Emergence Of Information Economy Essay

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Essay Title 3: The emergence of information economy has far-reaching strategic implications for managers in many organizations. Select and discuss some of these implications by reflecting on three aspects, namely (1) the rationale behind your selection, (2) the changing requirements imposed by the new economy and (3) the disconnections between an organization’s IT capability and the external requirements. It is vital to address the increasing commoditization of IT and/or IT--‐based solutions when illustrating their strategic potentials. The changes businesses have had to accommodate to because of the emergence of information economy, have been immeasurable. Moving from vertical integration to outsourcing in an increasingly virtual…show more content…
However, proponents argue that “the new telecommunication technologies are the electronic highways of the informational age, equivalent to the role played by railway systems in the process of industrialization” (Henderson and Castells 1987:6 as cited by Dicken 2007:83) implying that IT indeed is in the process of reaching maturity but that there are still gaps where the advances in IT have not been exploited fully. “The time-space convergence process is geographically uneven”(Dicken, 2007:83) since two thirds of all registered domain names are in just three countries (US, Germany, UK). Therefore IT services are far from being globally available which implies that even if IT-based solutions are reaching homogeneity in developed parts of the world, for underdeveloped ones IT can still be looked upon as a source of competitive advantage if implemented adequately. Economic benefits The emergence of the information age has greatly impacted the concept of economies of scale, since its “goal is to provide ease of change at the business-component and interface levels and deliver ‘economies of
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