It really is at this level of management that revenue are either made or deficits are incurred as seen in the case of Tykes Ltd when the profits fell steadily over the last couple of years. The operational management activities are directed at controlling people, products and machinery as observed in Tykes Ltd where in fact the head of departments are the ones controlling the employees of the production lines. Decisions are made infrequently and demands are by means of commands or purchases. Businesses are relatively well ordered and managers are anticipated to analyse problems and fix the quickly.
Essay on Competitive Advantage in IT Information Systems What extent do you agree that information technology can confer competitive advantage to a business? With the demise of the dotcoms corporate scholars and experts perceived the decline of the information technology edge. These observers have predicted the digital mammoths as being too quick in achieving too much too soon.
As with any business that expands too quickly based on brittle foundations the dotcoms had been inclined to its inevitable fate. These observers failed to notice the cause for the fate of the dotcoms had not been information technology but business models adopted by these organizations.
According to David Stauffer companies whether young or old achieved success in the 21st century have not sprung out of nowhere. They all have based their strategies on strong foundations and business structures. Organizations like Office Depot, Dell, Amazon and EBay have succeeded not because they have become "online" but because they have adopted a competitive strategy and gained an edge over their rivals based on competitive business models.
The following discussion argues that information technology like any business strategic tools can be used for the benefit of the organization.
What organizations that endeavour to use IT as the basis of organizational restructuring need to understand is that IT can only confer business competitive advantage to the extent that the organization integrates it into its operational standards. On its own IT cannot be a competitive advantage.
Scope The discussion aims to explore the issues and debates prevalent among scholars whether IT does nor does not confer competitive advantage in terms of operational and business strategies; how IT can benefit the industries and economy alike; and investigates how firms that have not already integrated IT into their models achieve competitiveness and competencies.
In the process the researcher plans to enumerate on the various practical and theoretical backgrounds that could be useful for modern businesspersons and scholars alike.
Discussion Business Strategy and competitive advantage Competitive advantage and IT have often been misjudged and misinterpreted by management and business strategists. Companies according to Michael Porter need competitive advantage in order to achieve its strategic goals.
Competitive advantage can be of two types: Alternative if its product features and benefits exceed those offered by its competitors it is said to have a differentiation advantage.
Given these competitive advantage features, one can now move on to what leads to cost or differentiation advantage. Porter is of the opinion that a business model of competitive advantage is based on its ability to manipulate its resources, create distinctive competencies or capabilities.
In this context it is imperative to note here that during the dot. They depended on the uniqueness of the Internet and information technology to give them an edge over rivals not realizing that information and related technologies does not offer much unless it is coupled with some kind of integrated organizational strategies.
He points out how organizations must support its physical structure by meticulously strategizing based on the current resources and utilizing its virtual capabilities to drive operations. Technology therefore should be the tool for achieving organizational strategies and not be the differentiation point.
It should be used as the means for cost advantage by using it to structure production, deliver services, and carry out operational functionalities to allow customers to switch from clicks to bricks and vice versa. Information systems Information technology in the form of systems for support to create efficiency in daily operations; to create value; and to achieve differentiation through product deliverance can offer leverage for companies that adopt it.
Suresh Kumar writes that business processes require business innovations in making process reengineering meaningful and worthwhile for the business. Information systems not only facilitate by smoothening the business reengineering processes through improvement in workflow design, job requirements, organizational structures and operational efficiencies but also enable organizational entities such as management to achieve agility in competitive performance.
He is of the opinion that without information systems, that is to say systems that support business activities, organizations would be setback in managing customers, procurements, supplies and inventory, and even managing its employees.
Especially in organizations that have branches and units spread far and wide across the globe, it is critical to have integrated information systems that would help to collaborate the various departments through integration such as: Firms such as SAP, Oracle and PeopleSoft have concentrated on creating value through supply chain software because they realize organizational needs and because their products have been designed to address the complexities in processes, choices, uses and users inherent in dynamic organizations Davenport However, this is not to say that such information systems are fault-proof.
Despite enterprise systems uses and supports, the key challenge is for management to identify what they consider changeable, what is dynamic and which aspects of their organizations can incorporate change. Of course having a flexible organizational structure helps but it does not negate misinterpreting opportunities, misjudging the usage of the information systems; and misuse of technology for wrong purposes etc.
Business intelligence The purpose of information technology is to create business intelligence a concept derived from the Japanese which the Western world has been slow to adopt. According to Mark Davis business intelligence is the source for achieving competitive advantage because legitimate innovations support business functions.
Information technology too have the important role of transforming business functions to intelligent functions and help in establishing competitive advantage. For example imagine a web site that offers a list of car models available for sale.
The function of the website thus would only be that of a brochure listing and offering information on the car models. Competitive functionality would be if the website offers interactivity in terms of allowing users to choose, make choices and make the purchase decision online.Gartner Says Technology Service Providers Must Implement a Bimodal Road Map or Risk Being Left Behind including independent software vendors, IT, operational technology, the Internet of Things and industry-specific partners and new Further information is available in the research note "Technology Service Providers Must Implement a.
E-service equipped direct, online transactions between the public, the government and large service providers via electronic means (Norshita, ). The goal of MyEG is to enhance the relationship and quality of interaction between the Government of Malaysia and its citizen (MyEG, ).
This free Engineering essay on Essay: MC CDMA (telecommunications) is perfect for Engineering students to use as an example. Insights for executives model involves new and more sophisticated arrangements with multiple vendors and service providers with the capabilities to provide more flexible, specialized services that exploit new paradigm can maximize the advantages new technology, pricing models and service-.
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