BTE 210 Midterm: BTE EXAM ONE STUDY GUIDE
7 May 2018
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1
BTE EXAM ONE STUDY GUIDE
CHAPTER ONE
SOFTWARE DISRUPTORS
• Two scenarios
1. Industries where software disrupted the previous market-leading
companies
2. Industries where a new company/companies used software to
achieve a competitive advantage
• Book Industry
o Borders 2001: sold online business to Amazon because believed
online book sales were nonstrategic and unimportant
▪ filed for bankruptcy 10 years later
o B&N in 2012 entered into a partnership with Microsoft to spin off the
Nook and managed to stay afloat
o Now Aazo is orld’s largest ook seller
▪ Core capability is software engine
• Music Industry
o Spotify, iTunes, Pandora
• Video Industry
o Blockbuster lead until it was disrupted by Netflix, a software
company
o Declared bankruptcy Feb 2011
o Netflix had largest subscriber base of any video service (33M) in mid
2013
• Software Industry
o Incumbent software (Oracle, Microsoft, etc.) increasingly threatened
by software-as-a-service products and Android
• Videogame industry
o Fastest growing entertainment companies
• Photography industry
o Disrupted by software
o All phones have a software powered camera
o Sharing (think Instagram)
o Kodak declared bankruptcy in 2012
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2
• Marketing industry
o Largest direct marketing companies include Facebook, google,
foursquare, etc.
o All disrupted retail marketing industry
Disrupted physical world industries
• Automobile industry
o In modern cars, software runs engines, safety features, entertains
passengers, Wi-Fi, etc.
• Logistics industry
o Leading real-world retailer, Walmart, uses software to become
dominant
• Postal industry
o FedEx employs 100s of developers who build and deploy software
products for customer sites
o Retail industry
▪ ret the rua – borrow designer clothes and return them
• education
o online college is much cheaper
What We Learned from This
• Information technology (IT): any computer based tool that people use to
work with information and to support the information and information
processing needs of an organization
• Information system (IS): collects, processes, stores, analyzes, and
disseminates information for a specific purpose
o Purpose is getting the right info to the right people, at the right time,
in the right amount, and right format
• Small business owners do not need to be IT experts to be successful
o Core competency
o Still must effectively use IT
WARBY PARKER CASE
• Online eyewear retailer
• Glasses market was an oligopoly
• Luxottica (owns many brans like ray-ban, sunglasses hut, etc) created
illusio of hoie he it as reall a oopol
• Warby Parker uses same materials and factories as Luxottica but sells at
loer prie eause it does’t pa liesig fees
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3
• Also does’t hae to deal ith retailers eause arkets ad sells diretl
to customers
• Competitor is Ditto: makes a 3D scan of your face and lets you try on
glasses
WHY SHOULD I STUDY INFORMATION SYSTEMS?
• We are Homo Conexus
• We practice continuous computing
o Always interacting with our laptops, smartphones, etc.
The Informed User – You!
• Informed user: a person knowledgeable about IS and IT
• Benefits:
o Benefit more from organizations IT applications because you will
understand what is behind those applications
o Enhance quality of IT applications with your input
o Can recommend or even select IT applications for your organization
o Keep you abreast of new IT and developing ones
o Stay on top of things and get latest tech
o Become more productive
IT Offers Career Opportunities
• Substantial demand for jobs
• Chief information officer (CIO)
o In charge of the IS function
o Works with CEO and CFO
o Most rise from IS department but a growing number are coming up
through the ranks in the business units
o Media salar for oputer ad I“ aagers is appro. 5,
Managing Information Resources
• Difficult and complex task
1. IS systems have enormous strategic value to organizations
▪ Sometimes cannot function if IS not working
▪ Called eig hostage to I“
2. Very expensive to acquire, operate, and maintain
3. Evolution of the management information systems (IMS) function
within the organization
▪ EARLY 95’“: MI“ departet oed the ol oputig
resource in the organization, the mainframe
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Document Summary
2: marketing industry, largest direct marketing companies include facebook, google, foursquare, etc, all disrupted retail marketing industry. 3: also does(cid:374)"t ha(cid:448)e to deal (cid:449)ith retailers (cid:271)e(cid:272)ause (cid:373)arkets a(cid:374)d sells dire(cid:272)tl(cid:455) to customers, competitor is ditto: makes a 3d scan of your face and lets you try on glasses. Why should i study information systems: we are homo conexus, we practice continuous computing, always interacting with our laptops, smartphones, etc. Support for organizational employees: clerical workers: bookkeepers, secretaries insurance claim processors, etc. Importance of is to society: it affects our quality of life, expand 9-5 at a central location to 24hrs at any location, provide flexibility and improve quality of leisure time, however, it can place employees on constant call. Case study elon musk"s spacex: elon co-founded paypal, founded spacex 2002, aka space exploration technologies, goals were to make spaceflight routine and affordable and to make humans a multi-planet species, low prices.
