Strategically Leveraging Information Systems to Transform Business: Trends, Opportunities and Challenges Dr. Gabriel Giordano August 2013

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 opportunity

Agenda Introduction/Seminar GoalsDiscussion of Key IS TrendsIS Predictions

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

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)

Definition of a “Strategic” IS Significant impact on the enterprise over the next 3 yearsHigh potential for disruption to the businessOften requires 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 in BusinessMobile ComputingBig DataIT Security

The Gartner Hype Cycle

Cloud Computing…experts say: Cloud Computing is in the “Trough of Disillusionment”However, 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… Creates IT capabilities and capacity quickly – IaaS, PaaS, 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

Social Networks…experts say: Social Analytics is just past the “Peak of Inflated Expectations”BY 2016, social IT will be integrated into most business softwareLinked-In value is $22 BFacebook value is $80 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 businessesInternal relationship building amongst colleaguesStreamline communications/collaboration with colleagues and clientsProduct Development & marketing…direct interaction with customers/clientsInfluencers are a key area of interest for businessesQuick product feedback (e.g. sentiment analysis)…allows quick adjustmentsKnowledge sharing internally and externallyEnables crowdsourcingUnderstanding the viral nature of SN is key to successMixing personal and professional social networking can create issues

Mobile 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

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?

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 challenges (e.g. BYOB trend)Context awareness will be a key factor for interaction & deliveryGoal is to enable real-time decision making at the point of interactionNew methods of input are emerging

Big Data…experts say: Big Data is nearing 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 In 2013, more data cross the internet every second than were stored in the entire internet just 20 years ago 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 Define the trend.What are the opportunities it creates?What are the challenges it presents?What is your opinion of its strategic importance?

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 customersData 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 IBM reports that in 2013, 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 a 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)

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 form 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 aggregator within the next 10 years. Social networks will become a basic part of organizational communication. Google and Apple 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.

Your Predictions??

Final Analysis Activity Pick any business and discuss 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: 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? How can they use Big Data strategically? What IT security vulnerabilities must they protect themselves from?