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MBA Essentials Data Innovation for Vital, Upper hand

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  1. MBA EssentialsInformation 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? Information Resources Management

  3. 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.). Information Resources Management

  4. Information Resources Management

  5. Information Resources Management

  6. 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? Information Resources Management

  7. Information Resources Management

  8. Strategic Information Systems

  9. 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 Information Resources Management

  10. 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 Information Resources Management

  11. Information Resources Management

  12. 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 Information Resources Management

  13. Information Resources Management

  14. Current Technologies for Strategic Information Systems

  15. 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 Information Resources Management

  16. Information Resources Management

  17. Information Resources Management

  18. 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 Information Resources Management

  19. Information Resources Management

  20. Technologies: Client Server Computing • Distributed processing vs. centralized processing • Network computing • Servers • Bridges and routers, gateways • Network management • Ethernet and Token Ring Information Resources Management

  21. Technologies: Interactive Multimedia • Groupware • Voice over IP • Streaming technology • Flash • MP3 • Seeing corporate uses in training applications Information Resources Management

  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? Information Resources Management

  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 Information Resources Management

  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 Information Resources Management

  25. Information Resources Management

  26. Information Resources Management

  27. Information Resources Management

  28. Information Resources Management

  29. 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 Information Resources Management

  30. Information Resources Management

  31. Information Resources Management

  32. 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? Information Resources Management

  33. Information Resources Management

  34. Technologies: Knowledge Management Tools and Artificial Intelligence • Examples of Knowledge Management systems • Expert systems: the earthenware dam • Neural Networks • Fuzzy logic • Intelligent agents Information Resources Management

  35. Technologies: Wireless • 802.11b, a and g • Weaknesses in security in wireless • Access points • Use firewalls behind access point • Netstumbler and war driving Information Resources Management

  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 Information Resources Management

  38. Management: the Systems Development Life Cycle • Systems analysis • Systems design • Programming • Testing • Conversion • Production mode and ongoing maintenance Information Resources Management

  39. Information Resources Management

  40. 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 Information Resources Management

  41. Information Resources Management

  42. 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 Information Resources Management

  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 Information Resources Management

  44. Information Resources Management

  45. Management: Legal Issues with Information • HIPAA. Health Insurance Portability and Accountability Act, 1996 • Gramm-Leach-Bliley Act, 1999 • Sarbanes-Oxley Act of 2002 Information Resources Management

  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 Information Resources Management

  47. 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 Information Resources Management

  48. Information Resources Management

  49. Information Resources Management

  50. 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 Information Resources Management