Published by:
Harvard Business Publishing
Length: 6 pages
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Abstract
The reduction in the cost of information systems has allowed computers to offer significant competitive advantage. This new technology allows companies to redeploy their assets and rethink strategy to produce gains in market share. Interorganizational systems can change the balance of power between the buyer and the supplier. New products of higher quality and custom design can also be generated by IS technology. Management must change the way it operates. The CEO must insist that the end product of IS planning communicate the true competitive impact of the expenditures involved. Managers should ensure the confidentiality of strategic IS plans and thinking. They should not allow use of simplistic rules to calculate IS expense levels. Interorganizational IS systems have repercussions in other parts of the business; managers must encourage creativity in R&D and must not be too efficient in IS resource allocation.
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Abstract
The reduction in the cost of information systems has allowed computers to offer significant competitive advantage. This new technology allows companies to redeploy their assets and rethink strategy to produce gains in market share. Interorganizational systems can change the balance of power between the buyer and the supplier. New products of higher quality and custom design can also be generated by IS technology. Management must change the way it operates. The CEO must insist that the end product of IS planning communicate the true competitive impact of the expenditures involved. Managers should ensure the confidentiality of strategic IS plans and thinking. They should not allow use of simplistic rules to calculate IS expense levels. Interorganizational IS systems have repercussions in other parts of the business; managers must encourage creativity in R&D and must not be too efficient in IS resource allocation.