ROLE OF IT

Critical Assessment of the Role of IT in Generating Competitive Advantage

Executive summary

This report aims to critically assess the role that information technology (IT) plays in the organisations in their pursuit of gaining competitive advantage. In doing so the report assesses and describes the role, identity, and relationship of information systems to business and business processes, organisations, management and management functions. The report also assesses the role of networks, data and information handling, network technologies and their use in business. In addition to this, the contribution of information technologies in the functions of business has being discussed. Eventually, the report provides an application of Porter's value chain activities to a business Papa John's.

Executive summaryi

Role of Information Technology in organisations in gaining competitive advantage1

Role, identity, and relationship of information systems to business and business processes2

Role of networks, data and information handling, network technologies and their use in business3

How information technologies contribute to the role, position and function of business and organisations4

Application of the primary and secondary activities of Porter's value chain5

Primary activities5

Inbound logistics5

Operations6

Services6

Outbound logistics6

Marketing and sales7

Support activities7

Procurement8

Technology management8

Human resource management8

Infrastructure8

Conclusion9

References10

Critical Assessment of the Role of IT in Generating Competitive Advantage

Role of Information Technology in organisations in gaining competitive advantage

In the modern day organisations, there persists a condition of severe competition among the organisations. In order to face this competition, organisations are constantly striving to develop a competitive advantage that no other organisation can replicate. This competitive advantage enables the organisation to compete with others and achieve the strategic goals set by the organisations. Recently, the use of information technology in the organisation have increased to such an extent that it has started to be perceived as a commodity (Dewett & Johns, 2001, pp. 313-346). However, there are numerous benefits that results from integrating information technology in the organisations. Owing to the characteristics associated with the information technology, its integration plays significant role in assisting the organisations in their pursuit of gaining competitive advantage.

Whether the organisation strives towards having a low cost leadership or a differentiation strategy, each strategy requires the organisation to have the capability to enhance efficiency, being creative and original, providing best quality and high customer responsiveness. The use of information technology affects the manner in which the strategy of an organisation whether large or small scale affects the organisational performance. Owing to this, the implications of various kinds of information technology in the business affects both the quest of strategy as well as its effectiveness in making the organisation gain competitive advantage (Dewett & Johns, 2001, pp. 313-346).

Just like any other organisation, “Papa John's”, strives to become the best pizza maker across United Kingdom. The nature of the business of Papa John's and the kind of services they provide to their customers requires an essential use of information technology. Without integrating information technology in their business, Papa John's will not be able to fulfil their promises of fastest delivery or best quality. Information technology enables Papa John's to provide its customers innovative services like online ordering, ...