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Communication earn ng, row eve opmen
Entertainment
o ty Survival
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WhatISDoes
(Functions) WhatIS
Delivers...
Capture
Process
ene s
Generate
Store
Speed
Consistenc
Retrieve
Precision
e a y
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Learnability:Howeasyisitforuserstoaccomplishbasictasksthers me eyencoun er e es gn
Efficiency:Onceusershavelearnedthedesign,howquicklycan
Memorability:When
users
return
to
the
design
after
aperiod
of
not
,
Errors:Howmanyerrorsdousersmake,howseverearethese,
Satisfaction:Howpleasantisittousethedesign?
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Mana ementFunctions
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Greaterparticipation
in
foreign
trade
reduces
Globaltradeintechnologyintensiveproducts
registeredthehighestgrowthrateinallthe
regionsexcept
Latin
America
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Informationandcommunicationtechnology(ICT)infrastructureis
OpposingView:ToomuchstockisgiventoICTexpansionasanengineofgrowth,whilenotenoughattentionisgiventohumancapital,health,andcivi in rastructure roa s,c eanwater,e ectricity,etc. 2
Countered:
ICT
infrastructure
expansion:
andtransportation
allowsfornewmethodsofcrossborderinvestmentsandtheexpansionof
activitiesvitaltothenewglobaleconomy connectivityandseamlesscommunicationarerevolutionizingthestructuresofeconomicexchange.[3]
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TheimpactofICTsextendsbeyondtheeconomicdomain,with+ve
spillovereffectsonvariousdimensionsofsociallife: enhancelearning[1.a]
improvehealth
care
[1.b]
empowermarginalizedwomen[1.c]
maintaingoodgovernance[1.e]
Developingcountries
may
not
see
the
same
returns
on
their
ICT
nvestmentsas eve ope countr es.I T eg nsto e vergross omest cproduct(GDP)percapitagrowthonlyafteracertainthresholdofICTdevelopmentisattained.[2]
Unlikedeveloped
countries,
developing
countries
have
little
of
the
supportinginfrastructurenecessaryfortheexpansionandutilizationoftheproductivecapacityofICTs[3]
Networkexpansion&efficiency&Privatisation
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EconomicfactorsarecorrelatedwithICTexpansion(95%conf.)
ICT services are rice sensitive
Universitieshave
the
largest
impact
on
ICT
ns u onsarene userso
Graduateshavehigherannualincomes
GraduatesengageICTintheirproductivecapacity
ICTexpansionisafunctionof(road)transportinfrastructure
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Trans ortation Ener &Industr
Education Securit
Agriculture Bankin &Finance
HealthCare
Printing&
Packaging
Construction
Education
Food&Beverage
Travel,Transportation&
Media,Music&
Entertainment
Transshipment
Science,R&D,Innovation
Advertising
ProfessionalServices
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,
Classical:structure
and
requirements
to
sustain
it
HumanRelations:people;groupandindividualneeds
Systems:responsetoexternalandinternalinfluences
Contingency:balanceofanumberofkeyvariables(structure;strategy;staffingetc.)
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intricatehumanstrategiesdesignedtoachieveobjectives~Argyris (1960)
theirmachinestoaccomplishgoals~Simon1979
systemsofinterdependenthumanbeings~Pugh(1990)
ameansofworkingwithotherstoachievegoals~Stewart(1994)
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Administration
Businesses:Profit
Motive
Drucker: ur oseisnottoearn rofit rofitisameasureofhowwellthebusinessperforms i.e.creatin acustomer ortransaction
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Pro rietor SelfOwner
SoleTraders
FamilyBusiness
Ownership
of
Assets:
Partnerships General
xposure o
Liability
Shareof
Profit
Limited Controlof
Corporations PrivateLimitedLiability
DecisionMaking
Execution Authority
Communication
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1. workinginward
(improving
afirms
internal
processes
and
structure)
. withcustomers)and
3. workingacross(improvingitsprocessesandrelationshipswithitsbusiness
partners)
Egs:
Grain er GEPowerS stems WireNovaScotia TheShi in
Industry,Cisco
Systems
and
UPS
Supply
Chain
Solutions,
Semco,S.A.,ADayintheLifeofanElancer,GeneralMillsandLandOLakes,SaraLeeBakeryGroup,andDellComputer
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WorkingInward:
Connectivity
&
Belonging
WorkingOutward:
Customers&Services
or ng
cross:Suppliers&Backoffice
316
Figure31StrategicUsesofInformationSystems
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Use of the Internet b businesses in mid late 90s
set
off
a
revolution
in
the
use
of
IT
t z ngt e nternettocon uct us ness ecamet estrategicuseofIT
Strategic=havingasignificant,longtermimpactonafirmsgrowth,industryand$$
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IntroductionLast
20
Years
Strategic
Uses
of
IT
,
hottopic
=end
user
computing
(working
HelpemployeeslearnaboutPCs
strategicusefocusedoutwardtogain
Nowconsiderednormal=competitivenecessity
Vs.competitiveadvantage
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IntroductionLast
20
Years
Strategic
Uses
of
IT
cont.
Strategicuse
attention
turned
inward
to
=
totallyredesignhowtheenterpriseoperated
Introductionof
ERP
systems
was
also
aimed
at
internaloperations,specificallyprovidingsingle
319
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IntroductionLast
20
Years
Strategic
Uses
of
IT
cont.
.
Internetspotential
becoming
evident
= u w u
competitiveadvantage
MostestablishedfirmsinitiallyusedtheInternet
technologyinternally,buildingintranetstoimprove
company
processes Publishingeforms
Accompanyingworkflowprocesses
320
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IntroductionLast
20
Years
Strategic
Uses
of
IT
cont.
Useof
the
Internet
for
business
underway
Burstingofthedotcombubble
EBusiness as ecomemorerea ity ase
IntegrationoftheInternetintohowcompaniesworkhas
proceeded
early00s
Theme = levera in traditional o erations b usin the
Internetto
work
more
closely
with
others
forbricksandmortarfirms
2006
Barbara
C.
McNurlin.
PublishedbyPearson
Education.
321
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IntroductionLast
20
Years
Strategic
Uses
of
IT
cont.
2005 Somethinghaschanged
EspeciallywithregardstotheuseofITforcompetitive
advantage
SomemayquestionITsabilitytogivecompaniesa
competitiveedgebutitisabsolutelynecessaryfor
competitiveparity
Beingused
strategically:
Inward
Across
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IntroductionWhither
the
Internet
Revolution?
Isthe
Information
Revolution
dead?
BritishRailwayRevolution mid1800s
10
fold
increase
after
the
boom
Duringboom=greatexcitementandsmallcompanies
flourished
After=glamourgone.Businessbecameseriousandfullofhard
Industrybecameorderlyandprofitsbegantoreflectrealreturns
Connectingindustries
ace orspace o owe y e rea ea
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IntroductionWhither
the
Internet
Revolution?
cont.
We are now in a eriod where or anizations are
re
architecting
themselves
around
Internet
technologies
Realgains
will
come
when
Internet
technology
a aptstoorganizationsan peop e Whenthetechnologydisappearsandbecomespartof
life
Itwill
be
quiet
compared
to
frenzy
of
99/00
but
manythinkitwillbeagiantrevolution
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IntroductionThe
Cheap
Revolution
to
buying
cheapgenericproducts
CheapTech
Google=runson100,000cheapservers
Onebreaks
=discards
Dellification
MovedfromsellingPCstoalsosellingservers,printers,storagedevices.
Labor outsourcingto
other
countries
Filmproduction camcordersetc.
Software LinuxVs.Microsoft
Telecommunications VoiceoverIP
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E
Business
Drivers
acceptance
of
e
business: Wideaccesstoapublicnetwork
Standardcommunicationprotocol
Standarduserinterface
,reducingaccessandcommunicationscosts PreInternet 95%ofFortune500usedEDIVs.2%ofallU.S.companies
Withstandardized
communication
protocols
and
user
interfaces,implementationandtrainingcostsarefarlower
,thesystems,allowingrapidgrowth
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HarvardBusiness
Review
May
2003
Bottomline=ITdoesntmatteranymore,atleastnotstrategically
ITis
an
infrastructure
technology,
like
rail,
electricity,
telephoneetc.
Suchtechnologycancreateastrategicadvantageforanindividualfirmatthebeginningofitslifecyclewhenitis
Carr=IT
is
now
at
the
end
of
build
out
and
is
neither
proprietaryorexpensive
=Acommodit whichisavailabletoan oneandwont ivean individualfirmacompetitiveadvantage
327
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.
Reachedtheendofitsbuildout:1. PowerofITnowoutstripstheneedsofbusiness
2. ITprices
have
dropped
=now
affordable
3. CapacityofInternethascaughtupwithdemand(fibresurplus)
4. Manyvendorswanttobeseenasutilities
5. Investmentbubblehasburst
Whenaninfrastructuretechnologyreachestheendofitsbuildout,itsimplybecomesacostofdoingbusiness
AlthoughIT
is
necessary
for
competitiveness,
Competitiveadvantagecomesfromthefirmsbusinessmodel
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MISManager:Considerations2
1960s 1970s 1980s 1995+
Roleof
IS Efficiency Effectiveness Strategic Value
Creation
JustificationROI
Productivity&Com etitiveness Addin Value
o ua y
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MISManager:Considerations
organiastional systems.
IScontributestoboththerevenueandexpense
sidesof
the
Balance
Sheet.
Need
to
consider
IS
Strategies.
Technologysupports
and
consumes
significant
resourcesofanorganization.Needtoevaluatenvestmentper ormancean n ormat onnee s.
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ITCapitalInvestmentITCapitalInvestment
, , ,communicationsequipment,grewfrom32%to51%between1980and2008.
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Totalinvestmentreachedonetrilliondollarsin2008,withover500
billion dollars of that invested in information technolo .
Whyit
is
that
the
percentage
of
total
investment
devoted
to
IT
has
increasedsomuchsince1980?
Otherkindsofcapitalinvestmentaremachineryandbuildings.
Whywould
firms
increase
IT
investment
faster
than
machinery
and
.
Capitalsubstitution:thepriceofITcapitalhasbeenfallingex onentiall whilethe riceofmachineandbuildin shasbeen
growingat
slightly
more
than
the
rate
of
inflation.
Whereverpossible,firmswouldmuchratherinvestinmoreITthan
greater. Whynotinvestintelework ITsystemsratherthanbuildingan
expensive
new
office
tower?
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VariationinReturnsonITInvestmentVariationinReturnsonITInvestmentAlthough,onaverage,investmentsintechnologyproducereturns
far
above
osere urne y
otherinvestments,thereisconsiderablevariationacrossfirms.
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Quadrant1re resentsfirmsthatinvestmuchlessinITbutstillreceivestrongreturns.
Quadrant2representsfirmsthatinvestagreatdealinITandreceiveagreatdealinreturns.
Quadrant3representsfirmsthatinvestmuchlessinITandreceive oorreturns.
Quadrant4representsfirmsthatinvestagreatdealinITbutreceivepoorreturns.
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Services)
Costs
of
Production ManagementCosts
CostsofInformation
Costsof
Market
Participation
&
Engagement
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FlatterOrganizationStructures
ommun ca on eac
Automated
Information
Access Decisionmakingcycletimes
TechnologyInteraction
NatureofWork
Teambasedcoordination&collaboration
MeasurementofEffort(trendtowardsdeliverables)
Consider:
Shifttowardknowledgebasedwork
ProductivityParadox:areemployeesmoreefficient?
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Culture: NormsandValuesthatguidebehaviour andpriorities
Learning Access
DeliveryMethods
Motivation Processofengagement
Change Process&Speedofchange