MIS 3305 - Wade - Test 2
Blockchain
A distributed and decentralized ledger that records and verifies transactions and ownership
7 emerging technologies
-Engineering Agility -Gen AI infusion -Security as an integral strategy -Multi-Cloud And Consumption Optimization -Green Software -Tech Debt -Quantum Computing
Ad formats
-display (or image) ads -rich media ads -interstitials
Internet of Things (IoT)
Connected devices in industrial environments can monitor machinery, predict maintenance needs, and order spare parts without human involvement
Ad purchasing
cost-per-click (CPC) cost-per-mile (CPM) cost-per-action (CPA) affiliate program
Cryptocurrencies
o A digital asset where a secure form of mathematics is used to handle transactions, control the creation of additional units, and verify the transfer of assets.
Subscription Services
o AI systems managing home utilities (such as smart thermostats) can adjust heating or electricity consumption and subscribe to services based on energy usage patterns.
Deliberate misinformation and deception
o AI's ability to draft fluent, convincing text and compelling, realistic images has made it a must-have tool in the deceiver's toolkit. o deepfakes: Sophisticated media (audio, image, video) created by AI that attempts to look or sound like a real person or event. o Presenting generative AI outputs as your own work.
AI "generating" security risks
o An AI can memorize sensitive data and inadvertently leak or expose data to others, opening the firm to significant business and legal risk. o A related risk is so-called prompt-injection: Compromising generated AI by entering prompts that cause it to behave in unintended ways. o Another concern is data poisoning: Deliberately feeding incorrect data to an AI so that it generates incorrect results.
Bitcoin
o An open-source, decentralized payment system that operates in a peer-to-peer environment, without bank or central authority.
· GenAI will be used to enhance work in at least three different ways:
o Automating some structured tasks in a way that reduces cognitive load. o Tackling unstructured tasks in ways that boost worker cognitive capacity. o As a tool to improve learning.
Tech Debt If you get this right
o Balance value and cost of your IT estate o Other teams able to use tools & apps that a different part of the organization has solved for o Less maintenance for apps and tools that are not your core business
Engineering Agility What we are seeing
o Companies accumulate process & technical debt as they scale impeding agility and speed o The standard user story by itself is no longer enough to measure impacts - user stories must be combined with measurable Business, Financial and Operational outcomes, which will help engineers experiment & validate that their work achieves these goals o The entire chain of command from Product Strategists to Developers must be communicating, ensuring strategy, roadmaps and actual development are in alignment o Engineering activities should be aligned to outcomes measured by value - Value Stream Mapping being a technique that can help
Green Software If you get this right
o Create a more sustainable IT / tech platform that benefits the environment o Reduce costs (when driving for efficiency) o Sustainable businesses attract both the increasingly eco-minded consumer and conscientious engineers (brand)
Smart Devices
o Devices like smart refrigerators can monitor food levels and automatically reorder groceries when supplies are low.
Multi-Cloud And Consumption Optimization What we are seeing
o Driving optimization and efficiency in a single cloud is crucial but managing multiple clouds (MAGs and SaaS) makes it even more essential o As S&P companies scale, the management of cost and consumption (pay-as-you-go/subscription costs) becomes more important, and this is where Finops will play crucial role o The reasons for multi-cloud being a trend are: § - Push - companies are being pushed into adopting multi-cloud because of acquisitions § - Pull - companies wanting multi-cloud as a strategy to reducevendor lock-in, increase reliability and keep price flexible § - SaaS - easy to buy and integrate SaaS solutions to solve specific business problems
discrimination and bias
o Facial recognition systems built using data with mostly Caucasian faces have been shown to be weaker in identifying people of color. o The AI-based pedestrian detection system used in many self-driving cars has also been shown less likely to detect both children and people of color
Gen AI infusion What we are seeing
o Generative AI has become a top priority for the C-suite and has sparked tremendous innovation in new tools beyond foundation models o The impact of Gen AI would grow as enterprises discover more innovative applications for technology in work & life o S&P companies are being observed leveraging GenAI to improve their offerings, enhance customer experiences, & add value to existing products & services to stay ahead of the competition in the fast-paced digital space o Risk involved in GenAI is rapidly growing as technology is getting more investment for training the model. Threats such as bias, accuracy IP copyright, Cyber security & fraud are some of the risk associated with Gen AI
Tech Debt What we are seeing
o In fast growth environments, tech teams are empowered to make their own decisions to drive business growth o Pushing decision making further down the organization has a lot of benefits, but also side effects, such as: o Decisions on IT applications and tooling are made in silos, leading to the same challenges being solved in multiple ways across different teams, increasing IT debt o A preference to "build" vs "buy" in an engineering culture leads to tools and apps being built to achieve value, when an off-the-shelf solution / open-source tool would still add value, solve across teams and be cheaper overall to maintain o The impact - harder to maintain apps and tools in the IT space, leading to more resources required to maintain them o Architecture governance and ownership can help manage IT deb
Automated Trading Systems
o In financial markets, AI-driven trading bots can make independent buy or sell decisions based on market trends, without human oversight.
Gen AI infusion If you get this right
o Increase Productivity of tech team o Provide an innovation platform for the workforce to be able to do their work o Personalized marketing campaigns, and predict customer churn o Deeper visibility of data, such as customer transactions and potentially faulty software code
Multi-Cloud And Consumption Optimization If you get this right
o Increase in variety of features & capabilities available to use o Reduce Cloud/SaaS consumption costs o Improved compliance o Improved reliability, availability scalability o Reduce vendor lock-in
Hallucinations
o Individuals who buy into the truthfulness of AI answers without fact checking could be making terrible errors. o Tesla AI "Phantom Braking"
Green Software What we are seeing
o Internet Infrastructure is not green. Data centers store all information to the cloud and the construction of these enormous buildings is accelerating o Some data centers are unheated and run on renewable energy, but the majority are coal-powered facilities being chilled by giant refrigerators in the middle of the desert o Technologies, like containerization, can increase server utilization rates and improve service reliability while simultaneously lowering operational costs. The application performs better with less hardware - meaning it reduces the overall carbon footprint.
Security as an integral strategy If you get this right
o It safeguards IT and business assets from cyber threats by embedding security practices into all aspects of software & platforms. o It ensures that security measures align with regulatory requirements helping to manage and mitigate risks effectively. o Increased consumer trust in an increasingly hostile environment
Job shocks
o Most organizations face an immediate educational need regarding AI in the workforce. o Most also spend money, time, and other resources on ensuring that employees are aware of AI's risks as well as how AI can be used in their current roles. o Beyond that, AI's impact on industries is unknown.
Engineering Agility If you get this right
o Products closely aligned with strategy o Increased agility and reduced go to market time o Highly customizable, on-demand products
Security as an integral strategy What we are seeing
o Security as an integral strategy in the Software & Platforms industry involves seamlessly integrating security practices into every aspect of software development and deployment o Security should be applicable to all architecture layers and guiding principles is used to achieve secure Products & Platforms o Security architecture framework is a set of consistent guidelines and principles for implementing different levels of an enterprise security architecture o Organization with a robust security architecture can effectively prevent and detect attacks while ensuring compliance with regional and industry regulations.
Generative AI and the Future of Work
o Synthesis and summary generative AI is helping firms synthesize: § Large amounts of information § Pulling out relevant points and examples § Providing background research and generating summaries o Creative work and brainstorming § one way we're seeing it in the workplace is as a brainstorming tool. o Education, training, and quality improvement § can use an AI trained on emerging topics to quickly come up to speed on changes and gain new skills. § Can examine a knowledge worker's output, identifying errors and offering solutions and alternatives.
AI: A master teacher in causing harm- We now have a terrorist's trifecta:
o Vast amount of digital data o Increasing number of ever-more user-friendly AI technologies o Community of miscreants sharing information on bypassing an unpredictable number of ways to cause harm
Copyright and AI: Very uncertain terrain
o Who is at fault if a firm uses results that were scraped from the Internet and inadvertently include copyrighted images? o Can firms protect proprietary assets from use in GenAI? o If firms use a code generator that returns copyrighted code, who is at fault?
McNamara Fallacy
o basing decisions based on past data and examples, o is especially risky when dealing with disruptive innovation
Innovator's Dilemma
o describes the challenge that successful companies face when dealing with disruptive technologies or innovations. o arises when established companies, focused on maintaining and improving their existing products and services to meet the needs of their most profitable customers, overlook or underinvest in new, disruptive technologies.
Bitcoin and Blockchain: How it works
§ Bitcoins are transferred from person to person like cash. § Transactions are recorded in blockchain, a distributed, decentralized public ledger. § Verification and timestamping of transactions is performed by a pool of users called miners. § No one can transfer the asset without a special password called a private key, usually stored in a cryptocurrency wallet, which is really just an encrypted holding place. § Passwords are virtually impossible to guess, and verification makes sure no one spends the same bitcoins in two places at once.
Concerns of Bitcoin and blockchain
§ Consumer benefit needs to be stronger § Difficult to understand/use technology § Has bad reputation (drug dealers, tax evaders, etc.) § Firms have struggled under an ambiguous cloud of not knowing how they will be regulated and what legal issues apply § Volatility § Security § transaction volume § Is it an investment or a form of currency (or both?)
Benefits of Bitcoin and blockchain
§ Eliminates transaction fees. § Used for international commerce without delay or transaction fees. § Crypto also opens up the possibility of micropayments (or small digital payments) that are now impractical because of fees. § Cryptocurrencies could also be a boon for international commerce, especially for cross-border remittance and in expanding e-commerce in emerging markets. § Straddles the line between transparency and privacy. § Blockchains have no single controlling entity where fraud, corruption, damage, hacking, or government shutdown could occur. § Blockchains are a standard for securely exchanging value and recording ownership over the Internet without an intermediary
4 practical applications of blockchain
§ Financial industry · Asset management · Insurance claims processing · Cross-border payments § Smart contracts · Entertainment, healthcare, government § Digital Ids · Identity verification · Secure identities for the Decentralized web Blockchain enabled iot Information analysis
tracking URL
· A URL that includes additional information appended to the end, which allows activity to be tracked. · A URL might be expanded to include tracking URL code to do things like track if an article is shared, or if a link has been clicked on from within a social media site feed
data lake
· A catch-all term for storage and access technologies used in Big Data.
first-party cookies
· A cookie that is assigned by the website that a browser is currently visiting.
affiliate program
· A cost-per-action program, where program sponsors pay referring websites a percentage of revenue earned from the referral.
Cookie
· A line of uniquely identifying text stored by a web browser. · can only be retrieved by the web server that assigned the cookie. · Once a firm can track you with cookies, it can use its cookies in multiple ways o Advertising § Storing persistent shopping carts that hold value even if you haven't checked out o Holding user IDs o In low security situations a site may attach a cookie to a password so you can be recognized during your next visit without logging in. Weather site can match cookie they gave you to a zip code you enter
MAC address
· A media access control address, which is a factory assigned unique device identification number for any network connection.
cost-per-action (CPA)
· A method of charging for advertising whenever a user responds to an ad by performing a specified activity, such as signing up for a service, requesting material, or making a purchase.
global positioning system (GPS)
· A network of satellites and supporting technologies used to identify a device's physical location.
geofencing
· A region- or perimeter-defined geography used to recognize if a device is within a location.
virtual private network (VPN)
· A service that creates a private connection across the public Internet, encrypting transmission, and making your Internet communication appear as if it is connected to the organization that provides VPN software. · If you are a college student and your campus has a VPN, once you set up a connection, the Internet will assume you are on campus, with an IP address provided by your university
data warehouse:
· A set of databases to support decision-making in an organization. · Structured for fast online queries and exploration. Collects data from many different operational systems
line-of-sight
· A signal must have an obscured pass from source to receiver for this technology to be accurate. GPS is an example
generative AI
· A type of AI where a request is provided (usually via text) and the AI generates some sort of creative output. · guided by user input, known as prompts: A request made to generative artificial intelligence systems.
supervised learning
· A type of machine learning where algorithms are trained by providing explicit examples of results sought, like recognizing products that are defective versus error-free, or stock price.
IDFA (Identifier for Advertisers)
· A unique identifier that iOS developers use to track in-app activity. With iOS 14.5, Apple began requiring developers to specifically gain customer approval before IDFA is enabled for tracking. Since IDFA is built into iOS software, it's impossible for firms to circumvent and still gain approval to offer an app via the App Store.
IP address
· A value used to identify a device that is connected to the Internet. IP addresses are usually expressed as four numbers (from 0 to 255), separated by periods.
AI Risks
· Abuse and misuse · Power and concentration · AI "generating" security risks - discrimination and bias · Hallucinations · Deliberate misinformation and deception · AI: A master teacher in causing harm- We now have a terrorist's trifecta: · Copyright and AI: Very uncertain terrain · Job shocks
interstitials
· Ads that run before a user arrives at his or her intended destination in a website or app.
ad networks
· An effort that links advertisers to websites and other content providers (e.g., app firms, games) that are willing to host advertisements, typically in exchange for payment.
ATT (App Tracking Transparency)
· Apple's opt-in privacy framework that requires all iOS apps to ask users for permission to share their data.
Disruptive Innovation
· Challenge incumbent businesses · Creates a new market and value network · Value network are those internal and external connections that an organization interacts with · Technology alone does not create disruption. Technology combined with an organization's business model can · Example: Netflix to Blockbuster, Uber to Taxi's, Airbnb to hotels, etc.
third-party data
· Collected by a company that has not had the customer explicitly enter a relationship with them
first-party data
· Collected by a firm through customer interaction, rather than data that is explicitly provided by the consumer. An example might be profiling data gleaned by a news site as a customer browses articles.
artificial intelligence
· Computer software that can mimic or improve upon functions that would otherwise require human intelligence.
Green Software
· Consumers and business are seeking to interact with environmentally conscious organizations. IT and Tech will need to enable this
third-party cookies
· Cookies that are served by an entity that is not the firm that owns the web page that you are visiting
Basic considerations in corporate data privacy and protection policies
· Data collection—What data is collected? How will it be used? · Data storage—How is data stored? Organizations should anonymize data whenever possible so that a breach will not reveal personal information. · governance: The process to monitor and control an organization's information technology and systems. · Data access and governance—Who has access to data? Employees should only see the data they need to do their job. · data compliance: Ensuring that organizations follow requirement for data protection and security
information
· Data presented in a context so that it can answer a question or support decision-making
second-party data
· Data that is collected by one firm and shared with a partner organization. One example might be if you use a branded credit card, like the Chase United Airlines Visa.
zero-party data
· Data that the customer explicitly shares with a firm. An example is data gathered when a customer signs up for an account.
data mart
· Database or databases focused on addressing the concerns of a specific problem or business unit. Marts and warehouses may contain huge volumes of data.
Engineering Agility
· Enabling engineering teams to balance speed, consistency, quality and being business outcomes focused · Organizational, cultural and mind set flexibility to get products to market faster, increase value to customers and increase profitability
ETL
· Extract, Transform, Load—copying data from multiple, disparately organized data sources, transforming (or cleaning) the data into a common format, and loading it into a combined usable format.
Tech Debt
· Fast growth can lead to an unmanaged/over- complicated IT estate. Much like tech debt, IT debt needs to be proactively managed
Simplified explanation for how LLMs are created
· Foundation model is built. o Good at breaking apart text and creating multitiered relationship between the individual elements of texts. · Identify these multitiered logical relationships as well as concepts like style and context. · Trained LLM, which understands how to: o Break apart language o Weigh relationships it identifies o Come up with a complex, multifaceted, nuanced response that can consider words, context, style, and more
click-fraud
· Generating bogus clicks, either for financial gain (enriching fraud), or to attack rivals by draining their online ad budgets (depleting fraud).
Europe has strict privacy laws which include:
· Governing provisions that limit data collection. · Requiring notice and approval of many types of data collection. · Requiring firms to make data available to customers with mechanisms for stopping collection efforts and correcting inaccuracies at customer request. · In the past few years, European regulators, in particular, have become much more aggressive in fining organizations that ignore the region's privacy protections. -GDPR
display (or image) ads
· Graphical advertising (as opposed to text ads).
Trends in RPA
· Hyper automation o Combining RPA with other tools like AI, ML, and process mining. · Increased Adoption o More industries exploring RPA, including SMBs. · Cloud-based RPA o More organizations are adopting cloud-based RPA solutions for scalability. · Low-code Platforms o Growth in low-code/no-code tools to allow non-technical users to build bots.
Geotargeting
· Identifying a user's physical location (sometimes called geolocation) for the purpose of delivering tailored ads or other content.
Sustaining Innovation
· Improve existing (incumbent) products that customers are eager to buy · Do not create new markets · Making better products at higher profit margins · Examples: Tesla's battery improvements, iPhone versions, new flavors of drinks or candy, etc.
US privacy laws
· In the United States, the Health and Human Services Office for Civil Rights has expanded the definition of personally identifiable health information and has restricted its use in certain marketing technology. · The rise was prompted by the flood of online mental health apps and telehealth services. · As a result, the Federal Trade Commission has begun more aggressively fining telehealth companies that violate customer privacy.
Factors driving online ad growth trends
· Increased user time online · Improved measurement and accountability · Targeting · Impressions o Each time an ad is shown to a user. · Many online ad payment schemes are directly linked to ad performance. · Despite the growth, digital advertising is in a state of flux. o Long-standing technologies used to track users are going away. o New laws
Fingerprinting
· Information collected about a remote computing device for the purpose of identification.
knowledge
· Insight derived from experience and expertise (based on data and information)
tracking pixels
· Invisible single pixel images that are served on an individual Web page, e-mail, or other online service and can tell if a user has visited that page, opened the mail, played the game, etc. · retargeting: Sometimes called remarketing, lets a website show custom, targeted ads to a user when visiting other sites if that user has already visited a given page on the advertiser's site
Limitations of RPA
· Limited to Rule-Based, Structured Tasks o Struggles with tasks requiring judgment or dealing with unstructured data. · High Maintenance o Bots are fragile and require frequent updates when systems or processes change. · Initial Cost and Complexity o Implementation can be expensive and time-consuming. · Lack of Cognitive Abilities o Cannot learn from data or optimize processes on its own. · Scalability Issues o Expanding RPA across complex or multiple systems can be challenging.
self-supervised learning
· Machine learning where data is not explicitly labeled and doesn't have a predetermined result.
Multi-Cloud And Consumption Optimization
· Managing the costs of the clouds in place and utilizing more clouds to prevent lock-in, drive innovation and increase reliability
Key Features/benefits of RPA
· Non-intrusive technology that works on the front end of systems. · Scalable solutions that can work across multiple applications. · Cost-effective and fast implementation. · Improves accuracy, speed, and compliance. · It can run 24 hours a day
rich media ads
· Online ads that include animation, audio, or video.
Quantum Computing
· Quantum computers have the potential to disrupt nearly every industry, so people, companies, and governments are taking notice as the practicality of these machines improves · technology based on the principles of quantum mechanics—is increasingly attracting the interest of automotive, retail, and distribution networks because of its ability to efficiently solve complex problems. · The goal of a driverless supply chain, where all aspects of end-to-end activities - planning, sourcing, production, logistics, services, and the ability to respond to risks with rapid re-planning - are optimized for a single global objective across an organization, and via efficient simulation.
Robotic Process Automation (RPA)
· RPA is a technology that automates repetitive, rule-based tasks traditionally done by humans. · It involves software bots that mimic human interactions with digital systems. · RPA is used in industries such as finance, healthcare, manufacturing, and IT
Gen AI infusion
· Rapidly adapt to the use of Gen AI across various realms of the enterprise enhancing the productivity and customer experience
data
· Raw facts and figures
Security as an integral strategy
· Security should be applied at all architectural layers by design, appropriate with their value for the enterprise and sufficient to contain risk to an acceptable level.
cost-per-click (CPC)
· Sometimes also referred to as PPC or pay-per click · a concept where advertisers don't pay unless someone clicks on their ad.
cost-per-mile (CPM)
· The amount charged every time an ad appears 1,000 times.
Big Data
· The collection, storage, and analysis of extremely large, complex, and often unstructured data sets that can be used by organizations to generate insights that would otherwise be impossible
proxy servers
· Third-party computers that pass traffic to and from a specific address without revealing the address of the connected users.
Disruptive technology
· create market shocks and catalyze growth (also referred to as disruptive innovation). · two characteristics: o Come to the market with set of performance attributes existing customers don't value. o Over time, performance attributes improve to the point where they invade established markets.
GDPR (General Data Protection Regulation
· poorly implemented regulation is the · Web-surfers worldwide were bombarded with requests to accept cookies, which made it less secure.
Key points of the Innovator's Dilemma
§ 1.Disruptive Technologies: These innovations are initially inferior to the current technology but offer advantages like lower cost, simplicity, or convenience in a niche market. § 2.Incumbent Firms: Successful companies tend to focus on incremental improvements and satisfy their most profitable customers, leading them to ignore disruptive innovations. § 3.New Entrants: Smaller or new companies, less tied to existing customers or business models, often adopt disruptive technologies and grow quickly as the innovation improves. § 4.Market Shifts: Over time, disruptive technology may become good enough to serve the broader market, leaving incumbents scrambling to adapt.
