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Solution for Information Systems Management 8th Edition Chapter 2, Problem 1

by Barbara McNurlin Ralph Sprague Tung Bui
203 Solutions 15 Chapters 28996 Studied ISBN: 9780132437158 Management Information Systems 5 (1)

Chapter 2, Problem 1 : 1. Describe the five waves of innovation from...

1. Describe the five waves of innovation from Primozic and colleagues.

 

Step-By-Step Solution

1. Wave 1: Reducing costs, began in the 1960s when the use of IT focused on increasing the productivity of individuals and business areas. The goal was to achieve clerical and administrative savings.

Wave 2: Leveraging investments, which began in the 1970s, concentrated on making more effective use of corporate assets to increase profitability.

Wave 3: Enhancing products and services, began in the 1980s and was the first time that attention shifted to using IT to produce revenue—by gaining strategic advantage or creating entirely new businesses.

Wave 4: Enhancing executive decision making, began later in the 1980s and focused on changing the fundamental structure of the organization as well as creating real-time business management systems.

Wave 5: Reaching the consumer, began in the 1990s. It uses IT directly with consumers, leading to new marketing, distribution, and service strategies. In essence, it changes the rules of competition, which is precisely the focus of leading edge firms—to restructure their industry by focusing on creating new businesses using the Internet, Web technology, and e-commerce.

 

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