Technology Matters!

1. Technology Matters! Technological evolution, choice, transfer, and adaptation

2. 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

3. 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.

4. 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

5. 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 network • Butter’s law: fiber’s capacity could double every 9 months—DWDM 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.

6. 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 GPS, 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

7. Minor route Main route Evolution of mobile standards CDMA2000 1x IS-95C CDMA2000 1x EV DO CDMA2000 1x EV DV cdmaOne IS-95A IS-95B GPRS EDGE GSM HSCSD PDC WCDMA PDC-P PHS 2G 2.5G 3G

9. 4G vision

10. Value Net of telecom • mobile operators (PHS-, GSM-, CDMA-based network, MISPS) • WISPs (WLAN, MVNOs) • Fixed-line operators, ISPs • CATV system operators (telephony, WLAN+ADSL) • VOIP operators (P2P telephony) • GPS satellite services • Independent mobile phone vendors • global telecom equipments vendors • Contracted 3C retailers Suppliers Telecom Complementors Competitors • content providers • PC/NB/PDA vendors • network peripheral vendors (wireless card, PCMCIA card) • multi-mode phones Customers • specialized business users • general consumer users

11. Extending readings • Dertouzos, M. L. (1999), “The Future of Computing,”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

12. Strategic thinking between environmentalism and autonomy Strategic gap Strategic intent Environmental scanning Resource valuation Strategy formulation Resource planning Strategy implementation Capability development Competitive advantage Core competence Environmentalism Autonomy

13. 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

14. 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.

15. 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.

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