Class 2 Impact of Technology Trends S2023a

Impact of Technology Trends
AFM 241 Week 1

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Today’s Learning Objectives
 Start learning the language of “business and technology”
 Gain awareness of technology trends and the importance of thinking
critically about their impact on industries, businesses, and society:
 promise and peril,
 treasure and tumult.
 Consider the implications of technology for your future

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Let’s start with Information Technology or IT
 Information Technology can be defined technically as a set of interrelated
components that collect (or retrieve), process, store, and distribute data or
information to support decision making and control in an organization.
(Laudon & Laudon 2014) --- Nature
 Is a purposefully designed system that brings data, computers (hardware and
software), procedures, and people together to manage information important
to an organization’s mission
 Why we need IT: to help understand and to represent the world and then act

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IT – what, where, and why
 Information Technology is created by combining:
 hardware
 software
 data
 In the context of an organization’s people, policies, processes, and procedures
 To:
 provide information processing capabilities to handle information
 provide information for managerial decision making
 solve problems

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Combination of business & technology creates change
What do terms introduced in Chapter 1 mean?
 Digital transformation
 Platforms (not products) and ecosystems
 Cloud Computing & Software as a Service (SaaS)
 Internet of Things (IoT)
 Drones, 3-D printers, and more
Introducing you to the
languages of BET

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Digital transformation can reinvent an industry
 Industries have fundamentally changed during your lifetime.
 Uber – largest “taxi service” owns no vehicles for hire
 Airbnb – largest accommodations provider owns no properties
 Facebook – most visited media destination doesn’t create its own content
 China’s Alibaba – largest retailer owns no inventory*
 But a report in Forbes suggests that 72 percent of firms are failing at digital
transformation.
* Tom Goodwin. TechCrunch post referenced in Chapter 1.

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Businesses can create powerful platforms & ecosystems
 A platform business connects groups of users. These businesses have existed for
years; for example, a newspaper connected subscribers and advertisers.
 Technology makes building and scaling platforms simpler and cheaper.
 Examples of companies with a platform business model/ecosystem:
 Google – world’s most profitable ad-driven “media” company
 Apple – most valuable and profitable firm in the United States
 Amazon – posted record profits and hired more workers in a shorter time than
ever before during pandemic
More in
Week 4

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Computing resources and software can become services
 Cloud Computing
 Companies and individuals can ‘rent’ computing resources (e.g., processing and
storage) that we previously had to ‘buy’ at great expense
 Example: Amazon Web Services, biggest player and adding capacity to grow
 Software as a Service (SaaS)
 Companies and individuals can ‘subscribe’ to use software instead of buying a
one-time license and subsequent upgrades
 Examples: Microsoft Office, Adobe Acrobat
More in
Week 5

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Internet of Things – tech can connect more than people
 Internet of Things (IoT):
 A vision where low-cost sensors, processors, and
communication are embedded into products and our
environment.
 Allows a vast network to collect data, analyze input, and
automatically coordinate collective action.
 There are already more so-called IoT-connected devices than the
entire world population of humans, and the number is growing.
Source: RossHelen/Shutterstock.com
Source: Maridav/Shutterstock.com
Source: Monkey Business Images/
Shutterstock.com
More in
Week 12

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Businesses can leverage drones, 3-D printers, and more
Source: phoelixDE/Shutterstock.com
Source: NASA;
https://www.nasa.gov/mission_pages/station/research/news/3Dr
atchet_wrench
Source: YouTube; Embark, Frigidaire®, and Ryder Partner to Pilot
Automated Driving Technology

Any questions?
 Information technology
 Terminology/language
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Questions?

12

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Key trends driving change
 Mobile – smartphone, app store, and social media accelerate business growth
 Moore’s Law & other factors – faster, cheaper technology accelerates globalization
and economic development
 Big Data – enabling analytics and artificial intelligence
 Global pandemic – deeply embedded tech into our lives at incredible pace
“But with promise comes peril.”*
* John Gallaugher, Information Systems A Manager’s Guide to Harnessing Technology, Version 9.0, page 20.

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Mobile accelerating business growth
6+ billion smartphone users worldwide  App stores provide immediate access
to low-cost distribution channels
 Social media creates awareness,
sometimes virally, without ad dollars
Source: Statistica. Technology & Telecommunications, “Number of smartphone subscriptions
worldwide from 2016 to 2027.”

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Faster, cheaper technology accelerates globalization
 China has more Internet users than any other country.
 Chinese mobile payment volume is over 250 times greater than the payment
volume of their counterparts in the United States.
 China has spectacularly launched several publicly traded Internet firms,
including Baidu, Tencent, and Alibaba—the largest IPO of all time.
 India has ridden technology to become a global IT powerhouse.
 India now hosts a nearly $200 billion IT services industry, and Apple has even
begun manufacturing iPhones in India.
 India’s TCS (Tata Consulting Services) is the world’s number two technology
solutions firm, second in size only to IBM.

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Faster, cheaper technology aids economic development
 Sub-Saharan African nations are utilizing fast/cheap tech as economic lubricant.
 Seventy percent of the region’s population lives within range of mobile phone
coverage.
 Many nations in sub-Saharan Africa now rank among the world’s fastest
growing economies.
 Tech giants including Google, IBM, and Microsoft now run R&D centers and
significant operations in several African nations.
Promise: empower the poor. Peril: poison the planet.

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Big Data enabling analytics and Artificial Intelligence
 ‘Big Data’ – massive datasets, structured & unstructured
 Data analytics – insights from small and big datasets
 Artificial Intelligence (AI):
 Uses math/algorithms to mimic intelligence
 Umbrella term for: machine learning, deep learning,
Natural Language Processing (NLP), and
reinforcement learning

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Global pandemic embedded tech at an incredible pace
 Screen time skyrocketed > online ad revenue over 50% of total for first time
 Streaming services boomed > growth for existing players and attracted new ones
 e-commerce exploded > many small businesses accelerated the move online
 Online grocery delivery > demand doubled in just a few months
 Acceleration of vaccine development > treatments to market in record time

Any questions?
 technology trends
 the importance of thinking critically
about the impact of trends
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Questions?

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Geek up - Tech is everywhere and you’ll need it to thrive
 Tech knowledge has become a key differentiator for a job seeker.
 With computing getting cheaper and faster, it is being used everywhere.
 In your pocket.
 In your vacuum.
 On the radio frequency identification (RFID) tags that track your luggage at the
airport.
 All modern managerial disciplines have been impacted by technology.

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Finance
 Tech leads to the development of new businesses and rapid changes in the
industry landscape, influencing how investment bankers value companies for:
 Transactions in IPO markets
 Merger and acquisition (M&A) deals
 AI approaches that beat major trading indices and traditional investment portfolio
allocation strategies and robo-advisors fundamentally change role of traders.
 Also impacts those involved in lending to tech firms and working in financial
institutions (e.g., Chase spends $4 billion per year on technology)

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Accounting
 The reliability of any audit is tied to the reliability of the underlying technology.
 Increased regulation has strengthened the link between accounting and
technology.
 Sarbanes-Oxley Act: Raises the executive and board responsibilities and ties
criminal penalties to certain accounting and financial violations.
 Major accounting firms have spawned tech-focused consulting practices.

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Marketing
 Use online channels to track and monitor consumer activities.
 Shift ad spending from traditional media to the Web to:
 Track customers
 Analyze campaign results
 Modify tactics
 Use apps to develop location-based messages and services and
cashless payment.
 Use social media to generate sales, improve reputation, better
serve customers, and innovate.
Search engine
marketing (SEM)
Search engine
optimization (SEO)
Customer
relationship mgmt.
(CRM)
Personalization
systems
Balance gathering
data and respecting
consumer privacy

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Operations
 Quality programs
 Process redesign
 Supply chain management
 Factory automation
 Service operations
Source: Chaay_Tee/Shutterstock.com
Photo credit: How the Tesla Model S is Made | Tesla Motors Part 1
(WIRED)

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Human Resources
 Knowledge management systems are transforming into social media technologies.
Helps in organizing and leveraging teams of experts.
 Technology is used for employee training, screening, and evaluation.
 Recruiting has moved online.
 Grounded in information systems that search databases for specific skill sets.
 Job seekers write résumés with keywords, as the first cut is likely made by a
database search program, not a human being.
 Social media is “the new résumé”.

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Law
 Activity has increased in the areas of:
 Intellectual property
 Patents
 Piracy
 Privacy
 Firms need legal teams with the skills to:
 Determine whether a firm can legally do what it plans.
 Help them protect proprietary methods and content.
 Help enforce claims in the home country and abroad.

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Information Systems
 Information- and computer-related careers are expected to grow by double digits
for at least the next decade.
 Programmers
 Experts in user-interface design, process design, and strategy
 Consulting and field engineering
 Project management
 Data analytics

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So why are we REALLY here?
 You need to understand the intersection of business and technology to:
 develop critical-thinking skills specific to technology.
 evaluate new, emerging technologies.
Why? “Want to lead today and in the future?
 Tech will be deeply embedded in nearly every decision you make, and
 Tech will likely empower your decision-making through analytics and artificial
intelligence insights.”*
* John Gallaugher, Information Systems A Manager’s Guide to Harnessing Technology, Version 9.0, page 20.

Any questions?
 implications of technology for your
future
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Questions?

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Additional References
 Information Systems. A Manager's Guide to Harnessing Technology, Version 9.0.
John Gallaugher, Chapter 1.1, 1.2, and 1.3.

Class 2 Impact of Technology Trends S2023a

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