Basic Strategy in the Business Use of IT

Basic Strategies in the Business Use

of Information Technology

Susan

Lower Costs

• How IT is used to keep cost as low as possible or even make it lower than in the old system.

• eg. Automated hotel front desk system

By using automated front desk system, this hotel doesn’t need to hire human to do the tasks.

Automated Hotel Front Desk System

Differentiate

• Use IT to create a unique product or service that differs from the existing product.

• eg. Capsule hotel in JapanThis capsule hotel shows a different type of hotel. Here, they don’t need the same space as ordinary hotel to create the same number of rooms as the ordinary hotel. And it needs IT to run the system.

Capsule Hotel in Japan

Innovate

• Use IT to create a new product or service that is actually needed and useful.

• eg. Automated parking system

This automated parking system is a very useful system found to ease the lack of parking space due to smaller building space and increased parking capacity.

Automated parking system

Promote Growth

• Use IT to control / manage a business locally and globally.

• eg. dhl. Com

We can track / monitor our shipment online.

dhl.com

Develop Alliances

• Use IT to develop networks with people from all around the world.

• eg. Facebook

We can connect with our friends even when separated by distance. We can also add new friends from our friends. We can build new networks with new people.

Facebook

Other Strategies : Erect Barriers to Entry

• Use IT to create a business model that will need extra investment or technology needed to enter

• eg. ebay.comIf one should desire to build a brick and mortar store like this, it will cost a huge amount of money.And if one should desire to build an online store like this, it won’t be cheap to develop the system, also it won’t be easy to be partners with secure payment system like PayPal.

ebay.com

Thank You