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ITM 700 (3)
Jim Tam (3)
Chapter 2

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Information Technology Management
ITM 700
Jim Tam

Chapter 2 – IT Impact on Business Models 1. What are IT impacts on strategy and capabilities?  Impacts on strategy – determines product, market, business network and boundary positioning. How IT drives differentiation, sustainable advantage and develop proprietary assets. Impact of IT in the future  Impacts on capabilities – building capabilities needed to execute strategy. Processes and infrastructure, people and partners, organization and culture, leadership and governance. 2. (see p. 67 – table 2.1 for categories of IT Impacts) – What are some questions executives can use as they search for ways to leverage IT to drive business model strategy?  Can IT change the basis of competition?  Can IT build barriers to entry? – by offering attractive products for cheap, and high quality. Also by innovating effectively, having unique products/service and having a loyal community of followers.  Can IT raise switching costs? – once use of system becomes ingrain
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