Wise Medical Center Organizational Design

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Table of Contents

Introduction
Information Technology
Competitive Advantage
Information Technology Competence
Information Technology Competence and a Firm’s Competitive Advantage
Gaining Competitive Advantage by Use of IT in Customer Service
Conclusion
References

Introduction

According to Vargas, Hernandez & Bruque (2003), from the start of the computer era, a large number of studies have been conducted which have made a prediction of a number of positive effects that come up from the IT implementation.

Looking at it from the strategic perspective, information could have an effect on each of every competitive strategies presented by Porter, “whether it be cost leadership, differentiation or specialization in a market niche, or efficiency in activities involved in the value chain” (Vargas, Hernandez & Bruque, 2003, p.246).

In the course of the 1980s as well as in the 1990s, there was publication of several cases and articles in the professional press which made a prediction of a net increase in the business results of the business organizations that made an investment in the information technology (Vargas, Hernandez & Bruque, 2003).

Basing on most recent findings a big portion of the positive effects of information technology on business results tends to be inherent in the fact that technology boosted organizational changes like restructuring into “interdisciplinary workshops, an increase in decision making autonomy, and a support for worker training” (Brynjolfsson & Hit, 2000, p.25).

In addition, there has been identifying a number of human and management factors that offer a complementary effect together with technology, such a perception is in the line with the so-called “strategic necessity hypothesis by which IT is a necessary but not sufficient factor in improving competitive position” (Vargas, Hernandez & Bruque, p.246).

However, the link between information technology and competitive advantage goes on to be greatly argued over. Most of the studies that were conducted earlier were carried out on the basis of the stock market results evolution of the companies that heavily utilized information technology, so that they could not feel the effect of fluctuations in the market (Vargas, Hernandez & Bruque, 2003, 246).

Such companies realized a strong rise in their worth in the last decade but eventually suffered an abrupt and sharp change tendency (Lee, 2001).

However, in the current day, business organisations can be in a position to realize sustainable competitive advantage if they use IT in the most suitable way in dealing with business requirements. These organisations have to be aware of the way to apply IT in their own organizational activities as well as processes. Such awareness is very essential to the success of the organisation.

According to Talebnejad (2008), evidence that has been presented by studies that were conducted in the recent times indicates that implementing successful business strategies by making use of IT has contributed to the improvement of the efficiency and effectiveness of the organisations.

He points out that in the year 2004, the relation between the investment in IT and the sales performance of five hundred big firms in the U.S were studied (Talebnejad, 2008). Following this study, it was indicated that a direct positive relationship between the amount of money invested and the performance of sales of these firms existed (Talebnejad, 2008).

In another survey that involved the top managers of several companies in the U.S indicated that about 80 percent of the managers that were contacted held a belief that information technology played a very important role in the success of the organisation.

This paper is going to look in detail at information technology as an element of competitive advantage for business organisations. The ‘Information technology’ and ‘Competitive advantage’ concepts are first of all going to be looked at and this will be followed by a comprehensive discussion of information technology in relation to achieving competitive advantage by business organizations across the world. The paper will end with a conclusion in which the summary of the discussion will be given.

Information Technology

According to Talebnejad (2008), “characteristics of the information era have led us to a new set of technologies called ‘information technology’ or IT. Information technology or IT is a sequence of various implements that encompass information networks, software, hardware, workstations, information theories and artificial intelligence that utilize various information forms as “a systematic process to carry out activities” (Talebnejad, 2008, p.60).

The attention to this kind of technology started to be paid in the course of the 1980s and its initial organizational functions lay in the automating the productive as well as official jobs and carrying out routine tasks. Making use of the intra-organizational networks as well as internet, IT has brought in improvement in intra-organizational communications via the extranet and intranet communications (Talebnejad, 2008).

IT has contributed to realization of fast, accurate and large-scaled information publication in different regions at all times. Information circulation having these characteristics has led to reduced costs, “saving in localities, expedition in doing activities and thus increasing profitability and efficiency and effectiveness of technology” (Talebnejad, 2008, p.60). Swift IT development resulted in the focus of the special attention being put on informational knowledge (Talebnejad, 2008).

Competitive Advantage

According to Talebnejad (2008), competitive advantage is the focus of strategy and the fundamental concept in the field of strategic management. This form of advantage is set up by engaging in the differentiating of a firm in a special business in comparison to its competitors in the point of view of the stakeholders, especially the clients.

The customer has to have it in mind that the firm under consideration is in a position to engage in the creation of more value for him or her as compared to the other competitors. In a situation where a firm does not have a competitive advantage, it can not survive in the long run. The bigger the difference between the firm and its competitors, the higher the sustainability and strength of its competitive advantage will be.

Competitive advantage is a product and sustainability in a situation that is brought about ‘after the failure of imitative and patterning attempts of the factor causing the competitive advantage” (Talebnejad, 2008, p.61). A company can not buy sustainable competitive advantage from any particular market but rather, it has to acquire it through engaging in the creation of superior capability in the managerial activities.

Barney (1991) points out that “valuable, rare, imperfectly imitable, and imperfectly substitutable resources could generate sustainable competitive advantage for the firm with the pre-requisite of heterogeneity and imperfectly mobile of resources among competing firms” (p.99).

Developing more on this notion, Peteraf (1993) has directed attention to rest on “heterogeneity, ex ante limits to competition, ex post limits to competition and imperfectly mobile as the characteristics for strategic resources in creating sustainable competitive advantage for a business organization” (Peteraf, 1993, p.179).

The fame of the ‘competitive advantage’ concept has been boosted by Porter’s ideas (Jones, 2003) before the creation of Peteraf’s and Barney’s framework. The notion of ‘competitive advantage’ basically concerns measuring of the success of a business organization in relation to its competitors. The measurement of relative achievement of a business organisation could be carried out by ‘economic value’ which that organisation is in a position to generate (Peteraf & Barney, 2003).

The ‘economic value’ refers to the differences that exist between the perceived benefits of the buyers and the “economic cost of enterprise through provision of goods and servcies” (Peteraf & Barney, 2003, p.310). For the reason that the focus of economic value is on giving an explanation for relative success of the firm, this implies that there is no need for the firm to be the best player within the industry for it to gain competitive advantage (Peteraf & Barney, 2003).

In agreement to Porter’s notion, CA within the context of resource based perspective can be realized through “lower cost or differentiation” (Ong & Hishamuddin, 2008 p.65).

It is pointed out that where lower cost is coming out from a firm’s efficiency in the production of goods and services goes in line with the market competitive rate of pricing, then there can be transferring of the lower cost into superior return and on the other hand; differentiation advantage is where a firm produced superior or unique value goods or services that command premium price within the market, goes in line with “competitive cost of production then premium price can be transferred into superior return” (Ong & Hishamuddin, 2008, p.63).

According to Xavier (1997), Porter pointed out that competitive advantage springs from the value a business organisation is in a position to generate for its customers, which is more than the cost incurred in its creation. Value refers to what the customers have a willingness to pay for what is offered by a firm. Higher value comes out from charging the prices that are below those offered by the rivals for the same utility, or offering distinctive benefits which are more than compensate a higher price, referred to as differentiation.

The measurement of value is carried out by the overall value, and a business organisation is gainful where the value it commands is more than the costs that are involved in the creation of the goods and services. It is quite imperative to utilize value, rather than cost, for carrying out the analysis of the competitive advantage since business organisations usually increase their costs intentionally so that they can obtain a price premium through differentiation (Peteraf & Barney, 2003).

Putting into consideration the ideas presented by Porter, some researchers have presented discussions about a number of ways for realizing differentiation as well as cost leadership. For instance, Garvin (1988), in the study, conducted in which he carried out a comparison between the Japanese and the U.S companies, made a conclusion that quality was a very vital factor for the Japanese companies in attaining competitive advantage in the global markets.

In fact, as pointed out by Xavier (1997), in the course of the 1980s, the search for competitive advantage was greatly given shape by the emphasis on quality as being a source of differentiation. This was a consequence of the stiff competitive business environment that came up from the oil crisis (Xavier, 1998).

However, in the course of the late 1980s, researchers such as Stalk (1988) and Keen (1988) came to notice a shift in the relative significance of the competitive advantage sources. These researchers presented an argument that because of the emphasis in quality in the course of the past years, the leading organisations had already attained such high levels of “product conformance” to the extent that they had reached a point where quality was not an issue any longer, “although still an important priority” (Gerwin, 1996, p.400).

Considering the empirical evidence which these researchers had thoughts about as being long-lasting and reliable, they made a prediction that the source of competitive advantage that would follow would be time. In essence, the business organisations seeking competitive advantage have to be in a position to engage in the reduction of the lead times to substantial levels at different value chain points. Consequently, flexibility would turn out to be a key element of competitive advantage.

Flexibility is dependent on how well the integration of different activities is carried out within organizations and how well information exchange is carried out (Xavier, 1998). Therefore, increasing of flexibility can be carried by improving the communication channels through the development of information systems. It is pointed out that modern information technology can be utilized in reducing communication costs and can also be used to bring improvement in the quality and speed of processing the information.

Information Technology Competence

Information technology has received remarkable research attention beginning from the last several years. Starting from the middle of the 1980s, IT began to bring in a strategic impact (Bassellier, Benbasat & Reich, 2003). Following the pattern, the researchers commenced on putting focus on the integration between IT experts and managers of business organizations in creating IT capability and effective use (Ong & Hishamuddin, 2008).

A larger number of the researchers conducting studies in the field of “resource-based view” pointed out the need to have integration of human factor with IT in generating sustainable competitive advantage (Ong & Hishamuddin, 2008). The focus of the discussion here would be on the “IT competence of the management personnel in the firm” (Ong & Hishamuddin, 2008, p.63).

For one to be an instrument in the integration of IT with the organisation in an effective manner, the person must have adequate IT capability. On the other hand, knowledge alone can not be enough.

Being applicable to the individual level, an agent who is active has to have knowledge in IT and also have the willingness to use IT in the day to day operations, and be offered IT facilities as well as IT supports. These “co-specialized resources will be indicated in terms of the ability to understand and utilize the IT for the benefit of the firm” (Tippins and Sohi, 2003, p.74).

The IT knowledge refers to the level of technical knowledge on objects like the computer-based systems. There can be conversion of such knowledge into competence when it is effectively utilized. On the other hand, information operations give an indication of the use of IT in the day to day operations of a business organisation.

But on the other hand, there can be information technology knowledge as well as information technology operations in case the business organisation prepares a stage for the information technology. Therefore, as pointed out by Tippins and Sohi (2003), “information technology objects refer to availability of hardware, software, and personnel to support the performance of information technology operations” (p.750).

Having IT knowledge, as well as IT operations and IT objects give an indication of the capability of the firm to engage in acquiring, deploying and leveraging IT functionality in combination with other resources in order to give shape as well as support to the business procedures in ways of having value addition (Ong & Hishamuddin, 2008).

There are those people who engage in researching that have encompassed experience as well as education in IT as being a portion of IT competence. Bassellier et al (2003) give a definition for the experience in IT as “the activities taking place in a particular organization which includes experience in information technology projects and experience in the management of information technology” (p.320).

According to UcBasaran, Wright, and Westhead (2003), experience will offer skills, resources as well as competence for the future. For that reason, this implies that experience in IT is expected to facilitate the supply of knowledge in IT, to enable individuals to have more eagerness to use and carry out investment in the IT amenities.

Information Technology Competence and a Firm’s Competitive Advantage

According to Ong & Hishamuddin (2008), “following the frameworks in resource-based view, in order to achieve sustainable competitive advantage, a firm must possess a resource that is valuable, rare, imperfectly imitable, and imperfectly substitutable or heterogeneity, imperfectly immobile, ex ante limits to competition and ex post limits to competition (Ong & Hishamuddin, 2008, p.64).

Thus, researchers in ‘resource-based view’ have no general agreement among them that IT alone can give sustainable competitive advantage for a business organization. Bharadwaj (2000) points out that sustainable competitive advantage can be realized through the IT facilities for the reason that these facilities are usually formed by multifaceted and hard to comprehend and imitate set of workings, but this argument seems to have overlooked the subject of value.

Sense that can be seen here is that even if a business organization had the most refined IT facilities which are not easy to be imitated and substituted by the rivals, having no workforce that is well-informed in the organization and who are willing to use these facilities, these facilities can not produce any value for the organization. It is clear that in order to attain sustainable competitive advantage, there must be co-existence of the availability of facilities and the readiness and capacity to make use of them.

The practical as well as hypothetical investigations that were formerly carried out have given an indication of dependable results about the impact of having integration between IT capability and sustainable competitive advantage of a business organisation.

For instance, according to empirical analysis carried out by Mata et al. (1995), and Powell & Dent-Micallef (1997), on business as well as human and technology resources, only matching of human resources on IT was recognized to be remarkably positively linked to IT as well as general performance, the level of profit and increase in sales. On the other hand, Tippins and Sohi established that organizational learning “intervene the association between firm’s information technology competence and performance” (Tippins & Sohi, 2003, p.750).

Substantiation has been made by the analysis of literature and reasonable evaluation that a business organization is in a position to realize sustainable competitive advantage through combination of knowledge and utilization of the IT objects. Such combination would generate important and exceptional resources for the business organisation because not all business organizations are in a position to take pleasure in the helpfulness and efficiency that is brought in by information technology.

Since this combination may be informal ambiguity that is barely comprehensible, the competitors can scarcely duplicate it. Even if rivals might be in a position to engage in the replacement of the co-specialised set of IT capability with similar IT applications, this replacement would not imply that it is not possible for the business organization to achieve sustainable competitive advantage (Barney, 1991).

According to Vargas, Hernandez & Bruque (2003), a number of theoretical approaches in the business administration disciple have attempted to give an explanation to the link between information technology, value creation and maintaining competitive advantage. Among these, the industrial organization, transaction cost economics, the resource-based view and the “inter-organisational network approach” can be pointed out (Vargas, Hernandez & Bruque, 2003).

Looking at the industrial organisational approach, information technology has an effect on the services that are offered in the marketplace, the industry structure, “competitive forces and production economies, improving the efficiency of the activities of the value chain” (Vargas, Hernandez & Bruque, 2003, p.246). From the strategic point of view, information technology may boost gaining advantages in focusing, cost leadership or differentiation.

Considering the transaction cost economics, information technology could assist in reducing the coordination cost between the activities and risks that are intrinsic to the transaction, in the manner, making it possible for the creation of value for the customer, which make up a foundation on which to improve the competitive advantage of a business organisation (Vargas, Hernandez & Bruque, 2003).

But, on the other hand, the ‘transaction cost economics’ only considers those transactions which occur between hierarchies and the market, leaving out other relationships like those which appear in “networks formed by various organisations” (Vargas, Hernandez & Bruque, 2003, p.247).

It is pointed out that the ‘inter-organisational networks approach’ itself makes an attempt to study this question by finding out the formulas by which the network can generate advantages for those participating; advantages in regard to technology, access speed to information and markets (Vargas, Hernandez & Bruque, 2003). In such a manner, the economies of scale can be created, which offer benefits to the business organisation which make up the network (Vargas, Hernandez & Bruque, 2003).

On the other hand, the resource based view has given suggestion of fresh ideas that assist to give an explanation to the information technology function as a strategic tool within the business organisation. In line with this approach, the business elements which are susceptible of turning out to be strategic resources like information technology might be of great value, rare, and hard to imitate (Vargas, Hernandez & Bruque, 2003).

A fourth condition was added by Barney (1996), which consists of the element being complementary to other elements or organisation’s resources. This leads to the synergy or complementary effects which would give an explanation to improvements in the “competitive position that are more than appropriate when the resources operate jointly, compared to when they operate separately” (Vargas, Hernandez & Bruque, 2003, p.248).

Carrying out the application of the assumptions which are made by the resource-based view, information technology when considered separately may comprise of a value-generating resource; in its most advanced form, it may be rare, but it can barely be referred to as hard to imitate (Vargas, Hernandez & Bruque, 2003). Furthermore, because of the current day rapid distribution of technological innovations, information technology would be closer to the commodity concept than to the idea of the differentiating element. On the other hand, when information technology serves in combination with other management or human elements, it can create a positive synergy effect which the rival firms find very hard to substitute or imitate (Keen, 1993).

However, the central question as posed by Vargas, Hernandez & Bruque (2003) is: “what are the factors that produce a positive combinatorial effect alongside information technology?” (p.248). Attempts to give an answer to this question was made by a number of researchers.

For instance, Neo (1988) made identification of ten factors and among these are such factors as “the existence of fluid communication between management and technical staff, harmony between a firm’s strategic planning and IT, and previous experience in technological development” (Neo, 1988, p.192).

Moreover, Kettinger et al (1994) made identification of the upper commitment of management to information technology implementation as well as the existence of a powerful learning effect linked to technological development as being the key elements.

In addition, Mata, Fuerst & Barney (1995) identified the executives’ capability to conceive, set up and exploit the applications that are based on information technology. Powell & Dent-Micallef (1997) presented nonexistence of conflict, a fluid internal communication, organisational flexibility and particular management techniques as being the key elements. In summary, there is a possibility to engage in dividing resources complementary to information technology in to two categories.

In the first category, these would be elements that are related to the human factor within the organisation and these may include “existence of an open and receptive climate in the organization, the fluidity of communication between management and technical staff, and the leadership among upper management of the implementation of new technologies” (Vargas, Hernandez & Bruque, 2003, p.248).

In the other category would be the resources which are related to the business administration techniques like the utilisation of inter-departmental work groups, a commitment to training in the new technologies and also the joint planning of “business and technology” (Vargas, Hernandez & Bruque, 2003, p.248).

In addition, and referring to the work presented by Ross et al (1996), it has been noted that a third component is linked to the way organizing of technology is carried out within the business organisation (Vargas, Hernandez & Bruque, 2003).

These researchers point out that this body of resources is linked to the existence of “an unmistakable design of the technological infrastructure, which allows the distribution of information between the different departments and functional areas, and to the existence of standard procedures for the manipulation and management of data” (Vargas, Hernandez & Bruque, 2003, p.248).

Gaining Competitive Advantage by Use of IT in Customer Service

According to Domegan (1996), “within the conceptual and methodological domain marketing, the issue of attracting and retaining customers is of concern to managers “(p.52). The associated question of how to bring improvement to customer service, its range and measurement as well as its management, has received attention in the last few years. In practical terms, customer service has shifted from “disruptive and reactive activity of the 1970s to proactive management task of the 1990s” (Lalonde et al, 1988, p.5).

Some evidence presented in the recent past indicates that bringing improvement in customer service quality is key to realizing a competitive advantage; “a good product is necessary but not sufficient to compete in today’s marketplace” (Barnes, 1993, p.47). As a direct consequence, the business organizations are engaging in active cultivation of customer service as an asset that is valuable in differentiating strategically their goods as well as servcies (Domegan, 1996, p.52).

In line with this, remarkable wide-reaching developments have been taking place in the IT field. The strategic utilisation of IT, as being part of the corporate strategy of a company, can bring about remarkable competitive advantages. IT is a strategic resource which makes it possible to realize great changes in competitive behavior as well as in customer service and marketing.

In the actual sense, IT makes it possible for a business organisation to attain competitive advantages. IT is a resource that creates a connection between ‘marketing exploitation’ and ‘marketing orientation’ of a firm, which apparently has to be controlled and managed in the right way (Domegan, 1996).

Domegan (1996) points out that one of the main contributors to the marketing success in the future, for both large and small business organisations, which will ensure facilitation of the utilization and management of information. By making use of information technology, business organisations are engaging in the reengineering of the manner in which they carry out their business and also engage in the marketing of the goods and servcies.

The marketing functions lend themselves in an easy way to automation and IT (Mertal, 1989). Most of the marketing functions require a business organization to engage in constant monitoring of information from the environments and the business in which it takes part. Information like this gives room for the company to carry out adjustment of its offering to match with the needs of the customer at a profit.

For the reason that information technology is as well about information, it can and has to facilitate marketing management as well as customer service. In the actual sense, IT can serve as a strong catalyst for bringing improvement and advancement in customer service. Barnes (1993) pointed out:

“uccessful marketing practice must tackle the dual challenges of marketing information and customer service. Marketers will have to place their emphasis on obtaining accurate and timely information about customers and markets and on providing precisely the type and level of service that customers want” (Barnes, 1993, p.45).

Business organizations have to recognize the need to set up long-term relationships with their clients in case they have to survive. Marketing technology management as well as customer service is essential and critical to business organizations, just as customers who are loyal, “critical to long-term profitability are as important, if not more so, as attracting new customers” (Reichheld & Sasser, 1990, p.105).

However, a difference between theory and practice is clearly seen, exemplified by the approach taken to customer service and the linked use of IT, particularly among firms that are smaller in size. The information regarding the ever changing customer needs and the shifting competitive responses, in general terms, exists in pockets all through a larger number of business organisations. However, mainly, “such information is either effectively or efficiently utilized by organisations, thereby decreasing its strategic potential” (Oasis, 1989, p.2).

In addition, despite the fact that technology is facilitating transformation of the marketing environment, hence, putting emphasis on the crucial need for improved customer service, a large number of business organisations remain to be ignorant about the tactical as well as strategic benefits brought in by IT in marketing as well as in customer service.

Organisations like these, in case they do not adjust to the challenging and ever changing marketing world, encounter grave losses and competitive disadvantages (Earl, 1989). IT and customer service, in relative terms, are new strategic tools for business organisations. The concerns of the two are on the information deployment. Both of these concepts are related to setting up and maintaining long-term profitable relationships between the seller and the buyer.

Way back in 1976, a study conducted by Lalonde and Zinszer indicated that customer service sophistication is dependent on the communications systems as well as on the related information orientation within a business organisation. It was pointed out that in the absence of good control information flow in an organisation and between the organisation and its customers, “customer service function is usually relegated to reporting performance level statistics and reacting to special problems (Lalonde & Zinszer, 1976 p.14).

This result was further validated by Lambert and Lewis (1981) in their findings of the study they conducted. However, the notion of linking IT and customer service remained to be widely prevailing up to the 1990s when it was suggested by Keen (1991) that within the 1990s business environment, “customer service, operations, products, marketing strategies and distribution are heavily, or sometimes even entirely dependent on information technology” (Keen, 1991, p.23).

Here, the main message is very clear. It is indicated that it can be utilized to bring improvement in customer service, although the IT use depends on the knowledge about customer service, marketing as well as on information orientation of the business organisation under consideration.

Indeed, in the current day, the IT concept is being considered as a business tool that has the capability to provide competitive advantages to the business organisations if harnessed in the correct way. However, as pointed out by Domegan (1996), the strategic utilisations of IT “are only one of the three ways in which IT can be deployed as business weapons; it can also be used in routine data processing and internal operations efficiency” (p.56).

Bringing together the two concepts (IT and customer service), it is found out there is no specific consideration of the process of adoption in a specific way (Domegan, 1996). Yet, it is clear, basing on the documented materials, that there are two likely ways of evaluating the development of the IT utilisation in customer service. First, there exists the accepted IT development path usually defined as “paperwork/routine activities, middle management operations/internal processes, and strategic purposes” (Domegan, 1996, p.57).

Basing on this point of view, a larger number of firms are making use of IT in customer service to handle the everyday paperwork activities like accurate billing (Domegan, 1996). The use like this either raises the level of efficiency of activities or brings down the level of costs. Moreover, there is utilisation of IT in the internal management operations which as well brings about higher internal efficiency and reduced costs.

Conclusion

Each and every business organisation is seeking to achieve a competitive advantage over the competitors. The organisations are aware of the fact that lack of having a competitive advantage is a big hindrance to business survival. The companies are using the available tools to achieve the competitive advantages.

One of the most important current tools that a company can use in the present day to achieve a competitive advantage is information technology. The organisations can be able to achieve sustainable competitive advantage if they make use information technology in the most appropriate ways possible. The business managers need to have adequate knowledge about how to apply information technology in their own organizational activities as well as processes. Such knowledge is very important to the success of the organisation.

Over time, the subject of Information technology has received significant research attention. Starting from the last two decades or so, information technology began to bring in a strategic impact. Following the tendency, the researchers who are concerned about this field began putting focus on the integration between IT experts and administrators of business organisations in creating IT capability and effective use.

A larger number of the researchers in the field of RBV gave a suggestion of the necessity of having incorporation of human factor with IT in producing sustainable competitive advantage. For a business organization to achieve sustainable competitive advantage, it must have a resource that is valuable, rare, imperfectly imitable, and imperfectly substitutable or heterogeneity, imperfectly immobile, ex ante limits to competition and ex post limits to competition. This is achieved by using information technology.

It is also important to point out that a large number of the marketing functions require a business organization to engage in constant monitoring of information from the environments and the business in which it takes part. Such information makes it possible for the business organization to engage in adjusting its offering to match with the needs of the client, but still gaining a profit. Because IT is also about information, it can facilitate marketing management as well as customer service.

In the actual sense, IT can serve as a strong catalyst for bringing improvement and advancement in customer service. Successful marketing practice has to deal with the dual challenges of marketing information and customer service. Those who engage in marketing will have to put their focus on getting accurate and timely information about customers and markets and on providing accurately the type and level of service that customers want.

Business organizations have to recognize the need to set up long-term relationships with their clients in case they have to survive. Customers long to have good service from the firms from which they purchase their goods and services.

By business organisations recognizing this and offering better customer service than the competitors, through using information technology will enable them to stay ahead of the competition. Therefore, it is very important for the business organisations to come up with the best strategies that will enable them to use information technology effectively in order to achieve sustainable competitive advantage over their competitors.

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