Copyright © 2021 Profitable Venture Magazine LLC | All Rights Reserved | See About Us | Contact Us | Privacy Policy | Disclaimer. By answering this question, you will be able to identify the main process that you need to pay the most attention to and the information that is necessary to support these processes. This can be achieved by using technology to enhance the production process and thus making it more efficient. “If you don’t have a competitive advantage, don’t compete.” – Jack Welch. Information Technology can never take the place of humans in business. For over fifty years, computing technology has been a part of business. Scale. Thus, it can only produce excellent results when supported by strong business and human resources (Powell & Milcallef, 1997). Have we seen increases in productivity? We will begin by highlighting two important works from the past two decades. January 12, 2021. https://ivypanda.com/essays/information-technology-as-a-competitive-advantage/. It is affecting the entire process by which companies create their products. Within the realms of the business world, pre-20th-century theories of competitive strategy focused on binary outcomes; mainly how to bludgeon markets with monopolies and exclusivity agreements. Tesla is known for investing most of its revenuein research and development activities. If you look at all the aspects of their business it can be said that they have no direct competitors based on the industry they operate and based on the product/services they provide. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. Here is a common scenario, you realize the need to use technology to improve your operation, you contact a vendor, the vendor convinces you that you need a particular solution, you purchase it, implement it and it fails. So for a business to get a competitive advantage over its rivals, it has to either perform these activities at a cheaper cost or perform them in such a way that the business will stand out to the extent that customers will not mind paying a premium price in order to get it. But has all this investment in IT made a difference? To unravel your competitive advantage, you should ask yourself these three important questions; Anyone of the above questions should be able to give you an idea of your competitive advantage. Using information technology to gain a new perspective. What to Do When Disaster Renders a Business Location Unusable, How to Develop a Competitive Strategy Using SWOT Analysis, How to Test and Implement your Business Continuity Plan, How to Be a Successful Trucking Dispatcher, 20 Tips for Buying Medical Transportation Vehicles for Sale, What is that unique thing only your business can offer. While there are many competitive advantages such as speed to market, speed of delivery or even price, many can fall away quickly or be replicated by competitors. The information technology as competitive advantage in the global business could contribute into the capsizing the global market and maximize the profit for the organization. IvyPanda. Creating new business: the implementation of information technology can help to give rise to new areas of business. The investment analyst firm Market Realist identified brand strength, innovation, supply chain management and premium pricing strategy as key factors in the company’s competitive advantage. They include design, bench marking, and IT planning. It has modified the structure of the business industry and has thus changed the rules of the game. Ajaero Tony Martins is an Entrepreneur, Real Estate Developer and Investor; with a passion for sharing his knowledge with budding entrepreneurs. Using information technology to solve problems in the same way and manner as your competitors will definitely not lead you to achieving competitive advantage. Retrieved from https://ivypanda.com/essays/information-technology-as-a-competitive-advantage/. Key words: IT, competitive advantage and sustainability. Variety. Japan also changed its competitive advantage. This enormous power of information unleashed in today’s world has brought down reaction times for decision-making of managers, made customers more aware, competitors more efficient and regulators more alert. Information technology impacts every aspect of a company’s processes and decision making. The underlying problem in this scenario may be that the process that you are trying to automate was overlooked and indeed it may be flawed. Concentrating on IT alone is not as productive as when combined with well supported human resource. Thus, a business is said to be viable and profitable if the value that is created by the business is more than the cost that is involved in running the business. IvyPanda. Apple Corp. manufactures and markets a variety of computers and consumer electronics products, including smartphones, tablets and music players. Enhancing differentiation: information technology also comes in handy in the differentiation of produces through customization of the product. Lowering cost: information technology can help to reduce the cost that a business spends in production. It is of utmost necessity to view a business problem through the eyes of the customers of the business. They may include the pursuit of economies of scale, proprietary technology, preferential access to raw materials and other factors. A part of business specifically for you all Rights Reserved | See about Us | Contact Us Privacy... Its revenuein research and reference purposes in order for your business longer wish to have work. 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