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What is a Killer Application of Technology in Business

What is a Killer Application of Technology in Business. In general: A “killer app” is a good or service or way of doing business that dramatically changes the accepted order or the old way of doing things …

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What is a Killer Application of Technology in Business

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  1. What is a Killer Application of Technologyin Business • In general: • A “killer app” is a good or service or way of doing business that dramatically changes the accepted order or the old way of doing things … • Killer apps are usually the result of the innovative application of new digital technologies

  2. Killer Apps • From a historical perspective: • Something (usually technology) that causes dramatic change and unexpected consequences that extend far beyond their intended purpose • The long bow … the printing press … the Internet ... E-mail • Can you think of an example?

  3. Killer Apps • What is the effect of killer apps on large corporations? • Displace older products & services • Destroy and re-create entire industries • Upset normal operations: • Change complex relationships: • Between business partners, competitors, customers, and regulators of markets • Invalidate old ways of doing things: • Virtual goods & service providers • Global information networks • The exploitation of information assets

  4. Moore’s Law • What is Moore’s Law and why is it important here? • Every eighteen months, for the foreseeable future, chip density (and hence computing power) will double while cost will remain constant (Gordon Moore, late 1960’s) • Why is it important?

  5. Moore’s Law • What are some examples of Moore’s law in action? • What is fast computing? • 2 years ago: 36 teraflops - NEC • Today: 136 teraflops (IBM, 2006) • How many database transactions per minute? • What’s happening in chip technology? • 2004: 90 nm (1000 gates in a human hair) • 2006: 65 nm (100 gates in a red blood cell) • 2006: Dual processor chips that use ½ the power

  6. Metcalfe’s Law • What is Metcalfe’s Law and why is it important? • Networks (whether of telephones, computers, or people) dramatically increase in value with each additional node or user … the utility of a network can be valued as the square of the number of its users (Robert Metcalf, early 70’s) • Why is it important?

  7. The Digital Economy • Explain: • “it is not only the infrastructure that is different, but the content and context of transactions as well” (Downes & Mui)

  8. The New Economics • What are some of the fundamentals of the “new economics”? • Falling transaction costs contribute to major changes • Mergers, outsourcing, disintermediation • Information becomes more valuable as more people use it • Giving information away creates powerful networks of value • Cheap “bits” are shrinking the traditional firm • Outsourcing, structural changes, virtual goods & services • Once released, bits become public goods • They exhibit different economic characteristics • New entrants and early adopters of new IT have lower fixed costs • Causes old assets to quickly become liabilities

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