Question

1. Write a proposal to your head of department explaining how Information Technology can be leveraged to gain a competitive advantage in your department. Explain what advantages your proposal if implemented can help achieve this. What competitive strategy or combination of strategies do you seek to employ. 2. Mention and explain 5 ways in which Business Process Reengineering differs from Business Improvement. Use an institution that you are familiar with to give examples.

Answer 1

Proposal

From

Name

Designation

To

The head of the department

Sub: Regarding Information Technology leverage

Sir/Madam

Information Technology has become a critical element in doing business today. It will be helpful for us to improve profit by way of reducing the cost of operations. It can be applied in almost all areas of the department for improving efficiency such as communications, customer relationship management, workflow management, inventory management, etc.

Leveraging Information Technology helps in exchanging information via multiple channels such as emails, conferencing tools, etc. When it comes to customer relationship management, leveraging Information Technology will be helpful in acquiring, serving, and retaining the customers of the department. It is also helpful in automating the workflow in the organization. Leveraging Information Technology helps in improving inventory management by way of predicting reorder levels and in tracking inventory. It could cut costs in all these aspects of the department too. It could also provide a platform for the usage of tools and techniques like cloud computing, business intelligence, etc.

So it is the hight time that our department must leverage Information Technology.    

The advantages of the proposal.

• Leveraging Information Technology will be helpful in cutting wastage and eliminating cost.
• It helps in streamlining the communication of the department.
• It helps in improving the department's competitive position in the market.
• It helps in the storing and safeguarding of vital business information.

The competitive strategy employed

From Porter's Generic Competitive Strategies, the department could adopt the Cost Leadership strategy. Through Cost Leadership the department could become the low-cost producer in the sector with the help of leveraged Information Technology. Leveraging Information Technology will help the department in getting the benefit of economies of scale also. By adopting this competitive strategy the department could possibly command prices in the market soon.

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