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MBA Essentials Information Technology for Strategic, Competitive Advantage PowerPoint PPT Presentation

MBA Essentials Information Technology for Strategic, Competitive Advantage Virginia Franke Kleist, Ph.D. Assistant Professor Division of MIS/Management Welcome to the Technology Part of the Program How are you using information technology (IT) today in your firms and businesses?

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MBA Essentials Information Technology for Strategic, Competitive Advantage

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MBA EssentialsInformation Technology for Strategic, Competitive Advantage

Virginia Franke Kleist, Ph.D.

Assistant Professor

Division of MIS/Management


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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?

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Contact Information

  • Virginia Franke Kleist, Ph.D.

  • [email protected]

  • 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


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Strategic Information System

  • Technology used to gain an edge over an organization’s 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

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American Airlines

Fed Ex

Citibank

Wal-Mart

Abitibi Consolidated

Simonton Windows (SBR)

USA Today

Benetton

Sheetz

PNC Corporation

PriceWaterhouse Coopers

Baxter Healthcare

Examples of Strategic Information Systems

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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 ROI’s

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Current Technologies for Strategic Information Systems


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What are the latest technologies of interest?

  • CPU’s 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: CPU’s and Software

  • Hardware components of a computer system

  • Buses, CPUs, MHz, RAM, Gigs and cache

  • Bits and Bytes, storage

  • Moore’s 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

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Technologies: Interactive Multimedia

  • Groupware

  • Voice over IP

  • Streaming technology

  • Flash

  • MP3

  • Seeing corporate uses in training applications

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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?

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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

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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 company’s 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

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Technologies: Wireless

  • 802.11b, a and g

  • Weaknesses in security in wireless

  • Access points

  • Use firewalls behind access point

  • Netstumbler and war driving

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Managing for Information Systems Strategic Advantage


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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

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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

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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

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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

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Strategic Advantage: How does one come up with this idea, anyway?(Laudon and Laudon, 2000)

  • Porter’s 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

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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 Dell’s business model?

  • Will Dell be able to keep this success going, given the recent troubles?

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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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