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CHAPTER 2- A DIGITAL WORLD DIGITAL TECHNOLOGY Everything on the Internet is digital I.e. all of its text and pictures are stored as a string of zero’s and one’s (or ‘bits’). A bit is a single piece of information 3 factors make the translation into bits such a powerful process: 1) Moore’s law

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digital technology
DIGITAL TECHNOLOGY
  • Everything on the Internet is digital I.e. all of its text and pictures are stored as a string of zero’s and one’s (or ‘bits’).
  • A bit is a single piece of information
  • 3 factors make the translation into bits such a powerful process:

1) Moore’s law

2) Ability to create digital environments

3) Convergence

1 moore s law
1) MOORE’S LAW
  • Noticed by Gordon Moore, a co-founder of Intel Corporation, based on engineering practices.
  • The falling cost of digital technology.
  • “Each new generation of chip technology, which has been released about every 18 months, can pack the same number of elements into half the space”
using moore s law
Using Moore’s Law
  • Input substitution- When an input to production gets cheaper, we substitute that cheaper input for other inputs that have stayed the same or gotten more expensive.
  • E.g. the switch to bits from atoms
  • Digital technology helps offset increasing costs (e.g. marketing and customer support) for organisations.
language and digital substitution
Language and Digital Substitution
  • Substituting bits for atoms saves money and creates new capability's
  • For example, the internet allows global companies to send messages and text to a variety of cultural audiences as language options are offered, as well as online translation services made available.
  • E.g. disneyland.go.com/disneylandresort
will moore s law continue
Will Moore’s Law continue?
  • Skeptics say that the doubling period would need to be adjusted to keep the law going.
  • Also, factories making the chips are becoming more expensive.
  • Conversely, supporters of Moore’s Law, such as industry commentators, argue that costs will continue to fall exponentially, reflecting the cost decrease of ‘Mainframe’s’
  • The future of Moore’s Law has been controversially debated over the past couple of years:
  • Robertson, j. (2002) “Moore’s Law Namesake Predicts IC Density Growth could Slow” Available online (proquest)
2 digital environments
2) DIGITAL ENVIRONMENTS
  • The use of computers has extended from making simple calculations to creating entire digital worlds.
  • Digital environments are:

a) Procedural

b) Participatory

c) Spatial

d) Encyclopedic

a procedural
a) Procedural
  • Computer’s are logical, pre-programmed engines that follow (‘procedural’) rules.
  • Internet marketing allows consumers to interact directly and independently with the digital environments.
  • ‘Procedural rules’ + ‘Participation’ = Interactivity
b participatory
b) Participatory
  • Participation online is encouraged, and provides feedback between the user and the computer.
  • Participation helps users find the information needed, thus ease of use is important.
  • Help’s create ‘personalization’
c spatial
c) Spatial
  • Digital environments can make participants ‘loose track of time’ and dismiss the ‘real world’
  • Providing familiarity and comfort to users makes spatial environments seem less ‘daunting’, and more realistic.
  • E.g. disney.go.com
d encyclopedic
d) Encyclopedic
  • Digital environments allow large amounts of information to be stored cheaply and easily.
  • Cheap ‘bits’ allow marketers, for example, to avoid costly multiple product versions or ignore small markets e.g. a book publisher allowing various formats to be offered online.
the future of digital environments
The Future of Digital Environments
  • Digital environments are dynamic and are continually increasing in size.
  • Improvements are continuously being made to existing sites, including the ability to offer not only two but also three dimensional capabilities.
  • E.g. ‘e-toys’
digital convergence
DIGITAL CONVERGENCE
  • “…the merging of industries, technologies and content which used to be separate but now overlap...” (Hanson, 2000)
  • The merging of computing, communications and media content make up the ‘Interactive Multimedia’ triangle.
  • Companies composing the Multimedia triangle are merging e.g. Disney’s Go Network
how digitizing works
HOW DIGITIZING WORKS
  • In order to take advantage of Moore’s Law, digital environments and digital convergence, text and images need to be made digital.
  • Digitizing text- Each letter of the alphabet is assigned a code.
  • Digitizing images- Each colour/shade of an object is assigned a number which is then represented by a ‘binary’ code.
  • Text and images are then stored digitally as a set or string of binary codes (I.e. ‘0’s’ and ‘1’s’).
digitizing marketing processes
DIGITIZING MARKETING PROCESSES
  • 3 step process followed by firms to take advantage of digital environments:

1) Archive- Retain and digitalize material

2) Substitute- Substitute digital materials into marketing processes e.g. Allowing staff at ‘Levi’s’ to globally view customer focus groups over an intranet’

3) Redesign- Change marketing practices to better use digital features e.g. ‘e-tickets’

summary
SUMMARY
  • The Internet is compiled of digital images and text, stored as a string of ‘0’s and ‘1’s.
  • Moore’s Law identifies the falling cost of digital technology.
  • Digital Environments are procedural, participatory, spatial and encyclopedic.
  • The Internet has allowed industries, technologies and content to converge.
  • Taking advantage of digital environments involves the ‘Archive’ and ‘Substitution’ of digital material, and ‘Redesign’ of marketing processes
  • Due to the rapidly growing, improving and dynamic nature of the technological industry, who knows what it will bring tomorrow??