Strategically Leveraging Information Systems to Transform Business:
Trends, Opportunities and Challenges
Dr. Gabriel Giordano2013
Dr. Giordano Background
From New Mexico, USA
Automation Specialist - Research International
PhD Florida State University
Professor at IESE Business School (Barcelona)
Currently MIS Professor at OU
Research – Technology supported comm.; Transformational IS projects
Teaching – Business Intelligence and IT Strategy
IS and Non-IS Professionals:Why you should care…
8-10% of revenues are spent on IS
Strategic importance of IS is at an all time high
IS is the platform for business
IS is the source of business intelligence
IS is the forum for global collaboration
Seminar Goals
Understand
• Establish baseline terminology• Clarify fundamental concepts
Discuss
• Leverage your expertise• Share knowledge and personal experience• Discuss illustrative examples
Analyze
• Apply concepts in context of businesses• Express your opinions• Discuss the future of business strategies
“Information Systems” Defined
IT
People
Processes IT
IS
Strategic Level Drivers(Business Goals/KPIs)
Operational Level Drivers(Process Problem Areas)
“Strategic” IS
Significant impact on the enterprise over the next 3 years
High potential for disruption to businesses and industries
Often require significant capital investment…$$$, and have a higher level of implementation risk due to the fact that the technologies are not mature yet
Competitive risk in being late to adopt
More and more potentially strategic technologies are emerging – which is exciting, but challenging for businesses to understand
The Gartner Hype Cycle
IS Trends for our Seminar
Cloud Computing
Mobile Computing
Big Data
Social Networks in Business
IT Security
Cloud Computing…experts say:
Cloud Computing is in the “Trough of Disillusionment”
Approximately 5% of global applications are currently in the cloud
However, by 2014, 20% of businesses will own no significant IT Assets
At year-end 2016, more than 50 percent of Global 1000 companies will have stored customer-sensitive data in the public cloud
The Gartner Hype Cycle
Cloud Computing Analysis
Define the trend.
What are the opportunities it creates?
What are the challenges it presents?
What is your opinion of its strategic importance?
Cloud Computing Summary…
Creates IT capabilities and capacity quickly – IaaS and SaaS
Minimizes initial capital expenditures and ongoing maintenance costs
Increases multi-platform accessibility
Highly Scalable
Allows small and medium businesses to compete with large businesses
Security, regulatory, and privacy concerns are key challenges
Mobile IT…experts say:Tablet PCs are just past the “Peak of Inflated Expectations”
Wearable computing devices are at the “Peak of Inflated Expectations”
In 2013, mobile devices (smartphones/tablets) will overtake PCs as the primary web-access device
By 2014, there will be a 90% mobile penetration rate worldwide
By 2015, mobile app. development projects targeting smartphones and tablets will outnumber desktop PC projects by a ratio of 4-to-1
Mobile Computing Analysis
Define the trend.
What are the opportunities it creates?
What are the challenges it presents?
What is your opinion of its strategic importance?
Mobile Summary…Security and privacy concerns are key challenges (e.g. BYOB trend)
Context awareness will be a key factor for interaction & delivery
A key goal is to enable real-time decision making at the point of interaction
New input methods and types of displays are emerging
Big Data…experts say:Big Data is at the “Peak of Inflated Expectations”
The volume, variety, and velocity of data available to businesses has exploded
In 2013, 2.5 exabytes (a billion gigabytes) of data are created each day, and that number is doubling every 40 months
Business Intelligence software is the top IT spending priority for companies right now
Companies that use data-driven decision making are 5% more productive and 6% more profitable than their competitors
Many companies are looking at Amazon and Google for ideas on how to leverage Big Data
Big Data Analysis
Define the trend.
What are the opportunities it creates?
What are the challenges it presents?
What is your opinion of its strategic importance?
Big Data Summary…
Successful businesses are learning how to collect more data, analyze data in new ways (e.g. predictive analytics), and report data in ways that makes it more usable (e.g. dashboards)
Big Data is useful for both internal decision-makers and customers
Data scientists are in high demand
Unstructured data is often valuable, but it is also more complex
Overcoming manager intuition is challenging for most businesses trying to use BI and Big Data
Social Networks…experts say:
Social Analytics is just past the “Peak of Inflated Expectations”
BY 2016, social IT will be integrated into most business software
Linked-In value is $22 B
Facebook value is $80 B
The Gartner Hype Cycle
Social Networking in Business Analysis
Define the trend.
What are the opportunities it creates?
What are the challenges it presents?
What is your opinion of its importance?
Social Networking Summary…Internal and External uses for businesses
Internal relationship building amongst colleagues
Streamline communications/collaboration with colleagues and clients
Product Development & marketing…direct interaction with customers/clients
Influencers are a key area of interest for businesses
Enables crowdsourcing
IS Security…experts say:Through 2016, the financial impact of cybercrime will grow 10 percent per year, due to the continuing discovery of new vulnerabilities
At year-end 2016, more than 50 percent of Global 1000 companies will have stored customer-sensitive data in the public cloud
IBM reports that in 2013, cyber thieves have already begun to successfully hack into cloud computing environments
Attacks on mobile devices will double each year
Social networks have become one of the primary sources of data for identity thieves
By 2016, 40 percent of enterprises will make proof of independent security testing a precondition for using any type of cloud service
IS Security Analysis
Define the trend.
What are the opportunities it creates?
What are the challenges it presents?
What is your opinion of its strategic importance?
IS Security Summary…
Many of our trends, also create significant IS security risks
IS Security in the age of interconnectivity and mobility is a huge challenge
More sensitive info than ever being exchanged on the Internet
Social networks create an even larger threat to security & privacy
Hackers are becoming more sophisticated & more active
Threat of Cyber-terrorism is significant (e.g. financial markets, energy grid)
Further Predictions…• Globally, 30% of large businesses, 40% of medium businesses and 60% of small
businesses will run the majority of their enterprise, BI and collaboration systems via cloud computing within 10 years.
• 50% of IT budgets will shift from maintenance to innovation in the next 10 years.• US small businesses will continue to lead the migration to the cloud.• The demand for IS analysts and data scientists will triple, while the demand for
technicians will be cut in half in the next ten years. • There will be an intense battle between companies trying to be the leading cloud
computing aggregator within the next 10 years.• Social networks will become a basic part of organizational communication.• Google and Apple will provide intense drama as they clash for market share in
mobile devices, mobile apps, and internet advertising. This will change the face of consumer IT, especially mobile IT/commerce.
Your Predictions??
Final Analysis Activity
Pick any business and discuss their strategic goals & future IS challenges/opportunities. What strategic recommendations would you make for them in each IS trend area we discussed?Questions to consider in your analysis:
• Will they leverage Cloud Computing to increase their IT capabilities and capacity?• Should they integrate social networks into their business? If so, how?• How can they improve their businesses through wireless IT & mobile commerce?• How can they use Big Data strategically?• What IT security vulnerabilities must they protect themselves from?