Influence of IT

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Business Finance

Description

Post an assessment of the influence of IT in the creation of competitive advantage in organizations, incorporating the Required Readings on strategy and competition. In your assessment, address the following:

  • What is competitive advantage and what are the ways it is created?
  • How does IT contribute to competitive advantage?
  • What are the risks associated with using technology for competitive advantage?
  • Also, include in your post a current theory related to IT for competitive advantage. Select a theory that extends beyond the resources provided in the readings for this week and involve your own research in the Walden Library using recent peer-reviewed sources. For the theory, provide a summary using these section headings:
    • The name of the theory
    • The year the theory was introduced
    • The theorist/author
    • Key components of the theory
    • A statement of how the theory does or does not apply

Be sure to support your work with a minimum of three specific citations from this week’s Learning Resources and at least one additional scholarly source.

Resources

Bacanu, B. (2016). Competitive advantage: “The emperor has no clothes!”. Bulletin of the Transilvania University of Brasov, Series V: Economic Sciences, 9(1), 99–106. Retrieved from http://webbut.unitbv.ro/Bulletin/Series%20V/Series...

Carr, N. G. (2003). IT doesn't matter. Harvard Business Review, 81(5), 41–49. Retrieved from https://cb.hbsp.harvard.edu/cbmp/pl/70896911/70897120/d210c240ae904b08b5f90382a27ac4ee

Ghemawat, P. (2002). Competition and business strategy in historical perspective. Business History Review, 76(1), 37–74. Retrieved from https://www.cambridge.org/core/journals/business-h...

Porter, M. E., & Kramer, M. R. (2011). Creating shared value: How to reinvent capitalism—and unleash a wave of innovation and growth. Harvard Business Review, 89(1-2), 62–77. Retrieved from https://cb.hbsp.harvard.edu/cbmp/pl/70896911/70897102/14ee51e753d1f9aa221ab5181a934e71

Porter, M. E., & Millar, V. E. (1985). How information gives you competitive advantage. Harvard Business Review, 63(4), 149–160. Retrieved from https://cb.hbsp.harvard.edu/cbmp/pl/70896911/70897065/625dc70cb48584d0f75794815d3fcf24

Purkayastha, A., & Sharma, S. (2016). Gaining competitive advantage through the right business model: Analysis based on case studies. Journal of Strategy and Management, 9(2), 138–155. doi:10.1108/JSMA-07-2014-0060

Optional Resources

Ashtiani, Z. M., & Karimi, S. (2016). A study on effect of market orientation and Michael Porter's Five Competitive Forces on performance of Bahman Group. International Journal of Advanced Biotechnology and Research, 7(5), 228–241. Retrieved from https://bipublication.com/files/ijabr20160528_Sharif.pdf

Christensen, C. M., Bartman, T., & van Bever, D. (2016). The hard truth about business model innovation. MIT Sloan Management Review, 58(1), 31–40. Retrieved from http://mitsmr.com/2cBmhTk

Diana, C., Mirela, I., & Sorin, M. (2017). Approaches on the relationship between competitive strategies and organizational performance through the Total Quality Management (TQM). Quality - Access to Success, 18(S1), 328–333. Retrieved from http://www.srac.ro/calitatea/en/

Viltard, L. A. (2017). Strategic mistakes (avoidable): The topicality of Michel Porter’s generic strategies. Independent Journal of Management & Production, 8(2), 474–497. doi:10.14807/ijmp.v8i2.580

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Explanation & Answer

Attached.

Surname |1
Student’s Name
Professor
Subject
Date
Influence of IT in the Creation of Competitive Advantage in Organizations
Competitive advantage can be defined as a process whereby an organization acquires or
develops a set of attributes that make it better and outperforms its competitors (Wang).
Competitive advantage is always linked to the customer values (Ashtiani). This implies that
competitive advantage can be achieved when the organizational values approach the customer
values within the competitive range (Ashtiani). Therefore, the business model of an organization
becomes a major source of the competitive advantage (Purkayastha and Sharma) because it is in
the model of the business that an organization is able to meet the customer values and hence the
creation of competitive advantage.
It then means that organizations have to develop competitive strategies through cost
leadership, differentiation and global segmentation strategies (Ghemawat). Organizations can also
create competitive advantage by creating economic value through reconceiving products and
markets, building supportive clusters for industry and redefining productivity in the supply chain
(Kramer and Darwin). It is all about efficiency. It is the efficiency of an organization that makes
it gain a greater competitive advantage (Saper).
How IT Contributes to Competitive Advantage
Information Technology (IT) has been found to be of significance towards the competitive
advantage. According to Carr, companies can always gain competition over their competitors
through the use of the information technology. IT enables companies and organizations to develop

Surname |2
operating methods that are efficient and also increase the broader market changes of a company
(Carr). Also, Porter and Millar stated that information technology affects competition by changing
the rules of competition through the changes in the structure of the industry, giving the companies
new ways through which they can outperform their competitors, and also spawning the whole
business from within the current operations in the company. It can, therefore, be concluded that IT
has a significant contribution to the competitive advantage.
Risks Associated with the Use of Techno...


Anonymous
Very useful material for studying!

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