Implications of Changes in Information Technology for Corporate Strategy

Cover Implications of Changes in Information Technology for Corporate Strategy
Implications of Changes in Information Technology for Corporate Strategy
Michael S Scott Morton
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After a change in leadership, there was also a shift in attention to the company's use of information technology. Having reaffirmed their corporate strategy and purpose of being a distributor, management set about taking each step in their value added chain and devoting management time and attention to finding ways of executing each step as efficently and effectively as possible. As is portrayed in Exhibit 2, this involved using the computer creatively in almost every step of the company's busi...ness. In purchasing it was used to keep more accurate forecasts of demand for individual items; in receiving, incoming items were checked carefully with invoices; and so on through each of the steps where the company added value to the products it distributed to its customers. Through this use of first and second era application of computer power the company kept more accurate track of its principal asset, inventory, and made more effective use of two other assets, its employees who could handle more items and its cash which was turned over more frequently.

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