Issues in the Application of Information Technology for Strategic, Competitive Advantage Virginia Franke Kleist, Ph.D. Ass...
Welcome to the Technology Part of the Program <ul><li>How are you using information technology (IT) today in your firms an...
Introduction <ul><li>What are the latest information technologies of interest, and how are these being applied in business...
What are the latest technologies of interest? <ul><li>CPU’s and software, open source code </li></ul><ul><li>Client server...
Technologies:  CPU’s and Software <ul><li>Hardware components of a computer system </li></ul><ul><li>Buses, CPUs, MHz, RAM...
Technologies:  Client Server Computing <ul><li>Distributed processing vs. centralized processing </li></ul><ul><li>Network...
Technologies:  Storage Area Networks <ul><li>Mirrors and provides redundancy </li></ul><ul><li>Fibre channel connectivity ...
Technologies:  Interactive Multimedia <ul><li>Groupware </li></ul><ul><li>Voice over IP  </li></ul><ul><li>Streaming techn...
Technologies:  Electronic Commerce <ul><li>The client/server/database three tier model </li></ul><ul><li>HTML, JavaScript ...
Technologies:  TCP/IP and the Internet <ul><li>Codes, bits and bytes </li></ul><ul><li>Analog vs. Digital transmission </l...
Technologies:  Databases, Datamining <ul><li>Data is the company’s strategic asset (PWC) </li></ul><ul><li>Data warehouses...
Technologies:  Handhelds and M- Commerce <ul><li>How does a cell phone work? </li></ul><ul><li>WAP technology </li></ul><u...
Technologies:  Knowledge Management Tools and Artificial Intelligence <ul><li>Examples of Knowledge Management systems </l...
Management:  Information Systems Planning <ul><li>IS plan maps to the corporate strategic plan </li></ul><ul><li>Variety o...
Management:  the Systems Development Life Cycle <ul><li>Systems analysis </li></ul><ul><li>Systems design </li></ul><ul><l...
Management: Implementation <ul><li>The RFP document </li></ul><ul><li>Financial issues for IS planning </li></ul><ul><li>T...
Management: Security Issues  <ul><li>System quality, reliability, accuracy </li></ul><ul><li>Data security controls </li><...
Strategic Advantage:  IT at work <ul><li>IT and changes in the organization of business:  flatter, leaner, teams, JIT, glo...
Strategic Advantage:  How does one come up with this idea, anyway? (Laudon and Laudon, 2000) <ul><li>Porter’s Value Chain:...
Some Problems from IT for Competitive Advantage <ul><li>The productivity paradox </li></ul><ul><li>Tangible vs. intangible...
How can your firm benefit from IT? <ul><li>In supply chain management through inventory management </li></ul><ul><li>In th...
Class Discussion:  The Dell Case <ul><li>How did Dell achieve success? </li></ul><ul><li>What IT technologies did Dell use...
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Issues in the Application of Information Technology for ...

  1. 1. Issues in the Application of Information Technology for Strategic, Competitive Advantage Virginia Franke Kleist, Ph.D. Assistant Professor Division of MIS/Management
  2. 2. Welcome to the Technology Part of the Program <ul><li>How are you using information technology (IT) today in your firms and businesses? </li></ul><ul><li>How successful has this been for your firm? </li></ul><ul><li>Do you have problems that are still unresolved with Information Technology? </li></ul><ul><li>Can IT give competitive advantage, anyway? </li></ul><ul><li>How can one identify which technologies will best give strategic advantage? </li></ul>
  3. 3. Introduction <ul><li>What are the latest information technologies of interest, and how are these being applied in business today? </li></ul><ul><li>How do you successfully select, implement and manage a new IT? </li></ul><ul><li>Strategic advantage from information technology </li></ul><ul><li>The .com fiasco, or can you make the web work for you? </li></ul><ul><li>Some problems with IT for competitive advantage </li></ul><ul><li>How can your firm benefit from IT? </li></ul>
  4. 4. What are the latest technologies of interest? <ul><li>CPU’s and software, open source code </li></ul><ul><li>Client server computing </li></ul><ul><li>Storage area networks </li></ul><ul><li>Interactive multimedia </li></ul><ul><li>Developments in Electronic Commerce </li></ul><ul><li>TCP/IP and the Internet </li></ul><ul><li>Databases and Datamining </li></ul><ul><li>Handhelds, M-commerce </li></ul><ul><li>Knowledge Management tools and Artificial Intelligence </li></ul>
  5. 5. Technologies: CPU’s and Software <ul><li>Hardware components of a computer system </li></ul><ul><li>Buses, CPUs, MHz, RAM, Gigs and cache </li></ul><ul><li>Bits and Bytes, storage </li></ul><ul><li>Moore’s Law and price points per MIPs </li></ul><ul><li>Mainframes, RISC computers, Parallel processing </li></ul><ul><li>Open source movement in operating systems </li></ul><ul><li>Enterprise Resource Planning software </li></ul><ul><li>Object oriented programming </li></ul>
  6. 6. Technologies: Client Server Computing <ul><li>Distributed processing vs. centralized processing </li></ul><ul><li>Network computing </li></ul><ul><li>Servers </li></ul><ul><li>Bridges and routers, gateways </li></ul><ul><li>Network management </li></ul><ul><li>Ethernet and Token Ring </li></ul>
  7. 7. Technologies: Storage Area Networks <ul><li>Mirrors and provides redundancy </li></ul><ul><li>Fibre channel connectivity </li></ul><ul><li>EMC, Compaq, HP </li></ul><ul><li>Fits with trend to pushing density of corporate data further out into the “cloud” network </li></ul>
  8. 8. Technologies: Interactive Multimedia <ul><li>Groupware </li></ul><ul><li>Voice over IP </li></ul><ul><li>Streaming technology </li></ul><ul><li>Flash </li></ul><ul><li>MP3 </li></ul><ul><li>Seeing corporate uses in training applications </li></ul>
  9. 9. Technologies: Electronic Commerce <ul><li>The client/server/database three tier model </li></ul><ul><li>HTML, JavaScript </li></ul><ul><li>XML vs. EDI </li></ul><ul><li>ASP and ActiveX, PHP, CGI </li></ul><ul><li>Interdev and development tools </li></ul><ul><li>Security and encryption issues </li></ul><ul><li>Intranets and Extranets </li></ul>
  10. 10. Technologies: TCP/IP and the Internet <ul><li>Codes, bits and bytes </li></ul><ul><li>Analog vs. Digital transmission </li></ul><ul><li>Packet switching and circuit switching </li></ul><ul><li>The IP address, TCP/IP layers </li></ul><ul><li>Domain name resolution </li></ul><ul><li>The world is becoming digital </li></ul><ul><li>Physical vs. Logical connectivity </li></ul>
  11. 11. Technologies: Databases, Datamining <ul><li>Data is the company’s strategic asset (PWC) </li></ul><ul><li>Data warehouses, multidimensional databases and data marts </li></ul><ul><li>OLAP vs. OLTP processing </li></ul><ul><li>Informix, Oracle and Red Brick </li></ul><ul><li>The database management system </li></ul>
  12. 12. Technologies: Handhelds and M- Commerce <ul><li>How does a cell phone work? </li></ul><ul><li>WAP technology </li></ul><ul><li>Palm and Visor </li></ul><ul><li>The Win CE platform </li></ul><ul><li>Linux in the small devices </li></ul><ul><li>EPOC operating system </li></ul><ul><li>What is M-commerce and what does it mean to me? </li></ul>
  13. 13. Technologies: Knowledge Management Tools and Artificial Intelligence <ul><li>Examples of Knowledge Management systems </li></ul><ul><li>Expert systems: the earthenware dam </li></ul><ul><li>Neural Networks </li></ul><ul><li>Fuzzy logic </li></ul><ul><li>Intelligent agents </li></ul>
  14. 14. Management: Information Systems Planning <ul><li>IS plan maps to the corporate strategic plan </li></ul><ul><li>Variety of IS planning styles: CSF, Enterprise, other formal structures </li></ul><ul><li>Plan itself: What are the components? </li></ul><ul><li>Organizational change from systems: TQM, BPR, paradigm shifts or simple automation? </li></ul>
  15. 15. Management: the Systems Development Life Cycle <ul><li>Systems analysis </li></ul><ul><li>Systems design </li></ul><ul><li>Programming </li></ul><ul><li>Testing </li></ul><ul><li>Conversion </li></ul><ul><li>Production mode and ongoing maintenance </li></ul>
  16. 16. Management: Implementation <ul><li>The RFP document </li></ul><ul><li>Financial issues for IS planning </li></ul><ul><li>The payback concerns </li></ul><ul><li>Programming: the mythical man/month </li></ul><ul><li>Construction issues </li></ul><ul><li>testing and maintenance </li></ul><ul><li>end users </li></ul><ul><li>prototypes and pilots </li></ul><ul><li>outsourcing </li></ul>
  17. 17. Management: Security Issues <ul><li>System quality, reliability, accuracy </li></ul><ul><li>Data security controls </li></ul><ul><li>The firewall and internet issues (hackers, viruses, trojan horses, denial of service attacks) </li></ul><ul><li>Encryption, DES, SSL, SET </li></ul><ul><li>Biometrics </li></ul>
  18. 18. Strategic Advantage: IT at work <ul><li>IT and changes in the organization of business: flatter, leaner, teams, JIT, global </li></ul><ul><li>Datamining and Walmart </li></ul><ul><li>E-commerce and the supply chain at Dell </li></ul><ul><li>M-commerce and Progressive Auto </li></ul><ul><li>Internet and Egghead </li></ul><ul><li>American Airlines, Baxter, Citibank </li></ul>
  19. 19. Strategic Advantage: How does one come up with this idea, anyway? (Laudon and Laudon, 2000) <ul><li>Porter’s Value Chain: primary and support activities </li></ul><ul><li>The competitive forces model: Threats from new market entrants, suppliers, substitute products and customers </li></ul><ul><li>Core competencies </li></ul><ul><li>Network economics </li></ul>
  20. 20. Some Problems from IT for Competitive Advantage <ul><li>The productivity paradox </li></ul><ul><li>Tangible vs. intangible benefits from IT </li></ul><ul><li>Future cash flows analysis </li></ul><ul><li>Unique vs. staying even with competition </li></ul><ul><li>Value from simple automation projects </li></ul><ul><li>Value from highly risky, but strategic IT projects </li></ul><ul><li>Risk vs. return issues </li></ul>
  21. 21. How can your firm benefit from IT? <ul><li>In supply chain management through inventory management </li></ul><ul><li>In the customer interface via ecommerce </li></ul><ul><li>In logistics through GPS/GIS </li></ul><ul><li>In client management through groupware </li></ul><ul><li>In marketing through datamining </li></ul><ul><li>In internal management through Intranets </li></ul>
  22. 22. Class Discussion: The Dell Case <ul><li>How did Dell achieve success? </li></ul><ul><li>What IT technologies did Dell use? </li></ul><ul><li>How does Dell use ecommerce successfully? </li></ul><ul><li>What are the ways that Dell uses IT for strategic, competitive advantage? </li></ul><ul><li>What is Dell’s business model? </li></ul><ul><li>Will Dell be able to keep this success going, given the recent troubles? </li></ul>

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