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Disruptive Technology

• How can a company like Polaroid go bankrupt?

• Digital Darwinism – implies that organizations which cannot adapt to the new demands placed on them for surviving in the information age are doomed to extinction

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Disruptive Versus Sustaining Technology

• What do steamboats, transistor radios, and Intel’s 8088 processor all have in common? – Disruptive technology – a new way of doing

things that initially does not meet the needs of customers

– Sustaining technology – produces an improved product customers are eager to buy

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The Internet – Business Disruption

• One of the biggest forces changing business is the Internet

• Organizations must be able to transform as markets, economic environments, and technologies change

• Focusing on the unexpected allows an organization to capitalize on the opportunity for new business growth from a disruptive technology

The InternetThe Internet• Network of Networks, established in 1969 Network of Networks, established in 1969

by U. S. Defense Dept. for research.by U. S. Defense Dept. for research.• Number of users doubling each year for Number of users doubling each year for

most of middle to late 90s. Now doubles most of middle to late 90s. Now doubles about every two years. “.com” s have about every two years. “.com” s have taken over.taken over.

• No central authority, originally for nuclear No central authority, originally for nuclear disaster reasons. Taxes, gambling, etc.?disaster reasons. Taxes, gambling, etc.?

• E-mail, Usenet, FTP, telnet: WWW has all E-mail, Usenet, FTP, telnet: WWW has all of these.of these.

What is the Internet?What is the Internet?A Physical Entity...A Physical Entity...a collection of thousands of computer networksa collection of thousands of computer networksserver

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What is the Internet?What is the Internet?Recognized Standards (TCP/IP)Recognized Standards (TCP/IP)protocols for transferring information acrossprotocols for transferring information acrossvarious computer platformsvarious computer platforms

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Vax VMSVax VMS

Apple Apple TalkTalk

IBM VM/CMSIBM VM/CMS

IBM IBM WindowsWindows

Sun Sun UnixUnix

IBM IBM WindowsWindows

How many Users?How many Users?• 147 Million as of 9/98, 195 million as of 147 Million as of 9/98, 195 million as of

8/99, 378 million as of 9/00, 580 million 8/99, 378 million as of 9/00, 580 million as of 5/02, 1.08 billion as of 2005, 1.83 as of 5/02, 1.08 billion as of 2005, 1.83 billion as of 2010 (billion as of 2010 (www.clickz.com, then , then click on “stats” and then “Web click on “stats” and then “Web Worldwide”).Worldwide”).

• 2.1 billion by 2012?2.1 billion by 2012?

How many Servers? How many Servers?

• 3.2 Million as of 9/98, 7 Million 3.2 Million as of 9/98, 7 Million as of 8/99, 21 Million as of as of 8/99, 21 Million as of 9/00, 37 Million as of 7/02, 143 9/00, 37 Million as of 7/02, 143 million as of 10/07, 206 million million as of 10/07, 206 million as of 3/10 (as of 3/10 (www.netcraft.com, , then go to Web Survery then go to Web Survery survey).survey).

Getting Around the WWWGetting Around the WWW• IP Address. Four-part numeric address for IP Address. Four-part numeric address for

any device connected to the Internet. any device connected to the Internet. Only a few billion possibilities. IPng on its Only a few billion possibilities. IPng on its way - trillion.way - trillion.

• DNS: Domain Name System. Translates DNS: Domain Name System. Translates IP into meaningful site name and vice IP into meaningful site name and vice versa. TLD, or “top level domains”, are versa. TLD, or “top level domains”, are things like “.com”. In the ballpark of $9 things like “.com”. In the ballpark of $9 (and increasingly less) a year for (and increasingly less) a year for registration.registration.

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E-Business

• How do e-commerce and e-business differ?– E-commerce – the buying and selling of

goods and services over the Internet – E-business – the conducting of business on

the Internet including, not only buying and selling, but also serving customers and collaborating with business partners

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THE IMPORTANCE OF THE E-BUSINESS MODEL

• Basic Internet

business models

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CHALLENGES OF THE E-BUSINESS MODELS

• Three primary challenges include:1. Security concerns

– 60% of Internet users consider the Internet unsafe2. Taxation

– Internet remains free of traditional forms of taxation3. Consumer protection

– Unsolicited goods and communications– Illegal or harmful goods, services, and content– Insufficient information about goods or their suppliers– Invasion of privacy– Cyberfraud

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Teams, Partnerships, and Alliances

• Information technology can make a business partnership easier to establish and manage– Information partnership – occurs when two or more

organizations cooperate by integrating their IT systems, thereby providing customers with the best of what each can offer

• The Internet has dramatically increased the ease and availability for IT-enabled organizational alliances and partnerships

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Collaboration Systems

• Collaboration solves specific business tasks such as telecommuting, online meetings, deploying applications, and remote project and sales management

• Collaboration system – an IT-based set of tools that supportsthe work of teams by facilitating the sharing and flow of information

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Collaboration Systems

• Collaboration systems include:– Knowledge management systems– Content management systems– Workflow management systems– Groupware systems

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Knowledge Management Systems

• Knowledge management (KM) – involves capturing, classifying, evaluating, retrieving, and sharing information assets in a way that provides context for effective decisions and actions

• Knowledge management system – supports the capturing and use of an organization’s “know-how”

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Explicit and Tacit Knowledge

• The following are two best practices for transferring or recreating tacit knowledge– Shadowing – less experienced staff

observe more experienced staff to learn how their more experienced counterparts approach their work

– Joint problem solving – a novice and expert work together on a project

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Content Management

• Content management system (CMS) – provides tools to manage the creation, storage, editing, and publication of information in a collaborative environment

• CMS marketplace includes:– Document management system (DMS)– Digital asset management system (DAM)– Web content management system (WCM)

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Workflow Management Systems

• Work activities can be performed in series or in parallel that involves people and automated computer systems

• Workflow – defines all the steps or business rules, from beginning to end, required for a business process

• Workflow management system – facilitates the automation and management of business processes and controls the movement of work through the business process

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Workflow Management Systems

• Messaging-based workflow system – sends work assignments through an e-mail system

• Database-based workflow system – stores documents in a central location and automatically asks the team members to access the document when it is their turn to edit the document

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Groupware Systems

• Groupware – software that supports team interaction and dynamics including calendaring, scheduling, and videoconferencing

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Collaboration Trends

• E-mail is the dominant form of collaboration application, but real-time collaboration tools like instant messaging are creating a new communication dynamic

• Instant messaging - type of communications service that enables someone to create a kind of private chat room with another individual to communicate in real-time over the Internet

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Wireless Fidelity (wi-fi)

• Wireless fidelity (wi-fi) – a means of linking computers using infrared or radio signals

• Common examples of wireless devices include:– Cellular phones and pagers– Global positioning systems (GPS)– Cordless computer peripherals– Home-entertainment-system control boxes– Two-way radios– Satellite television

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Advantages of Enterprise Mobility

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Bluetooth

• Bluetooth – an omnidirectional wireless technology that provides limited-range voice and data transmission over the unlicensed 2.4-GHz frequency band, allowing connections with a wide variety of fixed and portable devices that normally would have to be cabled together

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Radio Frequency Identification (RFID)

• Radio frequency identification (RFID) - use active or passive tags in the form of chips or smart labels that can store unique identifiers and relay this information to electronic readers

• RFID tag - contains a microchip and an antenna, and typically work by transmitting a serial number via radio waves to an electronic reader, which confirms the identity of a person or object bearing the tag

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Satellite

• Microware transmitter – commonly used to transmit network signals over great distances

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Global Positioning System

• Global positioning system (GPS) – a device that determines current latitude, longitude, speed, and direction of movement– Market for GPS services is at $5 billion with

expectations for the demand to double over the next five years

• Geographic information system (GIS) – designed to work with information that can be shown on a map