During our 4th week, we looked at an example of how to assess the expected duration of an advantage due to technology adoption by synthesizing material from Chapter 1 (technology adoption) and 2 (resource based view). Reviewing the discussion on industry structure and its effect on profitability formed the transition to the role of technological innovation adoption on competitive environment (Chapter 3). As I mentioned in the last class update, the special report in the Economist about the effect of financial technological innovation in the banking industry provides an excellent reading on this topic.
In our seminar, we looked at the ROA decomposition as a way of assessing drivers of a firm’s financial performance, and we looked at market to book values as a way of assessing its market valuation. Combining the two of them lets us see what element of ROA seem to drive market valuation.
Topics and Readings for Week 5
Theory: We will look at IT strategy, alignment between IT and business strategy, and payoffs from IT investments.
Read Chapter 3 and revisit the Whirlpool case
Seminar: We will use sentiment analytics as a way of assessing alignment between IT and business strategy.
Read the discussion on sentiment analytics (pp. 397-400) and review the data analytics practice problems 3.9.1 and 3.9.3.
Assignments for Week 5
The fourth online quiz will be a based on Chapter 3 and material from the seminar. The quiz will be available on Friday at 12:30 pm.
You must provide your data set to your auditor no later than June 5th.
