Using IT for Competitive Advantage   Leave a comment

They key question is what is your organisation’s core competency? And from that, are you using IT to improve that core competency?

There is a growing body of knowledge that lends weight to the argument that investment in the right mix of information systems improves economic performance. Specifically, getting this portfolio right has the following results:

  • improvement in the bargaining power with suppliers and customers
  • reduction in operating costs
  • lowering of processing costs
  • enhancing product differentiation
  • increasing barriers to entry

But, the focus of those making decisions should not be solely on the current tense. Benefits do flow on into the future.

Necessarily, these IT investment decisions are made with respect to the business vision. Is the vision to be a low cost producer? Is it to be an exporter of quality goods? Is it to be highly responsive to customer requirements? Are you seen as an innovative and cutting edge?

The answers to these questions will lead to the decisions that need to be made regarding IT spend. That is, how will IT be best used for your competitive advantage. For example:

  1. do your portfolio of information systems improve the efficiency of information flow?
  2. are you capturing how well you know your customers?
  3. are you using this captured customer information to improve your product offering (lower cost or differentiation)?
  4. do you know the history of all of your input costs, and do you analyse their trends?
  5. what is your attitude toward innovation, is information technology assisting in innovation management?

Information Technology can have such a positive influence on your organisation. Are you taking advantage of all that is on offer?

For more, visit Dellium Advisory, follow on Twitter, connect using LinkedIn, or review my strategy and futures-centric blog.

Posted August 15, 2014 by terop in ICT Strategy, Innovation, Technologies

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