An Empirical Assessment of the Organization of Transnational Information Systems - 3 views

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  #1 wvald012 on 11 May 18

   

  According to Sethi and King, when it comes to analyzing a company's competitive advantages, we have two main approaches: the "outcome" and the "trait".
  The outcome approach is associated with management productivity, business value, and efficiency. It is analyzing the company from a macro-level perspective. This approach relates the use of IT to outcome measures, such as return on assets, revenue growth, net growth, and profits. A limitation of this approach is that these outcome variables are aggregate and thus insensitive to the effects of a single IT application.
  On the other hand, the "trait" approach, the starting point for sources of competitive advantage reside within the company rather than starting by looking at the challenges caused by the external environment. It identifies traits or attributes that reflect how an individual IT application impacts an organization (micro level perspective). The advantage of the trait approach is that it is more likely to measure first order impacts while the outcome approach is more likely to reflect second and higher order impacts.
  This approach takes into consideration the company's capabilities, strategic thrusts, value activities, and the consumer resource life cycle.
  How all these can be evaluated by one single IT application? The answer is CAPITA.

   

  <div class="cArrow"> </div><div class="cContentInner">According to Sethi and King, when it comes to analyzing a company's competitive advantages, we have two main approaches: the "outcome" and the "trait". <br /> The outcome approach is associated with management productivity, business value, and efficiency. It is analyzing the company from a macro-level perspective. This approach relates the use of IT to outcome measures, such as return on assets, revenue growth, net growth, and profits. A limitation of this approach is that these outcome variables are aggregate and thus insensitive to the effects of a single IT application. <br /> On the other hand, the "trait" approach, the starting point for sources of competitive advantage reside within the company rather than starting by looking at the challenges caused by the external environment. It identifies traits or attributes that reflect how an individual IT application impacts an organization (micro level perspective). The advantage of the trait approach is that it is more likely to measure first order impacts while the outcome approach is more likely to reflect second and higher order impacts. <br /> This approach takes into consideration the company's capabilities, strategic thrusts, value activities, and the consumer resource life cycle. <br /> How all these can be evaluated by one single IT application? The answer is CAPITA.</div>

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