, individuals at data points will have more data than previously with narrowly focused legacy system, complicated and resistance (we are creatures of habit) Phased in approach- popular alternative - suited to diversified organizations whose units do not share common processes and data - ERP systems can be installed in each business unit over time. If not diversified can also employ this approach- begin with i.e. one key process like order entry and runs at same time as legacy systems, as more functions converted to ERP, legacy systems retired over time blockchain - ANS-- mechanism of recordkeeping transactions - rather through centralized mechanism , decentralized. Computers all come to agreement with algorithm on what truth should be. Anyone can contain contents of a block I a blockchain. Updated automatically whenever new block added. Incorruptible. Continually reconciled database. ledger, shared and distributed, algorthmic based trust model to validate transactions in ledger, reduce business friction and technology friction since ledger independent of individual applications internet of things - ANS-- aka autonomous things, strategic tech - using ai tech to drive new capacilities in hardware and software systems ie autonomous vehicles, drones, autonomous shipping - not just hardware though, also in digital world too with software like intelligent agents working on our behalf augmented/virutal reality - ANS-- AI - ANS-- using AI in context of development, easier to create AI systems, automated testing tools, automated model generation etc SAP implementation - ANS-- why need erp? customers place order, sales check inventory, inventory says out of stock, sales contacts production planning to manufacture the product, this team, checks with inventory team for availability for RM, if not available would order from vendor, etc. manufacturing team creates product after ordered, then gives to sales, sales reports to finance about revenue generated etc etc etc lots of communications typical business process manufacturing company - continually communicate and exchange data. IF URGENT BASIS NEED THIS DOES NOT WORK, TAKES TOO MUCH TIME AND CUSTOMER CHOOSES ANOTHER VENDOR -- LOSS OF REVENUE, inconsistencies and duplication of data, lack of timely info leads to customer dissatisfaction, HR, material costs decentralized systems (data maintained locally at individual departments, don't have access to others), also centralized systems ERP- data maintained at central location, shared with various departments augmented analytics - ANS-- not replacing people with ai but augmenting people, creating citizen data scientists- sales manager can say what are biggest issues that will impact sales for next months - this can compile dif data sets, look at dif hypothesis and project and come up with conclusions otherwise would not have digital twin - ANS-- digital rep of real world things, connected, ie real people and things so ie airlines using to monitor real world assets and drive savings in maintenance and repair areas, link processes and people together to support smart cities empowered edge - ANS-- driving greater capabilities into edged env- cloud to the edge, using cloud architectures to manage capabilities to the edge, empower edge devices, greater compute capabilities, communicating to edge ie 5g immersive experiences - ANS-- how humans perceive digital world - is changing, ie remote assistance, companies use to work with remote assistance ie to get piece of equipment back online fast and save millions of dollars, also about how we interact with digital world, conversational ie chatbots, customer service agents smart spaces - ANS-- ex advanced digital workplace,s connected factories, smart cities privacy and ethics - ANS-- jsut because can do something with AI, should we? ie fitness tracking company - track where users were, used by miltary people in iraq so info about location of soldiers published on web. quantum computing - ANS-- imagine have giant library, reading millions of books at the same time - has potential to solve problems in ie material sciences that impossible to solve today