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9. How can information systems be used to develop competitive advantage?

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Ans) Today, information technology must be conceived of broadly to encompass the information that businesses create and use as well as a wide spectrum of increasingly convergent and linked technologies that process the information. In addition to computers, then, data recognition equipment, communications technologies, factory automation, and other hardware and services are involved.

The information revolution is affecting competition in three vital ways:

It changes industry structure and, in so doing, alters the rules of competition.

It creates competitive advantage by giving companies new ways to outperform their rivals.

It spawns whole new businesses, often from within a company’s existing operations.

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