Does IT Matter?
This chapter centers around the idea of the strategic value that information systems can bring to an organization. Pay attention to the arguments around the idea of competitive advantage. After you read, reflect upon the arguments presented about the impact that information technology has on competitive advantage.
Using Information Systems for Competitive Advantage
Electronic Data Interchange
One of the ways that information systems have participated in competitive advantage is through integrating the supply chain electronically. This is primarily done through a process called electronic data interchange, or EDI. EDI can be thought of as the computer-to-computer exchange of business documents in a standard electronic format between business partners. By integrating suppliers and distributors via EDI, a company can vastly reduce the resources required to manage the relevant information. Instead of manually ordering supplies, the company can simply place an order via the computer and the next time the order process runs, it is ordered.
EDI example