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Issues in the Application of Information Technology for Strategic ...

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  • 1. MBA Essentials Information Technology for Strategic, Competitive Advantage Virginia Franke Kleist, Ph.D. Assistant Professor Division of MIS/Management
  • 2. Welcome to the Technology Part of the Program
    • How are you using information technology (IT) today in your firms and businesses?
    • How successful has this been for your firm?
    • Do you have problems that are still unresolved with Information Technology?
    • Can IT give competitive advantage, anyway?
    • How can one identify which technologies will best give strategic advantage?
  • 3. Contact Information
    • Virginia Franke Kleist, Ph.D.
    • [email_address]
    • www.be.wvu.edu/divmim/mgmt/kleist
    • 304-293-7939
    • I welcome your comments and contacts!
    • Several drawings are adapted from Laudon and Laudon, (2005), Management Information Systems: Managing the Digital Firm , New Jersey: Prentice Hall (8 th ed.).
    • Some material adapted from Burgelman, Christensen and Wheelwright, (2004), Strategic Management of Technology and Innovation , Boston: McGraw-Hill Irwin (4 th ed.).
  • 4.  
  • 5.  
  • 6. What will we learn?
    • Strategic advantage from information technology
    • Latest information technologies
    • How do you successfully select, implement and manage a new IT?
    • How can your firm benefit from IT?
  • 7.  
  • 8. Strategic Information Systems
  • 9. Strategic Information System
    • Technology used to gain an edge over an organization’s competition
    • Can be used at all levels of an organization or just a few
    • Makes a difference
    • Profoundly alters the way an organization does business
    • Sustained strategic, competitive advantage
  • 10. Examples of Strategic Information Systems
    • American Airlines
    • Fed Ex
    • Citibank
    • Wal-Mart
    • Abitibi Consolidated
    • Simonton Windows (SBR)
    • USA Today
    • Benetton
    • Sheetz
    • PNC Corporation
    • PriceWaterhouse Coopers
    • Baxter Healthcare
  • 11.  
  • 12. Four types of Information Systems
    • Operational
    • Decision Support
    • Managerial
    • Executive
    • Decision-making becomes more complex the more executive the level
    • Operational systems have been around a long time and tend to have good ROI’s
  • 13.  
  • 14. Current Technologies for Strategic Information Systems
  • 15. What are the latest technologies of interest?
    • CPU’s and software, open source code
    • Client server computing
    • Interactive multimedia
    • Developments in Electronic Commerce
    • TCP/IP and the Internet
    • Databases and Datamining
    • Handhelds, M-commerce
    • Knowledge Management tools and Artificial Intelligence
  • 16.  
  • 17.  
  • 18. Technologies: CPU’s and Software
    • Hardware components of a computer system
    • Buses, CPUs, MHz, RAM, Gigs and cache
    • Bits and Bytes, storage
    • Moore’s Law and price points per MIPs
    • Mainframes, RISC computers, Parallel processing
    • Open source movement in operating systems
    • Enterprise Resource Planning software
    • Object oriented programming
  • 19.  
  • 20. Technologies: Client Server Computing
    • Distributed processing vs. centralized processing
    • Network computing
    • Servers
    • Bridges and routers, gateways
    • Network management
    • Ethernet and Token Ring
  • 21. Technologies: Interactive Multimedia
    • Groupware
    • Voice over IP
    • Streaming technology
    • Flash
    • MP3
    • Seeing corporate uses in training applications
  • 22. History of Technology
    • 1960s: Mainframe computers, MIS not superb at meeting budgets or deadlines
    • 1980s: First PCs emerge, beginning of schism between departments and centralized MIS
    • 1990s: MIS and departments work together well, networks key techno
    • 2000: Enterprise networks
    • Next: Vice Presidents of Electricity?
  • 23. Technologies: Electronic Commerce
    • The client/server/database three tier model
    • HTML, JavaScript
    • XML vs. EDI, ASP and ActiveX, PHP, CGI
    • Web Services
    • Interdev and development tools
    • Security and encryption issues
    • Intranets and Extranets
  • 24. Technologies: TCP/IP and the Internet
    • Codes, bits and bytes
    • Analog vs. Digital transmission
    • Packet switching and circuit switching
    • The IP address, TCP/IP layers
    • The world is becoming digital
    • VoIP
  • 25.  
  • 26.  
  • 27.  
  • 28.  
  • 29. Technologies: Databases, Datamining
    • Data is the company’s strategic asset
    • Data warehouses, multidimensional databases and data marts
    • Informix, Oracle and Red Brick
    • The database management system
    • Data mining is a type of software application that finds patterns in data that can guide decision-making
    • Data mining allows focused differentiation and the ability to narrow target markets
  • 30.  
  • 31.  
  • 32. Technologies: Handhelds and M- Commerce
    • Cellular technology
    • WAP technology
    • Handheld market and applications
    • The Win CE platform
    • Linux in the small devices
    • What is M-commerce and what does it mean to me?
  • 33.  
  • 34. Technologies: Knowledge Management Tools and Artificial Intelligence
    • Examples of Knowledge Management systems
    • Expert systems: the earthenware dam
    • Neural Networks
    • Fuzzy logic
    • Intelligent agents
  • 35. Technologies: Wireless
    • 802.11b, a and g
    • Weaknesses in security in wireless
    • Access points
    • Use firewalls behind access point
    • Netstumbler and war driving
  • 36. Managing for Information Systems Strategic Advantage
  • 37. Management: Information Systems Planning
    • IS plan maps to the corporate strategic plan
    • Variety of IS planning styles: CSF, Enterprise Planning
    • Components of Information Systems Strategic Plan
    • Organizational change from systems: TQM, BPR, paradigm shifts or simple automation
  • 38. Management: the Systems Development Life Cycle
    • Systems analysis
    • Systems design
    • Programming
    • Testing
    • Conversion
    • Production mode and ongoing maintenance
  • 39.  
  • 40. Management: IS Strategic Plan
    • Purpose linked to strategy
    • Current situation
    • Systems: What do you have, what will you need to meet future
    • New developments in corporation
    • Management strategies with techno: Bleeding edge, leading edge, lagging edge, single vendor strategy, outsource
  • 41.  
  • 42. Management: Implementation
    • The RFP document
    • Financial issues for IS planning
    • The payback concerns
    • Programming: the mythical man/month
    • Construction issues
    • Testing and maintenance
    • End users
    • Prototypes and pilots
    • Outsourcing
  • 43. Management: Security Issues
    • System quality, reliability, accuracy
    • Threats: hackers, viruses, Trojan horses, denial of service attacks, identity theft
    • Controls
    • The firewall and internet issues Encryption, DES, SSL, SET
    • Biometrics
  • 44.  
  • 45. Management: Legal Issues with Information
    • HIPAA. Health Insurance Portability and Accountability Act, 1996
    • Gramm-Leach-Bliley Act, 1999
    • Sarbanes-Oxley Act of 2002
  • 46. Strategic Advantage: IT at work
    • IT and changes in the organization of business: flatter, leaner, teams, JIT, global
    • Datamining and Walmart
    • E-commerce and the supply chain at Dell
    • M-commerce and Progressive Auto
    • Internet and Egghead
    • American Airlines, Baxter, Citibank
  • 47. Strategic Advantage: How does one come up with this idea, anyway? (Laudon and Laudon, 2000)
    • Porter’s Value Chain: primary and support activities
    • The competitive forces model: Threats from new market entrants, suppliers, substitute products and customers
    • Core competencies
    • Network economics
  • 48.  
  • 49.  
  • 50. Some Problems from IT for Competitive Advantage
    • The productivity paradox
    • Tangible vs. intangible benefits from IT
    • Future cash flows analysis
    • Unique vs. staying even with competition
    • Value from simple automation projects
    • Value from highly risky, but strategic IT projects
    • Risk vs. return issues
  • 51. Technology Life Cycle (Little, 1981)
    • Emerging techno- Not demonstrated potential
    • Packing techno- Has demonstrated potential
    • Key techno- Embedded, major impact, proprietary
    • Base techno- Minor impact
    • Can a technology cause innovation? Leadership?
  • 52.  
  • 53.  
  • 54.  
  • 55. How can your firm benefit from IT?
    • In supply chain management through inventory management
    • In the customer interface via ecommerce
    • In logistics through GPS/GIS
    • In client management through groupware
    • In marketing through datamining
    • In internal management through Intranets
  • 56.  
  • 57.  
  • 58. Class Discussion: The Dell Case
    • How did Dell achieve success?
    • What IT technologies did Dell use?
    • How does Dell use ecommerce successfully?
    • What are the ways that Dell uses IT for strategic, competitive advantage?
    • What is Dell’s business model?
    • Will Dell be able to keep this success going, given the recent troubles?
  • 59. What have we learned?
    • Strategic advantage from information technology
    • Latest information technologies
    • How do you successfully select, implement and manage a new IT?
    • How can your firm benefit from IT?

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