Information technology and information systems perspectives on business strategies

This paper investigates the nature of the business strategies firms pursue and considers how firms that are pursuing different business strategies differ in the information technology and information systems (IT/IS) strategies adopted. The empirical results arising from survey research conducted in the UK show that most businesses appear to be competing through new products in existing markets and the most popular information system is one which increases market share. For those firms whose strategy is to sell existing goods in existing markets, the results reveal that the most important contribution of IT/IS is considered to be enabling the reduction of costs. Whilst firms do use IT/IS in a strategic way, this is frequently undertaken for defensive reasons to maintain the firm's position in the industry. However, IT/IS strategies are also seen to support the general business strategy of product or market innovation. Recommendations for further research are also made, which focus on the potential bias introduced into this type of research where only IS managers are surveyed and business managers' views are not taken into account. This study has looked at only two models of business strategy and there is a need to extend the analysis to look at other models of business strategy, particularly Porter's.