Page 248 - SBL Integrated Workbook STUDENT 2018

Chapter 19

1.2 Industry impact

Porter suggests 3 ways IS/IT can affect industries

 New businesses might become possible. For example, auction sites and photo-
album sites.

 The industry structure can be changed. For example, in the book industry it can
be argued that the large book publishers have less power because books can
be self-published on the internet.

 IS/IT can provide an organisation with competitive advantage by providing new
ways of operating. For example, supermarkets have been able to greatly reduce
purchasing costs by linking IT systems with those of suppliers (this is known as
e-procurement).

Illustrations and further practice

Now read Illustration 1 and try TYU question 1.

242