LEC06_v2 - BUSI1003 Introduction to Management Information...

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1 BUSI1003 Introduction to Management Information Systems LEC06 IT Infrastructure and Emerging Technologies References: Laudon, K. C. and Laudon, J. P., Management Information Systems: Managing the Digital Firm, 11th edition, Prentice-Hall, 2009.
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2 Our Main Focus Managing IT infrastructure Managing Hardware & Software Assets Case Discussion
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3 IT Infrastructure IT Infrastructure IT infrastructure provides the foundation for serving customers, working with vendors, and managing business processes. It defines the capabilities of the firm today and in the near term. It can be seen as technology or as service clusters. The service-based definition focuses on the services provided by the hardware and software, such as computing platforms, telecommunications, physical facilities management, application software, data management, IT management, IT standards, IT educations, and IT research and development. The service platform perspective highlights the business value provided by IT infrastructure.
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4 Connection Between the Firm, IT Connection Between the Firm, IT Infrastructure & Business Capabilities Infrastructure & Business Capabilities
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5 Evolution of IT Infrastructure Evolution of IT Infrastructure
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6 Technology Drivers of Technology Drivers of Infrastructure Evolution Infrastructure Evolution Moore’s Law and microprocessing power The power of microprocessors doubles every 18 months The Law of Mass Digital Storage The amount of digital information is roughly doubling every year Metcalfe’s Law and network economics The value or power of a network grows exponentially as a function of the number of network members Increasing returns to scale
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7 Technology Drivers of Technology Drivers of Infrastructure Evolution Infrastructure Evolution Declining communications costs and the Internet Rapid decline in Internet connection and overall communication costs Standards and network effects Technology standards unleash powerful economies of scale and result in price declines as manufacturers focus on the products built to a single standard
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8 IT Infrastructure IT Infrastructure Components/Ecosystem Components/Ecosystem
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9 Hardware Platform Trends and Hardware Platform Trends and Emerging Technologies Emerging Technologies The integration of computing and telecommunications platforms Client side: Cell phone are taking on functions of handheld computers Servers side: The growing success of Internet telephone systems Grid computing Involves connecting geographically remote computers into a single network to create a virtual supercomputer by
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