IT Management Report: Competitive Advantage and Current Practices

This report delves into the realm of IT management, exploring its theoretical underpinnings and practical applications within the business landscape. The study begins with an abstract and table of contents, followed by an introduction to the topic. A comprehensive literature review examines various IT management theories, including the perspectives of prominent researchers on topics such as cloud computing, Task-Technology Fit, and the Technology Acceptance Model. The report then analyzes the impact of IT on business performance, discussing the benefits and challenges associated with IT implementation. Furthermore, it investigates the use of IT for gaining a competitive advantage, highlighting how organizations can leverage technology to improve efficiency, customer service, and brand image. The study also examines current practices in Australian firms, comparing these practices with the theories discussed in the literature review. The report concludes with a summary of findings and provides references to support its analysis. The report showcases the application of IT in business and presents insights relevant to IT management practices.

IT Management

ABSTRACT
Information technology has given benefits to the business units by improving their
working efficiency and maximizing productivity of the organizations. It is the comprehensive
term which includes technologies for exchange of information, storing data, communication etc.
Current study discusses information management theories of the organization. Report reviews
literature of other authors on IT tools and use of information technology in gaining competitive
advantage. Report describes benefits of using information technology system in the entity and
how it supports in gaining competitive advantage to the business units. Impact of It on business
performance is being reviewed in this assignment. Current practices of Australian firms in
implementation of information technology in the workplace is being described in this study.
Furthermore, report compares literature and current practices of corporation with regards to use
of IT system.

Table of Contents
INTRODUCTION...........................................................................................................................1
LITERATURE REVIEW................................................................................................................1
CURRENT PRACTICES REPORT................................................................................................6
COMPARING LITERATURE AND CURRENT PRACTICES....................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
In the era of globalisation and digitisation, organisations incorporating information
technology (IT) in order to gain competitive advantage and promulgate their profits efficiently.
In accordance with this context, the following report will present the concepts of information
technology in order to gain the competitive advantages. Further, the present study will analyse
the articles of previous researchers and aim to construct effective literature review. Further, the
use of IT in current practices will be analysed and then compared with the theories discussed in
the literature review. Eventually a brief synopsis of the report will be present in the end of the
assignment.
LITERATURE REVIEW
Information technology management theories
As per the view of Galliers and Leidner, (2014) information technology (IT) has become
integral part of business units. There are many organizations those who maintain huge database
of consumers, suppliers, inventory etc. Information technology is the great tool that assist in
maximizing benefit of entity and support the firms in gaining competitive advantage. With the
introduction of the computers, entire industries have got changed drastically. Use of advance
software and latest technologies have supported entities in improving business efficiency and
conducting operations in smooth manner. Xiang, Magnini and Fesenmaier, (2015) stated that
information technology gives opportunity to the corporations to address market situations and
make changes in the workplace accordingly (The literature review of technology adoption
models and theories for the novelty technology, 2017). IT uses has improved record keeping
system in the organization that has supported in gaining success in the market. By this way
organizations have become able to identify their operational loo falls and they take action to
improve its further. It is great tool through which firms have become able to secure their
confidential information and using these details in the future. One of the major advantage that
have been achieved by corporations by using IT systems in the workplace is that they have
become able to enter into the global market. Now entities are able to serve foreign consumers by
using advance software (Theories of ICT System Implementation and Adoption – A Critical
Review, 2011).
According to Chae, Koh and Prybutok, (2014) Cloud computing is considered as one of
the best example of advancement of information technology. It is the internet based computing
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which supports in providing necessary information and data to the firm whenever it is required. It
provides storage solutions to the users by this way entity can keep their data protected and can
use these detail in the future. This cloud computing system has made drastic change in the
organization, it has supported in gaining competitive advantage. With the help of technique retail
organizations are now able to process their confidential data into third party computer. Ahmad,
Bosua and Scheepers, (2014) argued that cloud computing is one of the effective information
technology paradigm that assists in sharing resources and higher level services with other user
over internet. It is used by entities in achieve coherence and gaining high economical benefits.
This has supported entire industry in increasing their sales revenues and meeting with the needs
of consumers. Self service provisioning is one of great advantage of this tool. With the help of
this system employees can spin up resources in order to meet with the demand (The literature
review of technology adoption models and theories for the novelty technology, 2017). This
system supports organizations in increasing demand of product and services. For example
Blockey consultancy firm has used this cloud computing information technology. This has
increased profit of the firm and has supported in attracting new buyers towards the brand. With
the help of this IT tool entity has become able to enhance its brand image to great extent.
Concept of cloud computing was utilized by the cited firm in effective manner. This has
improved its efficiency level and also improved manageability of the firm. Apart from this,
technology requires less maintenance thus, it supports in reducing operational cost of the
company (Theories of ICT System Implementation and Adoption – A Critical Review, 2011).
As per the view of Trainor and et.al, (2014) uses of cloud computing can create
challenges for the organization because it has to spend much amount for its bandwidth. Kwon,
Lee and Shin, (2014) argued that its is benefit tool because with the help of this technique
company can minimize data centres size and can also eliminate data centre footprints. This
supports in improving collaboration between several organizational departments. Kwon, Lee and
Shin, (2014) stated that changes in payment system has forced the firm in applying the latest
information technology in the workplace (Theories of ICT System Implementation and Adoption
– A Critical Review, 2011). Task- technology Fit (TTF) theory is the model which emphasizes
on impact of IT on individuals. Consumers are the life blood of business, if company provides
them satisfactory platform to deal with them then they will be positive towards the brand. Uses
of advanced IT system aids in utilizing resources well and meeting with the needs of customers.
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Illustration 1: Task Technology Fit theory
Source: (The literature review of technology adoption models and theories for the
novelty technology, 2017)
According to Fitzgerald and et.al, (2014) Technology acceptance model is considered as
effective IT theory. It deals with prediction of acceptability. Companies are required to identify
acceptability of the technology by employees and accordingly it has to modify its system. If
users do not accept the latest software then it may cause difficulty in the business unit. It can be
determined by two major elements; perceived usefulness and perceived ease of use. In the
perceived usefulness workers of the firm think that use of updated technology will support in
improving their working performance (Theories of ICT System Implementation and Adoption – A
Critical Review, 2011). On other hand perceived ease explains that use of IT system can be
effortless for the users. This model supports in changing attitude of staff members and make
them aware with the benefit of using advance software.
Impact of using IT on business performance
As per the view of Leamer and Storper, (2014) information technology is the tool that has
supported retail and other industries in improving their performance level. With the help of this
tool companies have become able to perform their operations more frequently and became able
to sustain in the market for longer duration. Changes in technologies have made drastic changes
in entire industry due to which competition has been increased to great extent. In order to sustain
in the market for longer duration firms have to improve their technique equipment and have to
implement the latest software. This is the only way through which they can gain competitive
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advantage and can meet with their organizational objectives (Theories of ICT System
Implementation and Adoption – A Critical Review, 2011).
Alegre, Sengupta and Lapiedra, (2013) argued that uses of It impacts on the business
unit. It increases cost of the company. For installing this software in the workplace firms have to
invest huge amount. Apart from this, they have to train their staff members well so that they can
use these equipments well. This increases cost of the organization. In such condition if company
fails to increase its sales revenues then it increases burden on entity. By this way profitability of
the corporation gets decreased. In addition, use of the latest information technologies requires
maintenance in every three month. If these technologies do not get timely maintenance then it
may increase chance of errors and accidents. By this way brand image of the firm can get
affected (The literature review of technology adoption models and theories for the novelty
technology, 2017).
Illustration 2: Impact of using IT in business
Source: (The literature review of technology adoption models and theories for
the novelty technology, 2017)
Use of IT for competitive advantage
According to Dunning, (2015) Use of IT system is the beneficial application that help the
firm in gaining competitive advantage. Customers always want innovative products and services.
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Using information technology in the workplace gives opportunity to the firms to tackle business
problems in effective manner. Use of information technologies supports entity in storing
information properly and managing it well. Use of advance software supports firm in protecting
their confidential detail and keeping it safe for the future use. Walsh, (2016) argued that use of
technology is the automated process that assist in completing the project within less period of
time (Theories of ICT System Implementation and Adoption – A Critical Review, 2011). This
decreases burden of the staff members and they feel satisfied with the brand. It is the tool that
helps in raising their performance and providing quality products and services to the consumers.
Internet is the great example of it. By developing own websites many international firms are
communicating with mass audience and they are conducting their operations online. This help in
attracting new clients and increasing their sales revenues. Part from this, using IT in the
organization aid in resolving consumer's complain immediately and resolving their quarries
soon. By this way people become loyal towards the brand and they be associated with the firm
for longer duration. Thus, use of IT assists in gaining competitive advantage and developing
positive brand image in the mind of customers.
Trainor and et.al, (2014) argued that use of information technology increases
communication in the business unit. With the help It tools company can circulate necessary
information to its staff members easily. This supports in involving them in decision making
process and making them aware with the latest Updation. It is the great tool that aid in
identifying needs of employees and measuring their performance. By this way managers can
make necessary action to motivate staff members and making them loyal towards the brand (The
literature review of technology adoption models and theories for the novelty technology, 2017).
By this way entity certain its skilled workers in the workplace for longer duration and can gain
competitive advantage by offering satisfactory services to consumers.
As per the view of Dunning, (2015) adoption of information technology allows firm to
gain competitive advantage. Use of advance software support the firms in making new strategy
for product development. By this way company can make innovative products and can improve
its customer services. Use of advanced IT tools helps in minimizing cost and increasing brand
image of the firm. By using advance It tools entity can improve its production capabilities and
can reduced burden of its staff members (The literature review of technology adoption models
and theories for the novelty technology, 2017). Business can use information technology system
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to improve efficiency level of the products, that assist in satisfying needs of consumers and
attracting them towards the brand. By this way firm becomes able to gain competitive advantage
over their rivals.
CURRENT PRACTICES REPORT
In today's market economy of Australia, majority of organisation uses new and innovated
information technology in order to increase the effectiveness in the quality of products and
services. From digital marketing to automated systems, information technologies plays a great
role in developing the business organisations (Schwalbe, 2015). Technical specialists are
increasingly expected to interact with others outside their immediate team, driven in part by the
organisation’s desire to transform its key IT staff from inward to outward looking. Several
pressures are emerging in the Australian economy that are making business competition more
unpredictable and challenging. Three examples in the retail sector, as evidenced by recent half-
year financial results, are the emergence of new competitors, Australia’s changing tastes, and
disruptive technologies. Majority of the organisations implemented information technologies in
order to sustain in the competitive advantage.
In the current scenario of Australian economy 31% of business organisation had presence
on social media and have their commercial websites. These assists in increasing the profitability
and customer attraction towards the organisation. Majority of organisations incorporating in
Australia uses online mode to deliver the goods and services to the customers. Further, the
financial activities related with online banking, invoicing and digital payments are made online
with the help of information technological systems and devices (Sutton, Azimi and Steinberg,
2016). Approximately 87% of the business organisations implemented information technology
and systems in their premises in order to reduce the efforts and time to do the financial activities.
For example, Melbourne Water, a governmental body who is responsible for sewage treatment
outsources it information technology to UXC connect in order to improve the quality of work
efficiently (Bender, 2013). Thus, in order to gain competitive advantage and promulgates the
capacities, the management of organisations implements information technologies efficiently.
Big corporations take advantage of information technologies and systems in order to store vital
data, increase the productivity and reducing the manual efforts. In the era of globalisation and
digitisation, each and every organisation aims to promulgate their productivity and profitability
in order to sustain in the competitive environment.
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The above chart shows the percentage of different types of information technologies used by the
organisations incorporating in Australia. From the above analysis it can be understood that
Mobile Internet technology has been greatly used by the companies of the country. Mobile
internet is flexible and organisations can rely on the mobile internet efficiently. Further, in big IT
companies of Australia, the use of high speed broadband is at peak (Orlikowski, Walsham and
DeGross, 2016). DSL remains the most common type of broadband connection as approximately
60% of Australian organisation install this system in their premises. Companies who have
employed more than 200 employees had the lowest use of DSL as 30% of the organisations uses
the main type of broadband connection and had the highest use of Fibre to The Premises (FTTP).
From further, analysis it was identified that there is moderate use of cloud technology in order to
store data and information on the cloud storage. This concept is new and now trending among
the organisations of Australia. This helps the manager to access the data from anywhere easily
and efficiently. Organisations using social media platform in order to promote the goods and
services offered by them efficiently. Social media marketing assists the management to advertise
the products and services on a platform where large number of viewers can view their ads and
commercial. From the above chart it can be understood that there is minimum to moderate use of
social media marketing in Australia (Pathan, 2016). Further, Data analytics was recorded as
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Illustration 3: Digital Technologies in Australian Businesses
(Source: Business Use of Information Technology, 2016 )

being of major importance to 18% of businesses in the Mining industry. Another 18% indicated
that data analytics was of moderate importance to their business. The 40% of wholesale
industries of Australia which consists of information, media and telecommunication industries
had reported an equal highest proportion of organisations used internet in order to collect
information form research and identifying future market trends (Business Use of Information
Technology, 2016).
Thus, from the above analysis, it can be understood that business corporations
incorporating in Australia utilises information technology in order to gain the competitive
advantage and also used to increase the effectiveness in the quality of products and services. For
example, Domino's Pizza retailer in Australia, uses information technology in so that the home
delivery and order taking process can become robust and efficient. They initiate a project name
3/10 project in which they aim to pick up pizza in three minutes and home deliver it in 10
minutes. This projects aid in gaining competitive advantage in Australia. Another example of
Amazon Go a retail store of Amazon where customers can purchase the products they want and
move out from the store without waiting for bill or payment (Rice and Martin, 2013). The
payment will automatically debit from the person's account and invoice will be received by him
on his e-mail id. It gives a huge competitive advantage to Amazon Go as customer need not have
to wait in line for bills and payments. Thus, it implies that information technology transforms the
perceptions and vision of customers and organisations. Now trade of goods and services has
become more efficient and robust and management keeps on improving in order to achieve
greater success. Though, in rush of achieving greater heights by using information technologies,
managers sometimes make big and avoidable mistakes.
These mistakes impacts on the profitability and reputation of the organisation. The
biggest mistake management made is not securing or using cyber security measures efficiently in
order to protect the vital data from hackers and cyber criminals (Lloyd, 2017). Another mistakes
made by the management is recruiting incapable employees to handle the IT department of the
organisation. It is very important for the management of organisation to provide effective
training and education to the workforce of so that their abilities and skills can be improved and
they will contribute efficiently in developing the productivity of the company. In order to
overcome the issues and problems the management of organisations needs to comprehend the
implications of information technology and hire skilled and competent employees. Thus, in the
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present market economy of Australia, majority of organisations implemented the information
technology in order to sustain in the competitive environment. From marketing to production and
selling to distributing, information technology plays vital and essential role in the growth and
development of the organisations of Australia.
Now the management can communicate with top authorities and conduct meeting
virtually using advance technologies. This not only aid in saving time and cost, but also reduces
the pressure and stress. In this context, it can be understood that in order to promulgate the
production capacities and profitability, the management of companies utilises the information
technologies efficiently. Information technology aid in reducing the efforts, time and cost of the
organisation and assist the management to cope up with the complex circumstance efficiently.
Thus, from the above analysis, it can be understood that business corporations incorporating in
Australia utilises information technology in order to gain the competitive advantage and also
used to increase the effectiveness in the quality of products and services. It is the duty and
responsibility of the management to carefully and precisely invest in appropriate technology so
that business can be blooms and also provide effective quality of goods and services to the
customers.
COMPARING LITERATURE AND CURRENT PRACTICES
In this part of report, comparison will be made between literature review and current
practices of information technology used by the organisation. The authors and researchers
believed that information technology will help the organisations to increase their production
capacities and profitability by reducing their time, efforts and cost. In today's world, the
organisation of Australia implemented information technologies efficiently and with the help of
information technologies their business started to bloom and become more robust. The theories
of information technologies proposed by authors which describes the procedure of using the
technology helps today's organisations greatly. Though, in pragmatically using information
technology and systems is more complicated and requires enormous amount of investment.
Further, according to theory of information technology management, the authors belived that if
employees and workforce are not appropriately trained then it the implementation of information
technology will remain worthless and meaningless to the organisation. In current practice,
special training session both on the job and off the job has been provided to the large and
medium scale organisation of Australia. This helps in promulgating the skills, abilities and
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knowledge of the employees efficiently and effectively. After analysing the literature review and
current practices it can be understood that information technology becomes the necessity of the
organisations and management. It helps in all the departments of the organisation i.e. from
production to packaging and distribution, each and every sector has been equipped with
information technologies and systems. Thus, it can be understood that researchers critically
examined the impact of information technology on the growth and development of the
organisation and then prepared efficient theories that navigates the managers on right path and on
right direction to gain the competitive advantage.
CONCLUSION
From the above report, it can be understood that information technology plays vital role
in the organisations. Majority of Australian business implemented the information technology
and communication system in order to promulgate the profitability and sustain the competitive
environment. In this context, the present paper covers the aspects of information technology with
the help of literature review. The articles and journals has been critically analysed in order to
generate useful conclusion. Further, the current practices of information technology which is
been used by the organisation of Australia to gain competitive advantage has been discussed in
this report. It was identified that majority of organisations preferred mobile internet and
communication methods in order to gain competitive advantage. Moreover, comparison of
literature review and current practices has been made in this paper.
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REFERENCES
Books and Journals
Ahmad, A., Bosua, R. and Scheepers, R., 2014. Protecting organizational competitive
advantage: A knowledge leakage perspective. Computers & Security. 42. pp.27-39.
Alegre, J., Sengupta, K. and Lapiedra, R., 2013. Knowledge management and innovation
performance in a high-tech SMEs industry. International Small Business Journal. 31(4).
pp.454-470.
Chae, H. C., Koh, C. E. and Prybutok, V. R., 2014. Information technology capability and firm
performance: Contradictory findings and their possible causes. Mis Quarterly, 38(1).
Dunning, J. H., 2015. Reappraising the eclectic paradigm in an age of alliance capitalism. In The
Eclectic Paradigm (pp. 111-142). Palgrave Macmillan UK.
Fitzgerald, M. and et.al., 2014. Embracing digital technology: A new strategic imperative. MIT
sloan management review. 55(2). pp.1.
Galliers, R. D. and Leidner, D. E., 2014. Strategic information management: challenges and
strategies in managing information systems. Routledge.
Kwon, O., Lee, N. and Shin, B., 2014. Data quality management, data usage experience and
acquisition intention of big data analytics. International Journal of Information
Management. 34(3). pp.387-394.
Leamer, E. E. and Storper, M., 2014. The economic geography of the internet age. In Location
of International Business Activities (pp. 63-93). Palgrave Macmillan, London.
Lloyd, I., 2017. Information technology law. Oxford University Press.
Orlikowski, W.J., Walsham, G., and DeGross, J. eds., 2016. Information technology and
changes in organizational work. Springer.
Pathan, A.S.K. ed., 2016. Security of self-organizing networks: MANET, WSN, WMN, VANET.
CRC press.
Schwalbe, K., 2015. Information technology project management. Cengage Learning.
Sutton, B., Azimi, V. and Steinberg, H., 2016. Information Technology Issues In Customer
Service, Cultural Differences, & The Big 5 In Australia, Columbia, New Zealand, & South
Korea. Academy of Management Information and Decision Sciences, p.19.
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Trainor, K. J. and et.al., 2014. Social media technology usage and customer relationship
performance: A capabilities-based examination of social CRM.Journal of Business
Research. 67(6). pp.1201-1208.
Walsh, K. A., 2016. China R&D: a high-tech field of dreams. InSEEKING CHANGES: The
Economic Development in Contemporary China (pp. 191-212).
Xiang, Z., Magnini, V. P. and Fesenmaier, D. R., 2015. Information technology and consumer
behavior in travel and tourism: Insights from travel planning using the internet.Journal of
Retailing and Consumer Services. 22. pp.244-249.
Online
Bender, A., 2013. Melbourne Water outsources IT management. [Online]. Available
through:<https://www.cio.com.au/article/531716/melbourne_water_outsources_it_manage
ment/>
Business Use of Information Technology, 2016. [Online]. Available
through<http://www.abs.gov.au/ausstats/abs@.nsf/mf/8129.0>
Rice, A. and Martin, N., 2013. Company results: how competition is transforming Australia’s
retail sector. [Online]. Available through:<https://theconversation.com/company-results-
how-competition-is-transforming-australias-retail-sector-72844>
The literature review of technology adoption models and theories for the novelty technology,
2017. [Online]. Available through<http://www.scielo.br/pdf/jistm/v14n1/1807-1775-jistm-
14-01-00021.pdf>
Theories of ICT System Implementation and Adoption – A Critical Review, 2011. [Online].
Available through
<http://lib.tkk.fi/SCIENCE_TECHNOLOGY/2011/isbn9789526041506.pdf>
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