IT Business Managment

1.  Operational excellence                                        (Walmart)
2. New products, services and business models      ( Navionics, Otto: catalog --> platform)
3. Customer and supplier intimacy                      (“Cruising into the Future - MSC Meraviglia.)  high-end hotels, booking.com, AirBnB; why free WiFI at airports, etc.? )
4. Improved decision making                                ( capacity planning at FraPort,)
5. Competitive advantage                                    (“Shoe Shopping is Going Digital”)
6. Survival                                                  (SAP Vehicle Insights on the Test Track)

1. Organization
   1. Global / Local
   2. Business Functions
   3. Departments
   4. Organizational
   5. politics
   6. Culture
   7. Quality of life
2. Technology
   1. Hardware
   2. Software / Database
   3. Deployment (Onpremise/ Cloud /Hybrid)
   4. Network
   5. Internet / Intranet / Mobile / IoT
   6. System Quality
3. Management
   1. Hierarchy / Responsibility
   2. Accountability and control
   3. Information rights and obligations

Apply and discuss: How Aerofarms' vertical farms grow produce

1. Government
2. Competitor
3. Customer
4. Financial Institur
5. Culture
6. Knowledge 
7. Technology

Information System

Firm

1. Competitors
2. Sutbstitute products (Svarowsky vs. preciosa
3. Customers (obeer - Former competitors are now customers)
4. Suppliers
5. New market entrance (hotel-airbnb) ich würde das eger als substitute bezeichnen

1. Business Challange
   • High level problem
2. Management, Communication, Information Technology
   • Broken down
   • Sicht auf Prozess und Ablauf 
   • Problem in Teilschritte zerlegt
3. Information System
   1. Translatet into systems
   2. Sensoren
   3. Programme
4. Business solution
   1. High level solution
   2. Gesamtlösung in strategischer Sicht

1. Implantable and wearable technologies.
2. Our digital presence.
3. Vision as the new interface.
4. Ubiquitous computing.
5. A supercomputer in your pocket.
6. Storage for all.
7. The internet of and for things.
8. Smart cities and smarter homes.
9. Big data for big insights.
10. Robots, decision-making and the world of work.
11. The rise of digital currencies.
12. The sharing economy.
13. 3D printing.

1. Who are our competitors in the digital economy?
2. How fast must we act?
3. What is the value of digitalization for our business?
4. What capabilities do we need in the digital age?
5. How does digitalization affect my existing customers?

1. • Always on:
2. • Readily accessible:
3. • Information rich: 
4. • Interactive.
5. • Not just about people: 
6. • Always recording: 

1. • Always on: Ubiquitous mobile devices and broadband internet connections allow people to be connected 24/7, to family, friends, work, avocations, obsessions, and more.
2. • Readily accessible: A universe of mobile devices and personal computers connects people and organizations with each other, and such connections are increasingly available at any time and in any location.
3. • Information rich: 24-h access to websites, social media, search engines, news and entertainment channels and the like, ensure that information—from the strategic to the frivolous—is always accessible, beyond anyone’s capacity to consume.
4. • Interactive: Anyone and everyone can offer input on just about everything.
5. • Not just about people: Hyper connectivity also includes people-to-machine and machine-to-machine communication, which supports the Internet of Things phenomenon.
6. • Always recording: Service records, practically unlimited storage capacities, miniaturized video cameras, sensors, global positioning systems, and more— combined with people’s desire to document their own activities—ensure that a large portion of everyone’s communications and daily activities are part of a semi-permanent record.

Discussion / Exercise. Examples (Hagleitner, student examples)

1. People:
   • New area of personalization
   • Observe patterns of consumer behavior among people and with machines, which in turn can provide predictive and prescriptive services.
   • Information obtained from social media interactions with customers’ needs to be conveyed to other lines of business
2. Businesses:
   • Co-Innovation with better external-internal collaboration
   • Brand Co-Creation by consumers through shared experiences and defined by the results of online searches and conversations
3. Communities:
   • the ability to form and engage with like-minded individuals allows for an exponential formation of specialized communities (Meetup, hobbies)
   • Peer based recommendation: Amazon, Tripadvisor
   • Banks will fight for ‘ownership’ of communities of home owners, insurers will explore and nurture communities of car drivers, universities will capitalize on communities of students.
4. Sensors
   • Becoming a commodity, costing increasingly less, while becoming more reliable, and having a longer life span ! safety and efficiency in complex sit.

Cloud Computing = type of computing that delivers IT-enabled capabilities (such as software, hardware, platform and
infrastructure) using the Internet (2010)

Using a network of remote servers suing the Internet (aka in the “cloud”) to
• Store
• Manage
• Process data
rather than using local server or personal computers

Allows scalable, elastic use of computing capabilities
• Controlled interface
• Ubiquitous access
• Virtual business environment
• Addressability and traceability
• Rapid elasticity
• Use based (utility/subsription-like) cost-model vs. upfront investment

Smarter world = refers to the act of transferring data, knowledge and information seamlessly and meaningfully among networks of objects and/or users (2004)

1. Consequence:
   1. Disappearance of traditional PC input and output media such as screens, mice and keyboards
   2. We will communicate directly with our clothes, watches, furniture and the like; these objects will, in turn, communicate with one another, and with other people’s objects, too
2. Innovations to watch
   1. Smart Products (Monitoring, Control, Optimization, Autonomy)
   2. Smarter Robots (According to Bank of America, 2016: 45% of manufacturing tasks will be performed by robots vs. 10% today)
   3. Smarter Printing (3D, … ! Did you know that 90%+ hearing aid shells are printed 3D (The Economist 2011)
   4. Artificial intelligence (= concept and capabilities that strive to mimic human intelligence through experience and learning)
3. Impact
   1. comes as a result of successful from orchestration
   2. Requires integration of application around a “digital core”

1. • hyper connectivity
2. • Supercomputing
3. • cloud computing
4. • smarter world
5. • cyber security

1. Breakthrough technologies
   • hyper connectivity
     • Supercomputing
     • cloud computing
     • smarter world
     • cyber security
2. Speed becomes crucial, as product lifecycles become shorter
3. Customers demand quicker development and delivery of new products and services, which translates into the need for improved response times
4. Changing organizational structures
5. Changing business processes (better adapt for customer)

a) Enabling new processes
b) Making corporations more connected and
c) Agile to create value out of the enabling IT
 

1. Globalization and sales growth
   • (Multi-tier SCM)
   • trasparency, live business
2. Supply chain visibility
   • (material, processes, resources, capabilities along the extended network)
3. Process standardization and automation
   • (GLocal) Global Company, local provider
4. Supply chain collaboration
   • (partnering with customers, logistic service providers, or even competitors)
5. Flexibility in responding to the volatile markets
   • (due to increasing number of product variants and options )
6. Innovation and new business models
   1. (as IT and private life are merging --> user expectations)

• The “classic” model is based an a “hierarchy of effects” (back on 1920 psychological research) which leads to progression
• Today at each stage of the marketing funnel customers are also influenced by customer networks
• Business need to engage,nurture and inspire repeat customers to enter the stage of advocacy, where they will contribute to business growth through the rest of its customer network

1. Customer:Roche: 
   • only buyer and user
     • One way value flow
     • Firm is the Key influencer
   • Part of the development
     • Reciprocal value flow
     • Customer are the key influencer
2. Competition Airbnb vs. Hilton
   • competition within defined industries 
     • clear destinction between partners and competitior
   • Competition across fluid industries
     • Partner and competitor
3. Data  
   • Patient data Roche
     • no tracking of data of individual patients
     • vs. data analysis specified and target groups
   • General
     • Challenge of data is storing and managing
     • vs. Challenge data is turning into valuable information
4. Innovation
   • General (Indian Farmer)
     • Dicision mad based on intuition and seni ority
     • Decision made on testing and validating 
5. Value
   • Roche
     • mass production/standarized products
     • vs. individual medicine 
   • General
     • Value proposition difined by industry
     • vs. value proposition defined by changing customer value

1.Customer

The customers aren`t yet a aggregation of Actors, but a connected network of individuals. Mass marketing without response is getting pretty useless.

E.g. Reviews for Hotels are much more important than other advertisements

2.Competition

A supplier could ve your competitor tommorrow. Why not collaborate with competitors to compete 5.complete new market entrance?

E. g. Hotelindustrie vs. AIRBNB

3.Data

Datas could have tommorow same worth than Brands. Connecting right datas helps to improve service in real time.

e.g. Ceasars casino.

4.Innovation

Possibility to get feedback immidiatly and to fail earlier.

e. g. improve income of indian farmers 10 %

• Ebay
• Information Internet
• SMS System about market prices

5.Value

What added value can I create for my custumers. Does other solutions substitude my values

e.g. Museum, Agfa

Loundry Machine Producer – chemistry supplier

Exchange Data to control customer and give him total control

Offering service „pay per wash“

Dishwashing mashine

• Online control
  • Cycles
  • Service
  • Consumtion
    • Offering new machine