Investing in It

Topics: Strategic management, Information technology, Strategy Pages: 2 (635 words) Published: February 25, 2013
EXECUTIVE SUMMARY: Information technology alters the way an organization does business. It can “contribute to a robust knowledge capture and business intelligence environment.” (Horst, 2010) IT is a strategic asset, when implemented and used appropriately helps recognize the broader opportunity without which the organization will be vulnerable to displacement. I suggest a dual approach to information resource strategic management to harness the power of the technology: on one hand, the firm should develop the capability to implement efficiently a solutions on an opportunity-based approach focused on flexibility; end-user productivity and extensibility, on the other hand, it should embed its information resource system in the organization with a clear strategic alignment and establishing business processes that are synergistic with the technology. OVERVIEW

As mentioned in McAfee/Brynjolfsson article, “link between technology and competition has become much stronger and tighter since the mid-1990s” and to obtain sustainable competitive edge over competitors installing information resource system has become a necessity. Using information resources an organization can define new ways of doing business and creating a unique niche market. “Strategy is about performing different activities or similar activities in different ways, which together deliver a unique value to customers.” Rigid IT systems impede agility. “Information technology becomes a strategic asset when it makes the entire business adaptive and ready for change by connecting people, process, and information to drive results”. (Rasmus) Systems that invest heavily in custom-built, rigid enterprise system cannot expect much return and hinder to make the business adaptive. The key is not to “value technical nimbleness over leveraging technology to enable a strategic foundation” because “when there is no foundation, technology becomes a commodity and cannot promote differentiation.” ("Leveraging it for,"...

References: Horst, B. (2010, May 03). It for strategic advantage. Retrieved from
Leveraging it for strategic competitive advantage: Moving it from cost center to business partner. (2010, March 16). Retrieved from
Rasmus, D. W. (n.d.). Building strategic advantage through it.
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