Competitive advantage and the information technology industry

Abstract

In this article, Timo Koski sets the stage by defining more clearly what is meant by “high technology”, and points out that it is by no means synonymous with the electronics industry. He then relates corporate management, corporate strategy and competitive advantage to the information technology industry in Finland. This competitive advantage can be summarized in three aspects: technological ability, product market fit and resource market fit. The dynamics of the information technology industry are also explored, and found to run parallel with business and product life cycles and the globalisation process. The article concludes with the view that information technology, as a business, requires fast-moving and fast-reacting management. However, it is also inextricably linked to global issues, and is prevented from becoming too hectic by being part of long-term corporate management.