The paper “ The Digital Transformation of Traditional Businesses” is a worthy example of an assignment on business. From Andal-Ancion, Cartwright, and Yip’ s (2003) article, it is clear that businesses that offer services and low-involvement consumer items can use NIT successfully. Additionally, businesses whose product or service offers can be delivered electronically can use NIT effectively. Moreover, businesses that need to customize product or service offers to fit specific customer needs can use NIT. Businesses that can benefit from aggregating different processes and practices to make it easier for customers to access a bundled package instead of accessing related services from different places can also make use of NIT.
According to the authors, companies that can benefit from NIT also include those that can benefit from network effects while conducting business. Businesses that can standardize and synchronize specific business processes can also benefit from NIT. 2. Illustrate the reasons for the drivers of NIT that the authors have identified in the study (6 Marks)The authors have identified 10 drivers of NIT with the first being electronic deliverability. While a realtor may for example have a website where all the properties on sale are displayed and described, online transactions cannot happen unless the customer physically inspects and approves a particular property.
On the other hand, movie or airline tickets are easily sold online, hence meaning that movie companies and airlines are better able to use NIT when compared to real estate companies. Andal-Ancion et al. (2003, p. 36) have further identified information intensity as the second NIT driver. The authors’ argument could be interpreted to mean that products with less intense information will not benefit from NIT.
For example, a candy vendor does not have much information to pass to the consumer and as such, would be less likely to use NIT. However, a car dealer would be interested in using NIT to transmit information to possible buyers, even though the same buyers would like to physically inspect and test-drive the car before purchase.
Andal-Ancion, A., Cartwright, P.A., & Yip, G.S. (2003). The digital transformation of traditional businesses. MIT Sloan Management Review, 44(4), 34-41.
Tucker, R. (2010). Disintermediation: The disruption to come for education 2.0. Radar. Retrieved 22 July 2015, from http://radar.oreilly.com/2010/05/disintermediation-risks-trends.html