The introduction of the internet in 1992 brought new possibilities to explore different ways of implementing ISs. Problems with the flexibility of proprietary systems, for instance, could be overcome with the implementation of an internet protocol, allowing computers to find a shared way of communicating by exploiting the distribution channels available. Consequently, IS infrastructure has increasingly been seen as the future in the search for sustained competitive advantage (Davenport and Linder 1994; in Byrd 2001, p28). Advances in networking brought about by the internet have progressively increased the importance of IS infrastructure, especially in a globalised market, increasing the relationships between departments and organisations. Whilst Porter discusses competition as a means of strategic advantage this is not the only approach, as collaboration has its place too, particularly in the technology arena. The delta model is a strategy framework that with the wide spread increase of technology “helps managers in the articulation and implementation of effective corporate and business strategies” (Hax & Wilde 2001, p379). Opportunities exist to form closer alliances with business partners; to create strategic relationships which if implemented efficiently can cut significant costs out of the supply chain and can streamline the flow of information (Coltman et al 2001, p61). The flexibility of this infrastructure is important in the terms companies being able to quickly adapt to changes, adapting to changes in direction of the strategy and structure of the organisation. The implementation of IS infrastructures has already ‘flattened’ organisations, allowing for enhanced decision making as managers are effectively working closer and with a better flow of information. A well designed infrastructure can improve the organisation’s versatility vis-à-vis rival firms, enabling “mass customisation and [reduced] time to market” (Byrd 2001, p27).

IT has made it possible for competitive advantage to be potentially gained from an integrated IS infrastructure. However, it is not IT that is creating this advantage (Byrd 2001, p27). Instead, success is only possible if IS infrastructure is managed properly. The same dynamic can again be applied, with increased investment reducing prices, making the technology available to all. A well managed infrastructure between an organisation and its partners can help control and reduce stock value (Byrd 2001). Dell Computer Corporation is an example of a company that has gained strategic competitive advantage from successful implementation, “using mass customisation to gain competitive advantage edge in its industry” (Magretta 1998; Cited by Byrd 2001, p31). This enables Dell to build a close affiliation with its customers, and respond swiftly. In its basic form, it must be accepted that no single IT application can be strategic (Venkatraman 1994, p76), as Hooper notes, “as we change what computers can do, we must change what we do with computers” (1990, p119). In relation to Formula One, for instance, with the all-pervasive use of technology it seems as if computers now drive the cars, controlling the traction, power distribution etc; all of which are essentially equal, but it takes good use and development of that computer to come out on top. Someone will always win, as is the case in business. This comes down to the approach of managing IT and IS, reconsidering investment and generating a sustainable competitive advantage that is not easy to imitate (Mata et al, 1995, p488).

A hint that IT is becoming a commodity is that organisations are reverting back to the values of old concepts to gain competitive advantage. As Coltman et al (2001, p62) assert “managers became so focused on IT innovation that they failed to apply the underlying principles of business”. Organisations are more concerned with their customer relationship management (CRM) and how they are perceived. As the globalisation of markets has progressed, so has the ease of access to competition; a rise in so called ‘vanilla flavoured’ markets. However, those traditional values that were predicted to be irrelevant in the internet era could mean more now than ever. For example, brand strength remains an important value, with customers building trust in an organisation; trust gives confidence to the consumer (Coltman et al 2001, p63). This links to the advantages that outsourcing IT could promote, allowing organisations to focus on there core competencies, including the building of a brand and reputation.

Next : Implication Risk