It Business

* IT changing the basis of competition:

In today’s highly competitive world Information Technology is transforming innovation at its core. It allows companies to test various ideas quickly at a very low cost. Rapid innovation gives the company a competitive edge over its competitors. It allows the company to

1. Change its product/service offering

Wal-Mart Stores Inc., which frequently runs comparative in-store experiments with signage, displays and shelf layouts to see what influences shopper decisions. Wal-Mart can test different arrangements in a number of stores for a week or so to see which approach boosts sales the most. If different sign colors or unusual merchandise juxtapositions increase or depress relative sales, the stores can quickly share the information and implement the same plan. That said, store managers also have the ability to make decisions at their store to meet individual customer needs.

2. Position Itself competitively within industry

3. Improves manufacturing time and reduces cost

* IT changing the power in a relationship (with buyer or with supplier)

For new age businesses one of the success strategies is, selecting right suppliers and establishing business relationships with them. IT can help companies to influence supplier relationships and can provide benefits to both the consumer and the suppliers(e.g. reduced cost, ease of operation etc.)

1. IT systems can link manufacture and supplier

Li & Fung case

2. Just-in-time inventory system

According to Dick Hunter, vice president of Dell’s Americas Manufacturing Operations, “For Dell and our suppliers, information is increasingly replacing inventory, and we are regularly identifying, gathering and sharing new types and levels of data”

3. CAD to CAD link

Aerospace companies have required its major suppliers to acquire CAD (computer-aided design) equipment and link it directly to its own CAD installation. This move has dramatically reduced cost...