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Trends & IT Challenges

Business Today

ChangingBusinessClimate

DoingBusinessinDigital Economy

IT Developments & Trends

New Technologies To Wait orNot ToWait

Organizational Responses & I.M. Today IT & Organizational Activities

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Fundamentals of Information

Management

The three strands of Business Information Management (Information,

People and Technology resources)

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Business Information

Management

The process of actively managing information as

a strategic resource for improving organizationalperformance.

This process involves developing strategies and

introducing systems and controls to improveinformation quality to deliver value.

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Business Today

Effectiveuse of computersin business today isa changing art, not a science.What worked perfectly well for your companyyesterday might not beso effective today

and could be dead wrong by tomorrow. Every $1 that changeshandsin business IT is

used/involved.Business & IT areveryintertwined.

Business computing today is confusing,complicated and chaotic.It is also compulsory.

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Changing Business Climates

Managerswho understand the changingbusiness climates & trends, and theirrelationshipswith technology, willmake better

decisions.

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Changing Business Climates(cont)

Organizations areBecoming KnowledgeBased

Todays knowledge-based economy

PeterDruckersays :

In thissociety, knowledgeis the primary source forindividuals and for theeconomy overall. Land, labor and capital theeconomists traditional factors of productions do notdisappear, but they becomesecondary. They can be obtained,and obtained easily, provided thereisspecialized knowledge.

You caneasily buy bricks, buildings or otherhardassets

but youneed knowledge to buy and use themwisely.

Manage theintellectual capital of orgs.

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Knowledgein Many Disciplines Has a Shelf Life

Knowledge can quickly becomes outdated

consumer trends change, competitorsenter & leavemarkets, paradigms (theoretical frameworks)shift.

Knowledgehas to beupdated and renewed.

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Flattening ofOrganizations

Most of todayslarge companieswere developedyears ago communicationswerelimited & no

computers military-aspired hierarchical commandstructure.

Orgs areleaner optimalhierarchies

(eg. EastmanChemicalCo. :

1994, USD$3.3 billion revenue, 24,000 full-timeemployees

2002, USD$5.3 billion revenue, 15,800 employees.

Now, easy to share data, IT offers ability to alter theway companies are organized, structured &managed.

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Globalization WillDrive Technology Adoption

Thegood news :

companies find newmarkets for their products/ services

Geographic borders do not have to beeconomic boundaries.

Globalstrategies requireextensive communication &collaboration.

The bad news :

More demanding global customers many new & strongerglobal competitors

IT enables communication, product design, systemdevelopment & programming, sales & marketing

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CompetitivePressures

Companiesin the past had many excuses for theirbad performances or bankruptcies.

The truth

their competition beat them by adopting better operatingpractices and betterIT.

In order to competesuccessfully, new productsmustbe brought to market quickly.

Companiesneed aninfrastructure ofelectronic dataflow & communications, and theiremployeesneed to

be trained to use thisinformationnetwork effectively.

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Power Shift From Sellers to Buyers

Improved buyerinformation and choice

Increased buyerexpectations

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Time to Market

New consumer & business desires : theneed for

speed. Examples:

Instant photos, one-houreyeglasses, fast bank loanapprovals.

People are finding that timeis a competitiveissue.ITplays a major role to reduce time to market.

Speed is king : need for real-time operations, real-timeinfrastructure real-timeenterprises.

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Team-based Structure & Workgroups

When the right computers and communication tools areused,workgroups based on talent & expertise (not geographicalconvenience) can be formed. The teammembersmay span from

different countriesin theworld.

Cross functional teams are adopted.

With collaborative teamwork across distance

Example:

Lockheed Martin Aeronautics developed real-timesystem forproduct design & engineeringwithBAE & Northrup Grumman

drawing : from 400 hoursnow takes 125 hours

design phase of projects cut inhalf)

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Employee Empowerment

To empoweremployees to make decisions

give theminformation.

Empowered employees producemore and higher-qualitywork inless time.

Managersmust encourageemployeeinnovation and creativity

nothingissafe fromhighly innovative competitors.

Managersmust create theenvironment for creativity.

Freeworkers tend to bemore creative and productivethan those closely supervised.

Companiesmust allow forexperimentalerrors.

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VirtualCorporations areForming

Organizations bringin talents from all over theworldjust to dealwith the task at hand, and then disband.Theseexpertsmay ormay not beemployees of theorganization, internal & external.

Anytime, AnyplaceInformation Work

Work fromhome, from anywhere

Work isleisure, leisureiswork

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InformationOverload Accessibility, navigating & managing of relevant data,

info & knowledgeis crucial

InformationIntegration Enterprise applicationsmust interact with databases,

applicationservers, content mgmt systems, DW,workflowsystems, searchengines, message queues,mining and analysis packages, and otherenterpriseintegration applications.

Use a variety of programminginterfaces &understand a variety oflanguages and formats. Mustextract and combine data inmultiple formats

generated by multiple delivery mechanisms.

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Doing Business in the Digital

Economy (cont...)

What is theDigital Economy? (cont...)

Symbols, tokens & concepts.

Tickets and reservations

Airlines, hotels, concerts, sportsevents

Financialinstruments:

Checks, electronic currencies, credit cards,securities, letters of credit

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Doing Business in the Digital

Economy (cont...)

What is theDigital Economy? (cont...)

Processes & services. Government services:

Forms, benefits, licenses, etc...

Electronic messaging

Letters, faxes, telephone calls

Business-value-creation processes and transactions

Auctions, bidding, bartering Remoteeducation, telemedicine, interactiveservices

Interactiveentertainment, socialnetworks, virtualcommunities

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Electronic Commerce

Siemens AG established existing oldcompany into transformed digitalenterprise and isexcellent example ofelectronic commerce.

Use of Web-based systems to supportbuying, selling, collaboration and customer

service

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Networked Computing Digital

Organization Infrastructure

Enables computers to connect to other computers& otherelectronic devicesvia telecommunicationnetworks.

Connectionsgiveusers access to remoteinformation.

Usersmay be connected via wirelessnetworks to

public network-Internet (value-added networks(VAN));Intranets (within organizations only); &connections to business partners (Extranets).

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Buying or Renting a Movie Online

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Screenshot 1U.1 Netflix

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New Economy

Netflix

Blockbuster

Movies.yahoo.com

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Which is better?

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Figure 1.2

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How customization is done online: Nike shoes.

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ITDevelopments & Trends

Storage

Larger & cheaper (1997 3.2 Gb; 2006 320 Gb)not a constraint anymore

Applications requirelargestoragespace

Object-Oriented Environment

Enablesself contained units can be re-used,shared, purchased

EnableIS to be assembled (vs. building fromscratch)

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ITDevelopments & Trends(cont.)

Nanotechnology

Superfast, molecular computers

Very tiny woveninto our clothing

Required very little power, hugestorage capacitiesand immune to computerviruses, crashes and otherglitches

MobileComputing & M-Commerce

Commercevia wireless devices

These devices can be connected to Internet possibilities arelimitless

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ContinuingConvergence ofComputing &Communication

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Utility Computing / On-Demand services

Usersneed to consider;

A necessity, high reliability of service, ease ofuse,lead to economies ofscale

Billed according to usage (likewater & electricity)

PervasiveComputing

Computationsembodied inmany things (not justcomputers part of theenvironment)

Part of furniture, walls, clothing, smart appliances

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RFID Tag (radio frequency identification)

Enablingmany possibilities next generation ofbarcodes.

Fromsupply chain technology enabler ofvalue-added consumer applications (egitemlocation, statusreporting)

Lost ormisplaced items will bemore readily located

using RFID. Receiving, warehousing, distribution andretailstoreswill allgainspeed and cost advantagesfrom thenew technology

Hundreds ofinventory itemsin a second, regardless

oflocation

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CorporatePortals

Companyswebsiteused asgateway to companysdata, info & knowledge.

Results-oriented view of technology deployment

homeimprovement strategy most enterprises tryto milk every last drop ofvalue out of already-deployed technologies

enterpriseswillincreasingly seek functionality theyhave already purchased from thosevendors, insteadof trying to deploy othervendors packages.

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Changing Business Climates /

Technologies : To-wait orNot-To-

Wait

Enterprisesshould not blindly wait forevery technologyto becomemature.Insome cases, the potential rewardsfor first use areso powerful that they warrant reasonableorevenhigh risks from probinginto theunknown.

When a technology offers a dramatic advantage and theorganizationiswellsuited to moderate to highlevels of

risk it iswholly justified to leap into a technology whileit isstillearly in thehype cycle.

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Organizational Responses &

I.M. Today Strategic Systems

Information architectures, data warehouses, datamining, Internet.

Corporate portals

CustomerFocus & Services

CRM, SCM, feedback management, portals,membership.

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I.M. Today (cont)

ContinuousImprovement

Flexiblesystems, continuous & real-timeIS Planning.

IT/IS supports TQM, Six Sigma, knowledgemanagement, JIT processing, creativity & decisionmakingimprovements, changemanagement,customerserviceimprovement

IT/IS provideinfo to monitor, measure performance &

productivity

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I.M. Today (cont)

RestructuringBusinessProcesses

IT/IS enabled, skillfulIS Personnel.

Automation, workflow

Make-to-Order and MassCustomization

IT infrastructures, integrated enterprisesystems &manufacturingsystems

Enableinteractive communication to quickly &correctly configure the products/services they want

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I.M. Today (cont)

Business Alliances

IT enhance communications and collaboration

IS enhance relationship management Eg. Keiretsuin Japan that enhances their

competitiveness globalleader

Electronic Business

Internet, back-officesystems, enterprisesystems.

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How IT Supports Various

Organizational Activities

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Questions?

01_it_trends (1)

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