Week 4 Tutorial Part 1 - 2

2. Can an IT-enabled information system by itself provide a business with sustainable competitive advantage?

No, it can't as an IT-enabled information system requires more than that if it were to function effectively. There are 3 types of resources that an organization requires. They are Physical resources, Human resources and Organisational resources. The Human resource is in focus here as even if an organization were to have excellent IT-enable information system, it will still require people with the appropriate skills and knowledge to continue its functionality of the system as well as to use the information provided by the system and transform it into a viable action plan that would enable the organization to perform better and to out-perform their competitors. Mata et al. (1995), has observed that managerial IT skills is the only resource that can bring sustained competitve advantage.

For example, Google Inc. has been rated by Fortune magazine as one of the best companies for people to work in. They promote themselves as a very young and vibrant company with a condusive working environment. From health insurance to retirement benefits, it is possible to see that Google takes care of one of its most valuable assets, its employees.

According to Forbes magazine, the top companies who have achieved competitive advantage through IT are:


 * Accenture


 * Amazon


 * Apple


 * Cleveland Clinic


 * General Electric


 * Goldman Sachs


 * Hospital Corporation of America


 * IBM


 * Intermountain Healthcare


 * JP Morgan Chase


 * Kaiser Permanente


 * Mayo Clinic


 * Microsoft


 * Nestle


 * Procter & Gamble


 * Progressive Insurance


 * Schlumberger


 * Target


 * Toyota


 * Wells Fargo

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