Role of IT_ Transformation

773 views

Published on

Published in: Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
773
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Role of IT_ Transformation

  1. 1. OUTSOURCINGIT OUTSOURCINGAPPLICATION DEVELOPMENTROLE OF IT IN BUSINESSBUSINESS TRANSFORMATION
  2. 2. Learning ObjectivesAt the completion of thissession you will be able to:• Explain the disruptive influence of technology• Describe how the role of Information Technology has evolved over the years• List the key features of Information Technology that have enabled it to become a catalyst for change• List some examples of business transformation through IT Learning Objectives
  3. 3. Topics Index1 Introduction: Technology as a disruptive force in business In this session we are going to: Evolving Role of Information Technology • Understand how Information2 Technology has transformed entire industries and enabled Enabling characteristics of Technology completely new ways of3 doing business4 Dell: Leveraging technology for a new business model5 Ebay: Taking the bazaar to every home6 Summary Topics Index
  4. 4. Introduction: Technology as a disruptive force in1 business In this section we are going to:2 Evolving Role of Information Technology • Look at a few examples of the disruptive influence of Technology and understand3 Enabling characteristics of Technology the trends behind it4 Dell: Leveraging technology for a new business model5 Ebay: Taking the bazaar to every home6 Summary Introduction: Technology as a disruptive force in business
  5. 5. Encyclopedia Britannica• Encyclopedia Britannica was the market leader in the home encyclopedia industry• In 1990, the company had sales of USD 650 million from its print- bound edition• In just 5 years, sales of the print- bound edition dropped by almost 80%! Introduction: Technology as a disruptive force in business
  6. 6. Newspaper Classified Advertisements• For a long time, Classified Advertisements was a significant share of newspaper revenues• The US Newspaper classified advertisement revenue peaked at USD 16 billion in 2005• By 2009 (in just 4 years) this number dropped by 70% to just USD 5 billion in 2009 Introduction: Technology as a disruptive force in business
  7. 7. Emerging trends as DisruptorsEmerging technology trends can disrupt entireindustries by enabling new ways of doing business Introduction: Technology as a disruptive force in business
  8. 8. Emerging trends as Disruptors • The democratization of technology • The democratization of information Introduction: Technology as a disruptive force in business
  9. 9. The democratization of technology & information • Personal Computers have become more affordable due to the drop in their prices and more useful due to increase in their capability • The explosive growth of the These trends have enabled Internet has made businesses to information sources reach consumers and services in new and more accessible for powerful ways consumers Introduction: Technology as a disruptive force in business
  10. 10. Encyclopedia Britannica The drop in Players like prices and Encarta gave increase in away the CD- capacity of CD- ROM edition free ROMS created with Personal competition for Computers. The the print-bound encyclopedia editions cost industry. almost US The market for $2,000. the print-bound edition shrank almost overnight! Introduction: Technology as a disruptive force in business
  11. 11. Classified Advertisements • A company called Craigslist started FREE online classified advertisements • With personal computers and the Internet reaching a large number of people, the reach of Craigslist became large enough to be The newspaper attractive to advertisers classified advertisement market shrank almost overnight! Introduction: Technology as a disruptive force in business
  12. 12. Thomas Friedman on Globalization Introduction: Technology as a disruptive force in business
  13. 13. Introduction: Technology as a disruptive force in business1 Evolving Role of Information Technology In this section we are going to:2 • Look at how the role of Information Technology has3 Enabling characteristics of Technology evolved over the years4 Dell: Leveraging technology for a new business model5 Ebay: Taking the bazaar to every home6 Summary Evolving Role of Information Technology
  14. 14. Ganesh Natarajan on the Role of IT Evolving Role of Information Technology
  15. 15. Evolving Role of IT – Recap Localized Exploitation – automate a part of a business process Cross Functional Integration – automate business processes and functions Network Reconfiguration – Integrate a network of businesses Business Scope Redefinition – IT solution itself can become a product or service Evolving Role of Information Technology
  16. 16. Technology will not solve all problems! Evolving Role of Information Technology
  17. 17. Technology enabled revenue growth is the new mantra • Traditionally IT has been tasked with improving profitability by driving cost reduction • C-level executives, particularly CEOs now expect IT to improve top-line by driving revenue growth • Therefore IT is now a participant and leader in business strategy and planning Evolving Role of Information Technology
  18. 18. Introduction: Technology as a disruptive force in business1 In this section we are going to:2 Evolving Role of Information Technology • Understand the key features of Information Technology that have enabled it to3 Enabling characteristics of Technology become a catalyst for change4 Dell: Leveraging technology for a new business model5 Ebay: Taking the bazaar to every home6 Summary Enabling characteristics of Technology
  19. 19. Enabling Characteristics of Technology Mass Personalization Mass participation A truly global through online marketplace communities Reach and Speed have enabled: Enabling characteristics of Technology
  20. 20. Introduction: Technology as a disruptive force in business1 In this section we are going to:2 Evolving Role of Information Technology • Discuss how Dell Inc. transformed the Personal Computer market through3 Enabling characteristics of Technology the use of technology4 Dell: Leveraging technology for a new business model5 Ebay: Taking the bazaar to every home6 Summary Dell: Leveraging technology for a new business model
  21. 21. DISCUSSIONHow has Dell transformed the computerretail industry? Dell: Leveraging technology for a new business model
  22. 22. The Dell Way – key questions What did the traditional personal computer retail industry look like? What opportunity did Dell recognize? What were the key differences in Dell’s approach? What role did technology play in enabling Dell to exploit the opportunity and transform the market? Dell: Leveraging technology for a new business model
  23. 23. The Dell Way – SummaryThe five tenets of the direct model Dell adoptsare: –Most Efficient Path to the Customer –Single Point of Accountability –Build-to-Order –Low-Cost Leader –Standards-Based TechnologyDell has applied the efficiencies of the Internet toleverage this model Dell: Leveraging technology for a new business model
  24. 24. Introduction: Technology as a disruptive1 force in business In this section we are going to:2 Evolving Role of Information Technology • Look at a few examples of the disruptive influence of Technology and understand3 Enabling characteristics of Technology the trends behind it4 Dell: Leveraging technology for a new business model5 Ebay: Taking the bazaar to every home6 Summary Ebay: Taking the bazaar to every home
  25. 25. DISCUSSIONHow has ebay used technology totransform the auction industry? Dell: Leveraging technology for a new business model
  26. 26. The ebay model – key questions What did the traditional auctions industry look like?What could one buy and sellthrough auctions? What opportunity did ebayWhat role did technology play recognize?in enabling ebay to exploit theopportunity and transform themarket? Ebay: Taking the bazaar to every home
  27. 27. The ebay Story – SummaryEbay’s mission is to create the “world’slargest online marketplace”.The core principles are:• Create a large user-base around the world• Create an environment of trust• Foster a strong sense of community• Sense of Fun!ebay has used the reach and efficiencyof the Internet to achieve its objective Ebay: Taking the bazaar to every home
  28. 28. Summing UpTechnology can help transform a business or an entireindustryTechnology enables such transformation due to its reach,speed, and cost efficiencyBusinesses must constantly evaluate emerging technologytrends to think of new ways of doing businessThe CIO must participate in business strategy and planning Ebay: Taking the bazaar to every home
  29. 29. References• Amazon.com CTO writeup on AWS:http://gigaom.com/2010/02/01/amazon-cto-werner-vogels-on-amazon%E2%80%99s-web-services-startups-and-innovation/• The CIO’s opportunity to transform transformation:http://www.pwc.com/us/en/technology-forecast/winter2010/cios-opportunity-to-transform-transformation.jhtml• The Power of IT in business tranformation:http://ezinearticles.com/?The-Power-of-Information-Technology-in-Business-Transformation&id=2477661• Rethinking IT and business transformation success:http://www.zdnet.com/blog/projectfailures/rethinking-it-and-business-transformation-success/8957
  30. 30. Thank You

×