Competitive Advantage through Innovation - Essay Example

Organizations could be able to get a competitive advantage by renovating their business processes through information technology-based arrangements. The new technology-based systems are more effective and accurate for the management of business issues and aspects. In addition, the information technology-based system offers excellent support for effective business processing and operational management.

Moreover, the innovation brought by new technology-based systems offers a superior competitive edge to businesses. In this scenario, businesses can market, sell, and take decisions using these IT-based systems (Ramakrishnan R, 2004). Financial Value In more formal words, a primary description of the concept of value could be that each economic actor desires to increase their business profits. Thus, in this scenario, the value is recognized as financial worth and could be built by increasing profits.

Consequently increasing the business value through information technology based could be determined by augmenting the business earnings. In addition, increasing the business investment in information technology offers excellent support to the business as a result it increases business value and performance. Moreover, the use of information technology allows organizations to reduce overall corporate manual processing operations which also leads to better performance (Stahl, 2002). Enhancing Business Value The new technology-based systems also offer excellent support for business decision-making.

These decisions are foundational to the values and decisions about IT are no immunity to this rule. Though, the most important and valuable thing in a company is money or economic value. However, in business decisions, a lot of values apart from money perform a vital role, and indeed yet financial value could typically be assessed to have a moral side to it. The same can be stated for IT. In addition, the design and use of information technology are extremely reliant upon on fundamental values that could be of an economic or moral or some other nature.

It can be stated that the diverse values are exchangeable to a confident degree. Moreover, the complexity of the decisions foundational on values comes into view when numerous values have to be recognized however these values do not provide similar results that are when values approach to conflict. In this scenario, one usual reason for the clash happens between financial and moral values. Though, it is not seen that moral and financial values conflict unequivocally. Typically these issues could be stated as conflicts between moral or financial values also (Prasad, 2008).

At the present, organizations as well as governments are making huge global efforts to regulate businesses, with the effective presentation and definition of financial data and information. However, the information varies generally through a lot of industries and a lot of kinds of information (NYC Board of Education, 2001). In addition, the new generation of wireless networking technology and next-generation computing and communications architectures has changed the traditional corporate arrangement and made people more creative virtually anywhere, anytime. 

For instance, a person while traveling can connect wirelessly to their company’s network. Additionally, a manager can electronically deliver training to employees at their desks. In addition, a salesman can access the contact database and track sales by using their cell phone. Moreover, the new advanced developments in information processing technologies allow organizations to gain a competitive edge and improve performance at extremely lower costs (Intel, 2002).

In addition, IT provides forward-looking businesses with a lot of chances for gaining a competitive edge untimely, when it could yet be 'owned' similar to proprietary new technology-based arrangements. Additionally, IT is very much effective and efficient for project management. In this scenario, IT-based systems and functionalities offer excellent support for the development of project plans and management of the organization’s financial records. In addition, IT offers such systems that take historical project data to better plan and manage the project. In the onward stages of the IT project, the new technology-based system offers better support for system design and development. In this scenario, organizations have automated tools for system designing which allow them to better design and develop a system. Thus, in this scenario information technology increases the efficiency of organizations (Zellen, 2003; Schwalbe, 2005).