Question

in order for IT to be successful in business, the organization must plan how to use information technology . there are two different methodologies used for that, including the scenario approach and competitive advantage planning, explain each methodology, and discuss the differences between them ?

Answer 1

The Scenario Approach

The scenario approach is a technique used for gaining in popularity by using less formal activities and it should be realistic. The managers and planners are the pillars of this approach. They use their ideas in this approach for the purpose of using information technology efficiently. They were find business scenarios and evaluate them to earn maximum output. After implementing one scenario they also find out other alternatives for their future.

Planning for competitive advantage

Planning for competitive advantage is very important point in this competitive world and complex information technology environment. It involves the evaluation of potential benefits and risks of using IT based technologies and strategies for the competitive advantage. Competitive forces like customers, suppliers etc. and competitive strategies like cost leadership, innovation, differentiation growth etc. are more helpful in generation of idea for competitive advantage.

Scenario Approach Vs. Planning For Competitive Advantage

Benefits of scenario approach

· Decision makers for question their assumptions

· Creation of learning organization process

· Sharp discontinuities to be evaluated

· Presentation of alternative images

Benefits of planning for competitive advantage

· Elimination of risk

· IT based strategies and technologies

· Implementation of cost leadership, differentiation growth, innovation etc.

· It influence in competitors, customers, suppliers etc.