JOHN M. JORDAN is a clinical professor in the Department of Supply Chain and Information Systems at the Smeal College of Business, Penn State University, where he teaches IT strategy to undergraduates, MBAs, and executives. His research focuses on emerging technologies and their impact on business strategy, design, and practice.

• Preface xvAcknowledgments xixSection I Foundations 1Chapter 1 Introduction 3Cognition 4Innovation 6The Macro Picture 8Earthquakes Every Year 11Themes 18We’ve Seen This Movie Before 21Notes 23Chapter 2 Demographics 25Is There a “Net Generation”? 26Digital Natives 28Millennials at Work 29Behavior and Expectations 30Looking Ahead 30Notes 33Chapter 3 Behavioral Economics 35Challenges to Economic Man 35Behavioral Economics in a Networked Age 37Looking Ahead 40Notes 41Chapter 4 Information Economics 43Information Goods 44Pricing Information: Versioning and Bundling 46Network Effects 48Lock-in 49Looking Ahead 50Notes 55Chapter 5 Platforms 57Strategic Levers 60Looking Ahead 63Notes 63Chapter 6 Power Laws and Their Implications 65A Bit of History 65Long-Tail Successes 67Cautionary Tales 67Facts of Life 68Implications 69Looking Ahead 70Notes 71Chapter 7 Security and Risk 73Landscape 73Information Space Is Neither Average nor Normal 75People Systematically Misestimate Risk 76Doing It Right 77Looking Ahead 81Notes 81Section II Work and Organization 83Chapter 8 A Brief History of Organizational Innovation 851776: Division of Labor 851860–1890: Railroads and the Rise of Administration 861910: Scientific Management and the Further Division of Labor 871930s: Alfred Sloan at General Motors 881937–1981: Transaction Costs 881980s: Economies of Scope and Core Competencies 891995: Linux as “Commons-Based Peer Production” 902000: Offshore 91Looking Ahead 91Notes 92Chapter 9 Firms, Ecosystems, and Collaboratives 93Emerging Nonfirm Models 93Distributed Capital 98Looking Ahead 100Notes 101Chapter 10 Government 103The Biggest Employer 104Government Hiring at a Crossroads 107Inevitable Downsizing 108Government on the Technology Landscape 110Looking Ahead 112Notes 113Chapter 11 Crowds 115Crowdsourcing: Group Effort 115Information Markets and Other Crowd Wisdom 119Varieties of Market Experience 122Looking Ahead 123Notes 124Chapter 12 Mobility 127Bottom Up 127Search Costs 130Supply Chain Efficiency 130Mobile Phone Industry Impact 131Risk Mitigation 132Apps for Change 133Looking Ahead 136Notes 137Chapter 13 Work 139The Big Picture: Macro Trends 139Where 141Outputs 143Skills 144Work 146Looking Ahead 149Notes 150Chapter 14 Productivity 153Classic Productivity Definitions 154Services Productivity 155Services Productivity and Information Technology 156Information Technology and Unemployment 158Looking Ahead 159Notes 160Section III Business Model Disruption 161Chapter 15 Business Model Overview 163Definition 164Changing Minds, Changing Models 165Disruptive Innovation 166Disruptive Innovation as Paradigm Shift 168Looking Ahead 168Notes 169Chapter 16 Data and Communications 171Evolution of the Incumbent Business Model, 1877–1996 171Business Model Disruption, 1996–2010 174Implications of “Stupid” Networks 177Looking Ahead 178Notes 178Chapter 17 Software Business Models 179Incumbent Model Pre-2000 179Business Model Disruption after 1998 181Looking Ahead 187Notes 188Chapter 18 Music Business Models 189Incumbent Model Pre-2000 189Business Model Disruption Pre-Napster 192Business Model Disruption Post-Napster 194Looking Ahead 197Notes 198Chapter 19 News 199Incumbent Formula Pre-2005 199Business Model Disruption 203Looking Ahead 205Notes 207Chapter 20 Healthcare 209Definitions 210Healthcare as Car Repair for People? 211Following the Money 212Where Information Technology Can and Cannot Help 214Disruptive Innovation 216Looking Ahead 219Notes 220Chapter 21 Two Disruptions that Weren’t 221Retail 221Real Estate 227Notes 229Section IV Technology Landscapes 231Chapter 22 Code 233Intangibility 234Fungibility 235Code Embeds Value Judgments 236Metadata 237Social Metadata 238Looking Ahead 240Notes 241Chapter 23 Sensors 243Historical Roots 243Ubiquity 244Current Examples 246Phones as Sensors 249Looking Ahead 250Notes 251Chapter 24 The Internet and Other Networks 253Legacy Telecom Network Principles 254Defense Origins of the Internet 255Internet Principles 257Consequences of Internet Principles 259Looking Ahead 260Notes 260Chapter 25 Location Awareness 263Variations on a Theme 265Landmarks 266Location, Mobility, and Identity 268Looking Ahead 270Notes 270Chapter 26 Clouds 271Both Technical and Economic Innovation 272Cloud Computing and the Enterprise 273The Cloud Will Change HowResources Are Organized 275Practical Considerations 276Looking Ahead 278Notes 278Chapter 27 Wireless 281Precedents 281The Breakthrough 286Looking Ahead 289Notes 290Chapter 28 Search 291Why Search Matters: Context 291The Wide Reach of Search 294Valuing Search 296Looking Ahead 297Notes 301Chapter 29 Analytics 303Why Now? 304Practical Considerations: Why Analytics Is Still Hard 308Looking Ahead 309Notes 310Chapter 30 Information Visualization 311Supply 311Demand 311Audience 312Definition and Purpose 312Current State 313Looking Ahead 316Notes 317Section V Some Big Questions 319Chapter 31 Identity and Privacy 321Privacy 322Scale 323Invisibility 325Identity 326Looking Ahead 327Notes 329Chapter 32 Communications and Relationships 331Connections 331Networks 336Creation 340Looking Ahead 341Notes 342Chapter 33 Place, Space, and Time 343Virtuality 345Organizations 346Automata 347Implications 348Looking Ahead 349Notes 350Chapter 34 Conflict 351Warfare between Nation-States 351Non-Nation-State Actors 353Emerging Offensive Weapons 357Looking Ahead 358Notes 359Chapter 35 Innovation 361Amazon 361Crowds 367Looking Ahead 369Notes 370Chapter 36 Information, Technology, and Innovation 371Macro Issues 371Globalization 372Strategy 373Organizations 380Marketing 381Supply Chains 385The IT Shop 386Implications 387The Last Word . . . 388Notes 388About the Author 391Index 393

JOHN M. JORDAN is a clinical professor in the Department of Supply Chain and Information Systems at the Smeal College of Business, Penn State University, where he teaches IT strategy to undergraduates, MBAs, and executives. His research focuses on emerging technologies and their impact on business strategy, design, and practice.

• Preface xvAcknowledgments xixSection I Foundations 1Chapter 1 Introduction 3Cognition 4Innovation 6The Macro Picture 8Earthquakes Every Year 11Themes 18We’ve Seen This Movie Before 21Notes 23Chapter 2 Demographics 25Is There a “Net Generation”? 26Digital Natives 28Millennials at Work 29Behavior and Expectations 30Looking Ahead 30Notes 33Chapter 3 Behavioral Economics 35Challenges to Economic Man 35Behavioral Economics in a Networked Age 37Looking Ahead 40Notes 41Chapter 4 Information Economics 43Information Goods 44Pricing Information: Versioning and Bundling 46Network Effects 48Lock-in 49Looking Ahead 50Notes 55Chapter 5 Platforms 57Strategic Levers 60Looking Ahead 63Notes 63Chapter 6 Power Laws and Their Implications 65A Bit of History 65Long-Tail Successes 67Cautionary Tales 67Facts of Life 68Implications 69Looking Ahead 70Notes 71Chapter 7 Security and Risk 73Landscape 73Information Space Is Neither Average nor Normal 75People Systematically Misestimate Risk 76Doing It Right 77Looking Ahead 81Notes 81Section II Work and Organization 83Chapter 8 A Brief History of Organizational Innovation 851776: Division of Labor 851860–1890: Railroads and the Rise of Administration 861910: Scientific Management and the Further Division of Labor 871930s: Alfred Sloan at General Motors 881937–1981: Transaction Costs 881980s: Economies of Scope and Core Competencies 891995: Linux as “Commons-Based Peer Production” 902000: Offshore 91Looking Ahead 91Notes 92Chapter 9 Firms, Ecosystems, and Collaboratives 93Emerging Nonfirm Models 93Distributed Capital 98Looking Ahead 100Notes 101Chapter 10 Government 103The Biggest Employer 104Government Hiring at a Crossroads 107Inevitable Downsizing 108Government on the Technology Landscape 110Looking Ahead 112Notes 113Chapter 11 Crowds 115Crowdsourcing: Group Effort 115Information Markets and Other Crowd Wisdom 119Varieties of Market Experience 122Looking Ahead 123Notes 124Chapter 12 Mobility 127Bottom Up 127Search Costs 130Supply Chain Efficiency 130Mobile Phone Industry Impact 131Risk Mitigation 132Apps for Change 133Looking Ahead 136Notes 137Chapter 13 Work 139The Big Picture: Macro Trends 139Where 141Outputs 143Skills 144Work 146Looking Ahead 149Notes 150Chapter 14 Productivity 153Classic Productivity Definitions 154Services Productivity 155Services Productivity and Information Technology 156Information Technology and Unemployment 158Looking Ahead 159Notes 160Section III Business Model Disruption 161Chapter 15 Business Model Overview 163Definition 164Changing Minds, Changing Models 165Disruptive Innovation 166Disruptive Innovation as Paradigm Shift 168Looking Ahead 168Notes 169Chapter 16 Data and Communications 171Evolution of the Incumbent Business Model, 1877–1996 171Business Model Disruption, 1996–2010 174Implications of “Stupid” Networks 177Looking Ahead 178Notes 178Chapter 17 Software Business Models 179Incumbent Model Pre-2000 179Business Model Disruption after 1998 181Looking Ahead 187Notes 188Chapter 18 Music Business Models 189Incumbent Model Pre-2000 189Business Model Disruption Pre-Napster 192Business Model Disruption Post-Napster 194Looking Ahead 197Notes 198Chapter 19 News 199Incumbent Formula Pre-2005 199Business Model Disruption 203Looking Ahead 205Notes 207Chapter 20 Healthcare 209Definitions 210Healthcare as Car Repair for People? 211Following the Money 212Where Information Technology Can and Cannot Help 214Disruptive Innovation 216Looking Ahead 219Notes 220Chapter 21 Two Disruptions that Weren’t 221Retail 221Real Estate 227Notes 229Section IV Technology Landscapes 231Chapter 22 Code 233Intangibility 234Fungibility 235Code Embeds Value Judgments 236Metadata 237Social Metadata 238Looking Ahead 240Notes 241Chapter 23 Sensors 243Historical Roots 243Ubiquity 244Current Examples 246Phones as Sensors 249Looking Ahead 250Notes 251Chapter 24 The Internet and Other Networks 253Legacy Telecom Network Principles 254Defense Origins of the Internet 255Internet Principles 257Consequences of Internet Principles 259Looking Ahead 260Notes 260Chapter 25 Location Awareness 263Variations on a Theme 265Landmarks 266Location, Mobility, and Identity 268Looking Ahead 270Notes 270Chapter 26 Clouds 271Both Technical and Economic Innovation 272Cloud Computing and the Enterprise 273The Cloud Will Change HowResources Are Organized 275Practical Considerations 276Looking Ahead 278Notes 278Chapter 27 Wireless 281Precedents 281The Breakthrough 286Looking Ahead 289Notes 290Chapter 28 Search 291Why Search Matters: Context 291The Wide Reach of Search 294Valuing Search 296Looking Ahead 297Notes 301Chapter 29 Analytics 303Why Now? 304Practical Considerations: Why Analytics Is Still Hard 308Looking Ahead 309Notes 310Chapter 30 Information Visualization 311Supply 311Demand 311Audience 312Definition and Purpose 312Current State 313Looking Ahead 316Notes 317Section V Some Big Questions 319Chapter 31 Identity and Privacy 321Privacy 322Scale 323Invisibility 325Identity 326Looking Ahead 327Notes 329Chapter 32 Communications and Relationships 331Connections 331Networks 336Creation 340Looking Ahead 341Notes 342Chapter 33 Place, Space, and Time 343Virtuality 345Organizations 346Automata 347Implications 348Looking Ahead 349Notes 350Chapter 34 Conflict 351Warfare between Nation-States 351Non-Nation-State Actors 353Emerging Offensive Weapons 357Looking Ahead 358Notes 359Chapter 35 Innovation 361Amazon 361Crowds 367Looking Ahead 369Notes 370Chapter 36 Information, Technology, and Innovation 371Macro Issues 371Globalization 372Strategy 373Organizations 380Marketing 381Supply Chains 385The IT Shop 386Implications 387The Last Word . . . 388Notes 388About the Author 391Index 393