Use of Information technology For Competitive Advantage
Document Type:Research Paper
The companies or the organizations are able to exploit the changes in the competitive field. The use of information technology allows organizations to manufacture the goods and services at a lower cost of production and goods of high quality. The impact of technology allows for the organizations to generate great sales in higher margins or targets compared to the competing organizations. Attaining the competitive advantage is important for the organizations. As (Baltzan and Phillips 2010, p. Mainly the business can settle on launching new technologically advanced services, improve Staff productivity through automation of service provision. The use of information technology is a newly embraced revolution that is entering the economy in force. It’s something that cannot be avoided. All companies and organizations are being forced to adapt the changing tends to improve and be at same levels with other market giants.
This has been effective due to the sudden drop in the cost and accessibility, processing and the transmission of information. We can as well say that information technology is changing the final product in general, the packaging of physical goods. The way services are offered and the channels of communication developed to create value for their customers. The most important idea that brings an understanding of the purpose of information technology in any competition is the idea of “value chain”. This idea creates a distinction between the economic and technological activities a company does to be involved in the business. The value addition a company is respected for is the number of willing buyers ready for the organization’s products and services.
These are systems that help in shaping the competitive advantage. The supplier or customer base can be created by improving relationships through the use of relationship management systems or applications. The examples of such platforms include telephones, mobile devices, the internet and the use of ATM machines. The use of extranets to build switching costs and software applications that enables organizations to move to competing products if the suppliers are slow in payments. These sites include the Amazon and Alibaba B2B platform. In every value activity, there are cost drivers that bring the cost advantage. Similarly, the organization's activities may result in differentiation. The information technology is bringing recommendable changes to the value chain of productions at every position, this brings transformation and changes to the way work is done and nature of connectivity among them.
This is bringing changes and reshaping the way the buyer attains his or her product. This is the major factor that the information technology approach in business has attained significant support compared to the rest mode of business ideas (Porter and Millar, 2018). The technology can help organizations find a better supplier in the market niche. The internet has a platform B2B that can be of help to businesses especially small ones and helps them to find alternative suppliers. A B2B is an online marketplace platform that collectively brings together willing buyers and sellers. (Ramey, 2012) Technology can be used to develop business entry barriers. Technology market barriers are created to allow the business to thrive. This is mostly being used by business owners, they end up creating business profiles on Google plus (Ramey, 2012) Companies have started researching in the information bias (Iedp.
com, 2011). This is used in the market's predictions. An example is placing a bet on a certain presidential candidate using the information they attain from various sources. The same case applies to the financial markets they utilize the same process to get to desired firm value. Technology has continuously changed over time. This has really affected the organizations business pressure. This kind of pressure results in rapid changes in most of the industries. The construction industry is not left behind when it comes to impactful global information technology trends (Cakmak and Tas, 2012). When we analyze the technology used in the construction industry it becomes clear to us that the contractors mostly apply the high percentage technology in their operations and work.
The fact is that the number of external contributors in the company is greater than the internal feed. The company success is based on the set framework where the inputs from individuals are received in a decentralized way. The Firefox Company use discipline in coding and programming. This places quality control over the whole process. This gives the people the ownership feel (Xu and Quaddus, 2013) Google the leading innovator mostly applies the notions of crowds’ management and arguments. This secrets has helped Amazon venture in different sectors and handling huge numbers of customers without compromising the product quality. The business is customer-centric and the prefer offering what customers require. Having the good balance and control, vertical and horizontal integration helps in accelerating the product cycles and venture into new areas especially markets.
(Xu and Quaddus, 2013). The first company that enters in any market has the added advantage of being the initial and Core Company to offer service in the market. Microsoft Company in the internet and software applications. The argument about success in innovation industry is not necessarily associated with much money you have it's about how you spend the little you have to embrace technology. Other factors affecting the success of an innovation include the effective management of the generated ideas. This is the procedure adopted from the time idea is born until the time this idea is put into the useful product In the case where the top management is not willing to support an idea of innovations then it is highly predictable that the chances of the business survival are very low.
They will always perform poorly and take the least positions in innovation trends and culture. On another note, (Kleiner 2012), it's only very few firms have managed to get best in intellectual capital especially on technological information. Examples of these companies include Amazon and Apple, these companies believe in the notion that the innovation speed surpasses the risks of information leakages to the competitors. Therefore the use of technology and innovation continually can be used to deal with the issues of intellectual property. The speed of the technological changes is high. The information technology processes on information storages, data transmission is experiencing tremendous growth. This is facilitated by the use of huge databases that require the support of technical engineers to keep systems up and steady.
(Porter and Millar, 2018). The companies are currently generating trillions of data packets that can be collected and captured. All these capabilities were not there before. Such sophisticated technologies have allowed room for more data and information analysis and this has led to expanded data usage and storage. They have established their market dominance through the use of information technology Works cited O’Brien, J. A. & Marakas, G. M. 2011, Management Information Systems, 10th Edition, McGrawHill, New York, USA. & Phillips, A. 2010, Business Driven Technology, 4th edn, McGraw-Hill Irwin, Boston, USA. Xu, J. and Quaddus, M. Information Systems for Competitive Advantages. & Lee, J. 2006, Electronic Commerce 2006: A Managerial Perspective, International edn, Prentice Hall, Upper Saddle River, NJ. Iedp. com. How to Use Information for Competitive Advantage - IEDP.
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