Premium Essay

Strategic Advantage and Information Technology

In: Computers and Technology

Submitted By AnkitHearts
Words 18939
Pages 76
PART

I

IT in the Organization

1. Information Technology in the Digital Economy 2. Information Technologies: Concepts and Management 3. Strategic Information Systems for Competitive Advantage

CHAPTER

Strategic Information Systems for Competitive Advantage
Rosenbluth International: Competing in the Digital Economy 3.1 Strategic Advantage and Information Technology 3.2 Porter’s Competitive Forces Model and Strategies 3.3 Porter’s Value Chain Model 3.4 Interorganizational Strategic Information Systems 3.5 A Framework for Global Competition 3.6 Strategic Information Systems: Examples and Analysis 3.7 Implementing and Sustaining SIS Minicases: (1) Cisco Systems/ (2) Aeronautica Civil
89 LEARNING OBJECTIVES

3

After studying this chapter, you will be able to: Describe strategic information systems (SISs) and explain their advantages. Describe Porter’s competitive forces model and how information technology helps companies improve their competitive positions. Describe 12 strategies companies can use to achieve competitive advantage in their industry. Describe Porter’s value chain model and its relationship to information technology. Describe how linking information systems across organizations helps companies achieve competitive advantage. Describe global competition and global business drivers. Describe representative SISs and the advantage they provide to organizations. Discuss the challenges associated with sustaining competitive advantage.

ROSENBLUTH INTERNATIONAL: COMPETING IN THE DIGITAL ECONOMY
PROBLEM ➥ THEInternational (rosenbluth.com) is a major global player in the extremely Rosenbluth competitive travel agent industry. Rosenbluth’s mission is “to be the quality leader in the development and distribution of global travel services and information.” The digital revolution has introduced various threats and business pressures to Rosenbluth and other agencies...

Similar Documents

Premium Essay

Essay in Spanish

...Does IT Matter? An essay presented to the Department of Information Systems University of Cape Town in partial fulfilment of the requirements for the course on Information Systems Honours (INF 414W) by ( March 200x Declaration 1. I know that plagiarism is wrong. Plagiarism is to use another’s work and pretend that it is one’s own. 2. I have used the APA Convention for citation and referencing. Each contribution to, and quotation in, this essay from the works of other people has been attributed, and has been cited and referenced. 3. This essay is my own work. 4. I have not allowed, and will not allow, anyone to copy my work with the intention of passing it off as his or her own work Signature …………………….. Date ….../….../…...… Full name of student: A Table of contents 1. Introduction………………………………………………………………………1 2. Resources: what makes them strategic?.....................................................1 1. Characteristics of Strategic Resources………………………..…………2 3. Strategic value of Information Technology………………………….………..2 4. The evolution of the IT function in business………………………………...4 5. Using IT to gain Sustainable Competitive advantage………...……………7 6. Conclusion……………………………………………………………………….8 7.......

Words: 3447 - Pages: 14

Premium Essay

Tech

...Information technology in business practices Introduction Information Technology systems have expanded in all the companies. Information Technologies include hardware and software as well. Besides, IT may consider telecommunications networks, the management of data and many technologies based on the use of the Internet. There has been in this essay a try to show the strategic value and the utilization in production of Information Technology in business practices. Many believe that IT has a controversial value in strategic arrangement of organizations and productivity implementation, while others believe that IT affects enterprises in all the above mentioned sectors and after all that it is the backbone of every modern company. Nobody can deny that Information Technology plays important role in strategy and productivity of companies who use it. However there is a growing opinion that Information Technology has become a commodity and that has already lost its competitive advantage. The alternative opinion is that speed and flexibility may occur, via IT, into businesses. Moreover improvement of organizational structure is one more of the benefits companies can gain by the proper use of Information Technology. However in any occasion companies should innovate in continuous matter in order to conserve the strategic value of Information Technology. Main body Nicolas Carr's article “IT doesn't matter” (May 2003) expresses the opinion of senior managers concerning...

Words: 2548 - Pages: 11

Premium Essay

Essentials

...MBA Essentials Information Technology for Strategic, Competitive Advantage Virginia Franke Kleist, Ph.D. Assistant Professor Division of MIS/Management Welcome to the Technology Part of the Program • How are you using information technology (IT) today in your firms and businesses? • How successful has this been for your firm? • Do you have problems that are still unresolved with Information Technology? • Can IT give competitive advantage, anyway? • How can one identify which technologies will best give strategic advantage? MBA Essentials Session X Information Resources Management 2 Contact Information • • • • • • Virginia Franke Kleist, Ph.D. Virginia.kleist@mail.wvu.edu www.be.wvu.edu/divmim/mgmt/kleist 304-293-7939 I welcome your comments and contacts! Several drawings are adapted from Laudon and Laudon, (2005), Management Information Systems: Managing the Digital Firm, New Jersey: Prentice Hall (8th ed.). • Some material adapted from Burgelman, Christensen and Wheelwright, (2004), Strategic Management of Technology and Innovation, Boston: McGraw-Hill Irwin (4th ed.). MBA Essentials Session X Information Resources Management 3 MBA Essentials Session X Information Resources Management 4 MBA Essentials Session X Information Resources Management 5 What will we learn? • Strategic advantage from information technology • Latest information technologies • How do you successfully......

Words: 1553 - Pages: 7

Premium Essay

Wfew

...The Strategic Use Of Information Technology in Business – Best Guidebook Posted by Admin April 13, 2009 [pic] X Welcome Googler! If you find this page useful, you might want to subscribe to the RSS feed for updates on this topic. You were searching forPosts relating to "strategic uses of information technology". See posts relating to your search »« Hide related posts • Information Security Technology We live in a world full of dangers. On one hand the world economy is going bonkers while on the... • fruITion Delivers a Novel Approach to IT Strategy Image via Wikipedia Around the world, an extraordinary new book about IT's ... • ShowClix Secures Series A Funding From Pittsburgh Equity Partners ShowClix, a Pittsburgh-based event ticketing company, today announced that it has secured an undisclosed sum of Series A funding from... • There is money in Internet Crime The BBC is reporting that Internet Crime is becoming quite the commercial activity. Apparently there is quite some money in... • So, there’s a nude font? This is a fun little thing I had to bring to your attention. It's a nudist font! Note... [pic][pic][pic][pic][pic][pic][pic]TEACHER: Hello, Student. What do you know about Information Technology (IT)? STUDENT: Well, I know that most software is full of “bugs”! By the way, why are these errors in programs called “bugs”? TEACHER: Computer “bugs” have been around since......

Words: 3973 - Pages: 16

Premium Essay

Case “Google Is Changing Everything”

... Competitive Advantages and Strategic Information Systems Mahmood Hemmatfar, Ph. D. Faculty Member of Islamic Azad University, Brojerd Branch, Iran Mahdi Salehi, Ph. D. (Corresponding author) Assistant Prof. Department of Accounting and Management Ferdowsi University of Mashhad, Iran Tel: 98-912-1425-323 E-mail: Mahdi_salehi54@yahoo.com Marziyeh Bayat, Ph. D. Faculty Member of Islamic Azad University, Hamedan Branch, Iran Abstract Information edge and 3rd millennium predisposed so many of revolutions. Business organization with emphasize on information systems is try to gathering desirable information for decision making. Because of comprehensive change in business background and emerge of computers and internet, the business structure and needed information had change, the competitiveness as a major factor for life of organizations in information edge is preyed of information technology challenges. In this article we have reviewed in the literature of information systems and discussed the concepts of information system as a strategic tool. Keywords: Strategic information systems, Information technology, Information sciences, Decision support systems, Competitive advantages 1. Introduction The potential usefulness of different kinds of Information System (IS) for environmental management is well recognized (Díez et al, 2009). Perhaps we can say advances in information provision have led organizations to attempt to develop IS or information technology (IT)......

Words: 6680 - Pages: 27

Premium Essay

It Doesn’t Matter by Nicholas G. Carr

...executives are wrong who believe that information technology is a strategic value that provides a competitive advantage. He says: ‘As information technology’s power and ubiquity have grown, its strategic importance has diminished. The way you approach information technology investment and management will need to change dramatically.’ Scarcity gives the capacity to be the basis for a sustained competitive advantage. Because information technology is easily accessible now, the strategic importance of information technology has been reduced. The main focus of this article is that organizations should handle information technology as a product in which it should reduce vulnerabilities, pursue to keep costs low, and avoid taking risks. Information technology’s power and ubiquity has begun to change this technology from strategic resources into factors of production. The three basic functions of information technology are storage, processing, and transport of data which has become one of the most important key to do business. Carr also argues that managers must focus on managing their time and also spend a good time understanding the importance of technology and how it impacts the firm level. Carr believes that companies need to understand that information system cannot provide strategic advantages and that the companies need to focus on managing the information technology cost because information system went through the same phase as earlier technologies. Last but not the......

Words: 599 - Pages: 3

Premium Essay

Risk Management

... Competitive Advantages and Strategic Information Systems Mahmood Hemmatfar, Ph. D. Faculty Member of Islamic Azad University, Brojerd Branch, Iran Mahdi Salehi, Ph. D. (Corresponding author) Assistant Prof. Department of Accounting and Management Ferdowsi University of Mashhad, Iran Tel: 98-912-1425-323 E-mail: Mahdi_salehi54@yahoo.com Marziyeh Bayat, Ph. D. Faculty Member of Islamic Azad University, Hamedan Branch, Iran Abstract Information edge and 3rd millennium predisposed so many of revolutions. Business organization with emphasize on information systems is try to gathering desirable information for decision making. Because of comprehensive change in business background and emerge of computers and internet, the business structure and needed information had change, the competitiveness as a major factor for life of organizations in information edge is preyed of information technology challenges. In this article we have reviewed in the literature of information systems and discussed the concepts of information system as a strategic tool. Keywords: Strategic information systems, Information technology, Information sciences, Decision support systems, Competitive advantages 1. Introduction The potential usefulness of different kinds of Information System (IS) for environmental management is well recognized (Díez et al, 2009). Perhaps we can say advances in information provision have led organizations to attempt to develop IS or information technology (IT)......

Words: 6680 - Pages: 27

Premium Essay

Role of Information Technology

...Journal of Information Science and Technology THE ROLE AND EFFECT OF INFORMATION TECHNOLOGY IN THE CREATION AND MAINTENANCE OF SUSTAINABLE COMPETITIVE ADVANTAGE A. Talebnejad[1] Faculty of Management and Accounting Shahid Beheshti University Email: taleb149@yahoo.com Abstract -By the appropriate use of information technology, organizations can achieve sustainable competitive advantages. This technology because of including some characteristics such as being up-to-date, fast and precise and having different geographic localities all the time, has improved organizational efficiency, effectiveness and performance. In this article, we intend to investigate the role and effect of information technology in the creation and maintenance of sustainable competitive advantages from two different approaches: market-based approach and the resource-based approach. In the Market-based approach, meeting customer's and creating values for them, using information technology and the issue of achieving the competitive advantage and position in the market by organizations are addressed. In the resource-based approach, compatibility of the organization's resources such as those of information technology and organizational skills, particularly managerial ones are investigated. Amongst different organizational skills and resources, only managerial skills of information technology can create a sustainable competitive advantage. Keywords: Information Technology, Sustainable Competitive......

Words: 4885 - Pages: 20

Premium Essay

Management

...competitive advantage. Technology has been continuously improving, among Turkish contractor firms. By the evaluation of the causes high business pressures that affect organizations’ field survey findings, Turkish contractor firms’ current and future competitiveness. These pressures use of IT, their main objectives on the use of IT, benefits cause common and rapid changes on all industries. To achieve competitive advantage, firms need to constantly focus on the identification of differential product strategies, building or reshaping core competencies, acquiring unique technologies, and accumulation of intellectual property, all of which can all be harnessed to make the company successfulin a highly competitive marketplace. Due to the emergence and widespread use of information and communication technologies (ICTs), organizations have faced many challenges that have led to several changes in their business practices in recent times, particularly in the last two decades. Findings After investigating the literature in strategic technology usage, and interviewing key decision-makers, a conceptual framework was proposed. IT innovation adoption occurs at the functional/operational level by enhancing various aspects of efficiency, effectiveness and resiliency. In order to select a few customer to be interviewed, heterogeneous purposive sampling technique which aimed to achieve a heterogeneous sample. The first condition (value) is necessary for the second (competitive......

Words: 837 - Pages: 4

Premium Essay

Kudler Fine Foods-Strategy

... MBA-502 July 27, 2008 “Strategic competitiveness can be attained only when the firm’s selected structure is congruent with its formulated strategy” (Gomez-Mejia et al., Chapter 7, pg 28). Kudler Fine Foods continues to manifest growth based on Mrs. Kudler’s original vision of a one stop gourmet food store. Having direct control over hiring, ordering and customer service, she has built the company into an expanding entity. The following is a discussion of strategy implementation, technology and opportunities, strategic recommendations and external forces to be aware of. Most growing companies have used information technologies (IT) to enhance operations and improve customer service. Mrs. Kudler has plans to add to the inventory and ordering automation by introducing new e-commerce capabilities and an online catering link (Kudler Fine Foods Portal, Strategic Plan, pgs 15-16). Strategic Information Systems have the ability to amplify strengths into potential sustainable competitive advantage. For example, British Airways implemented customer service online and self checking at the airports. Though the restructuring effected employee morale due to job loss, the company increased in efficiency and cost leadership. Mrs. Kudler is known for her kindness and generosity to employees, so the company will only prosper with new IT applications. Two main approaches of Strategic Information Systems are mostly used: inwardly focused and outwardly......

Words: 1657 - Pages: 7

Premium Essay

Kudler Product

...of Phoenix MBA-502 “Strategic competitiveness can be attained only when the firm’s selected structure is congruent with its formulated strategy” (Gomez-Mejia et al., Chapter 7, pg 28). Kudler Fine Foods continues to manifest growth based on Mrs. Kudler’s original vision of a one stop gourmet food store. Having direct control over hiring, ordering and customer service, she has built the company into an expanding entity. The following is a discussion of strategy implementation, technology and opportunities, strategic recommendations and external forces to be aware of. Most growing companies have used information technologies (IT) to enhance operations and improve customer service. Mrs. Kudler has plans to add to the inventory and ordering automation by introducing new e-commerce capabilities and an online catering link (Kudler Fine Foods Portal, Strategic Plan, pgs 15-16). Strategic Information Systems have the ability to amplify strengths into potential sustainable competitive advantage. For example, British Airways implemented customer service online and self checking at the airports. Though the restructuring effected employee morale due to job loss, the company increased in efficiency and cost leadership. Mrs. Kudler is known for her kindness and generosity to employees, so the company will only prosper with new IT applications. Two main approaches of Strategic Information Systems are mostly used: inwardly focused and outwardly......

Words: 1651 - Pages: 7

Premium Essay

Kudler Fine Foods-Strategy

... MBA-502 July 27, 2008 “Strategic competitiveness can be attained only when the firm’s selected structure is congruent with its formulated strategy” (Gomez-Mejia et al., Chapter 7, pg 28). Kudler Fine Foods continues to manifest growth based on Mrs. Kudler’s original vision of a one stop gourmet food store. Having direct control over hiring, ordering and customer service, she has built the company into an expanding entity. The following is a discussion of strategy implementation, technology and opportunities, strategic recommendations and external forces to be aware of. Most growing companies have used information technologies (IT) to enhance operations and improve customer service. Mrs. Kudler has plans to add to the inventory and ordering automation by introducing new e-commerce capabilities and an online catering link (Kudler Fine Foods Portal, Strategic Plan, pgs 15-16). Strategic Information Systems have the ability to amplify strengths into potential sustainable competitive advantage. For example, British Airways implemented customer service online and self checking at the airports. Though the restructuring effected employee morale due to job loss, the company increased in efficiency and cost leadership. Mrs. Kudler is known for her kindness and generosity to employees, so the company will only prosper with new IT applications. Two main approaches of Strategic Information Systems are mostly used: inwardly focused and outwardly......

Words: 1654 - Pages: 7

Premium Essay

Competitive Advantage Paper

...Competitive Advantage Paper Strategic Management MGT/498 Competitive Advantage Paper Riordan Manufacturing has several competitive advantages it can establish, which coincide with previously researched organizations. This paper discusses those advantages and competitive strategies meant to improve innovation and the sustainability both domestically and globally. An explanation and estimation of how these strategies will affect sustainability of long-term performance and an explanation of the impact of the global market on Riordan’s business strategy concludes the paper. Competitive Advantage Every organization can establish some type of competitive advantage. Recent research about the competitive advantages of FedEx, Southwest, Toyota, McCain Foods, and Cargill assists in identifying Riordan’s competitive advantage. The first step in creating a competitive advantage is creating a mission statement and developing a strategic plan. Firms that operate with a strategic plan develop a focus and tend to have everyone in the organization aligned. Introducing unique core products or services leads to the establishment of a competitive advantage. In the case of FedEx, the core service is transporting......

Words: 1001 - Pages: 5

Premium Essay

Strategic Management

...The Management of Strategy: Concepts and Cases 9e Part I: Strategic Management Inputs Chapter 1: Strategic Management and Strategic Competitiveness ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1: Strategic Management and Strategic Competitiveness • Overview: Eight content areas – – – – – – – – Nature of Competition The Competitive Landscape I/O Model of Above-Average Returns (AAR) Resource-Based Model of AAR Vision and Mission Stakeholders Strategic Leaders The Strategic Management Process ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Nature of Competition: McDonald’s • McDonald’s creates value for customers through: – Business-level strategies • Product Innovation • Upgrading existing restaurants • Listened to customers – value menu, healthier items, more convenience • Purchasing European property for future expansion – Corporate-level strategies • Disposed of its interests in other restaurants ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Nature of Competition: Basic concepts • Strategic Competitiveness – Achieved when a firm formulate & implements a valuecreating strategy • Strategy – Integrated and coordinated set......

Words: 2261 - Pages: 10

Premium Essay

It Does Matter

...Reaction Paper on the article “IT doesn’t matter” by Nick Carr A set of related arguments that Carr makes is that scarcity, uniqueness, and proprietary technologies bring about strategic advantage and lock-in the vendor. He also stated that as information technology’s power and ubiquity has grown, its strategic importance has diminished. Finally, he argued that information technology (IT) can no longer be used to gain a strategic competitive advantage. The second set of arguments that Carr makes is that information technology has become a non-proprietary commodity, invisible, and has therefore become an infrastructure technology. Because of this he argues that the window for gaining advantage from an infrastructural technology is open only briefly with lower cost being the only advantage information technology vendors have to offer yet information technology vendors are rushing to be commodity suppliers. The third set of arguments that Carr makes is that commoditization of information technologies cause information technology businesses to crumble. Due to this fact, he argues that information technology vendors must therefore learn to provide services of the commodity that help customers overcome their vulnerabilities. The fourth set of arguments that Carr makes is that information technology vendor should: follow not lead, become tight-fisted with spending, and manage cost and risk meticulously. By doing this, Carr agues this will cause them to be successful. To......

Words: 700 - Pages: 3