DTS - Week 6 (MC)

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Questions and Answers

Which of the following is an example of a marketplace platform?

Google

Facebook

Uber (correct)

Wikipedia

What is the primary objective of aggregators?

To replace traditional labor statistics

To create efficient matches between consumers and suppliers

To provide valuable services to users and connect them with external producers (correct)

To collect and analyze user data

What does "inverted firm" refer to in the context of platforms?

Firms focusing only on consumers

Firms outsourcing production to external users (correct)

Firms using vertical integration

Firms with entirely internal production

Which is NOT a cause of market power in platforms?

High variable costs Signup and view all the answers

What is consumer surplus?

The difference between what a consumer is willing to pay and what they actually pay Signup and view all the answers

What is a positive aspect of market power?

It drives efficiency in production processes Signup and view all the answers

Which remedy aims to split a platform's operations into competing entities?

Horizontal break-up Signup and view all the answers

What is the focus of ex-ante regulatory frameworks?

Establishing rules to promote contestability Signup and view all the answers

What is a network effect in platforms?

Increased platform value with more users Signup and view all the answers

What is the main challenge of breaking up data-driven monopolies?

Loss of economies of scale Signup and view all the answers

What is digitalization?

Using digital technologies to transform business models Signup and view all the answers

Which of the following is a technology enabler for digitalization?

Data management and analytics Signup and view all the answers

Which is a cultural barrier to digitalization?

Lack of sense of urgency Signup and view all the answers

What is an example of an IoT element?

Data management and analysis Signup and view all the answers

What role does a global IoT architecture play?

Integrates IoT systems across organizational facets Signup and view all the answers

Which is NOT an organizational barrier to IoT implementation?

Perception of complexity Signup and view all the answers

What is a strategic enabler for IoT implementation?

Recognizing IoT as a key component of strategy Signup and view all the answers

Why is resistance to change a significant barrier to digitalization?

It slows down alignment with digital initiatives Signup and view all the answers

Which of the following fosters a digital culture in organizations?

Talent with digital skills Signup and view all the answers

What is a perception-related barrier to IoT implementation?

Lack of trust in IoT technology Signup and view all the answers

What was the goal of the Predix platform?

To standardize data for industrial activities Signup and view all the answers

What was a key internal challenge for Predix adoption?

Resistance from legacy IT systems Signup and view all the answers

What was a go-to-market strategy for Predix?

Outcomes-based deals Signup and view all the answers

Why was customer trust an issue for GE's digital transformation?

Customers were hesitant to share sensitive data Signup and view all the answers

What role did the salesforce play in GE's digital strategy?

Designing revenue-sharing contracts Signup and view all the answers

Which external factor contributed to GE's challenges?

Customer infrastructure readiness Signup and view all the answers

What broader issue impacted GE during its transformation?

Financial mismanagement and acquisition problems Signup and view all the answers

What is an outcome-based deal?

Sharing revenue and implementation risks with customers Signup and view all the answers

What does GE's digital transformation case emphasize?

The importance of aligning strategy, technology, and culture Signup and view all the answers

What led to skepticism about GE's Predix platform?

Integration issues and software glitches Signup and view all the answers

Study Notes

Marketplace Platforms

Facebook, Google, and Wikipedia are examples of different types of platforms
Uber is an example of a marketplace platform

Aggregator Objectives

Aggregators aim to connect consumers with suppliers and provide related services.
This involves connecting users with external producers

Inverted Firm

"Inverted firm" refers to firms that outsource their production to external users instead of having it all within their company.

Platform Market Power Causes

Economies of scale
Network effects
Multi-sidedness

Consumer Surplus

Consumer surplus is the difference between what a consumer is willing to pay and what they actually pay for a good or service.

Market Power Positive Aspect

Market power can drive efficiency in production processes.

Remedy for Market Power

Horizontal break-up aims to divide a platform's operations into competing entities.

Ex-ante Regulatory Frameworks

Ex-ante regulatory frameworks focus on creating rules and regulations that promote market contestability.

Network Effects

Network effects describe the increased value of a platform with a growing number of users.

Technology Enablers for Digitalization

Data management and analysis tools enable digitalization efforts.

Cultural Barriers to Digitalization

Lack of sense of urgency is a cultural barrier to digitalization efforts.

IoT Element Example

Data management and analysis is an example of an IoT element

Global IoT Architecture Role

A global IoT architecture plays a role in integrating IoT systems across various organizational aspects.

Organizational Barriers to IoT Implementation

Perception of complexity is an organizational barrier to digitalization, related to implementation.

Strategic Enablers for IoT Implementation

Recognizing IoT as a key part of strategy is a crucial component for its success.

Resistance to Change Barrier

Resistance to change is one of the significant barriers to effective digitalization initiatives. Platform transformation needs an effective strategy.

Fostering Digital Culture

Employees with digital skills are crucial in fostering a robust digital culture within an organization.

Skepticism about GE's Predix Platform

Integration issues and software glitches were factors in the skepticism surrounding the Predix platform.

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Description

This quiz covers various economic concepts related to marketplace platforms, including aggregator objectives, consumer surplus, and market power. Dive into the implications of inverted firms and regulatory frameworks that shape the digital economy. Test your understanding of how these elements interact within modern marketplaces.