BMGT301 Mid-term Review
Prof. Gordon Gao, Oct 2010
1. Fundamentals of Information Goods (C2-C3)
Definition of information goods/digital goods. The 4 major properties of information goods.
Definition of experience goods, public goods. 4 pri
The digital platform
Platform business subset of components and rules employed by users in most of
One-sided network VS two-sided networks
o One-sided networks: Transaction partners alternate roles, e.g., emailers send & receive, trader
1. You should have a sense of what are field, record, table and database after the
lab session and Problem Set.
1.i. Fielda column in a database table. Columns represent each category
of data contained in a record
1.ii. Recorda row in a databa
Disruptive at two levels
Product levelthe new technology is superior to old ones
o Ex. Steam Boat, Flash Drive
Business model levelthe existing business model is not compatible with new
1. Rational ways of thinking
a) Expected valueBased off the decision tree and the possibilities of the
Expected value would be 190,000= .5X400,000 + .3X100,000 + .
b) Decision treeit lays out all of the possible
The digital enterprise
1. IT in Finance
1.i. Capital One. What is the secret of Capital Ones success?
1.i.a. Capital one was able to find success because of their
Information Based Strategy
1.i.b. They were able to steal away other banks most profitable