Monday 7 January 2008

Competitive Advantage & IT

Paul Otelellini, head of Intel, says that more powerful mobile devices with Wimax connection will deliver a more personal internet within five years.

And Bill Gates, head of Microsoft, says that the human-computer interface (HCI), or the way people interact with computers will change dramatically, and within five years the keyboard and mouse will become obsolete.

Not only that, but so will the desk-top become redundant, as we all migrate to more mobile working & computing.

Perhaps no surprises with any of this, but what has it to do with
Competitive Advantage & IT?

One of the big debates in Business with Information Systems & Technology is this: Should (a) innovative applications of IT be used to achieve competitive advantage, or (b) business strategy be supported by innovative applications of IT?

For example, suppose you are a CIO, a Project Manager, or other IT Manager, seeking to exceed client/user expectations. Should you be looking for innovative ways (e.g. XML and the Asus Eee PC) of using IT for reduced cost, added value or customer benefit?

Or suppose you are a business manager or executive, pursuing a new or improved product, service or business process. Should you be turning to your IT advisors for advice on how best to achieve this with innovative ways of using IT?

In other words, from which direction should the initiative come; from Business or from IT? This is what the debate is about:
Achieving competitive advantage with IT - whose job is it?

Perhaps there is no debate. Perhaps innovation & initiative with and through IT should come pro-actively & collaboratively from both directions. Therefore, what are the organisation structures, culture and development processes like; do they encourage this collaboration?

But there's a third party ; present or prospective external customers; how are they brought into into the picture? Case studies in the use of IT for competitive advantage tell us that collaboration with and through this third party, the external customer, can be vital.

Getting back to (a) better work-mobility through & with IT, and (b) better Human Computer Interface/Interaction, should the seemingly inevitable changes be seen and used pro-actively for competitive advantage, and if so, by whom and how?

We have new/improved information & communications technology (ICT) coming down the road; how might we put it to good use? We're developing this new/improved product, service or business process; how might we use ICT innovatively for competitive advantage?

The changes forecasted by Paul Otellini and Bill Gates may not be surprising, and therefore not leading and especially not bleeding edge technology. But they do provide opportunities for achieving competitive advantage with IT/ICT, and achieving this depends on the good use of people, organisation and management.

The bottom line is this:
Competitive advantage with IT is not necessarily achieved through the use of leading or bleeding edge technology.
It is often achieved
- through innovative ideas for existing technology,
and this is down to synergy in people, organisation and management.

Nonetheless, knowing what new technology is coming down the road
- and knowing how you are going to use it before it becomes available, can give serious competitive advantage.


What's your experience of using IT innovatively?
What's your opinion?



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