Suppose you are a manager being asked to develop computer-based applications to gain a competitive advantage in an important market for your company. What reservations might you have about doing so? Why?
Manager is the one who is responsible for having awareness of new emerging technologies and techniques related to operate businesses present in this modern world economy. Definitely, the managers have an idea about the importance of growing e-business or e-commerce application in today’s economy then he must be knowing about as, to what he should try to do next? This all matters, when marketing the business becomes too hard and difficult. It will be very difficult for the managers. As, it is the most effective, useful or valuable words for the business. If he/she is unaware or lacking knowledge about useful tools affiliated with information technology. Whereas, most important is that one should know business tactics as how to stand against competitive market in this modern era using hi-tech technology. Being a manager the first initiative you are going to take is organizing and managing a team of experts and users who can put valuable input towards the development of the application (Boar, 2001).
How could a business leverage its investment in information technology to build strategic IT capabilities that serve as a barrier to new entrants into its markets?
Mostly, building a strategic IT platform is considered as an expensive it for the businesses. A way to leverage your investment in IT is beneficial through putting your investment in Hi-Tech computer technology systems to make your work performance better and effective. Developing new technology for your business is always effective. As, it helps in introducing latest products and services. The most important aspect is that without advanced IT capability the development of new products and services would not be possible (Boar, 2001).
The biggest benefit of investing in the Information Technology is that you create barriers for the new entrants to come and stand against your business as a competitor.
How could a business use Internet technologies to form a virtual company or become an agile competitor?
The agile companies are dependent mainly on Information Technology. Through it, customers are able to modify solutions according to their needs. Moreover, it helps in bringing products and introducing to the market in an effective and cost-efficient manner (Tan, 2002).
Whereas, virtual companies are those that help the organization in a useful manner that has a linked between assets, ideas and people. Competitors, subcontractors, suppliers and customers are the ones who have inter-organizational relationship with the information systems provided by the virtual companies (Tan, 2002).
How could a business use information technology to increase switching costs and lock in its customers and suppliers? Use business examples to support your answers.
Well! When we talk about to increase switching cost using information technology, it is always beneficial for the customers and suppliers in terms of innovative information systems that make them become dependent upon the latest technology. Also, they are able to feel reluctant against paying cost of time, money, effort and inconvenience while thinking of switching to a new firm or another competitor (Tan, 2002).
For example; if businesses start investing in the latest equipment that is used for IT sector can be able to energize the customers and suppliers towards creating a useful as well as valuable relation among those working with you in the business.
Boar, B. (2001). The art of strategic planning for information technology (1st ed.). New York: Wiley.
Tan, F. (2002). Global perspective of information technology management (1st ed.). Hershey, PA: IRM Press.