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lecture slides information management
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lecture slides for information management at Tilburg University
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Information Management Lecture SlidesLecture 1. ‘The revolution is just beginning’
E-commerce in two (linked) domains
• E-Commerce = impact of IT on business
• “IT enabled business”→ FB, uber, bol.com, puma
• “IT provider business” → Microsoft, IBM, apple
• The domain of IT-enabled firms: every firm uses IT to reach customers, to produce products
and services, to purchase materials, to hire personnel, etc.
• The domain of IT-provider firms: an increasing variety of IT-firms that provide all kinds of
products and services to IT-enabled business
• Many business linkages within and between the domains
o Many new (intermediary) firms
• Value analysis: which service/product for which markets & revenue model
• Information analysis: which data are created and needed to execute business transactions
• Process analysis: which steps and activities to deliver the service/product
• Business model analysis: which business model fulfils the services/products
The Big Five Technologies = SMACIT
• Social media: technologies that enable communication and creating of virtual groups (Insta)
• Mobile computing: technologies that enable powerful computing ‘everywhere’ (Wi-Fi)
• Analytics (or big data): technologies that enable data analytics and AI (Hadoop)
• Cloud computing technologies that enable data storage and computing ‘in the cloud’ (iCloud)
• IoT: technologies that enable to monitor with smart sensors everywhere (smart home)
Web 2.0 technology is a key enabler of e-commerce
• Web 2.0 technology became available around 2000:
o Allows users to create and share content, preferences, bookmarks, and online
personas (note that until 2000, Web 1.0 offered only the provider to publish content
to users and not vice versa)
o Web 2.0 enables users to participate in virtual lives & develop online communities
• Web 2.0 technology allows firm to:
o Build and provide online communities
o Develop business models
• “web 2.0 technology” enables “Social Media Technology”
,What is data?
• How much data exists? → estimates around 7 Zettabytes in 2021
• 4 disruptive aspects of data & IT for E-commerce
o We can compute from data
o We can deal with messy data
o We can find hidden correlations in data
o We can make data visible
• Information Management = briding business and IT
• Information management = balancing NEEDS and Services
A key word in this course = business model
• Business model:
o = a set of planned activities (business processes)
o Designed to result in a profit in a market place (value)
Core tools in information management
• Value modelling: to determine which value is provided by which firm to which client
• Process modelling: to determine which processes are designed and executed to provide
value (= products and services)
• Information modelling: to determine which
data are created, used, and exchanged to
run the processes and to provide the value
What is E-commerce
• E-commerce is the application of IT to doing business
• E-commerce is (>1980s) the result of
o Driver 1: competition and business changes
o Driver 2: new enabling IT
o Interaction between drivers 1& 2 = reshaping the business environment
E-business = impact of IT at the firm level
• Each firm ‘consists of 5 operational and 4 supportive processes (Michael porter value chain)
• IT affects
o All nine business processes PLUS all linkages between these processes
o All contracting between firms
o Enabling the value chains (firms) to connect into a ‘dynamic (e-commerce) value
system’
,E-commerce =impact of IT at the industry level
• IT can affect each of the 5forces, thereby influencing:
industry structure, intermediation, dis-
intermediation, etc
• Porter’s five forces model of competition
Types of E-commerce
• Classified by market relationship:
o Business-to-consumer (B2C)
o Business-to-business (B2B)
o Consumer-to-consumer (C2C)
o Government to consumer/business (G2C,
G2B)
• Other:
o Mobile commerce (M-commerce)
o Social e-commerce (FB, social networks, communities)
o Local e-commerce (groupon)
Complicated role of IT as business enabler
• Many early visions on e-commerce have not been fulfilled
o “IT must lead to friction-free markets”
▪ Consumers turned out to be less price sensitive!
▪ Considerable price dispersion
o “IT must lead to perfect competition”
▪ Information asymmetries persist
o “IT must lead to dis-intermediation”
o “IT must lead to the first mover advantage”
▪ Fast-followers often overtake first movers
• IT may trigger transparency (of prices) → information symmetry
• IT may trigger information overload → information asymmetry
Academic disciplines concerned with E-commerce
• Technical approach • Behavioural approach
o Computer science o Information systems
o Management science o Economics
o Information systems o Marketing
o Management
o Finance/accounting
o Sociology
, Lecture 2 Value modelling
Business Value Modelling
• Business model = a set of planned activities (or processes) designed to provide value for the
customers and to result in a profit in a marketplace for the firm
o Focus in on value for the customer → why talk about it?
• Companies whose operating margins had grown faster than their competitors’ over the past
5 years were twice as likely to emphasize business model innovation as opposed to product
or process innovation
Schematics
• Analysing relations among business actors in a value network requires schematics as they
allow managers to configure their business models in ways that maximize their effectiveness,
as well as helping others of its investment potential – (Weill & Vitale)
• E3 value → the exchange of object of value between actors performing activities →
foundation in:
o Value chain thinking (eg. Porter, Normann)
o Marketing (Kotler, Holbrook)
o Micro Economic (Varian, Whinston)
o E-commerce business case (Whinston,, Choi, Shapiro, Varian)
5 different concepts of value modelling
• Actor
o Independent entity such as a company or a person
• Value activity
o A process, performed by an actor which adds or create value
o Performed economically and technologically independent from other value activities
o Cannot be decomposed in smaller activities; each can be assigned to different actors
• Value object (type)
o Produced / consumed by value activities
o Interact with actor
o Comparative, personal, situational
• Value port
o Actors & value activities are connected to each other via value ports
o On ports, value objects are visible to the outside world
o Have a direction → in or out
o Value ports have properties such as the unit price (range) of a value object
• Value interface
o Models a service offered or requested by a value activity
o Multiple value interfaces per value activity
o Typically uses and produces service
o Typically, multiple ‘versions’ of products are used / produced
Process modelling versus value modelling
• Value models focus on business value, abstract from the process details (the why)
• Process models focus on the processes as business actions in sequence (the what)
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