508 Case 5

Topics: Strategic management, Risk, Management Pages: 3 (802 words) Published: May 27, 2013
Module 5
Renato E. Ngo

Critical Info. Tech. Decisions for
Business Executives

ITM 508

Professor: Dr. Mary Lind

April 25, 2013

"Agree or disagree: An IT strategy focused on maintaining a cutting-edge technology position is the most effective way to support any kind of overall business strategy ". IT strategy focused on maintaining a cutting-edge technology position seems like a good idea to support any kind of business strategy, but I would disagree to that statement. Acquiring cutting edge IT might give it a competitive advantage, but at greater risk because the IT is cutting edge and most likely not yet fully tested. On the other hand, the use of well-tested, mature IT that is also being used by many others reduces the risk, but it also may eliminate competitive advantage possibilities. Where an organization should be along the mature to cutting edge technology continuum depends a lot on the type of markets it is in (some are very dynamic), the competition it faces, the expectations of its stakeholders (including the investors), its financial condition, and other factors; cutting edge technology should not be the only focus on IT strategy. Many government agencies are in the mature section of the continuum because they tend to be more risk averse. However, there are government agencies, especially in the Department of Defense, that are very interested in being cutting edge in certain areas, and they have the funds and stakeholders to support this approach and its associated costs and risks. Many of DoD’s most risky IT-related undertakings are classified. Organizations are more likely to use cutting edge technology when they are in a dynamic market, such as offering or providing services competitively via the Internet, but this is also a very risky business. The cutting edge technology helps them to differentiate from their competitors to attract and retain customers. Cutting edge technology that offers an entirely new service has the...
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