Competitive advantage for it

2. PRESENTED BY:
IQRA RAIS
PRESENTED TO :
MADAM: FARKHANDA!
CECOS UNIVERSITY

3. COMPETITIVE ADVANTAGE OF INFORMATION
TECHNOLOGY

4. INFORMATION TECHNOLOGY
 (IT) is the use of any computers, storage,
networking and other physical devices,
infrastructure and processes to create, process,
store, secure and exchange all forms of electronic
data.

5. DEFINITION:
INFORMATION TECHNOLOGY
 Information Technology (IT) is the amalgamation of
hardware, software, data, people and procedures
that enables business objectives depending on
management’s involvement in IT.

6. COMPETITIVE ADVANTAGE
 A competitive advantage is an advantage over
competitors gained by offering consumers greater
value, either by means of lower prices or by
providing greater benefits and service that justifies
higher prices.

8. COMPETITIVE ADVANTAGES
 What competitive advantages do you have?
 How are you better than your competitors?
 Do you have a unique team, partner, invention,
intellectual property, insights, or expertise that others
don’t have?
 How long will the competitive advantages last?
 Why will customers care?
 Why will customers choose your product or service,
instead of your competitor’s?

9. HOW THE INFORMATION REVOLUTION AFFECTS
COMPETITION
Changes industry structure there by altering the
rules of competition
Creates competitive advantage by giving new
ways to out perform rivals
Spawns whole new businesses

10. HOW IT CREATES A COMPETITIVE ADVANTAGE
Differentiate a product or service
Improve business processes (lower costs)
Change a business structure
Create new business

11. IT AS A COMPETITIVE WEAPON -
SUSTAINABILITY
 Very few companies sustain their competitive edge
over the long term
 Sustainability occurs when it is difficult or impossible
for the competition to respond

12. PILLARS SUPPORTING SUSTAINABLE ADVANTAGE
• Lead Time
• Information leaks
• Followers take short cuts
• Followers implement better solutions
• Competitor Analysis
 (Difficulty of competitor to respond or copy application)
• Supply system analysis
• Market capture
• Switching costs

13. RELATIONSHIP OF CAPABILITIES, INNOVATION,
CUSTOMER VALUE, COMPETITIVE ADVANTAGE
 Innovation encourages the creation of values that
customers want (customer value).
 Innovation can either be used to build new capabilities or to
translate the existing capabilities into value that customer
want (customer value).
 The creation of customer value gives higher profits than the
average market profit of the competitor’s (competitive
advantage).
 The change from the internal and external environment
toward competitive advantage of a new innovation.
 Innovation also formed from a thorough analysis toward
customer’s requirement toward the product.

14. LEGAL PROTECTION OF INNOVATION
 Patents -- exclusive rights to a new product,
process, substance or design.
 Copyright -- exclusive rights to artistic, dramatic,
and musical works.
 Trademarks -- exclusive rights to words, symbols or
other marks to distinguish goods and
services; registered with Patent
Office.
 Trade Secrets --protection of chemical formulae,
recipes, and industrial processes.
 Contracts --contracts between firms and between
a firm and its employees can restrict
transfer of technology and know how.