The information revolution is sweeping through economy. No company can es- our cape its effects. Dramatic reductions in the cost of processing, and transmitting infor obtaining, mation are changing the way we do business. Most general know that the revolution is managers under way, and few dispute its importance. As more and more of their time and investment capi tal is absorbed in information technology and its effects, executives have a growing awareness that the technology can no longer be the exclusive terri- tory of EDP or Is departments. As they see their rivals use information for competitive advantage, these ex- ecutives recognize the need to become directly in- volved in the management of the new technology. In the face of rapid change, however, they don't know how. This article aims to help general managers respond to the challenges of the information revolution. How will advances in information technology affect com petition and the sources of competitive advantage? What strategies should a company pursue to exploit the technology? What are the implications of actions that competitors may already have taken of the many opportunities for investment in information technology, which are the most urgent? To answer these questions, managers must first understand that information technology is more than just computers. Today, information technology must