technology & business
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Business, Law, and Innovation. Technology & Business. Lecture 1 Spring 2014 Professor Adam Dell The University of Texas School of Law. What’s the Big Deal?. - Economy at a macro level - Reason companies buy/ use technology - Rate of adoption - Technology inside companies - PowerPoint PPT PresentationTRANSCRIPT
Business, Law, and Innovation
Technology & Business
Lecture 1Spring 2014
Professor Adam Dell
The University of Texas School of Law
- Economy at a macro level- Reason companies buy/ use technology- Rate of adoption- Technology inside companies
- Appendix:Brief HistoryBasic Vocabulary
What’s the Big Deal?
Economy at a Marco Level• Our economy is shifting from capital-based
economy to information-based economy
• Physical capital needs drop, as we move from tangible to intangible
• Cost of computing & communications decline the more prevalent they become
• Information KEY to COMPETITIVE EFFICIENCY
From the physical to digital
Adoption of Tech = Per Cap Income Growth
For the B School Students…
What is Capital Expenditure?
Who are the most efficient spenders?
Technology as a % of Capital Expenditures
Source: S&P's Research Insight
Every Functional Area of Business
• Technology Invasion• Every major business function addressed
• Communications (email, phone, fax, instant messaging)• Supply Chain (partners, suppliers, customers)• Procurement (RFQ, RFP)• Sales (lead management) • Customer Relationship (customer communications) • Marketing (email, SMS, social)• Accounting (Direct deposit, Excel)• HR (Applicant tracking, candidate profiling)
• No end in sight……
Why? Technology is a Corporate Arms Race
• Leading edge companies are leading edge users of technology
• Amazon (supply chain, RFID, logistics)• Dell (chatter, salesforce.com)
• Marginal competitive advantages
• Personalization (when you walk into a Macy’s they know it’s you)• Big data (Target knows you are pregnant)
• Companies cannot compete if they do not uses these tools.
• Salesman circa 1985
• Salesman circa 2013
Rate of Adoption: New Technologies
Marketing Automation
Complexity of Technology Enabled Enterprise
Small/Medium Business
Healthcare
FinancialServices
BroadcastTelcom
Federal/Public Sector
Resellers
VARs
CSRs
InsideSales
SystemIntegrators
Distributors
DistributorsOEMS
GlobalResellers
FieldService
IndependentHardware Vendors
(IHVs)
System &Technical
Integrators
VAR
Vertical Market Integrators
CorporateResellers
End Customers
Excess Inventory
PartsFinishedGoods
New Products
ServicesMainframe
CRM
ERP
Custom
SCM
XML
EDI
Web
Phone
Fax
Enterprise ProductLines Markets Channels CustomersSystems Mediums
Oh!…the woes!!!
The Implications • Lots of technologies
• Lots of systems to manage
• Lots of business processes deeply tied to IT• Ex. BP
• 200 different ERP solutions• 5 separate global deployments of SAP, none talk to each
other• Energy: 18 different ERP solutions
Let’s Step Back • How do companies buy technology?• It used to be that every 4 – 5 years:
• Evaluate new technologies• Assess ROI, cost & implications of rollout• Integrate, Migrate & Train• Deploy and Manage
– Until something better comes along WORTH going through whole painful process yet again….
– This accounts for the KLUDGE of corporate networks…
• Start with a simple architecture
Brief History of the Enterprise
• Then get ACCRETIVE
Brief History of the Enterprise
Today Companies Must Move Faster
But it’s no panacea…
Who can access my data?
Where is my data?
What if a rogue employee accidently deletes all my data? Did you back it up?
What if my cloud provider goes down?
What if I want to switch providers, how do I get my data back?
Another Kludge
InternetRadio
TV
Cable
50
0
20
40
60
80
100
12019
22
1926
1930
1934
1938
1942
1946
1950
1954
1958
1962
1966
1970
1974
1978
1982
1986
1990
1994
1998
N. A
mer
ican
Use
rs/ H
ouse
hold
s (M
M)
Years to reach 50MM users:====
Radio 38TV 13Cable 10Internet 5
Rate of Technology Adoption
Rate of Technology Adoption
A Brief History of Technology
Semiconductor Mainframe
Microprocessor Personal Computer
LAN
Local Area Network
LAN
LANLAN
Wide Area Network
WAN
A Brief History of Technology…contd.
University WANs
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Internet
- Backbone for data transmission- Standards that enable easy data exchange- What else could we put on top of this thing?
- Voice (cell & telephones)- Applications (email, IM, ERP)
- Result: ONE NETWORK