17 Questions
What is Moore's Law?
Moore's Law states that chip performance per dollar doubles every eighteen months.
What does the term 'price elasticity' associated with faster and cheaper technologies mean?
Consumers buy more products as they become cheaper.
Moore's Law applies only to processors or chip-based technologies.
True
RAM is a type of ____________ memory.
chip-based
What is the function of GlowCap from Vitality, Inc.?
All of the above
The sensor developed by Proteus, a Novartis-backed venture, is activated by external power sources.
False
The Chips inside the pills developed by Proteus are powered by the body's _______ _______.
digestive acids
What was the cost of the original iPod at launch?
$399
Match the following storage units with their corresponding size:
Kilobyte (KB) = One thousand bytes Megabyte (MB) = One million bytes Gigabyte (GB) = One billion bytes Terabyte (TB) = One trillion bytes
What is Moore's Law? What does it apply to?
Moore's Law states that for the same money, roughly eighteen months from now you should be able to purchase computer chips that are twice as fast or store twice as much information.
Are other aspects of computing advancing as well? At what rates?
Yes, disk drive storage doubles roughly every twelve months, while equipment to speed transmissions over fiber-optic lines has doubled every nine months.
What is a microprocessor? What devices contain microprocessors?
A microprocessor is an integrated circuit that carries out the functions of a central processing unit. Devices like smartphones, laptops, tablets, and gaming consoles contain microprocessors.
What is a semiconductor? What substance are most semiconductors made of?
Semiconductor materials are substances capable of enabling or inhibiting the flow of electricity. Most semiconductors are made of silicon.
How does flash memory differ from the memory in a PC? Are both solid state?
Flash memory is non-volatile memory that can be electrically erased and reprogrammed. It is a type of solid-state memory, just like the memory in a PC.
Which of the following are solid-state devices: an iPod shuffle, a TiVo DVR, a typical laptop PC?
Laptop PC
Why is Moore’s Law important for managers? How does it influence managerial thinking?
Moore's Law is important for managers as it indicates the pace of technological advancements and guides decision-making related to technology investments and strategic planning.
What is price elasticity? How does Moore’s Law relate to this concept? What’s special about falling chip prices compared to price drops for products like clothing or food?
Price elasticity measures how demand for a product changes with its price. Moore's Law influences price elasticity by driving down chip prices over time, making technology more accessible. Unlike products like clothing or food, falling chip prices lead to continuous performance upgrades without increased costs.
Study Notes
Moore's Law and Computing Advancements
- Moore's Law states that chip performance per dollar doubles every 18 months, leading to exponentially faster and cheaper computing.
- This phenomenon has driven the computer industry and has impacted various other fields, including medicine, entertainment, and commerce.
Key Components and Technologies
- Microprocessors: the brain of a computing device, executing instructions and allowing computers to run programs.
- Random-Access Memory (RAM): volatile memory that provides fast access for executing computer programs and files.
- Flash memory: nonvolatile memory that holds data even when power is off, used in devices like cameras, MP3 players, and mobile phones.
Impact of Moore's Law on Business and Society
- Faster and cheaper computing has opened new markets, created opportunities for firms, and catalyzed industry disruption.
- Increased computing power has led to:
- Ubiquitous computing in various devices, from mobile phones to home appliances.
- Shifts in industries, such as photography, music, and healthcare.
- Development of innovative products and services, like smart pill bottles and wearable devices.
Examples of Companies Leveraging Moore's Law
- Apple: from the iPod to the iPhone, Apple's products have ridden the waves of Moore's Law, transforming the music, phone, and computer industries.
- Amazon: from online bookstore to digital media powerhouse, Amazon has leveraged Moore's Law to dominate the music and book retail markets.
- Ambient Devices: a firm that has embedded computing and communications technology into everyday devices, creating innovative products like the Orb lamp and weather-sensing umbrella.
Measuring Data Capacity and Storage
- Bits and bytes: the fundamental units of digital information, with prefixes (kilo, mega, giga, tera, peta, exa) used to describe larger quantities of data.
- Storage: measured in bytes, with increasing capacities (kilobyte, megabyte, gigabyte, terabyte, petabyte, exabyte) used to describe larger amounts of data.### Bytes and Storage
- 1 byte = 1 keyboard character = 8 bits
- 1 kilobyte (KB) = 1,000 bytes
- 1 megabyte (MB) = 1,000,000 bytes
- 1 gigabyte (GB) = 1,000,000,000 bytes
- 1 terabyte (TB) = 1,000,000,000,000 bytes
- 1 petabyte (PB) = 1,000,000,000,000,000 bytes
- 1 exabyte (EB) = 1,000,000,000,000,000,000 bytes
- 1 zettabyte (ZB) = 1,000,000,000,000,000,000,000 bytes
Examples of Data Storage
- 1 typewritten page = 2 KB
- 1 digital book (Kindle) = approximately 500-800 KB
- 1 digital photo (7 megapixels) = 1.3 MB
- 1 MP3 song = approximately 3 MB
- 1 CD = approximately 700 MB
- 1 DVD movie = approximately 4.7 GB
- 1 Blu-ray movie = approximately 25 GB
- Printed collection of the Library of Congress = approximately 20 TB
- Wal-Mart data warehouse (2008) = approximately 2.5 PB
- Amount of data consumed by U.S. households in 2008 = approximately 3.6 ZB
Moore's Law
- States that for the same money, roughly every 18 months, computer chips will be twice as fast or store twice as much information
- Also applies to other technologies, such as disk drive storage and fiber-optic lines
- Impacts inventory value, depreciation accounting, employee training, and other managerial functions
Impact of Technology on Business
- Cheaper, faster chips can lead to increased productivity and lower interest rates
- Can create new industries, business models, and products, while disrupting established ones
- Managers must regularly study trends and trajectory in technology to recognize opportunities and avoid disruption
Tech for the Poor
- Examples of technology benefiting those who may not have been able to afford it in the past:
- One Laptop per Child (OLPC) project
- Cell phones, which have transformed the lives of the world's poorest people
- Mobile banking programs, such as M-PESA, which allow customers to use mobile phones to store cash credits and make payments
Learn about Moore's Law, its impact on technology, and the price elasticity of faster and cheaper technologies in creating new markets and opportunities.
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