Taking a Leadership Position In The IT Business Environment
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Abstract
Well-defined Industrial economics have been based upon internal, specialized, and proprietary business models. Success in that economy has been dependent upon the ability to produce and distribute products and services faster, better, and cheaper than competitors (Economy of Scale). The opportunity for such competition translates into executable capabilities primarily by building specialized plants, jobs, and workers that support that opportunity. Then, and only then, an Economy of Scope will develop when those capabilities have been established. The business value is heavily dependent upon that ability to leverage an existing business infrastructure with a launch of a new opportunity. Job specialization, hierarchical supervision, and assembly line approaches have been techniques that have successfully leveraged a launch with an existing business structure. Those models have had little success in the Information Age. For example, a need has risen to leverage supply and distribution with existing business models. Therefore, a new infrastructure must be created to develop and execute external proprietary strategies and capabilities.