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MBA Essentials Information Technology for Strategic, Competitive Advantage

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TCP/IP and the Internet. Databases and Datamining. Handhelds, M-commerce ... Voice over IP. Streaming technology. Flash. MP3. Seeing corporate uses in training ... – PowerPoint PPT presentation

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Title: MBA Essentials Information Technology for Strategic, Competitive Advantage


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.
  • Virginia.kleist_at_mail.wvu.edu
  • 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 (8th ed.).
  • Some material adapted from Burgelman, Christensen
    and Wheelwright, (2004), Strategic Management of
    Technology and Innovation, Boston McGraw-Hill
    Irwin (4th ed.).

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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?

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Strategic Information Systems
9
Strategic Information System
  • Technology used to gain an edge over an
    organizations 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

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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 ROIs

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Current Technologies for Strategic Information
Systems
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What are the latest technologies of interest?
  • CPUs 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

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Technologies CPUs and Software
  • Hardware components of a computer system
  • Buses, CPUs, MHz, RAM, Gigs and cache
  • Bits and Bytes, storage
  • Moores Law and price points per MIPs
  • Mainframes, RISC computers, Parallel processing
  • Open source movement in operating systems
  • Enterprise Resource Planning software
  • Object oriented programming

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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

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Technologies Databases, Datamining
  • Data is the companys 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

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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?

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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

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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

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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

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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)
  • Porters Value Chain primary and support
    activities
  • The competitive forces model Threats from new
    market entrants, suppliers, substitute products
    and customers
  • Core competencies
  • Network economics

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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?

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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

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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 Dells 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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