the internet, it, and competitive advantage: boom, bust, or balance

7/27/2019 The Internet, IT, and Competitive Advantage: Boom, Bust, or Balance

1/11

Presented for DDBA 8512: I.T. for Competitive Advantage

Dr. Chad McAllister, Instructor

Presented for DDBA 8512: I.T. for Competitive Advantage

Dr. Chad McAllister, Instructor

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


2/11

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

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

2

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.


Conceptual and analytical approaches. MIS Quarterly, 31(2), 239265. Retrieved from Academic Search

Premier database.

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

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.

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.

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.


3/11

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.

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.

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4/11

1. COMPETITIVE ADVANTAGE 3. RESPONSE-LAG2. VALUE CHAIN

Michael Porter relies on the

activity-based theory of the firm

Michael Porter relies on the

activity-based theory of the firm

Porter (1985) defines the value

chain as the basic tool for

understanding the role of technology

in competitive advantage (p. 166).

Porter (1985) defines the value

chain as the basic tool for

understanding the role of technology

in competitive advantage (p. 166).

Piccoli & Ives discuss the Response-

Lag phenomenon, as well as divergent

assessment measures for competitive

advantage.

Piccoli & Ives discuss the Response-

Lag phenomenon, as well as divergent

assessment measures for competitive

advantage.

4. CAPITA6. Concentration, Turbulence

& Performance Speed5. SAIT & NBT

(Competitive Advantage Provided by an

Information Technology Application)

provides insights on how to relevantly

investigate the use of technology by

study participants.

(Competitive Advantage Provided by an

Information Technology Application)

provides insights on how to relevantly

investigate the use of technology by

study participants.

Can you afford to use outsourced IT

services? Can you afford not to?

Can you afford to use outsourced IT

services? Can you afford not to?

Who are your competitors? How many

of them are out there posing a relevant

threat to your business. Are your

performance/delivery times efficient,

satisfactory, and/or competitive?

Who are your competitors? How many

of them are out there posing a relevant

threat to your business. Are your

performance/delivery times efficient,

satisfactory, and/or competitive?

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5/11

1. CLEAR DEFINITIONS1. CLEAR DEFINITIONS 2. ONLINE STRATEGY2. ONLINE STRATEGY

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

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

as Porter (1985) points out Technology is embodied in everyvalue activity in a firm, and technological change can affect

competition through its impact on any activity (p. 166)

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

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

as Porter (1985) points out Technology is embodied in everyvalue activity in a firm, and technological change can affect

competition through its impact on any activity (p. 166)

3. MEASUREMENT & ASSESSMENT3. MEASUREMENT & ASSESSMENT 4. SPECIFIC INTERNET TOOLS4. SPECIFIC INTERNET TOOLS

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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.

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.

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.

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.

This weeks literature left out substantive examinations of

SAAS (software as a service), outsourcing, and virtual

team building.

This weeks literature left out substantive examinations of

SAAS (software as a service), outsourcing, and virtual

team building.



6/11

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: 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.

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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.

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.


7/11

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 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.

7



8/11

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), 98

107. 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.


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.

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), 98

107. 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.


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.

8



9/11

9


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.


10/11

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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. ManagementScience, (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.


11/11

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