The Internet, IT, and Competitive Advantage: Boom, Bust, or Balance
-
Upload
joy-carter -
Category
Documents
-
view
216 -
download
0
Transcript of The Internet, IT, and Competitive Advantage: Boom, Bust, or Balance
-
7/27/2019 The Internet, IT, and Competitive Advantage: Boom, Bust, or Balance
1/11
Presented for DDBA 8512: I.T. for Competitive Advantage
Dr. Chad McAllister, Instructor
Presented for DDBA 8512: I.T. for Competitive Advantage
Dr. Chad McAllister, Instructor
1
Group A ~ Week 2-3 ~ Joy Carter, Group LeaderGroup A ~ Week 2-3 ~ Joy Carter, Group Leader
-
7/27/2019 The Internet, IT, and Competitive Advantage: Boom, Bust, or Balance
2/11
Piccoli, G., & Ives, B. (2005). IT-dependent strategic initiatives and sustained competitive advantage: A review
and synthesis of the literature. MIS Quarterly, 29(4), 747776. Retrieved from Business Source
Premier database
Piccoli, G., & Ives, B. (2005). IT-dependent strategic initiatives and sustained competitive advantage: A review
and synthesis of the literature. MIS Quarterly, 29(4), 747776. Retrieved from Business Source
Premier database
2
Oh, W., & Pinsonneault, A. (2007). On the assessment of the strategic value of information technologies:
Conceptual and analytical approaches. MIS Quarterly, 31(2), 239265. Retrieved from Academic Search
Premier database.
Oh, W., & Pinsonneault, A. (2007). On the assessment of the strategic value of information technologies:
Conceptual and analytical approaches. MIS Quarterly, 31(2), 239265. Retrieved from Academic Search
Premier database.
The Internet, I.T. and Competitive Advantage: Boom, Bust, or BalanceThe Internet, I.T. and Competitive Advantage: Boom, Bust, or Balance
McAfee, A., & Brynjolfsson, E. (2008). Investing in the IT that makes a competitive difference. Harvard
Business Review,86(7/8), 98107. Retrieved from Business Source Premier database.
McAfee, A., & Brynjolfsson, E. (2008). Investing in the IT that makes a competitive difference. Harvard
Business Review,86(7/8), 98107. Retrieved from Business Source Premier database.
Sethi, V., & King, W. R. (1994). Development of measures to assess the extent to which an information
technology application provides competitive advantage. Management Science, (40)12, 1601
1627. Copyright 1994 by Management Science. Reprinted by permission of Management
Science via the Copyright Clearance Center. Retrieved from ABI/INFORM Global database.
Sethi, V., & King, W. R. (1994). Development of measures to assess the extent to which an information
technology application provides competitive advantage. Management Science, (40)12, 1601
1627. Copyright 1994 by Management Science. Reprinted by permission of Management
Science via the Copyright Clearance Center. Retrieved from ABI/INFORM Global database.
-
7/27/2019 The Internet, IT, and Competitive Advantage: Boom, Bust, or Balance
3/11
Barua, A., Konana, P., Whinston, A., & Yin, F. (2004). An empirical investigation of net enabled business value.
MIS Quarterly,28(4), 585620. Copyright 2004 by the Regents of the University of Minnesota.
Reprinted with Permission. Retrieved from ABI/INFORM Global database.
Barua, A., Konana, P., Whinston, A., & Yin, F. (2004). An empirical investigation of net enabled business value.
MIS Quarterly,28(4), 585620. Copyright 2004 by the Regents of the University of Minnesota.
Reprinted with Permission. Retrieved from ABI/INFORM Global database.
3
The Internet, I.T. and Competitive Advantage: Boom, Bust, or BalanceThe Internet, I.T. and Competitive Advantage: Boom, Bust, or Balance
-
7/27/2019 The Internet, IT, and Competitive Advantage: Boom, Bust, or Balance
4/11
1. COMPETITIVE ADVANTAGE 3. RESPONSE-LAG2. VALUE CHAIN
Michael Porter relies on the
activity-based theory of the firm
Michael Porter relies on the
activity-based theory of the firm
Porter (1985) defines the value
chain as the basic tool for
understanding the role of technology
in competitive advantage (p. 166).
Porter (1985) defines the value
chain as the basic tool for
understanding the role of technology
in competitive advantage (p. 166).
Piccoli & Ives discuss the Response-
Lag phenomenon, as well as divergent
assessment measures for competitive
advantage.
Piccoli & Ives discuss the Response-
Lag phenomenon, as well as divergent
assessment measures for competitive
advantage.
4. CAPITA6. Concentration, Turbulence
& Performance Speed5. SAIT & NBT
(Competitive Advantage Provided by an
Information Technology Application)
provides insights on how to relevantly
investigate the use of technology by
study participants.
(Competitive Advantage Provided by an
Information Technology Application)
provides insights on how to relevantly
investigate the use of technology by
study participants.
Can you afford to use outsourced IT
services? Can you afford not to?
Can you afford to use outsourced IT
services? Can you afford not to?
Who are your competitors? How many
of them are out there posing a relevant
threat to your business. Are your
performance/delivery times efficient,
satisfactory, and/or competitive?
Who are your competitors? How many
of them are out there posing a relevant
threat to your business. Are your
performance/delivery times efficient,
satisfactory, and/or competitive?
4
The Internet, I.T. and Competitive Advantage: Boom, Bust, or BalanceThe Internet, I.T. and Competitive Advantage: Boom, Bust, or Balance
-
7/27/2019 The Internet, IT, and Competitive Advantage: Boom, Bust, or Balance
5/11
1. CLEAR DEFINITIONS1. CLEAR DEFINITIONS 2. ONLINE STRATEGY2. ONLINE STRATEGY
In todays highly technological environment, the lines between
I.T., Internet technologies and services, and business
operations and strategies have all been blurred. Perhaps to an
industry, the definitions may need to be specifically tailored, but
as Porter (1985) points out Technology is embodied in everyvalue activity in a firm, and technological change can affect
competition through its impact on any activity (p. 166)
In todays highly technological environment, the lines between
I.T., Internet technologies and services, and business
operations and strategies have all been blurred. Perhaps to an
industry, the definitions may need to be specifically tailored, but
as Porter (1985) points out Technology is embodied in everyvalue activity in a firm, and technological change can affect
competition through its impact on any activity (p. 166)
3. MEASUREMENT & ASSESSMENT3. MEASUREMENT & ASSESSMENT 4. SPECIFIC INTERNET TOOLS4. SPECIFIC INTERNET TOOLS
5
Not just an online presence or landing page, but a fully
purposed and developed website, with the tools,
information and capability to capture user data and
translate it into training, sales, and marketing tools.
Not just an online presence or landing page, but a fully
purposed and developed website, with the tools,
information and capability to capture user data and
translate it into training, sales, and marketing tools.
While still somewhat instructive, many of the sources in this
weeks literature are not current, or do not reflect up to date
variables in technology , such as the impact of social media on
sales, advertising, and even hiring practices.
While still somewhat instructive, many of the sources in this
weeks literature are not current, or do not reflect up to date
variables in technology , such as the impact of social media on
sales, advertising, and even hiring practices.
This weeks literature left out substantive examinations of
SAAS (software as a service), outsourcing, and virtual
team building.
This weeks literature left out substantive examinations of
SAAS (software as a service), outsourcing, and virtual
team building.
The Internet, I.T. and Competitive Advantage: Boom, Bust, or BalanceThe Internet, I.T. and Competitive Advantage: Boom, Bust, or Balance
-
7/27/2019 The Internet, IT, and Competitive Advantage: Boom, Bust, or Balance
6/11
H1: There is a significant difference in the assessment of strategic value of information technologies
in small/medium (SME) firms versus larger/multinational firms.
H0: There is no significant difference in the assessment of strategic value of information
technologies in small/medium (SME) firms versus larger/multinational firms.
H1: There is a significant difference in the assessment of strategic value of information technologies
in small/medium (SME) firms versus larger/multinational firms.
H0: There is no significant difference in the assessment of strategic value of information
technologies in small/medium (SME) firms versus larger/multinational firms.
6
The Internet, I.T. and Competitive Advantage: Boom, Bust, or BalanceThe Internet, I.T. and Competitive Advantage: Boom, Bust, or Balance
H1: Training, technology fluency, and standardization of I.T. value measurement improves the
likelihood of competitive advantage.
H0: Training, technology fluency, and standardization of I.T. value measurement does not improve
the likelihood of competitive advantage.
H1: Training, technology fluency, and standardization of I.T. value measurement improves the
likelihood of competitive advantage.
H0: Training, technology fluency, and standardization of I.T. value measurement does not improve
the likelihood of competitive advantage.
-
7/27/2019 The Internet, IT, and Competitive Advantage: Boom, Bust, or Balance
7/11
The question of firm size and location is worth examining in light of assessing strategic value
of I.T. because of the interconnectedness of the global economy. This interconnectedness
stands in the face of persistent nationalism, cultural differences, and education/training
patterns in other nations.
The question of standardization of technological training standardization speaks to the
necessary component of measurement which will make the data measured fairly and
equitably usable.
The question of firm size and location is worth examining in light of assessing strategic value
of I.T. because of the interconnectedness of the global economy. This interconnectedness
stands in the face of persistent nationalism, cultural differences, and education/training
patterns in other nations.
The question of standardization of technological training standardization speaks to the
necessary component of measurement which will make the data measured fairly and
equitably usable.
7
The Internet, I.T. and Competitive Advantage: Boom, Bust, or BalanceThe Internet, I.T. and Competitive Advantage: Boom, Bust, or Balance
-
7/27/2019 The Internet, IT, and Competitive Advantage: Boom, Bust, or Balance
8/11
Barua, A., Konana, P., Whinston, A., & Yin, F. (2004). An empirical investigation of net enabled business value. MIS
Quarterly,28(4), 585620. Copyright 2004 by the Regents of the University of Minnesota. Reprinted
with Permission. Retrieved from ABI/INFORM Global database.
In this study, Barua and fellow authors make key distinctions between customer and supplier side digitation, while
illuminating study findings which show a positive correlation for both sides between technology integration and the
overall financial success of a firm.
McAfee, A., & Brynjolfsson, E. (2008). Investing in the IT that makes a competitive difference. Harvard Business
Review,86(7/8), 98
107. Retrieved from Business Source Premier database.
In perhaps one of the most relevant and applicable recent studies on I.T. and competitive advantage, the authors
provide details on the necessity, challenges, and responsibilities related to enterprise-level I.T. Particular attention is
paid to the subtle and overt pressures of globalization and differences in I.T. saturation around the globe. Executives
and other decisions-makers are called out and called upon to understand and research their I.T. needs specifically to
maximize the value of I.T. for their firm.
Oh, W., & Pinsonneault, A. (2007). On the assessment of the strategic value of information technologies:
Conceptual and analytical approaches. MIS Quarterly, 31(2), 239265. Retrieved from Academic
Search Premier database.
Pinsonneault and Oh provide a masterfully cogent view of the requirements for properly assessing the strategic value
of information technologies. They present and explore concepts including SAIT (strategic alignment of IT). This artilce
is a valuable resource for any I.T. professional, firm owner, or Executive.
Barua, A., Konana, P., Whinston, A., & Yin, F. (2004). An empirical investigation of net enabled business value. MIS
Quarterly,28(4), 585620. Copyright 2004 by the Regents of the University of Minnesota. Reprinted
with Permission. Retrieved from ABI/INFORM Global database.
In this study, Barua and fellow authors make key distinctions between customer and supplier side digitation, while
illuminating study findings which show a positive correlation for both sides between technology integration and the
overall financial success of a firm.
McAfee, A., & Brynjolfsson, E. (2008). Investing in the IT that makes a competitive difference. Harvard Business
Review,86(7/8), 98
107. Retrieved from Business Source Premier database.
In perhaps one of the most relevant and applicable recent studies on I.T. and competitive advantage, the authors
provide details on the necessity, challenges, and responsibilities related to enterprise-level I.T. Particular attention is
paid to the subtle and overt pressures of globalization and differences in I.T. saturation around the globe. Executives
and other decisions-makers are called out and called upon to understand and research their I.T. needs specifically to
maximize the value of I.T. for their firm.
Oh, W., & Pinsonneault, A. (2007). On the assessment of the strategic value of information technologies:
Conceptual and analytical approaches. MIS Quarterly, 31(2), 239265. Retrieved from Academic
Search Premier database.
Pinsonneault and Oh provide a masterfully cogent view of the requirements for properly assessing the strategic value
of information technologies. They present and explore concepts including SAIT (strategic alignment of IT). This artilce
is a valuable resource for any I.T. professional, firm owner, or Executive.
8
The Internet, I.T. and Competitive Advantage: Boom, Bust, or BalanceThe Internet, I.T. and Competitive Advantage: Boom, Bust, or Balance
-
7/27/2019 The Internet, IT, and Competitive Advantage: Boom, Bust, or Balance
9/11
9
The Internet, I.T. and Competitive Advantage: Boom, Bust, or BalanceThe Internet, I.T. and Competitive Advantage: Boom, Bust, or Balance
Porter, M. E. (Jan 2008). The five competitive forces that shape strategy. Harvard Business Review,
86(1), 78-93.Seminal author Michael Porter offers a contemporary examination of his five force strategy, originally
introduced decades earlier. Though the information is substantive and detailed, it is presented in an
easily digestible format. The author not only explains the 5 Forces, but delineates how changes in
modern day industry structures can and should affect the strategy and management of todays
businesses.
Piccoli, G., & Ives, B. (2005). IT-dependent strategic initiatives and sustained competitive advantage:
A review and synthesis of the literature. MIS Quarterly, 29(4), 747776. Retrieved from
Business Source Premier database.
This work represents a comprehensive review of literature (as of 2005) in the field of IT, strategy, and
competitive advantage. Piccoli and Ives focus on key concepts such as the response-lag phenomenon
and key barriers to erosion. The concepts and constructs explored in this review are still relevant,though an update of even more current sources and even newer technologies is warranted.
-
7/27/2019 The Internet, IT, and Competitive Advantage: Boom, Bust, or Balance
10/11
10
The Internet, I.T. and Competitive Advantage: Boom, Bust, or BalanceThe Internet, I.T. and Competitive Advantage: Boom, Bust, or Balance
Sethi, V., & King, W. R. (1994). Development of measures to assess the extent to which an
information technology application provides competitive advantage. ManagementScience, (40)12, 16011627. Copyright 1994 by Management Science. Reprinted by
permission of Management Science via the Copyright Clearance Center. Retrieved from
ABI/INFORM Global database.
In this important acknowledgement of the need for the development of accurate tools for measuring
the impact and value of I.T. on competitive advantage, the authors put forth several key factors and
present their proposed framework for such measurements, namely CAPITA. The authors also compare
the merits of the outcome approach vs. the trait approach, while providing valuable details on
Churchills guidelines for developing measurement tools which are both valid and reliable.
-
7/27/2019 The Internet, IT, and Competitive Advantage: Boom, Bust, or Balance
11/11
11
The Internet, I.T. and Competitive Advantage: Boom, Bust, or BalanceThe Internet, I.T. and Competitive Advantage: Boom, Bust, or Balance