How can information technology help a company to gain and maintain a strategic competitive advantage?
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
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.
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…
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".
Information systems are a foundation for conducting business today. In many industries, survival and the ability to achieve strategic business goals are difficult without extensive use of information technology. Businesses today use information systems to achieve six major objectives: operation excellence; new products, services, and business models; customer/supplier intimacy; improved decision making; competitive advantage; and day-to-day survival.
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.
A network will allow all the computers and printers to be linked together as one. Because of that, everyone in the company will be more functional by using the same up to date data from databases. In other words, live information. It will also enhance communication since everyone is linked to each other. Competitive advantage: your company operates faster and more efficiently which could also lead to lower costs.
What strategic role can information technology play in business process re engineering and total quality management?
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.
Pizza Hut, along with many other companies owned by YUM Brands, uses extensive I.S. technology to create world class, real-time data about the operations of every corporate owned unit. Service times are calculated and used to find the best uses for labor and sales trends are obtained from customer information on a database that is used to make analytical strategic business decisions. Thus, Pizza Hut retains customers and obtains new customers through a robust Information…
Wim Van Grembergen has written: 'Information Technology Evaluation Methods and Management' 'Business strategy and applications in enterprise IT governance' -- subject(s): Management, Information technology, Strategic planning 'Information systems evaluation management' -- subject(s): Evaluation, Information technology, Management information systems
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
Madjid Tavana has written: 'Competition, strategy, and modern enterprise information systems' -- subject(s): Management information systems, Management, Contracting out, Information technology, Strategic planning 'Decision making theories and practices from analysis to strategy' -- subject(s): Decision making, Strategic planning 'Management theories and strategic practices for decision making' -- subject(s): Business logistics, Decision making, Strategic planning 'Managing adaptability, intervention and people in enterprise information systems' -- subject(s): Management information systems
A well developed strategy consists of many components. The strategic scope of an organization, goal and objectives to be achieved, the deployment of resources, sustain a competitive advantage over their competitors, synergy to help complement and reinforce all the above factors to make the business perform better are the main strategic components of any business.
Rafael C. Andreu has written: 'information systems strategic planning' -- subject(s): Business, Business planning, Data processing, Information storage and retrieval systems, Information technology, Management, Management information systems, Planning, Strategic planning 'An iso-contour plotting routine as a tool for maximum likelihood estimation'
Good question! Information system is a bit personal and is business oriented as it focuses on inference and application of computing in the corporate domain. Whereas, information technology is never limited to a single domain but it focuses on selection, integration as well as deployment of computing in various fields. Information system requires exceptional management skills along with knowledge of technology, to take strategic decisions. Information technology requires technical knowledge of integrating databases as well…
strategic advantage profile is a summary statement which provides an overview of the advantages and disadvantages in key areas likely to affect future operations of a firm. it is a total for making systematic evaluation of strategic advantage factors which are significant for the company in its environment. it involves functional areas like marketing, production, finance, accounting, personnel, human resource and R$D