ISDS ch 6, 7, 8

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Terms in this set (39)
Systemic effectThe notion that the different components of a system are interdependent and that change in one component affects all other components of the system.Added valueThat portion of the total value created that would be lost if the firm did not partake in the exchange.Competitive advantageThe condition where a firm engages in a unique transformation process and has been able to distinguish its offerings from those of competitors. When a firm has achieved a position of competitive advantage, it is able to make above average profits.Customer willingness to payThe maximum amount of money the firm's customers are willing to spend in order to obtain the firm's product.Firm costThe actual amount of money the firm disbursed to acquire the resources needed to create its product or service.Supplier opportunity costThe minimum amount of money suppliers are willing to accept to provide the firm with the needed resources.Transformation processThe set of activities the company engages in to convert inputs purchased from suppliers, into outputs to be sold to customers.Total value createdThe difference between customer willingness to pay and supplier opportunity cost.Value appropriationThe process by which the total value created in the transaction is split among all the entities who contributed to creating it (i.e., suppliers, the firm, and the customer).Value creationThe process by which new economic value is generated through a transformation process.Advertisement SupportIs a revenue model where the firm's content or services are made available for free to attract a large audience. The firm monetizes by selling "access to its audience" to interested advertisers.Augmented realityA field of computing concerned with superimposing an information layer on a real image, thus providing users with a simultaneous view of real objects and contextual information about those objects.Brick and MortarA term used to refer to "traditional" organizations, those firms that have physical operations and don't provide their services through the Internet.Bricks and ClicksA term used to refer to organizations that have hybrid operations involving both physical and online operations.Business-to-Business (B2B)A form of electronic commerce involving a business entity on both sides of the transaction.Business-to-Consumer (B2C)A form of electronic commerce involving a for-profit organization on one side and the end consumer on the other side of the transaction.Consumer-to-Business (C2B)A form of electronic commerce enabling individuals to transact with business organizations not as buyers of goods and services but as suppliers.Consumer-to-Consumer (C2C)A form of electronic commerce enabling individual consumers to interact and transact directly.eGovernmentA form of electronic commerce involving legislative and administrative institutions in the transaction. .Electronic businessThe digital enablement of internal organizational business processes and operations.Electronic commerceThe process of distributing, buying, selling, marketing, and servicing products and services over computer networks such as the Internet.reemiumIs a revenue model where firms give away its product or service for free. The firm monetizes by offering premium services or enhanced versions of the product for a fee.Internet of Things (IoT)Interconnectivity of physical smart objects, sensors, or other devices, bringing the benefits of the Internet into the physical space.Mobile commerce (or M-Commerce, mCommerce)A term used to refer to the ability to complete commercial transactions using mobile devices, such as smartphones and tablets.Mobile platformA platform is an underlying computer system on which application programs can run. With the term mobile platform, therefore, we refer to the hardware/operating systems combinations that enable mobile computing.Pay for ServiceIs a revenue model where firms offer a product or service for sale, and are compensated like a traditional store or service providers.Pure PlayA term used to refer to organizations that have no physical stores and provide their services exclusively through the Internet.Revenue ModelSpecifies how the firm intends to draw proceeds from its value proposition—in short, how it plans to make money.SubscriptionIs a revenue model where customers pay based on access rather than usage. Customers pay for the right to access the content and can use as much of the service as they need.