Technology

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Technology Business
Business, Law, and Innovation

• Lecture 1
• Spring 2014
• Professor Adam Dell
• The University of Texas School of Law

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Whats the Big Deal?
- Economy at a macro level - Reason companies
buy/ use technology - Rate of adoption -
Technology inside companies - Appendix Brief
History Basic Vocabulary
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Economy at a Marco Level

• Our economy is shifting from capital-based
  economy to information-based economy
• Physical capital needs drop, as we move from
  tangible to intangible
• Cost of computing communications decline the
  more prevalent they become
• Information KEY to COMPETITIVE EFFICIENCY

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From the physical to digital

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Adoption of Tech Per Cap Income Growth

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For the B School Students
What is Capital Expenditure? Who are the most
efficient spenders?
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Technology as a of Capital Expenditures
Source SP's Research Insight
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Every Functional Area of Business

• Technology Invasion
• Every major business function addressed
• Communications (email, phone, fax, instant
  messaging)
• Supply Chain (partners, suppliers, customers)
• Procurement (RFQ, RFP)
• Sales (lead management)
• Customer Relationship (customer communications)
• Marketing (email, SMS, social)
• Accounting (Direct deposit, Excel)
• HR (Applicant tracking, candidate profiling)
• No end in sight

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Why? Technology is a Corporate Arms Race

• Leading edge companies are leading edge users of
  technology
• Amazon (supply chain, RFID, logistics)
• Dell (chatter, salesforce.com)
• Marginal competitive advantages
• Personalization (when you walk into a Macys they
  know its you)
• Big data (Target knows you are pregnant)
• Companies cannot compete if they do not uses
  these tools.

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Rate of Adoption New Technologies

• Salesman circa 1985
• Salesman circa 2013

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Marketing Automation

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Complexity of Technology Enabled Enterprise
Oh!the woes!!!
End Customers
Vertical Market Integrators
Corporate Resellers
Resellers
Small/ Medium Business
ERP
Fax
Field Service
XML
CRM
Healthcare
VARs
Finished Goods
Enterprise
Parts
EDI
Product Lines
Markets
Channels
Customers
Systems
Mediums
Web
Financial Services
SCM
Excess Inventory
Distributors
Global Resellers
New Products
Phone
InsideSales
Services
Federal/Public Sector
Mainframe
Mail
VAR
Telcom
Custom
Broadcast
CSRs
Distributors
OEMS
System Integrators
System Technical Integrators
Independent Hardware Vendors (IHVs)
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The Implications

• Lots of technologies
• Lots of systems to manage
• Lots of business processes deeply tied to IT
• Ex. BP
• 200 different ERP solutions
• 5 separate global deployments of SAP, none talk
  to each other
• Energy 18 different ERP solutions

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Lets Step Back

• How do companies buy technology?
• It used to be that every 4 5 years
• Evaluate new technologies
• Assess ROI, cost implications of rollout
• Integrate, Migrate Train
• Deploy and Manage

• Until something better comes along WORTH
• going through whole painful process yet
  again.
• This accounts for the KLUDGE of corporate
  networks

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Brief History of the Enterprise

• Start with a simple architecture

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Brief History of the Enterprise

• Then get ACCRETIVE

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Today Companies Must Move Faster
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But its no panacea
Who can access my data? Where is my data? What
if a rogue employee accidently deletes all my
data? Did you back it up? What if my cloud
provider goes down? What if I want to switch
providers, how do I get my data back?
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Another Kludge
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Rate of Technology Adoption
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Rate of Technology Adoption
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A Brief History of Technology
Semiconductor
Mainframe
WAN
Microprocessor
Personal Computer
Local Area Network
Wide Area Network
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A Brief History of Technologycontd.
University WANs
ARPANET
Internet

• Backbone for data transmission
• Standards that enable easy data exchange
• What else could we put on top of this thing?
• Voice (cell telephones)
• Applications (email, IM, ERP)
• Result ONE NETWORK