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Learning Objectives Learning Objectives

1. Understand the genesis of the enterprise systems (ES) trend and why so
many organizations employ them. Articulate their principal benefits and 5. Define the term customer relationship management (CRM) and articulate
risks. both its benefits and limitations.

2. Define the term supply chain management and explain the role that 6. Explain how the CRM and BI trends relate to one another.
supply chain management applications play in modern organizations.
7. Understand the principal security threats to modern organizations, both
3. Describe the term knowledge management, categorize the different types internal and external, and the principal safeguards available to mitigate
of knowledge commonly found in organizations, and explain why these risks.
organizations feel the need to employ knowledge management
applications. 8. Understand the basic IT risk management processes, including risk
assessment, risk analysis, and risk mitigation.
4. Define the terms business intelligence (BI) and BI infrastructure. Be able
to identify and describe the role of the technologies that comprise a 9. Define ethics, apply the concept of ethical behavior to information
modern BI infrastructure. systems decisions, and be able to articulate how general and functional
managers can help ensure that their organization behaves ethically.

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Learning Objectives Information System Trends

10. Be able to define what the Internet is, its defining characteristics, and the principal services it
makes available to users.

11. Understand the basic principles of network economics, including the sources of value in
networks and the definitions of physical and virtual networks. Apply these concepts to strategy
and managerial decision making.

12. Differentiate disruptive and sustaining technologies and draw implications for decision making
What managers need to know about
in organizations faced with the emergence of disruptive technologies.
the emerging and enduring trends in
13. Be able to define and differentiate the terms electronic commerce and electronic business and
provide examples of each. Information Systems management
14. Identify the enablers of electronic commerce trends.

15. Categorize electronic commerce phenomena on several important dimensions.

16. Define the terms business model, and revenue model. Identify the principal revenue models
employed in electronic commerce.

17. Describe the implications of electronic commerce for both established firms and new entrants.

18. Discuss some of the more relevant future electronic commerce and electronic business trends.

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Enterprise Systems Enterprise Systems

• In the early 1990s developers realized • Provide native integration
the limitations of the functional approach • Attempt to support all components of the firm’s
IT infrastructure.
• This led to a class of standardized • Defining characteristics:
software applications that would enable – Modular
and support integrated business – Integrated
processes – Software applications
– Span all organizational functions
• These applications are known as – Rely on one database at the core.
Enterprise Systems (ESs) • Custom developed or purchased off-the-shelf

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Characteristics of ESs Characteristics of ESs

• Modularity • Application Integration:

– Enables the organization to decide which – Events in one module automatically trigger
functionalities to enable and which ones not to events in one or more separate modules
– Allows for flexibility at the design stage • Data Integration
– No need to pay for unnecessary components – Data is stored in one
central database

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Characteristics of ESs Advantages of Enterprise Systems

• Configurable • Efficiency
– Enterprise Systems are parameterized – ESs are able to rein in complex, generally
– Firms choose among a predefined set of hard-to-mange and support legacy IT
configuration options during the infrastructures
implementation of the application
– Potential to reduce direct costs
– The firm can extend the capabilities of the
• Example: No redundant data entry
standard application by creating “bolt-on
modules” – Potential to reduce indirect costs by
– This customization process further tailors the streamlining business processes and
ES to the specific needs of the organization operations

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Advantages of Enterprise Systems Advantages of Enterprise Systems

• Responsiveness • Adaptability
– ESs can deliver improvements in the firm’s – Offer a degree of customizability rarely
ability to respond to customers and market offered by off-the-shelf applications
demands – Achieved through the use of configuration
• Knowledge Infusion tables and bolt-on functionality
– The application embeds the state of the art in
industry practice
– ES can be used to update obsolete business
processes within the firm

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Limitations of Enterprise Systems Limitations of Enterprise Systems

• Standardization and Flexibility • Limitations of best practice software

– Organizations are encouraged to implement as close – It will force the firm to adapt
to a standard version of the software as possible.
– So called “Vanilla” implementation ensure that firms
– It is unclear how “best practices” are defined
take advantage of the economies of scale created by – The “best” practice may differ for different
the vendor firms
– But flexibility is sacrificed by this approach – Its not enough to implement a software
– ESs are often referred to as software concrete program to enact a new practice
• Much of the adaptability only occurs during the
implementation process. – A firm’s own best practices may not be
• Once set, ESs are difficult to change supported by the new ES

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Limitations of Enterprise Systems Supply Chain Management

• Strategic Clash • The set of coordinated entities that

– A firm will have to choose amongst the set of
contribute to move a product or service
business processes supported by the from its production to its consumption
software – Upstream
– What if one of your unique and differentiating Supply Chain
practices is not supported by the ES? – Downstream
Supply Chain

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Modern Supply Chain Management Supply Chain Management

• Tight linkages between upstream (i.e.,

suppliers) and downstream firms (i.e.,
customers)
• Inter-organizational systems increasingly
supported by the Internet
• Integration with enterprise systems
• Increasing attention to IT-enabled supply
chain management

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Supply Chain Management Trends Enterprise Application Integration

• Radiofrequency Identification (RFID) • “Re-architecting” existing programs so that

• A new frontier in SCM: an intermediate layer, termed middleware,
is developed between the applications and
– No line of sight requirements the databases
– Embedding potential
• Designed to make calls to the middleware
– Writing capabilities layer rather than the other applications
– Storage capacity • Streamlines maintenance process
– Speed up the receiving process because changes to an application will not
– Improve monitoring and control of inventories affect all the interfaces connected to it

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Typical Systems Infrastructure The EAI Approach

ERP Legacy
Application

Middleware
Legacy SCM
Application

Database Database
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Knowledge Knowledge

• Knowing What: Based on the ability to • Categories of Knowledge

collect, categorize, and assimilate – Explicit Knowledge
information • Can be articulated
• Knowing How: Ability to recognize or • Codified
• Transferred with relative ease.
create the sequence of steps that are
– Tacit Knowledge
needed to complete a task
• The type of knowledge that individuals possess but
• Knowing Why: Based on understanding find difficult to articulate
of cause-effect relationships

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Knowledge Management Creating Knowledge

• Set of activities and processes used to: • Knowledge creation is the first stage in
– Create
knowledge management:
– Codify
– Disseminate knowledge in the organization – Generate new information
• IT is a key component and enabler – Devise solutions to existing problems
• Aspects of knowledge management: – Identify new explanations for events
– Creating
– Capturing
– Storing
– Disseminating

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Capturing and Storing Knowledge Disseminating Knowledge

• Enables the organization to: • The last phase in a knowledge

– Codify new knowledge management initiative
– Maintain an organizational memory • When knowledge is formatted and easily
• Content Management Systems (CMSs): accessible, dramatic improvements in
– Applications used to capture and store effectiveness and efficiency can be
knowledge achieved.
– A knowledge repository is a central location
and search point for relevant knowledge

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Business Intelligence Business Intelligence

• The ability to gather and make sense of
information about your business
– A set of techniques
– Processes
– Technologies
• Designed to enable managers to:
– Gain superior insight about the organization
– Gain superior understanding of the business
– Make better decisions

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Components of BI Components of BI

• Data Warehouse: • Data Mart:

– A data repository – A scaled-down version of a data warehouse
– Collects and consolidates data – Focuses on the needs of a specific audience
– Multiple sources – Smaller in scope, thus easier to build
• Characteristics: • Online Analytical Processing (OLAP):
– Large in size – User-driven
– Large in scope – Enables a knowledge worker to easily and
– Enabling data integration selectively extract and view data from
– Designed for analytics analytical databases

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Customer Relationship
Components of BI
Management
• Data Mining: • CRM is a strategic initiative, not a technology
– The process of automatically discovering non-obvious • CRM relies on transactional data and is
relationships in large databases. designed to help the firm learn about customers
– Used to analyze historical information
• Designed to use data to make inferences about
– Machine-driven
customer:
• Possible Patterns: – Behaviors
– Associations – Needs
– Sequences
• The objective is to create value for the firm by
– Classifications
optimizing the relationship with each customer
– Forecasting

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CRM Infrastructure The limitations of CRM

• CRM is firm centric

– Only relies on transactional and behavioral
data pertaining to the interactions of the
customer with the firm
• Limited predictive ability
– Some events are unforeseeable and only the
customer knows about their occurrence

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Customer Managed Interactions Customer Managed Interactions

• In CMIs customer data is stored and • CMI is not only about the lowest prices
managed by the customer – CMI completion may depend on lower price
• CMI solves the limitations of CRM – More likely will stem from the quality of the
initiatives: recommendation
– The customer’s personal data warehouse
holds complete historical information
• CMI technology
– Future events are more likely known – The Internet provides the infrastructure for
data transfer
– Inferences are more precise
– Falling costs of storage make personal data
• Infomediaries may maintain customers’
warehouses a feasible alternative
data warehouses

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Security, Privacy, and Ethics Why to Safeguard Customer Data

Why and what managers need to know

about IT risk management, privacy, and
information systems ethics.

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IT Risk Management and Security Security: Not an IT Problem

• Security should be a management priority, not
• IT Risk Management
an IT problem
– The process of identifying and measuring
• Security is a negative deliverable
information systems security risks
– Produces no revenues
– Objective: To devise the optimal risk – Creates no efficiencies
mitigation strategy
• Security is difficult to fund
• Security – IT departments have limited budgets
– The set of defenses put in place to mitigate – They should not be left to fund security measures
threats to technology infrastructure and data • The Trade-off:
resources – Purchase more security or accept higher risks?

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Risk Assessment Risk Mitigation

• Audit the current resources • The process of matching the appropriate
• Map the current state of information response to the security threats your firm
systems security in the organization identified
• The audit will: • Designed to help manage the trade-off
– Expose vulnerabilities between the degree of desired security
– Provide the basis for risk analysis and the investment necessary to achieve it
• Risk Analysis:
– The process of quantifying the risks identifies
in the audit

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Three Risk Mitigation Strategies Cost/Security Trade-Offs

• Risk Acceptance Total Cost

– Not investing in countermeasures and not reducing

the security risk
– Consciously taking the risk of security breach
• Risk Reduction Anticipation
– Actively investing in the safeguards designed to Cost
Cost

mitigate security threats

– Consciously paying for security protection
• Risk Transference
– Passing a potion (or all) of the risks associated with
security to a third party Failure Cost
– Consciously paying for someone else to assume the
risk
Degree of security

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Internal Threats The External Threats

• Intentional Malicious Behavior • Intrusion Threat
– Typically associated with disgruntled or ill- – An unauthorized attacker gains access to
willed employees organizational IT resources
– Example: A marketing employee selling • Social Engineering
customers’ e-mail addresses to spammers – Lying to and deceiving legitimate users so that they
• Careless Behavior divulge restricted or private information
– Associated with ignorance of or disinterest in • Phishing
security problems – Sending official sounding spam from known
– Example: Failing to destroy sensitive data institutions and asking individuals to confirm private
according to planned schedules data in an effort to capture the data

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The External Threats The External Threats

• Security Weaknesses • Malicious Code

– Exploiting weaknesses in the software – Any software code expressly designed to
infrastructure of the organization under attack cause damage to IT assets.
– Example: Bugs that enable unauthorized • Viruses
access – Malicious code that spreads by attaching itself
• Backdoors to other, legitimate, executable programs.
– Code expressly designed into software – After infecting a machine, a harmful set of
programs to allow access to the application by actions, know as the payload, are performed
circumventing password protection

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Malicious Code Malicious Code

• Trojan Horses • Spyware
– A computer program that claims to, and sometimes – Software that, unbeknownst to the owner of
does, deliver useful functionality
the computer:
– Delivers a hidden, malicious payload, after installation
• Monitors behavior
• Worms • Collects information
– Malicious code that exploits security holes in network • Either transfers this information to a third party or
software to self-replicate
• Performs unwanted operations
– Does not deliver a payload
– Diverts resources and often slow down a
– Generates enough network traffic to slow or bring a
network down user’s legitimate work

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The External Threats Responding to Security Threats

• Denial-of-Service Attack • Internal Security Threats

– A digital assault carried out over a computer – Security Policies
network with the objective of overwhelming an • Spell out what the organization believes are the
behaviors that individual employees within the firm
online service so as to force it offline. should follow in order to minimize security risks
– Can be used to divert attention allowing the • They should specify:
intruder to create a backdoor to be exploited – Password standards
– User right
later
– Legitimate uses of portable devices
– The firm should audit the policies to ensure
compliance

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Responding to Security Threats Responding to Security Threats

• External Security Threats – Malware

– Intrusion • Safeguarding against malware requires that the
firm’s IT professionals install detection software
• The cornerstone of securing against intrusion is
the use of passwords • Training and Policies are also necessary
• Firewalls can be used to screen and manage – Denial-of-Service Attacks
traffic in and out of a computer network • Preventing a denial-of-service attack is very
– Only as strong as the weakest link difficult
• The Encryption process scrambles content so • It is difficult to identify the location of the attack
that it is rendered unreadable

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Managing Security:
Privacy
Overall Guidelines
• Have a plan and specify responsibilities
• The ability of individuals to control the
– Who should be contacted in an emergency?
– What should the first reaction measures be?
terms and conditions under which their
personal information is collected,
• Revisit often
– New technologies should be proactively addressed
managed, and utilized.
• Develop a mitigation plan • Private information can be traced back to
– Determine how the attack took place the individual
– Assess the damage • Privacy subsumes security
• Waiting for a crisis to take these decisions and
develop policy is too late!

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Privacy Risks Privacy Risks

• Data Management Risks
• Function Creep
– It is increasingly simple, and cost effective, to merge
– Occurs when data collected for a stated or data repositories
implied purpose are then reused for other, – IT creates pressure for, and the risk of, function creep
unrelated objectives. if not managed carefully
• Proliferating Data Sources • The Legal Landscape
– New technological advances and devices – Currently, technology evolution outpaces legal
development
generate more data than ever
– The internet has all but destroyed traditional
– This proliferation creates opportunities but geographical boundaries
also many risks
• Privacy management is not an IT job

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Managing Privacy Fair Information Practice Principles

• Fair Information Practice Principles • Fair Information Practice Principles

– Access
– Notice • The right of individuals to be able to access their information
• The right of individuals to be informed when their • The right of individuals to correct any errors that may have
personal data is being collected occurred in their records.
• The right of individuals to be informed about how – Security
• The responsibility of the firm that houses private information
their data is or will be used. to ensure its safekeeping and to protect it from unauthorized
– Choice access.

• The ability of individuals to be informed of, and – Enforcement

• The responsibility of the organizations that collect and use
object to, function creep whether within one firm or private information to develop enforceable procedure to
across firms who share information. ensure that the above principals are upheld.

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Protecting Privacy Ethics

• The discipline dealing with what is good

• Say What You Do and bad and with moral duty and
obligation
• Do What You Say • The problem:
– Ethical choices are rarely straightforward
– Ethical choices typically engender multiple
• Be Able to Prove It sub-optimal options

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Enabling IS Ethics Emerging Issues

• Developing a culture of ethical decision

“The information you can derive from e-commerce is as
making is critical interesting as the commerce itself.”
• Establish an information systems ethics
code of conduct that: Andy Cohen, former Senior Vice President of Sales and Marketing at Instill

– Identifies the principles of ethical information

system use for your organization
– Identifies the firm’s formal stance on ethics
• Apply the principle of harm minimization

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Internet Characteristics of Internet

• An infrastructure upon which • Distributed ownership: Different portions of the
many services are delivered Internet are owned by different entities.
• Multiplicity of devices: The Internet consists of
• The worldwide, publicly millions of smaller digital networks, a collection
accessible system of of digital devices (nodes).
interconnected computer • Open standards: The agreed upon set of rules
networks that transmit data by or conventions governing communication among
packet switching using the Internet nodes are freely available to everyone.
standard Internet Protocol • The Internet is rapidly evolving.
– Network and grid computing
• The Net the Web – Wired and wireless connections of a range of
intelligent devices

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Network Economics Types of Networks

• How is value created in networks? • Physical networks: the nodes of the

network are connected by physical links
• Value in scarcity: The value of a good is a – Telephone network
function of its limited availability – Railroad network
• Value in plentitude: The value of a network • Virtual network: the connections between
is a function of the number of connected network nodes are intangible and invisible,
nodes such as people.
– iTunes network
– Skype network
– eBay network

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Virtual Networks Implications of Network Economics

• A virtual network is generally sponsored • Network effects occur in the presence of
technology standards, virtual networks and
by an organization or technology that communities of interest.
enables it, controls access to it, and • It is critical to be an innovator in the market of
manages its evolution. digital products delivered over the Internet
• Value of the virtual network: • Customers will pick a network, not a product or a
service provider.
– Shared information
• Sponsoring a dominant network provides
– Shared expertise competitive advantage.
• The value of the network for its members • The steeper the costs associated with being a
is a function of its size (the number of member of competing networks, the more
valuable it is to be able to control and retain
nodes in the same network). ownership of the network.

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Information in Networks Internet Changes Everything?

• Physical carriers of information goods • The debate

often prevent information goods from – The Internet is the last stage in the ongoing
behaving like information goods evolution of information technology.
– The Internet a force of social change that
goes far beyond technology.

• Network economy provides new

opportunity to firms that are able to take
advantage of the changes.

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Electronic Commerce: New Ways

of Doing Business eCommerce and eBusiness
• Electronic commerce
– An online exchange of value
– The process of distributing, buying, selling,
marketing, and servicing products and
services over computer networks such as the
Developing a sound grounding Internet.
in electronic commerce • Electronic business
concepts and vocabulary – The use of Internet technologies and other
advanced IT to enable business processes
and operations.

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The Enablers Categorizing eCommerce Initiatives

• Affordable computing equipment • Categorizing ventures by transaction type

– Business-to-Consumer (B2C)
• Access to the Internet – Business-to-Business (B2B)
• Ease of use – Consumer-to-Consumer (C2C)
– Consumer-to-Business (C2B)
• Open standards – eGovernment
• Categorizing ventures by company structure
– Bricks and mortar
– Bricks and clicks
– Pure play

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Business-to-Consumer (B2C) Business-to-Business (B2B)

• Business-to-consumer transactions: • Businesses-to-business transactions: Two

Involve a for-profit organization on one or more business entities take part in the
side and the end-consumer on the other. transaction.
• Examples: • The transactions can range from one-time
– Amazon.com interactions to unique and highly tailored
– Target.com relationship between two firms.
– Edmunds.com • Example: Premier Pages of Dell.com
• The most visible kind of eCommerce.

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Consumer-to-Consumer (C2C) Consumer-to-Business (C2B)

• Consumer-to-consumer transactions: • Consumer-to-business transactions:

Enable individual consumers to interact Individuals transact with business
and transact directly. organizations not as buyers of goods and
• Example: services, but as suppliers.
– eBay, Inc • Example:
– YouTube – eLance.com
– mySpace
– Yahoo! Answers

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eGovernment Bricks and Mortar

• Electronic government: Transactions • Bricks and mortar: “Traditional”
involving legislative and administrative organizations that have physical
institutions. operations and locations and don’t provide
• eGovernment transaction can occur with their services exclusively through the
individual citizens, businesses or other Internet.
governments.
• Example: General Electric
• Example:
– Electronic filing of income tax
– Electronic voting

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Bricks and Clicks Pure Play

• Bricks and clicks: Organizations that have hybrid • Pure play: Firms with no stores providing their
operations services exclusively through the Internet.
• Also known as click and mortar • Example:
– Google
• Two approaches
– Amazon.com
– Developing independent ventures to take advantage
– Yahoo!
of the opportunities, and capital, available to online
ventures
– Running the online channel as part of the bricks and
mortar operations in a highly integrated fashion No stores ≠ No physical operations

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Business Models A New Business Model

• A business model
– Captures the firm’s concept and value proposition,
– Conveys:
• The market opportunity
• What product or service the firm offers
• What strategy the firm will follow to seek a dominant position
– Identifies organizational capabilities the firm plans to
leverage to turn the concept into reality.
• The network economy offered opportunity for
new business models.
Priceline.com: name-your-own price model

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Revenue Models Dominant Business Models

• A revenue model specifies how the firm intends • Online retailing
to make money
– Pay for service: The firm offers a product or a service • Infomediaries
for sale • Content providers
– Subscription: Customers pay for the right to access
the content • Online communities
– Advertisement support: The firm makes its content or
service free for a large audience and sells access to • Exchanges
its audience to interested advertisers • Infrastructure providers
– Affiliate: The firm generates revenue from a third-
party based on traffic it send to the partner web site.

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Online Retailing Infomediaries

• Takes control of inventory it then resells at • Information intermediaries:

a profit. – Use the Internet to provide specialized information on
behalf of product or service providers.
• Fulfillment is a critical capability for these – Do not sell the goods and services or take ownership
organizations. of inventory.
• Revenue model: pay for service • Example:
– Consumer electronics: MySimon.com
• Example:
– Travel: Kayak.com
– Pure play: Buy.com – Autos: Edmunds.com
– Bricks and clicks: Stapels.com

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Content Providers Online Communities

• Content providers develop and publish content. • A group of people
• Sources of contents brought together by a
– Owned: Generated by the organization’s staff common interest or goal.
– Not owned: User-generated
• Revenue model: ad supported, subscription, pay • The community is virtual
per download. and alleviates the
• Example: physical constraint.
– News: Reuters.com
– Current information: Eonline.com • Example:
– Historical and reference information: Britannica.com
– Yahoo! Answers
– Travel information and tips: EpicTrip.com

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Exchanges Infrastructure Providers

• Exchanges: Create a market-place for buyers • Companies that have been able to create value
and sellers to come together and transact. by developing and managing the infrastructure
• Provides a “market making” of electronic commerce.
• Compensated with fees, commission on sales, • Revenue model: pay for service
or consulting fees. • Example:
• Example: – Hardware companies managing the Internet
– eBay backbone: MCI WorldCom
– uBid.com – Internet Service Providers (ISP) enabling access to
the Internet and its services: AOL
– FreeMarket
– Instance payment service companies: PayPal

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eCommerce Implications Trends in Technological Innovation

• Disintermediation: Shortening the distribution chain by • Web 2.0 :
eliminating intermediaries and establishing direct – Free
relationship with customers – Easy to use
– Less structured
• Re-intermediation: Creating opportunities for new – More interactive.
intermediaries to exist alongside their brick and mortar
• Wiki: Enables simple co-authoring and editing of Web
counterparts content.
• Market efficiency: Reducing search costs increases • Blogs: Online journals that individuals keep and publishe
difficulty in profiting from strategies rooted in asymmetry on the Web
of information or high search costs • Real Simple Syndication (RSS):
• Channel conflict: The dilemma of firms facing the choice – Enables the creation of web feeds
between disintermediation or re-intermediation – Broadcasted to all subscribers once a trigger event occurs.
• Customer and employee self-service • Tags: Used to structure and categorize the increasing
amount of available user-generated content.

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Trends in Business Innovation Open Source

• Mobile commerce (M-commerce): • Closed Source
– The ability of completing commercial transactions – Proprietary software controlled by a software house
using mobile devices, such as cellular phones. – Prevent users from accessing and modifying the
source code
– Offers the ability to reach consumers in real-time, at
the point of service, based on their current location. – Example: Microsoft Windows

• U-commerce • Open Source license characteristics:

– Free distribution
– The use of ubiquitous networks to support
– Available source code
personalized and uninterrupted communications and
transactions. – Derived works
– No discrimination
– Technology neutrality

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Models of Open Source Advantages of Open Source

• Sponsored Open Source: • Robustness: More robust and more
– Foundations provide support and coordination to reliable than proprietary applications
open source efforts
• Open Source Service:
• Creativity: Harnesses the creativity of
– Free licensing of the software, but charges for
thousands of developers
installation, support, training, and other services • Limited lock-in: Switching costs are lower
• Professional Open Source: than those with proprietary software
– A software house maintains tight control over the
software programs that they sell
• Free License: Open source can generally
be licensed for free

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Disadvantages of Open Source Sustaining Technology

• Technologies that maintain or rejuvenate the current rate
• Unpredictable Costs: There are many potential of performance improvement of the products and
costs along the way (TCO) services that use them.
• Support Varies Widely • A good candidate to replace a previous generation
• Security: because it offers the same set of attributes, but it yields
superior performance.
– Open source code may give an advantage to those
who want to break its security since the code is
available
– But more vulnerabilities may be identified and
corrected for since the code is open
• Compatibility: There is no guarantee about
compatibility with other software

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Disruptive Technology Implications

• The technology offers a different set of attributes
than the technology the firm currently uses in its • Managers should estimate whether the
products disruptive technology will catch up to market
• The performance improvement rate of the needs on the critical performance dimensions
technology is higher than the rate of • The novel set of attributes of the disruptive
improvement demanded by the market technology may become a source of positive
differentiation and increasingly attractive to
potential customers
• Listening attentively to your most aggressive
customers will create a bias toward prompt
adoption of sustaining technology and a
reluctance to buy into disruptive ones

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What to do? What we Learned

1. Understand the genesis of the enterprise systems (ES) trend and why so
• Keep an eye on the emergence of new many organizations employ them. Articulate their principal benefits and
risks.
technologies
2. Define the term supply chain management and explain the role that
• Identify the customers who will appreciate supply chain management applications play in modern organizations.

the attributes of the disruptive technology 3. Describe the term knowledge management, categorize the different types
of knowledge commonly found in organizations, and explain why
• Spin off a new division exclusively organizations feel the need to employ knowledge management
applications.
focusing on the commercialization of 4. Define the terms business intelligence (BI) and BI infrastructure. Be able
products based on the disruptive to identify and describe the role of the technologies that comprise a
modern BI infrastructure.
technology

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What we Learned What we Learned

10. Be able to define what the Internet is, its defining characteristics, and the principal services it
5. Define the term customer relationship management (CRM) and articulate makes available to users.
both its benefits and limitations.
11. Understand the basic principles of network economics, including the sources of value in
6. Explain how the CRM and BI trends relate to one another. networks and the definitions of physical and virtual networks. Apply these concepts to strategy
and managerial decision making.

7. Understand the principal security threats to modern organizations, both 12. Differentiate disruptive and sustaining technologies and draw implications for decision making
internal and external, and the principal safeguards available to mitigate in organizations faced with the emergence of disruptive technologies.
these risks. 13. Be able to define and differentiate the terms electronic commerce and electronic business and
provide examples of each.
8. Understand the basic IT risk management processes, including risk
14. Identify the enablers of electronic commerce trends.
assessment, risk analysis, and risk mitigation.
15. Categorize electronic commerce phenomena on several important dimensions.
9. Define ethics, apply the concept of ethical behavior to information
16. Define the terms business model, and revenue model. Identify the principal revenue models
systems decisions, and be able to articulate how general and functional employed in electronic commerce.
managers can help ensure that their organization behaves ethically.
17. Describe the implications of electronic commerce for both established firms and new entrants.

18. Discuss some of the more relevant future electronic commerce and electronic business trends.

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