Creating Competitive Advantage with Interorganizational Information Systems

Many well-known examples of the use of information technology for competitive advantage involve systems that link an organization to suppliers, distribution channels, or customers. In general, these systems use information or processing capabilities in one organization to improve the performance of another or to improve relationships among organizations. Declining costs of capturing and using information have joined with increasing competitive pressures to spur numerous innovations in use of information to create value. This article draws on concepts of competitive advantage and on experience gained from successful innovations to generate classifications and a framework to guide the search for opportunities. The ideas do not constitute a procedure leading inexorably to competitive advantage. However, they have been of value when combined with an appreciation of the competitive dynamics of specific industries and a grasp of the power of information.