• Know what are the main drivers of innovation in IT • Understand how innovations spread • •Understand impact of firms innovating with IT • •Get an overview of some recent innovations driven by IT 1.Industry transformation 2.Diversity and variety 3.Personalisation 4.Experimentation 5.Plug-and-play innovations 6.New marketing opportunities 7.Use of smart technologies 8.Natural language interfaces 9.Analytics 10.Crowd sourcing

1. Rahul De
Copyright © 2018 by Wiley India Pvt. Ltd., 4436/7, Ansari Road, Daryaganj, New Delhi-110002
MIS
MANAGING INFORMATION SYSTEMS IN BUSINESS,
GOVERNMENT AND SOCIETY

2. MIS : Managing Information Systems in Business, Government and Society by Rahul De
Copyright © 2018 by Wiley India Pvt. Ltd., 4436/7, Ansari Road, Daryaganj, New Delhi-110002
LEARNING OBJECTIVES
• Know what are the main drivers of innovation in IT
• Understand how innovations spread
• •
•
Understand impact of firms innovating with IT
• •
•
Get an overview of some recent innovations driven by IT
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3. MIS : Managing Information Systems in Business, Government and Society by Rahul De
Copyright © 2018 by Wiley India Pvt. Ltd., 4436/7, Ansari Road, Daryaganj, New Delhi-110002
MIND MAP OF CHAPTER TOPICS
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4. MIS : Managing Information Systems in Business, Government and Society by Rahul De
Copyright © 2018 by Wiley India Pvt. Ltd., 4436/7, Ansari Road, Daryaganj, New Delhi-110002
INNOVATION THEORY
Moore’s Law
• He predicted that the growth of semiconductors (electronic components such as
diodes, resistors and transistors, are made with ‘semiconducting material’ and are
referred to as semiconductors) would be steady for many decades. Known as Moore’s
law, the prediction was that the number of transistors packed into integrated circuits
would double almost every two years.
• The law was found to be effective in its predictions and the number of transistors
indeed doubled on the integrated circuit, which later became a computer chip.
• The consequence of Moore’s law is a tremendous growth in the power and capacity of
the basic computing hardware that drives innovation.
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5. MIS : Managing Information Systems in Business, Government and Society by Rahul De
Copyright © 2018 by Wiley India Pvt. Ltd., 4436/7, Ansari Road, Daryaganj, New Delhi-110002
INNOVATION THEORY
Disruptive Innovation
• The idea of disruptive innovation was developed by Clayton Christensen in 1997.
• An example of this is digital cameras that were introduced in world markets in the mid-
1990s.
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6. MIS : Managing Information Systems in Business, Government and Society by Rahul De
Copyright © 2018 by Wiley India Pvt. Ltd., 4436/7, Ansari Road, Daryaganj, New Delhi-110002
INNOVATION THEORY
Creative Destruction
• Innovative change in the economy is often referred to as ‘creative destruction.’
• This term also refers to the new situations brought forth by changes in the economy
and political landscape where entire businesses and industries disappear to make
way for newer businesses and models.
• This concept is attributed to the German economist Joseph Schumpeter who coined
this phrase, drawing on the works of Karl Marx, to explain the constant change and
chaos in capitalist industrial societies.
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7. MIS : Managing Information Systems in Business, Government and Society by Rahul De
Copyright © 2018 by Wiley India Pvt. Ltd., 4436/7, Ansari Road, Daryaganj, New Delhi-110002
INNOVATION THEORY
Diffusion of Innovation
The theory of diffusion of innovations, as proposed by Rogers (1983), states that there
are four elements that enable the process of diffusion. These are:
1. An innovation – a new idea.
2. Communication channels − which are the media or means by which the information about the new idea is shared by
people.
3. Time – the period over which the innovative idea spreads.
4. A social system − which is a combination of elements in a society that encourages or inhibits the innovation.
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8. MIS : Managing Information Systems in Business, Government and Society by Rahul De
Copyright © 2018 by Wiley India Pvt. Ltd., 4436/7, Ansari Road, Daryaganj, New Delhi-110002
INNOVATION IMPACT
Innovation and Competition
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• Research shows that to remain competitive, commercial firms have to innovate with
IT and have to develop new ways of doing business that is superior to that of the
competition.
• Two researchers, Brynjolfsson and McAfee, in a study published in 2008, showed that of all
US companies in the period 1960 to 2005, the ones that gained the greatest competitive
advantage did so on the basis of use of IT.
• This phenomena was particularly sharp after the mid-1990s since it was at that time that
companies started using IT extensively, along with the presence of the commercial
internet, and did so for strategic reasons. Competitive advantage here implies that firms
are able to take market share away from rivals, and are thus able to achieve higher growth
and better profits.

9. MIS : Managing Information Systems in Business, Government and Society by Rahul De
Copyright © 2018 by Wiley India Pvt. Ltd., 4436/7, Ansari Road, Daryaganj, New Delhi-110002
INNOVATION IMPACT
Innovation Waves
• With the massive scale and pace of innovations in IT, one challenge managers face is that
of deciding which of the innovations are sound and can be investigated further, versus
innovations that are a flash and may disappear.
• Once an idea breaks the surface, the innovators articulate an organising vision for the
community.
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10. MIS : Managing Information Systems in Business, Government and Society by Rahul De
Copyright © 2018 by Wiley India Pvt. Ltd., 4436/7, Ansari Road, Daryaganj, New Delhi-110002
TYPES OF BUSINESS INNOVATIONS WITH IT
• New business models focus on providing value to customers through different ways of
doing business.
• Some types of business innovations using IT are:
1.Industry transformation
2.Diversity and variety
3.Personalisation
4.Experimentation
5.Plug-and-play innovations
6.New marketing opportunities
7.Use of smart technologies
8.Natural language interfaces
9.Analytics
10.Crowd sourcing
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11. MIS : Managing Information Systems in Business, Government and Society by Rahul De
Copyright © 2018 by Wiley India Pvt. Ltd., 4436/7, Ansari Road, Daryaganj, New Delhi-110002
MANAGEMENT ISSUES: CHALLENGES FOR MANAGERS
With the advent of massive innovation in IT and the transformations that they are
bringing about, many management challenges emerge:
• Prices and margins
• Talent shortage
• Global presence
• Risk-taking abilities
• Integration of online and offline models
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