Strategically Leveraging Information Systems
to Transform Business:
Trends, Challenges and Opportunities
Dr. Sean T. McGann
Our Central Questions
What is the strategic importance of IS?
Will the strategic importance if IS increase in the future?
What trends are driving the strategic importance of IS?
IS and Non-IS Professionals:
Why you should care…
Strategic importance of IS is at an all time high
8-10% of revenues are spent on IS
IS is the platform of business
IS is the source of business intelligence
IS is the forum for global collaboration
IS creates strategic opportunity
IS has become a “competitive necessity”
Agenda
Introduction/Seminar Goals
Discussion of 4 Key IS Trends
Team Analysis Activity
Our IS Predictions
Background
BS Electronics Engineering - BGSU
MBA – Ohio University
PhD in Information Systems – Case Western Reserve
Andersen Consulting – Manager – IT Implementations
CEO – PogoNet Internet Solutions Inc.
Currently Independent IT Consultant & MIS Professor
Seminar Goals
• Establish baseline terminology
• Clarify fundamental concepts
Understand
Discuss
• Leverage your expertise
• Share knowledge and personal experience
• Discuss illustrative examples
Analyze
• Apply concepts in context of businesses
• Express your opinions
• Discuss the future of business strategies
Information Systems Defined
Strategic Level Drivers
People
(Business Goals/KPIs)
Operational Level Drivers
(Process Problem Areas)
Processes
IS
IT
IS as a Strategic Driver
Strategic Level Drivers
People
(Business Goals/KPIs)
Operational Level Drivers
(Process Problem Areas)
Processes
IS
IT
Definition of a “Strategic” IS
Significant impact on the enterprise over the next 3 years
High potential for disruption to the business
Requires significant capital investment…$$$!
Competitive risk in being late to adopt
Definition of an IS Trend
An “IS Trend” is a general tendency or
direction in business strategy and
operations over time…resulting from the
adoption and diffusion of Information
Systems.
IS Trends for our Seminar
Cloud Computing
Social Networks & Analytics in Business
Wireless IT & Mobile Computing
IT Security
The Gartner Hype Cycle
Cloud Computing…experts say:
Cloud Computing is at the “Peak of Inflated Expectations”
By 2014, 20% of businesses will own no significant IT Assets
Approximately 5% of global applications are currently in the cloud
At year-end 2016, more than 50 percent of Global 1000 companies will
have stored customer-sensitive data in the public cloud.
Cloud Computing Analysis
Define the trend.
What are the opportunities it creates?
What are the challenges it presents?
What is your opinion of its strategic importance?
Cloud Computing Summary…
Strategic “Cost Force” and “Flexibility Force”
Creates IT capabilities and capacity quickly – HaaS & SaaS
Minimizes initial capital expenditures and ongoing maint. costs
Allows small and medium businesses to compete with large businesses
Creates new business opportunities for providers/aggregators/integrators
Security and privacy concerns are key challenges
Social Networks…experts say:
Social Analytics is nearing the “Peak of Inflated Expectations”
BY 2016, social IT will be integrated into most business software
Linked In IPO Value was $4.2 B
Facebook is preparing for an IPO that will value them at $100 B
Social Networking in Business Analysis
Define the trend.
What are the opportunities it creates?
What are the challenges it presents?
What is your opinion of its importance?
Social Networking Summary…
Internal and External uses for businesses
Social networking, social collaboration, social publishing and social feedback
Professional Networking most common use (e.g. Linkedin)
Internal relationship building amongst colleagues
Product Development & marketing…direct interaction with customers/clients
Quick product feedback (e.g. sentiment analysis & blogs)…allows quick adjustments (e.g. iPhone)
Streamline communications/collaboration with colleagues and clients
Knowledge sharing internally and externally
Mixing personal and professional social networking can create issues
Wireless IT…experts say:
Tablet PCs are at the “Peak of Inflated Expectations”
BY 2013, mobile devices (smartphones/tablets) will overtake PCs as
the primary web-access device
By 2014, there will be a 90% mobile penetration rate worldwide
By 2015, mobile app. development projects targeting smartphones and
tablets will outnumber desktop PC projects by a ratio of 4-to-1.
By 2016, at least 50 percent of enterprise email users will rely primarily
on a browser, tablet or mobile client instead of a desktop client.
Wireless IT & Mobile Computing Analysis
Define the trend.
What are the opportunities it creates?
What are the challenges it presents?
What is your opinion of its strategic importance?
Wireless & Mobile Summary…
Mobile commerce will be the dominant form of B2C
B2B mobile commerce increasing as B-apps are developed (e.g. CRM)
Smart phone/tablet capabilities and anytime/anywhere access are keys
Security and privacy concerns are key challenges
Context awareness will be a key factor for interaction & delivery
Goal is to enable real-time decision making at the point of interaction
IS Security…experts say:
Through 2016, the financial impact of cybercrime will grow 10 percent per
year, due to the continuing discovery of new vulnerabilities.
At year-end 2016, more than 50 percent of Global 1000 companies will have
stored customer-sensitive data in the public cloud.
IBM reports that in 2012, cyber thieves have already begun to successfully
hack into cloud computing environments.
Attacks on mobile devices will double each year.
Social networks have become one of the primary sources of data for identity
thieves.
By 2016, 40 percent of enterprises will make proof of independent security
testing a precondition for using any type of cloud service.
IS Security Analysis
Define the trend.
What are the opportunities it creates?
What are the challenges it presents?
What is your opinion of its strategic importance?
IS Security Summary…
Many of our trends, also create significant IS security risks
IS Security in the age of interconnectivity and mobility is huge challenge
More sensitive info than ever being exchanged on the Internet
Social networks create an even larger threat to security & privacy
Hackers are becoming more sophisticated & more active
Threat of Cyberterrorism is significant (e.g. financial markets, energy grid)
My Predictions…
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Globally, 30% of large businesses, 40% of medium businesses and 60% of small
businesses will run the majority of their enterprise, BI and collaboration systems
via cloud computing within 10 years.
IT budgets will decrease by 50% in the next 10 years.
US small businesses will lead the migration to the cloud.
The demand for IS analysts and integrators will triple, while the demand for
technicians will be cut in half in the next ten years.
AT&T will emerge as the leading cloud computing aggregator within the next 10
years.
Google and Amazon will emerge as the leading cloud service providers in the
next 5 years.
Google and Apple will provide intense drama as they clash for market share in
smartphones, mobile apps, operating systems/PCs, and internet advertising. This
will change the face of consumer IT, especially mobile IT/commerce.
Apple and Google will also battle for a foothold in social networks.
Our Central Questions
What is the strategic importance of IS?
Will the strategic importance if IS increase in the future?
What trends are driving the strategic importance of IS?
Your Predictions??
Final Analysis Activity
Pick any business and discuss their strategic goals & future IS/IT
challenges/opportunities.
What strategic recommendations would you make for them in
each IS/IT trend area we discussed?
Questions to consider in your analysis:
• Will they leverage Cloud Computing to increase their IT capabilities and capacity?
• Should they integrate social networks into their business? If so, how?
• How can they improve their businesses through wireless IT & mobile commerce?
• What IT security vulnerabilities must they protect themselves from?