MGT371: Introduction to PBIS Session six: Changing Computer Industry

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MGT371 Introduction to PBISSession six
Changing Computer Industry

• Information Technology Development.
• Changes to Individuals.
• Changes in the Industry.

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MGT371 Introduction to PBIS, Session six
Changing Computer Industry Information
Technology Development.

• In hardware
• Structure changed from vacuum tube --gt
  transistors --gt IC --gt large scale integrated
  circuits(microchips).
• Size changed from 150 m2 occupation to fitting
  into a palm
• Speed changed from 100 kHz to 100s of MHz
• Capacity changed from few KB to 100s of MB
• Data storage changed from fixed drums/tapes/disks
  --gt diskettes --gt CD-ROM(650 Mb) --gt DVD(4.7 GB)
  --gt virtual data pools.
• Shifted from scientific, industrial, business
  applications to personal computing
• As a result
• A whole new life/work style business scheme
  have emerged
• A whole new set of jobs have been created while
  many have disappeared

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MGT371 Introduction to PBIS, Session six
Changing Computer Industry Information
Technology Development.

• In software
• Changed from machine language(1GL) to
  symbolic(2GL) to high level(3GL) to very high
  level (4GL) to tools for designers(5GL).
• Software development drifted from EDP
  professionals to end user
• Software development needed more hardware power
  and speed
• Hardware development was a drive for
  power-consuming and speed-demanding software.
• Government/business affordable SW are now
  afforded by individuals and are becoming
  free(offered with the HW or on the Internet)
• As a result
• Computers moved from special big rooms to
  offices, homes and roads.
• IT serves as one of the hottest employment
  segments as a powerful business tool.

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MGT371 Introduction to PBIS, Session six
Changing Computer Industry Information
Technology Development.

• In communication
• Single purpose, one business is became multi
  purposed, multifunctional --gt multi business --gt
  distributed --gt global.
• Single system slow data transfer --gt global
  information superhighways.
• Single purpose single audience communication has
  now become a world wide web of multipurpose
  multifunctional multi-audience business.
• As a result
• A whole new type and style of business operations
  have emerged(e-commerce, telebanking, automated
  teller machine)
• A whole new style of employment has
  emerged(teleworking)

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MGT371 Introduction to PBIS, Session six
Changing Computer Industry Information
Technology Development.

• In business
• IT has moved from universities and military
  establishments to large and small private
  businesses.
• IT always has had increasing tempo of
  technological change with rapid product cycles.
• Investments in IT development has become
  enormous.
• Emphasis has been on imitative or compatible
  products with vast international marketplace.
• As a result
• A whole new style of business operations and
  management has emerged.
• A whole new style of employment has
  emerged(teleworking)
• A whole new set of laws and regulations is being
  built to support innovation and avert fraud and
  misuse of IT.

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MGT371 Introduction to PBIS, Session six
Changing Computer Industry Changes to
Individuals.

• Opportunities
• Entrepreneurship
• Individuals can now start a business at home with
  the use of a home office that is completely
  on-line.
• Individuals can work at an office or store using
  computer technology to facilitate transactions.
• Small businesses are more flexible to take
  advantage of opportunities that arise in a
  shorter amount of time.
• Individuals can utilize their education or
  experience to occupy niche markets much faster.
• English-speaking individuals are able to utilize
  the English dominance of IT.
• Education
• Lectures produced by integration of words,
  sounds, pictures, and both live and animated
  video can capture students' imaginations.

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MGT371 Introduction to PBIS, Session six
Changing Computer Industry Changes to
Individuals.

• Opportunities
• Certification
• Certification programs (now offered by scores of
  software and hardware vendors) have created
  opportunities to earn proficiency and higher
  salary.
• Certification programs opens doors for those with
  little to no experience.
• Certification programs provide a standard measure
  of competency and support employers screening
  mechanisms
• Personal life
• Endless number of opportunities have been
  rendered by IT in handling our personal lives.
• Individuals now can control their appliances and
  heating systems as well as a multitude of other
  tasks from the comfort of their office, hotel or
  vacation spot.

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MGT371 Introduction to PBIS, Session six
Changing Computer Industry Changes to
Individuals.

• Opportunities
• Utilizing the opportunities
• Individuals must ensure that they keep pace with
  the emergence of new technological trends.
• E-mail services, Intranet and network services,
  Internet services and website design are used to
  develop and promote entrepreneurship.
• Consultants, retailers, wholesalers,
  manufacturers (e.g.. Amazon books, toys 'R Us)
  are the type of businesses utilizing IT most.
• Various types of software allow entrepreneurs to
  create business plans, communicate with employees
  and customers, keep track of business
  transactions.

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MGT371 Introduction to PBIS, Session six
Changing Computer Industry Changes to
Individuals.

• Constraints
• Customs and culture
• Technology may force reform of many traditional
  customs
• People are forced to adapt quickly or risk being
  left behind.
• English dominance
• Non-English individuals are promoting software
  localization to preserve their own language,
  culture values.
• Non-English individuals face economic, cultural
  and political constraints which hinder their
  access to IT and global economy.
• Localization
• Localization is feasible if market demands it,
  there is uniformity of the written word and
  system compatibility can be ensured.
• Given the extensive degree of changes associated
  with software localization of cultural-specific
  elements, non-English speaking individuals are
  impacted by the complexities of localization.

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MGT371 Introduction to PBIS, Session six
Changing Computer Industry Changes to
Individuals.

• Constraints
• Unpleasant work environment
• As people become further engrossed by technology
  they often find themselves working with time
  constraints, and increasingly, living in states
  of isolation.
• Face-to-face interactions are becoming fewer and
  shorter in duration.
• Decreased opportunities for release of
  frustration and bad feelings.
• Electronic mail devoid of tone or compassion has
  replaced interaction of personal meetings.
• Reduction of human interaction may result in
  increased hostility and the development of
  potentially violent occupational and domestic
  situations.

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MGT371 Introduction to PBIS, Session six
Changing Computer Industry Changes in the
Industry.

• Opportunities
• Intranets and the World Wide Web have connected
  all critical business constituencies through
  electronic commerce.
• Shopping, purchase, and delivery of goods is now
  possible though E-commerce. However more
  expensive information systems and specialists are
  needed to maintain the E-commerce.
• Reduction of transaction costs in e-commerce
  creates room for price competition.
• English Dominance facilitates a faster growth in
  the industry, creating a common language between
  the developers, vendors and users.
• The ease of obtaining a computer certification
  with no experience has increased opportunities
  both for individuals and employers.

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MGT371 Introduction to PBIS, Session six
Changing Computer Industry Changes in the
Industry.

• Constraints
• LEGAL CONSTRAINTS
• The rapid expansion of technology is creating a
  call for increased regulation to protect privacy,
  security and proprietary rights.
• Bills for personal protection and privacy through
  the regulation of encryption technology will
  allow digital signatures to be legitimized for
  use in both the workplace and courtroom.
• Ownership of original thought, and its protection
  in today's marketplace is a major concern.
• COMPETITION Strategies to restrict competition
• Hardware prices reduced through production
  efficiency
• Capture market share through being the first to
  market a new product . Being first is more
  important than being best (Lock-in of inferior
  technology).

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MGT371 Introduction to PBIS, Session six
Changing Computer Industry Changes in the
Industry.

• Avoiding the constraints
• COMPETITION Strategies to restrict competition
• Establishing the new product as being standard.
• Broaden lower end markets
• Small local suppliers cannot survive through
  lower profit margins
• COMPETITION software monopoly
• Competitive forces model New entrants, and
  substitutes are the main source of competition to
  a firm while suppliers and customers have great
  bargaining power to influence the market share of
  a firm.
• Give away product to get market share (Netscape,
  Java, Doom)
• Adopters locked in by switching costs.

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MGT371 Introduction to PBIS, Session six
Changing Computer Industry Changes in the
Industry.

• Avoiding the constraints
• COMPETITION
• Traditional model with diminishing returns

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MGT371 Introduction to PBIS, Session six
Changing Computer Industry Changes in the
Industry.

• Avoiding the constraints
• MONOPOLY
• Increasing returns (high fixed cost/low variable
  cost ratio)

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MGT371 Introduction to PBIS, Session six
Changing Computer Industry Changes in the
Industry.

• Avoiding the constraints
• CONSOLIDATION BENEFITS
• Increase competitiveness,
• Increase resources for innovation and product
  development,
• Diversification,
• Cost savings and consumer benefit.

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MGT371 Introduction to PBIS, Session six
Changing Computer Industry Changes in the
Industry.

• Avoiding the constraints
• CONSOLIDATION COSTS
• Limited competition,
• Layoffs
• (Oracle Netscape - Compaq Tandem).

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MGT371 Introduction to PBIS, Session six
Changing Computer Industry Changes in the
Industry.

• Avoiding the constraints
• MONOPOLY
• Achieved through Network Effects, "franchise"
  monopoly, possession of scarce resources, Brand
  loyalty, Large economies of scale ( high up-front
  costs for new competitors to set up business in
  the industry).
• Microsoft dominance in OS reinforces its control
  in application software. This means Destruction
  of individual software utility makers and Lock-in
  customers.
• Intel as the dominant producer of microprocessors
  is forced by competitors to produce its chips
  even faster, and with subtle differences as well.
• Network economics creates value for the monopoly
  as the number of participants grow in the
  monopoly's network

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MGT371 Introduction to PBIS, Session six
Changing Computer Industry Changes in the
Industry.

• Avoiding the constraints
• INNOVATION
• Competition is a driver of continuous Innovation
• The Need to be the First in the Market
• Meeting consumer's needs (simplicity , ease of
  use, increased capability, with new features and
  functionality, low cost)
• Patents while broad protection could inhibit
  competition, it offers stronger protection for
  innovators.
• Short Product Life Cycle through innovation is
  the only way to survival for companies in the
  computer industry.
• Follow the Leaders as they set the pace for
  Innovations in the Computer Industry

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MGT371 Introduction to PBIS, Session six
Changing Computer Industry Changes in the
Industry.

• Short Product Life Cycle
• Research and Development gt
• New products gt
• Revenue gt
• More Research and Development

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MGT371 Introduction to PBIS, Session six
Changing Computer Industry Changes in the
Industry.

• Avoiding the constraints Constraints of
  non-compatible and diverse products
• Standardization
• Standardization is mandatory to achieve
  connectivity for networking, operating systems
  and user interfaces with telecommunications
  networks.
• Proprietary Standards patented by a developing
  company and available for use only if purchased.
  This is to gain and hold the market share and
  serve as barrier to competition.
• Open Standards not patented and is available for
  use to the public at no charge (PCI Bus, MPEG,
  JPG, GIF, TCP/IP)

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MGT371 Introduction to PBIS, Session six
Changing Computer Industry Changes in the
Industry.

• Avoiding the constraints
• Y2K "THE MILLENNIUM BUG"
• Computers and software are not programmed to
  handle two 00 for year 2000. Stock markets,
  government payrolls, telephone bills and any
  application involving computers are affected.
• Best way is to upgrade the computer's BIOS, old
  computer codes rewritten upgrade their operating
  system
• Trends
• In high-performing companies, priorities are
  teamwork, customer focus, fair treatment of
  employees, initiative, and innovation.
• Cheaper and more powerful personal computers.
• Processor-intensive tasks can be performed by new
  computers.
• Technology breakthrough create new ways of
  interacting with computers.

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MGT371 Introduction to PBIS, Session six
Changing Computer Industry Changes in the
Industry.

• Trends
• Being first more important than being best.
• Marketing is as important as technology.
• Temporary monopolies are natural in IT.
• Innovation can displace monopolies.
• Individuals must accumulate intellectual capital.
• Government will intervene more into the computer
  industry due to the increasing concentration.
• Trends In Operating System
• 64-Bit addressing, more powerful, greater
  scalability and performance.
• Alternative Linux(Impetus to change the current
  OS scene Cheap, Reliable, Open source code,
  Poses threat to Microsoft's OS free giveaways,
  able to run Java technology-based application)

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MGT371 Introduction to PBIS, Session six
Changing Computer Industry Changes in the
Industry.

• Trends
• Trends in Software
• Moving towards simplicity.
• Easy setup and installation of new hardware and
  software in desktop computer.
• New user interfaces speech recognition and
  combination of handwriting, voice and keyboard.
• With the right interface, the reluctant novice
  does not have to learn computer.
• In year 2001, your personal computer can read
  e-mail to you, fetch the latest news and
  information for you, record voice messages and
  favorite TV shows.

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MGT371 Introduction to PBIS, Session six
Changing Computer Industry Changes in the
Industry.

• Trends
• Trends in Chip and Internet speed
• Introduction of IA-64 processor, code-named
  Merced by Intel
• Target market not PC but server and workstation.
  
• Require programs compiled for the new 64-bit
  instruction set for high performance.
• Too expensive for PC.
• Irrelevant to the PC market until 2002 or later.
• Internet transmission new standard Digital
  Subscriber Line (DSL)