Difference between revisions of "Sustained Competitive Advantage"

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'''Abstract'''
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== '''Abstract''' ==
  
 
Nowadays we are seeing a fast change in the current organization environments. This phenomenon is partly due to the opportunities that information technology (both computer technology and communication technology) has brought. Organizations that want to be successful and want to ensure their existence nowadays must not only be experts in their own business domain. These organizations must be able to respond quickly and adequately to changes. As Charles Darwin already said "It's not the strongest species that survive, nor the most intelligent, but the most responsive to change." Below two articles, which shortly discuss how certain organizations work to achieve their business goals, will be reviewed and a critical reflection will be given.
 
Nowadays we are seeing a fast change in the current organization environments. This phenomenon is partly due to the opportunities that information technology (both computer technology and communication technology) has brought. Organizations that want to be successful and want to ensure their existence nowadays must not only be experts in their own business domain. These organizations must be able to respond quickly and adequately to changes. As Charles Darwin already said "It's not the strongest species that survive, nor the most intelligent, but the most responsive to change." Below two articles, which shortly discuss how certain organizations work to achieve their business goals, will be reviewed and a critical reflection will be given.

Revision as of 11:27, 19 December 2012

Title: Information Technology and Sustained Competitive Advantage: A resource-Based Analysis.

Authors: Mata, J.M.

Publication: Department of Business Analysis & Research. Graduate School of Business, Texas A&M University

Year of Publication: 1995


Abstract

Nowadays we are seeing a fast change in the current organization environments. This phenomenon is partly due to the opportunities that information technology (both computer technology and communication technology) has brought. Organizations that want to be successful and want to ensure their existence nowadays must not only be experts in their own business domain. These organizations must be able to respond quickly and adequately to changes. As Charles Darwin already said "It's not the strongest species that survive, nor the most intelligent, but the most responsive to change." Below two articles, which shortly discuss how certain organizations work to achieve their business goals, will be reviewed and a critical reflection will be given.


Review and critical reflection

Information Technology and Sustained Competitive Advantage: A resource-Based Analysis According to the author it is not enough to just implement a system in an organization to save cost to achieve sustained competitive advantages. The competitor can easily imitate this by also implementing a similar system. In order to achieve a competitive advantage one must therefore focus on things that cannot easily be imitated by the competition such as knowledge, skills, etc. This article mainly discusses the important aspects that IT companies must take into account in order to achieve sustained competitive advantages. The writer has devised a model which could help companies to examine the potency of IT so the cutthroat competition can be surpassed. By using this model, companies can choose the right strategy to properly position themselves. They looked from a resource-based approach at the link between IT and sustained competitive advantages. From different literature studies by the writer there are five specific attributes of IT (customer switching costs, access to capital, proprietary, Technical IT skills and managerial technology IT skills) suggested that could serve as sources of sustained competitive advantages. The writer then examined in which way they actually serve for sustained competitive advantages. From this article emerges that managerial IT skills is the best IT attribute for sustained competitive advantage. This would be the only knowledge that can be obtained on a longer period and therefore cannot just be copied. The idea behind this is that it will cost a lot of time for the competitor to maintain the same knowledge, so the other company has sustained competitive advantage. In here technical IT skills is rated as a non sustained competitive advantage because a competitor would be able to train their own employees or to hire others when they do not have a certain skill themselves. However a company can catch up with the competitor by training their own employees, only when these are employees which are working in the same field. It could cost the competitive company a few years before it maintains the necessary Technical skills which makes sure that the other company still has a sustained competitive advantage. There is also some risk in hiring external staff for Technical IT skills, such as programmers. Hired programmers can perhaps build specific programs but one will not be sure that the same creativity/innovativeness can be reached that own employees have. Creativity is not a skill that can be learned within a minute, so the sustained competitive advantage can be achieved by using this skill. This can also be, as the writer expressed "learning by doing". At this point the writer has only looked at the general view of Technical IT skills. Perhaps with a deeper look at the technical IT skills he might have come to another thought about it.

Contributors

Karim Camara