Business Networking : Tackling Competition

Tackling Competition

Several organizations implement Information Technology to improvise the business. This introduces competition in the world of information technology. The major factors determining the competition in the market are bargaining power of suppliers, buyers bargaining power, new entrants, effect of substitute products or services, intensity of the competition, standing in the conventional business rivals and many more. It is also important to understand the possibility of reengineering the core business value and modify the basis of the competition. The business relationship and power among the buyers and suppliers needs to be balanced.

The organization needs to find out ways to reduce the barriers in the entry for the customers because of the competition. It is also important to understand the importance of increasing or decreasing the switching cost. The possibility of adding values and services to the existing products to create new product lines using information technology needs to be tried out. Poor understanding of the base of the competitive dynamics in the market within which the organization competes can lead to big failure while implementing IT in business.

There is a need to understand the long term impact of strategic system launched by a counterpart or another industry in the competitive market. Launch a system which can bring out litigation and regulate the detriment of the innovator. The other factors to be considered for understanding the challenges in managing the competition in the IT business network are failure to account for the time, effort and expenditure required to ensure user adoption, understanding and effective utilization.

Managing Intellectual property rights

It is understood that the initial cost for producing information through latest technology is expensive but the same becomes very cheap for reproducing. While reproducing information becomes cheap, there is a possibility for other to make it much cheaper by just copying the stuff and make their initial cost of generating the cheapest. This has created the need for having a copyright and establishes some form of private ownership for the information thus produced.

The United States government has authorized the congress to provide copyrights to the authors and inventors in the field of science, arts and technology. In the case of digital information these guidelines, policies and rules are not clear to manage the intellectual property. With the use of internet and the vulnerability of digital information to be copied and transmitted over internet making it very difficult to trace it world wide and control the intellectual property rights.

Internet has proven to be a giant copying machine challenging the Information Technology community to control its misuse. The producers of the information have very little probability of recovering their cost of producing the information which have been copied and sold out legitimately. Especially those published through web content needs to have some mechanism to avoid copying and reproducing in various other formats.

Versioning of the information might create some difficulty for others to copy and follow up. There has been a considerable effort to enforce all agencies involved in handling digital information with policies, guidelines and framework to maintain integrity of the ownership of the digital information.