Developing Capabilities to Use Information Strategically

Efforts to deploy information technology for competitive advantage in eleven industries are evaluated through a field study. Findings are based on analysis of interviews with senior executives of a major competitor in each industry. Findings indicate that competitive advantage depends on the interaction between industry conditions and internal capability to identify and exploit opportunities. Internal capabilities and conditions and the processes that created these capabilities are defined and described. A brief review of the value added chain model from economics is included based on the authors’ conclusion that this model is useful both for understanding the experience of companies in the study and as a guide in searching for opportunities.