Modern developments in IT

and its Impact on Business Strategy

ByRajesh Kumar

Iyer.A

STRATEGYStrategy is the direction and scope of an organization over the long term: which achieves advantage for the organization through its configuration of resources within a changing environment, to meet the needs of markets and to fulfill stakeholder expectations”

Johnson, Scholes and Whittington - (Exploring corporate strategy)

STRATEGY (CONTD.)Essentially strategy involves setting the future plans of the organization, but it requires a comprehensive understanding of the organization’s:

Resources (such as cash, assets and employees)

Environment (such as markets, political and economic issues, customers and competitors)

Stakeholders (anyone with an interest in the business, such as shareholders, government, etc) expectations

BIG DATA Big data is a term for a collection of data which

is so large that it becomes difficult to store and process using traditional databases and data processing applications.

Big data often also includes more than simply financial information and can involve other organizational data (both internal and external) which is often unstructured

It is estimated that 90% of the information available in the world today has been created in the last few years

BIG DATA EXAMPLES Social network traffic

Web server logs

Satellite imagery

Streamed audio content

Banking transactions

Government documentation

Financial market data

BIG DATA - BENEFITS Driving innovation by reducing the time

taken to answer key business questions and therefore make decisions

Gaining competitive advantage by identifying trends or information that has not been identified by rivals

Improving productivity by identifying waste and inefficiency, or identifying improvements to working procedures

Ford’s modern Hybrid Fusion model of car generates up to 25GB of data per hour and the company is experimenting with the vehicles that produce ten times that amount.

Uses of this data: A computer model has been developed that projects CO2

emissions generated by the fleet of vehicles on roads worldwide for the next 50 years. This helps Ford to balance the fuel economy requirements and environmental considerations

Mathematical models have analyzed millions of possible vehicle combinations to assist in the construction of technological roadmap which has resulted in the development of new features such as Ford Auto Start – Stop

Ford researchers have developed specific tools such as the Ford Fleet Purchase Planner, which analyzes fleet customers’ needs and identifies their optimal vehicle choices

Delivery company UPS equips its delivery vehicles with sensors which monitor data on speed, direction, braking performance and other mechanical aspects of the vehicle.

Uses of this data:

Optimizing performance and routes has led to significant improvements

Over 15 million minutes of idling time were eliminated in one year, saving 103,000 gallons of fuel

1.7 million miles of driving were also eliminated in the same year, saving further 183,000 gallons of fuel

Total savings of more than half a million dollars in the year of implementation

DATA OF DATA GENERATIONNew York Stock Exchange – 1 TB per day

DATA OF DATA GENERATION

Facebook – 30 TB per day

DATA OF DATA GENERATION

Airbus A380 – 30TB per 30 Minutes!

CLOUD COMPUTINGCloud computing, also known as 'on-demand computing', is a kind of Internet-based computing, where shared resources, data and information are provided to computers and other devices on-demand

STORAGE - THEN AND NOW

5 MB in 1956 1 TB in 2015

STORAGE - FUTURE

CLOUD COMPUTING - BENEFITS

Cost Savings: The most significant benefit is saving of capital and associated costs of maintaining an on premises IT infrastructure

Manageability: Cloud computing provides enhanced and simplified IT management and maintenance capabilities through central administration of resources, vendor managed infrastructure and SLA backed agreements

Strategic edge: Cloud computing allows the businesses to forget about technology and focus on its key business activities and objectives.

CLOUD COMPUTING - DISADVANTAGES

Security concerns: Since the entire data have to be trusted with the service providers

Vendor lock in: Once setup, organizations may find it difficult to migrate their services from one vendor to another

Downtime: Business processes may be temporarily suspended since cloud service providers take care of a number of clients each day

THANK YOUI’m not afraid of storms, for I’m learning to sail my ship- Louisa May Alcott