| We live in an age in which the value of information and knowledge has far surpassed that of physical goods. Information resources have become a key differentiator of successful businesses. Information technology (IT) and information systems (IS) are now integrated in almost every aspect of business, from planning to analysis and design, operations management and strategic decision making. Even for those businesses not in information industries, information plays a vital role in supporting their business functions, from routine operations to strategizing. John Naisbitt (1982) theorized that information would be the driving force for organizations. Companies that manage information well are more likely to maintain a competitive advantage against their peers. Because information has become a major force in driving business activities, Evans and Wurster (2000) proclaimed that every business is in the information business.
IT and IS have experienced dramatic changes in the last few decades. Their major role in business has shifted from tools to support “back-office” operations to an integrated part of business strategies and the maintenance of core competencies. Strategic management, as the process of business strategy formulation and strategy implementation, is concerned with establishing goals and directions, and developing and carrying out plans to achieve those goals. As organizations evolve, so do their strategies and strategic management practices. In recent years, IT has become increasingly important in strategic management. IT and IT-enabled systems are now indispensable in supporting business strategies. In this chapter, we examine the evolution of information technology and strategic management, and their interplay in the last 50 years. We start with a review of major theories and development in both strategic management and IT, and then explore how IT has become an enabler for strategic management. We also discuss research issues in IT-enabled strategic management, and suggest future directions in this crossdisciplinary research field. |