Using IT to gain Competitive advantage

Using IT to gain Competitive advantage

Summary

The strategy of operation plays a vital role for any organization. It provides various competitive advantages for the organization which also involves reduction in the cost of resulting product, the improvement in the quality of process as well as product quality, and also effect the effectiveness of the processes involved in the organization and its speed. The operation strategy of Southwest Airlines is considered as the best operation strategy as it is designed on the basis of various steps that provide the information about market like SWOT analysis.

Information technology increases the benefits for organization. It also creates a sense of effectiveness in the processes of organization. Southwest Airlines involves the information technology in their organization to make their operations more effective and efficient. The supply chain process used in the Southwest Airlines also uses information technology for eliminating the risk of shortage of food that affects their quality of service they offered to attract the customers all over the world.

Another case study of Nintendo also include in this paper. Nintendo is a manufacturer of gaming console that shows the similar usage of information technology, and basic tools like SWOT analysis before implementing an operation strategy to develop an effective and efficient operation process that can provide competitive benefits to this company. Due to such effective and unique operation strategy, Nintendo is an organization that known for its effectiveness of operations and strategy all over the world.

Body

Introduction

Information systems are very useful in managing an environment or an organization. It is appreciated and used all over the world especially in many leading organizations. The information technology systems based on the information of the organization and provide help in achieving corporate missions through this information database. There are 3 types of information systems named as financial, operation and strategic systems (Belmonte, 1997, P 23-29). These 3 systems are inter-related. For operation strategy both the operation and strategic systems are implemented and used.

The implementation of information system provides various competitive advantages to the organizations including support and flexibility to any change within the organization, provide help in identifying and managing risks and most important provide support in establishing and managing strategy for the future of organization either it is related to operational strategy or strategy for competition in market. The latest information systems are highly efficient and more effective which is also discussed in a research published in 2009 (Lowson, 2002, P 21-27).

The major and considerable factor of competitive environment is the management of knowledge. In order to take competitive advantages then organization must have to move towards information technology systems that provide helps in taking such advantages with the help of its knowledge database. Another benefit provides by the information system is the effective decision making which cannot be achieved without IT system. As this system maintains the records of the information either it is related to organization or related to customer, this helps the management when they are going to ...