BU111 Study Guide - Final Guide: Consumerism, Protection Mechanism, Paradigm Shift
Emily Gallant BU111 December 6th 2016
BU111 Exam Review Session
Four Pillars
• Pillars 1&2 – banks and alternate banks
→ Small businesses
• Pillar 3 – specialized lending/saving intermediaries
→ Medium sized businesses
• Pillar 4 – investment dealer
→ Large businesses
• Possible question: what pillar would you recommend to a specific business
What is Technology
• Advancement in equipment and its uses
• Includes information technology: managing and storing data for manipulation and insights
• Comes from human ingenuity
• Changes what we make, how we make it and how we sell/distribute it
Opportunities From Technology
• Products: innovation, uniqueness, value
• Management and organizational processes: instant access to info, improved customer
services
• Competitiveness: faster innovation cycles
• Communication and Collaboration: more chances to work with competitors and supply chain
partners
• Customization: if you can give customers exactly what they want to their expectations you
are able to better meet customer needs
Threats From Technology
• Extremely unpredictable: hard to forecast what your business is going to look like
• Disruptive technology:
• Harder to sustain advantages: once you come up with something new and innovative it can
easily be replaced causing firms to have to constantly scan
• Information overload: because you have so much information to collaborate and
communicate it is hard to tell what is good information to use
• Independence from workplace: harder to monitor employees and make sure they are doing
their work
Key Technology Concepts
• Complementary goods: would not be attracted to buying an iphone if there was not the app
store
• Technology standards: DVD players
• Installed base: how many people you have using your product (ex. nobody would use
Facebook if none of your friends were using Facebook)
• Lock-in: make it harder for your competitors to switch from you to another company
• Switching costs: higher switching costs make it less likely for consumers to switch
companies
• Solutions: make stuff compatibility, alliances/incentives, complementary goods
Sustaining vs. Disruptive Technology
• Sustaining Technologies
→ Marginal/incremental improvements to existing products
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Document Summary
Four pillars: pillars 1&2 banks and alternate banks. Small businesses: pillar 3 specialized lending/saving intermediaries. Medium sized businesses: pillar 4 investment dealer. Includes information technology: managing and storing data for manipulation and insights: possible question: what pillar would you recommend to a specific business. What is technology: advancement in equipment and its uses, comes from human ingenuity, changes what we make, how we make it and how we sell/distribute it. Information overload: because you have so much information to collaborate and communicate it is hard to tell what is good information to use. Independence from workplace: harder to monitor employees and make sure they are doing their work. Key technology concepts: complementary goods: would not be attracted to buying an iphone if there was not the app store, technology standards: dvd players. Installed base: how many people you have using your product (ex. nobody would use. Existing firms leverage scale and current abilities to win: disruptive technology: