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Chapter 3

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imissyou419's version from 2017-03-01 22:08

Section

Question Answer
Productivity paradoxlack of evidence of an increase in worker productivity associated with massive increase in investment in IT
Business valuetangible benefits for organizations through either more efficient use of resources or more effective delivery of their services to customers
Responses to productivity paradox (value of IT investment)1. through productivity (IT allows a company to create more and better output from the same input and create them faster than before the technology was in place, this investment makes firm more efficient & effective),
2. through structure of competition (IT alter the way corporations compete e.g. Netflix vs. Blockbuster),
3. through benefits to the end customer (IT makes processes more efficient and changes the nature of competition, with increased competition, reduction of costs associated with new processes passed on to final customer who sees cheaper and better goods and sources)
Canadian Coalition for Tomorrow's ICT skills (CCICT)Founded by Bell Canada in 2007, created an industry led-group of Canadian employers, education institutions, industries that could ensure the ability of Canadian organizations to hire ICT professionals for the 21 century workforce (programs combining tech + business training)
non-profit organization created to support the development of skills for the information and computing technology industry
Business Technology Management (BTM)a category of skills focused on the ability to effectively innovate using information technology in organizations
Skills Framework for the Information Age (SFIA)a set of skills thought to be useful for those employees focused on developing and maintaining information technology
CareerMashdeveloped by CCICT, provide more specific info on jobs within the ICT industry
Increasing efficiency vs. increasing effectivenessincreasing efficiency = businesses processes can be accomplished more quickly or with fewer resources/facilities,
increasing effectiveness = company considers offering either new or improved goods or sources that the customer values (doing right things)
Value chain- network of activities that improve the effectiveness (or value) of a good or service
- make up of at least 1 or many business processes
- have directions -> upstream & downstream
Margindifference between price the customer is willing to pay and cost the company incurs in moving the goods or services through the value chain; greater the margin => greater profit
Primary activitiesactivities in which value is added directly to the product, each of the primary activities add value for the customer (5 primary activities = inbound logistic, operations, outbound logistic, marketing and sales, service)
Inbound logisticreceiving and storing inventory
Operationsusing input to create or generate the final product
Outbound logisticretrieving and distributing the product or service to the customer
Marketing and salesconvincing the customer and enabling the purchase of the good or service
Servicesupporting the customers use of product or service
Support activitiesactivities that don't add value directly to product, support the primary activities, add value only indirectly
Porter's 5 forces modelused to access an industry structure,
5 competitive forces determine industry profitability = 1. bargaining power of customers, 2. bargaining power of suppliers, 3. threat of substitutions, 4. threat of new entrants, 5. rivalry among existing firms
Porter's 4 competitive strategies model1. lower cost across the industry, 2. lower cost within an industry segment, 3. better product/service across the industry, 4. better product/service within an industry segment
Sustaining technologieschanges in tech that maintains the rate of improvement in customer value
Disruptive technologiesintroduces a new packaging of attributes to accepted mainstream products
Diffusion of innovationprocess by which an innovation is communicated through certain channels over time among the members of a social system;
5 stages
(knowledge = when you first hear about the innovation but lack specific info about it,
persuasion = becoming interested in the innovation and finding out more about it,
decision = consider pros vs cons, make decision to adopt or reject it,
implementation = use innovation and figure out if continue using it or look for an even better way,
confirmation = use innovation to its full potential)
Competitive advantage via products and services1. creating new products or services, 2. enhancing existing products or services, 3. differentiating their products and services from their competiters
Competitive advantage via business processes1. switching costs (business strategy that retain customer by making it difficult or expensive for them to switch to another product),
2. make it easy for them to connect and work with the organization,
3. creating entry barrier that makes it difficult and expensive for new competition to enter the market,
4. establishing an alliance with other organizations (create standards, promote product awareness and needs, develop market size, reduce costs),
5. reduce costs (enable organization to reduce prices / increase profitability)
memorize

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