Itm 436 Mod 4 Case

"Is skill in implementing coordinated information technology really a competitive advantage for a firm? Why or why not?"

Implementing coordinated information technologies can help firms. Organizations of all sizes are using various information technology tools and applications in order to become more competitive. In many organizations, a percentage of total sales are usually devoted to the information technologies budget. Many experts believe, if information technologies are employed properly, they should make organizations more efficient and effective. To truly give a competitive edge, coordinated information technologies must be fully integrated. Firms today use one application that includes various functions, which is different from the past where organizations used different systems for different technology needs. Unified and coordinated information technology solutions are the answers. Also the managers of these firms must understand that information technology is not just computers, it is a wide spectrum, linked technologies that process all the available information.

Information technology without a doubt is changing how companies operate and all of their process, from how they create their products, but also the service of their products. Information systems if designed correctly will help organizations reduce the cost of products and services, assist with differentiation and focus strategies. There are 3 ways the information technology is affecting competition. First it is changing industry structure and starting to alter the rules of competition. Second it is creating whole new companies from within an existing company. And third, it is giving companies a competitive advantage to outperform their competitors.

Changing industry structure is categorized into 5 different areas: power of suppliers, power of buyers, emerging companies, substitute products, and the existing rival company. These five forces change based on the strength of the industry or the...