| Over the last decade, the rise in the importance of information and
knowledge for business activity has been phenomenal. Globalization
has become a reality and competition is more dynamic (Porter, 1998) as
firms source materials and manufacture goods in many locations, while
innovation is vital for future business growth. Information is now
critical for the management and growth of business value. Knowledge
about competitors and customers is essential to understand the future
direction of business development. Harnessing this resource is
important, and yet, difficult. One means of tackling it is through the
development of organizational information systems that enable the
collection and dissemination of data, information and knowledge.
Organizations are increasingly using information technology to deliver
outputs from such systems. Data, information and knowledge can all
enhance competitiveness.
Information is a primary management resource. Like finance,
operations and marketing, its management cannot be left to chance. In
an increasingly competitive market there are three major reasons why
effective management of IS is essential for competitiveness. First, the
intensity of market competitiveness means that firms are under pressure
to work smarter and innovate faster than the competition. As the retail
banks have demonstrated, effective use of IS and IT can shorten cycle
times, while transforming the basis of competitiveness. Second, no firm
is an island. The value-adding process is one of transforming inputs into
profitable outputs. This means that the producers are dependent upon
the co-operation of suppliers, distribution networks and customers.
Third, information is an enabler of globalism. Changes in international
trading agreements and the monopoly power of local suppliers is driving
firms to use global sourcing in order to remain competitive. But a
precondition for accessing global resources is planned IS. |
