Chapter 1 03 02 2015 Technology Changing Business Landscapes Billions of people have access to computing and telecommunications Google Twitter and Facebook have changes the way firms advertise and people communicate o Open source software has lowered computing costs Cloud computing and software has become a valuable service o Turned high powered computing into a utility available to even the smallest businesses and nonprofits New technologies have o Fueled globalization o Redefined concepts of software and computing o Crushed costs o Fueled data driven decision making o Raised privacy and security concerns A Young People s Revolution Many of the world s most successful technology firms were created by young people Microsoft o Bill Gates undergraduate when he left college to found o Michael Dell sophomore when he began building computers at the University of Texas Technology Growing Importance All modern managerial disciplines have been impacted by Tech knowledge has become a key differentiator for a job seeker With computing getting cheaper and faster it is being used technology everywhere The Finance of Technology The rapid changes of the tech industry lead to the continual development of new businesses and rapid changes in the in the industry landscape o Suited to IPO markets o Continuously involved in mergers and acquisitions M A Technology has the power to make certain pieces of capital obsolete The roles of finance in tech include o Lending to tech firms o Evaluating the role of technology in firms in an investment portfolio Technology in Accounting The reliability of any audit is tied to the reliability of the underlying technology Increased regulation has strengthened the link between accounting and technology o Sarbanes Oxley Act raised the executive and board responsibilities and ties criminal penalties to certain accounting and financial violations Major accounting firms have spawned tech focused consulting practices Technology in Marketing Firms use online channels to track and monitor consumer activities Firms are shifting spending from traditional media to the Web because of its ability to o Track customers o Analyze campaign results o Modify tactics services for cashless payment Firms are using social media to Firms are using apps to develop location based messages and o Generate sales o Improve their reputations o Better serve customers Search engine marketing SEM Search engine optimization SEO Customer relationship management CRM Personalization systems Managing the balance between gathering data and respecting consumer privacy Technology centric Operations Quality programs Process redesign Supply chain management Factory automation Service operations Technology and Human Resources Knowledge management systems are transforming into social media technologies o Helps in organizing and leveraging teams of experts Technology is used for employee training screening and evaluation Recruiting has moved online o Grounded in information systems that search databases for specific skill sets o Job seekers write resumes with key words as the first cut can be made by a database search program Professional social networks have put added pressure on employee satisfaction and retention Some students with their thoughtful blog posts compelling LinkedIn presence and twitter activities set themselves apart from their counterparts Technology in Law Activity has increase in the areas of intellectual property patents piracy and privacy Firms need legal teams with the skills to o Determine whether a firm can legally do what it plans o Help them protect proprietary methods and content o Help enforce claims in the home country and abroad Information Systems Careers Programmers Experts in user interface design process design and strategy Consulting and field engineering Chief Information Officer Chief Technology Officer Chief Innovation Officer C Level specialties in emerging areas o Chief information security officer CISO o Chief privacy officer CPO o Chief Information Assurance Officer Future of Students Intersections of business and technology must be studied o To develop critical thinking skills specific to technology o To evaluate new emerging technologies Those not trained to evaluate and make decisions risk irrelevance marginalization and failure Digital Markets Use of the internet and web to transact business digitally enable Began in 1995 and grew exponentially still growing even in a transactions recession This revolution is still in its early stages Retail e commerce revenues grew 15 20 per year until the recession of 2008 2009 when they slowed measurably In 2010 e commerce revenues are growing again at an estimated 12 annually Technology Evolution 19 yrs ago internet commercialized 18 yrs ago first mobile phone with internet connectivity 16 yrs ago Google named the search engine of choice by PC magazine 13 yrs ago Blackberry launched 10 yrs ago Facebook launched 8 yrs ago Twitter launched 7 yrs ago iPhone the first of the smart phones introduced 6 yrs ago Groupon introduced 3 yrs ago 17 million smart tablets sold estimated that 100 Last Quarter Apple sold a record 74 5 million iPhones in the Dec quarter a record that bested the old by a whopping 24 million Every 60 seconds so it seems new apps tailored to users specific million by 2014 needs created Digital Information Goods Digital anything that can be expressed as a string of 1s and 0s bits binary Digital Goods Information Goods Digital information goods are collections of symbols o Its utility depends on the arrangement of the symbol and on the interpretation or meaning of the symbols not on the material form they take Consumer information goods o Text books periodicals directories o Images photos movies o Sound music o Games Industrial information goods o Text catalogs product specifications service manuals blueprints plans o Images product photos training videos o Sound speeches presentations product sounds o Structured Data vendor directories management and operating information customer purchasing records Why are Digital Businesses Becoming Increasingly Important New technologies make it possible to get rid of the physical component of more and more products o Can fundamentally change the structure of an industry CD vs iTunes DVD vs Netflix vs Hulu Books vs Kindle Cable Satelite Video on Demand vs Tivo vs Netflix vs Hulu Ubiquitous computer networks make it easier and easier for people connect and exchange all sorts of
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