Managing the Digital Firm, Seventh Canadian Edition
List and describe alternative ways of locating information on the Web.
• Search engines are a facility on the Web that helps you find sites with the
information and/or services you want. Examples: Google, Yahoo!, and MSN.
Compare Web 2.0 and Web 3.0.
Web 2.0 refers to second-generation interactive Internet-based services that enable
people to collaborate, share information, and create new services online. Web 2.0 is
distinguished by technologies and services like cloud computing, software mashups
Web 3.0 focuses on developing techniques to make searching Web pages more
productive and meaningful for ordinary people. Web 3.0 is the promise of a future
Web where all digital information and all contacts can be woven together into a single
meaningful experience. Sometimes referred to as the semantic Web, Web 3.0 intends
4. What are the principal technologies and standards for wireless networking,
communications, and Internet access?
Define Bluetooth, WiFi, WiMax, and 3G and 4G networks.
Standards for wireless computer networks include Bluetooth (802.15) for small
personal-area networks (PANs), Wi-Fi (802.11) for local-area networks (LANs), and
WiMax (802.16) for metropolitan-area networks (MANs). Bluetooth can link up to
Wi-Fi is useful for creating wireless LANs and for providing wireless Internet access.
Its access range is limited to anywhere between 300 feet and three miles. Hotspots are
public access points individuals use to obtain high speed Internet access.
WiMax has a wireless access range of up to 31 miles and a data transfer rate of up to
75 Mbps, making it suitable for providing broadband Internet access in areas lacking
Describe the capabilities of each and for which types of applications each is best
suited.
a. Bluetooth: Access very limited; useful for creating small personal-area networks.
b. Wi-Fi: Access is limited to 30 to 50 meters; useful for creating small local area
networks
5. Why are RFID and wireless sensor networks (WSNs) valuable for business?
Define RFID, explain how it works and describe how it provides value to businesses.
Mobile wireless technology facilitates supply chain management by capturing data on
the movement of goods as these events take place and by providing detailed, immediate
Define WSNs, explain how they work and describe the kinds of applications that
use them.
Wireless sensor networks (WSNs) are networks of interconnected wireless devices
with some processing and radio-transmitting capability that are embedded into the
Discussion Questions
1. It has been said that within the next few years, smartphones will become the single
most important digital device we own. Discuss the implications of this statement.
Cell phones and smartphones are morphing into portable computing platforms that
allow users to perform some computing tasks that previously could only be
accomplished on a desktop computer. Smartphones enable digital capabilities like e-
2. Should all major retailing and manufacturing companies switch to RFID? Why
or why not?
RFID systems are complex and, in the past, expensive to implement. Now the cost
of RFID tags is approaching 10 cents per passive tag in the United States. As the
price decreases, RFID is starting to become cost-effective for some applications.
Businesses that will most likely benefit from RFID technology are those that
3. Compare Wi-Fi and high-speed cellular systems for accessing the Internet. What
are the advantages and disadvantages of each?
Wi-Fi allows users to access the Internet from numerous locations that could not
be covered by traditional wired Internet services. The technology reduces costs for
both personal users and businesses by providing a way to share peripheral devices
Managing the Digital Firm, Seventh Canadian Edition
Hands-On MIS Projects
Management Decision Problems
1. Floor tile company: Asked by major retailing customers to begin using RFID to
improve management of products. Use the Web to identify the cost of hardware,
software, and networking components for an RFID system for your company. What
factors should be considered? What are the key decisions that have to be made in
determining whether your firm should adopt this technology?
(The following information was copied from www.zebra.com, Nov 2010)
What is the estimated incremental cost for adopting RFID?
What is a ballpark figure for implementing RFID in a warehouse and distribution
process?
According to Forrester Research, a typical supplier that attempts to comply with a
How do smart label costs compare to conventional thermal/thermal-transfer printed
labels?
A smart label runs in the vicinity of about 50 cents per label versus about one cent for a
Managing the Digital Firm, Seventh Canadian Edition
127
What companies are currently developing RFID software? Is it all customized or are
there off-the-shelf solutions?
How will RFID integrate with EDI software?
EDI messages contain data about business transactions. While the format of an EDI
message may change to accommodate “new data” (such as an EPC by comparison with
Key decisions that a company needs to make when considering adopting RFID include:
• hardware and software costs
• Implementation costs
2. BestMed Medical Supplies Corporation: Sells products and equipment from over 700
different manufacturers to hospitals, health clinics, and medical offices. The company
employs 500 people at seven different locations. Management is considering adopting a
unified communications system. What factors should be considered? What are the key
decisions that have to be made in determining whether to adopt this technology? Use the
Web, if necessary, to find out more about unified communications and its costs.
(The following information was copied from www.networkworld.com, Nov 2010)
Managing the Digital Firm, Seventh Canadian Edition
At a more detailed level, Verizon Business suggested that in preparation for UC&C,
enterprises should:
• Invest in advanced IP networks since “UC&C starts with a capabilities-rich IP
infrastructure. . . [and] flexible and expansive IP networks serve as the foundation
• Create a comprehensive roadmap that is “far reaching and covers areas such as
technology and finances, as well as detailed deployment and implementation
plans.”
• Tackle security at the onset, with a design that integrates “seamlessly with a
business’ current network and leverage existing technology investments.”
Improving Decision Making: Using Spreadsheet Software to Evaluate Wireless
Services
Software skills: Spreadsheet formulas, formatting
Business skills: Analyzing telecommunications services and costs
You would like to equip your sales force of 35 based in Windsor, ON with mobile phones
that have capabilities for voice transmission, text messaging, and taking and sending
photos. the Web to select a wireless service provider that provides nationwide service as
Managing the Digital Firm, Seventh Canadian Edition
Achieving Operational Excellence: Using Web Search Engines for Business Research
Software Skills: Web search tools
Business skills: Researching new technologies
You want to learn more about ethanol as an alternative fuel for motor vehicles. Use the
following search engines to obtain that information: Yahoo!, Google, and MSN. If you
wish, try some other search engines as well. Compare the volume and quality of
information you find with each search tool. Which tool is the easiest to use? Which
produced the best results for your research? Why?
CASE STUDY: GOOGLE, APPLE, AND MICROSOFT BATTLE
FOR YOUR INTERNET EXPERIENCE
1. Compare the business models and areas of strength of Apple, Google, and
Microsoft.
Apple: Its business model focuses on centralized control of almost all aspects of its
hardware and software. It believes smartphones and tablets should have proprietary
Google: Its business model has always focused on the Internet and the Web. It began
as one of many search engines. It quickly ran away from the pack with its copyrighted
Managing the Digital Firm, Seventh Canadian Edition
Microsoft: Its business model originally focused on the desktop computer running the
Windows operating system and Office desktop productivity applications. The
2. Why is mobile computing so important to these three firms? Evaluate the mobile
platform offerings of each firm.
This case demonstrates the fundamental paradigm shift from primarily desktop PC
computing to mobile computing devices accessing services through the Internet that
is currently taking place. This environment is projected to be a $400 billion e-
Apple: by far the current leader in the number of apps users can download – over
Google: aggressively following the eyeballs. It has introduced the Android mobile
Microsoft: trying to partner with Apple and make Bing the default search engine on
3. What is the significance of mobile applications, app stores, and closed vs. open
app standards to the success or failure of mobile computing?
Apps greatly enrich the experience of using amobile device, and without them, the
predictions for the future of mobile Internet would not be nearly as bright. Whoever
creates the most appealing set of devices and applications will derive a significant
Managing the Digital Firm, Seventh Canadian Edition
However, app developers have complained that making money is too difficult. Apple
has blocked some apps from its mobile devices, namely Google’s voice mail
4. Which company and business model do you believe will prevail in this epic
struggle? Explain your answer.
Students should consider these principles in their answers:
• The size, complexity, and bureaucracy of organizations affect the ability of any
company to continue to innovate, grow, and expand its reach. (see Chapter 3) As
all three companies try to expand into mobile computing, their ability to “turn on
a dime” in the face of other competitors may be in serious jeopardy.
• Google currently has the major share of the Web-based advertising market,
5. What difference would it make a business or to an individual consumer if Apple,
Google, or Microsoft dominated the Internet experience? Explain your answer.
Right now Apple leads Google in the number of apps available to users. That gap is
closing quickly thanks to Google’s improvements of the Android operating system