Hello Class,
For this, what I think with firms realizing IT value is for them to use IT to increase the speed of service, innovate an old task give it an upgrade and mitigate weakness in the value chain. I know the reading IT does matter says, "IT can reduce transaction costs but then think of transaction costs as encompassing only the transfer of bits and data from one place to another. Viewed more broadly, transaction costs encompass such challenging business issues as the creation of meaning, the building of trust, and the development and dissemination of knowledge. These dimensions of transaction costs often represent significant bottlenecks to performance improvements and competitive advantage." This talks to my points of increasing the speed of service, innovating an old task by giving it an upgrade, and mitigating weakness in the value chain. Companies especially like Walmart in the article, How Walmart Canada Used Blockchain Technology to Reimagine Freight Invoice Processing, "1) provide a real-time, single version of the truth to eliminate (or significantly reduce) disputes, 2) create a tamper-resistant, traceable history of events to simplify workflow and compliance, and 3) automate execution with tamper-resistant smart contracts to accelerate business processes. A blockchain solution could work if it could be integrated with all of the partners’ existing technologies (p. 223)." They want to improve their supply chain by using blockchain technology to integrate all their technology with their freight systems so that the invoicing is the full truth. That there are no variances in distributions this is talking to my point about mitigating weaknesses in the value chain to increase the speed of service.
Thanks
Student 2: Madhu;
Hello Class,
Companies have evolved to consider IT as a resource that is increasingly important to their success as its power and presence have grown, as evidenced by their spending patterns. According to a 1965 report by the U.S. Department of Commerce's Bureau of Economic Analysis, fewer than 5% of American corporations' capital expenditures went to information technology. The most crucial thing that the CEO and top management should grasp about IT, in our opinion, is its linked economics. Those shifting economics, driven by Moore's Law, have enabled every industry's transaction costs to consistently reduce, resulting in new economics for the company and the viability of goods and services not before available. Financial transaction costs have steadily decreased from dollars to pennies. Numerous new entrants have entered many industries, intending to strategically capitalize on the linked economics of IT. Through IT networks and the Internet, company borders have become porous, organic, and global in reach. For the foreseeable future, new technologies will allow businesses to differentiate themselves via service, product features, and pricing structure. The first mover takes a risk and receives an advantage for a limited time (longer if there are follow-on possibilities). The quick following has less risk but must also make up lost ground. Over the last decade, we've seen Charles Schwab vs Merrill Lynch and Walgreens versus CVS as examples of this. Our recommendation to the CEO is to examine IT usage via various lenses. Improved cost reductions and efficiency should be the emphasis of one lens. Another priority should be to incrementally enhance the organizational structure, goods, and services. Another should be focused on gaining a strategic advantage by broadening the competitive scope, forming alliances (with customers and other parties), modifying the rules of competition, and offering new IT-based services to expand the customer value proposition. Yes, I could take the dates off of the articles and it would be difficult to tell they were not written recently. These are all being discussed due to reason of its importance.
Thank you.