How can IT quickly change the balance of power in a business relationship?

Introduction

This report emphasizes on the impact of information technology (IT) for quickly changing the balance of power in a business relationships. Over the years, many companies have developed strategies widely supported by resources from the area of Information Technology as a means of gaining competitive advantage. In some cases these initiatives served only as to automate some of the organizational processes, comparing the efficiency of the company of some of its competitors, i.e., without generating any advantage over the competition. In other cases these initiatives, and improve the positioning of these companies in relation to certain performance criteria, could also leverage innovation of its products and its business processes.

Throughout this paper discusses some of the business aspects that influence the success of these initiatives, including the integration with the business model and the culture of the organization. This paper presents an initial proposal for environmental analysis of information technology (IT) and business processes of a firm as valuable resources and difficult to imitate by another organization, enabling them to establish and maintain competitive advantages over the competition. This discussion will ground with the analysis of real case studies, and demonstrating how certain organizational capabilities can influence the success of IT initiatives. Finally, the paper discusses also the result of IT investments when considering long time horizons, between 15-20 years. The proposal is to consider issues such as the maturity of the technologies adopted and established business relationships and their impact over the years.

Discussion

Evolution of IT in terms of business relationships

In the last twenty years the technology computing has been evolving in a way that has allowed gradually automate tasks previously related tediously by operators or clerks. The speed in transforming IT within a few years was not only benefits but also changes in the time of evolution of organizations. The need for information is as old as man, who has devised various ways over time to communicate. If initially a simple automation of tasks, Information Technologies have evolved, providing better methods of search and access to information and tools for optimal management of resources (Mathieson, 1991).

Given the steady pace of change and innovation, technologies become obsolete quickly, so it is necessary when establishing strategies within the organization not just a simple acquisition of technology, but a complete harmony between strategies, infrastructure and processes business, associated technology resources. The Information Technologies have gained strategic importance, since changing the way organizations operate, in redefining products, services and processes. The impact of Information Technology, in recent times, has grown in importance both in academia and in business (Wang, Richard, 2005). The Internet creates a universal space for information sharing, serving as a commercial alternative, changing the entire system of communication between people and businesses, and even consumer behavior by eliminating the boundaries between companies and nations. The study analyses the impacts of information technology in organizations, analyzing the changes at work in the behavior of people and organizations.

The strategic ...