1. IS3320 Developing and Using Management Information Systems Lecture 2: A digital state of mind Rob Gleasure R.Gleasure@ucc.ie www.robgleasure.com

2. IS3320 Today’s session  Discussion of IT doesn’t matter  IT and traditional business  IT and e-business  A video…  Discussion of the role of IT for AirBnB

3. Does IT Really Matter? Nicholas Carr wrote a famous article for Harvard Business Review in 2003 entitled ‘IT doesn’t matter’ In it, he argued  For most companies, IT is a utility, similar to electricity and water  IT Innovators may benefit for a short period, but imitation limits the value of these benefits  Companies can get caught up with ‘too much of a good thing’ and get distracted from their core value proposition  The majority of companies should move from ‘offence to defence’ when it comes to IT investment  The majority of companies should focus on vulnerabilities, not new value creation

4. IT and traditional business Traditional business typically models a supply chain as follows Image from http://cgge.aag.org/GlobalEconomy1e/CaseStudy6_Japan_Feb13/CaseStudy6_Japan_Feb13_print.html

5. IT and traditional business IT plays a number of roles in managing this supply chain Image from http://acgilsoftwares.blog.com/2014/09/01/supply-chain-management-software-in-india/

6. IT and e-business New businesses are emerging every year that offer entirely digital products or services  These e-businesses aren’t so easily mapped as a supply-chain E.g. Uber  What resources do they have to manage?  What processing of these resources takes place?  Who’s their consumer and who’s their customer? What about Facebook, Twitter, Instagram, WhatsApp, etc.? Should we treat these the same as Dell or Ryanair? Are you sure?

7. IT and e-business AirBnB is a website set up in 2008 in California to allow people to rent out rooms over the web After a slow start, it was valued in 2014 at $10 billion www.youtube.com/watch?v=RUEjYswwWPY  1’ 08  20’

8. How Did IT Matter for AirBnB? At what points did IT capabilities affect the design of AirBnB? What non-IT capabilities did AirBnB leverage? Did these capabilities complement each other? If so, how? What capabilities are AirBnB not currently exploiting that they should consider? What would you change?