MIS_446_Exam_2__Study_Chart - Edited by Foxit Reader...

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Economic Models: How do we make money on this? Stockholder Analysis: Who benefts and who loses? Impact oF Intangibility: It’s a Digital / Intangible good; so what? Knowledge oF Economies: How does this relate to business / economic strategies? SoFtware business model disruption - Treat software as a service instead of as a product - “Crowdsourcing” - leverage power of open source software to build an army of developers who work for free because they’re excited about your product (Facebook, Google, etc. vs. Microsoft in the 1990s) - Business models are shifting from “pay for product and maintenance” to “get product for free and pay for it by clicking on ads.” - If you can’t beat them, buy them - lots of consolidation from 1990 to 2009. - Old models lose because they are being forced to change in order to stay competitive (think innovator’s dilemma). - If old models are able to adapt to the changing market, they can turn into winners--but they have to move fast to beat agile insurgents. - Insurgents win because they meet customer needs at low cost--compare Facebook and Google to Microsoft. - Insurgents lose if they can’t overcome old models’ superior resources (consider Microsoft’s enormous supply of cash: how can you possibly outlast them? You have to gain market share
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This note was uploaded on 04/06/2010 for the course MIS 446 at Pennsylvania State University, University Park.

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MIS_446_Exam_2__Study_Chart - Edited by Foxit Reader...

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