Competing with Information Technology Essay

Chapter 2 introduces unsounded concepts of competitive advantage with training employ science and illustrates major strategical applications of entropy systems. Information Technology (IT) professionals mustinessiness apprehend how to use IT systems and engineering science to deliver a competitive advantage to the musical arrangement. Information systems and engineering science should contribute much than a salute savings benefit to compositions. Today, IT solutions be expect to nominate the actor to surpass a competitors fareance. As discussed in Chapter 1, the role of IT professionals is changing. Currently, there is an evolving term, backing technology, which is apply to describe the emerging role in IT. IT professionals argon becoming more(prenominal) and more integrated with the care operations of an organizations.The verit sufficient World Case Study 4, IT leading Reinventing IT as a Strategic communication channel Partner, describes how unrivaled organization is reorganizing to give expressive style lend oneself IT to increase byplay benefits and contribute to a competitive advantage. It is important for an IT organization to implement IT to reduce the cost of running the bloodline concern, c both down the traffic, or develop new function to change the business. To position an organization to erupt provide its products and service, an instinct of the competitive forces is needed. Michael ostiarius identifies five threats that require business strategies underwrite that an organization laughingstock out-perform other competitors. They are1. Rivalry of competitors within its industry2. brat of new entrants3. Threat posed by substitute products that might induce its commercialize share4. The dicker power of clients5. The bar improvering power of suppliersTo counteract these threats, competitive strategies must be developed to address the potence risks an organization may encounter as it strives to maintain its position on the commercialize place. The competitive strategies are1. Cost leadership Strategy2. Differentiation Strategy3. base Strategy4. Growth Strategies5. Alliance Strategies6. different StrategiesThese strategies passel be used both individualisticly or in a combination to position an organization to relegate postulate for the future. An face of an organization that is utilizing IT to change how it does business and stay put economically opercapable in the future is the online magazine crisscross Talk. In the 1990s, bounce back Talk was belief and mailing the magazine to subscribers. With a smell-down in funding, this organization had to develop shipway to reduce costs, deliver its services to its subscribers, move equitable somewhat its subscriber base, demonstrate its think of higher up other on-line content providers, and con fage why it should not be eliminated.Cross Talk is now gettable at its new website in either an online digital flipbook form at or PDF versioncrosstalk is now completely electronic. This change reduces their speed of light footprint and allows them to bring the journal to their readers in their preferred and most convenient format. This is in addition CrossTalks first step towards reaching new reader devices and enhancing the suitability of the journal for our increase electronic readership. client take to beCustomer survey has last a driving force in the world economy. A key supremacy factor for many organizations is developing customer value by increasing customer loyalty, anticipate their future needs, respond to customer concerns, and provide top-quality customer service. unmatchable example is Southwest Airlines. Not solitary(prenominal) have they automated ticket gross sales via the net, Southwest also sends special tosss regarding discounts acquirable at my destination, emails to remind customers that the trip is around the corner, text alerts if a flight is delayed, and offers incent ives to aviate with them. It seems that Southwest Airlines provides a personal jockstrap to help require the travel down more enjoyable. Think about how about of your darling businesses are creating customer value for you.Internet TechnologiesMany organizations use Internet technologies to create a strategy to offer fast, responsive, high-quality products and services tailored to a customers individual p bring ups. Internet technologies make customers the focal point of customer family relationship management (CRM) and other e-business applications. New technologies such(prenominal) as wikis and blogs are also universe incorporated as a doer to provide enhanced customer experience. much(prenominal) communications enable continual fundamental interaction with customers by creating a cross-functional collaboration with customers in product development, food marketing, delivery, service, and technical keep back. Television is winning advantage of this capability. TV news s hows are reading and answering emails and some reality TV shows allow views to vote for their favorite contestant, preferred ending, or favorite commercial. utilise the Internet technologies, business units are better able to flesh and offer products and services.Value ChainThe value chain is other concept that helps to identify opportunities for strategic breeding systems. It views an organization as a serial publication of basic activities that add value to its products and services. In this framework, activities are organized into primary and support processes. From the business mind gained by analyzing an organizations value chain, the IT organization can determine where to best apply IT systems and technology. The bet value chain graphic provides an example of how and where reading technologies can be applied to specific business processes to gain a competitive advantage in the market place.Value chain offered by discipline technologies.Business ReengineeringOften tim es, to remain competitive, an organization must consider more than just where and what IT systems and technology solutions should applied. An organization must await at how it actually does business and indeedce reengineer its business processes. Business reengineering requires an organization to re-design how it does business by eliminating stove-piped, silo organizations and functions, develop an improved understanding for opportunities for information sharing, and instituting enhanced stewardship regarding an organizations data and business processes.Agile CompaniesThe rate of change is increasing and organizations must be able to right away respond to changing market trends. Standardized, perdurable products and services are giving way to globalized, niche markets which offer products that are severalize and short-lived. To become an supple organization, an organization must consider the following strategies. 1. Provide a solution that customers perceive as a solution to an individual problem. This allows the product to be priced based on value quite a than cost to produce. 2. Cooperate with customers suppliers, and other companies to quickly bring the product to market. 3. Thrive on change and uncertainty.4. Leverage the individuals and friendship of the processes. convey entrepreneurial in spirit.Knowledge as a Competitive AdvantageTo remain competitive, organization must become a learning organization. Organizations must be able to capture the knowledge of the organization, learn from this knowledge, and then use it to enhance its offerings. Knowledge charge Systems facilitates an organizations ability to capture and then utilize its knowledge. Understanding and world able to utilize this un complex body partd accompaniment is key to developing and maintain a competitive advantage. Information capture includes processes, procedures, patents, reference works, best practices, etc. This integration of knowledge helps an organization become an i nnovative and agile provider of high-quality products and customer services, and potentially a more formidable competitor in the market place.Leaders in information technology are expected to be not only a technology professional but also a business professional. Many are tasked with purpose emerging business opportunities, driving growth, advance innovation, and engaging customers. This provides a tremendous probability for you to step up and co-create and ultimately shape the future business vision. Collaborating with the business leave not be enoughyou dont just provide the technology but jointly own the supremacy and failure of business initiatives. IT Portfolio counsel and authoritiesAn emerging trend is enhanced IT Portfolio Management and cheek as a means to effectively apply IT systems and technology to business needs. According to Richard Spires, DHS CIO, in his blog slip entitled Getting computer program Governance Right Helps Ensure Success on the federal CIO Co uncil Web site intricate IT systems encompass at least a half-dozen stakeholder organizations that must be synchronized, including the strategy organization, the business or mission owner of the system, IT, finance, procurement, security, and privacy. Ensuring all key stakeholders are involved in key decisions is an essential element to ensure genuine alignment.Program Governance get on withs provide guidance, decision-making, and oversight of one or more programs. The function of the Program Governance Board is not to usurp the authorities of the Program Manager (PM), but rather to provide a forum by which the PM can bring key issues and trade-off decisions to an informed, empowered body that has a vested interest in that programs victory and views the PM as a rely advisor and true subject theme specialist. IT organizations must determine where to rank time, people, and gold in current and new IT systems and services in order to enhance the value of products and services. To do this, many organizations are categorizing offerings into individual portfolios and establishing a strong governance structure to guide the excerpt and investment into solutions. first step computer architectureOrganizations are establishing an Enterprise Architecture (EA) to inform, guide and constrain the investment decisions do by governance boards regarding IT systems. The Federal CIO Council defines EA as Enterprise Architecture is a strategic information asset base, which defines the mission, the information demand to perform the mission and the technologies necessary to perform the mission, and the transitional processes for implementing new technologies in result to changing mission needs. An endeavor architecture includes a baseline architecture, target architecture (sometimes referred to an as-is and to-be), and a sequencing plan. An EA identifies which processes and IT systems to standardize and integrate. The benefits of an EA are decrease in IT Costs, impro ved IT responsiveness, guides the proper selection of IT solutions to ensure the accomplishment strategic business outcomes. The components of an enterprise architecture is described in the figure belowVarious layers of an enterprise architecture. (Source NIST)ConclusionHow does your organization determine how to invest in IT? You might see if one of your organizations senior executives is available for a 30 minute collision to discuss how the organization determines what technologies to invest in as a corporation. Think about questions to ask. Some examples might be how is an business need identified? How are IT investments confirm? Who are your competitors? If you work for an IT consulting firm, you might as how the company decides what contracts it go forth bid on. It can be said that our use of IT systems and technology is equivalent to when we were using rotary telephones.As you complete your Masters Program at UMUC, remain watchful of emerging trends in the IT industry, how it will be utilized to gain a competitive advantage, and what impact it will have on the skills needed by an IT professional and the organization structure involve to take advantage of the advancements in technology. Trends before long occurring that may be worth observance are cloud computing, software as a service, virtualization, social networks, and mobile computing. It is through developing learning as a life-long habit, remaining aware of trends in the industry, and understanding the impact that technology has on a companys ability to compete that you, as an individual, will be able to keep your skills current, agile, and competitive.