Using It for Strategic Advantage Essay

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Using IT for strategic Advantage Objectives: At the end of the chapter you should be able to: • Identify the importance of IT. • Identify the process and concepts of technology strategy. Introduction. Implementing a full IT strategy can have advantages to a organization. The time to take the systems apart, the warranties challenges and the cost of keeping further parts on hand and rebuilding the machine, when included in the total cost, indicate it was far less luxurious to standardize on one vendor and buy those PCs than to build them. The most common strategies for considerate and accepting IT investments include the competitive “cost of doing business” disagreement, followed quickly—and not surprisingly, given the previously stated position— by the attachment of technology to a process. There is nothing wrong with either advance, but neither helps IT managers connect costs to a business result in a concrete way. Information technology becomes a strategic asset when it makes the entire industry adaptive and ready for change by connecting people, process, and information to drive results. How an organization process the results of its technology investments is important, because the continuous improvement of any function requires a clear way to measure performance against goals. The strategic importance of IT, therefore, becomes clearer when executives move away from Industrial Age metrics and toward a more holistic assessment of return on knowledge. 12 Importance of IT In fact, better measurement of the return on IT investments can yield strong overall financial returns. Companies that excel at managing the value of their IT investments outpace their peers in overall financial performance, according to research by The Hackett Group. Essentially, Hackett says, companies that better manage the business value of IT—including governance,
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