Blake Ives
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Index Terms
- The information system as a competitive weapon
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Reviews
Gary Russell Gladden
Much has been written recently to encourage those corporations engaged in data processing, or operating management information systems, to treat their accumulated databases as a corporate asset. This article explains that information databases are not only to be prized and jealously guarded, but that the Information Systems Technology (IST) that allows manipulation of information can be wielded as a formidable weapon in the marketplace. The article traces the application of IST to competitive business strategies, from its beginning at Harvard Business School (the impetus being supplied by Porter's book [1]). The authors go on to describe the results of other researchers' efforts at modeling competitive forces at work in the marketplace. The authors adopt the position that, from the customer's point of view, a highly developed IST capacity offers a source of needed resources for use in his or her own business. The perceived value of this resource to the customer's business serves to differentiate the provider from among the competition, and thus gives the provider a competitive advantage. The perceived value, it is stated, is closely tied to the customer's business state of maturity, or its position in its business life cycle. This view is dubbed the Customer Resource Life Cycle (CRLC) model. The model, almost entirely credited to previous research, consists of 13 life cycle stages in acquiring and finally retiring required business resources. Examples of IST resource contributions to businesses in each life cycle stage are briefly described. The paper is a well written and interesting introduction to the application of IST to management decisionmaking.
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