The Digital Divide

1. What is the digital divide? How can mobile computing be used to solve some of the problems of the digital divide?


I think this is a great question. For one the digital divide is defined as the gap between those who have substantial access to digital and information technology and those that do not. The divide includes limited physical access to computing devices and imbalances in training or skills that further enable the digital divide. The digital divide exists in some form throughout the world and can be classified along age, income, race among other factors. This is a real problem for those that have very limited access to digital resources and skills. Ways that have been used to alleviate this problem are putting computers in public libraries, computer loan programs, One laptop per child (OLPC) program, computer training and other similar types of outreach to historically disadvantaged populations.

For example, imagine someone with no digital access going to shop for a used car. They have no detailed way to get timely comprehensive information about what cars are available at their preferred dealership and compare to the competition. Also, the same goes for their financing options. What about the user reviews and car history reports we have become accustomed to consulting? What is their trade worth? All those resources are more difficult, time-consuming, or out-of-reach for someone without good IT resources. This digital divide puts them at a real disadvantage if they are needing this car. Likely they will go to the most convenient dealership and have only the limited choices on the lot. Not knowing the going price for the type of vehicle they are interested in puts the buyer on the defense and there is a greater chance that they will overpay for a unsatisfactory model that was financed at a greater cost because of the limited knowledge and options.

However, the mobile computing movement largely through wireless phone companies have helped to incrementally bridge the gap. I have seen people that would not touch a computer quickly send a text or email a picture via the increasingly more powerful wireless phone. As new models of smart phones continue to take the place of feature phones (dumb phones), the digital divide can be largely overcome. First, most people take phone access for granted. As wireless phones become ubiquitous and inexpensive an entry level model is usually offered free with a contract and serves as a gateway to a wireless connection, than a desire for better features, next comes a keyboard, and and finally a data plan. As these phones become inexpensive mini-computers with many of the features of a full desktop the digital divide can become a relic of the past. Additionally, there is no need to have expensive wired infrastructure investments in developing countries since wireless is now the future global standard and that is where the investments are being made.

How can IT enhance mass customization?

IT has played a pivotal role in the mass-customization industry that is common today. Without the technology that enables customers to visualize their options through a website and the globalization 3.0 infrastructure that allows companies to manage their products and offerings, mass-customization would be difficult and costly to deploy in the ubiquitous manner now experienced.

Mass-customization is the method of "effectively postponing the task of differentiating a product for a specific customer until the latest possible point in the supply network." (Chase, Jacobs, Aquilano, 2006, p.419).

This is largely made possible through IT systems that allow the customer to order a base product that is mass-produced such as a My-Touch from T-Mobile and add a personalized design to the phone exterior, selected apps, or other features, and it is through the same IT system which enables customers to "try out" a design at their convenience before committing to the order. For example, the website invites you to "Imagine being able to create a phone as individual as you are. One that you can make completely your own —inside and out—with dynamic apps, one-of-a-kind home screen themes and exterior shells and gel skins." The advertisements for the phone emphasize this personalization by showing such diverse personalities as Whoopi Goldberg and Phil Jackson that have each customized their own phone.

Another company that has employed the mass-customization concept is Disney. Instead of a product, Disney mass-customizes the type of experience you are willing to design. When you buy your ticket to the park it is a base ticket. Then you can add features just as you would to a Dell laptop or a Nissan Cube. Maybe you would like to stay on one of the many resorts or add a dining plan to better suit your vacation dreams. There are many other additional choices you can make such as stay length, park-hopper, in-room flowers, have a cake ordered or a special fireworks cruise. You can even have lunch with one of the Imagineers. The options for customization are quite vast and are limited only by your fiscal resources. This gives each customer the ability to design the vacation package that will extract the most value for their families needs, which helps Disney provide the experience that each guest is expecting.

A third example is the new Coke vending machine, Freestyle, that can hold more than 100 sodas. The new fountain is like an ink printer with space for hundreds of cartridges. Each cartridge contains a concentrated formula of ingredients. When you press your choice, say Diet Coke, the machine will tell cartridge 12 to release three squirts, cartridge 81 two squirts and so on, then it combines it with carbonated water and you get the same drink as old machines. According to Fast Company, Freestyle machines are currently being tested in Georgia, California, and Utah and Coca-Cola has said it plans to place 60 test dispensers around the country by the end of the summer.

Finally, mass-customization has allowed business to hold on to the product rule, Hotelling’s Law, that states it’s natural and rational for businesses to make their products as similar as possible for cost effective reasons, while also taking these very similar base products and allowing the customer to "make it their own" by adding features they want at the moment of purchase. As technology continues to advance, I think that we will soon have something like a replicator as featured in STTNG.

What role does the organizational culture play in IS investments?

I think organizational culture plays a very large part in any aspect of an organization including IS investment. Organizational culture is the psychology, attitudes, experiences, beliefs and values that are shared by the people within the organization and may or may not mirror the corporate culture. The culture that is present in an organization should be reflective of the strategy and goals of the organization and be supportive of the corporate culture, however this is not always the case. Organizational culture is not easy to change quickly as it has developed over many years, so it would be difficult to suddenly value some attribute that wasn't highly thought of before even if it is suddenly supported by management and business needs.

For example, I'm currently working on a project with a company that does not have a culture that supports and values innovative approaches to its operational challenges. The result is that there is an extra hurdle to overcome to justify new improvements like a computerized purchasing system because these types of improvements are not seen as necessary by the culture. The IS change is viewed with disdain and skepticism among the staff and even some management. The result is that it is going to be much more challenging to obtain buy-in and wide support for the project, and this could have negative impact and may delay implementation or impair the success of the system overall.

However, in companies like Harrah's, which has a culture that is innovative and technologically astute, it becomes much easier to deploy new technologies such as the interactive mobile gaming platform or the customized CRM capabilities metioned in the video that provide individualized content and special offers based on the customers preferences and spending habits. Harrah's is continuously striving to provide richer gaming experiences for their guests over the entire enterprise and must be innovative to differentiate themselves from other entertainment providers, even testing new innovations internally to obtain feedback from guests and employees. This aspect is part of their organizational and corporate culture and supports and welcomes new IS ideas and investments.

Another example come from Jonathan Heiliger, vice president of technical operations at Facebook when he mentions a way that innovation is supported institutionally by conducting nighttime "hack-a-thons" every other month to encourage new applications or features during off hours. Through this process a new chat app was developed and added to FB which allows users to conduct chat sessions during their time online. It is through the supportive organizational culture which embraces new IS investments and innovations that has enabled Facebook to grow to over eighty million users today.

In short, organizational culture provides an great deal of influence in any business decision including IS investments. It is very important for management to consider the culture and how it will impede or assist the IS investments within the organization.

The role of organizational culture in IS investments

What role does the organizational culture play in IS investments? Is this something that can be easily adjusted when necessary? Why or why not?



I think organizational culture plays a very large part in any aspect of an organization including IS investment. Organizational culture is the psychology, attitudes, experiences, beliefs and values that are shared by the people within the organization and may or may not mirror the corporate culture. The culture that is present in an organization should be reflective of the strategy and goals of the organization and be supportive of the corporate culture, however this is not always the case. Organizational culture is not easy to change quickly so it would be difficult to suddenly value some attribute that wasn't highly thought of before even if it is suddenly supported by management and business needs.

For example, I'm currently working on a project with a company that does not have a culture that supports and values innovative approaches to its operational challenges. The result is that there is an extra hurdle to overcome to justify new improvements like a computerized purchasing system because these types of improvements are not seen as necessary by the culture. The IS change is viewed with disdain and skepticism among the staff and even some management. The result is that it is going to be much more challenging to obtain buy-in and wide support for the project, and this could have negative impact, delay implementation, and may impair the success of the system overall.

However, in companies like Harrah's, which has a culture that is innovative and technologically astute, it becomes much easier to deploy new technologies such as the interactive mobile gaming platform or the customized CRM capabilities metioned in the video that provide individualized content and special offers based on the customers preferences and spending habits. Harrah's is continuously striving to provide richer gaming experiences for their guests over the entire enterprise and must be innovative to differentiate themselves from other entertainment providers, even testing new innovations internally to obtain feedback from guests and employees. This aspect is part of their organizational and corporate culture and supports and welcomes new IS ideas and investments.

Jonathan Heiliger, vice president of technical operations at Facebook mentions a way that innovation is supported institutionally by conducting nighttime "hack-a-thons" every other month to encourage new applications or features during off hours. Through this process a new chat app was developed and added to FB which allows users to conduct chat sessions during their time online. It is through the supportive organizational culture which embraces new IS investments and innovations that has enabled Facebook to grow to over eighty million users today.

IT Doesn't Matter...Really?

What Carr is talking about is the IT that is infrastructural technology not proprietary technology. Carr is stating that many organizations confuse infrastructural technology as proprietary technology, especially during the years of the build-out phase which install the greatest amount of this infrastructural technology such as desktop computers, enterprise software, LAN's and the Internet. This build-out leads to standardization, falling prices and greater accessibility, but not strategic advantage for organizations.

Carr states that this trend mirrored the buildup of other types of infrastructure such as highways, railroads and power grids. IT has become a commodity just like these early technologies, although the early adopters initially gained the first mover advantage in the marketplace, these opportunities are largely gone since most of the technologies are available to all the players just like the power grid and the Internet.

Carr is not saying that proprietary IT does not matter to modern companies, only the infrastructural technology which is available to the entire market. I think that the catchy title was his way of getting every one's attention. Proprietary IT such as Apple's iTunes's store or Google's search system are a key differentiating element of their success and Carr is not talking about this type of IT investment. Carr also uses Dell and Wal-Mart as an example of companies that let others invest in the new systems that hold promise as well as risk, and invest when standardization, best practices and lower costs have taken effect.

I agree with Carr's major idea, that IT investment has been over emphasized and too much has been spent in new technologies that really don't improve the profitability or strategic position of the company. Too much investment can actually be bad as witnessed during the dot-com and real estate bubbles of recent years. I especially agree with the new rules for IT managers, spend less (even more important now), follow, don't lead (leading is expensive and risky), and focus on vulnerabilities not opportunities (your bank website being down for several days).