If you want to start strong, steer clear of these funding fantasies. (http://www.entrepreneur.com/article/204198)
The article that I found explains 4 common venture capital myths. And the reading that we are assigned to read this week is mainly discusses the process of having a venture capitalist, such as explaining the ideas to the VC, talking the financial details with VC, managing the agreement with derivatives. In their opinion VC’s are masters of procrastination. They keep all options open until the last possible moment, and then they will invest. So in this process because VC’s are more experienced than entrepreneurs, entrepreneurs should be really careful about what they are doing.
The first myth is: “By demonstrating the tremendous value of my idea, I will be able to demand a high valuation for my new company.” The author discussed that, management of the money and the company depends on the amount of investment. And generally venture capital firms insist on owning at least 20 percent of all early-stage portfolio companies, which is called Lead VC.
The second myth is: “I am going to retain control of my company.” The author highlights that, after a single round of financing, the founders no longer have “control”, not to mention the specific veto rights that the VCs will have over key matters, such as acquisitions, the next round of financing.
The third one is: “By taking less money now, I will avoid dilution.” To remain attractive for the quick flip in a sale of company, entrepreneurs sometimes choose to raise lower amounts of investment in order to eliminate dilution. And the author says that, even though they choose to have lower amounts of funding, the difference between the two amounts will not be huge. And he points out that “At the end of the day, start-up businesses fail for one reason: because they run out of money.”
The last myth is: “I am going to be able to choose the right VC for my company.” As GO Company also encountered this situation, they were talking about every single company to be invested by. And they decided not to call everybody, if they couldn’t get any answers then they would try to reach the others. The author also mentions that, if an entrepreneurs don’t have any experience, their job is really hard to get a venture capitalist. Therefore, they will be less selective because they need funding to run the company.
Business Model: A method by which a company generates revenue to sustain itself.
Data: Lowest level of abstraction.
Information: Data that are processed to be useful, organized data.
Knowledge: Application of data and information, answers “how” questions.
Main types of IT support systems:
Text mining: Process of deriving high-quality information from text.
Cloud Computing: Delivery of computing as a service rather than a product, whereby shared resources, software, and information are provided to computer and other devices as a utility over a network.
(+) Access your data all time, a physical storage center no longer needed, payment when used, easily scalable
(-) Less control comes with handling over your data and information, dependence on a third party to ensure security confidentiality of data and information, long term dependence.
Virtualization: Creation of a virtual version of sth, such as hardware platform, operating systems, a storage device or network resources.
Saas: Instead of buying and installing expensive packaged entreprise apps, users access apps over a network, with an Internet browser being the only absolute necessity.
Database: Repository of enterprise data that business apps create or generate data. An organized logical grouping of related files.
DBMS: Programs used to create, manage, and access databases.
Data latency: The speed in which data is captures is referred to as data latency.
Data management: Structured approach for capturing, storing, processing, integrating, distributing, securing and archiving data effectively through their life cycle.
Data mining: Process of analyzing data from different perspectives and summarizing it into useful information.
Data quality: The degree of data accuracy, accessibility, relevance, timeliness, and completeness.
Data integrity: Trustworthiness of system resources over their entire life cycle.
Data warehouse: Specialized type of db that is used to aggregate data from transaction dbs for data analysis purposes, such as identifying and examining business trends, to support planning and decision making.
Characteristics of data warehouse:
Problems in db systems:
Adv of DBMS:
Major categories of general data controls
è Physical controls
è Access Control
Batch processing: Execution of a series of programs on a computer without manual intervention.
Risk management: Process of identifying, assessing, and reducing risk to an acceptable level.
Phishing: Is a way of attempting to acquire information such as username, passwords, and credit card details by masquerading as a trustworthy entity in an electronic communication.
Trojan horses: Malicious programs that provide illegal access to a network or account through network port.
BIA: Business impact analysis is an exercise that determines the impact of losing the support or availability of a resource.
Three layers of network security:
1st layer->Perimeter security (Network layer security)
2nd layer->Authentication (Proof of identity)
3rd layer->Authorization (Permission based on identity)
Single sign-on: Property of access control of multiple related, but independent software systems.
Types of e-business transactions and models
Web analytics: Measurement, collection, analysis and reporting of internet data for purposes of understanding and optimizing web usage.
Adv and Dadv of single sign-on:
3G&4G: 3G enabled faster data transmission speeds, greater network capacity and more advanced network searches. 4G most widespread, high-speed wireless services. Only available in limited areas.
Ubiquity: Attribute of being available at any location at any time.
Mobile banking security risks: Using 3rd party applications instead of client apps offered by banks, automatic log-in or “remember-me”, storing account details in phone.
L-commerce: Location based,finding nearest ATM or FedEX drop box.
Web 1.0, 2.0 3.0: Web 2.0: Information sharing, interoperability, user-centered design, and collaboration on WWW. Web 3.0, semantic web, the computer is generating new information rather than humans. Evaluation of 3D web, tailor made, contextual or personalized search.
AJAX: Group of interrelated web development techniques used on the client-side to create asynchronous web apps.
Artificial Intelligence (AI): Intelligence of machines and the branch of computer science that aims to create it.
IT Strategic Planning: Organized planning of IT resources done at various levels of organization. Tools are;
Outsourcing: The process of contracting a business function to so else.
Offshoring: Relocation by a company of a business process from one country to another.
Interorganizational systems: B2B trading systems, B2B support systems, Global systems, EFT, Groupware, Shared dbs
Enterprise Information Systems: That provides a technology platform to enable organizations to integrate and coordinate their business processes.
ERP: Software that integrates the planning, mgmt., and use of all resources in the entire enterprise. Ex: Supports initial sup chain, CRM, knowledge mgmt. systems, business process management(involves the understanding and realignment of processes in the organization, including reengineering and managing the flow of activities and tasks), BI.
ERP Implementation Issues: ERP Vendor and product selection, matching commercial sw with organizational processes, installing ERP commercial sw, complexity of the sw, value generated from ERP systems, integration issues.
SCM: Efficient management of the supply chain end2end processes that start with the design of the product or service and end when it is sold, consumed, or sued by the end consumer.
CRM:Widely implemented strategy for managing a company’s interactions with customers, clients and sales prospects. To have order tracking, product configuration and customization, security/trust, online training and education for loyality value-added services.
Planning>Choosing supplier>Delivery or logistic>Defect and excess
On-demand: Hosted by a vendor on the vendor’s premise, in contrast to the traditional practice of buying the software and using it on-premise.
Knowledge management system cycle: Knowledge>Create>Capture>Refine>Store>Manage>Disseminate>Knowledge
Knowledge management: Process that helps organizations identify, select, organize, disseminate, and transfer important information and expertise that are part of the organization’s memory and that typically reside within the organization in an unstructured manner.
Agile Dev: Sw development methologies based on iterative and incremental development, where requirements and solutions evolve through collaboration between self organizing cross functional teams.
VPN: Connects remote sites or users together privately “virtual” connections routed through the internet from the company’s private network to the remote site or employee.
SDLC: Process of creating or altering information systems and the models an methodologies that people use to develop these systems. (Analysis>Design>Testing>Operations&Maintenance)
WLAN: Type of local area network that uses high-frequency radio waves rather than wires to communicate between computers or devices.
Types of networks: LAN(Local area network), WLAN(Wireless LAN), WAN(Wide area network), PAN(Personal area network)