The information revolution is sweeping
through our economy. No company can es-cape its effects. Dramatic reductions in the
cost of obtaining, processing, and transmitting infor-mation are changing the way we do business.
Most general managers know that the revolution is
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