2. Learning Objectives
At the completion of this
session you will be able to:
• Explain the disruptive influence of
technology
• Describe how the role of
Information Technology has evolved
over the years
• List the key features of Information
Technology that have enabled it to
become a catalyst for change
• List some examples of business
transformation through IT
Learning Objectives
3. Topics Index
1
Introduction: Technology as a disruptive force in
business In this session we are going to:
Evolving Role of Information Technology • Understand how Information
2 Technology has transformed
entire industries and enabled
Enabling characteristics of Technology
completely new ways of
3 doing business
4 Dell: Leveraging technology for a new business
model
5 Ebay: Taking the bazaar to every home
6 Summary
Topics Index
4. Introduction: Technology as a disruptive force in
1
business
In this section we are going to:
2
Evolving Role of Information Technology • Look at a few examples of
the disruptive influence of
Technology and understand
3 Enabling characteristics of Technology the trends behind it
4 Dell: Leveraging technology for a new business
model
5 Ebay: Taking the bazaar to every home
6 Summary
Introduction: Technology as a disruptive force in business
5. Encyclopedia Britannica
• Encyclopedia Britannica was the
market leader in the home
encyclopedia industry
• In 1990, the company had sales
of USD 650 million from its print-
bound edition
• In just 5 years, sales of the print-
bound edition dropped by almost
80%!
Introduction: Technology as a disruptive force in business
6. Newspaper Classified
Advertisements
• For a long time, Classified
Advertisements was a significant
share of newspaper revenues
• The US Newspaper classified
advertisement revenue peaked at
USD 16 billion in 2005
• By 2009 (in just 4 years) this
number dropped by 70% to just
USD 5 billion in 2009
Introduction: Technology as a disruptive force in business
7. Emerging trends as Disruptors
Emerging technology trends can disrupt entire
industries by enabling new ways of doing business
Introduction: Technology as a disruptive force in business
8. Emerging trends as Disruptors
• The democratization of technology
• The democratization of information
Introduction: Technology as a disruptive force in business
9. The democratization of technology & information
• Personal Computers
have become more
affordable due to the
drop in their prices
and more useful due
to increase in their
capability
• The explosive
growth of the
These trends
have enabled Internet has made
businesses to information sources
reach consumers and services
in new and more accessible for
powerful ways consumers
Introduction: Technology as a disruptive force in business
10. Encyclopedia Britannica
The drop in Players like
prices and Encarta gave
increase in away the CD-
capacity of CD- ROM edition free
ROMS created with Personal
competition for Computers. The
the print-bound
encyclopedia editions cost
industry. almost US The market for
$2,000. the print-bound
edition shrank
almost
overnight!
Introduction: Technology as a disruptive force in business
11. Classified Advertisements
• A company called Craigslist started
FREE online classified
advertisements
• With personal computers and the
Internet reaching a large number of
people, the reach of Craigslist
became large enough to be
The newspaper
attractive to advertisers classified
advertisement
market shrank
almost
overnight!
Introduction: Technology as a disruptive force in business
12. Thomas Friedman on Globalization
Introduction: Technology as a disruptive force in business
13. Introduction: Technology as a disruptive force in business
1
Evolving Role of Information Technology In this section we are going to:
2
• Look at how the role of
Information Technology has
3 Enabling characteristics of Technology evolved over the years
4 Dell: Leveraging technology for a new
business model
5 Ebay: Taking the bazaar to every home
6 Summary
Evolving Role of Information Technology
15. Evolving Role of IT – Recap
Localized Exploitation – automate a part
of a business process
Cross Functional Integration – automate
business processes and functions
Network Reconfiguration – Integrate a
network of businesses
Business Scope Redefinition – IT solution
itself can become a product or service
Evolving Role of Information Technology
16. Technology will not solve all problems!
Evolving Role of Information Technology
17. Technology enabled revenue growth is the new mantra
• Traditionally IT has been tasked with
improving profitability by driving cost
reduction
• C-level executives, particularly CEOs now
expect IT to improve top-line by driving
revenue growth
• Therefore IT is now a participant and leader in
business strategy and planning
Evolving Role of Information Technology
18. Introduction: Technology as a disruptive force in business
1
In this section we are going to:
2
Evolving Role of Information Technology • Understand the key features
of Information Technology
that have enabled it to
3 Enabling characteristics of Technology become a catalyst for change
4 Dell: Leveraging technology for a new business
model
5 Ebay: Taking the bazaar to every home
6 Summary
Enabling characteristics of Technology
19. Enabling Characteristics of Technology
Mass
Personalization
Mass
participation A truly global
through online marketplace
communities
Reach and Speed have enabled:
Enabling characteristics of Technology
20. Introduction: Technology as a disruptive force in business
1
In this section we are going to:
2
Evolving Role of Information Technology • Discuss how Dell Inc.
transformed the Personal
Computer market through
3 Enabling characteristics of Technology the use of technology
4 Dell: Leveraging technology for a new business
model
5 Ebay: Taking the bazaar to every home
6 Summary
Dell: Leveraging technology for a new business model
21. DISCUSSION
How has Dell transformed the computer
retail industry?
Dell: Leveraging technology for a new business model
22. The Dell Way – key questions
What did the traditional personal computer
retail industry look like?
What opportunity did Dell recognize?
What were the key differences in
Dell’s approach?
What role did technology play in
enabling Dell to exploit the opportunity
and transform the market?
Dell: Leveraging technology for a new business model
23. The Dell Way – Summary
The five tenets of the direct model Dell adopts
are:
–Most Efficient Path to the Customer
–Single Point of Accountability
–Build-to-Order
–Low-Cost Leader
–Standards-Based Technology
Dell has applied the efficiencies of the Internet to
leverage this model
Dell: Leveraging technology for a new business model
24. Introduction: Technology as a disruptive
1
force in business
In this section we are going to:
2 Evolving Role of Information Technology • Look at a few examples of
the disruptive influence of
Technology and understand
3 Enabling characteristics of Technology the trends behind it
4 Dell: Leveraging technology for a new
business model
5 Ebay: Taking the bazaar to every home
6 Summary
Ebay: Taking the bazaar to every home
25. DISCUSSION
How has ebay used technology to
transform the auction industry?
Dell: Leveraging technology for a new business model
26. The ebay model – key questions
What did the traditional auctions
industry look like?
What could one buy and sell
through auctions?
What opportunity did ebay
What role did technology play recognize?
in enabling ebay to exploit the
opportunity and transform the
market?
Ebay: Taking the bazaar to every home
27. The ebay Story – Summary
Ebay’s mission is to create the “world’s
largest online marketplace”.
The core principles are:
• Create a large user-base around the
world
• Create an environment of trust
• Foster a strong sense of community
• Sense of Fun!
ebay has used the reach and efficiency
of the Internet to achieve its objective
Ebay: Taking the bazaar to every home
28. Summing Up
Technology can help transform a business or an entire
industry
Technology enables such transformation due to its reach,
speed, and cost efficiency
Businesses must constantly evaluate emerging technology
trends to think of new ways of doing business
The CIO must participate in business strategy and planning
Ebay: Taking the bazaar to every home
29. References
• Amazon.com CTO writeup on AWS:
http://gigaom.com/2010/02/01/amazon-cto-werner-vogels-on-
amazon%E2%80%99s-web-services-startups-and-innovation/
• The CIO’s opportunity to transform transformation:
http://www.pwc.com/us/en/technology-forecast/winter2010/cios-
opportunity-to-transform-transformation.jhtml
• The Power of IT in business tranformation:
http://ezinearticles.com/?The-Power-of-Information-Technology-
in-Business-Transformation&id=2477661
• Rethinking IT and business transformation success:
http://www.zdnet.com/blog/projectfailures/rethinking-it-and-
business-transformation-success/8957