For example, a more costly product design and more expensive raw materials can reduce after-sale service costs. 60-78. Exploring mobile device management with an I.T. Large-scale production is no longer essential to achieve automation. See Gregory L. Parsons, “Information Technology: A New Competitive Weapon,” Sloan Management Review, Fall 1983, p. 3. Its expansive e-commerce site now has it sending appliances into all 50 states. 3, pp. Pershing General Hospital is a 125-bed, […] The banking and newspaper industries have a high information-technology content in both product and process. Knowing this information allows you to give the customer’s exactly what they want, which … Choose the two or three areas in your business that could most benefit from streamlining, and start there. Advantages Of Information Technology Information Technology Essay. 4 (July–August 1985): 149–160. Your benefit is how you increase the company's profit. The technology increases a company’s ability to coordinate its activities regionally, nationally, and globally. Alfred D. Chandler, Jr., The Visible Hand (Cambridge: Belknap Press of Harvard University Press, 1977), p. 86. Senior executives can follow five steps to take advantage of opportunities that the information revolution has created. Sophisticated information systems segment your list so you can target new buyers and big spenders and spend little time on “lookers.”. Sears took advantage of its skills in processing credit card accounts and of its massive scale to provide similar services to others. #CompetitiveAdvantage #BusinessStrategy The term "competitive advantage” refers to a unique advantage a company has over its competitors. Identifying opportunities to spawn new businesses requires answering questions such as: What information generated (or potentially generated) in the business could the company sell? With your unique website you can differentiate your products from your competitors. Harvard Business Publishing is an affiliate of Harvard Business School. If the target segment has unusual needs, broad-scope competitors will not serve it well. Advantages of Information Technology. 8. Examples of Competitive Advantage are as follows: Competitive Advantage Example – 1. Your automated programs can track numbers of sales, customers, and transaction details. Ann, you don’t even need to use every one of these programs right away. For example, convenient, accessible information on maintenance and service procedures is an important buyer criterion in consumer appliances. Different activities require a different mix of the two components. Without a competitive advantage, your business has no unique method of drawing in customers. It offers a competitive advantage by providing information on comparisons customers draw between you and your competitors, which helps you to make decisions about pricing and customer preferences. Competitive scope has four key dimensions: segment scope, vertical scope (degree of vertical integration), geographic scope, and industry scope (or the range of related industries in which the company competes). It is very likely that information technology will play a strategic role in an industry that is characterized by one or more of the following features: These may help identify priority business units for investment in information technology. Information technology (IT) can be defined in various ways, but is broadly considered to encompass the use of computers and telecommunications equipment to store, retrieve, transmit and manipulate data. 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