1. Strategic Computing and Communications Technology BA 290D, EECS 201, IS 224 Spring 99 Introduction David G. Messerschmitt Hal R. Varian

2. Strategic technology Spring 99 2 Outline Motivation and objectives Summary of course content Student responsibilities Grading Administrative

3. Strategic technology Spring 99 3 Course materials Books –Shapiro and Varian: Information Rules, A Strategic Guide to the Network Economy –Messerschmitt, Networked Applications: A Guide to the New Computing Infrastructure. Lectures –http://www.sims.berkeley.edu/courses/is224/s99

4. Strategic technology Spring 99 4 Motivation Engineering and computer science students: –Successful product positioning and design requires consideration of many important non-technical issues –E.g. economics, law, policy Management students: –Computer and communication technologies have some special issues and challenges for high-tech managers

5. Strategic technology Spring 99 5 Motivation (con’t) Information management students: –Considerable overlap of information and software in management challenges –Technology is infrastructure for information management

6. Strategic technology Spring 99 6 Objectives Appreciate and understand non-technical issues that –Arise from special characteristics of high-tech –Leave their imprint on the industry –Impact product positioning and design Appreciate strategies for success in information and high- tech products Bring together computer science, engineering, business, and information management students to learn from one another Remain focused on the interaction of technical and non- technical factors (rather than either in isolation)

7. Strategic technology Spring 99 7 Scope Information content Software –Applications –Infrastructure Hardware –Including bundled software Network and other infrastructure

8. Strategic technology Spring 99 8 Increasing importance of non- technical factors Increasingly the focus is more on “what to do” rather than “how to do it” –Compare architects and civil engineers More commercial (market driven), less military Deregulation of communications Convergence of communications and computing, affecting both industries irrevocably –Focus on standardization in computing due to enterprise and commerce applications –Focus on competition and rapid innovation in communications

9. Strategic technology Spring 99 9 Importance of non-technical factors (con’t) Economics effects: –Information and software economics –Network effects, lock-in, winner-take-all –Open systems and standardization Changing role of government –Regulation and antitrust –Encryption, privacy –Research funding –Intellectual property

10. Strategic technology Spring 99 10 Importance of non-technical factors (con’t) Changing industry structure –Vertical stovepipe to horizontal layering –Increasing fragmentation –Greater role of startups –Strategic importance of intellectual property –Collaboration, consortia, standardization, etc. Changing nature of the job –Everyone must be flexible, broad, interdisciplinary, and strategic in small companies

11. Strategic technology Spring 99 11 Major topics Changing industry structure Buyers and sellers Economic obstacles to change Standardization, alliances, consortia Intellectual property Research support Government intervention Examples

12. Strategic technology Spring 99 12 Student responsibilities Participate in class discussion (10%) Participate in online forums (15%) Two group projects (60%) –Choose a product category or industry and apply strategic analysis from course –Develop both sides of a controversial issue “Give example” assignments (15%) Readings (books, Web, other)

13. Strategic technology Spring 99 13 Classroom activity Lectures on major topics of the reading –But rely heavily on readings Discussion of examples and controversial issues –Supplemented by online forum Outside speakers (faculty, industry) Project debates

14. Strategic technology Spring 99 14 Administrative MBA class representative http://www.sims.berkeley.edu/courses/is224/s99/ –Follow for announcements is224@sims.berkeley.edu: mailing list Class forum will be set up on www.delphi.com Group project and speaker (faculty, industry) topic ideas welcome