Business Information Management PDF

Business Information Management Dr. Michael P. O’Brien Module: MI4007 Week 1 (Lecture 2 of 2) 1 Digital Journey (1, 0) Digital Revolution is the change from mechanical and analogue electronic technology to digital electronics....

Business Information Management Dr. Michael P. O’Brien Module: MI4007 Week 1 (Lecture 2 of 2) 1 Digital Journey (1, 0) Digital Revolution is the change from mechanical and analogue electronic technology to digital electronics. The Digital Revolution marked the beginning of the Information Age. Central to this revolution is the mass production and widespread use of digital logic circuits, and its derived technologies, including the computer, digital cellular phone, and the Internet. Late 1980s less than 1% of the world’s technologically stored information was in digital format. In 2007, it was 94%. This rose to 99% in 2014! 2  Evolution of IT infrastructure General-purpose mainframe and minicomputer era - 1959 to present: 1958: IBM first mainframes introduced 1965: less expensive DEC minicomputers introduced Personal computer era - 1981 to present: 1981: Introduction of IBM PC Proliferation in 80s, 90s resulted in growth of personal software Client/server era - 1983 to present: Desktop clients networked to servers, with processing work split between clients and servers Enterprise computing era - 1992 to present: Move toward integrating disparate networks, applications using Internet standards and enterprise applications Cloud and mobile computing - 2000 to present: Cloud computing: computing power and software applications supplied over the Internet or other network Still the fastest growing form of computing 3 Accelerating Pace of Change 4  The general process of becoming affordable and accessible Mainframe Minicomputers Desktops Laptops Smartphones 5 Convergence 6  Moore’s Law Moore’s Law predicts that the number of transistors fitting on a computer chip will double every one and a half to two years. This prediction about density also captures advances in processing speed, storage capabilities, cost, and other component features. Processing power and speed and storage capabilities have increased exponentially as the cost of computing devices has decreased. 7 Metcalfe’s Law and network economics Why is the web so big? Value or power of a network grows exponentially as a function of the number of network members. As network members increase, more people want to use it (demand for network access increases). An estimated 5.45 billion people worldwide have Internet access (July 2024). As communication costs fall toward a very small number and approach 0, utilization of communication and More info: computing facilities explodes https://youtu.be/GVkDdx_NIRM 8  Effects of Metcalfe’s Law Smaller Cheaper Processors – (Hardware; computers, smart phones, Communications) – Growth of software Bigger and more valuable networks – More Users, Cheaper connectivity More Applications and growth of the IT industry 9 Digital Innovation-Economic Driver Digitisation - the mass adoption of connected digital services by consumers, enterprises, and governments - has emerged in recent years as a key economic driver that accelerates growth and facilitates job creation. In the current environment of a sluggish global economy, digitisation can play an important role in assisting policymakers to spur economic growth and employment. 10  Atoms to Bits: Digitisation 11 Characteristics of Digital Products Immateriality – essentially 1s and 0s Expensive to produce and close to zero cost to replicate Borderless Indestructibility Public Good (use by one individual does not reduce availability to others) 12  So…….. what are we talking about? Information and communication technology (ICT) has proven to be a key enabler of socioeconomic progress and development, enhancing productivity and therefore economic growth, reducing poverty and improving living standards in many ways. ICT is increasingly revolutionising production processes, access to markets, and information sources together with social interactions. 13 The Information Society 14  Drucker "The most important, and indeed the truly unique, contribution of management in the 20th Century was the fifty-fold increase in the productivity of the MANUAL WORKER in manufacturing. The most important contribution management needs to make in the 21st Century is similarly to increase the productivity of KNOWLEDGE WORK and the KNOWLEDGE WORKER.” Drucker (1999, p135) We now accept the fact that learning is a lifelong process of keeping abreast of change. And the most pressing task is to teach people how to learn. Knowledge has to be improved, challenged, and increased constantly, or it vanishes. Today knowledge has real power. It controls access to opportunity and advancement. 15 Consider… Imagine an economy without friction - a new world in which labour, information, and money move easily, cheaply, and almost instantly. Psst - it’s here!!!! Are YOU ready?? Is YOUR company ready?? 16  Creative Destruction According to Schumpeter, the "gale of creative destruction" describes the "process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one". E.g. In technology, the cassette tape replaced the 8-track, only to be replaced in turn by the compact disc, which was undercut by downloads to MP3 players, which is now Joseph Schumpeter being usurped by web-based streaming services. This process of Creative Destruction Companies which made money out of technology which is the essential fact about capitalism becomes obsolete do not necessarily adapt well to 1942 the business environment created by the new technologies. 17 Creative Destruction 18  Disruptive Technology: Famous Incorrect Predictions What could be more absurd than the prospect of locomotives travelling twice as fast as stagecoaches” - The Quarterly Review, 1825 “The horse is here to stay but the automobile is only a novelty – a fad” - Advice to Henry Ford’s lawyer in 1922. “Well informed people know that it impossible to transmit the voice over wires and were it to be possible it would be of no practical value”. - Editorial in the Boston Post, 1865. “I think there is a market for about five computers” - Thomas Watson, Founder of IBM 1943 “There is no reason why anyone would want a computer in their home” - Ken Olsen, President & Founder of Digital Equipment Corp. 1977. “Everything that can be invented has been invented”. - Charles H. Duell, Commissioner US Office of Patents 1899 19 20  Growth and Jobs 21 Computerisation of Jobs An algorithm has been appointed as a director on the board of Deep Venture Knowledge… How is the Internet changing how we think? Is Google making us stupid? Think of an industry/business that has been destroyed in the last 10 years ?? Think of an industry that has been created in the last 10 years ?? Remember, there are now more SIMs on Earth than people! Language will no longer be a barrier - era of instant translation. 22  Fastest Growing vs. Fastest Declining Jobs Source: https://www.weforum.org/reports/the-future-of-jobs-report-2023/infographics-2128e451e0 23 Will a robot take your job? https://willrobotstakemyjob.com 24  https://www.foreignaffairs.com/articles/2015-06-16/will-humans-go-way-horses 25 ‘New’ Jobs 12 in-demand jobs that did not exist a decade or so ago: 1. Driverless car engineer 2. Social Media Influencer 3. Blockchain analyst 4. Cloud Service Specialist 5. Podcast producer 6. Telemedicine physician 7. Cloud architect 8. Uber driver 9. Drone operator 10. Chief Listening Officer 11. Big data scientist 12. Contact tracer 26 Businesses’ Top 10 Skill Priorities for 2027 Source: https://www.weforum.org/reports/the-future-of-jobs-report-2023/infographics-2128e451e0 27 Future-Proof Yourself! Innovate within your industry! Disrupt yourself… before your competition does!! 28 29