Mis: Chapter 2: Competing with Information Technology
Chapter 2: Competing with Information Technology
Contributors: John Richardson, Kim Wandersee, Les Pang, Marlene Wilcox
Chapter 2 introduces fundamental concepts of competitive advantage through information technology and illustrates major strategic applications of information systems.
Information Technology (IT) professionals must understand how to use IT systems and technology to deliver a competitive advantage to the organization. Information systems and technology should provide more than a cost savings benefit to organizations. Today, IT solutions are expected to provide the means to surpass a competitor’s performance. As discussed in Chapter 1, the role of IT professionals is changing. Currently, there is an evolving term, business technology, which is used to describe the emerging role in IT. IT professionals are becoming more and more integrated with the business operations of an organizations. The Real World Case Study 4, "IT Leaders: Reinventing IT as a Strategic Business Partner," describes how one organization is reorganizing to better utilize IT to increase business benefits and contribute to a competitive advantage. It is important for an IT organization to utilize IT to reduce the cost of running the business, grow the business, or develop new services to change the business.
To position an organization to better provide its products and services, an understanding of the competitive forces is needed. Michael Porter identifies five threats that require business strategies ensure that an organization can out-perform other competitors. They are: 1. Rivalry of competitors within its industry 2. Threat of new entrants 3. Threat posed by substitute products that might capture its market share 4. The bargaining power of customers 5. The bargaining power of suppliers
To counteract these threats, competitive strategies must be developed to address the potential risks an organization may encounter as it strives to
Contributors: John Richardson, Kim Wandersee, Les Pang, Marlene Wilcox
Chapter 2 introduces fundamental concepts of competitive advantage through information technology and illustrates major strategic applications of information systems.
Information Technology (IT) professionals must understand how to use IT systems and technology to deliver a competitive advantage to the organization. Information systems and technology should provide more than a cost savings benefit to organizations. Today, IT solutions are expected to provide the means to surpass a competitor’s performance. As discussed in Chapter 1, the role of IT professionals is changing. Currently, there is an evolving term, business technology, which is used to describe the emerging role in IT. IT professionals are becoming more and more integrated with the business operations of an organizations. The Real World Case Study 4, "IT Leaders: Reinventing IT as a Strategic Business Partner," describes how one organization is reorganizing to better utilize IT to increase business benefits and contribute to a competitive advantage. It is important for an IT organization to utilize IT to reduce the cost of running the business, grow the business, or develop new services to change the business.
To position an organization to better provide its products and services, an understanding of the competitive forces is needed. Michael Porter identifies five threats that require business strategies ensure that an organization can out-perform other competitors. They are: 1. Rivalry of competitors within its industry 2. Threat of new entrants 3. Threat posed by substitute products that might capture its market share 4. The bargaining power of customers 5. The bargaining power of suppliers
To counteract these threats, competitive strategies must be developed to address the potential risks an organization may encounter as it strives to