This article aims to support general companies to respond to the problems of the information revolution. How to advance in information technology and how it affects competition and the sources of competitive advantage, how the information system can play a vital role in the competitive strategy of an organization? The information system has a substantial impact on a competitive gain in either price or differentiation. Technology impacts the value activities alone or permits firms to gain competitive advantage via exploitation modifications in ambitious scope. Different authors have highlighted their views concerning this topic thus enabling me to compile this article.
The most critical aspects of the article are that Information technology has explicitly had a powerful effect on bargaining affairs between buyers and suppliers since it impacts the linkages between firms and their suppliers, buyers, and channels. Information systems that cross-firm lines are getting common.
Finally, after surveying a broad scope of companies, we discover that the information system is transforming the policies of competition in three ways, namely; advances in information technology are modifying the industry structure .Secondly, the information system in a vital, growing lever that an organization can use to build competitive advantage. A firm’ s search for competitive advantage via information technology always as well spreads to impact company structure as a competitor’s copy the leader’s strategic innovations. The information revolution is spawning entirely new enterprises. These three effects are critical for comprehending the impact of an information system on a specific company and for formulating effective technique responses.
Depperu, D. and Gnan, L. (2006). The Role of the Competitive Context in the Business Strategy-Formulation Process. International Studies of Management & Organization, 36(3), pp.110-130.
James I. Cash, Jr. and Benn R. Konsynski, HBR March–April (1985) “IS Redraws Competitive Boundaries,” p. 134.