Information Technology Cannot Really Give a Company a Strategic Advantage Because Most Competitive Advantages Don't Last More Than a Few Years and Soon Become Strategic Necessities That Just Raise the Stakes of the Game. Discuss?

1951 Words Dec 26th, 2010 8 Pages
INFORMATION TECHNOLOGY CANNOT REALLY GIVE A COMPANY A STRATEGIC ADVANTAGE BECAUSE MOST COMPETITIVE ADVANTAGES DON’T LAST MORE THAN A FEW YEARS AND SOON BECOME STRATEGIC NECESSITIES THAT JUST RAISE THE STAKES OF THE GAME. DISCUSS?

INTRODUCTION
The information technology (IT) revolution has had an enormous influence on how organizations/companies are managed. It can credibly be claimed that no other source of change has had more impact on the paradigms and practices that underline the management function. Though other developments such as the emergence of the global economy and the increasingly knowledge-based nature of modern organisations have significantly affected how organisations are managed, IT developments actually are an
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They quickly became strategic necessities; banks had to get ATM networks to stay in business. So they acquired their own machines and installed in their own premises or formed alliances with other banks to provide the service. Once they became widespread ATM networks could no longer be called strategic resources, which need to be, not only valuable, but also rare, inimitable, and non-substitutable. A good example is the ZIMSWITCH in Zimbabwe.
Given the above definitions the author is of the opinion that IT on its own cannot bring about tangible advantages. It is, therefore, merely a tool that can be used, in combination with good management and management information systems, to achieve a competitive advantage. Strategic advantage is competitive advantage broadened, deepened, maintained and sustained in the long term and is difficult to achieve. The author also agrees with other lines of arguments led by Garr (2003) who believe that IT cannot bring about a strategic advantage; to only as far as if it is used on its own without management information systems.
PORTER’S COMPETITIVE FORCES
In order to analyse how IT impacts on a company, that is whether it gives a company a competitive advantage, strategic advantage or it merely becomes a strategic necessity, it is necessary to see how IT has fared in fighting

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