Building competitive advantage through information systems: the organizational information quotient

Abstract

Information systems (IS) have significant potential for making quantum leaps in productivity, increasing the ability to compete, and maintaining sustainable competitive advantage. However, much of that potential remains to be achieved. This paper uses dynamic case analysis and survey data to identify the critical success elements found in effective use of IS. These foundational elements are then integrated into a framework for innovatively deploying IS for sustainable competitive advantage. Common pitfalls are examined. Finally, a measure of the effective implementation of IS, information quotient (IQ), is proposed. Results of this analysis are five fundamental mandates that form the basis for effective and innovative IS deployment for sustainable competitive advantage through advancement of organizational IQ. The IS of the future as prescribed here will promote both environmental responsiveness and strategic cohesiveness by providing internal and external intelligence to information processing.