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Presented for DDBA 8512: I.T. for Competitive Advantage Dr. Chad McAllister, Instructor

Group A ~ Week 2-3 ~ Joy Carter, Group Leader

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 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. 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.

The Internet, I.T. and Competitive Advantage: Boom, Bust, or Balance

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.

The Internet, I.T. and Competitive Advantage: Boom, Bust, or Balance

1. COMPETITIVE ADVANTAGE
Michael Porter relies on the activity-based theory of the firm

2. VALUE CHAIN
Porter (1985) defines the value chain as the basic tool for

3. RESPONSE-LAG
Piccoli & Ives discuss the ResponseLag phenomenon, as well as divergent

understanding the role of technology

in competitive advantage (p. 166).

assessment measures for competitive

advantage.

4. CAPITA
(Competitive Advantage Provided by an

5. SAIT & NBT

Can you afford to use outsourced IT

6. Concentration, Turbulence & Performance Speed

Who are your competitors? How many

Information Technology Application)

provides insights on how to relevantly investigate the use of technology by study participants.

services? Can you afford not to?

of them are out there posing a relevant

threat to your business. Are your performance/delivery times efficient, satisfactory, and/or competitive?

The Internet, I.T. and Competitive Advantage: Boom, Bust, or Balance

1. CLEAR DEFINITIONS
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

2. ONLINE STRATEGY
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.

industry, the definitions may need to be specifically tailored, but

as Porter (1985) points out Technology is embodied in every value activity in a firm, and technological change can affect competition through its impact on any activity (p. 166)

3. MEASUREMENT & ASSESSMENT

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.

4. SPECIFIC INTERNET TOOLS

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 Balance

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: 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.

The Internet, I.T. and Competitive Advantage: Boom, Bust, or Balance

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 Internet, I.T. and Competitive Advantage: Boom, Bust, or Balance

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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), 98107. 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.

The Internet, I.T. and Competitive Advantage: Boom, Bust, or Balance

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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.

The Internet, I.T. and Competitive Advantage: Boom, Bust, or Balance

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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, 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.

The Internet, I.T. and Competitive Advantage: Boom, Bust, or Balance

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The Internet, I.T. and Competitive Advantage: Boom, Bust, or Balance