BUS 5114 Discussion Forum Unit 2 - MIS PDF

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BUS 5114- Discussion Forum Unit 2 Management Information Systems and Technology...

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Discuss the implications of Moore’s law and faster, cheaper computing on a firm’s ability to create a sustainable competitive advantage. Introduction: Moore’s Law was named after the engineer Gordon E. Moore, who predicted that the number of transistors on a microchip would double every eighteen months resulting in more powerful and cheaper devices. Moore’s Law has economic and industrial implications that can create a sustainable competitive advantage (Gallaugher, 2015). Industry implications: Moore’s Law suggests that with the advancement of technology, new industries and products are being created. This means that firms should recognize new technologies to keep up with the development to avoid falling behind. This can be achieved by studying trends and paths to dodge recession. These advancements can also result in competition between companies in different industries, such as what happened between Walkman and Apple. Due to the evolvement of technology, Apple introduced a new product to the market, the iPod. The iPod is a small device that can hold up to 1000 songs; this invention resulted in competition between both companies. Later on, a newer and cheaper version of iPod with forty times more storage capacity was introduced to the market, overtaking most of the market share from Walkman. This was a result of Walkman’s reluctance to adapt to the advancement of market technologies. Apple had a competitive advantage over Walkman as they used technology to develop new products that are smaller, easier to carry around and improved based on new advancement (Gallaugher, 2015). Economic implications: Computing devices continue to grow in complexity and power in addition to evident cost reduction in their prices for both customers and manufacturers (Gallaugher, 2015). When technology becomes cheaper, more people buy them as a result of price elasticity. This results in increased access to computer devices by the general public (Investopedia, 2021). However, firms should be mindful of the fast advancement of chip-based devices and only produce an adequate supply to satisfy the demand to ensure they do not fall behind technology advancements by having excessive inventory. Besides, managers should be aware of the effect of technological advancement on their budget and capacity building. These developments could affect their ability to keep up with the volatility of the external factors affecting the market (Gallaugher, 2015). There also far-reaching implications of this Law, such as the growth of social media platforms and cloud computing. These technologies require massive

computing capabilities. This required an increase of capacity and gave way to the introduction of massive parallel and grid computing. These two systems attempt to lash multiple computers to work together to solve problems faster. In addition, Moore’s Law resulted in the shift from micro to nanotechnology resulting in revolutionizing the manufacturing of upgraded technologies that are faster and more compact (Gallaugher, 2015). Conclusion:

The limitation to Moore’s Law is that the transistors cannot double forever (Gallaugher, 2015). There will come a time when the physics low will intervene as transistors can't shrink more than 5 nm (Baines, 2010) and besides the more the transistors on a chip the hotter it will get resulting in power management challenges (Gallaugher, 2015).

References: Baines, S. (2010, January 15). The limits to Moore’s Law. Orange Business Services. https://www.orange-business.com/en/blogs/connecting-technology/innovation/thelimits-to-moores-law Gallaugher, J. (2015). Information Systems: A Manager’s Guide to Harnessing Technology. Licensed under a Creative Commons Attribution-NonCommercial-Share Alike 4.0 International License. Investopedia. (2021, February 14). What Is Moore’s Law in the Electronics Sector? https://www.investopedia.com/ask/answers/042115/what-impact-does-moores-lawhave-electronic-sector.asp...