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Competitive Advantage, Necessity, and the Three IT Assets

Competitive Advantage, Necessity, and the Three IT Assets. Bradley C. Wheeler Kelley School of Business Indiana University bwheeler@indiana.edu. IS Group Assessment . Answer these questions based on your personal perceptions.

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Competitive Advantage, Necessity, and the Three IT Assets

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  1. Competitive Advantage, Necessity, and the Three IT Assets Bradley C. Wheeler Kelley School of Business Indiana University bwheeler@indiana.edu

  2. IS Group Assessment • Answer these questions based on your personal perceptions. • Just mark the first answer that comes to your mind for each question.

  3. Network Era Micro Era You are here. Data Processing Era Three Eras of Info Technology Valuefrom Info Technology (Requires neworganizational learning in each era) 1960 1975 1980 1995 2010 Adapted from Nolan, 1995

  4. Scarce Resources Time Talent Management Attention Plentiful Resources Money Computing Power Service Providers New Resource View Are you rationing and leveraging the right resources? Adapted from Geoffery Moore

  5. Six Manageable Trends • IT influences different industries, and the firms within them, in different ways • Telecommunications, computing, and software technologies will continue to evolve rapidly • The time required for successful organizational learning about IT limits the practical speed of change Applegate et al. 2001

  6. Six Manageable Trends (cont.) • External industry, internal organizational, and technological changes are pressuring firms to buy rather than make IT software and services • New technologies both enable and require dramatically different approaches to execution • Managing a long-term partnership between general, IT, and user management is crucial

  7. Leaders in the Network Era Technical “Tools” Organizational “Strategy” Behavioral “People” “Business Technologist”.

  8. Technology Treadmill... IT Investments CompetitiveAdvantage CompetitiveNecessity Organizational Learning Can IT contribute to long-term competitiveness?

  9. Investing in the Three IT Assets HumanAsset Relationship Asset Shared Risk and Responsibility High- Performing Unit Sharable Platforms and Databases Technology Asset Adapted from Ross, Beath, & Goodhue, SMR, Fall 1996

  10. Managing the Three IT Assets • Business and IS leaders need to regularly discuss the strength of each asset. • Consider how changes in one will have intended or unintended effects on other assets. • Examples? • Interventions? • What is the trajectory of the IT Assets? Virtuous Spiral or Death Spiral?

  11. Competitive Advantage, Necessity, and the Three IT Assets Bradley C. Wheeler Kelley School of Business Indiana University bwheeler@indiana.edu

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