Abstract
Information Technology (IT) has revolutionized our economy and no organization can escape its impact. Using IT, new business models are being developed which could not be thought of earlier. As IT makes inroads into every aspect of organization, it is clear that strategies can be successful and have the competitive edge if they are integrated with IT. This is primarily because there have been reduction of operative cost and increase in productivity through technology adoption. As a result, IT cannot remain exclusive territory of IT/Electronic Data Processing/Computer department. Business managers now see the need to get directly involved in IT investment decisions and integration of IT with business processes and managing technological trends. Michael Porter’s theory of five forces, which defines the framework for formulating strategies through five forces, has to be integrated with technological capabilities of a firm to maintain competitive advantage. To make these integrations happen, managers need to understand IT in a holistic manner which will integrate business with IT. This chapter addresses the role of technology on the organizations’ strategies, how these five forces that Porter described are impacted by technology and how managers should plan to cope with the changing times with technology.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
- 2.
- 3.
- 4.
- 5.
- 6.
- 7.
- 8.
- 9.
- 10.
- 11.
- 12.
- 13.
- 14.
- 15.
- 16.
- 17.
- 18.
- 19.
- 20.
Abbreviations
- CRDI:
-
Common rail Diesel injection
- CSR:
-
Corporate social responsibility
- ERP:
-
Enterprise resource planning
- FI:
-
Financial institution
- IT:
-
Information technology
- KM:
-
Knowledge management
- MPFI:
-
Multi-point fuel injection
- SaS:
-
Software as service
- SWOT:
-
Strength, weakness, opportunity, and threat
References
Ackermann, J., Yeung, M. A., van Bommel, E. (2007). Better IT management for banks. The McKinsey Quarterly – Extracts from the original article IT operations of bank in Asia, Europe and Latin America, by authors.
Bansal, S. (2009). Technology scorecards. New Jersey: Wiley.
Beckinsale, M., Levy, M., & Powell, P. (2006). Exploring internet adoption drivers in SMEs. Electronic Markets, 16(4), 361–385.
Bharati, P., & Chaudhury, A. (2008). IT outsourcing adoption by small and medium enterprises: A diffusion innovation approach. In Proceedings of the Americas Conference on Information Systems (AMCIS), Toronto, Canada.
Chuck, M. (1998). In net future: The 7 Cyber-trens that will drive your business, create new wealth, and define your future. New York: McGraw-Hill.
Combe, C. (2008). Introduction to e-business. New Delhi: Elsevier.
Cragg, P. B., & King, M. (1993). Small-firm computing: Motivators and inhibitors. Management Information Systems Quarterly, 17(1), 47–60.
DeLone, W. H. (1988). Determinants of success for computer usage in small businesses. Management Information Systems Quarterly, 12(1), 51–61.
Falnney, J., Blackburn, I., & Deeter M. (November 2009). New ways of working together in the consumer goods-to-retail supply chain, Telecast on supply chain TV. Available at http://www.supplychainmovement.com, Nov 2009.
Gregory, S. S. (2006). Straight to the top: Becoming a world-class CIO. New Jersey: Wiley.
Grover, S. K., & Lederer, A. L. (2001). Strategic it alignment: A model for competitive advantage. Twenty-Second International Conference on Information Systems (CASiE’10), Tunisia.
Heeks, R. B. (2002). Information systems and developing countries: failure, success and local improvisations. The Information Society, 14(1), 101–112.
Igbaria, M., Zinatelli, N., Craig, P. B., & Cavaye, A. L. M. (1997). Personal computing acceptance factors in small firms: A structural equation model. Management Information Systems Quarterly, 21(3), 279–305.
Joseph, G. S. J., & Mohapatra, S. (2008). Managing information system in knowledge economy. New Delhi: PHI.
Lacovou, C. L., Benbasat, I., & Dexter, A. S. (1995). Electronic data interchange and small organizations: adoption and impact of technology. Management Information Systems Quarterly, 19(4), 465–485.
Lefebvre, L., & Lefebvre, E. (1993). Competitive positioning and innovative efforts in SMEs. Small Business Economics, 5(4), 297–305.
Mclean, E. R., & Turban, E. (2005). Information technology for management (5th ed.). Edison: Wiley.
Mckinsey (2009). Available at http://www.mckinsey.com/, Apr 2009.
Mohapatra, S. (2009). Business process automation. New Delhi: PHI.
Nolan, R. L. (2001). Information technology management from 1960–2000 (technical note no. 9-301-147). Harvard Business School, June, Massachusetts, USA.
Parsons, G. L. (1983). Information technology: A new competitive weapon. Sloan Management Review, 25(1), 3–14.
Porter, M. E. (1979). How competitive forces shape strategy. Harvard Business Review, 57, 137.
Porter, M. E. (1996). What is strategy. Harvard Business Review.
Porter, M. E. (2001). Strategy and the internet. Harvard Business Review, 79(3), 62.
Prananto, A., McKay, J., & Marshall, P. (2003). The spectrum of e-business maturity in Australian SMEs: a multiple case study approach to the applicability of the stages of growth for e-business model. In Proceedings of the 11th European Conference on Information Systems (ECIS), Naples, Italy.
Quale, M., & Christiansen, J. (2004). Business issues in the 21st century. In N. Al-Qirim (Ed.), Electronic commerce in small to medium-sized enterprises: Frameworks, issues and implications. Hershey: Idea Group.
Robert, D. A., Richard, L. N., & O’Donnell, S. (2009). The adventures of an IT leader. London: Harvard Business School Press.
Rockart, J. F., & Scott Morton, M. S. (1984). Implications of changes in information technology for corporate strategy. Interfaces, 14(1), 84–95.
Smith, H., & Fingar, P. (2003). Business process management: The third wave. Tampa: Meghan-Kiffer Press.
Spitz, J. M., & dePaschalis, E. G. (2005). The Quals of the ideal CIO. Research report #15, Published on the Systems Consulting Consortium, Inc.
Thong, J. Y. L., Yap, C. S., & Raman, K. S. (1994). Engagement of external expertise in information systems implementation. Journal of Management Information Systems, 11(2), 209–231.
Tse, T., & Soufani, K. (2003). Business strategies for small firms in the new economy. Journal of Small Business and Enterprise Development, 10(1), 306–319.
White, M. A., & Bruton, G. D. (2007). The management of technology and innovation. New Delhi: Cengage.
Whittle, R., & Myrick, C. (2004). Enterprise business architecture: The formal link between strategy and results. Boca Raton: CRC Press.
Wieringa, R. (2004). Architecture is structure plus synergy. http://graal.ewi.utwente.nl/WhitePapers/Architecture/architecture.htm. Accessed May 2010.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2012 Springer Science+Business Media, LLC
About this chapter
Cite this chapter
Mohapatra, S. (2012). IT and Porter’s Competitive Forces Model and Strategies. In: Dwivedi, Y., Wade, M., Schneberger, S. (eds) Information Systems Theory. Integrated Series in Information Systems, vol 28. Springer, New York, NY. https://doi.org/10.1007/978-1-4419-6108-2_14
Download citation
DOI: https://doi.org/10.1007/978-1-4419-6108-2_14
Published:
Publisher Name: Springer, New York, NY
Print ISBN: 978-1-4419-6107-5
Online ISBN: 978-1-4419-6108-2
eBook Packages: Business and EconomicsBusiness and Management (R0)