Abstract
How and when does IT contribute to the performance of the firm? Does IT provide competitive advantage? Why is IT so difficult to understand and manage? Does it have to be that way?
This chapter provides a condensed discussion of some key mechanisms in the dynamic relationship between IT, business performance and competitive advantage. It does so by employing a conceptual view that link IT resources, business processes and organizational capabilities. An underlying theme of the chapter is that managers need to have a rich understanding of how IT resources are transformed into business performance in order to adequately manage IT and integrate IT issues into strategic processes and governance activities. Knowing that IT contributes to business performance is simply not enough, because the complexity inherent in the task of transforming IT into business performance is not disappearing anytime soon. The discussion provided in this chapter is intended to contribute to a richer understanding of the transformation process.