The best companies have the best business models because they have the best IT strategies says Tapscott in refuting Nicholas Carr's views expressed in his latest book -Does IT matter? Dan tapscott expands his ideas and says,IT and business models are not discrete factors in strategy; increasingly, they are inseparable. IT is leading to profound changes in business design—not just to new business processes but to the deep structures of the corporation. Because IT and networks radically reduce internal transaction costs, companies can conduct business in real-time.IT is slashing transaction and interaction costs between companies. The upshot is that partnering is becoming more cost-effective than performing many business functions internally. The vertically integrated corporation is unbundling, and companies can now focus on what they do best and partner to do the rest in what I've called "business webs." Leading companies grow by focusing on their core—that cluster of activities where they have unique capabilities and where they create true barriers to replication. The evidence is clear: Companies that forge high-performance business webs tend to have better products, lower cost structures and better profitability than their vertically integrated counterparts.
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Sadagopan's Weblog on Emerging Technologies, Trends,Thoughts, Ideas & Cyberworld "All views expressed are my personal views are not related in any way to my employer"
