MIS 111 Lecture Notes - Lecture 47: Commoditization, Information System, Advertising Mail

• School: University of Arizona
• Department: Management Info Systems Main
• Course: MIS 111
• Professor: Mark Patton, William Neumann

Document Summary

Two types of technology: proprietary, can be owned, actually or effectively, by a single firm, example, patents. Is shared broadly by all firms in an industry or region: example, rail, telegraph, telephone, electricity. Evolution of infrastructural technology: proprietary advantages, access, knowledge, foresight, diminishing advantages, ubiquity, advantage potential, weak advantages. Isn"t it different: not just hardware, software, too. "general purpose" technology: malleable and flexible, endless innovation potential, true, but market forces push it toward rapid commoditization. Software commoditization: extreme economies of scale in production lead to, sharing and "vendorization" --> overshooting ("good enough") and declining returns --> Homogenization and commoditization: now, open source, offshoring, utility service. Vanishing advantage: distinctive systems once provided competitive barriers, access, american"s sabre, knowledge, american hospital supply"s asap, foresight, reuters" monitor, but barriers have rapidly eroded as accessibility, affordability, and standardization have increased. A worthy goal for cios: max hopper, 1990.