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ISM Grand Finale

Spring 2012

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Course Overview

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Potential to transform every industry Strategic use of technology results in competitive

advantage Value propositions of information to an organization Challenges with IT adoption and ways to overcome

them (best practices) How can IT support managerial decision making? How do you measure IT project success? Dealing with emerging IT trends

Course Lessons

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Current topics◦ Disruptive business models◦ Technology-enabled business opportunities

Babson philosophy◦ ETA (experiment, take action, learn from

mistakes) Babson materials (five new Babson cases

and six peer reviewed Babson faculty articles)

Multi-media case (BizTech) Distance learning demonstration (Wells

Fargo, Telepresence)

This is your time

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User generated Virtual Time and space Global Impacts Knowledge-based Real-time JIT learning Technology mediated (contingency

planning)

New reality

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100% change in focus from Enterprise to Entrepreneur

Personal digital strategy Guest speakers (Tom Connolly Biz-Tech– the

pitch; Evan Korzon, Nick Herbold Scavenger– the idea; Mike Volpe Hubspot – SM marketing; Jeff Tackle Abt Associates – emerging technology)

Technology is about people first

All about you

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For your resume

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MIS9530:  Competing on Analytics MIS7557: Clouds, Platforms and Networks A Business Primer on Mobile Apps MBA7515: Enterprise 2.0 Technology Entrepreneurship Field Trip (NY,

SF, Bos)

How can you get more?

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Apply the appropriate framework:

Begin with strategy

Opportunity/Challenge

People, Process, Technology

Outcomes

The Analysis:

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Scanning &

Discovery

Design

Experimentation

Collaboration

Monitoring

Implementing

Scaling & building

Multi-sided markets

Platform

Members (21.7 million domestic) Q1, 2012 (1.9 million international)

Producer (content, 100,000 titles)• Media companies

Complementor• Software developers• Connecting to TV

Deliver apps Support development

Core benefits

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Netflix achieves near-perfect inventory thru IT: Subscriber queue helps forecast demand

Web site•Subscriber Queue•Recommendation system (Cinematch)•Social networking

Distribution Centers•Inventory Management System

Movie Publishers

•Movie titles

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Porter’s Five Forces Analysis

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The Five Major Elements of Strategy

Arenas

Staging Vehicles

Differentiators

EconomicLogic

Where will we be active?(and with how much emphasis?)•Which product categories?•Which market segments?•Which geographic areas?•Which core technologies?•Which value-creation stages?

How will we get there?•Internal development?•Joint ventures?•Licensing/franchising?•Acquisition?

How will we win?•Image?•Customization?•Price?•Styling?•Product reliability?

What will be our speed and sequence of moves?Speed of expansion?•Sequence of initiatives?

How will we obtain our returns?•Lowest costs through scale advantages?•Lowest costs through scope and replication advantages?•Premium prices due to unmatchable service?•Premium prices due to proprietary product features?

(Hambrick and Fredrickson,2001)

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IT Stack

Hardware

Software

Intelligence/Services

Cloud

Users

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Social

Gaming BehavioralChange Layer

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Customer intimacy: Continually tailor and shape products and services to fit an increasingly fine definition of the customer. They seek a deep understanding of their customer’s business in order to tailor offerings to meet each customer’s specific needs.

Operational excellence: Provide consumers with products at the lowest total cost. The product line is standardized and limited, with highly reliable products

Product leadership: Entails producing an ongoing stream of cutting-edge products or services.

Value disciplines

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Goals Technology Metrics

Take Away Manage your online reputation like it matters!

Weak ties can help with innovation and discovery

Personal Social Media Strategy

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An organizational capability is a firm’s capacity to deploy resources for a desired end result

Organizational Capability

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Business strategy: challenge/opportunity

People/Organization◦ Decision rights◦ Structure◦ Roles◦ Incentives◦ Metrics

Process◦ Decision-making◦ Transaction processing◦ Customer relationship management

Technology◦ Enterprise IT◦ Web 2.0◦ Analytics/Business Intelligence

◦ Measure Outcomes

Capability building using IT

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People/Organizational◦ CIO/leadership◦ CIO organization◦ Analysts

Technology◦ Database◦ BI

Process◦ Operational efficiencyTake Away Treat data as an asset

Data

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People/Organizational◦ Product innovation; Knowledge sharing barriers:

organizational structure (silos), unstructured knowledge, newcomers have no social network

Technology◦ KM◦ Web 2.0: tagging of unstructured content◦ KM strategies: codification and personalization

Process◦ Technology adoption◦ Metrics for successTake Away Justifying investment in KM; it is the social

network; technology mediated networks and innovativeness

Booz Allen

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People/Organizational◦ Strong leader: Reed Hastings; customer intimacy

Technology◦ Collaborative filtering to recommend movies◦ Customer queue to manage supply

Process◦ Customer engagement; supply chain

optimization; crowd sourcingTake Away scale the personal experience; IT

impacts operations and customer interaction; late entrant can win using novel IT

Netflix

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People/Organizational◦ Solvers◦ Seekers

Technology◦ Crowdsourcing

Process◦ Managing payments◦ Alignment, measurement (IT Project Prioritization)Take Away Alignment is a process

Global Work

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People/Organizational◦ Product leadership; 70/20/10 in terms of how time is

spent ◦ Analytics/experimentation culture; ◦ Strong leadership

Technology◦ Adwords◦ Service provider◦ Search algorithm

Process◦ InnovationTake Away Adwords and Analytics support

experimentation

Google

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People/Organizational◦ Focus on customer engagement

Technology◦ Development platform◦ Social layer

Process◦ Customer relationships, measurementTake Away Power of a social graph; social

referrals are the best

Facebook

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People/Organizational◦ Global Talent Management; Unique skills to manage social

media internal as well as externally (Inside-out approach)◦ Corporate communications strategy and polices

Technology◦ Web 2.0-◦ Jive Software (one single platform for discussion boards,

blogs, wikis, employee profiles, expertise location) Process

◦ Internal employee Engagement as well as Customer engagement

Take Away Policies and procedures can be adopted and people will follow them. ROI can be measured through “philosophies, experimentation is critical

EMC

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9th May. (9-11) Applied, open notes, open book, no Internet, no

network effects (just you)! We will supply the context (short case study). Analysis based on:

-business strategy link with technology strategy - decision-making - implementation/adoption/change - emerging technologies-disruptive business models- depth of action plan/ recommendations - 2 hours

Final Exam – 30%