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Characteristic Outside Network
Network effect outside externally/network

At the time of product servicing which has the quality of network, the number of users and frequency etc. of utilization it is the character that it produces effect on use and the utilization value which can by the utilization of that product service. The source of value is not product service, itself the demand side - - furthermore is not individual needs of the consumer of specification, the word which shows the fact that it designs to be the structure which depends consumer on the whole.

External characteristic (external effect) with terminology of economics, the decision making and conduct of a certain economic subject (person and enterprise etc.), mean that effect is produced vis-a-vis the economic subject of the third party who is not the party of transaction.

The direct effect (characteristic outside direct network) there is an indirect effect (characteristic outside indirect network) in characteristic outside network. The direct effect, like the telephone and E-mail etc. scale (the number of users and the number etc. of terminals) of network is the effect which influences utilization value for the consumer (member) that way.

When telephone service is taken as example, as for the telephone network the member have no other choice but to 1, is non value, but the utilization value that occurs it joins here it can speak by telephone 1 person anew mutually. Furthermore if already 1 person joins, it became a state where it can speak by telephone to 2 partners for the first 1 person, you can say that utilization value increased. This way if in the system which has the character of network, the member is many, many extent utilization values increase, finally "join unless, it is inconvenient", until the power of coercion that "it is not possible not to join", works, there are also times when it becomes (however, when user is too multi, thing which is some where value goes down is pointed out). Here regardless of value has changed in efficiency of the telephone itself with the number of members, characteristic thing outside such is called "characteristic outside network".

As for the product service where characteristic outside network exists, if the user increases, the extent value which increases increases, because of that that you say and that furthermore the user increases, it is known "correct feedback" occurs. When in the word, "characteristic outside network", it points to the thing of this correct feedback effect, it is many.

The direct effect, telephone (fixing telephone, portable telephone and PHS) and FAX and E-mail, the bulletin board system, is seen typically in the interconnect equipment and communication such as kyat and instant message service. In addition, in language "English use value is high", in the currency also those where "use value of dollar is high", are similar phenomenon

On the one hand, it is the effect that the indirect effect, like the hardware and the software of the computer, the quantity and the quality where the compensation commodity (software) which is related to the use value of that product directly according to the scale (degree of spread of hardware and the like) of network is offered are decided, existence of the compensation commodity such as that influence the value of the product for the consumer (consumer) (hardware). For example when for PC you explain with the software, Macintosh compared to Windows has spread quantitatively, from the fact that you can anticipate many sales, for Windows preferring the product, you sell the software bender, because of that the software of multi types is offered. It is something where the user if it is Windows PC, because there is a convenience that it is possible to choose the software from midst of many choices, means to select Windows when (only that there are choices, it is), as a platform.

As for the product service where you can see the indirect effect other than the computer, video and CD/DVD (prayer/recorder and contents), game machine (equipment for home and software), broadcast (receiver and program) and the credit card/the electronic money (liquidation expedient and utilization scene) and the like corresponds. If direct effective similar and the product spread, extent and the compensation commodity which are done are mainly offered, you said that furthermore spread is promoted, you can see "correct feedback".

It assumes in the product service where characteristic outside network works that there is a fixed diffusion rate which is called "critical mass". As for this, you can call extent of the spread where the utilization value which many people can accept in the market is achieved, but when it exceeds this diffusion rate, the product service spreads quickly.

Because of that at the industry where characteristic outside network works, the user which how exceeds critical mass more quickly than function of the product service and superiority or inferiority of quality, is acquired, whether state of "correct feedback" is constructed, it becomes the deciding factor of spread. In order to guarantee critical mass, the early adoption person (??????, Earlyadapter) is acquired securely, at early stage disregarding the profit, even and so on it does strategic price setting, (it was seen with sale and the like of the portable telephone) there is a step.
Method of thinking the characteristic outside network to the eighties was picked up the occasion where the mechanism of technical standard spread is explained from the case of VHS/beta, in the nineties the new economy and IT revolution "the one person won and" talked actively as the background theory which is brought. But, external characteristic concept itself Alph lead Marshall (Alfred Marshall), was argued from former times of the ASA - C Pigou (Arthur Cecil Pigou), ????? ??????…??? (Harvey Leibenstein) of the economic scholar showed in 1950, you can call "the bandwagon effect (bandwagon effect)", that substantially they are same ones as the characteristic outside network.

 


 
 
 



 
 
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