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IT and Competitive Advantage

The success of an organization depends on its ability to secure a favorable advantage over its competitors. The trend of business today is the incorporation of computer technology into the operations of the business. IT resources are expanding the capabilities of businesses; hence enhancing market expansions, increasing processing, and communication with clients. Leveraging IT resources within the organization will boost the organization’s performance and affect its competitive advantage. This will result to cost reduction, differentiation, and enhanced focus as argued by Porter (2008) in the three generic strategies.

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In my organization, sales have increased because of reduced costs of production. This has made the firm ahead of the competitors. Many clients prefer our products since they are cheap and affordable even in these hard economic times. The incorporation of technology into the procession of products makes them unique and easily identifiable by the clients. Lastly, incorporation of the generic strategies in the firm, as suggested by Porter (2008), has led to a smooth running of the firm focusing on other innovations other than the unhealthy competition. The focus enhances the incorporation of other innovations to the products because of further research and peace of mind in the management team.

Cultivation of a relevant IT culture is necessary for the achievement of competitive advantage. IT culture refers to how the IT functions are positioned structurally within the organization and the philosophical considerations provided to the IT functions. The people should be in a position of interacting freely with the technology within the organization to ensure maximum efficiency and effectiveness. Adoption of the IT resources within the organization will further benefit the organization in reducing costs. The approach will benefit the firm since it will remain at an advantage on the cost compared to the competitors. The resources could be used as advertising channels, and establish online transactions within the organization. The firm will have to deliver the products to clients who will be more satisfied due to the reduction of movement challenges and expenses in search of the products.

IT resources can be incorporated in further research on product differentiation. This move will ensure the firm’s capability to adopt a better product unique in the contents and features. This will boost client satisfaction and reduce processing costs for the producer. This will make the firm powerful because of this knowledge. Haag & Cummings (2008) note that information is power. This relies heavily on the concept that knowledge is power. Incorporation of IT within the organization will mean the acquisition of knowledge from research. In this regard, the use of IT especially the overarching Management Information System (MIS) function will ensure ease of messaging, assimilating, and distributing of information and knowledge (Haag & Cummings, 2008). This will ensure the creation and sustainability of competitive advantage. Knowledge will ensure maintained the focus of the management. The management team will not have to waste their time and resources on unnecessary approaches but will have vast information and knowledge of the appropriate channel to follow.

When adopting the IT channel it will be relevant for the firm to employ experts in the management of IT resources. The experts will ensure the technological tools are aligned with the business processes appropriately.

In conclusion, the incorporation of IT resources in the organization will leverage business intelligence within the organization. Influencing the business intelligence will mean the firm will have collective information about; the customers, competitors, business partners, and the competitive environment among other factors influencing the firm. It is also crucial that the organization is safeguarded from information loss or theft. IT resources should be provided with the best security measure for maximum efficiency and effectiveness. This will ensure confidentiality and accountability, which are relevant in achieving a competitive advantage.

References

Haag, S., Cummings, M. & McCubbrey, D.J. (2008). Management information systems for the information age. (4th ed.). New York: McGraw-Hill/Irwin.

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Porter, M. E. (2008). Competitive advantage: Creating and sustaining superior performance. (First Free Press Edition 1985). New York: The Free Press.

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StudyCorgi. (2022, January 5). IT and Competitive Advantage. Retrieved from https://studycorgi.com/it-and-competitive-advantage/

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StudyCorgi. 2022. "IT and Competitive Advantage." January 5, 2022. https://studycorgi.com/it-and-competitive-advantage/.

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StudyCorgi. (2022) 'IT and Competitive Advantage'. 5 January.

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