Technology Matters!
Technological evolution, choice,
transfer, and adaptation
Two intertwined technological
forces
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The Moore’s law–the acceleration of computing
power doubles about every 18 months
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The Metcalfe’s law—the extending connectivity
squares the network utility
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One of Intel’s cofounders
the faster, smaller, and cheaper digital devices
The inventor of Ethernet and the 3Com’s founder
v=n², v=utility, n=the number of connected nodes
Reach and Richness contributed by wireless and
broadband
Hardware innovation
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Processor & Storage: exponential
growth
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The speed & value attributed by the
Moore’s law bypassed the constraints of
Rock’s law
Handheld & wearable IT devices
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Miniaturization & pervasiveness—
ubiquitous connectedness of embedded
systems between and within home, office,
and any entities.
Software creativity
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From proprietary to Portability & Interoperability
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The platform/structural organizer of value network
Portable programming languages
Software/Data can interacts each other smartly under a
delegation world
Distributed objects and standards
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Ex ante, de jure negotiation but ex post de facto extension
Manipulating the One-way/Two-way compatibility
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The middleware/converter innovation—the purpose of
leveragability vs. the strategy of cannibalization
Trends of Telecommunication
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From circuits to packets
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From electrical to optical transmission
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TCP/IP protocol & QoS challenges
DSP power & IPv6 compensate VoIP problem for DiffServ
From the core/backbone of network to the on-ramp/edge of
network
Butter’s law: fiber’s capacity could double every 9 months—DWDM
fiber capacity up to 57.6 terabits ps
Overcoming the last mile
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Fixed access—xDSL, cable modem, microwave LMDS, M/LEO
(medium-/low-earth orbit) satellite
Sub-aerial mobile systems—1G,2G,3G, WLAN, Wi-max, 4G, etc.
Telecommunication
convergence
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Connection between the fixed-line networks and the
wireless networks
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Connection between end devices and servers
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PSTN, CATV, LAN, xDSL, FTTH, power
GSM, CDMA, PHS, PCS, Wi-Fi, Wi-max, HomeRF, IrDA, satellite GPS,
LMDS, cdma2000, WCDMA, TD-SCDMA
PCs, NB, PDA, mobile phones, Home/office/personal appliances,
vehicles
Telecom/mobile (virtual) network operators, CATV System operators,
ISPs, WISPs,
Connection between decentralized contents and disperse
transmission islands
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HTML. XML languages
IP, IPng technologies
Evolution of mobile standards
cdmaOne
IS-95A
IS-95B
CDMA2000 1x
IS-95C
GPRS
CDMA2000 1x
EV DO
CDMA2000
1x EV DV
EDGE
GSM
HSCSD
PDC
WCDMA
PDC-P
PHS
2G
2.5G
Main route
3G
Minor route
4G vision
Value Net of telecom
1.mobile operators (PHS-,
GSM-, CDMA-based
network, MISPS)
2.WISPs (WLAN, MVNOs)
3.Fixed-line operators, ISPs
4.CATV system operators
(telephony, WLAN+ADSL)
5.VOIP operators (P2P
telephony)
6.GPS satellite services
Competitors
1.Independent mobile phone vendors
2.global telecom equipments vendors
3.Contracted 3C retailers
Suppliers
Telecom
Complementors
1.content providers
2.PC/NB/PDA vendors
3.network peripheral
Customers
vendors (wireless card,
PCMCIA card)
1. specialized business users 4.multi-mode
phones
2. general consumer users
Extending readings
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Dertouzos, M. L. (1999), “The Future of
Computing,” Scientific American, 281(2),
August, pp15-26.
Ackoff, R. (1967), “Management
MISInformation Systems,” Management
Science, 14(4), pp.147-56.
ITU 1999 Annual Report, “Challenges to the
Network: Internet for Development,”
http://www.itu.org
Strategic thinking between
environmentalism and autonomy
Strategic gap
Strategic intent
Environmental
scanning
Resource
valuation
Strategy
formulation
Resource
planning
Strategy
implementation
Capability
development
Competitive
advantage
Core
competence
Environmentalism
Autonomy
Strategic Intent
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Hamel & Prahalad focus on aggressively developing
internal competences to counteract dynamic, global,
and turbulent environment for the glorious vision of
the firm rather than passively defend to adapt to
outside threats
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Not only to choose fitting strategies by existing internal
strengths to achieve external environmental opportunities
But also to build new capabilities and accumulate
resources to create and exploit future markets.
E.g., Sony and Cannon
Referred papers

Wade, Michael and John Hulland (2004), “Review:
The Resource-Based View and Information Systems
Research: Review, Extension and Suggestions for
Future Research,” MIS Quarterly, Volume 28, Number
1, pp.107-143.
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Amit, R. and P. J. H. Schoemaker (1993), Strategic Assets
and Organizational Rents,” Strategic Management Journal,
vol.14, pp.33-46.
Dierickx, I. and K. Cool (1989), “Asset Stock Accumulation
and Sustainability of Competitive Advantage,” Management
Science, vol.35, pp.1504-11.
Wernerfelf, B. (1984), “A Resource-based View of the Firm,”
Strategic Management Journal, vol.5, pp.171-180.
Referred papers (cont.)

Venkatesh, Viswanath, Michael G. Morris,
Gordon B. Davis, and Fred D. Davis (2003),
“User Acceptance of Information Technology:
Toward a Unified View,” MIS Quarterly,
Volume 27, Number 3, pp.425-78.
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Bagozzi, R. P., and J. R. Edwards (1998), “A General
Approach to Construct Validation in Organizational
Research: Application to Measurement of Work Values,”
Organizational Research Methods, 1(1), pp.48-87.
Referred papers (cont.)
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Bharadwaj, Anandhi S. (2000), “A resource-based perspective on information
technology capability and firm performance: An empirical investigation,” MIS
Quarterly, Vol. 24, Iss. 1.
 Teece, D. J. (1998), “Capturing Value from Knowledge Assets: The New
Economy, Markets for Know-how, and Intangible Assets,” California
Management, Review, 40(3), pp.55-79
 Peteraf, M. (1993), “The Cornerstones of Competitive Advantage: A
Resource-based view,” Strategic Management Journal, vol.14, pp.179-91.
Mata, Francisco J, William L. Fuerst, and Jay B. Barney (1995),
“Information technology and sustained competitive advantage:
A resource-based analysis,” MIS Quarterly, Vol. 19, Iss. 4.
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Castanias, R. P. and Helfat, C. E. (1991), “Managerial Resources and
Rents,” Journal of Management, 17(1), pp. 155-71.
Barney, J. C. (1986), “Strategic Factor Markets: Expectations, Luck, and
Business Strategy,” Management Science, 32(10), pp.1231-41.