Any concern or company that uses Information Technology ( IT ) for its operation and is leveraging it for deriving competitory advantage besides needs to believe about other facets of the engineering. Technical promotion and inventions entirely are non sufficient to do any concern attractive. IT decidedly plays a immense function in the extremely competitory concern universe now than earlier because of the promotion in the country and assorted ways it can act upon the rise or autumn of the concern.
Identify IT Factors That Pose a Hazard on Competitive Advantage
Any concern leveraging the IT to derive competitory advantage for its concern should be good equipped with proper substructure. IT takes portion in every facet of the concern and for efficient operation of the system. it is imperative that sufficient substructure is made available for the success of the organisation. A company should see implanting IT hazard consciousness and direction in every concern processes. Extensive research from the IT Policy Compliance Group has indicated that organisations reap important wagess when they proactively address IT risks. These wagess include. on norm. 17 per centum higher gross. 14 per centum higher net income. and 22 per centum better client keeping than rivals ( csoonline. com. 2011 ) . Businesss need to map IT hazards. processs. criterions. controls and policies for IT capablenesss and research countries that need betterment.
Harmonizing to Michael Porter. writer of Competitive Advantage. “cyber security is something that should be on the top precedence of any company that is leveraging IT to determine up its competitory advantage. Should confidential information about a business’ clients or fundss or new merchandise line autumn into the custodies of a rival. such a breach of security could take to negative effects. Protecting confidential information is a concern demand. and in many instances besides an ethical and legal requirement” ( Porter. 1998 ) . There are certain basic etiquettes that need to be followed to guarantee maximal security for the informations and to forestall it from falling into the incorrect custodies of the rival. Restricted entree. efficient catastrophe recovery systems. look intoing for exposures of the system. etc. are a few of the IT security measures that demand to be followed. Additionally. implementing “reasonable” infosec procedures and systems can forestall up to 88 per centum of all security breaches. harmonizing to a research survey conducted by the IT Compliance Group ( eweek. com. 2008 ) .
Proactive Business Leadership Support
The full direction squad should be good cognizant of the assorted corporate hazards and the steps required to besiege them. Most extended IT hazard does non originate from hapless proficient public presentation or from proficient personnel’s errors. Alternatively. IT risk most frequently arises from the failure of the concern leading to help with inadvertence of IT in some logical administration model. The internal hazards of an uneffective IT section ( which include hazards such as overspending. failed undertakings. unhappy concern users. low morale. ill executing applications. downtime. and careless usage of company resources ) are equal points to take a more dedicated attack to managing and authorising IT. Implementing a administration model allows corporate leading to guarantee that IT is executing right the first clip ( Murphy. 2011 ) .
Competitive Hazard and Advantage
A dedicated IT hazard direction produces three competitory advantages. One. less clip spent seting out fires and more clip spent concentrating on more productive and strategic work. Two. liberating up resources. forces and money to concentrate on more of import undertakings can be accomplished with a decently structured foundation. Three. the concern is in a stronger place to measure hazard and take on more hazardous or dearly-won chances. Overall. implementing a well laid out program to turn to assorted hazards and menaces by external factors. such as rivals. provides a great advantage for the organisation ( Ganesh. et Al. . 2010 ) .
Harmonizing to the article. How to Successfully Implement a Disaster Recovery Plan on ameinfo. com. “most major organisations are running critical endeavor applications such as Enterprise Resource Planning ( ERP ) . Supply Chain Management ( SCM ) . and Customer Relationship Management ( CRM ) . These applications are integrated across the endeavor to such an extent that they touch everyone from employees and clients to providers and spouses. and they are the anchor and life-blood of the organization” ( ameinfo. com. 2003 ) . Implementing a good catastrophe recovery program is extremely imperative to guarantee concern continuity. However. one of the biggest challenges is converting concern leaders to acknowledge the demand and fund the alteration.
An organisation should be prepared for all signifiers of catastrophes and calamities and have a catastrophe recovery program in topographic point that will let the system should work usually under any of these fortunes. This entirely will supply a immense competitory advantage and let the organisation to stay functional during possible down times. Natural or any other signifier of catastrophe is something that can non be predicted and the company should be good prepared to cover with any indecent incidents. Any concern using IT systems should hold proper backup and Restoration methods to reset the system in instance of exigencies.
Identify IT Factors That Support Competitive Advantage
Easy Availability of Information
There are three grounds engineering has a profound impact on concern research. peculiarly on selling: First. engineering changes the manner selling directors do their occupation. Second. these alterations lead to major accommodations in the countries that are of import to analyze. And 3rd. engineering provides new ways of making research. The most of import consequence of technological progress is the turning impact of IT and the increasing importance of service and relationships in the economic system. Future betterments in selling are likely to construct from developments in engineering and associating promotions in pass oning. hive awaying. and treating information about clients ( sciencedirect. com ) .
Promotions in IT do it possible for any concern to easy entree information about assorted facets of the company. Furthermore. entree to the cyberspace has made it possible for any information to be easy accessible to anyone sitting even midway across the Earth. Information about different providers. mark audience for the concern. rivals in the market. public sentiments are easy accessed through the World Wide Web and. if decently researched and utilized. supply a competitory advantage for the company.
Knowledge About the Rival
It is imperative for the success of any concern to be knowing about their rivals. Technology allows a company to derive entree to competitor information easy therefore supplying the company a competitory advantage. An of import part to a company’s success is to hold every bit much cognition about the rival. their merchandises and how they do concern. Having this cognition and procuring their ain trade secrets will let a concern to keep the advantage over their rivals and be able to accommodate to the alterations in the market while being good prepared to turn to them.
IT has made it possible to increase the skyline of the concern. Even a local concern has the possibility of spread outing its skyline to national or international degrees with the proper IT tools. Online communicating and societal networking make it possible for a concern to spread out to a planetary degree therefore leting them to tap in to a wider client and provider bases while giving them the advantage over rivals who have non yet expanded internationally.
Every company has hazard. This should be considered a good thing because no hazard equals no wages. It is non the fact that the concern has hazard or even how the organisation manages the hazard that affairs. It is how the company turns hazard into chance and competitory advantage that makes the difference. How rapidly a concern can place current and future hazard points and how they respond to them contributes greatly to their success. In fact. hazard direction is going a important facet of how good a company executes. and concern that excel at it have found a newfound competitory advantage.
Porter. Michael. 1998. “Competitive Advantage: Creating and Sustaining Superior Performance. ” 26 Dec. 2011. Free Press. 1998.
Ganesh Bhatt. et. Al. 2010. “Building and Leveraging Information in Dynamic Environments. ” Research v. 47 n. 7-8. p. 341-349. 29 Dec. 2011.
Ameinfo. com. 2003. “How to Successfully Implement a Disaster Recovery Plan. ” 29 Dec. 2011. .
Eweek. com. 2008. “How to Translate IT Risk Management into Competitive Advantage. ” 31 Dec. 2011. .
Csoonline. com. 2011. “5 Ways to Address IT Risk for Competitive Advantage. ” 30 Dec. 2011. .
Sciencedirect. com. 2006. “How Technology Advances Influence Business Research and Marketing Strategy. ” 31 Dec. 2011. .