Alistair Nicholas Bancroft

Information Systems in Organisations
MSc Management Assessment 2007-2008.
Author: Alistair Nicholas Bancroft

Chapter 8

Conclusion

As Maddox asserts, “the most important discoveries of the next 50 years are likely to be ones of which we cannot now even conceive” (1999, p62). In such a fast moving environment, it is even harder to predict what is going to happen next week never mind next year. Despite initially being rejected, the internet has proceeded to become one of the most important technological advances ever. When success begins to attract attention, there will always be investments to challenge the competition, leading to falling prices and greater accessibility. This doesn’t necessarily mean everyone will be equal, but will challenge the competitive advantage because companies will not be able to charge as much for technology or services. Companies will still have advantages over others, but this is not to do with the ‘tool’ of IT or IS, but the management and implementation of these tools.

Commoditisation is important in industries as it allows new technology to be researched and developed. As Carr discusses, the buildout of IT is nearing; but with commoditisation, the full depths of IT have yet to be discovered and understood (2003). Commoditisation will not be the dead end. Commoditisation equates to stability and reliability and can be the creator of some of the most successful companies in the world (Preston 2005). Attention can then be focused on the company and the reason it came into business - it’s employees, profit and attaining and maintaining competitive advantage. There is so much more to IT than there is to other commodities, like electricity for instance. However, if either were to cut off businesses would become paralyzed. Commoditisation therefore could be a good thing for organisations, allowing them to focus directly and more effectively on their core competencies.

With the introduction of emerging technologies, advantages will continue to be gained and lost but progress will continue to be made, most prominently with the utilisation of the internet and its vast networking capabilities. First movers will again boast advantages, but not without bearing the risk and cost. The uncertainties for an organisation are vast and worrying, companies are investing large amounts of money and time in IT that they do not know will work. Sustainability, however, will once again be a harder task. On a level playing field it will become harder to distinguish competitive advantages, “sameness will never lead to greatness” (Hax & Wilde 2001, p379); nevertheless, there is still strategic competitive advantage to be gained. Industries will continue to evolve, but with the risks involved in integrating proprietary technologies and the financial costs arising, “the penalties for overspending will only grow [larger]” (Carr 2003, p49). However, as outsourcing becomes more popular, companies who commit resources to their in-house IT may once again start to gain competitive advantage. The surface has only just been scratched, but in terms of IT being a strategic weapon, everyone has a gun.

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Introduction Introduction
Chapter 1 The Information Age
Chapter 2 Strategic Competitive Advantage
Chapter 3 Information Systems Infrastructure
Chapter 4 Implication Risk
Chapter 5 Outsourcing
Chapter 6 Security Issues
Chapter 7 Emerging Technologies
Chapter 8 Conclusion