1. Disruptive Technology
How can a company like Polaroid go bankrupt?
Digital Darwinism – implies that 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 of the digital camera?
What could they have done to combat this threat?

2. Disruptive Versus Sustaining Technology
What do steamboats, transistor radios, and Intel’s 8088 processor all have in common?
Disruptive technology – a new way of doing things that initially does not meet the needs of customers
Sustaining technology – produces an improved product customers are eager to buy
What do steamboats, transistor radios, and Intel’s 8088 processor all have in common?
Ans: they are all disruptive technologies
CLASSROOM EXERCISE
Total Disruptive
Break your students into groups and ask them to identify the primary differences between disruptive and sustaining technologies, along with several current examples of each
Disruptive technologies:
Disruptive technologies redefine the competitive playing fields of their respective markets
Disruptive technologies tend to open new markets and destroy old ones
Disruptive technologies typically cut into the low end of the marketplace and eventually evolve to displace high-end competitors and their reigning technologies
Sustaining technologies:
Sustaining technologies tend to provide us with better, faster, and cheaper products in established markets
Sustaining technologies virtually never lead in markets opened by new and disruptive technologies

3. The Internet – Business Disruption
One of the biggest forces changing business is the Internet
Organizations must be able to transform as markets, economic environments, and technologies change
Focusing on the unexpected allows an organization to capitalize on the opportunity for new business growth from a disruptive technology
Do your students agree that the Internet is an example of a disruptive technology?
When it was first introduced would they consider it a form of disruptive technology?
CLASSROOM EXERCISE
Finding Innovation
Innovation, new ideas, and new technology are exciting. It is currently estimated that everything we know technically will represent 1 percent of all technology in Break your students into groups and ask them to search the Internet for the most exciting form of innovation that is going to hit our market and change our lives over the next ten years. Have your students present their findings to the class and offer a small prize to the winner.
A few examples include:
Computers that offer smells, click on a perfume and the scent permeates from your computer, movie theatres will offer smells that correspond to the movie
Electronic toilets – analyze output and let you know if you getting sick days before the cold actually hits. Great for rest homes and hospitals
Planes the size of small ships that offer shopping and restaurants
What's For Dinner? Just Call Your Refrigerator – show your student’s the kitchen of the future

4. The Internet
Network of Networks, established in 1969 by U. S. Defense Dept. for research.
Number of users doubling each year for most of middle to late 90s. Now doubles about every two years. “.com” s have taken over.
No central authority, originally for nuclear disaster reasons. Taxes, gambling, etc.?
, Usenet, FTP, telnet: WWW has all of these. 23

5. What is the Internet? A Physical Entity...
server
client
A Physical Entity...
a collection of thousands of computer networks
server
client
main
frame
main
frame
server
client
server
client 24

6. What is the Internet? Recognized Standards (TCP/IP)
server
client
Recognized Standards (TCP/IP)
protocols for transferring information across
various computer platforms
Apple
Talk
server
client
IBM
Windows
main
frame
Vax VMS
main
frame
server
client
server
client
IBM VM/CMS
Sun
Unix
IBM
Windows 26

7. How many Users?
147 Million as of 9/98, 195 million as of 8/99, 378 million as of 9/00, 580 million as of 5/02, 1.08 billion as of 2005, 1.83 billion as of 2010 ( then click on “stats” and then “Web Worldwide”).
2.1 billion by 2012?

8. How many Servers?
3.2 Million as of 9/98, 7 Million as of 8/99, 21 Million as of 9/00, 37 Million as of 7/02, 143 million as of 10/07, 206 million as of 3/10 ( then go to Web Survery survey).

9. Getting Around the WWW
IP Address. Four-part numeric address for any device connected to the Internet. Only a few billion possibilities. IPng on its way - trillion.
DNS: Domain Name System. Translates IP into meaningful site name and vice versa. TLD, or “top level domains”, are things like “.com”. In the ballpark of $9 (and increasingly less) a year for registration.

10. E-Business How do e-commerce and e-business differ?
E-commerce – the buying and selling of goods and services over the Internet
E-business – the conducting of business on the Internet including, not only buying and selling, but also serving customers and collaborating with business partners
Ask your students to differentiate between e-commerce and e-business
E-commerce refers only to online transactions
E-business refers to online transactions, serving customers and collaborating with business partners
On July 18,2005 media conglomerate News Corp. bought Intermix Media, the company that owns MySpace and about 30 other sites, for $580 million in cash. Los Angeles-based Intermix owns 53% of MySpace and plans to buy the rest. It will become part of News Corp.'s new Fox Interactive Media unit, which was created on July 15, 2005 and also is based in L.A.
Since MySpace is a social networking site, why would a business conglomerate such as News Corporation want to purchase it for $580 million?

11. THE IMPORTANCE OF THE E-BUSINESS MODEL
Basic Internet
business models
Building a Web site does not mean that customers will come
Traditional means of customer acquisition such as advertising, promotions, and public relations are just as important with a Web site
Once customers are attracted, a Web site must create a “buzz”
Discuss the Fruit of the Loom (FOL) example on page 139
Class Activity: Ask your students to compile a list of several examples of each type of e-business model
Ans: B2B: grainger.com
B2C: carfax.com
C2B: ideas.com
C2C: eBay.com

12. CHALLENGES OF THE E-BUSINESS MODELS
Three primary challenges include:
Security concerns
60% of Internet users consider the Internet unsafe
Taxation
Internet remains free of traditional forms of taxation
Consumer protection
Unsolicited goods and communications
Illegal or harmful goods, services, and content
Insufficient information about goods or their suppliers
Invasion of privacy
Cyberfraud
Ask your students to identify additional challenges for e-business models? Ans: High cost of developing a dynamic Web site

13. Teams, Partnerships, and Alliances
Information technology can make a business partnership easier to establish and manage
Information partnership – occurs when two or more organizations cooperate by integrating their IT systems, thereby providing customers with the best of what each can offer
The Internet has dramatically increased the ease and availability for IT-enabled organizational alliances and partnerships
Provide a few examples of how the Internet has enabled information partnerships?
A good example is Amazon.com
The company developed a profitable business segment by providing e-business outsourcing services to other retailers who use Amazon’s Web site software
Retailers partnering with Amazon.com include Marshall Fields, Office Depot, and Target

14. Collaboration Systems
Collaboration solves specific business tasks such as telecommuting, online meetings, deploying applications, and remote project and sales management
Collaboration system – an
IT-based set of tools that supports
the work of teams by facilitating
the sharing and flow of information
Collaboration allows people, teams, and organizations to leverage and build upon the ideas and talents of staff, suppliers, customers, and business partners
It involves a unique set of business challenges that:
Include complex interactions between people who may be in different locations and desire to work across function and discipline areas
Require flexibility in work process and the ability to involve others quickly and easily
Create and share information rapidly and effortlessly within a team
Increasingly, organizations are extending their focus from internal operations like planning and scheduling, enterprise resource planning and sales force automation, toward operations beyond their own four walls with external customers and suppliers
This chapter focuses on the need for collaboration, the technology that supports collaboration, and collaboration trends

15. Collaboration Systems
Collaboration systems include:
Knowledge management systems
Content management systems
Workflow management systems
Groupware systems
Knowledge management system – supports the capturing and use of an organization’s “know-how”
Content management system (CMS) – provides tools to manage the creation, storage, editing, and publication of information in a collaborative environment
Workflow management system – controls the movement of work through a business process
Groupware – software that supports team interaction and dynamics including calendaring, scheduling, and videoconferencing

16. Knowledge Management Systems
Knowledge management (KM) – involves capturing, classifying, evaluating, retrieving, and sharing information assets in a way that provides context for effective decisions and actions
Knowledge management system – supports the capturing and use of an organization’s “know-how”
Why is knowledge one of the real competitive advantages?
It is difficult to duplicate knowledge
It can take years to acquire
It is a personal asset
What if an organization could capture all of a persons knowledge using technology?
You would no longer need that person in the organization

17. Explicit and Tacit Knowledge
The following are two best practices for transferring or recreating tacit knowledge
Shadowing – less experienced staff observe more experienced staff to learn how their more experienced counterparts approach their work
Joint problem solving – a novice and expert work together on a project
The difference between shadowing and joint problem solving is that shadowing is more passive
Joint problem solving allows the expert and the novice to work hand-in-hand on a task
Why would shadowing be appropriate?
When would joint-problem solving be appropriate?

18. Content Management
Content management system (CMS) – provides tools to manage the creation, storage, editing, and publication of information in a collaborative environment
CMS marketplace includes:
Document management system (DMS)
Digital asset management system (DAM)
Web content management system (WCM)
BMW Group Switzerland accelerated personalized, real-time information about products, services, prices, and events to its dealers countrywide
BMW uses a process that allows dealers to specify what information is seen by which employee, as well as to deliver marketing materials solely to members of the sales department, and technical specifications and support documents only to mechanics
The enhanced personalization eliminates the chance that information is sent to the wrong dealership or to the wrong individual, which provides higher quality customer services
Document management system (DMS) – supports the electronic capturing, storage, distribution, archival, and accessing of documents
Digital asset management system (DAM) – similar to DMS, generally works with binary rather than text files, such as multimedia files types
Web content management system (WCM) – adds an additional layer to document and digital asset management that enables publishing content both to intranets and to public Web sites

19. Workflow Management Systems
Work activities can be performed in series or in parallel that involves people and automated computer systems
Workflow – defines all the steps or business rules, from beginning to end, required for a business process
Workflow management system – facilitates the automation and management of business processes and controls the movement of work through the business process
NYC was experiencing a record number of claims, ranging from injuries resulting from slips on sidewalks to medical malpractice at hospitals
NYC processes over 30,000 claims and incurs $250 million in claims costs annually
NYC implemented a workflow management tool to process contracts and claims
The system saved NYC $20 million
Many workflow management systems allow the opportunity to measure and analyze the execution of the process

20. Workflow Management Systems
Messaging-based workflow system – sends work assignments through an system
Database-based workflow system – stores documents in a central location and automatically asks the team members to access the document when it is their turn to edit the document
How could you use a messaging-based workflow system or database-based workflow system to complete a group project?
Messaging-based workflow system would send an to each group member when it was their turn to edit the document. The student would then be responsible for finding the document to edit.
Database-based workflow system would ask the student to edit the document, and supply the document to the student.
Review the figure for workflow management system features and discuss how each feature could be used to complete a group project

21. Groupware Systems
Groupware – software that supports team interaction and dynamics including calendaring, scheduling, and videoconferencing
Lotus Notes and Toyota developed an intranet system to promote information sharing within the company and to raise productivity
Groupware falls into two categories:
Users of the groupware are working together at the same time or different times (time difference)
Users are working together in the same place or in different places (physical location difference)
Which is easier to overcome?
Why?

22. Collaboration Trends
is the dominant form of collaboration application, but real-time collaboration tools like instant messaging are creating a new communication dynamic
Instant messaging - type of communications service that enables someone to create a kind of private chat room with another individual to communicate in real-time over the Internet
Program features include:
Web links
Images
Sounds
Files
Talk
Streaming content
Instant messaging

23. Wireless Fidelity (wi-fi)
Wireless fidelity (wi-fi) – a means of linking computers using infrared or radio signals
Common examples of wireless devices include:
Cellular phones and pagers
Global positioning systems (GPS)
Cordless computer peripherals
Home-entertainment-system control boxes
Two-way radios
Satellite television
Wireless technologies are transforming how we live, work, and play
Handheld devices are continuing to offer additional functionality, and cellular networks are advancing rapidly in their increased speed and throughput abilities
These enabling technologies are fueling widespread adoption and creation of new and innovative ways to perform business
Ask your students how many of them are currently using these types of wireless devices
Ask your students to discuss additional types of wireless devices that they are currently using
Ask your students to define additional types of wireless devices that they are not currently using

24. Advantages of Enterprise Mobility
Wireless laptops facilitate emergency room registration so doctors can start working on the patients as soon as the medics wheel them into the hospital
High-end tractors equipped with wireless sensors help farmers monitor everything from the weather to the amount of seed released

25. Bluetooth
Bluetooth – an omnidirectional wireless technology that provides limited-range voice and data transmission over the unlicensed 2.4-GHz frequency band, allowing connections with a wide variety of fixed and portable devices that normally would have to be cabled together
Since Bluetooth’s development in 1994 by the Swedish telecommunications company Ericsson, more than 1,800 companies worldwide have signed on to build products to the wireless specifications
Bluetooth is named to honor a 10th century Viking Kind, Harold Bluetooth, who is credited with uniting Denmark and bringing order to the country

26. Radio Frequency Identification (RFID)
Radio frequency identification (RFID) - use active or passive tags in the form of chips or smart labels that can store unique identifiers and relay this information to electronic readers
RFID tag - contains a microchip and an antenna, and typically work by transmitting a serial number via radio waves to an electronic reader, which confirms the identity of a person or object bearing the tag
Describe RFID and how it can be used to help make a supply chain more effective?
Integrating RFID in the supply chain will change the way a companies operate from managing maintenance, combating theft, to augmenting Sarbanes-Oxley initiatives

27. Satellite
Microware transmitter – commonly used to transmit network signals over great distances
Sirius signed a contract with Howard Stern for $500 million over five years
Why would Howard Stern move to satellite radio?
Was the move successful?

28. Global Positioning System
Global positioning system (GPS) – a device that determines current latitude, longitude, speed, and direction of movement
Market for GPS services is at $5 billion with expectations for the demand to double over the next five years
Geographic information system (GIS) – designed to work with information that can be shown on a map
Many of the new autos today have GPS linked to maps that display in a screen on the dashboard
GM’s OnStar Vehicle Diagnostics automatically performs hundreds of diagnostic checks on four key operating system in GM vehicles
Customers receive an each month describing the current health of their vehicle
Can you think of additional opportunities for businesses to use a GPS or GIS system?