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.
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.