December 1984 | BLAKE IVES and GERARD P. LEARMONTH
The article discusses how information systems (IS) can serve as competitive weapons for companies. It explores the strategic use of IS in various business contexts, emphasizing the importance of identifying opportunities for competitive advantage. The customer resource life cycle (CRLC) model is introduced as a framework for analyzing and developing strategic IS applications. This model considers the relationship between a company and its customers and how IS can be used to enhance this relationship.
The article also examines the role of IS in interorganizational settings, where information systems facilitate communication and collaboration between customers and suppliers. It highlights the strategic importance of IS in different industries, such as banking, publishing, and transportation, and how IS can be used to gain a competitive edge.
Several models and frameworks are discussed, including the strategic grid, which helps classify firms based on the criticality of their existing and potential IS applications. The article also presents other models, such as the value-adding potential of IS and the strategic opportunities matrix, which help identify strategic applications of IS.
The CRLC model is further elaborated, with 13 stages that represent the life cycle of a customer's resources. Each stage is associated with specific IS applications that can be used to enhance customer service and achieve competitive advantage. Examples of IS applications in each stage are provided, illustrating how IS can be used to support various aspects of the customer relationship.
The article concludes by emphasizing the importance of IS in achieving competitive advantage and the need for companies to develop strategic IS applications. It highlights the potential of IS to improve cost-effectiveness, enhance market access, and differentiate products. The CRLC model is presented as a useful tool for identifying and categorizing strategic IS applications, helping companies to develop effective strategies for competitive advantage.The article discusses how information systems (IS) can serve as competitive weapons for companies. It explores the strategic use of IS in various business contexts, emphasizing the importance of identifying opportunities for competitive advantage. The customer resource life cycle (CRLC) model is introduced as a framework for analyzing and developing strategic IS applications. This model considers the relationship between a company and its customers and how IS can be used to enhance this relationship.
The article also examines the role of IS in interorganizational settings, where information systems facilitate communication and collaboration between customers and suppliers. It highlights the strategic importance of IS in different industries, such as banking, publishing, and transportation, and how IS can be used to gain a competitive edge.
Several models and frameworks are discussed, including the strategic grid, which helps classify firms based on the criticality of their existing and potential IS applications. The article also presents other models, such as the value-adding potential of IS and the strategic opportunities matrix, which help identify strategic applications of IS.
The CRLC model is further elaborated, with 13 stages that represent the life cycle of a customer's resources. Each stage is associated with specific IS applications that can be used to enhance customer service and achieve competitive advantage. Examples of IS applications in each stage are provided, illustrating how IS can be used to support various aspects of the customer relationship.
The article concludes by emphasizing the importance of IS in achieving competitive advantage and the need for companies to develop strategic IS applications. It highlights the potential of IS to improve cost-effectiveness, enhance market access, and differentiate products. The CRLC model is presented as a useful tool for identifying and categorizing strategic IS applications, helping companies to develop effective strategies for competitive advantage.