Business Administration 3300K Study Guide - Quiz Guide: Web 2.0, Mantra
10 Nov 2020
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S4-mis: investing in the it that makes a competitive difference mcafee. Concentrated/winner-take-all industry: industry in which a few companies account for the bulk of the market share. Turbulent sector: sector in which sales leaders in it are frequently leapfrogging one another in rank order. Performance spread: difference on standard performance measures (roa, profit margins, market cap) between leaders and laggards in an industry. Average turbulence rose + concentration began increasing + spread between highest and lowest performers increased all starting mid 1990 = coincided with surge in it investment & productivity rise. Result: performance spread rises, concentration increases (losers fall aside), turbulence intensifies as remaining rivals use changes in it models to leapfrog one another. Conclusion: enterprise it will not have one best way to execute processes but rather involve experimentation as firms need to understand who has most relevant knowledge to make decisions.
