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"Information technology vitally assists in overcoming barriers to entry to competition in most industries." Critically discuss this statement stating whether you agree or disagree.

Extracts from this document...

Introduction

Written Assignment "Information technology vitally assists in overcoming barriers to entry to competition in most industries." Critically discuss this statement stating whether you agree or disagree. Management Information System (MBA 505) Zaved Mannan D-6 Tower Bhaban, Fuller Road Dhaka University Campus Dhaka 1000 Bangladesh Student ID: 11320053 Date: 16.09.2010 Charles Sturt University Australia Introduction Information Technologies can help a business in so many ways to achieve competitive advantage, such as, cutting cost, improve products and services, promote growth, incerase customer satisfaction etc. The first purpose of this review is to identify how IT assists in overcoming barriers to entry to competition in most industries, specially tech-centric intustries. The second purpose of this review is to critically analyse how IT helps business to achieve competitive advantage, offers solutions to business challenges and raise barriers to entry in the market. IT Assists Firms to Enter in The Competition Someone can argue that there are almost no barrier for tech-centric business and this argument is particularly true for the Internet based business, not other business such as Bank. Any rival can put up a competing Web site overnight. A rival can enter in the market depending on IT offering procucts and services that are allready available in the market. Relying only on IT or Techonology can be very dangerous (Gallaugher 2010). ...read more.

Middle

References Carr, N. (2003),"IT Doesn't Matter," Harvard Business Review 81, no. 5. Gallaugher, J. (2010), Information Systems: A Manger's Guide To Harnessing Technology, Flatworld Knowledge. O'Brien, J. A., & Marakas, G. M. (2009), Management Information Systems (9th ed.). New York: McGraw-Hill Irwin. Part C - Case Study Read Real World Case 4: "Best Buy, Medstar Health and Unifi: The Challenges and Benefits of Wireless mobile applications" from pages 258-259 of the O'Brien & Marakas text and answer the three case study questions. It is important that you draw from the literature in your discussion. Question 1 Best Buy Geek Squad is a 24 hours service unit that offers technical support for home or business PC users nationwide. Each Geek Squad agent has a wireless Pocket PC cell phone ("Sprint PCS Vision Smart device PPC-6700", 2005) that is loaded with Windows Mobile 5.0 and other business software to serve their customer efficiently (O'Brian & Marakas 2009). However, Pocket PC mobile device has some following advantages and limitations (O'Brian & Marakas 2009): Advantages: * Each Geek agent can access wealth of information, such as, customer information, computer manuals, etc through Pocket Pc cell phone. * This phone connects agents to the Head offices' IT system wirelessly using Internet Explorer. Agent can log on to the Best Buy order system using their mobile from either Sprint or Verizon wireless. ...read more.

Conclusion

Almost off-the-shelf software packages are often very basic and are just foundation. Business software vendors offer variety of mobile software, but they hardly meet company's business needs and lack of the functionality of the desktop versions. Most of RIM (Research in Motions) business partners have their own software to run on their BlackBerry (O'Brian & Marakas 2009). Using some of the thousands of software packages available for wireless mobile device has following advantages and limitations. Advantages: * Off-the-shelf software typically doesn't require middleware for data synchronization between back-end systems and the devices. But developing mobile software that can access company applications typically requires middleware, such as, RIM's Mobile Data System or Sybase's iAnywhere division's Mobile Solutions. Therefore company who choose to purchase off-the-shelf software can avoid middleware applications and can save some dollars (O'Brian & Marakas 2009). Limitations: * Purchasing thousands of third party software can be very expensive for the business and it will not give competitive advantage for the business. * This third party software will require on going service support from the vendor regular basis that will not be cost effective for the business. * The functionality of these off-the-shelf applications doesn't match with the company's requirements and is often just the foundation (O'Brian & Marakas 2009). * Third party software may require customization, patchwork and integration that can be done by company's IT staff. However, its usually a big effort and very time consuming to make an application small (O'Brian & Marakas 2009). ...read more.

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