MIT-Q5

1. These are among the most powerful strategic resources that can be created by technology-based innovation. Examples of innovation technologies includes Microsoft, Apple, NASDAQ, eBay, Facebook, and Visa.

• Network Fundamentals

• Google

• Network effects

• Artificial Intelligence

(Choose all that apply)

2. Below are several products or services subject to network effects.

• Apple

• NASDAQ

• Shopee

• Microsoft

• Lazada

(Choose all that apply)

3. Identify the sources that derives the value of network effects.

• exchange

• Internet

• complementary benefits

• staying power

• Networks

(True or False)

4. Every product or service subject to network effects fosters some kind of exchange.

• True

• False

5. (True of False)

Networks with greater numbers of users suggest a stronger staying power. The staying power, or long-term viability, of a product or service is particularly important for consumers of technology products.

• True

• False

6. These are those products or services that add additional value to the network. These products might include “how-to” books, software, and feature add-ons, even labor.

• Complementary Benefits

• switching costs

• Staying Power

• Exchange

7. These are Products and services that encourage others to offer complementary goods are sometimes called ___________

• platforms

• Benefits

• TCO

• Switching Cost

8. (True or False)

Allowing other firms to contribute to your platform can be a brilliant strategy because those firms will spend their time and money to enhance your offerings.

• True

• False

9. (True or False)

When users exchanging information attract more users, they can also attract firms offering complementary products. When developers of complementary products invest time writing software—and users install, learn, and customize these products—switching costs are created that enhance the staying power of a given network.

• True

• False

10. (True or False)

Many firms attempt to enhance their network effects by creating a platform for the development of third-party products and services that enhance the primary offering.

• True

• False