Strategically Leveraging Information Systems to Transform Business: Trends, Challenges and Opportunities Dr. Sean T. McGann

Our Central Questions What is the strategic importance of IS?Will the strategic importance if IS increase in the future?What trends are driving the strategic importance of IS?

IS and Non-IS Professionals: Why you should care… Strategic importance of IS is at an all time high8-10% of revenues are spent on ISIS is the platform of businessIS is the source of business intelligenceIS is the forum for global collaborationIS creates strategic opportunityIS has become a “competitive necessity”

Agenda Introduction/Seminar GoalsDiscussion of 4 Key IS TrendsTeam Analysis ActivityOur IS Predictions

Background BS Electronics Engineering - BGSUMBA – Ohio UniversityPhD in Information Systems – Case Western ReserveAndersen Consulting – Manager – IT ImplementationsCEO – PogoNet Internet Solutions Inc.Currently Independent IT Consultant & MIS Professor

Seminar Goals Understand Establish baseline terminology Clarify fundamental concepts Discuss Leverage your expertise Share knowledge and personal experience Discuss illustrative examples Analyze Apply concepts in context of businesses Express your opinions Discuss the future of business strategies

Information Systems Defined IT People ProcessesIT IS Strategic Level Drivers (Business Goals/KPIs) Operational Level Drivers (Process Problem Areas)

IS as a Strategic Driver IT People ProcessesIT IS Strategic Level Drivers (Business Goals/KPIs) Operational Level Drivers (Process Problem Areas)

Definition of a “Strategic” IS Significant impact on the enterprise over the next 3 yearsHigh potential for disruption to the businessRequires significant capital investment…$$$!Competitive risk in being late to adopt

Definition of an IS Trend An “IS Trend” is a general tendency or direction in business strategy and operations over time…resulting from the adoption and diffusion of Information Systems.

IS Trends for our Seminar Cloud ComputingSocial Networks & Analytics in BusinessWireless IT & Mobile ComputingIT Security

The Gartner Hype Cycle

Cloud Computing…experts say: Cloud Computing is at the “Peak of Inflated Expectations”By 2014, 20% of businesses will own no significant IT AssetsApproximately 5% of global applications are currently in the cloud At year-end 2016, more than 50 percent of Global 1000 companies will have stored customer-sensitive data in the public cloud.

Cloud Computing Analysis Define the trend.What are the opportunities it creates?What are the challenges it presents?What is your opinion of its strategic importance?

Cloud Computing Summary… Strategic “Cost Force” and “Flexibility Force”Creates IT capabilities and capacity quickly – HaaS & SaaSMinimizes initial capital expenditures and ongoing maint. costsAllows small and medium businesses to compete with large businessesCreates new business opportunities for providers/aggregators/integratorsSecurity and privacy concerns are key challenges

Social Networks…experts say: Social Analytics is nearing the “Peak of Inflated Expectations”BY 2016, social IT will be integrated into most business softwareLinked In IPO Value was $4.2 BFacebook is preparing for an IPO that will value them at $100 B

Social Networking in Business Analysis Define the trend.What are the opportunities it creates?What are the challenges it presents?What is your opinion of its importance?

Social Networking Summary… Internal and External uses for businessesSocial networking, social collaboration, social publishing and social feedbackProfessional Networking most common use (e.g. Linkedin)Internal relationship building amongst colleaguesProduct Development & marketing…direct interaction with customers/clientsQuick product feedback (e.g. sentiment analysis & blogs)…allows quick adjustments (e.g. iPhone)Streamline communications/collaboration with colleagues and clientsKnowledge sharing internally and externallyMixing personal and professional social networking can create issues

Wireless IT…experts say: Tablet PCs are at the “Peak of Inflated Expectations” BY 2013, mobile devices (smartphones/tablets) will overtake PCs as the primary web-access device By 2014, there will be a 90% mobile penetration rate worldwide By 2015, mobile app. development projects targeting smartphones and tablets will outnumber desktop PC projects by a ratio of 4-to-1. By 2016, at least 50 percent of enterprise users will rely primarily on a browser, tablet or mobile client instead of a desktop client.

Wireless IT & Mobile Computing Analysis Define the trend.What are the opportunities it creates?What are the challenges it presents?What is your opinion of its strategic importance?

Wireless & Mobile Summary… Mobile commerce will be the dominant form of B2CB2B mobile commerce increasing as B-apps are developed (e.g. CRM)Smart phone/tablet capabilities and anytime/anywhere access are keysSecurity and privacy concerns are key challengesContext awareness will be a key factor for interaction & deliveryGoal is to enable real-time decision making at the point of interaction

IS Security…experts say: Through 2016, the financial impact of cybercrime will grow 10 percent per year, due to the continuing discovery of new vulnerabilities. At year-end 2016, more than 50 percent of Global 1000 companies will have stored customer-sensitive data in the public cloud. IBM reports that in 2012, cyber thieves have already begun to successfully hack into cloud computing environments. Attacks on mobile devices will double each year. Social networks have become one of the primary sources of data for identity thieves. By 2016, 40 percent of enterprises will make proof of independent security testing a precondition for using any type of cloud service.

IS Security Analysis Define the trend.What are the opportunities it creates?What are the challenges it presents?What is your opinion of its strategic importance?

IS Security Summary… Many of our trends, also create significant IS security risksIS Security in the age of interconnectivity and mobility is huge challengeMore sensitive info than ever being exchanged on the InternetSocial networks create an even larger threat to security & privacyHackers are becoming more sophisticated & more activeThreat of Cyberterrorism is significant (e.g. financial markets, energy grid)

My Predictions… Globally, 30% of large businesses, 40% of medium businesses and 60% of small businesses will run the majority of their enterprise, BI and collaboration systems via cloud computing within 10 years. IT budgets will decrease by 50% in the next 10 years. US small businesses will lead the migration to the cloud. The demand for IS analysts and integrators will triple, while the demand for technicians will be cut in half in the next ten years. AT&T will emerge as the leading cloud computing aggregator within the next 10 years. Google and Amazon will emerge as the leading cloud service providers in the next 5 years. Google and Apple will provide intense drama as they clash for market share in smartphones, mobile apps, operating systems/PCs, and internet advertising. This will change the face of consumer IT, especially mobile IT/commerce. Apple and Google will also battle for a foothold in social networks.

Our Central Questions What is the strategic importance of IS?Will the strategic importance if IS increase in the future?What trends are driving the strategic importance of IS?

Your Predictions??

Final Analysis Activity Pick any business and discuss their strategic goals & future IS/IT challenges/opportunities. What strategic recommendations would you make for them in each IS/IT trend area we discussed? Questions to consider in your analysis: Will they leverage Cloud Computing to increase their IT capabilities and capacity? Should they integrate social networks into their business? If so, how? How can they improve their businesses through wireless IT & mobile commerce? What IT security vulnerabilities must they protect themselves from?