Chapter 12

Information Systems Trends

What managers need to know about the emerging and enduring trends in Information Systems management

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Course Roadmap
Part I: Foundations Part II: Competing in the Internet Age Part III: The Strategic use of Information Systems Part IV: Getting IT Done
Chapter 10: Funding Information Systems Chapter 11: Creating Information Systems Chapter 12: Information System Trends Chapter 13: Security, Privacy and Ethics

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Learning Objectives
1. Define the term mobile platform and its relevance in todays technology environment. Describe some of the emerging applications that leverage the mobile platform, as well as the key trends surrounding it. 2. Describe the importance of Green IS and energy informatics, the reasons for their emergence, and their potential impacts. 3. Define the notion of digital data genesis, the reasons for its emergence, and its potential impacts. 4. Define the notion of customer managed interactions, the reasons for its emergence, and its potential impacts. 5. Define the term open source software and be able to identify the primary commercial models that have been crafted around the open source movement. You will also be able to articulate the principal advantages and risks associated with the implementation of open source solutions in modern organizations. 6. Define the terms cloud computing and software as a service (SaaS), understand their genesis, and discuss their principal characteristics.
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Introduction
Successful managers know it important to identify new trends The task of navigating the many emerging trends and identifying which technologies will succeed is no easy task Organizations must be aware of an emerging information systems trends Trends are defined by the functionalities of the technology at the core, or the features and characteristics of a new class of software applicationsfrom which the trend typically takes its name and its impetus. It is critical for you to realize that, no matter how sophisticated a technology may be, in order for it to have a positive impact on the organization you must be able to design an information system around it

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The Mobile Platform

The most visible trend in computing today is the widespread adoption of the mobile platform A recent development in the area of mobile computing is the rise to prominence of tablets, characterized by their light weight, multi-touch input screens and sustained battery power hanks to its technological characteristics portability and connectivity the mobile platform gives users the opportunity for constant access to computing power and access to the data grid

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Characteristics
Ubiquity
Ubiquity represents the idea that users of the device can access needed resources from (in theory) anywhere

Identifiabilty
Identifiabilty represents the idea that mobile devices uniquely identify their user. In order to access the data grid, both smartphones and tablets utilize the cellular network and use a Subscriber Identification Module (SIM card)

Context Awareness
Context Awareness is enabled by the fact that mobile devices can be geolocated. In other words, modern smartphones that incorporate a Global Positioning System (GPS) receiver can communicate their position to any software application running on them

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Mobile Commerce
Mobile commerce
Refers to the ability to complete commercial transactions using mobile devices, such as smartphones and tablets
Also known as M-Commerce or mCommerce

Has recently received significant impetus as consumers have shown its viability by adopting electronic commerce and selfservice through digital mobile devices
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Location-Based Social Networking

The rise to prominence of the mobile platform has enabled social networking firms to allow users to reach (some would say annoy!) their contacts more often and in a more timely manner using mobile versions of their service Location-based social networking
Extension of mobile social networking whereby the geographical location of the user becomes an integral component of the service enabling efficient access to context-dependent services Enable social network users to bridge the gap from access to their friends ratings and reviews (what friends say), to their actual behavior (what friends do) the ultimate high tech version of voting with your feet!

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Augmented Reality
Augmented reality is a field of computing that has recently received increased attention thanks to the launch of a few augmented reality applications for smartphones, such as Wikitude and Layar Augmented reality consists of superimposing an information layer on top of a real image. Augmented reality is not confined to the mobile platform

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Green IS vs. IT
Environmental sustainability:
The notion that it is imperative for the human species to take the lead in the conservation of the natural environment and the sustainable management of its resources

Green IT
Focus on reducing energy consumption of IT devices and data centers

Green IS
Focus on broadening the role of IT in minimizing adverse impacts on environmental sustainability

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Digital Data Genius

We are rapidly moving toward a world where events, transactions, and processes are all digitized
Purchasing a book online Using RFID devices to track items Using a search engine (Google, Bing) to locate information Using our cell phone to retrieve voice-mail messages
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Digital Data Genius Requirements

In order to take advantage of the opportunities afforded by digital data genesis, a firm must develop a digital data genesis capability
Choosing IT to generate and capture data in its native digital form Integrating IT in the business processes that generate the data of interest Managing the digital data so produced
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Digital Data Genius Strategies & Decisions

Digital data genesis strategies require a disciplined approach to digital data generation and capture, predicated on the recognition of the value of data and the consequent need to architect systems that originate it in a digital format Digital data genesis decisions about digital data genesis should be driven by the desire to seamlessly and unobtrusively collect data that answers basic questions about a transaction
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Digital Data Genius Basic Questions

When did the transaction take place? Where did the transaction occur? What was the nature of the transaction? How was the transaction executed? Who initiated the transaction? What was the outcome?

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Digital Data Genius Automation

Machine to Machine (M2M)
IT-enabled everyday objects (e.g., utility meters) and pervasive connectivity (e.g., wireless networks) make it is possible to leverage data that is born digital to let the machine generating an event communicate directly with the other machines that can act upon that event.

Machine to Person (M2P)

When the actuator on the receiving end of the digital data generated by IT-enabled everyday objects is a person, rather than an object, we talk about M2P transactions.
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Digital Data Genius Opportunities

The proliferation of sensors and sensor data that produce usable information with unprecedented speed and granularity provides the opportunity to design information systems expressly designed to take advantage of this environmental change At its most fundamental level, digital data genesis offers the opportunity to bridge the gap between the digital and physical world. In other words, as more and more physical activities come with an automatically generated information representation of the activity, it is increasingly possible to extract value from the symbiotic relationship of physical and digital systems One approach to analyzing this symbiotic relationship between physical activities and information is through the lens of ubiquity, uniqueness, unison, and universality

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Digital Data Genius Opportunities

Ubiquity
Information access that is unconstrained by time and space ranks high on the ubiquity scale. Data that are generated natively in digital form are theoretically available in real time. Ubiquitous information provides opportunities for rationalizing the use of resources.

Uniqueness
Information access that is personalized and individually tailored to the needs of a person or other entity ranks high in uniqueness Digital data genesis enabled unprecedented levels of uniqueness
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Digital Data Genius Opportunities

Unison
Information that is consistent and devoid of redundancies ranks high in unison At a procedural level unison translates into the standardization of the activities necessary to perform an activity

Universality
Information that is standardized and easily shareable across platforms ranks high in universality At a procedural level universality describes the ease with which separate processes can interlock and coordinate

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The Super Crunchers

In an information-rich world, the wealth of information means a dearth of something else: a scarcity of whatever it is that information consumes Digital data genesis exacerbates this problem by enabling the creation of unprecedented amounts of information Because data is in a digital form, some argue that the future belongs the supercrunchers
Those who will be able to exploit the availability of data to their advantage and the advantage of their organizations by quickly and effortlessly testing their hunches and intuitions with data
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Customer Relationship Management

CRM is a strategic initiative, not a technology CRM relies on transactional data and is designed to help the firm learn about customers Designed to use data to make inferences about customer:
Behaviors Needs

The objective is to create value for the firm by optimizing the relationship with each customer
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CRM Infrastructure

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Limitations of CRM
CRM is firm centric
Only relies on transactional and behavioral data pertaining to the interactions of the customer with the firm

Limited predictive ability

Some events are unforeseeable and only the customer knows about their occurrence

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Customer Managed Interactions

In CMIs customer data is stored and managed by the customer CMI solves the limitations of CRM initiatives:
The customers personal data warehouse holds complete historical information Future events are more likely known Inferences are more precise

Infomediaries may maintain customers data warehouses

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Customer Managed Interactions

CMI is not only about the lowest prices
CMI completion may depend on lower price More likely will stem from the quality of the recommendation

CMI technology
The Internet provides the infrastructure for data transfer Falling costs of storage make personal data warehouses a feasible alternative
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Customer Interactions in the CMI Paradigm

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Open Source
Closed Source
Proprietary software controlled by a software house Prevent users from accessing and modifying the source code Example: Microsoft Windows

Open Source license characteristics:

Free distribution Available source code Derived works No discrimination Technology neutrality

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Models of Open Source

Sponsored Open Source:
Foundations provide support and coordination to open source efforts

Open Source Service:

Free licensing of the software, but charges for installation, support, training, and other services

Professional Open Source:

A software house maintains tight control over the software programs that they sell

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Advantages of Open Source

Robustness: More robust and more reliable than proprietary applications Creativity: Harnesses the creativity of thousands of developers Limited lock-in: Switching costs are lower than those with proprietary software Simplified licensing: Customers need not worry about complex legal constraints Free License: Open source can generally be licensed for free
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Disadvantages of Open Source

Unpredictable costs. Skeptics like to say that free software is like a free puppyyes, you get it for nothing, but then you will encounter many (often unplanned) costs along the way Support varies widely. Depending on the product and where your firm acquired it, support can range from high quality to nonexistent. Security. Skeptics claim that publishing source code gives an advantage to those who want to break its security Compatibility. There is no guarantee that open source solutions will be compatible with one another and/or with proprietary software. The legal landscape. Open source software requires that no portion of the code is protected by copyright

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Software as a Service (SaaS)

Focuses on the services (i.e., functionalities) being provided, not on the physical products (software) being sold Application Service Provision (ASP)
A provider hosts and manages a standard application (e.g., e-Mail) Clients access the application over a network (e.g., the Internet)

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Cloud Computing
A new approach to computing
Virtualization Service-oriented architecture Utility pricing of computing resources

A computing delivery approach that divorces use of resources from the actual management of those resources
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The Recap
The mobile platform represents the current frontier of technology adoption. Information systems can play a crucial role toward advancing the global imperative of environmental sustainability. Green IT vs Green IS
Focus on reducing energy consumption of IT devices and data centers vs focus on broadening the role of IT in minimizing adverse impacts on environmental sustainability
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The Recap
The widespread adoption of information technology and the increasing computer mediation of organizational and social processes have created the possibility to utilize data that is born digital With customer managed interactions (CMI), customer data are stored and managed by the customeror on his or her behalf by an infomediaryrather than by the firms who handled the transaction Open source software programs, those programs that enable the adopting firm to receive and modify the source code, are increasingly becoming a viable option for organizations Software as a service (SaaS) is a software delivery approach in which a provider hosts the application in its data centers and the customer accesses the needed applications functionalities over a computer network
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What we Learned
1. Define the term mobile platform and its relevance in todays technology environment. Describe some of the emerging applications that leverage the mobile platform, as well as the key trends surrounding it. 2. Describe the importance of Green IS and energy informatics, the reasons for their emergence, and their potential impacts. 3. Define the notion of digital data genesis, the reasons for its emergence, and its potential impacts. 4. Define the notion of customer managed interactions, the reasons for its emergence, and its potential impacts. 5. Define the term open source software and be able to identify the primary commercial models that have been crafted around the open source movement. You will also be able to articulate the principal advantages and risks associated with the implementation of open source solutions in modern organizations. 6. Define the terms cloud computing and software as a service (SaaS), understand their genesis, and discuss their principal characteristics.
Gabriele Piccoli