Information Technology

How can information technology help a company to gain and maintain a strategic competitive advantage?


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2007-10-01 16:12:42
2007-10-01 16:12:42

Information Technology (IT) is a critical part of the business process that can require technical competence beyond the scope of the current management. In this case, a third party should manage the IT function. Here are some of the reasons why outsourcing is a better choice for managing the IT department, rather than maintaining IT internally: IT costs become more visible as all billable hours must be accounted for Outsourced services are utilized as needed, and organizations pay only for what services are actually used An outsourced IT department can reduce costs by utilizing its extensive knowledge base of various IT specialists, as opposed to an organization maintaining a comprehensive in-house staff Outsourced companies make performance reports and measurements available to their clients Communications between business functions improve at all levels and ensure that IT resources are not being misused Outsourced companies can provide 24x7 support at a fraction of the cost Outsource staff tend to drive planning and budgeting improvements Service Level Agreements (SLAs) can be established Staffing levels can be adapted quickly to client requirements, thereby avoiding gaps due to attrition, business growth or economic downturns IT consultants are fully trained on the latest technologies Retention of technically qualified in-house personnel is more difficult when external job opportunities are rapidly changing Continuous IT support coverage without having to rely on only one or two key people Outsourced services use established standards for equipment and software requirements, saving time and money Outsourced services use approved lists of reliable vendors, which improves the quality of goods and services received Client management can concentrate on core competencies and revenue generating activities, while leaving technology management to IT professionals Management of non-essential core functions is transferred to the outsourcer

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Competitive Advantage is vital to Strategic planning. Strategic planning identifies strengths and weaknesses and visions and missions for the future. Competitive advantage relys on the benefits of the companies strengths and act upon them to turn them into competitive advantage. Other firms can't duplicate strategy or competivness that they don't have.

It's used for gaining competitive advantage.

operational excellence, competitive advantage, survival, improved decision makinh

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Information technology is a strategic weapon only if your competitors do not have access to the same information, if they do it becomes a strategic tool and a planning device.

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Information systems are strategic to the extent that they support a firm's business strategy . Most internet based business models used the Internet and its own information systems to support its strategy in several ways. In my opinion, IT can be said to be both a strategic weapon and a survival tool depending on the context. Opinions are highly contextual and can differ depending on the situation. In case of brick-and-mortar companies having an online presence maybe an extension of their business strategy, but for companies like Amazon and e-Bay, which entirely depend on the internet for survival, IT/IS is a critical core competency for sustained competitive advantage. A well established internet strategy built into the overall business strategy will provide competitive advantage and this can be illustrated through the success stories of Amazon, e-Bay, Yahoo,& Google. Information technology has been extensively used by online businesses to leverage intangible, complementary human and business resources such as flexible culture, strategic planning-IT integration, and supplier relationships resulting in sustainable competitive advantage and business agility.

Strategic information systems are designed in response to corporate business initiatives. Their purpose is to give competitive advantages to the business they serve.

Ted Russell has written: 'Strategic planning for information technology' -- subject(s): Information technology

An advantage of a strategic business unit is its ability to react to change. A disadvantage is the need for advanced technology to make decisions.

J. Patton has written: 'The alignment of information technology to business strategy' -- subject(s): Information technology, Strategic planning

It has to do with Strategic Management. That is: the way in which the managers plan, coordinate, and lead, etc.; in order to gain and maintain competitive advantage.

Strategic Alliance: Is an alliance(a business strategy) in which two or more firms own different percentages of the company they have formed, by combining some of their capabilities and resources for creating a competitive advantage in the market. For Example: In Pakistan (Karachi), "own % of RBS,Barclays and CitiBank" when combine together their resources & capabilities they form a competitive advantage now named as "FAYSAL BANK".

Recruitment and selection is the process of outfitting an organization with the right people. When the human resource department focuses on attracting and retaining people who have the skills necessary to carry out the strategic objectives of the organization, then the organization will have a competitive advantage over their competition.

Sui-Lun. Wan has written: 'Strategic information systems in Japan' -- subject(s): Management information systems, Management, Data processing, Information technology, Strategic planning

The strategic role of IT in business to re engineer total quality management is the combination of information technology and human business strategies. For this to be accomplished, by the IT manager and the supervisor to have good communication skills.

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Some advantages of strategic planning are: it leads to sustainable competitive advantage, improves resource allocation, reduces resistance to change, identifies strategic goals and strategic intent and facilitates communication between managers. Disadvantages include: complex process, low rate of successful implementation and costly to perform for small and medium business.

Competitive profile matrix is an essential strategic management tool to compare the firm with the other major players of the industry. But did you mean by nstp the National Space Technology Programme? In any case a competitive profile matrix on the matter is way too large a document to include on an answer here.

Maurice Estabrooks has written: 'Electronic technology, corporate strategy, and world transformation' -- subject(s): Business enterprises, Communication systems, Computer networks, Economic aspects, Economic aspects of Information technology, Information networks, Information technology, Management, Strategic planning

Frank Hall has written: 'The emergence of information technology as an effective strategic resource and the role of facilities management in the current information era'

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