Exam Essay Example

Exam Question:

It takes more than technology to profit from

technology. Explain what you understand by this

statement.

Introduction

(CONTEXT) Profit can only be generated by companies

who have competitive advantage over their competitors.
In the digitized economy, technology is part of the
company’s intellectual capital. (OVERAL ARGUMENT)
However, technology alone cannot be considered a
competitive advantage, it has to be effectively
incorporated into the business processes as a powerful
tool to generate competitive advantages. (OUTLINE OF
STRUCTURE) This text will demonstrate three business
processes, including knowledge management, supply
control and strategic positioning which can be turned into
competitive advantages with the help from technology,
based on some theoretical and empirical examples from
Bhimani (1999), Boiney (2000), and Porter (1998).

MAIN BODY
(TOPIC SENTENCE – introducing sub-argument 1)
Knowledge is recognised as one of the most important

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aspects of intellectual capital for a business, and
knowledge management is increasingly embodied and
embedded in the business process and related
experiences (Bhimani 1999). (DEVELOPMENT) Internet
and information technologies have enabled almost real-
time information sharing with data automatically stored in
an electronic database. (EXEMPLIFICATION) For
example, the CFO of Cisco, with his PC, can access
comprehensive enterprise-wide financial information that
is only 24 hours old. This supports quick decision-making
by providing all available real-time information to the
management. (DEVELOPMENT) The advantage is that
new technology can sift through the endless data, in
effect capturing vital organisational knowledge.
(EXEMPLIFICATION) For instance, the Enterprise
Resource Planning system does not just drive down
costs, but is also able to respond to changing conditions
quickly and can be used to pursue new opportunities
aggressively. (WRAP-UP) Hence, technology can
enhance an organisation’s learning process and assist
the development of new capabilities in the long term.

(TOPIC SENTENCE – introducing sub-argument2)

Second, internet technology has reduced suppliers’
bargaining power, and eliminates powerful distribution
channels in the market which directly saves costs for
businesses in outsourcing and distribution expenses.
(DEVELOPMENT) Moreover, new technologies can also
integrate and enhance their supply control system,

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intensify their interactive relationship with suppliers and
customers. (EVIDENCE) For example, Dell shares real-
time information on its production, distribution and
customer feedback within the organisation, anywhere in
the world, through its ERP system which greatly reduces
inventory costs and production time (Boiney, 2000).
Chrysler’s SPIN system connects over 3500 of its
suppliers and enables them to share production
information. This allows instant adjustment to intra-
supply and demand. As a result, Chrysler’s lead-time to
the customer is reduced from 6 to 2 days, and saved
process time by 25-50%. (WRAP-UP) Hence, we are
able to conclude that an integrated supply control system
can cut costs and improve operational efficiency.

(TOPIC SENTENCE – introducing sub-argument 3)

However, the improvement to operational efficiencies
can sometimes be imitated by competitors, in which case
such efficiencies can no longer be regarded as
competitive advantages (Porter, 1998).
(DEVELOPMENT) Therefore, what is important is to
focus on incorporating technology into strategic
positioning. All companies in all sectors must create
advantages in delivering unique customer value with the
help of technology. (EVIDENCE) For example, the ERP
system allows Dell to manage their large-scale
production line while also manufacturing tailor-made PCs
for customers. Apple’s continuous effort to integrate
software, unique designs and proactive strategies have

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enabled them to become market leader with their unique
products iPod and iTunes. (DEVELOPMENT) This
example implies that apart from high technology, the
underlying strategic thinking is the key. This is to be
proactive and create ‘customer-perceived’ value by
continuously introducing new ideas, designs, concepts
(online music store) to the customers with the
complement supports from technology. As a result, the
target is to ‘lock-in’ customers, by increasing their
switching costs. (WRAP-UP) Therefore, strategy building
of this sort is the most important business process in the
creation of competitive advantage.

CONCLUSION
(SUB-ARGUMENT 1, 2) In conclusion, technology
integrated knowledge management and supply control
systems can save costs and improve operational
effectiveness for the businesses. (SUB-ARGUMENT 3)
Moreover, unique strategies must take into account
technology as a powerful tool, and be proactive and
aggressive in terms to creating customer value.
(CONCLUSION) Only by doing so, can companies
create unique competitive advantages and ultimately
generate profit.