Information and Competitive Advantages

Topic 1           : (Information and Competitive Advantages)

Date                : 1 October 2012

Venue             : D06-BK6

According to Proctor (2011), information technology (IT) is a branch of knowledge concerned with the management, development and use of computer-based information systems. In changes of technology so rapidly now, the organization must have strategy to always prepared in ensure their technology up to date. Refer to Howard et al. (1999), believed that if Information Systems (ISs) design and strategy development are addressed simultaneously, strategic competitive advantage can be gained. Meanwhile, according R. Kelly Rainer and Casey G. Cegielski (2011), strategic information systems (SISs) provide a competitive advantage by helping organization apply its strategic goals and increase its performance and productivity.

According to Steve Clarke (2001), the Porter’s model of competitive advantage seemed to be the most interesting. It assumes existence of five from different drives which force organizations to invest in information technology such as threat of new entrant, rivalry between companies, substitute products, customers bargaining power and also supplier bargaining power. So, from this the organization must have cerate competitive strategy. Refer to R. Kelly Rainer and Casey G. Cegielski (2011), a competitive strategy is a statement that identifies a business’s strategies to compete its goals, plans and policies that an organization seeks a competitive advantage in industry. That is, it seeks to outperform its competitors in some measure such as costs, quality, and speed.

Michael Porter’s propose that competitive advantage is to be gained from one of three generic strategies called differentiation, focus, and cost leadership. Differentiation is making product or service in some way different from competitors. Focus is the focus on a particular part of the market where organization aims to do better than competitors by its improved knowledge and skills. Cost leadership is generating an advantage by producing at a lower cost and the increase profit margins.  

For my view, the Air Asia airline Malaysia use the information technology with web presence like E-Commerce in online booking ticket that give the lower price for their customer. So, the customer can book early. From this topic, I already know how to ensure the business can be successful with make the good decision and good strategy with good leaders for ensure the business can competitive in best operational. So, in improve Human Resources practices, the organization must considers many issues like time, money, challenges and other issues to ensure the employee have the good knowledge and skill in provided them with the good decision in technology. (400 words)

References

Davenport, T. H. (1999). Process Innovation: Reengineering Work through Information Technology. Boston: Harvard Business School Press, 1993. Dell, M., Keynote Address at the Direct Connect Conference, Austin, Tx,August 25, 1999

http://www.airasia.com/my/en/home.page

Mehdi Khosrowpour, Jan Travers. (2000). Emerging Information technologies for competitive advantage and economic development: 1992 Information Resources Management Association International Conference, Idea Group Publishing.

Porter, M.E., & Millar, Ve. (1996). How information gives you competitive advantage. In Managing Information for theCompetitive Edge (AUSTER E and CHOO CW, Eds), 71–92, Neal-Schuman Publishers Inc., New York.

Proctor, K. Scott (2011), Optimizing and Assessing Information Technology: Improving Business Project Execution, John Wiley & Sons.

R. Kelly Rainer, Casey G. Cegielski. (2011). Introduction to IS: Supporting & transforming business (3^rd edition), John Wiley & Sons Inc.

Steve Clarke. (2001). Information systems strategic management: an integrated approach, Routledge Taylor & Francis group.