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Discussion Question Consider the organization you work for or an organization with which you are familiar

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Discussion Question Consider the organization you work for or an organization with which you are familiar. Using that organization, answer the following questions in your discussion post: • • • • Describe the organization you have selected to your classmates and instructor in a short summary. How have technological trends helped the organization innovate its business processes? How has IT technology caused disruption in the organization? Explain. How did the disruption facilitate a competitive advantage? Directions: • • • • • Embed course material concepts, principles, and theories, which require supporting citations along with at least two scholarly peer reviewed references supporting your answer. Reply to at least two of your peers’ initial posts. These replies need to be substantial and constructive in nature. They should add to the content of the post and evaluate/analyze that post’s answers. Normal course dialogue doesn’t fulfill these two peer replies but is expected throughout the course. Keep in mind that within your initial post, answering all course questions is required. Use University academic writing standards and APA style guidelines. Be sure to support your statements with logic and argument, citing all sources referenced. It is strongly encouraged that you use your own words with ZERO plagiarism in the content. IT for Management: On-Demand Strategies for Performance, Growth, and Sustainability Eleventh Edition Turban, Pollard, Wood Chapter 1 Disruptive IT Impacts Companies, Competition, and Careers Learning Objectives (1 of 4) Copyright ©2018 John Wiley & Sons, Inc. 2 Doing Business in the On-Demand Economy • On-demand Economy is the economic activity created by technology companies that fulfill consumer demand through the immediate provisioning of products and services. • Propelled by proliferation of o o o Smartphone-connected consumers Simple and secure purchase flows Location-based services • Growth of app-driven companies like Airbnb, Uber, GrubHub have disrupted markets. Copyright ©2018 John Wiley & Sons, Inc. 3 Doing Business in the On-demand Economy: Airbnb, Uber On-demand business models of Airbnb and Uber have been extremely successful. Copyright ©2018 John Wiley & Sons, Inc. 4 Key Strategic and Tactical Questions Copyright ©2018 John Wiley & Sons, Inc. 5 Doing Business in the On-demand Economy: Digital Business Models Digital business models refer to how companies engage their customers digitally to create value via websites, social channels, and mobile devices. Copyright ©2018 John Wiley & Sons, Inc. 6 Doing Business in the On-Demand Economy: Terminology • Business Model is how an enterprise generates revenue or sustains itself. • Digital Business Model is defined by how a business makes money via digital technology. • Customer Experience (CX) is about building the digital infrastructure that allows customers to do whatever they want to do, through whatever channel they choose to do it. Copyright ©2018 John Wiley & Sons, Inc. 7 Doing Business in the On-demand Economy: Digital Business Models • Why develop digital business models? Deliver an incredible customer experience o Turn a profit o Increase market share o Engage their employees o • How does the customer experience (CX) measure up? o There is a strong relationship between the quality of a firm’s CX and brand loyalty, which in turn increases revenue. Copyright ©2018 John Wiley & Sons, Inc. 8 Top IT Management Issues 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Technology Alignment with the Business Security, Cybersecurity, & Privacy Innovation IT Agility & Flexibility Business Cost Reduction & Controls IT Cost Reduction & Controls Speed of IT Delivery & IT Time to Market Speed of IT Delivery & IT Time to Market Business Strategic Planning Business Productivity & Efficiency Comparison of Top 10 Management Priorities (Adapted from Kappelman, McLean, Johnson, and Gerhart 2017) Copyright ©2018 John Wiley & Sons, Inc. 9 Doing Business in the On-Demand Economy: Business Objectives (1 of 2) 1. Product Development—IT helps businesses respond quickly to changing customer demands 2. Stakeholder Integration—companies use their investor relations websites to communicate with shareholders, research analysts, and others in the market 3. Process Improvement—An ERP systems replaces dozens of legacy systems for finance, human resources, and other functional areas, to increase efficiency and cost-effectiveness of internal business processes Copyright ©2018 John Wiley & Sons, Inc. 10 Doing Business in the On-Demand Economy: Business Objectives (2 of 2) 4. Cost Efficiencies—IT allows companies to reduce transaction and implementation costs, such as costs of duplication and postage of email vs snail mail. 5. Competitive Advantage—Companies can use agile development, prototyping, and other systems methodologies to bring a product to market cost effectively and quickly. 6. Globalization—companies can outsource most of their non-core functions, such as HR and finance, to offshore companies and use ICT to stay in contact with its global employees, customers and suppliers 24/7 Copyright ©2018 John Wiley & Sons, Inc. 11 Doing Business in the On-Demand Economy: Questions (1 of 2) 1. What precipitated the on-demand economy? 2. How is IT contributing to the success of the on-demand economy? 3. List the six IT business objectives 4. What are the key strategic and tactical questions that determine an organization’s profitability and management performance? Copyright ©2018 John Wiley & Sons, Inc. 12 Doing Business in the On-Demand Economy: Questions (2 of 2) 5. What is a business model? 6. What is a digital business model? 7. Give two examples of how companies are transitioning to digital business models. 8. What factors are driving the move to digital business models? Copyright ©2018 John Wiley & Sons, Inc. 13 Learning Objectives (2 of 4) Copyright ©2018 John Wiley & Sons, Inc. 14 Business Process Improvement: Terminology (1 of 2) • Business Process is a series of steps by which an organization coordinates and organizes tasks to get work done. • Process is comprised of the activities that convert inputs into outputs by doing work. • Deliverables are outputs created through work toward a desired benefit or expected performance improvement. • Performance is a result of processes where maximizing efficiency over one’s competitors is a critical success factor. Copyright ©2018 John Wiley & Sons, Inc. 15 Work that transforms input & acts on data and knowledge Copyright ©2018 John Wiley & Sons, Inc. DELIVERABLES Raw materials, data, knowledge, expertise ACTIVITIES INPUTS Business Process Improvement: Components of a Business Process Products, services, plans, or actions 16 Business Process Improvement: Characteristics • Business Process Characteristics o o o o Formal Processes or Standard Operating Procedures (SOP): documented and have well-established steps. Informal Processes: typically undocumented, undefined, or are knowledge-intensive. Range from slow, rigid to fast-moving, adaptive. Can be rigid, resistant to change, or adaptive, responding to change. Copyright ©2018 John Wiley & Sons, Inc. 17 Eight Phases of Business Process Reengineering Copyright ©2018 John Wiley & Sons, Inc. 18 1. Develop Vision & Objectives 8. Perform Continuous Improvement 2. Understand Existing Processes 3. Identify Process for Redesign 7. Evaluate New Process 6. Make New Process Operational 4. Identify Change Levers 5. Implement New Process Eight Phases of Business Process Reengineering Copyright ©2018 John Wiley & Sons, Inc. 19 Business Process Improvement: BPR • Process Improvement Continuous examination to determine whether processes are still necessary or operating at peak efficiency by eliminating wasted steps called Business Process Reengineering (BPR). o Digital technology enhances processes by: o • Automating manual procedures • Expanding data flows to reach more functions and parallel sequential activities • Creating innovative business processes to create new models. Copyright ©2018 John Wiley & Sons, Inc. 20 Gaining a Competitive Advantage: Components Copyright ©2018 John Wiley & Sons, Inc. 21 Business Process Improvement: Terminology (2 of 2) • Agility is the ability to respond quickly. • Responsiveness is IT capacity that can be easily scaled up or down as needed. • Flexibility is the ability to quickly integrate new business functions or to easily reconfigure software or applications. IT agility, flexibility, and mobility are tightly interrelated and fully dependent on an organization’s IT infrastructure and architecture. Copyright ©2018 John Wiley & Sons, Inc. 22 Business Process Improvement: IT Consumerization • IT Consumerization is the migration of consumer technology into enterprise IT environments. It’s caused by personally owned IT becoming a capable and cost-effective solution for expensive enterprise equivalents. Copyright ©2018 John Wiley & Sons, Inc. 23 Software Support for BPM • Process Management o o o Consists of methods, tools, and technology to support and continuously improve business processes also known as Business Process Management (BPM). BPM software is used to map processes performed manually, by computers, or to design new processes. BPM requires buy-in from a broad cross section of the business, the right technology selection, and highly effective change management to be successful. Copyright ©2018 John Wiley & Sons, Inc. 24 Business Process Improvement and Competitive Advantage 1. What is a business process? Give three examples. 2. What is the difference between business deliverables and objectives? 3. List and give examples of the three components of a business process. 4. Explain the differences between formal and informal processes. 5. What is the standard operating procedure (SOP)? 6. What is the purpose of business process management (BPM)? 7. What are the characteristics of an agile organization? 8. Explain IT consumerization. 9. Define competitive advantage. Copyright ©2018 John Wiley & Sons, Inc. 25 Learning Objectives (3 of 4) Copyright ©2018 John Wiley & Sons, Inc. 26 IT Innovation and Disruption: Intro SMAC Model • Social-Mobile-Analytics-Cloud (SMAC) Model o o o o Huge data centers accessible via the Internet form the fore for the cloud by providing 24/7 access to storage, apps, and services. Handheld and wearable devices and their users form the edge of the cloud. Social channels connect the core and edge. The SMAC integration creates the technical and services infrastructure needed to digital business. Copyright ©2018 John Wiley & Sons, Inc. 27 IT Innovation and Disruption: SocialMobile-Analytics-Cloud (SMAC) Model of the integration of cloud, mobile, and social technologies. The cloud forms the core. Mobile devices are the endpoints. Social networks create the connection. Copyright ©2018 John Wiley & Sons, Inc. 28 IT Innovation and Disruption: SMAC Influence • Social-Mobile-Analytics-Cloud (SMAC) o o o Powerful social influences impact advertising and marketing. Consumer devices go digital and offer new services. eBay’s move to cloud technology improves sellers’ and buyers’ experiences Copyright ©2018 John Wiley & Sons, Inc. 29 IT Innovation and Disruption: Mega Trends (1 of 4) Mega Trends are forces that shape or create the future of business, the economy, and society. • Connectivity o o o Need to connect across multiple channels and platforms Cloud Services are any computing resource provided over the Internet on demand, rather than run applications from software stored on company-owned server or computer. Digital resources no longer dependent on buying/owning that resource. Copyright ©2018 John Wiley & Sons, Inc. 30 IT Innovation and Disruption: Mega Trends (2 of 4) • Big Data and Data Analytics Commonly defined as high-volume, mostly text data o 80-90% consists of Unstructured data, having no predictable format o Multiple channels and sources: o • Machine-generated data from sensors and mobile devices • Social media content from clicks, tweets, blogs • Clickstream data from Internet searches Copyright ©2018 John Wiley & Sons, Inc. 31 IT Innovation and Disruption: Mega Trends (3 of 4) • Digitization is the process of transforming any kind of activity or information into a digital format that can be collected, stored, searched, and analyzed electronically—and efficiently. Banks digitizing mortgage application/decision process cut costs per new mortgage by 70% o Telecomm company created self-serve, prepaid service to order and activate phones o Shoe retailer using in-store inventory system to know immediately if item was in stock o Copyright ©2018 John Wiley & Sons, Inc. 32 IT Innovation and Disruption: Mega Trends (4 of 4) • Machine-to-machine (M2M) Technology o o o Enables sensor-embedded products to share reliable real time data via radio signals Internet of Things (IoT) refers to a set of capabilities enabled when physical things are connected to the internet via sensors M2M and IoT are widely used to automate businesses ranging from transportation to healthcare Copyright ©2018 John Wiley & Sons, Inc. 33 IT Innovation and Disruption: Lessons Learned Companies using technology as a genuine competitive differentiator can reap these benefits: 1. Exploit the power of software 2. Develop, deliver, disrupt—quickly! 3. Boost speed and efficiency with Automated Programming Interfaces (AIPs) 4. Leverage third-party innovation 5. Maximize returns with smarter IT investments Copyright ©2018 John Wiley & Sons, Inc. 34 IT Innovation and Disruption 1. What are the benefits of cloud computing? 2. What is machine-to-machine (M2M) technology? Give an example of a business process that could be automated with M2M. 3. Describe the relationships in the SMAC model. 4. What impacts are the SMAC model having on business? 5. Why have mobile devices given consumers more power in the marketplace? 6. Explain why connectivity is important in today’s on-demand economy. 7. In what ways is IT disrupting business? Copyright ©2018 John Wiley & Sons, Inc. 35 Learning Objectives (4 of 4) Copyright ©2018 John Wiley & Sons, Inc. 36 IT and You: On-Demand Workers Profile of U.S. On-Demand Workers (45 million) • Expected their financial situation to improve over the coming year—28.8 million • Under 35 years of age—23 million • Live in urban areas—18.45 million • 63% are motivated to work in the on-demand economy to earn supplemental income Survey (Chriss, 2016) Copyright ©2018 John Wiley & Sons, Inc. 37 IT and You: IT as a Career • IT job growth is estimated at 12% from 2014 to 2024, faster than the average for all other occupations. This means about 488,500 new jobs. • The median annual wage for computer and IT occupations was $81,430 in May 2015, which was considerably higher than the median annual wage of $36,200 for all other occupations • In 2017 only 2% of all IT workers were unemployed Copyright ©2018 John Wiley & Sons, Inc. 38 IT and You: IT as a Career (1 of 2) • IT Managers—play a vital role in the implementation and administration of digital technology. They plan, coordinate, and direct research on the computerrelated activities of firms. • Chief Technology Officers (CTOs)—evaluate the newest and most innovative technologies and determine how they can be applied for competitive advantage. • IT Project Managers—develop requirements, budgets, and schedules for their firm’s information technology projects. They coordinate such projects from development through implementation. Copyright ©2018 John Wiley & Sons, Inc. 39 IT and You: IT as a Career (2 of 2) • Data Scientists manage and analyze massive sets of data for purposes such as target marketing, trend analysis, and the creation of individually tailored products and services. Enterprises that want to take advantage of big data use real time data from tweets, sensors, and their big data sources to gain insights into their customers’ interests and preference, to create new products and services, and to respond to changes in usage patterns as they occur. o Big data analytics has increased the demand for data scientists. o Copyright ©2018 John Wiley & Sons, Inc. 40 IT and You: Become an Informed IT User • Understand how using IT can improve organizational performance, benefit organizational growth, facilitate teamwork, and improve individual productivity • Understand how businesses can use IT to enhance the customer experience • Be able to offer input into the development and use of IT • Know how to find emerging technologies to make radical improvement in business processes • Foster your entrepreneurial tendencies to start your own ondemand business Copyright ©2018 John Wiley & Sons, Inc. 41 IT and You 1. Why is IT a major enabler of business performance and success? 2. Explain why it is beneficial to study IT today. 3. Why are IT job prospects strong? Copyright ©2018 John Wiley & Sons, Inc. 42 Copyright Copyright © 2018 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Act without the express written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein. Copyright ©2018 John Wiley & Sons, Inc. 43