Revolution On Information Technology ( It ) Affects Competition By Changing The Alignment Of The Industry And Rules Of

1534 Words Sep 15th, 2015 null Page
Question 1
According to Porter’s article, revolution on information technology (IT) affects competition by changing the alignment of the industry and rules of competition. This makes competitive advantage in ways for companies to exceed their competitors and bring businesses in place. IT spread all through the value chain, which are activities performed in business at a low cost, and helped perform optimization functions for companies. This allowed the capture of information that wasn’t accessible before. The value chain are activities that have physical and information processing components. Technological advancements afflicted the physical components that businesses used and IT progressed in a way that was faster than other technologies, like physical processing. Computer controlled machine tools was quicker in manufacturing than the manual operating machines. IT also helped companies exploit linkages among activities and create new ones, which allowed companies to regulate their actions. Christensen states about two different types of innovations that companies started using. One is sustaining innovation, meaning that successful companies responded quickly to change in their markets. The other is disruptive innovation, which is a change to create new markets and gather new customers from unique products. The development of sustaining technologies are important to companies to create new and improved products that can be beneficial over competition. This is done by making…

Related Documents