Changes for Gallaugher’s “Information Systems: A Manager’s Guide to Harnessing Technology” Textbook v. 2.0 – Fall 2013
To ease the yearly transition from one version to another, most of the content remains the same in structure, concepts introduced, and topic flow. Data and examples have been updated in order to keep the text highly relevant and to improve concept illustration. Several new concepts are introduced while older examples are retired in favor of more contemporary ones. Here are some of the updates you’ll notice in the latest version of Gallaugher’s widely-used and award-winning textbook.
Chapter 1: Refreshed data and statistics, additional examples in Section 1 are included on tech’s impact on sub-Saharan Africa. “Young Tech” section includes mention of Tumblr and Instagram. Tech in HR section mentions “Social Media and the New Resume”. “The Pages Ahead” includes prelude to the new Amazon chapter & updates for new content.
Chapter 2: Strategy & Technology: Some new data and info in FreshDirect mini-case. Refreshed examples throughout the chapter. Some new examples (ex: social sharing success of Fab.com related to virality, raising awareness, and building ‘Brand’). The concept of ‘taking a firm private’ (what it means and why do it) is briefly introduced in Dell mini-example. This is especially useful for students to know when plotting options for public firms facing prolonged disruption requiring a period of loss during a shift in revenue model.
Chapter 3: Zara. Chapter includes new and most current data. Info on Bangladesh Rana Plaza fire is related to Gap v. Zara, contract mfg, and the use of tech such as Fair Factories Clearinghouse to improve industry performance.
Section 4: Netflix Substantially re-written for currency. Background info streamlined to provide overview of firm’s in rise, fall, and return. DVD business part of the chapter is streamlined and shortened. Main concepts are all still there (brand, scale, data asset, collaborative filtering, long tail), but most faculty are likely interested in emphasizing how firm’s current challenges relate to key course concepts. Atoms to Bits section heavily re-written. Includes sidebar on Qwikster debacle. Issues covered include access to content, economics of digital goods, ownership rights, windows, impact on long tail, supplier power, disintermediation; and how digital improves the data asset, changes viewer habit, removes creative constraints on artists (relating back to competitive positioning). The relationship between scale (in user base and offerings) is discussed relative to streaming competitiveness. Issues in global expansion, the Netflix platform, crowded and diversely motivated/resourced rival field are also covered. A new “What’s it take to run this thing?” is now included that focuses on Netflix (especially interesting since the firm relies on Amazon’s cloud). A new sidebar on Netflix culture is included (often regarded as one of the most influential in Silicon Valley). There is also a new Netflix and crowdsourcing/prizes section now in the digital section (this reflects new prizes and relates to value of firm’s open-source work).
Chapter 5: Moore’s Law and More: Fast, Cheap Computing, Disruptive Innovation, and What This Means for the Manager. Note the name of the chapter has been changed to reflect the new section on disruptive innovation / disruptive technologies. Updated examples are included throughout. Five waves of computing have been broken into six waves (fifth for mobile, sixth for ubiquitous computing embedded into everyday devices). A new sidebar on ‘sixth wave’ computing is titled: “Tech Everywhere: From the Smart Thermostat to a Tweeting Diaper.” The concept of the “Internet of Things” is introduced. New info included in “Tech for the Poor”, including new examples and videos on Esoko (farmer empowerment tool) and M-Pesa (mobile payments). The Supercomputer, Grid, Cloud section now includes information on cluster computing. The concept of latency (delay) is mentioned as it relates to cloud computing challenges. Most noteably, the new Disruptive Innovation section introduces the concept of disruptive technologies/innovation, the characteristics of such disruptions, why large firms often fail when faced with tech-led disruptions, how firms can recognize potential disruptions, and how firms can leverage a portfolio of options when disruptive potential is identified. Sidebars in this area include Intuit’s move from packaged software to cloud, and the Intel vs. ARM battle.
Chapter 6: The new Amazon.com Chapter can be tackled in three parts: The first section covers Amazon’s e-commerce business. The second, its Kindle business. The third, covers Amazon’s personal and corporate (AWS) cloud computing initiatives. The first section includes information on how technology supports firm operations, reducing errors and improving efficiencies (lots of info offered on how tech and operations mix). The concept of the cash conversion cycle is introduced to illustrate how technology drives profits (a great way to get non-tech students excited about the power of IS as it relates to a critical accounting/finance concept). Examples comparing Amazon vs. brick and mortar retailers are shown. Firm scale economies are related to selection, pricing power advantages, and network effects. Tech’s ability to enhance the firm’s self-declared ‘customer obsession’ is detailed. Benefits of personalization are introduced. Ways that Amazon changes customer buying habits are explored, such as the firm’s status as a first-choice product search destination, and the ways that Amazon Prime influences customer loyalty and buying habits. The Kindle section covers: the rise of the Kindle reader, the benefits of Kindle as an additional channel of consumption for Amazon’s media and other retail businesses, Amazon’s expansion into the publishing business, how this alters the publishing value chain (and its economics), the concept of channel conflict, and concerns over book pricing. The cloud section introduces Amazon’s personal cloud offerings (integrated with Kindle, Amazon Music, and personal storage. The bulk of the chapter introduces AWS, the firm’s services, who uses them, why, and why the offering is important to Amazon. The section isn’t mean to replace extensive Cloud Computing coverage in “Software in Flux”, but many faculty will find this a solid reading to introduce cloud concepts and underscore key points made in the later chapter.
Chapter 6: has a more appropriate chapter name: “Understanding Network Effects: Strategies for Competing in a Platform-Centric, Winner-Take-All World”. The section on one-sided and two-sided market illustrates this concept in part through the struggles and many competitors in the mobile payments market. Platform fragmentation is illustrated with a new example and image showing the challenges of developing on the fragmented Android platform. Congestion effects are illustrated through the new example of the failure of the recent SimCity introduction.
Chapter 8: Social Media, Peer Production and Web 2.0 includes several new examples, especially in the intro section. Instagram, Tumblr, SnapChat, WhatsApp, Pinterest, Reddit, Quora, GitHub, and StackOverflow all receive mention, and could even include how reading something like this mr. insta review and its growth service could potentially help Instagram users to increase the number of followers that they have. The concept of collaborative consumption is introduced, along with reference examples (ZipCar, RelayRides, Airbnb, NetJets, Uber). The Web 1.0 v. 2.0 table has been updated and refined. Key digital media marketing concepts are introduced in a new sidebar section: paid, owned, and earned media, plus the concept of inbound marketing. Google+ now merits more detailed discussion in the social networks section, and the role of Pinterest in driving commerce is introduced via a One Kings Lane example. Irrelevant products are removed from discussion (e.g. the discontinued Google Reader), while new ones are introduced (IFTTT).
Chapter 9: The Facebook Chapter has been recognized, refined, and updated. The first section covers the Facebook Platform (from feeds to in-Facebook applications), the concept of the social graph is introduce, and all of these are related to firm competitive advantage. New developments, including the results of the Instagram acquisition and Graph Search, are discussed. Several new videos illustrating Facebook concepts are embedded into the online version of the chapter. Challenges in creating and running a platform are discussed, and the extension “What’s it Take to Run This Thing?” has been updated. The next section is titled “Moving Fast and Breaking Things: What All Managers Can Learn from Facebook’s Mistakes.” Gaffes associated with Facebook’s Beacon initiative and various Terms of Service changes are introduced, along with an analysis the problem source and how firms can do a better job in development/deployment/transition through systems vs. technology-based thinking. The section also includes a discussion of Facebook’s challenges as users are increasingly relying on mobile devices to engage socially. The “Advertising and Social Networks, A Work in Progress” section includes a refresh of key data, statistics, and examples. The section on content adjacency problems includes recent challenges the firm has faced when advertising is offered near offensive content. New efforts in ad targeting and recent success in mobile ads are detailed. The final section, “Is Facebook Worth It?”, is updated to reflect information a year after the firm’s IPO.
Chapter 12: The Data Asset, has a few minor updates. A section name has been updated: “Data Warehouses, Data Marts, and Technology Behind ‘Big Data'” and now more accurate reflects the Big Data Technologies discussion first introduced in the prior edition. The Walmart mini-case includes information on the firm’s Silicon Valley operations, its social media, mobile, and ‘big data’ initiatives and its recent acquisitions in these areas.
Chapter 15: Google in Three Parts includes a refresh of data and key examples, where appropriate. Charts are recreated with 2012 and 2013 data. Mention of discontinued products (e.g. Google Latitude, among others) is removed. “What’s it Take to Run This Thing?” has been updated with new information and video Google has released in the past year. The concept of the colo (colocation facility) is introduced. Several additional concepts are introduced, including dynamic search ads, and retargeting/remarketing. A new sidebar is included titled “Big Data Analytics: Even for the Little Guy” offers information on Google Analytics. The final section “The Battle Unfolds” includes updated information on the US Google Anti-trust ruling in “How Big is Too Big?” New information is offered on Project Loon, Motorola Mobility, YouTube, Google Wallet, Google+, Google Apps, while Google Glass is briefly mentioned (with video embedded in online text).
I hope that you enjoy the update! Note that I continue to distribute information that I think may be of interest to faculty and students via my blog at https://gallaugher.com (you can sign up via the e-mail link at the top of that page), and many of the updates I share via social media (Twitter: @gallaugher, and on Google+) are also relevant.
Best wishes
John