Topic 1--Digital Age

Business & Technology

  • "Every company is a software company. You have to start thinking and operating like a digital company."

    • Satya Nadella, CEO, Microsoft

Phases of Industrialization

  • 1st Mechanization 1780

  • 2nd Mass Production 1900

  • 3rd Automation 1960

  • 4th Digitalization 2000

  • 5th Personalization 2020-?

  • ’The Fourth Industrial Revolution’ – Klaus Schwab

Technology Through the Eras

  • Mainframe Computers 1930

  • Mini-Computers 1965

  • Personal Computers 1977

  • Internet 1993

  • Digital Companies 2000

Digital is Transforming…

  • Work, life, and businesses

  • Every business is becoming a technology or software business

  • Every business is going through some digital transformation

Digital Strategy Top Themes…

  • Digital Platforms

  • Business Transformation

  • Artificial Intelligence

  • Security

Digital Strategy #1 - Digital Platforms

  • Software will account for 90% of innovation in automobiles.

Digital Strategy #2 - Business Transformation

  • Many firms still using outdated systems, technologies, and processes.

Digital Strategy #3 - Artificial Intelligence

  • Firms to leverage generative AI, robots, and process automation.

Digital Strategy #4 - Security

  • Data is key to a transformation and protecting data is critical for brand reputation.

Digital Building Blocks

  • Employees: Distributed, mobile, diverse, global, and connected 24/7 workforces

  • Suppliers: Securely capture, analyze, share data in real-time, across multiple points of contact, with a variety of partners

  • Customers: Want seamless interaction, on demand, when it’s most convenient to them

  • Platforms: Convergence of employee, customers, and suppliers into a shared digital domain

What is Digital Transformation?

  • Radical rethinking of how an organization uses technology, people and processes to change business performance.

    • Creating new business models and revenue streams

    • Re-focus on the consumer and their preferences

    • Building technology solutions to reshape how we communicate, consume, learn, shop, socialize and work

    • Investments prioritized for technology and business transformation

    • Leadership support at the highest levels

What Digital Decisions Should a Company Make?

  • Capabilities

  • Partners

  • Flexibility

  • Marketplace

  • Cybersecurity

  • Data

Why Technology Matters

  • Technology has become a commodity…

    1. Transport Mechanism - moves data vs. moves products

    2. Highly Replicable - phones, TVs, computers…

    3. Perfect Delivery Channel - information & data processing

    4. Rapid Price Deflation - processors cost 50% less and increase speed 2x every 18m

    5. Value & Risk - tech offers more when shared than when used in isolation

Why Should Businesses Care?

  1. IT is critical to every organization

  2. IT used in every business function

  3. IT innovation continuously drives change

  4. IT is often disruptive

  5. IT requires on-going technology decisions

  6. IT has no one correct answer

Why Technology Matters

  • Technology is Expensive and 50% Wasted

    • Tech Examples: Software, storage, people, networks, security, and hardware

    • Investments or products don’t deliver the needed outcomes

  • Technology is Essential and Risky

    • Tech brings processes, tools, and information together to promote the betterment of mankind

    • Technology has the potential to cause financial, reputational, regulatory, or strategic risk

    • Over 100K malicious programs are launched everyday and U.S. is the #1 target

Does Technology Really Matter?

  • YES!

    • Digital Transformation is building a better business

    • Technology adoption is the vehicle, not the end-result

    • Many business leaders think Digital Transformation as a transformation of their IT Department, rather than transformation of their business model

Future of IT

  • Innovation

  • Disruption

  • Global Competition

  • New Era for Talent

  • Cybersecurity

  • Data Value

  • Geopolitics

  • Regulations

  • Disaster Recovery

  • Artificial Intelligence

Topic One Highlights

  • Foundational technologies enabling digital transformation… PC, Internet, Smart Phones, & Cloud Computing

  • Digital Strategy Themes…Digital Platforms, Business Transformation, AI and Security to change performance

  • Digital Building Blocks…Employees, Customers, Suppliers and Platforms

  • Businesses will need to transform, or they will likely perish

Topic One Terms

  • Computer Literacy: Someone with infrastructure technology focus who engineers, designs, and develops technology

  • Information Systems Literacy: Someone with a primary focus on business. Has knowledge and experience with information systems. Understands how systems support different functions and cous on the use of data and systems.

  • Technology Commodities: Technology as a transport mechanism to move data. Technology which is highly replicable and subject to price deflations. Offers more valuee and risk when shared vs. used in isolation.

  • Digital Transformation: Radical rethinking of how an organization uses technology, people, and processes to change business performance.

Topic #1 Quiz Study Guide

  • What digital strategy themes make any digital transformation more successful?

  • What digital building blocks make up a digital strategy?

  • What do technology commodities have in common and what value do they provide to a firm?

  • What is Management Information Systems(MIS) the study of?

  • What types of companies will see a significant impact of digital transformation?

  • What are some business transformations examples brought on by new technologies?

  • What significant technologies over the last 40 years provided a foundation for digital transformations?