Strategic Business Leadership Executive Education Seminar Strategically Leveraging Information Systems to Transform Business: Trends, Opportunities and Challenges Gabriel Giordano, PhD October 2014

Dr. Giordano Background From New Mexico, USAAutomation Specialist - Research InternationalPhD Florida State UniversityProfessor at IESE Business School (Barcelona)Currently MIS Professor at OUResearch – Technology supported comm.; Transformational IS projectsTeaching – Business Intelligence and IT Strategy

IS and Non-IS Professionals: Why you should care… 5-10% of revenues are spent on ISIS is the platform for businessIS is the source of business intelligenceIS is the forum for global collaborationStrategic importance of IS is at an all time high

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)

“Strategic” IS Significant impact on the enterprise over the next 3 years High potential for disruption to businesses and industries Often require significant capital investment…$$$, and have a higher level of implementation risk due to the fact that the technologies are not mature yet Competitive risk in being late to adopt More and more potentially strategic technologies are emerging – which is exciting, but challenging for businesses to understand

The Gartner Hype Cycle

IS Trends for our Seminar Cloud ComputingMobile ComputingBig DataIT Security

Cloud Computing…experts say: Cloud Computing is in the “Trough of Disillusionment” Approximately 5% of global applications are currently in the cloud However, by the end of this year, 20% of businesses will own no significant IT Assets By the end of 2016, more than 50 percent of Global 1000 companies will have stored customer-sensitive data in the public cloud

The Gartner Hype Cycle

Cloud Computing Analysis What new capabilities are enabled by Cloud Computing? What are the challenges it presents? Define the trend. Identify three strategic uses of Cloud Computing with your group.

Cloud Computing Summary… Creates IT capabilities and capacity quickly – IaaS and SaaSMinimizes initial capital expenditures and ongoing maintenance costsIncreases multi-platform accessibilityHighly ScalableAllows small and medium businesses to compete with large businessesSecurity, regulatory, and privacy concerns are key challenges

Mobile IT…experts say: Wearable computing devices are at the “Peak of Inflated Expectations” Mobile devices (smartphones/tablets) have overtaken PCs as the primary web-access device Current there is > 95% 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

Mobile Computing Analysis What new capabilities are enabled by Mobile Computing? What are the challenges it presents? Define the trend. Identify three strategic uses of Mobile Computing with your group.

The Gartner Hype Cycle

Mobile Summary… Security and privacy concerns are key challenges (e.g. BYOB trend)Context awareness will be a key factor for interaction & delivery A key goal of mobile services is to enable real-time decision making at the point of interaction By 2015, 20% of sales organizations will use tablets as the primary platform for field sales New input methods and types of displays are emerging

Big Data…experts say: Big Data is at the “Peak of Inflated Expectations”The volume, variety, and velocity of data available to businesses has exploded In 2013, 2.5 exabytes (a billion gigabytes) of data are created each day, and that number is doubling every 40 months Business Intelligence software is the top IT spending priority for companies right now Companies that use data-driven decision-making are 5% more productive and 6% more profitable than their competitors Many companies are looking at Amazon and Google for ideas on how to leverage Big Data

Big Data Analysis What new capabilities are enabled by Big Data? What are the challenges it presents? Define the trend. Identify three strategic uses of Big Data with your group.

The Gartner Hype Cycle

Big Data Summary… Successful businesses are learning how to collect more data, analyze data in new ways (e.g. predictive analytics), and report data in ways that makes it more usable (e.g. dashboards) Big Data is useful for both internal decision-makers and customersInternal use areas include product positioning, customer acquisition, and HR managementData scientists are in high demandUnstructured data is often valuable, but it is also more complex Overcoming manager intuition is challenging for most businesses trying to use BI and Big Data

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 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 What new capabilities exist in this area? What are the challenges it presents? Define the trend.Can IS Security be strategic?

IS Security Summary… Many of our trends, also create significant IS security risksIS Security in the age of interconnectivity and mobility is a huge challengeMore sensitive info than ever being exchanged on the InternetHackers are becoming more sophisticated & more activeThreat of Cyber-terrorism is significant (e.g. financial markets, energy grid)

Further 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. 50% of IT budgets will shift from maintenance to innovation in the next 10 years. US small businesses will continue to lead the migration to the cloud. The demand for IS analysts and data scientists will triple, while the demand for technicians will be cut in half in the next ten years. There will be an intense battle between companies trying to be the leading cloud computing aggregators within the next 10 years. Google, Apple, and Microsoft will provide intense drama as they clash for market share in mobile devices, mobile apps, and internet advertising. This will change the face of consumer IT, especially mobile IT/commerce.

Other Predictions??

Final Reflection Pick a business and identify their strategic goals & future IS challenges/opportunities. What strategic recommendations would you make for them in each IS trend area we discussed? Questions to consider in your analysis: Should they leverage Cloud Computing to increase their IT capabilities and capacity? How can they improve their businesses using wireless IT, mobile technologies, and m-commerce? What strategic decisions can be improved with Big Data analysis? What future IT security vulnerabilities must they protect themselves from?