Information Technology As A Strategic Weapon

The information systems can make the company realize the reasons for the deficiency of competitive advantages in T-Mobile by using the Michael Porter’s (Laudon, 2014, pp. 124) competitive forces model to analyze the T-Mobile, its competitors and the environment.

The recent trend in the global business has been largely driven by the mechanism of the internet and more broadly the cyberspace. This has created a more elaborate platform for all business activities to be coordinated through an information system protocols. The information system is the management of the information data base of an organization or an institution. Information is assumed to be a significant asset, organisations strive to gather, retain and protect their valuable intellectual property to place them in a prominent business platform over their competitors.

Any business or company that uses Information Technology (IT) for its operation and is leveraging it for gaining competitive advantage also needs to think about other aspects of the technology. Technical advancement and innovations alone are not sufficient to make any business attractive. IT definitely plays a huge role in the highly competitive business world now than before because of the advancement in the area and various ways it can influence the rise or fall of the business.

In modern society with technology being so closely tied to having a competitive advantage, a lot of industries compete to keep up to date with new developments. The invention and increased use of computers, internet, and phones have all made a major impact on organisations around the world.

Secondly, the author highlights the way how business entities can achieve sustainable competitive edge through improving strategic planning practices in a fundamental manner. It has to be acknowledged that one and half decade has passed since the publication of the article and the principles outlined in the article are not revolutionary by today’s standards, however, there are solid reasons to believe that the article has contributed to the emergence of companies with revolutionary approach to business.

The world is a rapidly changing canvas that visits a dynamic and turbulent environment on senior managers changing how Information Systems (IS) are used and needed in each organization. The power to collect, assess, and disseminate information is a valuable strategic resource that any organization can use to improve its competitive advantage. At the same time, technological advances are changing rapidly, thus requiring frequent updates in hardware and software as well as new competencies for IS professionals. As strategic managers face the challenges of optimizing the use of information systems, they are called to address a number of issues so they can make informed and effective

(Sivaprasad & JangaJe, 2012): With the introduction of Information Technology in the business, every organization that comprises IT has started to take benefits of this technology. This is done by attaining the advantage over other competitors in the market, by providing new features to the customers after incorporating technology at the operational side specially, increasing the operational speed and reducing the probability for any error in operations. (Wen, 2012): IT also assists higher management in the process of decision making.

In his 2003 article for The Harvard Business Review titled “I.T Doesn’t Matter”, Nicholas Carr – the Executive Editor at the time, submitted to the public his views on the utility of IT in acquiring a competitive edge (Carr N. G., 2003). Carr looks at the commonly held view that the strategic value afforded by IT as a resource increases with its effectiveness and pervasiveness; a view he sees as based on a flawed premise. He posits that a resource’s value is determined by its scarcity rather than ubiquity; that having what your competitors do not puts you at an advantage. A true enough statement in any competitive marketplace, but a point easily overlooked thanks to the article’s provocative title.

From its inception and throughout its growth and expansion, information technology played a key role at MFC in creating and then reinforcing assets for sustainable competitive advantage by enabling an imitation-resistant value chain. Further, through its strategic use of technology, MFC created barriers to entry for would-be competitors.

In this discussion be careful to explain what you mean with “sustainable competitive advantage” and how it relates to Barney (1991) and Porter (1996). Thus you should either defend or critique the views on competitive advantage offered by Porter and/or Barney in relation to the Aldi case.

Competitive strategy, after Porter, came to be defined as the strategy of a business unit which seeks to achieve sustainable Competitive Advantage (SCA). The literature on strategy deems the market-based view (MBV) and the resource –based view (RBV) as two approaches to giving businesses the competitive edge they need to compete in their industries. Aside from having competitive advantage as their ultimate goal, the two approaches are also similar in the sense that they both make use of particular tools and models in their undertakings. They also differ in numerous ways,

The drawback of Estonia's information technology framework was that its defensive protocol was not much secure and could be easily hacked. Moreover, the country was much depended on internet.

In 2003 when Nicholas Carr wrote the article “IT Doesn’t Matter” companies were just beginning to utilize information technology as a competitive advantage. Mr. Carr contends that technology is not a permanent advantage because in time the competition will acquire the same resources and Information Technology (IT) just becomes another commodity. For the majority of companies throughout the world IT resources have become easily accessible and affordable. If Mr. Carr’s opinion is correct then the equality of IT access has just become a cost of doing

Competitive advantage is explained by Mahoney and Pandian (1992) as the function of industry analysis, organizational governance and the firm’s effects in the form of resource advantages and strategies. In order for a firm to be competitive it must adapt to the volatile business environment and through strategic management decisions establish a competitive advantage that will ultimately produce superior performance relative to its competitors (Akimova 2000).

Innovation offers the companies a competitive advantage. Presently and within the future, more than any time in history, the key to competitive advantage is innovation. However innovation will facilitate businesses meet all of their strategic challenges, not simply competition; to illustrate, in confronting accelerating rates of change, globalization, apace advancing technology, a additional numerous workforce, associated a modification from an industrial to a knowledge-based economy. Meeting all of those challenges helps the firm attain competitiveness, and meeting these challenges suitably depends on innovation. Innovation allows a firm to workout its challenges in distinctive ways in which build competitive advantage either through relative differentiation, a relative low-priced position, or few acceptable level of each. Innovation cannot assure success, however success cannot be achieved within the end of the day without it.