Article Analysis Essay on Shaping Agility Through Digital Options

Introduction

"Shaping Agility through Digital Options" is centred on the role that information technology plays in shaping the development of contemporary firms in contemporary society. The concept of agility is essential to creativity, innovation and the competitive advantage of various organizations since it provides sustainable performance to firms that have adopted this concept (Sambamurthy, Bharadwaj & Grover, 2003). Notably, there has been an increasing trend of organizations adopting information technology including the incorporation of management information system and communication technologies to be at par compared to their competitors. Therefore the article aims to summarize the impact of information technology on organization performance (Sambamurthy, et.al, 2003).

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Through strategic entrepreneurship and information technology techniques such as the incorporation of the management information system, the article stipulates that information technology capabilities and investment are in a sole position of influencing organization performance in positive ways. This can be achieved through various digital options, agility, and entrepreneurial aggressiveness (Sambamurthy, et.al, 2003). Therefore, the author argues that information technology as a digital option for various organizations have acted as a generator for sustainable performance form many firms. With increased globalization and intense competition among firms, the concept of agility has been on course. Many agile organizations have always predicted opportunities that have provided them with competitive advantage in the product market. This has enabled them to prepare adequately above other firms, in capitalizing in such opportunities. Therefore, in the long run, this has enabled them to continue in existence for the foreseeable future, without any intention of liquidation (Sambamurthy, et.al, 2003)

Therefore, the concept of agility is related to organization success in the creation of value, and the provision of competitive advantage through enhanced innovation, market segmentation, and various channels. Many organizations are initiating increased investments in information technology including customer relation, management, supply chain management, and data warehousing (Sambamurthy, et.al, 2003). All these investments are centered on improving the overall effectiveness of a firm. Moreover, as information technology emerges as a strategic differentiator among organizations, there is an increasing interest in knowing how information technology resources and assets give an organization a competitive advantage above other firms.

Moreover, the author has emphasized on the concept of logic positioning. The concept states that, for an organization to enjoy superior performance above other firms in the industry, it must incorporate strategic positioning in all its operations through integrated information technology systems such as management information systems (Sambamurthy, et.al, 2003). Incorporation of sound information technology is capable of shaping the uniqueness of an organization concerning its products and services. Information technology literature has embraced the concept of logic positioning in such organization activities as pricing. The logic of leverages stipulates that the integration can only shape organizational performance through the incorporation of valuable and inimitable resources and capabilities that may be distributed across all other departments of the organization (Sambamurthy, et.al, 2003).

The logic of opportunity stipulates that superior organizations are shaped through great innovation and competitive strategies. Notably sustainable business incorporation of information technology arises mainly through the successful integration of digital resources and business objectives, structures and competencies, therefore information technology can create agility between the contemporary digital economy and traditional economy. Digitalization also improves economic viability of an organization thereby creating an improved organization value chain (Sambamurthy, et.al, 2003). Through the incorporation of information technology in an organization, the organization will enjoy such advantages as lower coordination cost. Moreover, it has enabled organizations to create inter-organizational relationships by sharing information technology-oriented information among the same industry.

Generally, the conceptual frameworks have increased the organization's thinking concerning the role of information technology as an aspect of agility. Therefore, organizations should employ information technology in their key organization processes, knowledge, procurement, manufacturing and customer relationship (Sambamurthy, et.al, 2003). Therefore, digitalized organization processes are capable of lowering operational cost to the organization among other benefits. Moreover, the organization that has taken this step would acquire the necessary information and knowledge that can enable quick adaptation to the dynamic environment. Besides, digitalization can enable value-based information propositioning. This enables value based cooperation among a few firms making it hard for competitors to duplicate such current information strategies.

Information technology through agility concept enabled long term organizational sustainability through the identification of multiple business opportunities. This has made firm digitalization to increase in the contemporary business community. Notably, the author offers some point of biasness in the article since he asserts that the benefits arising from information technologies should not be known or shared by other competing firms. Notably, the article is relevance to Laudon's book 'management information system; managing the digital firm' since both the articles are centered on how firms can leverage information systems and information technology to enable long term competitiveness of the firm (Laudon & Laudon, 2015). Hence it expands our knowledge on the benefits that organizations will accrue as a result of information technology.

Conclusion and Recommendation

In conclusion, information technology is gaining importance in contemporary business society. Through the integration of the agility concept in various organization processes including supply chain and management making an organization to have a competitive advantage above other firms in the same industry. Therefore I recommend the article since, through agility concept, businesses can be capable of capitalizing on multiple opportunities arising from information system integration.

References

Laudon, K. C., & Laudon, J. P. (2015). Management Information Systems: Managing the Digital Firm Plus MyMISLab with Pearson eText--Access Card Package. Prentice Hall Press.

Sambamurthy, V., Bharadwaj, A., & Grover, V. (2003). Shaping agility through digital options: Reconceptualizing the role of information technology in contemporary firms. MIS quarterly, 237-263. https://www.researchgate.net/publication/220259906_Shaping_Agility_Through_Digital_Options_Reconc