Information Technology Cannot Really Give a Company a Strategic Advantage Because Most Competitive Advantages Don't Last More Than a Few Years and Soon Become Strategic Necessities That Just Raise the Stakes of the Game. Discuss?
INFORMATION TECHNOLOGY CANNOT REALLY GIVE A COMPANY A STRATEGIC ADVANTAGE BECAUSE MOST COMPETITIVE ADVANTAGES DON’T LAST MORE THAN A FEW YEARS AND SOON BECOME STRATEGIC NECESSITIES THAT JUST RAISE THE STAKES OF THE GAME. DISCUSS?
INTRODUCTION
The information technology (IT) revolution has had an enormous influence on how organizations/companies are managed. It can credibly be claimed that no other source of change has had more impact on the paradigms and practices that underline the management function. Though other developments such as the emergence of the global economy and the increasingly knowledge-based nature of modern organisations have significantly affected how organisations are managed, IT developments actually are an integral part of these other phenomena that require innovations in the practice of management. It should be noted that the success of any business is first and foremost hinged on its management. It is the view of this author that IT on its own cannot bring superior profits to a company. This can only happen when it is used in combination with good management.
The earlier use of IT, compared to competing companies, can actually give the company a competitive advantage that can turn out to be a strategic advantage if it can be sustained and maintained. The maintenance and sustenance need a lot of resourcefulness on behalf of management and all concerned. The resourcefulness is required to deal with quite a number of competitive forces abound in the business environment. A triumph against these forces will give a company competitive advantage that can turn into strategic advantage. In business a strategic advantage should be guarded religiously as it is a necessity. Abudi (2010) sums up the need of sustenance and maintenance when she said ‘Long-term competitive advantages require continuous business process improvement’.
This paper will look at definition of terms found in the question, Porter’s competitive force model to have an
INTRODUCTION
The information technology (IT) revolution has had an enormous influence on how organizations/companies are managed. It can credibly be claimed that no other source of change has had more impact on the paradigms and practices that underline the management function. Though other developments such as the emergence of the global economy and the increasingly knowledge-based nature of modern organisations have significantly affected how organisations are managed, IT developments actually are an integral part of these other phenomena that require innovations in the practice of management. It should be noted that the success of any business is first and foremost hinged on its management. It is the view of this author that IT on its own cannot bring superior profits to a company. This can only happen when it is used in combination with good management.
The earlier use of IT, compared to competing companies, can actually give the company a competitive advantage that can turn out to be a strategic advantage if it can be sustained and maintained. The maintenance and sustenance need a lot of resourcefulness on behalf of management and all concerned. The resourcefulness is required to deal with quite a number of competitive forces abound in the business environment. A triumph against these forces will give a company competitive advantage that can turn into strategic advantage. In business a strategic advantage should be guarded religiously as it is a necessity. Abudi (2010) sums up the need of sustenance and maintenance when she said ‘Long-term competitive advantages require continuous business process improvement’.
This paper will look at definition of terms found in the question, Porter’s competitive force model to have an
References: 1. Abudi G (2010) ‘Business Process Improvement is a Strategic Necessity’ Management Resource for Business Leaders in Executive Brief of May 2010 publication. 2. Clemons, E. K. and M. C. Row (1991). "Sustaining IT Advantage: The Role of Structural Differences." MIS Quarterly 15(3): 275-292. 3. Eisenhardt, K. M. and J. A. Martin (2000). "Dynamic Capabilities: What are They?" Strategic Management Journal 21: 1105-1121. 4. Falcon A B (2006) ‘Does your technology provide your business with a strategic advantage’ Strategic Technology Management in Horizon Information Group, February 2006 publication. 5. Garr N G (2003) ‘IT doesn’t matter’ Havard Business Review. 6. Information Technology Association of America. 7. Mcafee A (2006) ‘The slippery nature of strategic IT’, The Business Impact of IT in Andrew Mcafee’s Blog, 10 April 2006. 8. O’Brien J A and Marakas G M (2006) “Management Information Systems”, Mc Graw – Hill/Irwin. 9. Porter M E (1985) “Competitive Advantage”, Free Press, New York.