Instructor: Ramiro Montealegre Fall 2010 TTh 5:00-6:20 p.m., KOLB 375

If you are thinking when are things going to be back to normal in the world and in companies … I have news for you… THIS WILL NEVER HAPPEN!!!

The IT Value Creation Formula: …And send it offshore Chunk it, Routinize it, Digitize it…

Technology is revolutionizing the economic, societal, and technological foundations of the old economy. Organization are developing new models for business, the economy, and government.

The New Economy VS. The Old Economy ExampleOldNew Buying and selling text book Visit the bookstoreVisit web site for publishers and retailers Registering for classesWalk around campus to Departments, Registrar’s office, etc. Access campus web site PhotographyBuy film, use camera, take picture, take it for processing Use digital camera Paying for GasolineFill up your car, go inside, pay cash or credit card Use speed pass token wave over the sensor and go Paying the Transportation Pay cash, metal tokensMetro cards electronic cards Paying for goodsVisit store, take the item, pay, go Use self – service kiosks Supplying commercial photos Use newspapers, paper, catalog or on line Use hub-like supply chain with digitized picture

Business Environment Technology Environment - Globalization - Competition - Unique Competitive position - Market variability - Scarce resources - Restructuration of industries - Multiple evolving technologies - Technological availability - Cost Reduction - Improved functionality - Digital convergence - Past Infrastructure IT enabled Strategies

Examples of Companies Analyzed Google, Inc. Read&Go Alibaba Cognizant Canyon Ranch Los Grobo Hilton Hotels Volkswagen of America Li & Fung

The future belongs to those who know how to innovate Less: “chunk, routinize, digitize, and offshore” More: about “Creating Value” The future of IT:

MBAX 6420: Information Technology and Business Strategy Fall 2010 TTh p.m., KOLB 375 Professor Ramiro Montealegre

Questions