Unit II Discussion Board IT

DBA 8671, Technology and Innovation Management 1

Course Learning Outcomes for Unit II Upon completion of this unit, students should be able to:

1. Outline processes for developing the information technology (IT) value proposition. 1.1 Assess the relationship between IT strategy and value creation.

2. Create a technology roadmap for an organization.

2.1 Design a technology roadmap to support your analysis of its purpose and importance to a firm.

Course/Unit Learning Outcomes

Learning Activity

1.1 Unit II Research Paper

2.1

Unit Lesson Chapter 3 Chapter 4 Chapter 5 Unit II Research Paper

Reading Assignment Chapter 3: Advancing a Data Strategy Chapter 4: Creating and Evolving a Digital Strategy Chapter 5: Developing a Cloud Strategy

Unit Lesson The Road Ahead Information technology (IT), as well as technologies that have their roots in information systems, takes time to develop and incorporate within a company. It is, therefore, essential for managers to carefully consider the long-term and plan for new products and services. The fundamental challenge is that while it is likely to take time to develop new capabilities, products, and services, the market in which the firm operates tends to change on a day-to-day basis. When it comes time to think about products and services, it is not about the products and services of today but, rather, the products and services of 3 to 5 years from now. Thinking about products and services in this way could be referred to as a technology roadmap. Explaining how to create a roadmap for the intangible products and services of the IT world is easier to understand when using the more tangible example of a smartphone roadmap. A smartphone takes at least 3 years to develop from scratch. Meanwhile, companies, such as Samsung, Apple, and LG, consistently produce multiple products each year. This means that the seeds for the models of today were planted at least 3 years ago—and perhaps even earlier. The technology roadmap for a smartphone begins with the consideration of the elements of the product that have the longest lead time. These are the underlying technologies that the product will employ. Today’s smartphones, for example, use 4G LTE, but it is clear that 5G technology is just around the corner. The players in this industry will undoubtedly be thinking about how this technology will unfold and what this technology means for those who will be using products that support 5G. The next step in developing a roadmap is to understand what components are in use today and how they will evolve within the next 3 to 5 years. In many cases,

UNIT II STUDY GUIDE

Employing Advanced Technologies in Strategy Development

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components needed to support new technologies may not exist and must be developed much earlier than the product itself so that they are ready to use when the product development begins. It takes multiple components that function together in a unique way to produce a working smartphone. Creating this interconnection of components so that the required features are supported is a difficult and expensive system engineering undertaking. This element of the technology roadmap is, therefore, one of the most complex and most difficult to consider. It is referred to as the platform strategy. The underlying product platform may support the development and launch of many unique products over a period of several years. Although it may take 2 to 3 years to develop a smartphone product from scratch, it takes much less time when the platform is already developed. The platform is the reason why the major players launch multiple products each year while giving the appearance that their internal product development lifecycles are short. W hat they deliver is a result of the technology, component, and platform elements of their respective technology roadmap. The product itself is the last element of the technology roadmap. Products are the tip of the technology roadmap iceberg and emerge from a much deeper roadmap strategy. Companies that only think about products and ignore the need to plan and develop the roadmap are not prepared to compete with those that do. They are doomed from the start.

Technology roadmap for products

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Using the Product Analogy Within IT The readings in this unit do not relate to products but, rather, to the services and capabilities that information

system technologies make available to the firm. The textbook authors suggest that there are three types of strategy in IT: data strategy, digital strategy, and cloud strategy. Data Strategy Data is an emergent property that arises out of an organization as it does work, interacts with customers, and manages the value chain using information systems. Everything that anyone does, whether they are employees, managers, vendors, or customers, leaves “bread crumbs” behind in the form of data. In a way similar to how a product development organization thinks about technologies or components, firms today must think about data as an underlying fundamental component for future services and business models. As we see in our readings, managers must consider what data exist today, what data will be generated in the future, and what services this data will be able to support. Further, data has the power to create new business models in addition to changing organizations and processes. For example, consider the ride-sharing service offered by Uber. Uber has drivers who are willing to drive customers who need transportation, and those who need transportation seek drivers. The data generated by smartphones is used to pair drivers and riders in a way that was not considered previously. The data was out there, but no mechanism previously existed that extracted the data, processed it, and paired it with buyers and sellers. This is one of many examples, but it is typical of the breakthroughs that occur when the strategic power of data and information systems is recognized. Digital Strategy Thinking about data is an on-ramp to strategic thinking about a digital strategy. Digital, as described in the textbook, focuses the attention on the applications, systems, people, and infrastructure used to make use of the data in a way that contributes to value-creating business models (McKeen & Smith, 2019). To refer again to the analogy of product development, a digital strategy is similar to the platform component of the technology roadmap. A digital strategy, much like a platform, takes time and effort to develop and implement. The digital strategy is also more complex since people form a major component of the strategy. Managers are encouraged to think in terms of the end game; in other words, managers are asked to consider what it is that the company wants to do or achieve. As a result, managers, as well as stakeholders, utilize backward thinking to plot what needs to happen to achieve the digital strategy vision.

Technology roadmap for IT

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Cloud Strategy The drop in the cost of storage and server technology along with the ubiquitous presence of high-speed Internet access makes the cloud a common option for companies today. The cloud can be a component of the digital strategy with processing power that could be difficult to attain for self-owned infrastructure. Further, if employed as a part of the digital strategy of the company, it is a huge generator of data that can be fed back into processes, services, business models, and strategic decision-making. The power and efficiency of cloud technology makes it a key component in the technology roadmap of the company. Because of this, managers consider how it is to be deployed, how it will be secured, and how it will impact legacy technologies. The Roadmap The important lesson in this unit is that technology evolves and that organizations must evolve with it. This means understanding the key components of tomorrow’s business models and strategically developing them and implementing them over time as a strategic technology roadmap. The process is analogous to the technology, component, and platform roadmap of product-centric companies. However, the technology roadmap for companies in the information age begins with the data of today and tomorrow, the platform or digital strategy that applies data to create value, and, finally, the use of the cloud as a key enabling technology.

Reference McKeen, J. D., & Smith, H. A. (2019). IT strategy & innovation (4th ed.). Burlington, VT: Prospect Press.