DEPARTMENT OF COMPUTER SCIENCE
University of Toronto
CSC454/2527S: The Business of Software
January-April 2000
28 February 2000, 7:10-7:55 p.m. (45 minutes)
MIDTERM TEST
CLOSED BOOK, CLOSED COURSE NOTES
Write all your work in this booklet (8 pages in total).
NAME _____________________________________________________________
STUDENT # ________________________________________________________
SCORE_____________________________________________OUT OF 70 POINTS
Answer the following questions, based on the course notes, readings, lectures, and visitor presentations.
Your answers to questions 8 and 9 should be as terse and crisp as possible. If you can't say it succinctly, excess verbiage won't help. In fact, it will hurt.
There are nine (9) questions. Do not spend too much time on any one question.
Good luck.
A) Barriers to entry
B) Competitive edge
C) Proprietary technology
D) Market niche
E) Market share
F) Market window
For each of the following phrases, indicate which concept, if any, it illustrates, illuminates, or typifies best. In other words, in each row you must circle the word "None" or at most one of the capital letters.
2) (6 points) Recall Ron DeCarlantonio of Inago and his presentation on his new NetPeople concept. Which of the following statements would he be likely to make if he were describing his business in terms of the concepts of "positioning", "differentiation, "vertical market", and "market segment"?
Circle the letters before all those statements that he would be likely to make.
3) (6 points) Assume that USWeb/CKS is trying to apply Silvers Law of Venture Capital to explain its merger and acquisition strategy. Circle the letters before all of the following possible explanations for the strategy that can be justified by Silvers Law.
4) (6 points) Guest lecturer Lillian Blume described a number of groupwork problems that had been observed in past computer science classes taught by Prof. Baecker. Circle the letters before all the problems that she discussed.
5) (8 points) In one of the readings, Patricia Seybold asserts that there are reasons why amazon.com has become so successful. Circle the letters before all the reasons that she proposes.
6) (4 points) In a recent lecture, we spoke of basing software businesses on services, products, and/or content. Circle the letters before all of the statements below that Prof. Baecker would agree with.
a) You need to make a choice among these three ways of building a business, because you cannot simultaneously sell service, product and content.
b) Product companies can add value and by selling support and training.
c) Productizing routine service offerings would be represent a regrettable loss of focus for a service company.
d) Dot.coms are primarily vehicles for the sale of products, as opposed to services or content.
7) (8 points) For each of the following achievements by a software company, indicate whether they are:
A) Primarily evidence of a market for a technology or service
B) Primarily evidence of user benefit for a technology or service; or
Neither) Neither
In each row you must circle the word "Neither" or at most one of the two capital letters.
a) Purchases by customers A B Neither
b) Testimonials by long-term customers A B Neither
c) Positive reviews in trade magazine A B Neither
d) The raising of $20M by a competitor A B Neither
e) Measured efficiency improvements by a customer A B Neither
f) Twice as many features as a competitor A B Neither
g) Promising interviews with potential customers A B Neither
h) Evidence that your product is reliable A B Neither
8) (10 points) In brief phrases of 1 to 5 words each, list Druckers 7 sources of innovative opportunity:
a)
b)
c)
d)
e)
f)
g)
9) (10 points) In two of our textbooks, Rich and Gumpert speak of "investor turn-offs", and Bell (with McNamara) speak of "unrealistic plans", but they are talking about similar concepts. In brief phrases of 1 to 5 words each, list 7 different features or characteristics of unrealistic plans cited by these authors that will likely turn off potential investors:
a)
b)
c)
d)
e)
f)
g)
EXTRA SPACE FOR WRITING ..
THIS IS THE END OF THE EXAM.
PLEASE CHECK YOUR WORK.