The Information Systems Strategy Triangle

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The Information Systems Strategy Triangle

The Information Systems Strategy Triangle

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However, the Porter model was developed at a time when competitive advantage was sustainable because the rate of change in any given industry was relatively slow and manageable. Since the late 1980s, when this frame- work was at the height of its popularity, newer models have been developed to take into account the increasing turbulence and velocity of the marketplace. Organizations need to be able to respond instantly and change rapidly, which requires dynamic structures and processes. One example of this type of approach is the hypercompetition framework. Discussions of hypercompetition take a perspective different from that of the previous framework. Por- ter’s framework focuses on creating competitive advantage in relatively stable markets, whereas hypercompetition frameworks suggest that the speed and aggressiveness of the moves and countermoves in a highly competitive and
8 Scott Berinato, “Room for Two,” (May 15, 2002), 9‐wyman/global/en/2014/nov/Airline_Economic_Analysis_Screen_OW_Nov_2014.pdf (accessed March 23, 2015).

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24 The Information Systems Strategy Triangle

turbulent market create an environment in which advantages are rapidly created and eroded. In a hypercompetitive market, trying to sustain a specific competitive advantage can be a deadly distraction because the environment and the marketplace change rapidly. To manage the rapid speed of change, firms value agility and focus on quickly adjusting their organizational resources to gain competitive advantage. Successful concepts in hypercompetitive markets include dynamic capabilities, creative destruction, and blue ocean strategy.10

Dynamic capabilities are means of orchestrating a firm’s resources in the face of turbulent environments. In particular, the dynamic capabilities framework focuses on the ways a firm can integrate, build, and reconfigure internal and external capabilities, or abilities, to address rapidly changing environments. These capabilities are built rather than bought. They are embedded in firm‐specific routines, processes, and asset positions. Thus, they are difficult for rivals to imitate. In sum, they help determine the speed and degree to which the firm can marshal and align its resources and competences to match the opportunities and requirements of the business environment.11

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