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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 essentials information technology for strategic competitive advantage

MBA EssentialsInformation Technology for Strategic, Competitive Advantage

Virginia Franke Kleist, Ph.D.

Assistant Professor

Division of MIS/Management

welcome to the technology part of the program
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
Contact Information
  • Virginia Franke Kleist, Ph.D.
  • Virginia.kleist@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
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 system
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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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

Examples of Strategic Information Systems

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four types of information systems
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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what are the latest technologies of interest
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
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
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
Technologies: Interactive Multimedia
  • Groupware
  • Voice over IP
  • Streaming technology
  • Flash
  • MP3
  • Seeing corporate uses in training applications

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history of technology
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
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
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
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
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
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
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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management information systems planning
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
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
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
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
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
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
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
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
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
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
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
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
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?

Information Resources Management