Deepak Sharma & Abhishek Shukla

7/18/2019 Deepak Sharma & Abhishek Shukla

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SRI SHARADA INSTITUTE OF

INDIAN MANAGEMENT -

RESEARCH

Approved by AICTE

Plot No. 7, Phase-II, Institutional Area, Behind the Grand Hotel, asant !un",

Ne# $elhi % &&''7'

MANAGEMENT OF TECHNOLOGY AND CHANGES

ON

LMMS AND FACEBOOK

SUBMITTED TO: SUBMITTED BY:

Prof.N Venkat!"aran V#$a% Kr#na &'()(()(*+

1



PGDM (2010-

12)

CLARATION

We, hereby declare that we have completed this project on TECHNOLOTY AN

!NNOCAT!ON L""# AN $ACE%OO& ' The in(ormation s)bmitted is tr)e to

the best o( o)r *nowled+e'

V#$a% Kr#na &'()(()(*+

-." /01021/3

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ACKNO,LEDGEMENT

Writing is a solitary task. However turning of millions of bytes of information

requires an army of talented folks. We have been fortunate enough to be assisted by

many talented people. We wish to express our thanks to all those who have helpedus and have given valuable suggestions.

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S%no-#

Innovation is the creation of better or more effective products, processes services,

technologies, or ideas that are acceptedby markets,governments, andsociety.

Innovation differs from invention in that innovation refers to the use of a

new idea or method, whereas invention refers more directly to the creation of the

idea or method itself.

Go/a #nno0at#on #n1e2

This international innovation index is part of a large research study that looks at

both the business outcomes of innovation and governments ability to

encourage and support innovation through public policy. The study comprised a

survey of more than !,""" senior executives from #$% member companies across

all industries& in'depth interviews with (" of the executives& and a comparison of

the )innovation friendliness) of !!" countries and all *" +.. states. The findingsare published in the report, )The Innovation Imperative in %anufacturing- How the

+nited tates an /estore Its 0dge.) The report discusses not only country

performance but also what companies are doing and should be doing to spur

innovation. It looks at new policy indicators for innovation, including tax

incentives and policies for immigration, education and intellectual property. The

latest index was published in %arch 1""2.3 To rank the countries, the study

measured both innovation inputs and outputs. Innovation inputs included

government and fiscal policy, education policy and the innovation environment.4utputs included patents, technology transfer, and other /56 results& business

performance, such as labor productivity and total shareholder returns& and the

impact of innovation on business migration and economic growth.

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CASE STUDY )Lat M#e Mo/#e So3t#on &LMMS+: Te4!noo5% an1 Partner#n5 for So4#a

Inno0at#on

World 7ision and our Information Technology 8IT9 partners have developed innovative software

for use on robust mobile computers to meet an unmet need in humanitarian applications. This

:ast %ile %obile olutions initiative is applied to field‐ based data collection, management and

analysis processes in an effort to eliminate duplication, streamline business variations, and

remove complexity. /esults from the food‐ programming domain verified substantial benefits

including a reduction in the time to generate key reports by ;"< and a reduction in beneficiary

pre‐ processing and verification times at aid distributions by approximately =*< .

Cae St31% S366ar%

These positive outcomes have led to overwhelming support from within World 7ision and our

partners for the expansion of these innovations. $s such, :%% is now at the start of a ;"‐

month expansion drive across all World 7ision food‐ programming activities. This case study

describes the innovation process and demonstrates how IT and effective partnering with the

private sector can foster opportunities for significant social innovation.

Ba4k5ro3n1 Infor6at#on an1 7at#onae for Inno0at#on

6elivering aid to the right people, at the right time, in the right location, and in sufficient

quantities is challenging enough, let alone when complicated by war, civil conflict or naturaldisasters. 0xperience also shows that having access to reliable, valid and timely data can

significantly improve the analysis of the situation on the ground, and contribute to more effective

decision‐making and better targeting in responses. While the collection and management of field

data is seen as vital, the current processes used by humanitarian operations tend to be extremely

labour and time intensive. The reliance on paper ‐ based procedures to track the aid that

beneficiaries receive is more time consuming and costly to audit and insure against inaccuracies,

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loss or theft. World 7ision>s efforts to integrate better monitoring and to assess the efficacy of aid

programs often requires duplicating data collection and the processes suffer from the

aforementioned challenges associated with remote, field‐ based data collection. To redress these

notable gaps in the remote, field‐ based

data management needs World 7ision began partnering with key players in the IT sector.Working closely with anadian software specialists, :%% issues computer readable identity

cards to primary beneficiaries. These are capable of being printed in the field or at centrali?ed

locations at low cost. Households are registered once into a particular food pro@ect or are

transitioned into new programs using the same identity card, thereby avoiding multiple data entry

over time.

For e2a6-e, in 1""= World 7ision International assisted over !1 million people in (;

countries with AA",B2" %T of food 8about ;"< of it from WCD9 valued at +E1*( million with a

loss rate of ".1<.

De4r#-t#on of t!e Inno0at#on Pro4e

To identify how the :ast %ile %obile olutions 8:%%9 pro@ect took root within the

organi?ation, can differentiate a number of different innovation stages.

7e4o5n#t#on Sta5eWorld 7ision is currently the largest implementing partner of the +#>s World Cood Drogramme,

in addition to handling food from the + Fovernment and the 0uropean +nion. World 7ision>s

leadership recogni?es that improved systems capacity and better processes will be required to

facilitate enhanced humanitarian programming. This culture supporting continuous

improvements enabled our team to table ideas of change and to critically assess existing modes

of operation with the encouragement and support of top management.

In the stages of problem identification, there were ideas brewing in terms of what inventions that

could be applied. 4ne staff member for e2a6-e, while on a business trip, observed how airlines

were organi?ing passengers at the check ‐in counters to take advantage of mobile bar ‐coded

technology in an effort to speed up client processing. The initial review showed that could not

purchase the appropriate solutions purely through a market transaction, as there were no Goff ‐

the‐shelf products available for food aid programming. The private sector in creating a new

product for the humanitarian context, in part due to recognition that the time to deliver a

workable solution could best be met through a collaborative effort. Cield‐ based research and

stakeholder interviews identified fundamental challenges that extended beyond the logistical

arrangements in how services are delivered to people.

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For e2a6-e8 the huge burden paper ‐ based systems placed on the organi?ation in terms of staff

productivity, its impact on our clients and on our donor accountability. $t the early recognition

stage, it became evident how one good idea on managing and processing beneficiaries was now

enabling us to look at more fundamental changes across a breadth of food programming issues.

/emote information management became the trigger point for change.

In0ent#on Sta5e

$t the start of the invention stage, the recognition of problems and the consideration of

innovative solutions were seen as being driven by certain individuals who had a mandate to seek

change 8i.e. innovators9. However, practitioners in the field were not as ready to embrace yet

another change initiative. Derhaps a causality of too many pilots in our industry,

The statistical and behavioural research on Ginnovation diffusion suggests that preferences to

adopt new ideas or products can vary a great deal even within a single organi?ation. $ptitudes

and attitudes toward embracing novelty can range from early adopters to those whose

preferences lag far behind the acceptance of an innovation

Bell ‐curve distribution of types of adopters in the population

uch principles of innovation diffusion were considered purposely throughout the pilot>s

implementation process. upporting the early adopters was a process of education and

negotiation during the invention stage to garner sufficient support from implementers for both

input and ownership of the impending innovation. The responsible business owner, the Cood

Drogramming %anagement Froup 8CD%F9 of World 7ision International, has a reputation for being particularly responsive to innovation. This proved tremendously important in terms of

getting the ideas to a concrete development stage once it overcame the initial inertia.

$s mentioned, many of the original ideas were based on observed practices that the private

sector was using to improve efficiencies. 6uring the identification of potential solutions the

scrutini?ed potential technology failure points. $s part of this process, it relied heavily on the

field staff to identify likely problems and on the private sector partners to assist in the formation

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of suitable solutions. Therefore common Dersonal 6igital $ssistants or consumer grade mobile

phones would not be a suitable technology choice. It is also needed to consider simplifying the

IT architecture with respect to how data would be transmitted to a central storage area. 7ery early

into the invention stage, we decided to make use of a particular IT architecture that would enable

our teams to centrali?e data transmission over small, locali?ed areas. This architecture would also

enables to bypass failed or non‐existent mobile phone networks in the transfer .Issues associated

with biometric data capture were another example of due consideration to failure points. While

technologies existed for the use of fingerprint readers, doing so would not have been a prudent

choice when simpler biometric information could be used 8i.e. photo images9. Dhoto capture

would also prove to be simpler to implement.

It is important to note that every point of IT systems development on :%% entailed

deliberations on humanitarian programming needs. Cundamental to this has been leadership from

key staff that had both highly technical IT and humanitarian programming skills. $s an example,

due consideration was given to the principles associated with respectful and dignified treatmentof beneficiaries. imply automating the finger printing process would have merely extracted data

from the field, making the field more passive about ownership of the data and not proactively

involved in the process. Instead our invention tables the issues on data ownership rights. :%%

uses computer readable identity cards that are owned by the beneficiaries. This is their data and

the process of submitting their I6 cards is intended to encourage their participation in the system

and for them to have a say in terms of how their information is being used in both data collection

and in aid distribution programs.

De0eo-6ent Sta5e

While it was recogni?ed that the :%% tools were suited for wider deployment across different

business functions within World 7ision, the implementation team was intentional about avoiding

expansion of our pro@ect scope by keeping the solutions focused on a particular business need,

namely food programming. The development process that is being used for the full‐scale

development and the adoption of the innovation is based on an iterative release cycle with

continuous design, build, modification, testing and improvements planned for each period in the

release cycle. Curther enhanced functionality and different IT architectures will be grown over

time

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Iterative Development & Release CycleThe development stage of the :%% innovation required a balancing act to maintain interest

within the organi?ation, while still meeting the original ob@ectives given the resources at hand. To

assist in controlling scope and in keeping key stakeholders engaged, the development team

leveraged regular check ‐ins and debriefings. $ collaborative website was set up to document

milestone progressions and to serve as a repository for decisions that the implementing team

made based on inputs from various stakeholders. Cree?ing the scope empowered software

developers to start work early.

I6-e6entat#on Sta5e

Drior to the start of the implementation, key partners and stakeholders were invited to a pilot

launch event in which information on the reasons for change as well as an introduction to the

types of change was introduced. This helped ensure early buy‐in from various stakeholders.

6uring rollout, CD%F appointed experienced personnel who understood the constraints of food

interventions and who were well versed in implementing new food programming processes.

ommunity leaders were informed of the pro@ect>s design. This was led by our IT partners and

engaged World 7ision staff from enya, :esotho, anada and %alaysia. $dditional IT training

was delivered in anada by our hardware and software partners. 4ne trained anadian staff

member travelled to the field and led a four ‐day training session for end users in bothimplementing countries. These training events were supplemented with ongoing J5$ and

additional training sessions during this phase.

$ formative review process was used during implementation. In general, while user expectations

were successfully met, there were areas that required changes to the software functionality.

6uring this stage, the implemented field trails as a dual process K running the old paper ‐ based

systems in parallel with the new automated system. While this ran counter to the designed

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process flow, field staff showed true ingenuity in adapting the system to a different business

practice. Curther inventiveness was demonstrated when field staff found various ways to speed

up the process of basic data entry.

For e2a6-e8 staff found additional open source software that enabled multiple team members

to enter basic information on households simultaneously K one could speciali?e in alphanumeric

text inputs on the laptop and the others could speciali?e in selecting radio buttons or drop down

boxes on the mobile devices.

D#ff3#on Sta5e

It was recogni?ed that successful diffusion would entail- !9 managing expectations& 19 providing

education and training& (9 leveraging persuasion& A9 conducting on ‐going analysis& *9 relying on

negotiation and ;9 making use of authority when needed. %anaging stakeholder expectation

from technology‐led innovation can be modeled on the different stages of the technology>s

maturity.

The Hype Curve (Adopted from Gartner Group $:#$D Innovations

0ducation profiled heavily as part of the diffusion of innovation. $ two‐day review of the pro@ect

was intended to present facts and gather feedback from internal and external parties. 7ideo

material was produced. $ web log site and an extremely well received comic book version

depicting the innovations in practice were also developed. +nrealistic expectations on what the

technology would deliver would be inevitable. However, as deployment of the innovation takes

root in standard business practices, the Glows in the Hype urve will be managed by access toadditional resources to meet wider user needs and to add more strategic value through broader

application of :%%. In part, our emphasis on modulari?ing software development and building

core infrastructure to support :%% will also add to this greater adoption of the technologies

over time.

$dditional efforts supporting diffusion are being implemented. 4n the education and

communication side, an improved :%% website, new videos, newsletters, various case studies

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and an C$J page are being produced. The diffusion process has also sought more proactive

participation from humanitarian partners in an effort to scale the innovation as an industry

solution and to further inter ‐agency coordination. 6ata to support ongoing analysis for WCD is

also being captured through this implementation. In the early stages of defining a more

collaborative effort to focus on analysis and larger scale plans with agencies in a number of other

regions in $frica.

7#k

$t the launch of Dhase !, enya entered into a period of civil unrest and violence associated with

the 1""=‐1""B general elections. Those events came as a stark reminder of the fact that

successful innovations require comprehensive management of all risks K from pro@ect related

technical risks to geographical and social risks. $t this phase, proving the concept of mobile

applications in humanitarian work was seen to be of more importance rather than investing

heavily in alternatives to protect against pro@ect failure.

$cceptance of such risks had to be supported by senior managers within the organi?ation. Ly

doing so, :%% was granted an incubation period, in which we could focus on developing the

innovation, free from excessive risk control. While often the data being collected is not different

from paper ‐ based methodologies, there are contexts in which electronic data collections may be

challenged. uch issues with data governance and the use of data will continue to profile highly

in :%%>s risk management.

Partner!#- an1 Coa/orat#on

Ly partnering with CieldWorker, World 7ision was able to co‐create a new solution that was not

available on the market and that can now be made available to the wider humanitarian industry.

This was an important factor that we took into account at the design stage, due to the fact that we

understood that the underlying databases being used by other organi?ations would not

necessarily be the same as those being used by World 7ision. While any migration to different

systems will require customi?ation, the hope is that :%% offers a solution for better

interagency coordination and inter ‐operability for sharing information.

Ly partnering with a social‐consciousness

‐driven private sector company, World 7ision was also

able to leverage significant cost reductions in acquiring resources to develop the systems and in

the cost structure for software solution. The end result implied that the risks of pro@ect failure

were likely lower from a cost perspective, and were also shared. In addition, the very act of

partnering with an entity whose core business revolved around development of such systems

helped enormously in redressing technical pro@ect failure related risk.

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Leon Learne1 an1 E0a3at#on F#n1#n5

The :%% innovation was introduced in tandem with existing practices during Dhase ! to

mitigate technical failures and to avoid critical data loss. The running of simultaneous

processes enabled an external evaluator to run comparisons between the old and new

systems. The following summari?es key findings from arr 81""B9- The incurred hardwareand software costs were lower than the pro@ected annual savings on staff time, thereby

suggesting a positive cost‐ benefit position when fully deployed. $ ;"< reduction in time

spent generating reports using :%% was estimated when compared to the time required to

generate these reports using paper ‐ based processes. The analysis suggested that the

introduced innovations are expected to have a significant impact on food programming costs

as its use is further expanded. The innovations were expected to positively impact on the

quality of service to end beneficiaries through better tracking of food pro@ect activities, as

well as through faster and more efficient processing of beneficiaries 8pre ‐ processing and

verification times were documented as being cut by =*<9.

The technologies were expected to also lessen fraudulent claims in distribution applications

where personnel were not as familiar with community recipients 8or their designated proxies9 via

better photo verification processes. Improve real time analysis of food programming efforts is

expected to enable better formative assessment of food programming activities. $udit

improvements are expected through the innovation>s improved field‐ based stock control

procedures at final distribution points 8more data is to be collected9. :%% enabled staff to meet

documented World 7ision standards for monitoring food aid pro@ects. :%% will yield

opportunities for fostering higher value returns through increased field worker productivity. Cor

example, the technology empowers monitors to integrate additional data collection that is

normally outside of their @ob scope in food pro@ect management.

Cor example, :%% was found to positively benefit quality of service to end beneficiaries by

improving the way in which recipient information is kept confidential 8e.g. the health status of

beneficiaries is not made public to monitors as the system automatically calculates rations due K

rather than a monitor having to do so in front of the beneficiary9. #ew benefits were also

identified. Cor example, the technological innovation was cited as a positive move toward

becoming paperless and thereby positively influencing the organi?ation>s carbon footprint.

losely associated with this was the need for greater user documentation 8electronic help files9

and more training. There was also the recognition of the fact that real‐time data processing is

much needed, but that implementing and supporting these features was challenging. Cinally, the

lessons also identified the need to pay due diligence to the issues of data integrity and data

security.

In addition to developing applications for greater deployment with humanitarian industry

partners, working with the private sector on additional strategic partnering opportunities. The

:%% tools are one subset of data management. There is much more that we aim to build on top

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of these solutions. Curther, World 7ision and our hardware partners like Intermec must look at

creative developments entailing the invention and customi?ation of hardware. This is required for

broader applications within the humanitarian sector and to remove unnecessary hardware and

embedded software features from the existing tools.

This case study has documented how IT when tightly coupled with humanitarian programming

needs can deliver innovative solutions for the humanitarian industry. The success of the :%%

innovation was achieved in part by enabling space to grow a good idea, by being open to

controlled risk, and through creative thinking rooted in humanitarian need. Curther, the

innovation succeeded by building strong partnerships with the private sector such that the core

competencies from all partners were effectively channelled. In so doing, :%% has opened

significant opportunities in which remote data management and data use is now available for

wider humanitarian sector impact

CASE STUDY ON FACEBOOK

In 1""A, college sophomore %ark Muckerberg wanted to build an online version of student

directory with basic information, commonly known to schools as face book. Harvard didnot offer

such a directory and the administration insisted that they were unable to aggregate theinformation required. Thus, one night, Muckerberg hacked into Harvard>s student records and

created a basic site called Cacemash , which randomly paired photos of undergraduates and

invited visitors to determine who was Ghotter. $fter four hours, A*" visitors, and 11,"""photo

views, Harvard administration disconnectedMuckerberg>s internet connection and took

down the site. However, Muckerberg continued with this new pro@ect as he believed

thatinformation should be available to all students. He added applications and expanded

thenetworks to other schools, and to work networks such as employees from the entral

Intelligence $gency %c6onald>s and the +.. %arine orps. 0ventually in eptember

1"";,Muckerberg>s social networking website, Cacebook.com, was opened to the

public.Dresently, the site has more than ;B million active users worldwide. Cacebook is ranked1nd in the G Top !" +.. ocial #etworking ite for #ovember 1""= report released by

#ielsen 4nline. In Nanuary 1""B, Muckerberg reportedCacebook>s revenue at +E!*" million in

1""= and pro@ected revenue at +E(*" million for1""B

This paper examines Cacebook>s revenue model and investigates on the factors that led to

thecurrent success of Cacebook, to understand and illustrate the different

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technologicalmanagement concepts behind this success. While the emphasis in this case study is

on thelessons learnt for a successful innovation, it also briefly discusses the other issues

Cacebook is currently facing and recommends some future strategies to maintain its

competitiveadvantages.

7e0en3e Mo1e

There were several funding from venture capitalists since the launch of Cacebook.

#otably+E*"",""" from Deter Thiel 8co'founder of DayDal9 in 1""A, +E!( million from

$ccelDartners in 1""*, and +E1* million from Freylock Dartners, $ccel Dartners,

%eritechapital Dartners and Deter Thiel.The revenue model of Cacebook is based on the

following-

6isplay advertisements ' 0xample of revenue from this is through outsourcingadvertising deal.

Lesides the common banner advertisements, Cacebook allows usersto make their own

advertisements known as Cacebook Clyers at low prices based onnumber of clicks. These

advertisements are filtered according to targets> gender, age,education status, and regional

networks. 6irect advertisements accounts for ma@orityof Cacebook>s revenue.

ponsorship ' This is in the form of homepage sponsored stories and sponsoredgroups. In the

former sponsorships, advertisements are displayed in the #ews Ceedsection of Cacebook users>

pages which most users pay attention to. The click'throughrates of such advertisements are

higher than normal banner advertisements by ten totwenty times. :evels of filtering 8such as bygender or location9 for targeted users areapplied with a premium. ponsored groups are groups in

Cacebook created for Aparticular brand of goods. These groups 8such as $pple tudents, DI#

7ictoriaecret, #L$ Cinals Trivia hallenge9 are personal environments for users to gatherand

interact, transforming the brand into a participant of Cacebook. The cost of eachsponsored group

is +E("",""" for three months. There were !B; sponsored groupsin eptember 1""=.Fifts '

+sers can purchase limited edition virtual gifts for other Cacebook users at+E! per item.

Pat! to S344e

Crom an innovation based on the believe of a sophomore, to one with ;; million active usersandannual revenue of +E!*" million, it is not difficult to see that Cacebook has been a

greatsuccess. This is also evident from the significant investment made to the company since

itslaunch. In 4ctober 1""=, %icrosoft invested +E1A" million for !.; percent stake

inCacebook . This values the Cacebook at +E!* billion. Collowing that in 6ecember

1""=,Hong ong tycoon :i a'shing +E;" million for ".A percent stake in Cacebook. $nd

inNanuary 1""B, Ferman internet entrepreneurs the amwer brothers also invested a

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significantamount in Cacebook. This section will examine the factors which contributed to this

success.

T!e Unta--e1 Market

+nlike other social networking sites which had been targeting the older demographics

orteenagers 8in the case of %ypace9, Cacebook was designed by college students for

collegestudents. It targeted specifically the students within each university. tudents needed

suchdirectory services and Cacebook provided a better site than that of schools. With

endorsementfrom university students from reputable schools such as Harvard, tanford and Oale,

students

Cacebook is one of these many interactive applications 8such as eLay,Llogger, Wikipedia,

etc.9 using Web 1." technology. Cacebook will become the de factoservice provided of users> web

content 8such as photos, videos, profile, etc.9, if it can expandbeyond its core website, and enable

users to easily integrate the full array of Web 1."applications. The Cacebook portal will serve as

the main shop' front for users> activities andcontent authoring, which widgets integrated at

other sites will serve out the content to morepeople. This is another way of exploiting #etwork

0ffect as reaching out to more people willattract them to @oin and improving on the content.

Cor-orat#on "#t! More Bran1

Lrands can make use of Cacebook as a tool to get closer to the consumers 8offering

latestproducts and news9 and gathering feedback 8for improvement or observing trends9 on

theirproducts. Ly relating brand preference more prominently to the users> profiles, it is

likely thatusers in the same community will try these brands as well. Through customi?ing

andmarketing such opportunities to more brands, Cacebook will be able to secure

moresponsorship and provide value'add to users at the same time.

Conne4t#n5 to Tren1

The Cacebook users> profiles are source of information on users> preferences and

background.Cacebook applications such as GLooks i/ead capture the users> interests. Lesides

pushingthe advertisements to users through contextual'aware advertising, Cacebook can link

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theseentities of interest 8such as book titles or movie titles9 directly to the internet shopping

websites 8such as eLay or $ma?on9 of these items. +sers browsing these profiles are

moremotivated to click'through these links than those in advertisements. There is a trend of

increasing online sales. In a 1""= Correster report, it predicted a rise of !B percent of onlinesales

to +E1*2.! billion P!;3. Thus, by connecting to trends and integrating with services,can

produce a business model that them to mutually benefit 8such as sharing profitof directed sales

for internet shopping9.

Look#n5 O3t#1e So4#a Net"ork#n5

The modular architecture of Cacebook can be applied to fields outside social networking.

4nesuch example is using it as a teaching tool. $s college students are very familiar with

theCacebook interface, schools can make use of the Cacebook Dlatform to be interactive tools

forinstructional purposes. Cacebook Lrand ulture $s seen in many successful brands,

developing a brand culture is the key to sustainingsuccess. With the success of one single

product, users will be able to identify with products of same family 8such as in the case of $pple with the Gi products, eg. iDod, iDhone, etc.9.imilarly, Cacebook can continue to

target other markets by developing a brand culture andproducts from its initial success. Through

customi?ation based on profiles of other targetedmarket, Cacebook can launch hybrid versions of

its current social networking site and otherproducts using its brand culture 8such as sites for the

older demographic9.

Creat#0e Or5an#9at#ona C3t3re

reativity and innovation are absolutely critical in today>s economy for firms to staycompetitive.

Cacebook will also need to constantly innovate in its infrastructure andtechnology, to meet the

users> needs and improve in its performance. There different ways tobuild innovation as part

of their organi?ational culture. It is necessary for Cacebook torecogni?e the importance of

innovation in the organi?ational culture, and adapt the successformulas from innovative

companies to suit individual firms .

Con43#on

The key strength of Cacebook is its modular and open architecture, which enabled it toexploit the

network effect. $s a first mover in this aspect, it had rapidly gained market shareover incumbent

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such as mypace and Criendster. trategic partnership ensured long termfunding. However,

the competitors, such as Foogle 4rkut and mypace, have also adoptedopen architecture. Thus,

first mover advantage will slowly be eroded. Therefore, it isimportant for Cacebook to look

beyond its success factors and expand on them whenstrategi?ing for the future. This paper also

briefly highlighted the current issues andrecommended strategies to sustain the growth, such as

connecting directly to trends andmoving beyond the Cacebook platform. While these

recommendations are merely possibleway forward, it is important to recogni?e that strategies

should change according to thedynamics of the competitors, complements, trends and

technology.

CHAPTER ANALYSIS

Te4!noo5% Strate5%

$n Information Technology strategy 8e.g. as in Information technology 8IT99 is a particular

generation of an organi?ations overall ob@ective8s9, principles and tactics relating to the

technologies that the organi?ation uses. uch strategies primarily focus on the technologies

themselves and in some cases the people who directly manage those technologies. The strategy

can be implied from the organi?ations behaviors towards technology decisions, and may be

written down in a document.

$ technology strategy has traditionally been expressed in a document that explains how

technology should be utili?ed as part of an organi?ations overall corporate strategy and each

business strategy. In the case of IT, the strategy is usually formulated by a group of

representatives from both the business and from IT 4ften the Information Technology trategy is

led by an organi?ations hief Technology 4fficer 8T49 or equivalent. $ccountability varies for

an organi?ations strategies for other classes of technology. $lthough many companies write an

overall business plan each year, a technology strategy may cover developments somewhere

between three and * years into the future.

T%-#4a tr34t3re of a &IT+ te4!noo5% trate5%

The following are typically sections of a technology strategy-

E2e43t#0e S366ar% ' This is a summary of the IT strategy

Q High level organi?ational benefits

Q Dro@ect ob@ective and scope

Q $pproach and methodology of the engagement

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Q /elationship to overall business strategy

7eo3r4e 366ar%

taffing

Ludgets

ummary of key pro@ects

Interna Ca-a/##t#e

IT Dro@ect Dortfolio %anagement ' $n inventory of current pro@ects being managed by

the information technology department and their status. #ote- It is not common to report

current pro@ect status inside a future'looking strategy document. how /eturn on Investment 8/4I9 and timeline for implementing each application.

$n inventory of existing applications supported and the level of resources required to

support them . $rchitectural directions and methods for implementation of IT solutions. urrent IT

departmental strengths and weaknesses

E2terna For4e

Q ummary of changes driven from outside the organi?ation

Q /ising expectations of users

Q 0xample- Frowth of high'quality web user interfaces driven by $@ax technology

Q 0xample- $vailability of open'source learning management systems

Q :ist of new IT pro@ects requested by the organi?ation

O--ort3n#t#eQ 6escription of new cost reduction or efficiency increase opportunities

Q 0xample- :ist of available Drofessional ervice contractors for short term pro@ects

Q 6escription of how %oores :aw 8faster processors, networks or storage at lower costs9 will

impact the organi?ations /4I for technology

T!reat

Q 6escription of disruptive forces that could cause the organi?ation to become less profitable or

competitive

Q $nalysis IT usage by competition

Q IT 4rgani?ation structure and FovernanceQ IT organi?ation roles and responsibilities

Q IT role description

Q IT Fovernance

M#etone

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Q :ist of monthly, quarterly or mid'year milestones and review dates to indicate if the strategy is

on track

Q :ist milestone name, deliverables and metrics

7eat#on!#- /et"een trate5% an1 enter-r#e te4!noo5% ar4!#te4t3re

$ technology strategy document typically refers to but does not duplicate an overall enterprise

architecture. The technology strategy may refer to-

High'level view of :ogical architecture of information technology systems

High'level view of Dhysical architecture of information technology systems

Te4!noo5%

The systematic application of scientific knowledge to a new product, process, or service.

The methods, processes, systems, and skills used to transform resources into products

Inno0at#on

K $ change in method or technology& a positive, useful departure from previous ways of doing

things.

process innovations ' changes that affect the methods of producing outputs

prod)ct innovations ' changes in the actual outputs themselves

T!e te4!noo5% #fe 4%4e

a predictable pattern followed by a technological innovation starting from its

inception and development to market saturation and replacement

cycle begins with the recognition that applied science can satisfy a need

knowledge and ideas brought together, culminating in a technological innovation

rate of product innovation tends to be highest in early years

dominant design emerges when early problems are solved

technology reaches upper limits of performance capabilities

the technology remains in mature stage until it is replaced

For4e Dr#0#n5 Te4!noo5#4a De0eo-6ent

!. %ust be a need, or demand, for the technology

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1. %eeting the need must be theoretically possible, and the knowledge to do so must be available

from basic science

(. %ust be able to convert the scientific knowledge into practice in both engineering and

economic terms

A. The funding, skilled labor, time, space, and other resources needed to develop the technology

must be available

*. 0ntrepreneurial initiative is needed to identify and pull all the necessary elements together.

A10anta5e an1 D#a10anta5e of Te4!noo5% Lea1er!#-

A10anta5e D#a10anta5e

Q Cirst mover advantage

Q :ittle or no competition

Q Freater efficiencyQ Higher profit margin

Q ustainable advantage

Q /eputation for innovation

Q 0stablishment of entry barriers

Q 4ccupying of best market niches

Q 4pportunities to learn

Q Freater risks

Q ost of technology development

Q osts of market development andcustomer education

Q Infrastructure costs

Q osts of learning and eliminating

defects

Q Dossible cannibali?ation of

existing products

Te4!noo5% Foo"er!#-

Q $ manager>s decision on when to adopt new technology also depends on the potential benefits

of the new technology, as well as the organi?ation>s technology skills

Q Collowing the technology leader can save development expense

o can be used to support low'cost and differentiation strategies

o adoption timing is dependent on the organi?ation>s strategic needs and technology

skills

o potential benefits of the new technology also a consideration

Te4!noo5% 1#ff3#on:

6iffusion of Innovations and Technology is a theory that seeks to explain how,

why, and at what rate new ideas and technology spread through cultures.

6iffusion is the process by which an innovation is communicated through certain

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channels over time among the members of a social system. The origins of the

diffusion of innovations theory are varied and span multiple disciplines.

a. spread in the use of new technology over time follows an 'shaped pattern b. adopters of new technology fall into five groups

Te4!noo5% A1o-t#on

)$doption) refers to the stage in which a technology is selected for use by an individual or an

organi?ation. )Innovation) is similarly used with the nuance of a new or )innovative) technology

being adopted . The te4!noo5% a1o-t#on #fe4%4e is a sociological model developed by Noe %.

Lohlen, Feorge %. Leal and 0verett %. /ogers at Iowa tate +niversity, building on earlier

research conducted there by #eal . Fross and Lryce /yan. Their original purpose was to track

the purchase patterns of hybrid seed corn by farmers.

Leal, /ogers and Lohlen together developed a technology diffusion model and later 0verett

/ogers generali?ed the use of it in his widely acclaimed book, 6iffusion of Innovations3 8now in

its fifth edition9, describing how new ideas and technologies spread in different cultures. 4thers

have since used the model to describe how innovations spread between states in the +..

The technology adoption lifecycle model describes the adoption or acceptance of a new product

or innovation, according to the demographic and psychological characteristics of defined adopter

groups. The process of adoption over time is typically illustrated as a classical normal

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http://en.wikipedia.org/wiki/Sociological

http://en.wikipedia.org/wiki/Iowa_State_University

http://en.wikipedia.org/wiki/Everett_Rogers


http://en.wikipedia.org/wiki/Diffusion_of_innovations


http://en.wikipedia.org/wiki/Normal_distribution

http://en.wikipedia.org/wiki/Iowa_State_University




http://en.wikipedia.org/wiki/Technology_adoption_lifecycle#cite_note-5


http://en.wikipedia.org/wiki/Sociological



distribution or )bell curve.) The model indicates that the first group of people to use a new

product is called )innovators,) followed by )early adopters.) #ext come the early and late

ma@ority, and the last group to eventually adopt a product are called )laggards.)

The report summarised the categories as-

Q innovators K had larger farms, were more educated, more prosperous and more risk'oriented

Q early adopters K younger, more educated, tended to be community leaders

Q early ma@ority K more conservative but open to new ideas, active in community and influence to

neighbours

Q late ma@ority K older, less educated, fairly conservative and le active

Q laggards K very conservative, had small farms and capital, oldest and least educated

less socially.

Intee4t3a Pro-ert% an1 Te4!noo5% La"

Intellectual property law L the body of law that is primarily concerned with providing protection

for the intangible creations of the human mind L has traditionally been comprised of three ma@or

subfields- Datent :aw, opyright :aw, and Trademark :aw. The boundaries of each of these

three subfields are set largely by the federal statutes that govern each '' The Datent $ct 8(* +

ecs. !' (=;9, the opyright $ct 8!= + ecs. !"!L!1"(9, and the :anham $ct 8!* + ecs.

!"*! L !!1=9, respectively.

Technology has long played a key role in ID law, particularly in patent law& the critical role that

patents have always played in the development of new technologies K from the cotton gin, the

telegraph, and the transistor, up to and including the more recent innovations in biotechnology

and computer networking L has meant that patent lawyers often find themselves at the cutting

edge of technological development. $s a consequence, entry into the field of patent law is

restricted to those with substantial technical expertise& for example, in order to call oneself a

patent lawyer and to practice before the +nited tates Datent and Trademark 4ffice, you must

pass a separate examination 8the Datent Lar examination9 in addition to a tate Lar exam, and the

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Datent 4ffice allows only lawyers with demonstrated areas of technical competence to sit for that

examination.

Increasingly, however, technological issues are also becoming central to the othersub'disciplines

within ID law. While many trademark and copyright lawyers continue to have successful

practices without the slightest interest, or expertise, in technological issues, the rise of the

Internet, in particular, has meant that technological issues are becoming more important in these

subfields.

The ad@ective )intellectual) reflects the fact that this term concerns a process of the mind. The

noun )property) implies that ideation is analogous to the construction of tangible ob@ects.

Intellectual property can be distinguished from other forms of property in that it is a bundle of

rights attached to the intangible form of an intellectual, scientific, or artistic creation. While

personal property law determines ownership over things, intellectual property law secures

ownership in the particular form or expression embodied in things.

Intellectual property laws and enforcement vary widely from @urisdiction to @urisdiction. There

are inter'governmental efforts to harmoni?e them through international treaties such as the !22A

World Trade 4rgani?ation 8WT49 $greement on Trade'related $spects of Intellectual Droperty

/ights 8T/IDs9, while other treaties may facilitate registration in more than one @urisdiction at a

time. 6isagreements over such issues as software patents and the appropriate level of copyright

enforcement have prevented consensus on a cohesive international system.

$ number of rationales explain the intellectual property laws. ome legal experts assert that

intellectual property laws are needed to encourage individuals to create new works of authorship,

inventions, and other innovative sub@ect matter. It is believed that absent a system of proprietary

rights, free riders could readily exploit these works without having to bear the costs of creating

them. Individuals would in turn possess diminished incentives to devote their efforts to being

authors or inventors. In addition, intellectual property rights are said to facilitate market

mechanisms by creating discrete, well'defined property interests that decrease transaction costs

and encourage commercial exchanges.

4n the other hand, intellectual property laws have been sub@ect to criticism. ome assert that

intellectual property rights are unnecessary due to market forces that already suffice to create an

optimal level of creative activity. The desire to become famous, or to gain a lead time advantage

over competitors, may well provide sufficient inducement to write or to invent without the need

for further incentives. In an era where information can be readily transmitted around the globe,

the notion that an innovation can be an ob@ect of possession has also been challenged

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Con43#on

Technology leadership goes beyond managing the day'to'day logistics of a strategic tech

planning process. It is about a social'change process. $n effective technology leader should be a

public advocate of the mission'driven use of technology, maximi?ing relationships with variousgroups, both within and outside of the organi?ation, and empowering others to get invested and

involved in planning for and deploying technology. GI think forming a technology team

comprised of volunteer and paid staff and other stakeholders is key. Having the team to motivate

and enthuse others about the benefits of technology, as opposed to me as an 0xecutive 6irector,

will help more people to be positive about the additional work involved with paying attention to

and working on the priority areas.

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Documents

Deepak Sharma & Abhishek Shukla