Unformatted text preview: Digital Economy (I):
The Future of Business
ISOM 101, Spring 2011
Lecture 2 2 Overview
What is “IS”?
What are some big trends in technological advancements and
how will they affect us?
How will IT transform the business world in the near future? Prof. Raymond G. Sin (c) 3 “IS” is…
= “Information” + “Systems” The use of technology (“systems”) to:
Prof. Raymond G. Sin (c) 4 Is this information? Courtesy of Prof. Michael Zhang 5 617577574 Courtesy of Prof. Michael Zhang 6 Courtesy of Prof. Michael Zhang 7 Courtesy of Prof. Michael Zhang 8 Dalai Lama
12 Dec 2008 Prof. Raymond G. Sin (c) 9 Courtesy of Prof. Michael Zhang 10 In Sum, “IS” is…
The use of technology to perform functions that transform raw
data into useful information/knowledge
For what purpose? Prof. Raymond G. Sin (c) 11 Prof. Raymond G. Sin (c) 12 Prof. Raymond G. Sin (c) 13 Prof. Raymond G. Sin (c) 14 Prof. Raymond G. Sin (c) 15 Technology is…
Note that the aforementioned processes are not necessarily
electronic or “digital” (though increasingly so)
Some “mechanical” systems:
Old cashiers (machines, not the lady in “BarknShop”!)
Punch cards Prof. Raymond G. Sin (c) 16 Some Examples
Can you name a few examples in your daily life
that involve information technology?
Can you name ONE example in your daily life
that does NOT involve IT?
Taking a bath?
How does clean water reaches you with correct pressure? Eating?
How do you think safe food gets to your table?
From growing a grain of rice to rinsing to distributing to retailing to
Well, unless you don’t rely on an alarm clock Prof. Raymond G. Sin (c) 17 18 Well, NOT Entirely True Soon
Your creditor will not send a Terminator to collect the debt
But major credit unions are
negotiating with the gov’t…
If you don’t pay off your
debt, your credit cards, bank
accounts, EPS, etc… will be
Kind of like “automatic bankruptcy” Prof. Raymond G. Sin (c) Information Technology and
Information Revolution 19 Information revolution driven by information technology (IT)
IT in early days (around 1946 ~ 1950s)
3 meters tall, 50 meters wide, and expensive
500 KHz clock speed (LEO I, 1951)
Only a few machines were affordable, primarily for military Prof. Raymond G. Sin (c) 20 Computers in 1950s, 60s Prof. Raymond G. Sin (c) 21 Some Big and Important Trends (1)
No (affordable) calculator till 70s
My first computer: 286 processor (~10 MHz), 1MB Ram, 16MB HDD By 2006: Core2Duo T6700 (2.67 GHz), 2GB Ram, 140GB SAS
HDD My first modem: ~1000bps (1/10000 of today’s speed)
Download time for 1MB file: 1 HOUR
Subject to uninterrupted connection Full length movie? Weeks, if not forever Prof. Raymond G. Sin (c) 22 Some Big and Important Trends (2)
The PSP in your pocket has processing power of _________ of
the big old giants!!
Moore’s Law (1965)
Gordon Moore (Intel’s Founder)
#transistors on a chip doubles every 18 months Prof. Raymond G. Sin (c) 23 24 25 Prof. Raymond G. Sin (c) 26 Prof. Raymond G. Sin (c) Information Technology and
Information Revolution 27 Clearly, current rate of technological advancements has
exceeded Moore’s Law by HUGE margins
Technology progresses at a faster pace than any of us at any
point in time can image (calculator in 70s -> powerful
supercomputer in your pocket in 90s) For the last 20 years, the power of PC increased by more
than 10 thousand times.
So… just how significant is this? Prof. Raymond G. Sin (c) 28 If cars had developed as fast as PCs for the last 20 years,
we could buy a Rolls-Royce at $_______ and it could run
_____________Km with 1 liter of gas. (Jeffrey Rayport,
Harvard Business School)
Prof. Raymond G. Sin (c) Fancy toys Too “Futuristic”? 31 Robot “Wife” - Aiko 32 Fancy Interfaces Prof. Raymond G. Sin (c) 33 Too Futuristic? Future Home and Revolutionary 3-D
Experience? 34 35 We already have the technology! 36 Where is the big picture? Technological Advancements –
Some Implications (1)
For an average computer user:
More sophisticated software
More fancy games and interfaces
More sophisticated graphics and MPx with excellent sound
quality Prof. Raymond G. Sin (c) 37 Technological Advancements –
Some Implications (2) 38 For an average consumer:
Convenience becomes the norm, rather than something “extra”
Everyone expects fast check-outs at supermarkets
No more searching for coins in front of vending machines, for taking
a bus, MTR, etc.
More online shopping and door-to-door deliveries
Business implications on this: to be discussed in length in the next
More programmable and water/energy-efficient laundry machines, dish
washers, gas stoves
More fancy home-theater systems
More e-banking, e-pay, e-channel, e-crimes, e-everything
Prof. Raymond G. Sin (c) 39 Everything’s Amazing…
Yet Nobody’s Happy Prof. Raymond G. Sin (c) ...
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- Spring '10
- Prof. Raymond G. Sin, Raymond G. Sin, Prof. Raymond G.