TOPIC 1: INVESTIGATION AND ANALYSIS OF IT TRENDS LIMITATIONS OF TREND ANALYSIS
Critics of trend analysis, and technical trading in general
TREND ANALYSIS argue that markets are efficient, and already price in all
• It is the widespread practice of collecting available information. That means that history does not
information and attempting to spot a pattern. necessarily need to repeat itself, and that the past does not
• It is a technique used in technical analysis that predict the future.
attempts to predict future stock price movements
based on recently observed trend data. TREND ANALYSIS FOR BUSINESS IMPROVEMENT
• It is based on the idea that what has happened in • Identifying areas where your business is performing
the past gives traders an idea of what will happen in well so you can duplicate success.
the future. • Identifying areas where your business is
underperforming.
How does it work? • Providing evidence to inform your decision making.
• It tries to predict a trend such as a bull market run
and ride that trend until data suggest a trend INFORMATION TECHNOLOGY CURRENT AND EMERGING
reversal, such as a bull-to-bear market. TRENDS
• It is helpful because moving with trends, and not • Information technology is an industry on the rise in
against them, will lead to profit for an investor. business structure, job growth, and emerging
technology will all shift in the coming years.
A trend is the general direction the market is taking during a
specified period of time. Trends can be both upward and • Current trends are improving and presenting new
downward, relating to bullish and bearish markets, functions in fields like medicine, entertainment,
respectively. business, education, marketing, law enforcement,
and more Information Technology is advancing so
While there is no specified minimum amount of time rapidly that new developments are quickly
required for a direction to be considered a trend, the longer replacing current projections.
the direction is maintained, the more notable the trend.
CURRENT TRENDS IN IT
TREND TRADING STRATEGIES
• CLOUD COMPUTING – is a network of resources a
Trend traders attempt to isolate and extract profit from
company can access, and this method of using a
trends. There are many different trend trading strategies
digital drive increases the efficiency of
using a variety of technical indicators:
organizations.
1. MOVING AVERAGES – these strategies involve • MOBILE APPS and COMPUTING – Mobile phones,
entering long positions when a short-term moving tablets, and other devices have taken both the
average crosses above a long-term moving average business world and the personal realm by storm.
and entering short positions when a short-term • BIG DATA ANALYTICS – Big data is a trend that
moving average crosses below a long-term moving allows business to analyze extensive sets of
average. information to achieve variety in increasing
volumes and growth of velocity.
2. MOMENTUM INDICATORS – These strategies • AUTOMATION – This can collect information from
involve entering long positions when a security is vendors, customers, and other documentation.
trending with strong momentum and exiting long
positions when a security loses momentum. Often, EMERGING TRENDS IN IT INDUSTRY
the relative strength index (RSI) is used in these ARTIFICIAL INTELLIGENCE AND SMART MACHINES – This
strategies. harnesses algorithms and machine learning to predict
useful patterns humans normally identify.
3. TRENDLINES & CHART PATTERNS – These VIRTUAL REALITY – Technology that includes virtual reality
strategies involve entering long positions when a becoming prevalent. The software of virtual reality is
security is trending higher and placing a stop-loss making many industries prepare for various scenarios
below key trendline support levels. If the stock before entering them.
starts to reverse, the position exits for a profit.
AUGMENTED REALITY – This is more versatile and
practical version of virtual reality, as it does not fully
immerse individuals in an experience.
BLOCKCHAIN – Like the cryptocurrency Bitcoin, is a
secure method that will continue to grow in popularity and
use in 2019.
INTERNET OF THINGS (IOT) – This is an emerging
movement of products with integrated Wi-Fi and network
connectivity abilities.
TOPIC 2: DEVELOPMENT OF BUSINESS MODEL USING
INFORMATION TECHNOLOGIES
BUSINESS MODELS
• These are stylized models that describe how
companies create and deliver value to their
customers, and how they get rewarded for doing
that.
• These are also constructed encompasses the
product or service, the customer and market, the
company’s role within the value chain, and the
economic engine that enables it to meet its
profitability and growth objectives.
• These are also structured blueprints which attempt
to bring order and discipline to the chaotic process
of building, growing and operating a business.
THREE CORE ELEMENTS:
1. Value-creation model
2. Profit model
3. Logic model
MOST COMMON TYPE OF BUSINESS MODELS
1. SUBSCRIPTION MODEL – the customers pay a
recurring payment monthly for access to a service
or product.
2. BUNDLING MODEL – involves selling two or more
products together as single unit.
3. FREEMIUM MODEL – A combination of the words
“free” and “premium”.
4. RAZOR BLADES MODEL – the replacement cost
more.
5. PRODUCT TO SERVICES MODEL – asking another
company to do the services instead of purchasing a
tool.
6. LEASING MODEL – a company purchases a
product and then leases it to a customer for a
periodic fee.
