IT Strategies for Product and Service Innovation in Business Enterprises Research Paper 2022

ICT Strategy and Management 1
ICT STRATEGY AND MANAGEMENT
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ICT Strategy and Management 2
Abstract
The integration of business strategy and information systems technology has led to improved
product and service delivery in the contemporary business world. Through information
technology, particular information systems technology has revolutionized business enterprises by
optimizing customer service, supply chain operations, knowledge management, and business
decision-making process.

ICT Strategy and Management 3
Table of Contents
1. Introduction............................................................................................................. 4
1.2 Strategy and Information System..................................................................................6
1.3 Systems used to enable competitive advantage.................................................................7
1.3.1 Customer relationship management (CRM) system......................................................8
1.3.2 Enterprise resource planning (ERP) system.............................................................10
1.3.3 Supply chain management (SCM) planning.............................................................11
1.3.4 Knowledge management (KM)............................................................................12
1.3.5 Business intelligence (BI) systems........................................................................13
1.4 Conclusion........................................................................................................... 14
Reference List............................................................................................................... 15

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IT Strategies for Product and Service Innovation in Business Enterprises
1. Introduction
In the past years, the advancement of information technology (IT) has immensely contributed to
a number of aspects of our society, such as new business development, economic growth, novel
social trends and phenomena, public welfare, and transformation in an individual’s way of
leading their lives. In this sense, business entities are leveraging IT resources for commercial
ends and have realized a great deal of productivity and efficiency in terms of their business
performance and operations (Luftman, Lyytinen, and Zvi, 2017, p.30). Consequently, modern
businesses are making significant investments in information technology in order to align their
business strategies, offer extended enterprise networks as well as allow inventive functional
operations. These corporations have adopted information technology to foster transformation in
procurement, managing customer relationships, the supply chain, and manufacturing all other
essential practices.
Additionally, business is using information technology to enhance competitive abilities. As a
result, several researchers in information systems have positioned information technology as a
significant ingredient of the development of innovation, such as (Akter et al., 2016; and Gerow,
Thatcher, and Grover, 2015). Recent studies have shown that companies device information
technology to improve and expound their services and product scope. Since most innovation
activities, including the addition of innovative functions, enlarging existing ones and enhancing
the process of service delivery, the success of a business depends on how well it executes its
service modernism to build new markets.

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Excellent innovation activities aid organizations in developing a competitive advantage.
Nonetheless, less research has been performed on the development of nomological relationships
amongst information technology, competitive advantage, and service invention. On the same
note, there is also scarcity of systematic empirical studies of these relationships hence there is no
dominant pattern that has emerged. In order to address these gaps and improve understanding
regarding the adoption of information technology as well as particular service innovation
activities, this paper explores on the adoption of information technology as a coordination
mechanism that has resulted in transforming innovation-related practices (Qrunfleh, S. and
Tarafdar, M., 2014, p.344). At the same time, there is a close connection between information
systems and technology since their strategy are inseparably connected. According to Arvidsson,
Holmström, and Lyytinen (2014, p.48), the impact of information systems and technology on a
firm’s stratagem can fashion a competitive advantage for that company. Indeed, information
systems, as well as technology, have the ability to position businesses in a stronger competitive
position, unlike business without this service innovation.
In the modern business, environment, change has emerged as a critical differentiator. Changes in
both business strategy and technology are calling for the quick adoption of roles as well as
structures for businesses. Therefore, information systems are central to a company's initiatives,
like creating electronic distribution channels, knowledge management, reengineering in
developing digital business strategies. Since information systems were designed, its role has been
rapidly evolving. Initially, the idea of an information system was to automate the comprehensive
handbook and pre-computer mechanical process, which soon become successful by
rationalization and incorporation of policies. During this time, information system (IS) was
considered as an operational tool and a service to Ullah and Lai (2013, p.4) management that was

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not even regarded as a core competency for organizations. With the advancement in information
technology, another capability was recognized, and the information system was considered to be
essential to the execution of a business's strategy. In this sense, this led to the advancement of the
concept of Strategic Information System (SIS). Strategic Information Systems are a system that
supports a business in accomplishing its corporate goals and objectives (Wagner, Beimborn, and
Weitzel, 2014, p.243). This paper aims to shed new and transformative light on these constructs
among business enterprises.
1.2 Strategy and Information System
Currently, businesses are experiencing global competition, more unpredictable marketplaces,
consumer pressure for tailor-made offerings and tighter performance standards, and reduced
product life cycles. All these increasing demanding factors solely hinge on new information
systems for corporations to gain and sustain competitive advantage (Ye and Wang, 2013, p.370).
The components of information systems in business solutions should be rapidly and effectively
developed regardless of the massive transformations in information system product capability,
changes in system development regarding factors to be considered as business-side as opposed to
technical expert tasks. In the present dynamic economic setting, firms must change and become
flexible. The fundamental concept is that with the ever-rising competitive environs, businesses
need higher levels of strategic elasticity. In this sense, it demands more flexible corporations,
which calls for resilient underlying information technology infrastructure. The need for
suppleness in business arrangements, as well as alliances are promoting a shift from tight
integration to loosely-coupled mechanisms. According to Amoako et al. (2012, p.29),
information systems on its own cannot stem from business profits; however, remunerations come
from the usage of information systems. Through the use of information systems, it enables