We live in exciting times. Just decades ago, science-fiction writers
like Robert Heinlein and Isaac Asimov imagined devices such as
wrist-held videophones, virtual reality machines, and speech-programmed, handheld
computers. Today, companies like Palm, Hewlett-Packard, Nokia, Sony, and
Microsoft are producing the computer hardware and software that makes these
devices possible. Even science-fiction writers did not imagine the creation of the
Internet or how that would dramatically change people's lives. We live in a different
world than just a decade ago; advances in IT have changed the way people think
and the very nature of business commerce, occupations, and organizations.
In this chapter, we examine how these dramatic advances in IT have affected
business activity and the way companies compete in today's wired and wireless
global world. First, we discuss the relationship between information, knowledge,
competitive advantage, and profitability. Second, we discuss the five principal IT
applications responsible for much of the increase in business efficiency and effectiveness
today. Third, we describe the different hardware and software components of
IT and e-commerce used to network computers both inside and between companies.
We then examine the battles currently raging in the IT industry between major companies.
By the end of this chapter, you will understand the many ways in which IT
allows companies to make better use of their resources to increase their efficiency,
effectiveness, and profitability.
