INFORMATION SYSTEM &

INFORMATION TECHNOLOGY:
ITS USE AS A COMPETITIVE & STRATEGIC WEAPON
BY BOBB & HARRIS
REPORT BY MARILETTE C. MANUEL
DECEMBER 10, 2016
 Data
BUSINESS REALIZATION: processing aid
It is NOT the data that matters,
but how it is managed and
utilized. Competitive &
strategic
weapon
BRIEF OVERVIEW
Successful
Reasons for success as identified by IT

successful IT companies
Reusable
tech base

Partnership Strong IT
bet. Staff staff
& Mgt.

Common themes Clear Corporate Mission

(Wightman, 1987) Utilization of IT as a corporate resource

Marketing position that advocates IT
usage
BRIEF OVERVIEW 2

• IT must demonstrate its potential to provide a

sustainable competitive advantage.
• Merely providing an advantage would be
insufficient and that advantage could be easily
duplicated
INFORMATION TECHNOLOGIES

• merely provides a
tool for the
implementation of
the business
strategy
• does NOT define
or shape the
strategy
(Ferguson, 1996)
AS A RESULT…

• Satisfied clients = Loyalty

• But more information needed for smarter
products = Loss of privacy
TECHNOLOGY DEVELOPMENT CYCLES

Implementation
• Must be properly handled Assessment
• Should be very dynamic as NO amount
of planning could cater for unforeseen Planning, Dev’t,
pitfalls or benefits Implementation

• Are monumental tasks

• Necessitates resources
1. STRONG, COMPETENT IT STAFF
Successful
• strategically valuable and difficult for IT

competitors to imitate (Ross, 1996)

Reusable
tech base

Partnership
Another bet. Staff Strong IT
staff
Became aspect of & Mgt.

the IT
Leverage
IT standard
Potential
1. STRONG, COMPETENT IT STAFF

Previous literature:
• Inventory distribution system and network of
suppliers: reduce its inventory costs
• Value of IT and the advantage of IT was measured
by its return on investment (ROI)
1. STRONG, COMPETENT IT STAFF
Challenge
Formal accepting new
The longevity secret training
technology
• technology may provide the advantage
• human asset provides the longevity On-the-
job exp.
• spending would be to no avail if there
were NO competent IT staff

Focused Working
leadership relationships
2. TECHNOLOGY ASSET
Successful
• is only valuable when it can integrate systems IT

and make IT applications cost effective in their

Reusable
use tech base

two main components Partnership

bet. Staff Strong IT

• architecture, & Mgt. staff

• and its data and platform standards.

2. TECHNOLOGY ASSET

Proprietary technology
• has been seen as a source of competitive advantage Reusable
tech base

• difficult to patent due to the human factor

• marked increase in the diffusion of IT
3. RELATIONSHIP OR PARTNERSHIP BETWEEN THE IT
STAFF AND TOP MANAGEMENT
• Weak top management: LESS incentive to adopt any policies
proposed or implemented by an IS department (Liebs, 1998)
• BOTH must share the risks and the rewards for the effective
application and implementation of IT in the firm
• At Gillette, most IT applications are inter-divisional and require
effective communication, coordination and negotiation
3. RELATIONSHIP OR PARTNERSHIP BETWEEN THE IT
STAFF AND TOP MANAGEMENT
includes management’s ability to
conceive of, develop, and exploit IT
Technical skills
applications to support and enhance
other business functions (Mata, 1995, Managerial skills
Ross, 1996).
Examples IT Managerial skills
- Ability to functionally support and
coordinate with their managers, Forecasting skills
suppliers and customers.
- Ability to anticipate the future IT Friendship & trust
needs of their firm and its
customers
ANALYSIS TO BEST DETERMINE THE BENEFITS OF IT
POTENTIAL

Strategy

Industry
Customers
FirmSuppliers Competition
 Successful IT

CHALLENGES TO ENDURE Reusable

tech base
Dynamic,
rapid
Partnership
bet. Staff &
Mgt.
Strong IT
staff
response

• It must focus its IS efforts to support business • Business system thinking Long term
strategies and use IT innovations to develop focus
new, superior strategies, • Architecture planning,
• It must devise and manage effective • And informed buying
strategies for the delivery of low-cost, high
quality IS services, and • Plus, technical, business and
• It must choose the correct technical platform interpersonal skills
Competent IT
on which to mount its IS services (Feeny and
staff, & senior
Willcocks, 1998) management
HOW IT CHANGED THE COMPETITIVE
ENVIRONMENT
• Products and services enhanced with computer capability,
• Cost displacement,
• Enhanced decision support,
• Revision of the mission or objectives of the enterprise,
• Business interrelationships, and
• Creation of new products and services (Diebold, 1986).
THE COMPETITIVE ENVIRONMENT

• Efficient and effective planning systems are also

essential for a company to maximize its IT
potential.
• additional features at the same cost, better
guarantee of quality and service and superior
customer service Repeat purchases, and
Customers
they become
• Satisfaction = EVANGILIZERS
THE COMPETITIVE Shorter
product life
Stricter
performance
ENVIRONMENT cycles standards

Customer
Global demands for
Competition Pressure better service
& quality
in the
market

Price Product Process

IT
READJUSTMENT OR REVISION OF BUSINESS AND
FUNCTIONAL STRATEGY
• While this maybe disastrous for some companies, if a
company excels at this then it would have
dramatically positioned itself as a leader
• Boundary less world of cyberspace (and IoT): This
rapid response to change has put more pressure on IS
departments to develop new systems faster and to
demonstrate superior existing systems
IT DEVELOPERS DILEMMA: CHOICE OF PLATFORMS

Would an Intranet be better than a client server

platform? Or is Groupware a better choice than
individual workstations?

Key:
• Extensive capabilities
• Dynamic, easily responds to changing
environment

Customers
PLANNING FOR THE FUTURE

LONG TERM OBJECTIVES • Business system thinking

“Interpersonal skills are not usually the • Architecture planning,
strongpoint of system developers and IT • And informed buying
personnel and CIO’s, leaders and informed
buyers have the responsibility to ensure that
• Plus, technical, business and
interpersonal skills
there is effective communication between
Leadership
the IS department and all other
departments. “
Relationship building, communication, and
vendor development
PLANNING FOR THE FUTURE

• competition does not exists in a single fixed location

• access to the best resources,
• and would have no difficulties competing on the
traditional fronts such as price, product and
flexibility
• Area for research: IS and IT position on long term
customer and supplier relationship