.Due 1/26

MBA 703 Management Information Systems

- Dr. Harshali Sadhya

College of Business

Module 2 IS Component (Hardware)

Read the following chapters –

ISBB Chapter 2: Hardware

ISMG Chapter 5: Moore’s Law: Fast, Cheap Computing and What It Means for the Manager

ISMG Chapter 6: Understanding Network Effects

www.lsus.edu College of Business

ISBB Chapter 2 What is Hardware?

• Hardware: Physical parts of computing devices – those that you can touch • Digital devices • Binary – bits and bytes • CPU, motherboard • RAM VS hard disk and SSD’s • Input vs output devices • IoT • Portable computing • Commoditization of the PC

www.lsus.edu College of Business

ISMG Chapter 5 Moore’s Law

• “Chip performance per dollar doubles every eighteen months” • Microprocessor is the brain of a computing device • Five waves of computing • Fifth wave – IoT, smart devices • Limits of Moore’s Law – size, heat and power • Solutions – multicore processors and stacked or three-dimensional semiconductors • Supercomputers, grid, quantum and cloud computing • Drawbacks of the law – massive piles of e-waste

www.lsus.edu College of Business

ISMG Chapter 6 Network effects

• “Network effects = “Metcalfe’s Law” / “Network Externalities”

• “The value of a product or service increases as the number of users grows” • The value derived from network effects comes from three sources: exchange, staying power,

and complementary benefits • One-sided vs two-sided markets • Same-side vs cross-side benefits • Fierce competition, monopoly (winner-takes-all), oligopoly (market dominated by small

number of powerful sellers) • Technological leapfrogging in such markets is difficult • Does network effects only apply to tech products or services? • Does it suppress innovation?

www.lsus.edu College of Business

ISMG Chapter 6 Strategies for Network Effects • Move early • Subsidize adoption • Leverage viral promotion • Expand by redefining the market • Alliances and partnerships • Establish distribution channels • Seed the market • Encourage the development of complementary goods • Leverage backward compatibility • Rivals: Be compatible with the leading networks • Incumbents: Close off rival access and constantly innovate • Large, Well-Known Followers: Preannouncements

www.lsus.edu College of Business

Next week: Module 3 / Week 3

IS Component (Software)

www.lsus.edu College of Business