See attached
APAon time
Forum Topic (Network Effects)
The goal of this forum is to refine our understanding of the concepts studied in this module by engaging in discussions and learning from different points of view. For “Discussion Forum 1”, answer the following question:
” Are one-sided and two-sided markets equally beneficial for consumers? Explain with examples based on network effects.”
References should not be counted in the final word count of the post, you can use any format (MLA / APA / etc.) for the references if included)
minimum of 3 scholarly sources
This assignment will be graded as follows –
1) Breadth of the post: Meet word limit for the initial post (at least 250 words) (10 points)
2) Depth of the post: Apply at least two concepts covered in this module in the post. Must be clearly stated and highlighted (use either
bold
/
underline
/ bullet points or headings) in the post (5 x 2 = 10 points)
3) Specificity of the post : Clearly identify specific example(s) for the discussion and it must be highlighted (use either bold / underline / bullet points or headings) in the post (5 points)
4) Interactiveness of the forum: Respond to at least 3 posts (4 X 3 = 12 points) **
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
http://www.lsus.edu/
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
http://www.lsus.edu/
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
http://www.lsus.edu/
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
http://www.lsus.edu/
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
http://www.lsus.edu/
Next week: Module 3 / Week 3
IS Component (Software)
www.lsus.edu College of Business
http://www.lsus.edu/
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