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W06
Tertulia:…
Lecture: Digital transformation Trends
Class activity: Simulation Debrief
Class discussion: Based on this week’s readings
Case Presentation: Team Three
Python workshop: None
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• An open discussion about last week digital transformation news

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• Internet of Things, Cybersecurity, and Cloud Computing

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• Accessing computing resources in
ways that are not restricted by
physical configuration or
geographic location.
• Ability to host multiple systems
on a single physical machine
• Allows multiple operating systems
to run on one machine; increases
server utilization rates from 10-15
to 70 percent or higher of capacity

https://www.youtube.com/watch?v=iBI31dmqSX0 8
A model of computing in which computer processing, storage,
software, and other services are provided as a pool of
virtualized resources over a network, primarily the Internet

Data permanently stored in

Firms pay only for the
remote servers, accessed
computing power they use, as
and updated over the
with an electrical utility
Internet by users
https://www.youtube.com/watch?v=M988_fsOSWo 9
 Essential characteristics
• On-demand self-service
• Ubiquitous network access
• Location-independent
resource pooling
• Rapid elasticity
• Measured service

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Infrastructure as a Platform as a Software as a
Service (IaaS) Service (PaaS) Service (SaaS)
Customers use processing, Customers use infrastructure
storage, networking and programming tools to Customers use software
resources to run their develop their own hosted on a vendor’s cloud
information systems applications

Server, Storage, Network, OS,

Server, Storage, Network, OS,
Server, Storage, and Network Middleware, and Packaged
and Middleware
software

Move to it Build with it Use it

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• Number of installed Cloud
workloads,
In million,
By service type,
Global,
2015-2010

https://www.mordorintelligence.com/industry-reports/cloud-services-brokerage-csb-market 12
• Amazon Maintains Lead in the Cloud Market

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TYPE OF PRIVATE CLOUD HYBRID CLOUD PUBLIC CLOUD
CLOUD
DESCRIPTION Cloud infrastructure operated Combination of private Third-party service offering
solely for a single and public cloud services computing, storage, and software
organization and hosted either that remain separate services to multiple customers
internally or externally. entities and that is available to the public
MANAGED BY In-house IT or private third- In-house IT, private host, Third-party service providers
party host third-party providers
USES Companies with stringent Companies requiring Companies without major
privacy and security some in-house control of privacy concerns
requirements IT that are also willing to Companies seeking pay-as-you
Companies that must have assign part of their IT go IT services
control over data sovereignty infrastructures to a public Companies lacking IT resources
cloud and expertise

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123456 123456789 qwerty password 12345

qwerty123 1q2w3e 12345678 111111 1234567890

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https://www.raconteur.net/sponsored/companies-must-act-now-to-defend-against-cyber-attacks 18
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Security Control
Controls are methods, policies, and
Security refers to the policies,
organizational procedures ensuring
procedures, and technical measures
the
used to prevent
,
, , , or
, and
.
.

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 A computer virus Worms A Trojan horse Spyware

A rogue software Independent A software program Applications that

program that attaches computer programs that appears to be install themselves
itself to other software that copy themselves benign but then does surreptitiously on
programs or data files from one computer to something other than computers to monitor
to be executed, other computers over expected. user web-surfing
usually without user a network. activity and serve up
knowledge or advertising.
permission.

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A hacker is an individual who intends to gain unauthorized access to a
computer system by finding weaknesses in the security protections websites
and computer systems employ.

Hacker activities
• system intrusion
• theft of goods and information
• system damage and cybervandalism (the intentional disruption, Defacement, destruction of a website
or corporate information system)

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 Spoofing Sniffing
• Using fake email addresses or • A program that listens in on network
pretending to be someone else. It traffic, allowing hackers to steal
can also involve redirecting a web private information like emails,
link to a different address that company files, and confidential
mimics the intended site. reports from anywhere on the
network.

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 Denial-of-Service (DoS) Attacks
A distributed denial-of-service
is flooding a network server or
(DDoS) attack uses numerous
web server with many thousands
computers to inundate and
of false communications or
overwhelm the network from
requests for services to crash the
many launch points.
network.

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Bogus clicks to drive up pay-
per-clicks

Some companies hire third

parties to fraudulently click on
a competitor’s ads to weaken
them by driving up their
marketing costs

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 Identity theft is a crime where someone uses another person’s
personal information—like social security numbers, driver’s license
numbers, or credit card details—to pretend to be them.
Phishing is when scammers create fake websites or send emails that look
like they’re from trusted businesses to trick users into sharing sensitive
personal information.

Pharming is a type of cyberattack that redirects users to a fake webpage,

even when they enter the correct web address into their browser.

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 Security threats Social Intentional Careless
often originate engineering Malicious Behavior
inside an Behavior
organization • Tricking • Associated with
employees into • Typically ignorance of or
revealing their associated with disinterest in
• Sloppy security passwords by disgruntled or ill- security problems
procedures pretending to be willed employees • i.g., failing to
• User lack of legitimate • i.g., selling destroy sensitive
knowledge members of the customers’ info to data carelessly
company in need spammers
of information

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 General controls apply to all computerized applications and consist of a
combination of hardware, software, and manual procedures that create an
overall control environment.

Implementation

Administrative
Data security
operations
Computer
Hardware
Software
controls

controls

controls

controls

controls

controls
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• An information systems audit examines the firm’s overall security
environment as well as controls governing individual information
systems.

MIKE, THE SECURITY CONSULTANT!

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Ubiquity of Connectivity: Technology Enablers: Awareness, Autonomy, and Layered Architecture:
Actionability:
IoT refers to the growing Improvements in processing power, Devices collect data, process IoT systems operate on three
transmission, and storage have fueled
network of connected devices, the growth of IoT.
it, and make autonomous layers
from household items to decisions, such as self-driving
industrial systems. cars. Connected objects
Autonomy
Central data platforms
Services

Actionability
Awareness

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• IoT is in its early stage of maturity
• Interoperability Issues
• Different platforms and standards create
challenges for fully integrated IoT systems.

Connected objects

Central data platforms

Services

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Use Case-Driven Adoption
• IoT adoption is led by specific use cases like smart
meters, connected cars, and automated inventory.
Leading IoT connectivity technologies
• Wi-Fi, Bluetooth, and Cellular IoT make up nearly 80% of
all IoT connections.
Three major developments in the IoT market
• AI in IoT, Security, and Sustainability.
Future Growth
• IoT devices are expected to grow by 13% in 2024, leading
to 18.8 billion connected devices by 2025.
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• Readings

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The blockchain a distributed database technology that enables
firms and organizations to create and verify transactions on a
network nearly instantaneously without a central authority.

The blockchain maintains a continuously growing list of records

called blocks.

What makes a blockchain system possible and attractive to business

firms is encryption and authentication.

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Block 1
Block
Genesis6
2
3
4
5
Block

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 Block 1
Genesis Block 2 Tampered
Block 3 Tampered
Block 4 Tampered
Block 5 Tampered
Block 6
Block Block 3 Block 4 Block 5 Block 6
0000 6F31 5F85 7R85
4H78 8Y45
8J63 6F31
4G22

Hash: 6F31 Hash: 5F85 Hash: 4H78

7R85 Hash: 8Y45
8J63 Hash: 4G22
6F31 Hash:
Hash:3V58
7T61

Proof Proof Proof Proof

of of of of
Work Work Work Work

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Why is blockchain not considered a disruptive technology despite its potential
to transform industries?

How does the analogy between blockchain and TCP/IP help explain the
expected timeline for blockchain’s widespread adoption?

What are the challenges businesses might face as blockchain becomes more
integrated into economic and social systems?

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Blockchain has the potential to remove intermediaries
like lawyers, brokers, and banks.
What industries or
In which areas would
roles are most How might this shift
it still be difficult to
vulnerable to affect businesses’
eliminate
disruption due to strategies and
intermediaries, and
blockchain workforce structures?
why?
technology?

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 High

Amount of Complexity and Coordination

Substitution Transformation
• Substitutes a business function across • Causes and requires major
many industries transformation of working systems
• Replacing banking systems with • Smart contracts replacing legal
decentralized finance (DeFi) agreements and new economic models
High
Degree of Novelty
Low
Single Use Localization
• Serves a novel function but operates on a
• Serves a single purpose for a single user
localized system
• Bitcoin as an alternative payment
• Private blockchain networks for financial
method
transactions
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 If a company is simply testing blockchain for internal purposes or
Single Use adding bitcoin as a payment option, it is in this stage.

If a business is using blockchain within a limited network (e.g., supply

Localization chain tracking within a few companies), it is in this phase.

If blockchain applications replace existing systems (e.g., decentralized

Substitution finance disrupting traditional banking), this marks substitution.

If blockchain is redesigning how industries function (e.g., self-

Transformation executing smart contracts replacing legal agreements), the company is
in the transformation stage.
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 Single Use Localization Substitution Transformation

Requires
Low risk, but Regulatory High barriers to
ecosystem-wide
limited impact uncertainty adoption
buy-in

Cost savings and Long-term Potential for

Easy to test and
efficiency in closed competitive industry
develop expertise
networks advantage dominance

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by Nathan Furr and Andrew Shipilov

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 01 02 03 04 05
Digital requires Digital will Digital involves Digital is about Digital requires
radical replace physical buying startups technology overhauling
disruption of the legacy systems
value
proposition

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 • Team Three
Ethereum: Navigating the Blockchain's Sustainability Versus Profit Dilemma
By: Ernesto Dal Bo, Guo Xu

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 ANY QUESTION? W02