1. Chapter 12 Information System Trends 2012 What managers need to know about the emerging and enduring trends in Information Systems management 1Chapter 12 2012

2. The Hype Cycle Technology Trigger: When a new technology becomes available Peak of Inflated Expectations: When over enthusiasm and unrealistic expectations fuel rapid adoption Through of disillusionment: When failures become public Slope of Enlightenment: when the true benefits of the technology become apparent to the organizations Plateau of Productivity: the phase when the benefits and risks of the technology become widely understood and accepted 2Chapter 12 2012

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4. The Hype Cycle -2005 4Chapter 12 2012

5. 5 The Hype Cycle - 2010

6. Chapter 12 20126

7. Current & Emerging IS/IT Trends Enterprise Systems Supply Chain Management Customer Relationship Management Business Intelligence Digital Data Genius Knowledge Management Systems Mobile Computing Web 2.0 Technology Social Media Gesture Based Computing Chapter 12 20127

8. Enterprise Systems Chapter 12 20128

9. Enterprise Systems In the early 1990s developers realized the limitations of the functional approach This led to a class of standardized software applications that would enable and support integrated business processes These applications are known as Enterprise Systems (ESs) 9Chapter 12 2012

10. Enterprise Systems Provide native integration Attempt to support all components of the firm’s IT infrastructure. Defining characteristics: – Modular – Integrated – Software applications – Span all organizational functions – Rely on one database at the core. Custom developed or purchased off-the-shelf 10Chapter 12 2012

11. Characteristics of ESs Modularity – Enables the organization to decide which functionalities to enable and which ones not to – Allows for flexibility at the design stage – No need to pay for unnecessary components 11Chapter 12 2012

12. Characteristics of ESs Application Integration: – Events in one module automatically trigger events in one or more separate modules Data Integration – Data is stored in one central database 12Chapter 12 2012

13. Characteristics of ESs Configurable – Enterprise Systems are parameterized – Firms choose among a predefined set of configuration options during the implementation of the application – The firm can extend the capabilities of the standard application by creating “bolt-on modules” – This customization process further tailors the ES to the specific needs of the organization 13Chapter 12 2012

14. Advantages of Enterprise Systems Efficiency – ESs are able to rein in complex, generally hard-to- mange and support legacy IT infrastructures – Potential to reduce direct costs Example: No redundant data entry – Potential to reduce indirect costs by streamlining business processes and operations 14Chapter 12 2012

15. Advantages of Enterprise Systems Responsiveness – ESs can deliver improvements in the firm’s ability to respond to customers and market demands Knowledge Infusion – The application embeds the state of the art in industry practice – ES can be used to update obsolete business processes within the firm 15Chapter 12 2012

16. Advantages of Enterprise Systems Adaptability – Offer a degree of customizability rarely offered by off-the-shelf applications – Achieved through the use of configuration tables and bolt-on functionality 16Chapter 12 2012

17. Limitations of Enterprise Systems Standardization and Flexibility – Organizations are encouraged to implement as close to a standard version of the software as possible. – So called “Vanilla” implementation ensure that firms take advantage of the economies of scale created by the vendor – But flexibility is sacrificed by this approach – ESs are often referred to as software concrete Much of the adaptability only occurs during the implementation process. Once set, ESs are difficult to change 17Chapter 12 2012

18. Limitations of Enterprise Systems Limitations of best practice software – It will force the firm to adapt – It is unclear how “best practices” are defined – The “best” practice may differ for different firms – Its not enough to implement a software program to enact a new practice – A firm’s own best practices may not be supported by the new ES 18Chapter 12 2012

19. Limitations of Enterprise Systems Strategic Clash – A firm will have to choose amongst the set of business processes supported by the software – What if one of your unique and differentiating practices is not supported by the ES? 19Chapter 12 2012 Return to Current & Emerging IS/IT Trends

20. Supply Chain Management Chapter 12 201220

21. Supply Chain Management The set of coordinated entities that contribute to move a product or service from its production to its consumption – Upstream Supply Chain – Downstream Supply Chain 21Chapter 12 2012

22. Modern Supply Chain Management Tight linkages between upstream (i.e., suppliers) and downstream firms (i.e., customers) Inter-organizational systems increasingly supported by the Internet Integration with enterprise systems Increasing attention to IT-enabled supply chain management 22Chapter 12 2012

23. Supply Chain Management 23Chapter 12 2012

24. Supply Chain Management Trends Radiofrequency Identification (RFID) A new frontier in SCM: – No line of sight requirements – Embedding potential – Writing capabilities – Storage capacity – Speed up the receiving process – Improve monitoring and control of inventories 24Chapter 12 2012 Return to Current & Emerging IS/IT Trends

25. Knowledge Management “All the value of this company is in its people. If you burned down all out plants, and we just kept out people and out information files, we should soon be as strong as ever.” --Thomas Watson, the CEO of IBM 25Chapter 12 2012

26. Knowledge Knowing What: Based on the ability to collect, categorize, and assimilate information Knowing How: Ability to recognize or create the sequence of steps that are needed to complete a task Knowing Why: Based on understanding of cause-effect relationships 26Chapter 12 2012

27. Knowledge Categories of Knowledge – Explicit Knowledge Can be articulated Codified Transferred with relative ease. – Tacit Knowledge The type of knowledge that individuals possess but find difficult to articulate 27Chapter 12 2012

28. Knowledge Management Set of activities and processes used to: – Create – Codify – Disseminate knowledge in the organization IT is a key component and enabler Aspects of knowledge management: – Creating – Capturing – Storing – Disseminating 28Chapter 12 2012

29. Creating Knowledge Knowledge creation is the first stage in knowledge management: – Generate new information – Devise solutions to existing problems – Identify new explanations for events 29Chapter 12 2012

30. Capturing and Storing Knowledge Enables the organization to: – Codify new knowledge – Maintain an organizational memory Content Management Systems (CMSs): – Applications used to capture and store knowledge – A knowledge repository is a central location and search point for relevant knowledge 30Chapter 12 2012

31. Disseminating Knowledge The last phase in a knowledge management initiative When knowledge is formatted and easily accessible, dramatic improvements in effectiveness and efficiency can be achieved. 31Chapter 12 2012 Return to Current & Emerging IS/IT Trends

32. Business Intelligence The ability to gather and make sense of information about your business – A set of techniques – Processes – Technologies Designed to enable managers to: – Gain superior insight about the organization – Gain superior understanding of the business – Make better decisions 32Chapter 12 2012

33. Business Intelligence 33Chapter 12 2012

34. Components of BI Data Warehouse: – A data repository – Collects and consolidates data – Multiple sources Characteristics: – Large in size – Large in scope – Enabling data integration – Designed for analytics 34Chapter 12 2012

35. Components of BI Data Mart: – A scaled-down version of a data warehouse – Focuses on the needs of a specific audience – Smaller in scope, thus easier to build Online Analytical Processing (OLAP): – User-driven – Enables a knowledge worker to easily and selectively extract and view data from analytical databases 35Chapter 12 2012

36. Components of BI Data Mining: – The process of automatically discovering non-obvious relationships in large databases. – Used to analyze historical information – Machine-driven Possible Patterns: – Associations – Sequences – Classifications – Forecasting 36Chapter 12 2012 Return to Current & Emerging IS/IT Trends

37. Customer Relationship Management CRM is a strategic initiative, not a technology CRM relies on transactional data and is designed to help the firm learn about customers Designed to use data to make inferences about customer: – Behaviors – Needs The objective is to create value for the firm by optimizing the relationship with each customer 37Chapter 12 2012

38. CRM Infrastructure 38

39. Limitations of CRM CRM is firm centric – Only relies on transactional and behavioral data pertaining to the interactions of the customer with the firm Limited predictive ability – Some events are unforeseeable and only the customer knows about their occurrence 39

40. Customer Managed Interactions In CMIs customer data is stored and managed by the customer CMI solves the limitations of CRM initiatives: – The customer’s personal data warehouse holds complete historical information – Future events are more likely known – Inferences are more precise Infomediaries may maintain customers’ data warehouses 40

41. Customer Managed Interactions CMI is not only about the lowest prices – CMI completion may depend on lower price – More likely will stem from the quality of the recommendation CMI technology – The Internet provides the infrastructure for data transfer – Falling costs of storage make personal data warehouses a feasible alternative 41

42. Customer Interactions in the CMI Paradigm 42 Return to Current & Emerging IS/IT Trends

43. Web 2.0 Space Some of them are technological components (e.g., AJAX, RIA‘s, and XML/DHTML) Some are principles (e.g., participation, collective intelligence, and rich user experience) Some are applications and tools (e.g., Wikipedia, Flickr, and Mashups). 43

44. Technology Push/Demand Pull Theory Demand Pulls Technology – Market and consumer needs may create a demand for new technology/service – Forces research and development efforts to accelerate innovation. Technology Pushes Demand – New technology/service may evolve to spawn innovative uses – Thereby generate demand. 44

45. Examples Technology Push – Early internet allows for early version of e-mail – I/O devices move from teletype machines to CRT – Networking PCs – Cell Phone Displays – LCD Demand Pull – E-mail Servers & Clients – GUI’s – MAC, Windows 3.0, etc. – Graphical Web Browsers – Custom Graphics & Ringtones 45

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47. Conceptual Framework of Web 2.0 Paradigm 47

48. Web 2.0 Tech Push/ Demand Pull Layers Web 2.0 Technology Layer – Enabling technologies or technological concepts – Provide the infrastructure and building blocks for Web 2.0 RIAs – Supports Web 2.0 principles. Web 2.0 Principle Layer – Common fundamental characteristics observed from current web 2.0 platforms – Different from traditional applications or platforms. Web 2.0 Application Layer – Web 2.0 RIAs that implement the lower layer principles using the enabling technologies in the technology layer. Web 2.0 Driver Layer – Market/social/user driving forces that pull the fundamental shifts in technology, online business networks, online communities, and individual online behaviors. 48 Return to Current & Emerging IS/IT Trends

49. The Web 2.0 Revolution, Social Media, and Industry Disruptors social media The online platforms and tools that people use to share opinions, experiences, insights, perceptions, and various media, including photos, videos, and music, with each other disruptors Companies that introduce a significant change in their industries, thus causing a disruption in normal business operations Chapter 12 201249

50. Chapter 12 201250

51. Social Media Social Media Makes History Chapter 12 201251 Return to Current & Emerging IS/IT Trends

52. Digital Data Genius We are rapidly moving toward a world where events, transactions, and processes are all digitized – Purchasing a book online – Using RFID devices to track items – Using a search engine (Google, Bing) to locate information – Using our cell phone to retrieve voice-mail messages 52

53. Digital Data Genius Requirements In order to take advantage of the opportunities afforded by digital data genesis, a firm must develop a digital data genesis capability – Choosing IT to generate and capture data in its native digital form – Integrating IT in the business processes that generate the data of interest – Managing the digital data so produced 53

54. Digital Data Genius Strategies & Decisions Digital data genesis strategies require a disciplined approach to digital data generation and capture, predicated on the recognition of the value of data and the consequent need to architect systems that originate it in a digital format Digital data genesis decisions about digital data genesis should be driven by the desire to seamlessly and unobtrusively collect data that answers basic questions about a transaction 54

55. Digital Data Genius Basic Questions When did the transaction take place? Where did the transaction occur? What was the nature of the transaction? How was the transaction executed? Who initiated the transaction? What was the outcome? 55

56. Digital Data Genius Automation Machine to Machine (M2M) – IT-enabled everyday objects (e.g., utility meters) and pervasive connectivity (e.g., wireless networks) make it is possible to leverage data that is born digital to let the machine generating an event communicate directly with the other machines that can act upon that event. Machine to Person (M2P) – When the actuator on the receiving end of the digital data generated by IT-enabled everyday objects is a person, rather than an object, we talk about M2P transactions. 56

57. Digital Data Genius Opportunities The proliferation of sensors and sensor data that produce usable information with unprecedented speed and granularity provides the opportunity to design information systems expressly designed to take advantage of this environmental change At its most fundamental level, digital data genesis offers the opportunity to bridge the gap between the digital and physical world. In other words, as more and more physical activities come with an automatically generated information representation of the activity, it is increasingly possible to extract value from the symbiotic relationship of physical and digital systems One approach to analyzing this symbiotic relationship between physical activities and information is through the lens of ubiquity, uniqueness, unison, and universality 57

58. Digital Data Genius Opportunities Ubiquity – Information access that is unconstrained by time and space ranks high on the ubiquity scale. – Data that are generated natively in digital form are theoretically available in real time. – Ubiquitous information provides opportunities for rationalizing the use of resources. Uniqueness – Information access that is personalized and individually tailored to the needs of a person or other entity ranks high in uniqueness – Digital data genesis enabled unprecedented levels of uniqueness 58

59. Digital Data Genius Opportunities Unison – Information that is consistent and devoid of redundancies ranks high in unison – At a procedural level unison translates into the standardization of the activities necessary to perform an activity Universality – Information that is standardized and easily shareable across platforms ranks high in universality – At a procedural level universality describes the ease with which separate processes can interlock and coordinate 59

60. The Super Crunchers “In an information-rich world, the wealth of information means a dearth of something else: a scarcity of whatever it is that information consumes” Digital data genesis exacerbates this problem by enabling the creation of unprecedented amounts of information Because data is in a digital form, some argue that the future belongs the supercrunchers – Those who will be able to exploit the availability of data to their advantage and the advantage of their organizations by quickly and effortlessly testing their hunches and intuitions with data 60 Return to Current & Emerging IS/IT Trends

61. The Mobile Platform The most visible trend in computing today is the widespread adoption of the mobile platform A recent development in the area of mobile computing is the rise to prominence of tablets, characterized by their light weight, multi-touch input screens and sustained battery power hanks to its technological characteristics – portability and connectivity –the mobile platform gives users the opportunity for constant access to computing power and access to the data grid 61

62. Characteristics Ubiquity – Ubiquity represents the idea that users of the device can access needed resources from (in theory) anywhere Identifiabilty – Identifiabilty represents the idea that mobile devices uniquely identify their user. In order to access the data grid, both smartphones and tablets utilize the cellular network and use a Subscriber Identification Module (SIM card) Context Awareness – Context Awareness is enabled by the fact that mobile devices can be geolocated. In other words, modern smartphones that incorporate a Global Positioning System (GPS) receiver can communicate their position to any software application running on them 62

63. Mobile Commerce Mobile commerce – Refers to the ability to complete commercial transactions using mobile devices, such as smartphones and tablets – Also known as M-Commerce or mCommerce Has recently received significant impetus as consumers have shown its viability by adopting electronic commerce and self-service through digital mobile devices 63

64. Location-Based Social Networking The rise to prominence of the mobile platform has enabled social networking firms to allow users to reach (some would say annoy!) their contacts more often and in a more timely manner using mobile versions of their service Location-based social networking – Extension of mobile social networking whereby the geographical location of the user becomes an integral component of the service enabling efficient access to context-dependent services – Enable social network users to bridge the gap from access to their friends ratings and reviews (what friends say), to their actual behavior (what friends do) – the ultimate high tech version of “voting with your feet! 64

65. Augmented Reality Augmented reality is a field of computing that has recently received increased attention thanks to the launch of a few augmented reality applications for smartphones, such as Wikitude and Layar Augmented reality consists of superimposing an information layer on top of a real image. Augmented reality is not confined to the mobile platform 65

66. Green IS vs. IT Environmental sustainability: – The notion that it is imperative for the human species to take the lead in the conservation of the natural environment and the sustainable management of its resources Green IT – Focus on reducing energy consumption of IT devices and data centers Green IS – Focus on broadening the role of IT in minimizing adverse impacts on environmental sustainability 66 Return to Current & Emerging IS/IT Trends

67. Gesture-Based Computing

68. Prototype of Mouse - 1965

69. Gesture-Based Computing Gesture-based Computing refers to the ability to interface with devices through natural human movement. Gesture Based Computing is already used widely today. – iPod touch, – Smart Phones, – Tablets, – Nintendo Wii, – Kenect Playstation Move and SMART Boards all respond to natural human gestures.

70. Gesture-Based Computing Different devices can recognize a variety of Gesture-Based inputs. Touch Screens and Surfaces recognize – Touch – Taps – Swipes – Multiple Fingers/Touches Handheld Devices respond when they are – Tilted – Shaken – Moved in space

71. Gesture-Based Computing Game Systems (like the Wii) use hand held remote and an infared sensor to determine players location and movement in 3-D space Hands-Free Systems (like Xbox 360 Kenect) require no controls. A set of cameras recognizes full-body motion.

72. Gesture-based interfaces are changing the way we interact with computers Provide with us a more intuitive way to control devices. New devices take advantage of certain motions that are easy and intuitive to perform Allowing an unprecedented level of control over the surrounding devices. Cameras and sensors translate movements of our bodies without the need of remotes or hand held tracking tools. As the underlying technologies evolve, a variety of approaches to gesture-based input are being explored. The most common applications for gesture-based computing are: – computer games, – file and media browsing, and – simulation and training Gesture-Based Computing

73. Examples iPhone - iPad Children’s Demo Control Surgical Device Hands Free Access Information Marketing Technique Add a Sixth Sense – Information Access The Future - BCI

74. "Good Bye" to the mouse and keyboard "Hello" to Gesture Based Computing! BCI is next Comments and/or Questions? Gesture-Based Computing Return to Current & Emerging IS/IT Trends