Information and communication
technology (ICT) can affect competitive
advantage in many different ways. By
making vast amounts of information
available to all employees, ICT enables
the organization to respond effectively
to change or business opportunities. It
supports communication among teams,
enabling them to quickly deliver
strategic projects that contribute to
growth. Technology also improves
supply chain efficiency by enabling
communication and information
sharing throughout the chain.
technology (ICT) can affect competitive
advantage in many different ways. By
making vast amounts of information
available to all employees, ICT enables
the organization to respond effectively
to change or business opportunities. It
supports communication among teams,
enabling them to quickly deliver
strategic projects that contribute to
growth. Technology also improves
supply chain efficiency by enabling
communication and information
sharing throughout the chain.
CUSTOMERS SERVICE
ICT systems are capable of storing and
communicating vast amounts of
information. That gives employees the
ability to provide service based on
comprehensive customer information.
In a telephone call center, for
example, an operator can view the
caller's entire purchase history,
profile and preferences during the
call. This gives the operator the
opportunity to deal efficiently and
effectively with the call and to
improve customer satisfaction.
ICT systems are capable of storing and
communicating vast amounts of
information. That gives employees the
ability to provide service based on
comprehensive customer information.
In a telephone call center, for
example, an operator can view the
caller's entire purchase history,
profile and preferences during the
call. This gives the operator the
opportunity to deal efficiently and
effectively with the call and to
improve customer satisfaction.
PROJECT TEAMS
Organizations use project teams to
work on product development and
other strategic initiatives. According
to the website Effective Meetings,
using technology to hold virtual
project meetings over the Internet
reduces wasted travel time and
enables the teams to make faster
decisions, regardless of where
members are located. Faster decision
making reduces time to completion,
enabling teams to get new products to
market ahead of competitors.
Organizations use project teams to
work on product development and
other strategic initiatives. According
to the website Effective Meetings,
using technology to hold virtual
project meetings over the Internet
reduces wasted travel time and
enables the teams to make faster
decisions, regardless of where
members are located. Faster decision
making reduces time to completion,
enabling teams to get new products to
market ahead of competitors.
SUPPLY CHAIN
Linking members of a supply chain
with a communications network
allows an organization to respond
rapidly to business threats or
opportunities. Communicating an
increase in market demand enables all
supply chain members to adjust their
production schedules in line with the
change and deliver on time without
disruption.
Linking members of a supply chain
with a communications network
allows an organization to respond
rapidly to business threats or
opportunities. Communicating an
increase in market demand enables all
supply chain members to adjust their
production schedules in line with the
change and deliver on time without
disruption.
MOBILITY
Mobile communication technology
enables employees working away from
the office to access the same data and
applications as their office-based
colleagues. That means field service
technicians or sales representatives
can provide a high-quality service to
customers, regardless of where they
are, giving the organization a further
competitive advantage.
Mobile communication technology
enables employees working away from
the office to access the same data and
applications as their office-based
colleagues. That means field service
technicians or sales representatives
can provide a high-quality service to
customers, regardless of where they
are, giving the organization a further
competitive advantage.
SWITCHING COSTS
Technology provides a strong
competitive advantage when it creates
a barrier to entry for competitors. For
example, say an organization provides
a customized online ordering system
to a major client. A competitor would
have to build a matching system from
scratch to provide the same benefits,
giving the incumbent a strong
advantage. This type of advantage is
known as a switching cost. According
to a research paper from the IESE
Business School, switching costs are
becoming strategically important in
the increasingly networked ICT
environment.
Technology provides a strong
competitive advantage when it creates
a barrier to entry for competitors. For
example, say an organization provides
a customized online ordering system
to a major client. A competitor would
have to build a matching system from
scratch to provide the same benefits,
giving the incumbent a strong
advantage. This type of advantage is
known as a switching cost. According
to a research paper from the IESE
Business School, switching costs are
becoming strategically important in
the increasingly networked ICT
environment.
RESOURCES
According to a 1997 article in the
"Strategic Management Journal,"
information technology (IT) alone does
not deliver competitive advantage.
However, combining IT with other
corporate resources such as innovation and talented people can
create a powerful competitive
advantage that is difficult for competitors to match.
According to a 1997 article in the
"Strategic Management Journal,"
information technology (IT) alone does
not deliver competitive advantage.
However, combining IT with other
corporate resources such as innovation and talented people can
create a powerful competitive
advantage that is difficult for competitors to match.
By Ian Linton
