AFM241 Lecture Notes - Lecture 6: Walmart, Switching Barriers, Unix System Iii

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM241
• Professor: Theophanis Stratopoulos

Document Summary

1 managerial perception regarding role of it a. It strategy is a shared view, among a firm"s top management team (tmt), regarding the role of it in the organization. Tmt"s attitude toward it might be based on prior experience, personal experience and industry requirements c roller coaster pattern. 1 extremely difficult to sustain competitive advantage, unless extremely difficult to duplicate - otherwise, short lived benefits. 2 when such it practices come to dominate an industry, these it investments are best referred to as competitive necessities (continue as active industry participants, at best maintaining current level of profitability) b. 2 iv must accompany initiatives with changes in firm"s decision structure and cultures, such that decisions are made radically better and quicker! 4 disposition toward it: innovative vs. conservative a. Conservative i seeks to exploit is innovations only after they are carefully scrutinized and proven to be beneficial for its competitors ii reduce potential risk of engaging in an aggressive is strategy.