Sample Essay on:
The Pros and Cons of Treating IT as A Critical Part of Business

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Essay / Research Paper Abstract

This 6 page paper considers the advantages and disadvantages of seeing Information Technology (IT) as a critical part of business. The paper looks at advantages, such as competitive advantage, increased value creation and the maximization of resources. The paper also looks at problems, such as the apparent lack of ability to demonstrate increased productivity and the productivity paradox. The bibliography cites 11 sources.

Page Count:

6 pages (~225 words per page)

File: TS14_TEprotech.rtf

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Unformatted sample text from the term paper:

to be considered when an assessment is made regarding the treatment of IT as a critical part of the business. Information technology is know to have some broad generic advantages, computers have perform millions of calculation per second, do not require holidays or sleep, work twenty four hours and although there is the requirement for maintenance it is general believed that increased use of IT performing the task which were once undertaken manual will increase efficiency and decrease the level of man hours or labour inputs required. From this we can argue that treating IT as a critical art of the business may allow for the benefits of increased efficiency to be realised. The benefit is not only in the lower level of manual hours required, but also in the opportunities that IT offers. Porter argues that for a company to compete successfully there needs to be the development of a competitive advantage, this may be either cost advantage or differentiation (Porter, 1980). With cost advantage the company have lower production costs than any other, this is an advantage that can only be maintained by a single company in the sector. For example, Amazon is likely to have the cost advantage in terms of book sellers, and is a good example of how IT can be used to create competitive advantage (Kotler, 2003). Differentiation is the addition of extra features or different aspects to a product or service which are not provided by competitors, these will adds value to the consumer but the cost of adding these will be less than the premium that can be charged in the price. Technology can facilitate these differences it may be though the increased personalisation that a customer relationship management (CRM) database may give, as seen with many banks ...

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