Role and impact of I.T.
The way in which I.T. can deliver or support each market-driving capability.

Current investment portfolio
The prioritized investment opportunities, both I.T.-centric and non-I.T.- related, about which the corporation must make decisions.

I.T. cost and investment profile
The detailed breakdown of the corporation's budget for I.T., including ongoing costs and one-time investments.

Effect of IT on Organizations

• Emphasis is shifting toward the potential value delivered by I.T. outside the corporation. Most corporations have completed significant E.R.P. software installations and network infrastructure projects as major improvements to their internal I.T. operations. We are now seeing a shift in I.T. projects to external opportunities that engage customers, suppliers and alliance partners as part of the corporation's "extended enterprise".

• Internet capabilities are affecting strategy, competitive positioning and business models of many corporations. The Internet has presented new opportunities and challenges for corporations to build competitive advantage. Competition and customer needs will continue to drive demand as corporations begin to reposition their capabilities to take advantage of new channels, new cost structures and new business models, most of which did not exist two years ago. The promise of electronic commerce also presents additional challenges in restructuring pieces of the existing order management, customer and supplier capabilities and their supporting infrastructure.

  
  Fig 2. Climbing the staircase of value

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* Contributed by -
Siddharth Mohan Patnaik, B.Tech. (Electronics),
Ravulpathi Janaki, B.Tech. (Mechanical),
II Year, IIM Lucknow.