Emerging Information Systems Chapter 8

Competitive Advantage in Being at the Cutting Edge To achieve competitive advantage –Differentiate your products and services –Operate at a lower cost than competitors Use state-of the-art or emerging technologies

Profit = Revenue – Costs = (Price  Output) – (Cost  Input) Productivity = Output  Input Profit = Input (Price  Productivity – Cost) Yahoo - Bill Gates upbeat on technology driving economy

Being at the Cutting Edge Versus the Bleeding Edge Using emerging information systems entails a risk –Competitive advantage short-lived because rivals can copy these systems –Adopting too quickly is expensive if the technology does not catch on

Technology Forecasting "This 'telephone' has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us." Western Union, internal memo, 1876

"Heavier-than-air flying machines are impossible." Lord Kelvin, president, Royal Society, 1895 "Everything that can be invented has been invented." C.H. Duell, commissioner, U.S. Office of Patents, 1899

"Who the hell wants to hear actors talk?" H.M. Warner, Warner Brothers, 1927 "I think there is a world market for maybe five computers." Thomas Watson, chairman, IBM, 1943

"There is no reason for any individuals to have a computer in their home." Ken Olsen, president, Digital Equipment Corporation, 1977

The Nature of Emerging Systems Many emerging systems focus on two goals –Supporting virtual teams –Creating more and better customer contact Trend of emerging systems is technology convergence

Requirements for Being at the Cutting Edge An industry with strong competitive pressures An organization –Whose people, structure, and processes adapt well to change –Able to eliminate internal bureaucracy and political squabbles –With the necessary human capital –With a tolerance for taking risks

Implementing Emerging Systems Technologies for virtual teamwork Technologies for improved customer contact

Collaboration Technologies for Virtual Teamwork Videoconferencing Groupware Group support systems

Video Conferencing Stand-alone videoconferencing –Expensive systems that require special conference rooms Desktop videoconferencing –Uses existing PC with video equipment –Three key features On user’s desk for ad hoc meetings Supports software application sharing Supports whiteboarding software

Videoconferencing Screen

Desktop Videoconferencing Unit

Groupware Software that enables people to work together more effectively –To communicate Uses “Pull” technology on discussion databases –To collaborate Allows shared programming code, contracts, proposals, and other company documents Supports threaded discussion forums –To coordinate activities Supports workflow

Lotus Notes

So What is Groupware? Rich documents Links Replication Full text searching Security Messaging Calendaring Workflow Connectivity

Groupware Products Lotus Notes –First in the field Netscape Microsoft Exchange

Hurdles to Successful Groupware Implementation Convincing users to share information –Old work rules and incentives do not reward sharing –Information may reflect poorly on an individual or business unit

Group Support Systems Help groups solve problems/make decisions Networked PCs and specialized software Typical uses –Strategic planning –Focus groups –Brainstorming System requirements definition Business process reengineering Quality improvement

The Need for GSS Group process gains –Group has more information than one person –Groups catch individual errors –Groups stimulate each others’ creativity Group process losses –Dominant people dominate meeting –Shy people do not speak –Higher rank intimidates –Emotions get in way –People free ride –Overload of information Losses often outweigh gains

The Benefits of GSS Process structuring: Keeps the group on track and helps them avoid costly diversions Parallelism: Enables many people to speak and listen at the same time Group size: Enables larger group sizes Group memory: Automatically records member ideas, comments, and votes Access to external information: Can easily incorporate external electronic data and files Spanning time and space: Enables members to collaborate from different places and at different times Anonymity: Member ideas, comments, and votes not identified to others

Integrative Systems to Improve Customer Contact Goal is disintermediation –Remove non-value-added customer interactions Computer Kiosks Telephone Interfacing Audiotex Automated Attendant Fax-On-Demand Telephone /Database Integration

Process of Disintermediation

Limits of Customer Contact Systems Customers want to speak with a human Some questions complex and need human assistance

Web Sites for Collaboration Interactive Web sites enable users to engage in real-time collaboration with others –Links from Web pages to –Internet Usenet Newsgroups –Online chat functions