PoEB: The Digital Firm Course Outline 2024-2025 PDF

PoEB: The Digital Firm 2024-2025 PoEB: The Digital Firm Setting the Stage/ Track Introduction Prof. dr. Hans P. Borgman Prof. Dr. Hans Borgman 0 PoEB: The Digital Firm 2024-2025 Theo...

PoEB: The Digital Firm 2024-2025 PoEB: The Digital Firm Setting the Stage/ Track Introduction Prof. dr. Hans P. Borgman Prof. Dr. Hans Borgman 0 PoEB: The Digital Firm 2024-2025 Theories of digital business: Setting the stage 1.The Importance of Digital 2. Digital Business: Trends and Issues 3. Course Outline 4. AI and the future of work 1 Prof. Dr. Hans Borgman 1 PoEB: The Digital Firm 2024-2025 The Digital Firm Jan 2000 Oct 2024 General Electric Apple Cisco Exxon Mobil NVIDEA Pfizer Microsoft Microsoft Alphabet/Google Wal-Mart Amazon Citigroup Saudi Aramco Vodafone Intel Meta/Facebook Shell pipelines platforms Prof. Dr. Hans Borgman 2 PoEB: The Digital Firm 2024-2025 A) Changing Hardware: Processing, Storage, Bandwidth Beyond Smaller, Faster, Cheaper 3 Prof. Dr. Hans Borgman 3 PoEB: The Digital Firm 2024-2025 Source: Keiichi Matsuda via https://vimeo.com/166807261#at=208 Prof. Dr. Hans Borgman 4 PoEB: The Digital Firm 2024-2025 B) Changing Software: Lego on AI Steroids Disrupt – Design – Deliver Focus on why and what, not how Flexibility, speed is king Modular, agile, reusable 5 Prof. Dr. Hans Borgman 5 PoEB: The Digital Firm 2024-2025 C) Changes In Strategy & Organization: Economies of Speed, Scope and Scale Speed: Cycle Time Reduction Disappearing Boundaries within firm: no more silos, globalization between companies: supply chain management, partnering Global Business Networks Dis-aggregation, consolidation, focus on core virtual organizations, Outsourcing 6 Prof. Dr. Hans Borgman 6 PoEB: The Digital Firm 2024-2025 Tours/merchandising - $ 22 m $ 1039/536 m 7 7 tracks/albums/streaming $ 100 m $ 2.5 m $ 461 m Prof. Dr. Hans Borgman 7 PoEB: The Digital Firm 2024-2025 ICT and Business/Industry Redefinition Degree of business transformation high 5. Business Scope Redefinition 4. Business Network Redesign Revolutionary 3. Business Process Redesign levels 2. Internal Integration Evolutionary levels 1. Localized Exploitation low low high Range of potential benefits 8 IT can be used to simply automate an existing isolated task (localized exploitation) or to link and integrate a number of tasks: both are considered ‘evolutionary’ transformations that can generate significant benefits, but usually less than what is feasible through more ‘revolutionary’ transformations (level 3-5). Level 3 is about streamlining and reorganizing internal processes (not simply linking them as in ‘2’), while 4 extends this beyond the boundaries of the organization to involve suppliers, buyers, etc. Level 5 describes the most radical transformation, where the entire business scope is redefined. Prof. Dr. Hans Borgman 8 PoEB: The Digital Firm 2024-2025 1. The importance of ICT and digital business Fundamental changes in how we work, compete, collaborate, communicate, socialize, play, learn… Information Management dominates and cuts across all disciplines >50% of capital expenditures Crucial dependence on ICT for individuals, businesses, governments ICT key source for innovations and start-ups, fastest path to entrepreneurial success 9 Prof. Dr. Hans Borgman 9 PoEB: The Digital Firm 2024-2025 2. Digital business: Trends and Issues (2023) 10 Source: Simnet.org. April 2023 survey (timing matters, think AI/LLMs), published in 2024. Changes in the naming of issues for the most recent survey may overemphasize the change compared to last year (last year’s rank between brackets). An MISQe article with more details is added on Canvas as illustration. Data are exclusively based on US respondents (n=671). For the exam you are (of course) not expected to know the scores of each issue, but it is important to understand the terms (ERP, CRM, Cloud, legacy, etc.) and to know that ‘Business & IT alignment’ has been in the top three since 'forever' (and we still cannot get this right), that compliance, digital transformation and the pace of change are major issues, and that cybersecurity and (somewhat less) privacy issues are a top concern for organisations when looking at IT management. Prof. Dr. Hans Borgman 10 PoEB: The Digital Firm 2024-2025...and more (view from CIO) Prof. Dr. Hans Borgman 11 PoEB: The Digital Firm 2024-2025...and more Prof. Dr. Hans Borgman 12 PoEB: The Digital Firm 2024-2025 Hypes and Trends: Surfing the Waves Blockchain Social Media IoT ERP AI Cloud Web3 Mobile commerce Quantum e-Business AR/VR 1998 New Eco Old Eco New Eco Empire strikes Partnering & 2024 Hype awakes collapse back Cooperation 13 Many IT innovations follow the 'hype-cycle' (made popular by Gartner), where after the introduction expectations are quickly becoming unrealistically high. Once people realize this, the expectation (perceived value) changes from hype to disillusion. Real developments (the green line) are typically different from the hype and disillusion and it is important for managers to understand both real and perceived importance. The X-axis in the chart shows the development of the e-business hype over time (with the 'New Economy' perceived as replacing the 'Old Economy' in the late 1990's, and the disillusion represented by the burst of the dot-com bubble in 2001), the terms at the top of the Y- axis show various concepts related to IT that have gone (or are going) through a similar hype-cycle at different points in time. Prof. Dr. Hans Borgman 13 PoEB: The Digital Firm 2024-2025 Gartner's Hype Cycle (AI) 14 The most recent hype cycle, on AI (it seems AI is all everyone cares about now...). Gartner market research is also available online via the UvA library. Please note that this is commercial market research, not peer-reviewed academic research with full access to the reader in terms of data and methods. Prof. Dr. Hans Borgman 14 PoEB: The Digital Firm 2024-2025 Hypes and Trends: Understanding the hype curve 15 Source: http://en.wikipedia.org/wiki/Hype_cycle, or https://youtu.be/jB1RDz9jaj0 And yes, I dare to refer to Wikipedia; see also https://en.wikipedia.org/wiki/ Reliability_of_Wikipedia and http://wikilit.referata.com/ for a systematic overview of studies on accuracy of Wikipedia, as well as https://meta.wikimedia.org/wiki/ Research:Newsletter for pointers to and reviews of academic articles on various aspects related to Wikipedia. I would not suggest to base an academic paper on ‘twinkling’ (ever- changing) Wikipedia entries (more and more plagued by bots updating pages automatically and potentially leading to distortions), but in many areas and for many purposes its reliability is both quite high and continuously improving. Prof. Dr. Hans Borgman 15 PoEB: The Digital Firm 2024-2025 Gartner's 'Impact Radar' 16 The most recent hype cycle, on emerging technologies. Gartner market research is also available online via the UvA library. Please note that this is commercial market research, not peer-reviewed academic research with full access to the reader in terms of data and methods. Prof. Dr. Hans Borgman 16 PoEB: The Digital Firm 2024-2025 The Digital Firm Course Outline Setting the Stage I. IT and Strategy II. Winner takes all? Pipelines, Platforms and Beyond III. Artificial Intelligence and the Future of Work IV. What is IT Success? 17 Linking our course outline to the earlier mentioned issues should show how our course agenda is linked to both current concerns as well as to underlying more stable conceptual foundations. Prof. Dr. Hans Borgman 17 PoEB: The Digital Firm 2024-2025 AI and the future of work What is AI (and why care)? Lump of Labour Fallacy Jevons Paradox IT Productivity Paradox Animation by Kurzgesagt, based largely on Brynjolffson's Prof. Dr. Hans Borgman 18 PoEB: The Digital Firm 2024-2025 WEF 2023-2028 Prof. Dr. Hans Borgman 19 PoEB: The Digital Firm 2024-2025 The Digital Firm Course Outline Setting the Stage: Beyond Hype and Disillusion I. IT and Strategy II. Pipeline, Platform and Beyond III. Artificial Intelligence IV. What is IT Success? 20 Linking our course outline to the earlier mentioned issues should show how our course agenda is linked to both current concerns as well as to underlying more stable conceptual foundations. Prof. Dr. Hans Borgman 20