BU111 Study Guide - Final Guide: Information Technology, Root Mean Square, Market Impact
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BU111 Full Course Notes
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Document Summary
Elements: internet, information technologies, not limited to computers and information. Devices and software for creating, storing, exchanging and using information. Build & move assembly line, trains or planes. Information costly to develop but cheap to share. Impact of technology on the critical success factors. Technology standards enables compatibility of complementary goods. Solutions compatibility, alliances, incentives for complementary goods suppliers, build base. Lock-in size of investment (larger = greater resistance to switch) Switching costs cost of moving (higher = makes lock-in worse) Solutions lower switching costs, offer leap in performance. Target mainstream, high-margin customers with enhancements in product functionality. Starts in lower performance segment, improves rapidly; enters mainstream market. Organization structure and capabilities slow response time/ability and influence choices. Organizational processes weed out ideas that don"t address current customer needs. Focus on satisfying mainstream customers: ignore new technologies, move to higher margin opportunities.
