A Competitive Advantages To Global Business

Published Date: 02 Nov 2017

Nowadays, information technology is very important and very useful to all people in the world. It is because the world now is changing dramatically with so many improvements in technology like supply chain management , customer relation management and e-collabration. Then we can said that Information technology is one of the competitive advantage for any organization to be more easy to achieved success in global business. This is because information technology is giving so many advantages to the organization to complete and to compete with their competitor.

"In 1992 the IT and communications sector had grown to close to 10 percent of the gross domestic product in the United States. The computer equipment and services sector alone was larger than auto, steel and mining, petrochemical and natural gas combined." (Don Tapscott, 5). From the sentence we know that Information technology has grown very fast in this global business. The uses of Information Technology in the business world are really important for any organization. With market and their players constantly changing, the possibility of enterprises establishing a sustainable competitive advantage no longer exists. No organization can afford to rest on its laurels, each must constantly innovate to compete.

"Competitive advantage is actually is the advantage that one business has over another business organization due to more effective and efficient use of information systems and ICT to deal with competitive forces".(Addison Wesley, 18 ).

Besides that , Competitive advantages also are the weapon in any organization to become a known success organization. They must have their own competitive advantages in order to compete with the others organization. That which ,if in organization no information technology is no using this will cause the organization difficult to getting information.

OBJECTIVES

Business information technology is a dynamic state in which a business organization that enable to use information technology with effectively to achieve business objectively that typically improved financial performances or market places with competitive.

Some definition focus on outcomes that means the ability of information technology to produce business value harmony between information technology and business decision maker within the organization. As example , alignment is the capacity to demonstrate a positively relationship between information technology and the accepted financial measures of performances.

Besides that , information technology and business that enables to bridge the gap between themselves because of differences in objectives , culture and incentives and a mutual ignorance for the other group’s body of knowledge. Information technology also is closely associated with attempt to improve the business value of investment.

Information technology as a competitive advantages to global business

Nowdays, information system and ICT is very important that can be used to implement the organization strategies to achieve competitive advantage. A significant challenge in business information systems is the need to attain competitive advantages both nationally and internationally. The concepts of competitive advantages is one that has become synonymous with Professor Michael Porter of Harvard University, USA which defines competitive advantages is the ability which is business organization to compete with other organization.

More than that , Information Technology also has become a competitive advantage nowadays because it helps organization to achieve their goals and objective. Besides that, Information Technology also can help organization to build a relationship or build link with the world and anyone that want to involve with the organization. "ICT can be used to link customers and suppliers to a business organization systems. In doing so, an organization can develop customer loyalty and make it too costly, or inconvenient, for customers (and suppliers) to switch allegiance to a competitor organization." (Addison Wesley,19). From the sentence we know why IT has become a competitive advantages to global business. It is just not make an organization easy to reach customer or supplier, it also can reduce the cost that need in order to finish the job.

In world now, we also can see that all type of business are using the Information Technology in their business because the global are involving with the presence of the Information Technology. In order to part, they also need to use Information Technology to make sure that they are level with their competitor. Information Technology also can be used by a small and big business in organization. Besides taht , We also can see many examples that small business uses Information Technology medium is like Facebook, Youtube and Google to market or to implement their marketing strategies and to know competitor’s strength and weaknesses.

DISCUSSION

Information Technology as a competitive advantage in global business. Nowadays, if any organization want to compete in the global business, they need to have a knowledge about IT. This is because IT has become one factor that all organization must have. With the world has change dramatically, the improvement in the IT has become more larger than we know. For me, this statement is true because it is hard for a business to operate without the use of IT. There are many aspects that we can look to support this statement.

We can look in a global business such as airlines services, banking, and many others, there are using the IT to operate their business. This is because it is easy for them to run the business globally. Let’s look from the simple aspect, by using IT, we can simply reach customer globally without going to that place. We just need to use any available medium to reach people. By using this way, organization can reduce the cost or eliminate the cost to send people or worker to reach the customer in all over the world.

IT will help organization to establish them properly and fast. Nowadays, many organization will using any available information system to keep their information. Any information about them will be store in the system. Then it can reduce the uses of paper. Beside that, by using the system, it become more easier for them to find a previous document that they need. As we can see, Customer Relationship Management (CRM) nowadays has become very popular. It help organization to keep the detail about their past customer and present customer.

CONCLUSION

Information technology is a driving factor in the process of globalization. Improvements in the early 1990s in computer hardware, software, and telecommunications greatly increased people’s ability to access information and economic potential. While advancements in Internet-based tools over the past five to ten years, such as social networking websites, twitter, and other Web2.0 applications are changing the way people use and share information for personal, political, and commercial purposes.

These developments have facilitated efficiency gains in all sectors of the economy. Information technology drives the innovative use of resources to promote new products and ideas across nations and cultures, regardless of geographic location. Creating efficient and effective channels to exchange information, IT has been the catalyst for global integration.

Products based upon, or enhanced by, information technology are used in nearly every aspect of life in contemporary industrial societies. The spread of IT and its applications has been extraordinarily rapid. Just 30 years ago, for example, the use of desktop personal computers was still limited to a fairly small number of technologically advanced people. The overwhelming majority of people still produced documents with typewriters, which permitted no manipulation of text and offered no storage.

Twenty years ago, large and bulky mobile telephones were carried only by a small number of users in just a few U.S. cities. According to the UN Telecom Agency, there were six billion cellphone subscriptions worldwide at the end of 2011. China had one billion subscriptions and India is expected to reach one billion in 2012 (Huffington Post, 2012). In some developing countries, mobile phones are used by more people than the fixed line telephone network.