A Competitive Advantage In The Global Business

Published Date: 02 Nov 2017

INTRODUCTION

Information technology provides a platform for a company to connect the global world with Internet. Internet has a wide range of customers, buyers, service providers, technical staff and many more. With the help of Internet, the business can go globally and reach the certain place which is hard to go.

Before I would like continue more about the information technology as competitive advantage in the global business, I would like to give a little definition of information technology, competitive advantage and global business so that it will be useful to understand.

Referring to (Baltzan, 2013: 9), information technology is about the field concerned with the use of technology in managing and processing information. This information technology is most useful when it leverages the talents of people and when being used by the right people to manage it effectively. While the ‘A competitive advantage is a feature of a product or service on which customers place a great value than they do on similar offerings from competitors.’ (Baltzan, 2013: 16). In other word, competitive advantage means that doing something better/faster/cheaper than his competitors.

For [1] global businessitconsists of transactions that are devised and carried out across national borders to satisfy the objectives of individuals, companies, and organizations. These transactions take on various forms, which are often interrelated. Which means global business is a company doing business across the world for easy understanding.

Information technology is changing the way companies operate. It is affecting the entire process by which companies create their products. Furthermore, it is reshaping the product itself, the entire package of physical goods,services, and information companies provide to create value for their buyers.

OBJECTIVE (S)

Review on an ongoing basis the information technology for competitive advantage in global business

To analyze the information technology factors which contribute to the competitive advantage in the global business

Describe the information technology as a competitive advantage in the global business

Describe how linking information systems acrossorganizations helps companies achieve competitive advantage.

BODY OF THE ARTICLES

The information technology as competitive advantage in the global business could contribute many factors. The factors are:

the information technology can change the top management attitude and the ways of thinking

it can bridge the gap between business people and technical people to work together for organization goals

view business problem from another perspective

creative design for website in global business gives competitive advantage throughout globally

cost reduction

competitive intelligent

create a new product

DISCUSSION

The information technology as competitive advantage in the global business could contribute into the capsizing the global market and maximize the profit for the organization. Using information technology to tackle a business problem in the way the other companies have been doing is certainly not going to give a company competitive advantage. The company has to use creative ways to create something new their competitors do not have yet. For example, through [i] information technology can change the CEO’s attitude. The CEO’s vision can influence the way that managers think about lots of things within their company, including information technology. If the CEO understands that IT can be a powerful competitive weapon, a message is sent to the entire organization that coming up creative IT ideas that can lead to company growth and customer satisfaction is important. Company leadership is very important in determining its competitive advantage using information technology.

Besides that, the information technology [ii] bridges the gap between business people and technical people. Business people must understand the use of Information technology to gain competitive advantage. In this case, they work hand on hand with technical people to archive this goal; in this process technology brings both parties together and bonds their relationship. Designing an information system that gives a competitive advantage requires at least two things. First, it requires an understanding of the business problem you are trying to solve. Second, it requires an understanding of available technologies to know which ones to use in designing a creative solution for the business problem. It is very important for business people to study management information systems (MIS). This will help them analyze technical issues if need arises.

Furthermore, the Information technology can [iii] view business problems from another perspective. It is very important to view a business problem in the perspective of customers. These are the owners of the business not you, because without them, the business will not survive. The best solution for this is to put yourself in the place of the primary user of the system and try to come with ways in which that user would be not just served but delighted by the system. For example the use of Customer Relationship Management (CRM) which enables customer to interact with the organization to give feedback and this will help the organization to improve their services globally and able to maintain the old customers.

The use of [iv] information technology in creative design for website in global business gives competitive advantage. A creative design of an IT system is one that solves the business problem in a new and highly effective way rather than the same way others have solved it. One of the biggest mistakes most business people make when designing new information systems is to come up with a design that is ordinary, something very similar to what other companies are doing. For a global business to gain competitive advantage, it has to use information technology to design a new concept and idea which is different from its competitors. For example, the websites should use multiple language in their websites so that the customers will be understand and by globally it will help to increase their customer attraction to the service and product that they are provided.

The information as competitive advantage in the global business because [v] its cost reduction. IT enables companies to reduce costs. For example, to gain global business the company needs to use the right source and a lot of money to gain the better access. But through information technology, the organizations can manage the flow of their financial and keeps the important one to them and try to minimize the cost that they need to spend mostly.

Other than that, the information technology as competitive advantage in the global business by its competitive intelligence. IT provides competitive (business) intelligence by collecting and analyzing information about products, markets, competitors, and environmental changes. For example, if a company knows something important before its competitors, or if it can make the correct interpretation of information before its competitors, then it can act first, gaining strategic advantage through first-mover advantage.

The information technology as competitive advantage in the global business can create a new products. A firm can leverage its investment in IT to create new products that are in demand in the marketplace. For example, through global the company needs to know the right information about the product that they want to make so that it will not against the norms and culture of certain country. Through IT, the company can manage the perfect solution and by doing this they can create a new products which can be used through globally.

CONCLUSION

The business world has revolutionized almost beyond recognition in the past few decades. Technology means the advances in communication and information technology has changed the face and the pace of business.

As communication and information travels faster and faster, the world seems smaller and smaller, and this has large implications for the way we conduct business. Storing important in files on a computer rather than in drawers, for instance, has made information easily accessible. Using e-mail allows businesses to communicate and send these files quickly to remote locations outside of an office. It gives the people an easy ways to work by efficient and effectively.

Information technology simultaneously drives and facilitates global business. Worldwide networks of computers are inexorably transforming the nature of business even as firms seek to harness this technology to the task of managing that transformation. The winners in this global environment will be the firms that can align worldwide information systems with integrated global business strategies. The synergy that develops from a close strategic linkage between IT and business strategies will be central to success in highly competitive global markets.

Therefore, the information technology gives a lot of benefit and complete competitive advantage in the global business. Without it, the organization could not manage their business effectively and efficiently to certain standard which will be acquired by the country they want to establish their new business and by globally.