He delegated to a corporate staff officer the responsibility for developing technical strategy and coordinating the R&D facilities. In companies where technology is exploited well, the technology unit selects projects that support business goals. Over a nine-year period, one division in company 7, the fast-growing chemicals company, had three general managers. In companies 8 and 9, the chief technical officers report to a level below the president. George Steiner, Top Management Planning (New York: Macmillan Press, 1978). The article traces the application of IST to competitive business strategies, from its beginning at Harvard Business School (the impetus being supplied by Porter's book … He prides himself on his technological expertise and is the author of several articles in respected technical journals. It is number one in sales in the industry, has an excellent technical reputation, and attracts and maintains top technical performers. Companies that exploit technology well do not just continually funnel more resources into that area; they sort out the tasks and set priorities using detailed criteria. Next. 3. In company 2, management reviews the business and technology plans at the same time. 0000006125 00000 n Why is it one company may pursue a technological advance and later reap rewards in the marketplace while another may pump as many resources into a similar project and never make it to the marketplace? Managers allocate funds among projects that will support and maintain their technological leadership in specified areas. Company 9, the large equipment manufacturer, also shows a stable profile. Company 8, the largest company in the survey, produces transportation equipment. The orientation of top managers must change if the company is to continue with its new strategy most successfully. 0000002917 00000 n Traditional retailers are sitting on a powerful competitive weapon, and they’ll continue to operate less efficiently, lose market share and leave millions in new revenue streams and profits on the table unless they pull the trigger. Exhibit I Rating of companies in use of technology as a competitive weapon. In my experience, however, companies that exploit technology well have three conditions in common: 1. Information technology as a competitive weapon Information technology as a competitive weapon Diebold, John 1986-01-01 00:00:00 Information technology – an amalgam of computers and communications – is changing the way virtually all businesses are building a new competitive edge. The content shown may differ from the edition of this book sold on Mighty Ape. Heads of the technology units as well as business and other functional heads work together in a several-day session to develop the company strategy. In company 2, the staff rarely carries out major activities. Since technology has been a crucial component of the organization’s competitive advantage, its IT governance archetype can be characterized as an IT duopoly. Corpus ID: 166670288. HTC recently complained that Samsung has “strategically declined” to provide it with crucial parts for years. In the companies surveyed, managers base decisions to start projects on five criteria: (1) supporting business goals, (2) maintaining and building technological leadership, (3) solving a customer’s problem, (4) developing a window on technology, and (5) pursuing a technological advance. But increasing R&D investments alone does not ensure that companies will successfully exploit technology as a competitive weapon. Michael Dell, founder of Dell Computer, puts it bluntly: “The Internet is like a weapon sitting on the table, ready to be picked … Now, because it has a new president, the company is changing and the technology planning capability of the business planning unit is becoming stronger. Literature in this area abounds with a number of frameworks for identifying and categorizing opportunities. In company 2, on the other hand, the chief technical officer sits in on the important business and strategy meetings. 0000003999 00000 n Competitive Strategic Window: The Competitive Strategic Window analyses the competitive landscape in terms of markets, applications, and geographies. It relies on informal meetings between the chief managers and the vice president for technology. In companies where the technology plan is presented first, management is likely to use it as an important factor in screening business ideas. The global technology market is growing at lightning speed, replacing industrialization as the world’s driving force of productivity and change. Skip to main content.sg. 0000000981 00000 n From 1976 to 1987, the annual number of new joint ventures rose six-fold; by 1987, three-quarters of these were in high-technology industries. The construction industry shows some evidence of strategic planning implementation; however such concepts are mainly adopted by large contracting companies that have the resources to identify and develop competitive weapons such as information systems/technology (IS/IT). Banking Technology as a Competitive Weapon: Essinger, James: Amazon.sg: Books. Its top managers came from different disciplines. *FREE* shipping on qualifying offers. To derive the companies’ positions on the continuum (see Exhibit I), I asked knowledgeable business people, some of whom work for the companies and some who do not, to rate them according to the emphasis each places on technology and according to their effectiveness in using it as a competitive weapon in maintaining and developing their businesses. The business managers are even expected to handle special projects by drawing on their line people. Because his connection with the business decision-making process is remote, the function he represents is considered rather unimportant. While this system maximizes the exploitation of the R&D organization, it does not necessarily produce optimal overall results. Jay W. Lorsch and Paul R. Lawrence, “Organizing for Product Innovation,” HBR January–February 1965, p. 109; and Paul R. Lawrence and Jay W. Lorsch, Organization and Environment (Boston: Harvard Business School, Division of Research, 1967). (A customer is broadly defined as the user of the product or process. ISs themselves have long been recognized as a competitive weapon (Ives and Learmouth, 1984, and Callon, 1996). There is evidence that companies can effectively move from one point along a continuum to another, as company 7 is doing. Un article de la revue Revue internationale P.M.E. While their strategies may be very different with respect to technology, each is effective in its particular markets and products. There are two main components of any IT application are its 0000001821 00000 n Clearly, either strategy can be carried to an extreme. In companies that rely heavily on technology in their strategy, such as companies 1 and 2, the chief technical officers report directly to the president, connecting the central research effort to top management. Quite different from this is the planning function of company 8’s technology unit. I am not suggesting that the technology unit should operate in the same way as the rest of the company. In company 2, the aerospace manufacturer, the scientists and engineers in the technical organization allocate the available dollars to projects based on their determination of what will help the company stay abreast of the technology relevant to its business. A former meta defining weapon, the SG553 was recently nerfed, and for good reason. It has depended on a reliable product and a very motivated field sales organization to maintain its market position. (Volume 1, numéro 3-4, 1988, p. 255-340) diffusée par la plateforme Érudit. olpaperf05g2 - USING INFORMATION TECHNOLOGY AS A COMPETITIVE WEAPON Prepared for Dr Mary Lacity IS 6800 Management of Information Systems Prepared by. The author of this article has studied nine companies that have R&D investments to see how those that use technology […]. (See the sidebar for capsule descriptions of the nine companies.). In forming such a business strategy the companies sacrifice a healthy balance among their functions.4. The use of information technology (IT) as a competitive weapon has become a popular clich; but there is still a marked lack of understanding of the issues that determine the influence of information technology on a particular organization and the processes that will allow a smooth coordination of technology and corporate strategy. One member of the company’s planning staff describes it this way. Downloadable! This preview is indicative only. It did not, however, fully appreciate the financial consequences of its strategy. Exhibit II Where companies fall on the continuum vis-à-vis three conditions for companies that exploit technology well. In this company, managers first treated technology as a secondary concern, then as a primary one, then as secondary again. 2. A strong, central R&D organization dominates its technical development effort. Business and technology units differ as to the amount of uncertainty, time delay for information, and orientation of the people that is appropriate for each. In the case of company 4, however, the shift across the continuum indicates instability. Companies have been using technology as a competitive weapon for centuries. 5. This article explains that information databases are not only to be prized and jealously guarded, but that the Information Systems Technology (IST) that allows manipulation of information can be wielded as a formidable weapon in the marketplace. The technology asset is the second most important asset of IT use as a competitive weapon. Merry Christmas! Executive Training; Available Courses; About Finadium. Company 7 is a fast-growing chemicals company with sales of $3 billion. Every two years, management reviews the budgets to ensure that dollars are well spent to maintain technological leadership. The Competitive Strategic Window helps the vendor define an alignment or fit between their capabilities and opportunities for future growth prospects. Rather than develop a technical staff function capable of communicating with this group or influence the business planning staff himself, the chief technical officer tried to work directly with the president of the company, but with little success. It is, nonetheless, a steady innovator and a firm supporter of R&D. The use of information technology (IT) as a competitive weapon has become a popular cliché; but there is still a marked lack of understanding of the issues that determine the influence of information technology on a particular organization and the processes that will allow a smooth coordination of technology and corporate strategy. In the technical organizations, top managers also have great influence over what the R&D facilities undertake. All companies should not necessarily use technology more, or more effectively, as a part of their strategy. The author of this article has studied nine companies that have R and D investments to see how those that use technology successfully as part of their competitive strategies differ from those that do not or don't do it successfully. Search. First, they connect the technology decision-making process with business decisions. The staff that works for the chief technical management is equally strong and has similar responsibilities. A technology is only valuable when it can integrate systems and make IT applications cost effective in their use. 2. In company 6, the staff managers are much more involved in decision making. Logistics players are responding in interesting ways to establish technology as a competitive weapon. Data is becoming a competitive weapon for … In the companies that place little emphasis on technology’s contribution to the business, top managers often “run out of time” for reviewing the technical plan. By solving a customer’s problem, usually by providing technical service, scientists and engineers can get ideas for new or improved products or process changes, especially if the customer is technically sophisticated, like the OEM customers of computer manufacturers. Competitive edge. Previous. WorldCat Home About WorldCat Help. Linking business to technology In organizations that are leaders in technology, the involvement of the top business and technical managers in decision making, planning systems, the timing of decisions, and structuring the company itself all strengthen the link between technology and business goals. 68 0 obj << /Linearized 1 /O 71 /H [ 981 478 ] /L 250381 /E 53395 /N 10 /T 248903 >> endobj xref 68 21 0000000016 00000 n Each company is successful in its own market. Company 1 has a stable pattern. The technology unit undertook the project and the business manager funded it. Communication between functional groups deteriorates when the systems are not consistent with each other. Only ten years old, it is now a market leader in its niche of computer software products, although competition is cutting its edge in the marketplace. However, if you’re just starting out in the game, you might be overwhelmed by the different types of characters available in the game. 0000001628 00000 n Its investment in R&D has grown steadily, though a sales slump resulted in a cutback in R&D funds for two of the last three years. Transformation in Retail: The demands from the Retail sector have increased significantly - frequent status and shipping updates, constant improvement to systems to serve customers better, and the ability to buy goods online and pick them up in-store. But, if company 9 should decide to place more reliance on technology as a competitive weapon, in addition to examining the amount of resources directed toward technology, it would have to satisfy the three conditions I have listed and which I now discuss in greater detail. 12, No. In companies 7, 8, and 9, the technical plan is presented after the business plan. Homework Help. 4. 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