HKU | School of Business

IIMT 2601/BUSI1003
Digital Economy (I)
Prof. Patrick Chau

Yes, it doesnt matter

No, it matters

1. As IT becomes ubiquitous,
they become commodities
2. The only meaningful
advantage most
companies can get from IT
is cost advantage
3. That IT success is highly
replicable as from off-theshelf software

1. New hardware always

come up
2. Synergy of divisions
creates advantages
3. Customized applications
help understand
analytics and create
business intelligence

Prof. Patrick Chau

HKU | School of Business

IT Doesnt Matter A Recap

The Future Market II

What Do You Think???

HKU | School of Business

The Future Market I

Prof. Patrick Chau

Video for Thought

Prof. Patrick Chau

http://www.youtube.com/watch?v=ETVAlcMXitk
4

HKU | School of Business

A Brief History of IT/Computer

So Much and So Fast

Prof. Patrick Chau

Revolution in Evolution
Computers really took off with the
invention of micro-processors (from ICs,
integrated circuits) by Intel and PCs
(personal computers) by Atari, then Apple,
which was around 1970s

HKU | School of Business

The Journey to 1 billion PCs

Prof. Patrick Chau

Some Big and Important Trends

Moores Law (1965)

HKU | School of Business

Gordon Moore (Intels Founder)

# of transistors on a chip doubles every
18/24 months

HKU | School of Business

Prof. Patrick Chau

Prof. Patrick Chau

Information Technology and

Information Revolution
Technology progresses at a fast pace
that any of us at any point in time
cannot imagine

HKU | School of Business

For the last 20 years, the power of PC has

increased by more than 10 thousand times
Yet, price has dropped very significantly

Prof. Patrick Chau

If cars had developed as

fast as PCs for the last
20 years, we could buy a
Rolls-Royce at $_______
2.75
(vs USD320,000) and it
could run
2,000,000
_____________Km
with
1 liter of gas. (Jeffrey Rayport,
Harvard Business School)

10

HKU | School of Business

IT Revolution in Perspective

Prof. Patrick Chau

Some Implications

Everyone expects fast check-outs at supermarkets

No more searching for coins in front of vending machines, for taking a
bus, MTR, etc.
More online shopping and door-to-door deliveries
More e-banking, e-pay, e-channel, e-crimes, e-everything

Can or how businesses accommodate these demands

unlimitedly, especially when we are living in todays
Internet world?

11

HKU | School of Business

Faster computers, more sophisticated software,

more fancy games and interfaces, more sophisticated
graphics with excellent sound quality
Convenience becomes the norm, rather than
something extra

Prof. Patrick Chau

https://www.youtube.com/watch?v=vvrnG2Gn-pg

14

HKU | School of Business

Born for the Internet ???!!!

Teaching at Harvard Law School

What Do You Think???

HKU | School of Business

Bank of the Future

Prof. Patrick Chau

Video for Thought