Emerging Technologies in IT

Why This Matters

Emerging technologies aren't just buzzwords for your exam—they represent fundamental shifts in how IT firms create value, compete, and structure their strategic decisions. You're being tested on your ability to understand why certain technologies disrupt industries, how they create competitive advantage, and when firms should adopt versus wait. The strategic implications matter far more than technical specifications.

These technologies cluster around key strategic concepts: data-driven decision making, platform economics, infrastructure transformation, and trust architecture. When you encounter an exam question about emerging tech, don't just recall what the technology does—identify which strategic principle it leverages and how it reshapes industry dynamics. That's what separates surface-level memorization from genuine strategic thinking.

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Data and Intelligence Technologies

These technologies transform raw information into strategic assets. The underlying principle is that competitive advantage increasingly flows to firms that can collect, process, and act on data faster and more accurately than rivals.

Artificial Intelligence (AI) and Machine Learning

• AI automates cognitive tasks—decision-making, pattern recognition, and problem-solving that previously required human judgment, fundamentally changing labor economics and firm capabilities
• Machine learning enables continuous improvement through algorithms that refine themselves based on data, creating compounding advantages for early adopters with larger datasets
• Strategic applications span operations and customer experience—from predictive maintenance to personalized recommendations, AI shifts competition toward data access and algorithmic sophistication

Big Data Analytics

• Extracts actionable insights from massive datasets—the strategic value lies not in data volume but in the ability to identify patterns that inform better decisions
• Enables data-driven strategy by replacing intuition with evidence, particularly powerful for customer segmentation, demand forecasting, and operational optimization
• Creates network effects when combined with AI—more data improves algorithms, which attract more users, generating more data in a virtuous cycle that entrenches market leaders

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Connectivity and Infrastructure Technologies

These technologies reshape where and how computing happens. The strategic principle here is that infrastructure choices determine speed, scale, and cost structure—firms that optimize their infrastructure architecture gain operational advantages.

Internet of Things (IoT)

• Creates networks of data-generating devices—sensors, machines, and everyday objects that communicate automatically, transforming physical operations into digital information streams
• Enables real-time monitoring and automation across manufacturing, logistics, and service delivery, reducing response times from hours to milliseconds
• Generates strategic value through ecosystem control—firms that own IoT platforms capture data from entire value chains, not just their own operations

Edge Computing

• Processes data at the source rather than centralized data centers—critical when latency matters more than consolidation, such as autonomous vehicles or industrial robotics
• Reduces bandwidth costs and improves reliability by keeping routine processing local and sending only essential data to the cloud
• Complements cloud computing strategically—firms must decide which workloads belong at the edge versus the center based on speed requirements and data sensitivity

5G Networks

• Delivers transformational connectivity improvements—speeds up to 100x faster than 4G, latency under 10 milliseconds, and capacity for millions of devices per square kilometer
• Enables previously impossible applications including real-time remote surgery, autonomous vehicle coordination, and immersive AR/VR experiences at scale
• Creates platform opportunities for IT firms—5G infrastructure becomes a strategic asset that supports entirely new business models and revenue streams

Cloud Computing and Serverless Architecture

• Transforms capital expenditure into operating expense—firms access computing power on-demand without owning infrastructure, fundamentally changing cost structures and scalability
• Serverless architecture abstracts infrastructure management entirely, allowing developers to focus on code while the platform handles scaling, reducing time-to-market
• Shifts competitive dynamics toward agility—startups can access enterprise-grade infrastructure, while incumbents must justify legacy investments

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Trust and Security Technologies

These technologies address fundamental questions of verification, privacy, and protection. The strategic principle is that digital business requires trust infrastructure—technologies that ensure transactions are secure, data is protected, and identities are verified.

Blockchain

• Provides decentralized verification without intermediaries—a distributed ledger where all participants maintain identical records, eliminating single points of failure or control
• Smart contracts automate execution when predefined conditions are met, reducing transaction costs and eliminating disputes over contract terms
• Creates strategic value in trust-deficient environments—supply chain provenance, cross-border payments, and any context where parties don't inherently trust each other

Cybersecurity and Privacy Technologies

• Protects digital assets from increasingly sophisticated threats—the strategic imperative grows as firms become more dependent on digital operations and data
• Privacy technologies like encryption and anonymization enable compliance with regulations (GDPR, CCPA) while maintaining data utility for analytics
• Shifts from cost center to competitive differentiator—customers increasingly choose firms based on trust, making security a source of advantage rather than just risk mitigation

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Experience and Interface Technologies

These technologies transform how humans interact with digital systems. The strategic principle is that user experience increasingly determines adoption and loyalty—firms that create more intuitive, immersive interfaces capture attention and engagement.

Augmented Reality (AR) and Virtual Reality (VR)

• AR enhances reality with digital overlays—product visualization, navigation assistance, and real-time information display that bridges physical and digital experiences
• VR creates fully immersive environments for training simulations, virtual collaboration, and entertainment where complete immersion adds value
• Strategic applications extend beyond consumer entertainment—industrial training, remote expert assistance, and virtual prototyping reduce costs and accelerate learning

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Frontier Computing Technologies

These technologies represent paradigm shifts in computational capability. The strategic principle is that some problems are fundamentally intractable with current technology—breakthrough computing approaches could reshape entire industries overnight.

Quantum Computing

• Leverages quantum mechanical properties (superposition and entanglement) to perform certain calculations exponentially faster than classical computers
• Threatens current cryptography while enabling new capabilities—optimization problems, molecular simulation, and financial modeling could be revolutionized
• Requires strategic monitoring rather than immediate adoption—the technology remains immature, but firms in affected industries must prepare for disruption

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Quick Reference Table

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Self-Check Questions

1. Which two technologies both create competitive advantage through data network effects, and how do their mechanisms differ?

2. A firm is deciding between edge computing and cloud computing for a new application. What strategic factors should determine this choice, and what types of applications favor each approach?

3. Compare and contrast how blockchain and traditional cybersecurity technologies create trust. In what business contexts would each approach be more strategically valuable?

4. If an FRQ asks you to evaluate a firm's technology adoption strategy, which emerging technologies create sustainable competitive advantage versus temporary advantage, and why?

5. How do 5G networks and IoT create interdependent value—and what does this suggest about the strategic importance of ecosystem positioning for IT firms?