The Significance of IS
This chapter explores the significance of information systems in modern businesses, demonstrating the productivity paradox, evaluating the argument in 'Does IT Matter?', and explaining the components of competitive advantage. It presents compelling examples of how information systems can provide businesses with a competitive advantage, gives real-world context to the role of information systems in decision-making, and offers expert guidance on utilizing information systems for competitive advantage.
Using Information Systems for Competitive Advantage
Electronic Data Interchange
Electronic Data Interchange (EDI) provides a competitive advantage through integrating the supply chain electronically. EDI can be thought of as the computer-to-computer exchange of business documents in a standard electronic format between business partners. By integrating suppliers and distributors via EDI, a company can vastly reduce the resources required to manage the relevant information. Instead of manually ordering supplies, the company can simply place an order via the computer and the products are ordered.
