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The first step for management reflecting on competitive advantage is to understand the competitive market the organization operates in. |
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Secondly management should be able to implement the most appropriate, effective and efficient IS to achieve competitive advantage. |
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Moreover, management has to maintain the competitive advantage through the IS in place. |
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To achieve this, management should be able to pinpoint the activities in which using IS adds value to the business. |
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This is achieved through following the Business Value Chain Model. |
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This is sub-divided into: |
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primary and support activities. | |
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Benchmarking and best practices should also be considered. |
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Primary activities are the core activities of the business entity. |
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They include: operations, marketing and sales activities. |
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Support activities are the activities that support the core functions of a business entity. |
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They include: |
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general management, | ||
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accounting and finance, | ||
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human resource management | ||
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and technology development. |
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Benchmarking is evaluating the business performance against previous years’ performance, and also against competitors’ performance. |
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Best practice is the way by which management make sure that the current IS in place are the most appropriate, being used in the best manner. |
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In general, IS should aid management to make more informative and studied decisions in the aim of achieving the business goals in general, and competitive advantage in particular. |