A-IT Trends in Business and Innovation

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Questions and Answers

What is a primary benefit of crowdsourcing in business according to the trends in IT enabled business?

It allows companies to avoid innovation.

It standardizes service offerings across industries.

It creates competition among organizations.

It generates enormous value, often at no cost. (correct)

Which technology is primarily responsible for the ability to analyze substantial amounts of data quickly?

Basic spreadsheet applications.

Conventional data storage solutions.

Cloud computing and fast processors. (correct)

Traditional database management systems.

Which of the following is NOT an example of a peer economy?

Netflix (correct)

Uber

Facebook

Airbnb

What is an emerging trend that combines the digital and physical realms in business?

Omnichannel operations. Signup and view all the answers

What business advantage do firms gain from conducting A/B tests in relation to big data?

Enhanced product and service innovation. Signup and view all the answers

Which of the following best describes the role of IT in operational excellence at Walmart?

Automation and control in inventory management Signup and view all the answers

What type of business model innovation is associated with Google?

Targeted internet advertising Signup and view all the answers

What is the primary IT-enabled business model innovation utilized by eBay?

Customer-to-customer exchange Signup and view all the answers

Which company is associated with leveraging analytics for customer life cycle management?

Harrah's Signup and view all the answers

What role does IT play in providing customer intimacy at Amazon.com?

Empowerment through collaborative filtering Signup and view all the answers

How does Apple utilize IT in their product leadership strategy?

Personal digital content devices and applications Signup and view all the answers

What advantage does IT provide in the context of FedEx's business model?

Package tracking for overnight shipping Signup and view all the answers

Which element of IT as a platform is highlighted in the context of business model innovation?

Real-time data collection Signup and view all the answers

What is one way to automate corrective actions for students based on their homework attempts?

Providing relevant educational content based on learning needs Signup and view all the answers

Which factor contributes to competitors quickly imitating a firm's IT-enabled actions?

Access to readily available enabling technology Signup and view all the answers

Which of the following best describes the role of IT capabilities in sustaining competitive advantage?

They help manage and implement integrated IT solutions for business opportunities. Signup and view all the answers

What is an example of preemptive barriers to erosion of IT-enabled competitive advantage?

Having high customer switching costs Signup and view all the answers

How has the understanding of technology shifted in the past decade?

The distinction between physical and digital aspects has become less relevant. Signup and view all the answers

What organizational change is often required based on complementary resources?

Cultural adjustments to support IT resources Signup and view all the answers

Which of the following is a key theme in emerging IT-enabled business trends?

The inevitability of digitization across all business areas Signup and view all the answers

Which of the following is a risk associated with IT projects mentioned in the content?

They typically require integrating unproven technologies with complex processes. Signup and view all the answers

What does the Internet of Things (IoT) primarily leverage to create smart infrastructure?

Data from disparate sensors Signup and view all the answers

Which of the following is a challenge faced in multichannel operations?

Managing product information across multiple channels Signup and view all the answers

What is a primary benefit of cloud computing as described in the content?

Resource utilization improvement Signup and view all the answers

What does technology blur the lines between in the context of multichannel operations?

Physical and digital channels Signup and view all the answers

Which example best represents a platform in a platform-mediated business model?

An online marketplace Signup and view all the answers

How has cloud computing transformed access to computing resources?

By offering a pay-as-you-go model Signup and view all the answers

Which of the following describes a unique opportunity provided by physical channels?

The ability to touch and feel merchandise Signup and view all the answers

What aspect of IoT does the synergy with human ingenuity demonstrate?

Enhanced traffic management Signup and view all the answers

What is a significant impact of shared autonomous vehicles on car ownership models?

They could reduce the number of cars needed by 80-90%. Signup and view all the answers

Which IT initiative is associated with enhancing productivity in the health sector in emerging economies?

Telemedicine Signup and view all the answers

What are the implications of self-driving fleets on companies like Uber?

They transition Uber into a model similar to that of airlines, becoming asset-heavy. Signup and view all the answers

How has the growth of internet and mobile adoption affected emerging economies?

It has stimulated financial inclusion and local entrepreneurship. Signup and view all the answers

What does the phrase 'the extent of transformation is unimaginable today' imply about the trends discussed?

The combined effects of these trends will result in unprecedented changes. Signup and view all the answers

What fundamentally distinguishes deep learning from traditional machine learning?

Deep learning systems learn independently without human intervention. Signup and view all the answers

Which of the following best describes cognitive computing?

Systems designed to understand and process human language and data. Signup and view all the answers

How do generative AI models primarily differ from discriminative models?

Generative models produce creative content, while discriminative models focus on prediction. Signup and view all the answers

What role does computer vision play within cognitive computing?

It allows machines to recognize and interpret visual information. Signup and view all the answers

In what way is generative AI particularly impactful in creative industries?

It can autonomously develop new software and design elements. Signup and view all the answers

What are the capabilities that define natural language processing in cognitive computing?

Engaging in human-like conversations and understanding language context. Signup and view all the answers

What does the term 'deep learning' primarily refer to in AI?

An advanced AI method that mimics human cognition without supervision. Signup and view all the answers

How have historical advances in technology, such as steam engines, been echoed in the discussions around AI?

Both have faced skepticism regarding their employment in society. Signup and view all the answers

Study Notes

Course Information

Course title: Managing Businesses Under New Technologies
Course code: QMB 6930: MANAGEMENT INFORMATION SYSTEMS
Lecture code: OA
Instructor: Anuj Kumar

About the Instructor

Anuj Kumar is the Matherly Professor of Information Systems
PhD in Information Systems Management from Carnegie Mellon University (2011)
Research interests include technology-mediated multichannel operations (QR Codes), online product recommendation networks (algorithms), and technology and society

The EPInc Platform

An AI-enabled peer-driven knowledge diffusion platform
Provides various resources and links concerning the platform. The URLs are included in the presentation.

My Research in News – Algorithmic Product Recommendations

Articles available online exploring the value of product recommendations to consumers, optimizing online sales with hybrid recommendations, and the effectiveness of website recommendations. The URLs are included in the presentation.

My Research in News – Online School Ratings

Warrington professor's TEDx talk on how online school ratings accelerate segregation in America
Articles about accelerating segregation from online school ratings, and brick and mortar "showrooms" for stores surviving in the digital age.

Course Logistics

Course components include lectures, case presentations, and class discussions
Assessment methods involve a final exam (40%), case presentation (35%), and pop quizzes (25%). Pop quizzes cover material from the previous lectures and are administered at the start of class.

The "First Machine Age"

Focuses on overcoming muscle power limitations.
Includes factories, mass production, and railways.
Highlights the steam revolution as the largest transformation in world history.

Is Technology Transformational?

In 1850, the United States economy was small, roughly the size of Italy
40 years later, the US economy became the largest globally— attributed to the railroad
Discusses whether IT qualifies as a transformational technology
Covers related terms such as digital transformation, digital disruption, and digital ubiquity

The "Second Machine Age"

Three fundamental forces that shape the second machine age: exponential improvement in computer gear, digitization, and digitization-enabled innovation

Moore's Law in ICT

Moore's Law, an observation made by Intel co-founder Gordon Moore in 1965, states that the number of transistors per square inch on integrated circuits doubles roughly every 18 months
Moore's Law predictions about digital trends, emphasizing their ongoing momentum
Graph presentation included for visualizing the computing power growth vs communication power increase trends.

If Moore's Law Applied Everywhere

Comparing Intel's first-generation microchip (4004 - 1971) with the fifth-generation Core i5 processor in terms of performance, energy efficiency, and cost
Shows how advances in computing would translate to equivalent advancements in a physical context, like a car.

Digitization

Digitization is the encoding of information into a stream of bits
Digitization's impact on data volume, velocity, and variety creation
Examples: user-generated data (e.g., social interactions), machine-generated data (e.g., machine-to-machine communication), location data, and social interactions

Digitization Affects Costs

Digitization decreases search, replication, transportation, tracking, and verification costs
This impact encourages platform-based business models and promotes opportunities for advertising, and price discrimination.

Digitization Enabled Innovation

Exa and Zettabytes of data, along with advanced computing methods, enable better science
Providing better explanation and prediction of phenomena
Some Examples given in the presentation

Digitization & Disruptive Innovation

Introduction of a paper from McKinsey & Company (Jan 2014) about digitization and disruptive innovation
A video link associated with the topic

Summary of Video

Digitization affects all economic sectors, encompassing more than just text, images, and videos, such as social interaction, physical world attributes and activities, among others
The positive impact on goods/services variety, volume, and quality at competitive low prices
Challenges: employment and value capture
The importance of accessing global talent, using data-driven decision-making, and conducting tests/experiments for innovation

Competitive Advantage through IT

Information Technology (IT) refers broadly to computer, networking and communication technologies
Historical use was primarily for automating behind-the-scenes back-office activities
Current focus on gaining competitive advantage through IT
Two historical examples: American Airlines SABRE System, and Merrill Lynch Cash Management Account

American Airlines SABRE System

Integrated database storing flight schedules, routes, and pricing for multiple airlines: High-speed & efficient agent interactions
Providing a competitive advantage to American Airlines over competitors
The SABRE System example details how IT-based systems were initially conceived and how IT was used for a competitive advantage.
Describes actions that lead to a loss of competitive advantage due to legal interventions.

Merrill Lynch Cash Management Account

Integrated database keeping track of customer accounts, their savings, checking and brokerage information: Allows fine-tuning of liquidity levels.
Automated decision-making software to track opportunities and execute relevant investments

Business Model

Business strategy incorporates organizational resources through well-designed business processes to create value for consumers
Element details of a business model: customers’ value proposition, profit (revenue - cost) model, critical tangible/intangible resources, business processes
Discussion about how business strategy affects IT strategy compared to the vice-versa scenario.

Strategic Roles of the IT

Types of strategic IT roles:
Automation: Cost reduction, better response time, and higher productivity
Control: Tighter control, better handling, and accuracy of business processes
Empowerment: Effective response to situations from increased data, information, knowledge, and business intelligence tools
Collaboration: Innovation through better collaboration among skilled employees

Examples: Strategic Role of IT

Presentation showing various business scenarios in which IT played a critical role in developing a new competitive advantage for companies
These include examples from Walmart, Amazon, and other major companies

Examples of IT-Enabled Business Model Innovation

Presents different business models in which IT was primarily a source of innovation for business models.
Shows distinct examples of how IT was central to creating innovative models from a competitive approach

IT as a Platform

IT systems function as platforms for collecting, processing, and managing information.
Allows for the identification of knowledge gaps, personalized learning content, and efficient information display
Advantages provided by these systems are shown, including the real-time data collection that IT platforms offer

Sustainability of IT Enabled Competitive Advantage

Competitors quickly imitate (and even improve on) successful IT-based competitive actions
Factors to consider in assessing the sustainability of IT-based competitive advantages: Factors such as easily accessible and replicable IT
Factors that help maintain these advantages: Superior technical and/or business capabilities
Various methods of assessing the sustainability of IT actions

Barriers to Erosion of IT Enabled Competitive Advantage

The barriers to erode IT-enabled competitive advantage include: • IT Resources: IT assets (hardware, software, data), IT capabilities (managing and implementing broad IT to capitalize on opportunities) • Complementary Resources: Organizational changes; project management and execution capabilities • Preemptive Barriers: Customer switching costs and establishing relationships with other partners

Emerging IT Enabled Business Trends

Discussion about emerging IT-enabled business trends, encompassing social technologies, big data and advanced analytics, Internet of Things (IoT), multichannel operations, cloud computing, platform-mediated business models, AI and cognitive computing, and other topics

Two Emerging Themes

Discussion about the digitization of virtually everything, the increasing digitization of products and services, the role of sensors to capture usage data, more personalized approaches, and blurring the line between physical and digital worlds
Emphasizes changes in technology paradigms.

Top Trends in IT Enabled Business

Top trends in IT-enabled business, including social technologies, big data and advanced analytics, IoT, omnichannel operations, cloud computing, AI, cognitive computing and other emerging technologies
The impact of trends in emerging economies and public sectors on businesses

Social technologies connect organizations with both internal and external audiences through collaboration and crowdsourcing, such as Facebook, YouTube, Innocentive, Quirky and others
These systems can identify new ways of capturing innovation and leveraging peer economies through collaborative models

Big Data

Gathering huge amounts of data enables new insights with advanced analytics
Enables personalization in business strategies (Netflix, UPS, IBM, Target)
Demonstrates the use of data for new product and service offerings

Internet of Things (IoT)

IoT is larger than commonly realized, encompassing "smart" objects in real-life environments beyond smart phones or TVs.
Discusses its potential for productivity and growth through effective data collection, aggregation, and analysis

Multichannel Operations

The rapid growth of channels for business interactions (phone, web, and mobile)
Discusses challenges, the opportunities, and the blurring of distinctions between digital and physical interactions.

Cloud Computing

Cloud computing is revolutionizing how business computing is performed
Transforming how resources are allocated and leveraged
The “pay-as-you-go” model is mentioned and some companies are referenced in this context.

Platform Mediated Business Models

Products and services that tie together two or more customer groups
Examples: credit cards, newspapers, health maintenance organizations (HMOs), and computer operating systems are given by way of examples.
Examples of recent and traditional companies and how they employ similar models

AI and Cognitive Computing

Traditional machine learning versus deep learning approaches, focusing on supervision needs
Discusses the evolution in AI and cognitive computing in light of recent technological advancements
Covers computer vision and natural language processing
Features of generative AI are illustrated (e.g., creative tasks and large language models (LLMs))

GenAI

Most AI models are "discriminative" and focus on historical data for analysis
Describing whether a credit card transaction is fraudulent or making predictions based on past transactions
GenAI is capable of producing content and performing creative tasks
Different models employed within the world of GenAI (Stable Difffusion, LLMs)

Autonomous Driving

Discusses the digitization of the automobile industry, with a focus on changes to car ownership models
The OECD study and other data are referenced concerning how this affects society
The implications that autonomous driving has on jobs in the transportation industry

Emerging Economies and Public Sector

Large markets are growing quickly with increased internet and mobile adoption
Discusses the growth in entrepreneurship and financing
Examples included, such as Universal ID (Aadhar) in India, mobile technology and childcare in India and China, Telemedicine, and MOOCs
The educational platforms that encourage innovation in the educational sector.

Each One of These Trends Is Hugely Transformative

Emphasizes the transformative nature of the technologies and their potential impact on businesses and society as a whole

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

This quiz covers key concepts related to IT-enabled business trends, including crowdsourcing, peer economies, and data analytics. Assess your knowledge of how these technologies influence operational excellence and business model innovations in various companies. Test your understanding of the emerging digital and physical convergence in business practices.