ADM2372.Chap03 - ADM2372 Management Information Systems...

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1 ADM2372 Management Information Systems (MIS) Book: Business Driven Information Systems Chapter 3
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2 Agenda Disruptive Technology The Internet Evolution of the Internet Intranet Extranet E-Business http://www.halixo.com/community/blog/
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3 Disruptive Technology: Polaroid Polaroid was a solid company with an innovative technology & a huge customer base One-hour film processing and digital cameras contributed to its downfall How can a company like Polaroid go bankrupt? Digital Darwinism “organizations which cannot adapt to the new demands placed on them for surviving in the information age are doomed to extinction” If Polaroid executives had used Porter’s Five Forces analysis would they have discovered the threat of substitute products ? What could they have done to counter the threat? In his book “ The Innovator’s Dilemma ”, Clayton Christensen claims: Companies that place too much emphasis on satisfying customers’ current needs, while forgetting to adopt new disruptive technology that will meet customers’ future needs, eventually fall behind Watch: http://mitworld.mit.edu/video/108/
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4 M Benyoucef | ADM 2372 | uOttawa.ca 4 Disruptive Technology: disruptive vs. sustaining Disruptive technology A new way of doing things that initially does not meet the needs of existing customers A new way that redefines the competitive playing fields; opens new markets and destroys old ones Sustaining technology Provides us with better products (faster car, cheaper mp3 player) in established markets Disruptive Sustaining
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5 The Internet: A disruptive technology The Internet has disrupted the way businesses operate, employees communicate, and products are developed and sold: Travel sites (e.g., www.Expedia.ca ) 13% of traditional travel agencies closed in 2002 because of their inability to compete with online travel $40 billion annual online music downloads are wrecking the traditional music business The $78 billion movie business will soon be affected Dell increases profit margins while cutting prices by using the Internet to link suppliers and customers Etc. The Internet makes it possible to perform business in ways not previously imaginable It can also cause a digital divide Digital divide – when those with access to technology have great advantages over those without access to technology Evolution of the Internet http://www.moorhouse.co.nz/webservices
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6 The Internet: networks & protocol A network of computer networks which operates world-wide using a common communication protocol Protocol - standards that specify the format of data as well as the rules to be followed during transmission ISP : I nternet S ervice P rovider LAN : L ocal A rea N etwork T1 Line : High-speed telephone line www.howstuffworks.com World Wide Web (WWW) - a global hypertext system that uses the Internet as its transport mechanism Watch this interview with Sir Tim Berners-Lee, the inventor of the WWW
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ADM2372.Chap03 - ADM2372 Management Information Systems...

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