Technology Matters!

Technological evolution, choice, transfer, and

adaptation

Two intertwined technological forces

The Moore’s law–the acceleration of computing power doubles about every 18 months One of Intel’s cofounders the faster, smaller, and cheaper digital devices

The Metcalfe’s law—the extending connectivity squares the network utility The inventor of Ethernet and the 3Com’s founder v=n², v=utility, n=the number of connected nodes

Reach and Richness contributed by wireless and broadband

Hardware innovation Processor & Storage: exponential

growth The speed & value attributed by the

Moore’s law bypassed the constraints of Rock’s law

Handheld & wearable IT devices Miniaturization & pervasiveness—

ubiquitous connectedness of embedded systems between and within home, office, and any entities.

Software creativity From proprietary to Portability & Interoperability

The platform/structural organizer of value network Portable programming languages Software/Data can interacts each other smartly under a

delegation world Distributed objects and standards

Ex ante, de jure negotiation but ex post de facto extension Manipulating the One-way/Two-way compatibility

The middleware/converter innovation—the purpose of leveragability vs. the strategy of cannibalization

Trends of Telecommunication

From circuits to packets TCP/IP protocol & QoS challenges DSP power & IPv6 compensate VoIP problem for DiffServ

From electrical to optical transmission From the core/backbone of network to the on-ramp/edge of net

work Butter’s law: fiber’s capacity could double every 9 months—D

WDM fiber capacity up to 57.6 terabits ps Overcoming the last mile

Fixed access—xDSL, cable modem, microwave LMDS, M/LEO (medium-/low-earth orbit) satellite

Sub-aerial mobile systems—1G,2G,3G, WLAN, Wi-max, 4G, etc.

Telecommunication convergence

Connection between the fixed-line networks and the wireless networks

PSTN, CATV, LAN, xDSL, FTTH, power GSM, CDMA, PHS, PCS, Wi-Fi, Wi-max, HomeRF, IrDA, satellite GP

S, LMDS, cdma2000, WCDMA, TD-SCDMA Connection between end devices and servers

PCs, NB, PDA, mobile phones, Home/office/personal appliances, vehicles

Telecom/mobile (virtual) network operators, CATV System operators, ISPs, WISPs,

Connection between decentralized contents and disperse transmission islands

HTML. XML languages IP, IPng technologies

Evolution of mobile standards

3G2.5G2G

cdmaOneIS-95A

cdmaOneIS-95A

GSMGSM

IS-95BIS-95B

PHSPHS

CDMA2000 1x IS-95C

CDMA2000 1x IS-95C

GPRSGPRS

HSCSDHSCSD

EDGEEDGE

WCDMAWCDMA

CDMA2000 1x EV DO

CDMA2000 1x EV DO

PDC-PPDC-P

PDCPDC

Minor routeMain route

CDMA2000 1x EV DV

CDMA2000 1x EV DV

4G vision

Complementors

Customers

1.Independent mobile phone vendors2.global telecom equipments vendors3.Contracted 3C retailers

1.mobile operators (PHS-, GSM-, CDMA-based network, MISPS)

2.WISPs (WLAN, MVNOs)3.Fixed-line operators, ISPs4.CATV system operators (tele

phony, WLAN+ADSL) 5.VOIP operators (P2P telepho

ny)6.GPS satellite services

1. specialized business users2. general consumer users

1.content providers2.PC/NB/PDA vendors3.network peripheral vendors (wireless card, PCMCIA card)

4.multi-mode phones

Suppliers

Value Net of telecom

CompetitorsTelecom

Extending readings Dertouzos, M. L. (1999), “The Future of Co

mputing,” Scientific American, 281(2), August, pp15-26.

Ackoff, R. (1967), “Management MISInformation Systems,” Management Science, 14(4), pp.147-56.

ITU 1999 Annual Report, “Challenges to the Network: Internet for Development,” http://www.itu.org

Strategic thinking between environmentalism and autonomy

Strategic gap

Competitiveadvantage

Core competence

Environmental scanning

Strategy formulation

Strategy implementation

Capabilitydevelopment

Resource planning

Resourcevaluation

Strategic intent

Environmentalism Autonomy

Strategic Intent

Hamel & Prahalad focus on aggressively developing internal competences to counteract dynamic, global, and turbulent environment for the glorious vision of the firm rather than passively defend to adapt to outside threats Not only to choose fitting strategies by existing internal

strengths to achieve external environmental opportunities

But also to build new capabilities and accumulate resources to create and exploit future markets.

E.g., Sony and Cannon

Referred papers Wade, Michael and John Hulland (2004), “Review:

The Resource-Based View and Information Systems Research: Review, Extension and Suggestions for Future Research,” MIS Quarterly, Volume 28, Number 1, pp.107-143.

Amit, R. and P. J. H. Schoemaker (1993), Strategic Assets and Organizational Rents,” Strategic Management Journal, vol.14, pp.33-46.

Dierickx, I. and K. Cool (1989), “Asset Stock Accumulation and Sustainability of Competitive Advantage,” Management Science, vol.35, pp.1504-11.

Wernerfelf, B. (1984), “A Resource-based View of the Firm,” Strategic Management Journal, vol.5, pp.171-180.

Referred papers (cont.)

Venkatesh, Viswanath, Michael G. Morris, Gordon B. Davis, and Fred D. Davis (2003), “User Acceptance of Information Technology: Toward a Unified View,” MIS Quarterly, Volume 27, Number 3, pp.425-78.

Bagozzi, R. P., and J. R. Edwards (1998), “A General Approach to Construct Validation in Organizational Research: Application to Measurement of Work Values,” Organizational Research Methods, 1(1), pp.48-87.

Referred papers (cont.) Bharadwaj, Anandhi S. (2000), “A resource-based perspective on inform

ation technology capability and firm performance: An empirical investigation,” MIS Quarterly, Vol. 24, Iss. 1.

Teece, D. J. (1998), “Capturing Value from Knowledge Assets: The New Economy, Markets for Know-how, and Intangible Assets,” California Management, Review, 40(3), pp.55-79

Peteraf, M. (1993), “The Cornerstones of Competitive Advantage: A Resource-based view,” Strategic Management Journal, vol.14, pp.179-91.

Mata, Francisco J, William L. Fuerst, and Jay B. Barney (1995), “Information technology and sustained competitive advantage: A resource-based analysis,” MIS Quarterly, Vol. 19, Iss. 4.

Castanias, R. P. and Helfat, C. E. (1991), “Managerial Resources and Rents,” Journal of Management, 17(1), pp. 155-71.

Barney, J. C. (1986), “Strategic Factor Markets: Expectations, Luck, and Business Strategy,” Management Science, 32(10), pp.1231-41.