E-Tourism - Using IT to Drive Competitive Advantage Overview Technology takes center stage The Great Convergence Gives Rise to the Digital Economy Shifting IT roles in organizations The Co-Alignment Principle Achieving competitive advantage Sustainability

1. E-Tourism
Using IT to Drive Competitive
Advantage

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OVERVIEW
• Technology takes center stage
• The Great Convergence Gives Rise to the
Digital Economy
• Shifting IT roles in organizations
• The Co-Alignment Principle
• Achieving competitive advantage
• Sustainability

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What is Competitive Advantage?

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Coca Cola and Pepsi
Watch this:
Company's Resources & Competitive Advantage

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Introduction
Hospitality executives must continually look
towards the strategic opportunities technology
offers and use technology as a competitive
method—or as a tool—to differentiate and create
competitive advantage.

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Introduction
Thriving in today’s competitive world is all about
doing things better, faster, cheaper, and differently
than anyone else.

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Technology takes center stage
One of the most significant developments related
to technology over the past few decades (and for
the foreseeable future) is the concept of digital
convergence—the coming together of numerous
technologies to make great things happen.

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The Great Convergence Gives
Rise to the Digital Economy

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The Digital Economy
• The Information Technology
• The Telecommunication
• Interactive and Multimedia Content
• Broadcast

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Pen & Paper?

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Shifting IT roles in organizations
Quest International University Perak (KPT/JPT/DFT/US/A 05) •1800-88-7487• www.qiup.edu.my

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The concept of co-alignment
• To understand the essence of strategy and the
concept of competitive advantage, it is important
to study the co-alignment principle, which is
the theoretical underpinning of these subjects.

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The concept of co-alignment
Quest International University Perak (KPT/JPT/DFT/US/A 05) •1800-88-7487• www.qiup.edu.my
In order to survive, one must be fit, and to be fit,
one must understand the environment in which
he or she operates and the forces driving
change in that environment—and then adapt
accordingly.
• Thus, the essence of strategy focuses on the
environment in which a firm competes and
one’s understanding of that environment, any
changes taking place, and what needs to be
done to adapt and stay fit (that is, out in front
of the competition).

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The Co-Alignment Principle

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Achieving competitive advantage
Traditional sources of competitive advantage come
from gaining leadership positions in one or more of
four arenas: price and quality, timing and know-
how, stronghold creation, and deep pockets.

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Key Questions to Ask of All IT
Projects

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Achieving competitive advantage
• Resource-Based View of the Firm
– 1. Outcome Approach
– 2. Trait Approach
• Examples of Competitive Advantage Derived
from IT

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Sustainability
• It is possible that, in some cases, competitive
advantage can be sustained over periods of
time, particularly if it is not easily copied, if it
alters industry structure, or if it has some
protective parameters such as a noncompete
contract or a patent, but in most cases,
competitive advantage will be short lived.

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Sustainability
• Porter (1985, p. 171–172) suggests four tests of
desirable technological change that can lead to
periods of sustainable competitive advantage:
– The technological change lowers costs or enhances
differentiation and provides a sustainable (i.e.,
inimitable) technological advantage.
– The technological change shifts cost or uniqueness
drivers in favor of a firm.
– Pioneering the technological change translates into
first-mover advantages besides those inherent in the
technology itself.
– The technological change improves overall industry
structure.

20. E-Tourism
Using IT to Drive Competitive
Advantage