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CC2 – Big Data:

Data can come as:

• Digital
• Textual
• Visual
• Aural
• Other sensory (touch, smell)

Big data:

• Broad term for large sets of data. Difficult to analyze with traditional processing applications
• 3 V’s

• Volume – the amount of data
• Variety – the sources of data
• Velocity – the speed with which it is generated

Data exhaust:

• Much produced data is thrown away
• Ex: air traffic measures weather patterns, bird patterns. Valuable to scientists

Benefits of big data:

• Small/little data is expensive

• Ex: credit card transactions – need to be precise

• Big data is nearly free, considering the volume

• Ex: GPS system – can be approx.

• Small data can be too costly, too slow, and unfeasible
• Big data can tell you what, but not always why

• Ex: Walmart data shows spike of Pop Tart sales during hurricane predictions – why? Who cares.

Who owns the big data?

• Zuckerberg (Facebook), Brin (Google), Bezos (Amazon) – big data barons

CC3 – Digital Products:

Digital products are profitable because:

• No inventory
• Unlimited supply
• Easy to update/change
• Distribution channel is always open

Traditional commerce: raw material – production – finished goods – warehouse – retailer – transaction – customer

E-commerce (physical goods): raw materials – production – finished goods – warehouse – transaction – customer

E-commerce (digital): raw materials – production – finished goods (digital storage) – digital distribution channel – transaction/customer

CC4 – B2B Strategy:

B2B is the biggest market – estimate $8 trillion in the US (B2B retail)

They compete on all the same aspects:

• Price
• Features
• Availability
• All the value proposition stuff

Business models:

• Standard B2B – petGRO 2B
• Standard B2C – petGRO 2C
• Concentrator B2B2C (Amazon) – B2 petGRO 2C
• Broker B2Bx2C (eBay, Kijiji) – B2C facilitated by petGRO

CC5 – Enterprise Systems:

Systems that support end-to-end processes. Key driver is to be able to effectively manage a business process from beginning to end.

Most common is a functional structure:

• Divide organization into functions (or departments)
• Leads to vertical (or functional) silos

The silo effect:

• Different functional areas come to perform their steps in process isolation
• Complete their part, hand it to the next person, and then move on
• Focusing on their specific tasks made them lose sight of the “big picture”
• View a company from a process perspective requires employees to “think sideways”

Advantages of having an ES system:

• Streamlined data handling – higher accuracy, faster data handling internally, fewer data entry errors
• Better data sharing (via common database) – more efficient operations and cost reductions
• Having integrated IS – cooperation between functional areas
• Improved management reporting – better top management control
• Leads employees to thinking about corporate goals – not merely functional goals
• One IS for the entire company – helps overcome effects of geographical dispersion in companies with far-flung operations
• ES replaces old legacy system – no longer must be maintained, cost savings, less software needs to be written

Disadvantages:

• High cost initially
• Potentially long implementation times – requires great planning and management attention
• Need to hire consultants to help implement – loss of control + expensive
• ES can be somewhat configured to fit the company’s needs but the company must adopt at least some practices demanded by the ES
• Employees must be aware that errors made in one module will quickly ripple through the integrated system, and affect the use of other modules – training and experience is needed to properly adopt the system

Implementation problems:

• Some executives naively hope ES will cure fundamental business problems
• Some executives and IT managers don’t take enough time for proper analysis and planning for implementation
• Some executives skimp on education and proper training
• Sometimes the ownership of the implementation project is not given to the employees who will use the system
• Top executive support is not always given
• The organizational change process is not managed well

CC6 – CRM:

Helps a company manage:

• Customer encounters
• Marketing and advertising
• Sales
• Customer service after the sale
• Customer retention programs

Benefits:

• Improved customer satisfaction
• Increased customer retention
• Reduced operating costs
• Ability to meet customer demand

CRM software automates and integrates the function of sales, marketing and service