strategically leveraging information systems to transform business: trends, challenges and...

Strategically Leveraging Information Systems to Transform Business:

Trends, Challenges and Opportunities

Dr. Sean T. McGann

Our Central Questions

What is the strategic importance of IS?

Will the strategic importance if IS increase in the future?

What trends are driving the strategic importance of IS?

IS and Non-IS Professionals:Why you should care…

Strategic importance of IS is at an all time high

8-10% of revenues are spent on IS

IS is the platform of business

IS is the source of business intelligence

IS is the forum for global collaboration

IS creates strategic opportunity

IS has become a “competitive necessity”

Agenda

Introduction/Seminar Goals

Discussion of 4 Key IS Trends

Team Analysis Activity

Our IS Predictions

Background

BS Electronics Engineering - BGSU

MBA – Ohio University

PhD in Information Systems – Case Western Reserve

Andersen Consulting – Manager – IT Implementations

CEO – PogoNet Internet Solutions Inc.

Currently Independent IT Consultant & MIS Professor

Seminar Goals

Understand

• Establish baseline terminology• Clarify fundamental concepts

Discuss

• Leverage your expertise• Share knowledge and personal experience• Discuss illustrative examples

Analyze

• Apply concepts in context of businesses• Express your opinions• Discuss the future of business strategies

Information Systems Defined

IT

People

Processes IT

IS

Strategic Level Drivers

(Business Goals/KPIs)

Operational Level Drivers

(Process Problem Areas)

IS as a Strategic Driver

IT

People

Processes IT

IS

Strategic Level Drivers

(Business Goals/KPIs)

Operational Level Drivers

(Process Problem Areas)

Definition of a “Strategic” IS

Significant impact on the enterprise over the next 3 years

High potential for disruption to the business

Requires significant capital investment…$$$!

Competitive risk in being late to adopt

Definition of an IS Trend

An “IS Trend” is a general tendency or direction in business strategy and operations over time…resulting from the adoption and diffusion of Information Systems.

IS Trends for our Seminar

Cloud Computing

Social Networks & Analytics in Business

Wireless IT & Mobile Computing

IT Security

The Gartner Hype Cycle

Cloud Computing…experts say:Cloud Computing is at the “Peak of Inflated Expectations”

By 2014, 20% of businesses will own no significant IT Assets

Approximately 5% of global applications are currently in the cloud

At year-end 2016, more than 50 percent of Global 1000 companies will have stored customer-sensitive data in the public cloud.

Cloud Computing Analysis

Define the trend.

What are the opportunities it creates?

What are the challenges it presents?

What is your opinion of its strategic importance?

Cloud Computing Summary…

Strategic “Cost Force” and “Flexibility Force”

Creates IT capabilities and capacity quickly – HaaS & SaaS

Minimizes initial capital expenditures and ongoing maint. costs

Allows small and medium businesses to compete with large businesses

Creates new business opportunities for providers/aggregators/integrators

Security and privacy concerns are key challenges

Social Networks…experts say:

Social Analytics is nearing the “Peak of Inflated Expectations”

BY 2016, social IT will be integrated into most business software

Linked In IPO Value was $4.2 B

Facebook is preparing for an IPO that will value them at $100 B

Social Networking in Business Analysis

Define the trend.



What is your opinion of its importance?

Social Networking Summary…

Internal and External uses for businesses

Social networking, social collaboration, social publishing and social feedback

Professional Networking most common use (e.g. Linkedin)

Internal relationship building amongst colleagues

Product Development & marketing…direct interaction with customers/clients

Quick product feedback (e.g. sentiment analysis & blogs)…allows quick adjustments (e.g. iPhone)

Streamline communications/collaboration with colleagues and clients

Knowledge sharing internally and externally

Mixing personal and professional social networking can create issues

Wireless IT…experts say:

Tablet PCs are at the “Peak of Inflated Expectations”

BY 2013, mobile devices (smartphones/tablets) will overtake PCs as the primary web-access device

By 2014, there will be a 90% mobile penetration rate worldwide

By 2015, mobile app. development projects targeting smartphones and tablets will outnumber desktop PC projects by a ratio of 4-to-1.

By 2016, at least 50 percent of enterprise email users will rely primarily on a browser, tablet or mobile client instead of a desktop client.

Wireless IT & Mobile Computing Analysis

Define the trend.




Wireless & Mobile Summary…

Mobile commerce will be the dominant form of B2C

B2B mobile commerce increasing as B-apps are developed (e.g. CRM)

Smart phone/tablet capabilities and anytime/anywhere access are keys

Security and privacy concerns are key challenges

Context awareness will be a key factor for interaction & delivery

Goal is to enable real-time decision making at the point of interaction

IS Security…experts say:Through 2016, the financial impact of cybercrime will grow 10 percent per year, due to the continuing discovery of new vulnerabilities. At year-end 2016, more than 50 percent of Global 1000 companies will have stored customer-sensitive data in the public cloud.

IBM reports that in 2012, cyber thieves have already begun to successfully hack into cloud computing environments.

Attacks on mobile devices will double each year.

Social networks have become one of the primary sources of data for identity thieves.

By 2016, 40 percent of enterprises will make proof of independent security testing a precondition for using any type of cloud service.

IS Security Analysis

Define the trend.




IS Security Summary…

Many of our trends, also create significant IS security risks

IS Security in the age of interconnectivity and mobility is huge challenge

More sensitive info than ever being exchanged on the Internet

Social networks create an even larger threat to security & privacy

Hackers are becoming more sophisticated & more active

Threat of Cyberterrorism is significant (e.g. financial markets, energy grid)

My Predictions…• Globally, 30% of large businesses, 40% of medium businesses and 60% of small

businesses will run the majority of their enterprise, BI and collaboration systems via cloud computing within 10 years.

• IT budgets will decrease by 50% in the next 10 years.• US small businesses will lead the migration to the cloud.• The demand for IS analysts and integrators will triple, while the demand for

technicians will be cut in half in the next ten years. • AT&T will emerge as the leading cloud computing aggregator within the next 10

years.• Google and Amazon will emerge as the leading cloud service providers in the

next 5 years.• Google and Apple will provide intense drama as they clash for market share in

smartphones, mobile apps, operating systems/PCs, and internet advertising. This will change the face of consumer IT, especially mobile IT/commerce.

• Apple and Google will also battle for a foothold in social networks.

Our Central Questions

What is the strategic importance of IS?

Will the strategic importance if IS increase in the future?

What trends are driving the strategic importance of IS?

Your Predictions??

Final Analysis Activity

Pick any business and discuss their strategic goals & future IS/IT challenges/opportunities. What strategic recommendations would you make for them in each IS/IT trend area we discussed?Questions to consider in your analysis:

• Will they leverage Cloud Computing to increase their IT capabilities and capacity?• Should they integrate social networks into their business? If so, how?• How can they improve their businesses through wireless IT & mobile commerce?• What IT security vulnerabilities must they protect themselves from?

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