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Reasons why IT is considered as a strategic resource:
1.Cost control
It enables an organization to cut down long-term costs. It enables automation of business
processes which cuts down on labour costs.
2.Product and service differentiation
It enables product and service differentiation through design software thus enabling an
organization to compete favourably in future.
3.It improves a company?s corporate image
IT enables effective advertising via the Internet which enhances a company‘s corporate
image.
4.Globalization
IT enables an organization to globalize. The Internet provides organizations with an
opportunity to tap foreign markets.
5.It improves planning
Planning and scheduling software may be used by managers to improve the quality of an
organization‘s strategic plans.
6.It enables customer „lock-in?
IT could be used to lock-in customers thus preventing them from moving to other
competitors by introducing switching costs (e.g. cost of changing telecommunications links,
costs of buying new hardware and software, etc)
gregorymasila answered the question on November 22, 2017 at 15:28
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