Investing in the IT That Makes a Competitive Difference - 0 views
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To better understand when and where IT confers competitive advantage in today’s economy, we studied all publicly traded U.S. companies in all industries from the 1960s through 2005, looking at relevant performance indicators from each (including sales, earnings, profitability, and market capitalization) and found some striking patterns:
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Most industries have historically been fairly immune from this kind of Schumpeterian competition. However, our findings show that the internet and enterprise IT are now accelerating competition within traditional industries in the broader U.S. economy. Why? Not because more products are becoming digital but because more processes are
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One interpretation of our findings might be that IT is, indeed, inducing the intensified competition we’ve documented—but that the change in dynamics is only temporary.
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This article talks about how accelerated competition has coincided with an increase in the quantity and quality of IT investment. A lot of companies have change the operating model that they have with the Internet and enterprise software. I learned that the link between competition and technology has become much stronger. In 2008 it was projected that the worldwide enterprise software revenue would approach $190 billion. We learn that it is not easy for most companies to deploy enterprise IT successfully. The technologies themselves are complicated to configure and test, and changing people's behavior and attitudes toward technology is even more challenging. The IT has changed dramatically for a long time and it is still growing and developing.