How information gives you competitive advantage

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How information gives you competitive advantage

  1. 1. How information gives you competitive advantage Presented by : sandeep Gunjan Abhinabh Shikhar Rishabh Jain Sidhant Serawat 1
  2. 2. IntroductionInformation revolution It changes industry structure and therefore the rule of competition it creates competitive advantage by giving companies new way to outperform their rivals It spawns whole new businesses 2
  3. 3. Discussion Why IT has acquired significance and how it is affecting all business How the new technology changes the nature of competition Outline a procedure that managers can use to assess the role of IT in their business 3
  4. 4. Strategic Significance (cont.)Transforming the value chain• It generates more data about activities and products . Information that was not available before . There is a higher information content now• It enhance the linkage between both inside and outside the company• It allows companies to coordinates activities in widely dispersed geographical location 4
  5. 5. Transforming value chain Information technology is permeating the value chain at every point, transforming the way value activities are performed and the nature of the linkages among them. Firm infrastructure Human resource management Technology development ProcurementSupport Automated Flexible Automated Telemarketing Remote warehouse manufacturing order servicing ofactivities Remote equipment processing terminals for salespersons Computer scheduling Inbound Operations Outbound Marketing Service logistics logistics and sales Primary activities 5
  6. 6. Changing the nature of competitionInformation technology is changing the rulesof competition in three ways: – Changing industry structure – Creating competitive advantage – Spawning new businesses 6
  7. 7. Changing the nature of competitionChanging industry structure Threat of new entrance Bargaining power of suppliers Rivalry among existing competitors Bargaining power of buyers Threat of substitute product or services Five competitive forces 7
  8. 8. Changing the nature of competitionChanging the nature of competition Competitive Advantage Cost advantage Differentiation advantageCost lowering: wide set information provides opportunity to reduce excessive expense at any part of value chainEnhancing differentiation: IT make it possible to customize the product. 8

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