Managing Firms in The Digital Word

MEM509-Information Technology Management
Dr. Issam KRIMI
Email : issam.krimi@adu.ac.ae
Syllabus presentation
Project: Technology serving African companies
Identify a country of particular interest to you
• Analyze and assess the digital maturity and digital infrastructure in the chosen country
• Conduct a PESTEL analysis for the external environement
https://www.afdb.org/en/knowledge/statistics
https://www.statista.com/ https://data.worldbank.org/
Project: Emerging Africa
You will be assigned an African company operating in the chosen country
Analyze its business strategy and business model Analyze its value chain
Choose one of the disruptive technologies

Managing firms in the digital era
Sources :
Information Systems Today: Managing in a Digital Word, Global Edition, 7th Edition, J. Valacich, and C. Schneider.
Management Information Systems: Managing the Digital Firm, 17th Edition (Pearson), KC. Laudon and JP. Laudon.
Technology Today: Trends and Challenges
Information Is a Valuable
Resource
• We can now strategically gather and manage

information in ways that were never before possible
Five IT Megatrends in the Information Age
Augmented Reality (AR) and Virtual Reality (VR)
Artificial Intelligence (AI) and

Quantum Computing
Machine Learning (ML)
Edge Computing
Blockchain
The influence of emerging technologies and social events

Mobile Computing : is it
still an emerging
technology?
• Mobile computing is not considered anymore an
emerging tech but there are many emerging tech
within the realm of M.C
• 5G/6G, AR/VR, Edge C., mHealth, Wallet Sol.
• Implications:
• Increased collaboration
• The ability to manage business in real time
• New ways to reach customers
Social Media
• Over 2.606 million (and
growing) Facebook users
share status updates or
pictures with friends and
family
• Over 1.719 million active
users on TikTok reshaping
the digital marketing world
• Organizations use social
media to encourage
employee collaboration or
to connect with their
customers
Internet of Things
• Devices have embedded computers and sensors,

enabling connectivity over the Internet
• Back in 2008, more devices were connected to the
Internet than people living on earth
• Overall enterprise IoT spending grew 21.5% in 2022
to $201 billion.
• The Internet of everything?
Cloud
Computing
• Web technologies enable using the
Internet as the platform for
applications and data
• Many regard cloud computing as
the beginning of the “fourth wave”
• Applications that used to be
installed on individual computers
are increasingly kept in the cloud
• e.g., Gmail, Google Docs,
Google Calendar
Big Data
• 463 ZB (463 trillion GB) of data will be created every day by 2025
• Big Data is going to be worth $229.4 billion by 2025.
Companies in the Information Age economy are creating value not from people, but from data
Key Driving Impacts of
Globalization
• Economic Interdependence
• International trade, global finance,
labor outsourcing
• Cultural exchange
• Multiculturalism from media,
international travel, ethnic foods
• Technology transfer
• Computing and communication
platforms, global patent and
copyright laws
The Rise of Technology
and IS Outsourcing:
Key Reasons for
Outsourcing
• To reduce or control costs

• To free up internal resources
• To gain access to world-class capabilities
• To increase the revenue potential of the
organization
• To reduce time to market
• To increase process efficiencies
• To be able to focus on core activities
• To source specific capabilities or skills
Opportunities of Operating in the Digital
World
Falling Transportation Costs
Cost efficiency
• Shipping a bottle of Pepsi from Australia to Europe costs only a few cents
Falling Telecommunication Costs

Cost efficiency
• These have helped create shared perspectives of behavior, desirable goods, and even forms of government
Growth Reaching Global Markets
Accessing a Global Labor Pool

Growth
• Highly skilled or low-cost labor pools exist in many countries that are now economically accessible
Challenges of Operating in the Digital World
Government Geo-economic Cultural

Political instability Time zones, infrastructure Working with, providing services to
Regulatory: taxes/tariffs, Workforce: welfare, demographics,
import/export restrictions expertise
Definitions and concepts
Information technology is a network of devices, linked with each other, which

process data into useful and meaningful information. Information technology,
therefore, has six broad functions around which innovation is driven.
Capture Transmit Store Retrieval Manipulation Vizualisation
Data : raw facts that describe the characteristic of an event
Information - data converted into a meaningful and useful

context
Definitions and concepts
What IT can do
• Accepting and storing data and information
• Performing mathematical calculations
• Applying logic to make decisions
• Retrieving, displaying, and sending information
• Consistently repeating the above actions many times
Using what?
• Hardware: the electronic and mechanical components you can see and
touch
• Software: the set of instructions that direct the hardware
• Network technology: increases the power of IT by allowing the sharing of
resource
Information Systems in Global Business
Information technology is everywhere in business && Anyone involved in business must

understand technology
• Customer service: click-to-talk, call scripting, auto answering, call

centers
• Finance: accounting packages
• Sales and marketing: campaign management, customer
relationship management
• Operations: supply chain management
• Human resources: software to track employees at risk of leaving
Technology isn’t an industry, it’s a method of transforming the culture and economics of
existing systems and institutions.
https://sloanreview.mit.edu/article/every-company-is-a-tech-company-and-tech-is-no-longer-an-industry/
Information Technology’s Impact on Business Operations

Which types of IT/IS can be used to meet these types of goals?

• Reduce costs/ improve productivity: supply chain management, enterprise
resource planning
• Improve customer satisfaction/loyalty: customer relationship management,
loyalty programs
• Create competitive advantage: business intelligence/data warehousing
• Generate growth: sales management systems
• Streamline supply chain: demand planning software
• Global expansion: e-business
• Organizations typically operate by

functional areas or independent,
functional silos
• Functional areas are
interdependent
• They require information
from around the organization
to operate

• For an organization to succeed, every department or functional area must
work together sharing common information and not be a “silo.”
• Information technology can enable departments to more efficiently and
effectively perform their business operations.
Information technology is an important enabler of business success and innovation. IT

does not guarantee success!
London Heathrow—The failure FedEx—The success

Baggage handling system: original cost of $ 38 billion family of companies—largest
$500 million express transportation company
Disaster on opening day, costing $ 50 million “Information hub for business where
due to over 28,000 bags being misrouted managing information is the business
Nicholas Carr article—“IT Doesn’t Matter”

• IT no longer a source of advantage on the firm level
• Companies should focus IT on cost reduction and risk mitigation
Many experts disagree with his arguments
• Don Tapscott—“The Engine That Drives Success: The Best
Companies Have the Best Business Models Because They Have
the Best IT Strategies”
Many successful companies use IT to support a unique
business strategy
Information Technology a nearby new functional area
Recent IT strategic positions include:

• Chief Information Officer (CIO)
• Chief Technology Officer (CTO)
• Chief Security Officer (CSO)
• Chief Privacy Officer (CPO)
• Chief Knowledge Office (CKO)
Chief Information Officer (CIO) – oversees all uses of IT and ensures the
strategic alignment of IT with business goals and objectives
Broad CIO functions include:
Manager – ensuring the delivery of all IT projects, on time and within budget
Leader – ensuring the strategic vision of IT is in line with the strategic vision of the
organization
Communicator – building and maintaining strong executive relationships

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MEM509-Information Technology Management

Dr. Issam KRIMI

You will be assigned an African company operating in the chosen country

Choose one of the disruptive technologies

• We can now strategically gather and manage

Augmented Reality (AR) and Virtual Reality (VR)

Artificial Intelligence (AI) and

The influence of emerging technologies and social events

• Devices have embedded computers and sensors,

• To reduce or control costs

Falling Telecommunication Costs

Growth Reaching Global Markets

Accessing a Global Labor Pool

Government Geo-economic Cultural

Information technology is a network of devices, linked with each other, which

Capture Transmit Store Retrieval Manipulation Vizualisation

Data : raw facts that describe the characteristic of an event

Information - data converted into a meaningful and useful

Information technology is everywhere in business && Anyone involved in business must

• Customer service: click-to-talk, call scripting, auto answering, call

Information Technology’s Impact on Business Operations

Information Technology’s Impact on Business Operations

Which types of IT/IS can be used to meet these types of goals?

• Organizations typically operate by

Information Technology’s Impact on Business Operations

Information technology is an important enabler of business success and innovation. IT

London Heathrow—The failure FedEx—The success

Information Technology’s Impact on Business Operations

Nicholas Carr article—“IT Doesn’t Matter”

Recent IT strategic positions include:

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