The information revolution is bringing about dramatic changes throughout the world in the way that business is being carried out. No company can afford to ignore the advantages that being current with information brings and the disadvantages to any company that is not current with business information being brought about by new and innovative technological methods because the cost of obtaining, processing and transmitting is quite low and is changing the way that business is being done. Even owners of businesses and senior executive now realize that to keep their departments competitive and at peak efficiency, they cannot leave the use of technology to the EDP or IS departments.
Information is changing the rules of competition and gives companies new ways to outperform their competitors in many ways and it generate many different forms of business usually within the company’s existing structure and in essence creates an entire new value chain. Information technology is affecting every aspect of businesses be it production, marketing, finances, public relations, advertising etc all form a comprehensive package to create value for their customers. Technology can be effectively used in any market to gain competitive advantage and attract customers towards its services or products.
This envisages using technological innovations like the internet to promote business. Coupons etc are the usual way of promotion over the internet. This is a tried and test method and gives competitive advantage. Such schemes divert their buying to your organization thereby giving you competitive advantage. Technology can also be used effectively to reduce supplier influence especially if the supplier cuts off or reduces the regular supply of goods to increase power or for any other reason. The use of www will help locate alternate suppliers thereby breaking any monopoly that your current supplier has over you. With the help of the Internet, companies can locate thousands of suppliers that might provide better prices, quality or services. One very essential aspect for obtaining and retaining competitive advantage in business is unrestrained access to reliable and affordable material resources.
An uninterrupted and economical supply of raw material to guarantee continuous production ensures that the company has competitive advantage over any company that does not enjoy uninterrupted and economical material resources. Raw material constitutes a large part of production cost and any escalation in price or discontinuity in the supply chain play havoc with the company’s competitiveness and negates any advantage that the company had Resource location has historically not been accorded the priority that it deserves in organizations. Every organization is exceptional in the use of materials and it is the heterogeneity of resources that is important for the company to gain and retain competitive advantage over its competitors.
