Creating Business Advantage with Information Technology

Table of Content

Declaration 3

Executive Summary 5

Introduction 6

Scope 7

Developing Business strategies with IT 8

Porter's competitive model and Wiseman's strategic trust 8

The balance power among buyers and supplier with using IT 9

Increasing power of supplier 9

Increasing power of customer 9

Balancing power among buyers and supplier 9

Build barrier to entry with using IT 10

Increasing or decreasing switching costs 10

IT encourage adding value existing products and services 11

Reduce barrier to entry by using IT to enhance product and service 11

Change basis and nature of competition 12

Managing the acquisition of IT 13

Paul strassmann's models 13

Re-engineer key value of activities with external consideration 13

Change the balance power of business partners 13

Re-engineer key value of activities with internal considerations 14

Conclusion 15

References 16

Bibliography 18

Introduction

As information technology becomes more ubiquitous in both life and business activities, it becomes increasingly difficult to separate out the role of information technology in business activities from a description of the business activities themselves (Papp, R.

Business Process (EPC) in ARIS Express

English: Customer satisfaction rating scale

English: A business ideally is continually seeking...

2001)

Today, most of the companies can no longer ignore the importance of Information Technology in their organization to get competitive benefit. The firms can be said that they are heavily relying on IT for processing their work because IT has a power to change the entire organization such as size, net-profit, competitively, productivity, human activity efficiency and customer satisfaction. Companies always have to search for new ideas, processes, and methods that will make their company more effective and efficient (Molka, J and Isen, D. 1999).

Investing right technology, which makes a company unique and effective, is not that easy to be decided due to measuring the process of IT is invisible in some manner. Also, it is hard to figure out its...