FREE online courses on Information Technology - Chapter 4 IT AND CORPORATE
STRATEGY - Searching for Competitive Advantage
Strategy and structure must be considered together. Beyond
the adoption of a generic strategy like becoming the low cost producer, you want
to develop technology that will give you a competitive edge. The most difficult
part of gaining such an advantage is coming up with an idea. No one can teach
creativity or give a formula for it. By reviewing what competitors are doing,
staying abreast of the technology, and looking for analogies in other
industries, you can develop new ideas for strategic advantage.
It is likely these strategies will include the development of
inter-organizational systems and alliances with other firms. For a manufacturing
firm, IT strategy might involve technology embedded in a product such as the
computer chips found in automobiles to control the engine and exhaust. A
services firm might look for ways technology can add value to existing services,
make it easier to do business with the company, reduce cycle times, lower costs,
and make the other contributions.
