IT-Enabled Strategic Management: Increasing Returns for the Organization : 9781591409083

We live in an age in which the value of information and knowledge has far surpassed that
of physical goods. Information resources have become a key differentiator of successful
businesses. Information technology (IT) and information systems (IS) are now integrated
in almost every aspect of business, from planning to analysis and design,
operations management and strategic decision making. Even for those businesses not
in information industries, information plays a vital role in supporting their business
functions, from routine operations to strategizing. John Naisbitt (1982) theorized that
information would be the driving force for organizations. Companies that manage
information well are more likely to maintain a competitive advantage against their peers.
Because information has become a major force in driving business activities, Evans and
Wurster (2000) proclaimed that every business is in the information business.

IT and IS have experienced dramatic changes in the last few decades. Their major role in
business has shifted from tools to support “back-office” operations to an integrated part
of business strategies and the maintenance of core competencies. Strategic management,
as the process of business strategy formulation and strategy implementation, is concerned
with establishing goals and directions, and developing and carrying out plans to
achieve those goals. As organizations evolve, so do their strategies and strategic
management practices. In recent years, IT has become increasingly important in strategic
management. IT and IT-enabled systems are now indispensable in supporting business
strategies. In this chapter, we examine the evolution of information technology and
strategic management, and their interplay in the last 50 years. We start with a review of
major theories and development in both strategic management and IT, and then explore
how IT has become an enabler for strategic management. We also discuss research issues
in IT-enabled strategic management, and suggest future directions in this crossdisciplinary
research field.