1. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 20-1 BUSINESS DRIVEN TECHNOLOGY Chapter Twenty: Developing a 21 st Century Organization

2. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 20-2 LEARNING OUTCOMES 20.1List and describe the four 21st century trends that businesses are focusing on and rank them in order of business importance 20.2 Explain how the integration of business and technology is shaping 21st century organizations

3. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 20-3 CHAPTER TWENTY OVERVIEW 21 ST century organizations must: – Recognize the immense power of technology – Carry out required organizational changes – Learn to operate in an entirely different way

4. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 20-4 CHAPTER TWENTY OVERVIEW How technology is changing business

5. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 20-5 21 ST CENTURY ORGANIZATION TRENDS 21 st century business trends include: – Uncertainty in terms of future business scenarios and economic outlooks – Emphasis on strategic analysis for cost reduction and productivity enhancements – Focus on improved business resiliency via the applications of enhanced security

6. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 20-6 21 ST CENTURY ORGANIZATION TRENDS Four technology areas where organizations are focusing: 1.IT infrastructures 2.Security 3.E-business 4.Integrations

7. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 20-7 Increased Focus on IT infrastructures IT infrastructure – the hardware, software, and telecommunications equipment that, when combined, provide the underlying foundation to support the organization's goals

8. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 20-8 Increased Focus on Security Physical security integration and best security practices

9. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 20-9 Increased Focus on e-Business New e-Business trends: – Mobile commerce – the ability to purchase goods and services through a wireless Internet-enabled device – Telematics – blending computers and wireless telecommunications technologies with the goal of efficiently conveying information over vast networks to improve business operations – Electronic tagging – a technique for identifying and tracking assets and individuals – Radio frequency identification (RFID) – chips or smart labels that can store unique identifiers and relay this information to electronic readers

10. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 20-10 Increased Focus on Integration The integration of business and technology

11. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 20-11 Increased Focus on Integration Overall, core business relationships and models are changing: – Product-centricity to customer-centricity – Mass production to mass customization – The value in material things to the value of knowledge and intelligence

12. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 20-12 Increased Focus on Integration A new series of business success factors and challenges are emerging: – Organization agility – Focus on core competencies and processes – Redefinition of the value chain – Instantaneous business response – Ability to scale resources and infrastructure across geographic boundaries

13. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 20-13 Increased Focus on Integration Never before have IT investments played such a critical role in business success As business strategies continue to evolve, the distinction between “the business” and IT will virtually disappear

14. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 20-14 CHAPTER TWENTY Opening Case Study Questions 1.Determine which of the seven companies would find it most important to focus on its IT infrastructure when determining its 21st century strategy 2.Determine which of the seven companies would find it most important to focus on security when determining its 21st century strategy 3.Determine which of the seven companies would find it most important to focus on e-business when determining its 21st century strategy 4.Determine which of the seven companies would find it most important to focus on integration when determining its 21st century strategy

15. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 20-15 CHAPTER TWENTY CASE Creating a Clearer Picture for PBS Andre Mendes, Chief Technology Integration Officer (CTIO) for PBS, oversees the company’s technology organization, a 50-person group PBS IT projects are getting bigger and bigger, with more and more collaboration, with a more global picture The broadcast environment is becoming an IT environment as the company uncovers new ways to improve quality of service and increase opportunities for innovation through new digitized formats

16. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 20-16 CHAPTER TWENTY CASE QUESTIONS 1.Assess the impact to PBS’s business if it failed to focus on IT infrastructure when determining its 21st century business strategy 2.Assess the impact to PBS’s business if it failed to focus on security when determining its 21st century business strategy 3.Assess the impact to PBS’s business if it failed to focus on e- business when determining its 21st century business strategy 4.Assess the impact to PBS’s business if it failed to focus on integrations when determining its 21st century business strategy

17. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 20-17 BUSINESS DRIVEN TECHNOLOGY UNIT FIVE CLOSING

18. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 20-18 Unit Closing Case One Watching Where You Step - Prada 1.Would you consider Prada’s use of technology disruptive? Why or why not? 2.Prada’s attempt to use RFID to check inventory in real-time failed because of the staff’s refusal to use the system. What could Prada have done to make the implementation of RFID successful? 3.How could prototyping have helped Prada work out the issues with its high-tech dressing rooms?

19. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 20-19 Unit Closing Case One Watching Where You Step - Prada 4.How could Prada have used agile development to increase the success of its high-tech systems? 5.What should Prada do differently when designing its fourth store to ensure its success? 6.Why should Prada focus on IT infrastructure, security, e-business, and integration when it begins developing future stores?

20. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 20-20 Unit Closing Case Two Fear the Penguin 1.Would you consider Linux a disruptive technology? Why or why not? 2.Should Microsoft consider Linux a threat? Why or why not? 3.How is open-source software such as Linux a potential trend shaping 21st century organizations? 4.How can you use Linux as an emerging technology to gain a competitive advantage?

21. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 20-21 Unit Closing Case Two Fear the Penguin 5.Describe how open-source Linux differs from traditional software development 6.Identify which development methodology you would recommend to someone developing a Linux application 7.Research the Internet and discover potential ways that Linux might revolutionize business in the 21st century