Why do you think information systems technology can be seen as a production factor that can be

replaced by capital and labor traditional ? please discuss in this forum.

Answer :

In my opinion, information systems have become an integral, online and interactive tool that is highly
involved in the operational activities of an organization. Information systems change an organization's
economy (economic impact) and increase the likelihood of managing work (organization and behavior)

Information technology replaces forms of capital, such as buildings and machinery, which remain
relatively expensive. Information technology replaces labor, which has historically been an increasing
cost.

The theory based on the sociology of complex organizations also provides some understanding of how
and why companies change with the adoption of new IT applications.

Competitive advantage :

Companies that perform better than others are said to have a competitive advantage over others, firms
have access to special resources that others do not have, or they are able to use publicly available
resources more efficiently usually because of superior knowledge and information assets. .

Competitive power model:

The model that is most widely used to understand competitive advantage is the competitive power
model. This model provides an overview of the company, its competition, the company environment.
The portfolio model is entirely about the general business environment of the company, in this model,
five competitive forces form the company's goal: Traditional Competition, New Players in the Market,
Substitute Products and Suits, Customers, Suppliers. Information Systems Strategy to Relate to
Competitive Power