Today we discussed about cybercrime. Cybercrime is a term used broadly to describe activity in which computers or networks are a tool, a target, or a place of criminal activity. A way to prevent cybercrime is to know how the criminal work.
There is two type of cybercrime. First one is to get profit out of it, the second one is only to cause disruption. Common way to get profit is from ATM and credit card number. ATM is quite risky because there is camera recording person using the ATM machine. while the credit card user can be tracked. One way to acquire credit card number is to blackmail the manager of a big company. Find a manager who gamble and lost a lot.
Disruption caused must be irreversible like crashing of a plane by disruption the traffic control system. Steal secret information and publish it. If the disruption is reversible such as disrupting a bank, then the bank can rolled back to previous version before the bank being hacked and then use the backup database. The bank can continue the usual process.
At the end of the seminar, the professor gave us a game. There is terrorist, banker, police, port, travel. Banker, police, port and travel are given resources to be protected. The game is played twice. The first time everyone make decision by themselves. Results in overlapping of protection on resources hence the terrorist succeed in their attack. The second game is played by coordinated defence. But the result is still the same, the terrorist also succeeded. We concluded that defence is more difficult than attacking, because too many things to defend with limited resources. The chance for terrorist to succeed is even better with the existence of intelligence of terrorist.
Friday, March 30, 2007
Friday, March 23, 2007
Business Plan
At this session the prof talk much about failure of a small business. Mainly about what causes failure of a small business and what can be done to avoid that failure.
What is small business? Small business is usually privately owned and has less than 100 employees. Characteristic of small business:
1. The owner usually is the manager of the company, unlike big company which pay a manager to deal with daily events.
2. The liability of the owner is unlimited. This means if the business fail and has debt, the private property of the owner has to be used to pay the debt (e.g. car, house)
Survey proofs that the survival rates of small business is not very good. The reasons for poor survival rates are:
1. Lack of experience (most of the people who start a small business is the retired people who have extra money)
2. Insufficient capital (Since their business is small, it is difficult for them to get credit from the bank)
3. Their business is not located at strategic place.
4. Unexpected growth (When their business expands, they have to hire people. Lack of managerial skill, they can't deal with the subordinates)
How to avoid business failure? Develop Business Plan.
Derive accurate financial information about the business. Estimate the overhead and operational expenses. Predict sales so that the time for break even can be estimated. Make sure the time requirement is not underestimated. Then carry out TOWS(threat, opportunity, weakness, strength) analysis to identify the position of the business in market.
The next thing is to determine the product, place, price and how to promote our new business.
Besides for our self guide(allocate resources, timeline), business plan must also explain why should investor give us the money.
Below are some tips for writing up business plan:
The executive is a very important part, the investor will first read this part, if it is unattractive, he won't go through the rest of the business plan. A good executive summary must contain the business' value proposition, the main objectives, revenue model and briefly describe what is needed(how much fund). The competitve advantage and the member strengths. It must also include the projected income and when the company will break even.
What is small business? Small business is usually privately owned and has less than 100 employees. Characteristic of small business:
1. The owner usually is the manager of the company, unlike big company which pay a manager to deal with daily events.
2. The liability of the owner is unlimited. This means if the business fail and has debt, the private property of the owner has to be used to pay the debt (e.g. car, house)
Survey proofs that the survival rates of small business is not very good. The reasons for poor survival rates are:
1. Lack of experience (most of the people who start a small business is the retired people who have extra money)
2. Insufficient capital (Since their business is small, it is difficult for them to get credit from the bank)
3. Their business is not located at strategic place.
4. Unexpected growth (When their business expands, they have to hire people. Lack of managerial skill, they can't deal with the subordinates)
How to avoid business failure? Develop Business Plan.
Derive accurate financial information about the business. Estimate the overhead and operational expenses. Predict sales so that the time for break even can be estimated. Make sure the time requirement is not underestimated. Then carry out TOWS(threat, opportunity, weakness, strength) analysis to identify the position of the business in market.
The next thing is to determine the product, place, price and how to promote our new business.
Besides for our self guide(allocate resources, timeline), business plan must also explain why should investor give us the money.
Below are some tips for writing up business plan:
The executive is a very important part, the investor will first read this part, if it is unattractive, he won't go through the rest of the business plan. A good executive summary must contain the business' value proposition, the main objectives, revenue model and briefly describe what is needed(how much fund). The competitve advantage and the member strengths. It must also include the projected income and when the company will break even.
Sunday, March 18, 2007
Week 9: Scenario Analysis
Scenario analysis is a very powerful tool to deal with uncertainty which is very common in our daily lives by considering the alternative outcomes. And is very important in decision making. A scenario is a hypothetical sequence of events constructed on uncertainty outcomes.
When there is new technology or new policy, a company need to forecast the outcome. What will other company do, will customer preferences changes, will structural changes occur, if there is structural changes what will be outcome. In that case change in strategy is needed.
The first step in scenario analysis we need to identify the stakeholders, all the parties that will be affected by the new policy(customer, producer, worker, competitor, investor). Then try to predict what will be the decisions of all these stakeholders. Then the permutation of interactions of all the decisions can be reduced to a few reasonable sets. It is also needed to interview the stakeholders, asking their opinion and what they will do when encountering such problem.
Then start to build the scenario, it is best to have 3 or 4 dimensions. Each dimension has only two states i.e. positive and negative. e.g. to deal with free wireless, the dimensions to be used could be:
1. the capability of consumers.
2. the law and regulations.
3. compliment service
Then develop the competing strategy. Then use the game theory (what will happen if this strategy is applied). Validate all strategies. Choose the most robust strategies.
When there is new technology or new policy, a company need to forecast the outcome. What will other company do, will customer preferences changes, will structural changes occur, if there is structural changes what will be outcome. In that case change in strategy is needed.
The first step in scenario analysis we need to identify the stakeholders, all the parties that will be affected by the new policy(customer, producer, worker, competitor, investor). Then try to predict what will be the decisions of all these stakeholders. Then the permutation of interactions of all the decisions can be reduced to a few reasonable sets. It is also needed to interview the stakeholders, asking their opinion and what they will do when encountering such problem.
Then start to build the scenario, it is best to have 3 or 4 dimensions. Each dimension has only two states i.e. positive and negative. e.g. to deal with free wireless, the dimensions to be used could be:
1. the capability of consumers.
2. the law and regulations.
3. compliment service
Then develop the competing strategy. Then use the game theory (what will happen if this strategy is applied). Validate all strategies. Choose the most robust strategies.
Thursday, March 8, 2007
Week 8: Design Issues
In the old days, to do experiment to develop an equipment have to use the real equipment. Now, a simulator can be created to simulate the work of the real equipment, and the result can be quite the same as the real one. It is a great advantage cost-wise. For training of pilot simulator not only reduces cost (fuel cost) but also reduces the risk of accident.
The advantage is enhanced by the availability of the program in variety of user interface such as program used in computer can also be used in handphone, PDA.
The code that has been generated for a function need to be communicated to the device that can carry out the function. In order for the communication to work, standard had to be established. In more advanced technology today, the standard created has to be more strict like the XHTML compared to HTML. Example of standard: in computer press alt+F4 usually close a program.
Iterative development is a way of development that build a model, test is and evaluate it. The process is repeated until the result is satisfying. The model build can be smaller than the intended thing, therefore save cost before building the real thing.
Designing a new model is not only designing job by engineer. It involved other task, such as marketing survey, promotion in order for the new innovation to hit the market. Marketing survey is needed, so that the innovation meet the need of customer. A new innovation with very advanced technology that already spent a lot of research fund may not have a good selling if what the technology can do doesnt meet the need of the customer. e.g. fuel cell car is very advanced technology with high efficiency and low pollution, but still people prefer gasoline car since it is cheaper than fuel cell car. Because most people don't care about the pollution generated by their car until there is a law that prohibit the use of gasoline car.
After the technology is developed, the next thing to do is promotion. People have to know what the technology can do, what is its advantage. Like the i-phone, even before the launching of the product, many people want to buy it because they have good introduction of their product.
The advantage is enhanced by the availability of the program in variety of user interface such as program used in computer can also be used in handphone, PDA.
The code that has been generated for a function need to be communicated to the device that can carry out the function. In order for the communication to work, standard had to be established. In more advanced technology today, the standard created has to be more strict like the XHTML compared to HTML. Example of standard: in computer press alt+F4 usually close a program.
Iterative development is a way of development that build a model, test is and evaluate it. The process is repeated until the result is satisfying. The model build can be smaller than the intended thing, therefore save cost before building the real thing.
Designing a new model is not only designing job by engineer. It involved other task, such as marketing survey, promotion in order for the new innovation to hit the market. Marketing survey is needed, so that the innovation meet the need of customer. A new innovation with very advanced technology that already spent a lot of research fund may not have a good selling if what the technology can do doesnt meet the need of the customer. e.g. fuel cell car is very advanced technology with high efficiency and low pollution, but still people prefer gasoline car since it is cheaper than fuel cell car. Because most people don't care about the pollution generated by their car until there is a law that prohibit the use of gasoline car.
After the technology is developed, the next thing to do is promotion. People have to know what the technology can do, what is its advantage. Like the i-phone, even before the launching of the product, many people want to buy it because they have good introduction of their product.
Monday, February 26, 2007
Week 7: Podcast
Podcast is considered a new technology( I only heard of podcast after I registered for MB362 =p) introduced in 2004 that has a great potential to be developed. Podcast is radio show format with short duration of 2 or 3 minutes. Podcast use the web2.0 paradigm where everyone can contribute.
What makes podcast desireable?
1. Like radio, you can listen to it while doing something else. Podcast contents can be news, documentary, sports.
2. It is time shifted component. It can be downloaded from the internet, and can be listened at convenient time.
3. Narrowcasted audience (the long tail). Not every show has many audience but collectively can make up a market.
4. Detachable from computer. Can be listened without computer, can be downloaded into other devices such as PSP, MP3 player.
5. Alternative and unregulated content.
Podcast -> potential business to be developed
Today many businesses are podcasting including General motors, The Walt Disney Company.
Podcasting can be used to give motivation, lectures, instructions to the employers. It's useful because the motivation the employee give at a particular time may not needed by every employer at that time. So the employer can listen to the motivation record at his convenient time.
Besides for internal use in a company podcasting also can be used to generate revenue. The podcasting company can charge fee per view or by subscription or can use ads. Since podcast is narrowcasted, the sponsor also has to be choosy on the show they wanted to sponsor. Such as a company that sell baby product won't sponsor a cricket match. A cricket match is mostly watch by youngster so the sponsor could be beer company.
Podcast could be used to cast presentation of a product to prospective buyer. Other usage in business is to present a solution of a problem or present a new project to the manager of company.
What makes podcast desireable?
1. Like radio, you can listen to it while doing something else. Podcast contents can be news, documentary, sports.
2. It is time shifted component. It can be downloaded from the internet, and can be listened at convenient time.
3. Narrowcasted audience (the long tail). Not every show has many audience but collectively can make up a market.
4. Detachable from computer. Can be listened without computer, can be downloaded into other devices such as PSP, MP3 player.
5. Alternative and unregulated content.
Podcast -> potential business to be developed
Today many businesses are podcasting including General motors, The Walt Disney Company.
Podcasting can be used to give motivation, lectures, instructions to the employers. It's useful because the motivation the employee give at a particular time may not needed by every employer at that time. So the employer can listen to the motivation record at his convenient time.
Besides for internal use in a company podcasting also can be used to generate revenue. The podcasting company can charge fee per view or by subscription or can use ads. Since podcast is narrowcasted, the sponsor also has to be choosy on the show they wanted to sponsor. Such as a company that sell baby product won't sponsor a cricket match. A cricket match is mostly watch by youngster so the sponsor could be beer company.
Podcast could be used to cast presentation of a product to prospective buyer. Other usage in business is to present a solution of a problem or present a new project to the manager of company.
Friday, February 16, 2007
Week 6: Case Analysis
This week the prof lead the discussion about case study. Why do we need case study in management? Why not just study the textbook? The reason is that the theory in text book is only theory, may not always be true. Unlike mathematics, 1+1 always equal 2, in management, the step taken to prevent a problem may not always have the same outcome, sometimes may be good outcome, other time may turn out bad. Case study is research strategy that will generate hypothesis. There are 3 methodology in doing case study:
1. exploratory -> fieldwork, and data collection may be undertaken prior to definition of the research questions and hypotheses. This type of study has been considered as a prelude to some social research. However, the framework of the study must be created ahead of time. Pilot projects are very useful in determining the final protocols that will be used. Survey questions may be dropped or added based on the outcome of the pilot study. Selecting cases is a difficult process, but the literature provides guidance in this area. It is recommended that the selection offers the opportunity to maximize what can be learned, knowing that time is limited. Hence the cases that are selected should be easy and willing subjects. A good instrumental case does not have to defend its typicality.
2. explanatory ->In very complex and multivariate cases, the analysis can make use of pattern-matching techniques. A study is conducted to examine the reason why some research findings get into practical use. Funded research project is used as the unit of analysis, where the topic was constant but the project varied. The utilization outcomes were explained by three rival theories: a knowledge-driven theory, a problem-solving theory, and a social-interaction theory.
3. descriptive ->Descriptive cases require that the investigator begin with a descriptive theory, or face the possibility that problems will occur during the project. This methodology is used to study special education, using a pattern-matching procedure. Several states were studied and the data about each state's activities were compared to another, with idealized theoretic patterns. Thus what is implied in this type of study is the formation of hypotheses of cause-effect relationships. Hence the descriptive theory must cover the depth and scope of the case under study. The selection of cases and the unit of analysis is developed in the same manner as the other types of case studies.
There are several different approaches in case study:
1. value chain or process flow analysis
2. value system analysis
3. competitive analysis
4. market analysis
5. policy analysis
6. financial analysis
7. organizational analysis
Each method will generate different hypothesis. e.g. value chain analysis definitely will generate hypothesis related to value chain
Better value chain will give better bargaining power in buying from suppliers and selling to buyers. If the product has high quality, it can be sold to buyers at higher price. If the company have a big order to the supplier they can get the supply at lower price.
In competitive strategy approach. The actions taken by the competitors will determine our actions. A same product of competitor will make the buyers have other alternatives hence the selling power is smaller
1. exploratory -> fieldwork, and data collection may be undertaken prior to definition of the research questions and hypotheses. This type of study has been considered as a prelude to some social research. However, the framework of the study must be created ahead of time. Pilot projects are very useful in determining the final protocols that will be used. Survey questions may be dropped or added based on the outcome of the pilot study. Selecting cases is a difficult process, but the literature provides guidance in this area. It is recommended that the selection offers the opportunity to maximize what can be learned, knowing that time is limited. Hence the cases that are selected should be easy and willing subjects. A good instrumental case does not have to defend its typicality.
2. explanatory ->In very complex and multivariate cases, the analysis can make use of pattern-matching techniques. A study is conducted to examine the reason why some research findings get into practical use. Funded research project is used as the unit of analysis, where the topic was constant but the project varied. The utilization outcomes were explained by three rival theories: a knowledge-driven theory, a problem-solving theory, and a social-interaction theory.
3. descriptive ->Descriptive cases require that the investigator begin with a descriptive theory, or face the possibility that problems will occur during the project. This methodology is used to study special education, using a pattern-matching procedure. Several states were studied and the data about each state's activities were compared to another, with idealized theoretic patterns. Thus what is implied in this type of study is the formation of hypotheses of cause-effect relationships. Hence the descriptive theory must cover the depth and scope of the case under study. The selection of cases and the unit of analysis is developed in the same manner as the other types of case studies.
There are several different approaches in case study:
1. value chain or process flow analysis
2. value system analysis
3. competitive analysis
4. market analysis
5. policy analysis
6. financial analysis
7. organizational analysis
Each method will generate different hypothesis. e.g. value chain analysis definitely will generate hypothesis related to value chain
Better value chain will give better bargaining power in buying from suppliers and selling to buyers. If the product has high quality, it can be sold to buyers at higher price. If the company have a big order to the supplier they can get the supply at lower price.
In competitive strategy approach. The actions taken by the competitors will determine our actions. A same product of competitor will make the buyers have other alternatives hence the selling power is smaller
Friday, February 9, 2007
Week 5: Do we need new rules?standards?
larger image
What can you see on the images besides. hmm...it's a simple rule governing the internet connection. Why do we need rules?rules provide structure. Without rule, route A wouldn't have known it had to transfer data to route C. The more advanced the technology the more complex the rule.There have been many laws that govern the internet. e.g. the law that regulate internet in India.
Every place has its own law which is slightly different but with same purpose i.e. to keep everything in order. The law has to be amended because the things it govern is changing. Especially in the cyber world which grow intensively in the last 2 decades, need new standards and new rule governing the use of internet. Because of the development, now there is new term "cyber crime" which is crime in the cyber world. e.g. somebody called hacker enter into somebody else system and manipulate things in their databases. Before there was no law that specifically states hacker is a crime, so the law has to be amended. Other form of crime is the piracy of songs, movie. Nowadays people can easily download songs, movies from the internet without paying the royalty to the record company. Then new law emerge to govern the piracy.
e.g. rules that emerge due to advancement in technology click here
Besides new law, new standard is needed too for the digital convergence. Previously the language used in different platform has different standard. But now there is digital convergence, in order to be compatible in every platform, new standards have to be established. e.g. in HTML forget to close the tag is no problem but in XHTML (Combination of HTML and XML which in future people will use this language rather than HTML) an error will occur. This more restricted XHTML is compatible in more user interface than HTML.
In conclusion
e.g. rules that emerge due to advancement in technology click here
Besides new law, new standard is needed too for the digital convergence. Previously the language used in different platform has different standard. But now there is digital convergence, in order to be compatible in every platform, new standards have to be established. e.g. in HTML forget to close the tag is no problem but in XHTML (Combination of HTML and XML which in future people will use this language rather than HTML) an error will occur. This more restricted XHTML is compatible in more user interface than HTML.
In conclusion
- Standards shape technology
- technology alter the economy and enable new behaviour
- behaviour become norm
- norm become laws
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