Center for eBusiness Annual Conference

Overview and Update

Erik BrynjolfssonDirector

May 17, 2005

Two Questions

• Does eBusiness Matter?

• Is the MIT Center for eBusiness making a difference?

IT and Productivity: The Data Speak

-1 .5

-1.0

-0.5

0.0

0.5

1.0

1.5

-4 -2 0 2 4

MFP

IT 3IT Stock (relative to industry average)

Productivity(relative to industry average)

The Question

What differentiates successful IT users from failures?

Maturity?

80858080

40048008

80488086

8028680386

80486

PentiumP6

P7

4G1G

256M

64M

16M

4M1M

256K

64K

16K4K

1K

100

1,000

10,000

100,000

1,000,000

10,000,000

100,000,000

1,000,000,000

10,000,000,000

1970 1975 1980 1985 1990 1995 2000 2005

Year

Tran

sist

ors/

Die

Microprocessor DRAM

52%/year growth

42%/year growth

Source: Brynjolfsson and Yang, 1996,(Updated)

Computer Investments

0

50

100

150

200

250

300

350

1960 1965 1970 1975 1980 1985 1990 1995 2000

$bill

ions

Nominal Real

Price Changes

0.1

1

10

100

1000

1960 1965 1970 1975 1980 1985 1990 1995 2000

Computer GDP Deflator

Information Technology Share of private nonresidential fixed investments

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%19

47

1950

1953

1956

1959

1962

1965

1968

1971

1974

1977

1980

1983

1986

1989

1992

1995

1998

2001

2004

Information processing equipment and software

Computers and peripheral equipment

Software\2\

Computers and Software

ConclusionAs IT becomes cheaper and more ubiquitous,

• opportunities for ebusinessinnovations grow combinatorially,

• and the expertise needed becomes relatively more valuable.

Thus, ebusiness knowledge matters more now than ever.

Two Questions

• Does eBusiness Matter?• Is the MIT Center for eBusiness making a

difference?

Our Mission

To be the leading academic source of innovation in management theory and practice for eBusiness.

By the Numbers…

• 100+ Lunch Seminars• 15 Research Workshops• 5 Annual Conferences• 60+ Projects• Half of Sloan’s Faculty Involved• 116 Working Papers• 7 Books• 90+ Press Hits• 100+ Students Participating in the Research• 2000+ Students Learning from our Research

Our Business Model

Rigor and Relevance

Conference Highlights• SIGs Workshops

* Digital Marketing * Global Financial Services* Digital Productivity * Communication Futures* IT Products & Services

• Keynote– Hal Varian, UC Berkeley, Author & Researcher“Drivers of Innovation, Past and Present”

• CIO Symposium

To Learn More: http://ebusiness.mit.edu