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
Can IT raise switching costs? – once use of system becomes ingrain