OMIS 3710 Chapter 1: Setting the Stage: Technology and the Modern Enterprise
Operations Management and Information System
Chapter 1: Setting the Stage: Technology and the Modern Enterprise
1.1 Tech’s Tectonic Shift: Radically Changing Business Landscapes
China started off decade as a nation unplugged and offline; now has most internet users
in the world
Data analytics and business intelligence are driving discovery and innovation
New Technologies Fueled globalization:
o Billions of people have access to computing and telecommunications.
Google, Twitter, and Facebook have changed the way firms advertise and people
o Fueled data driven decision-making
o Raised privacy and security concerns
Redefined concepts of software and computing
o Open source software has lowered computing costs.
o Cloud computing and software has become a valuable service.
o Turned high-powered computing into a utility available to even the smallest
businesses and nonprofits.
1.2 It’s Your Revolution
Notable people who are powerful, successful, and the most admired
o Bill Gates, Microsoft
o Mark Zuckerberg, Facebook
o Larry Page and Sergei Brin, Google
o Jeff Bezos, Amazon
o Marissa Mayer, Yahoo
Comparison between Uber, Airbnb, Facebook, and Alibaba
o They are Interface Owners
“These companies are indescribably thin service layers that sit on top of
vast supply systems (where the costs are) and interface with a huge
number of people (where the money is).”
o Full stack companies…
Control more of their supply chain and service layers
Still can be successful, but may be harder to build and scale
o The interface is where the profit is
Uber provides average cars in a premium way
iTunes took nearly all the profits in the music industry by being just the
thin software 1.3 Geek Up – Tech Is Everywhere and You’ll Need It to Thrive
o The rapid changes of the tech industry lead to the continual development of new
businesses and rapid changes in the industry landscape.
Suited to IPO markets
IPO markets need new firms, and the tech industry always has
new firms sprouting
Continuously involved in mergers and acquisitions (M&A)
o Technology has the power to make certain pieces of capital obsolete.
o The roles of finance in tech include:
Lending to tech firms
Leading tech firms are flush with cash and are always hunting for
Evaluating the role of technology in firms in an investment portfolio
Considering tech’s role as part of personal investments
o The reliability of any audit is tied to the reliability of the underlying technology.
o Increased regulation has strengthened the link between accounting and
Sarbanes-Oxley Act: Raised the executive and board responsibilities and
ties criminal penalties to certain a