e-market place and prospects
...such as accurate information being too costly, or impossible to obtain. Stigler (1961) states that “information is a valuable resource: knowledge is power”(p.213) Therefore because information can determine actions, it is also a valuable economic factor, especially in the allocation of scarce economic resources, and the level of uncertainty that can ultimately determine utility levels (Nicholson, 1998) The famous Ronald Coase is renowned for his work on defining the nature of the firm. He saw the firm as a collection of contractual agreements among various parties. Using this theory, it is clear that the efficiency of firms depends on the ability of participants to find an effective way to minimise the transactions costs of creating a profitable entity. At the heart of the traditional approach to strategy lies the assumption that by applying a set of powerful analytical tools and information technology, executives can predict the future of any business accurately enough to allow them to choose a clear strategic direction. In relatively stable environments, this approach continues to work well. (Harvard Business Review) Unfortunately businesses today operate in a turbulent environment that no amount of highly specific information technology will allow them to predict the future. Output from information technology should serve as a guideline, not absolute as seen to be the case by many managers today. The Havard Business Review also argues that despite excuses about global competition and the impact of productivity-enhancing technology, most layoffs at large US companies have been the fault of senior managers who feel asleep at the wheel and missed the turnoff for the future. This stresses the importance of information technology in the modern organization. One of the most consistent patterns in business is the failure of leading companies to stay at the top of their industries when technology changes. E.g. IBM dominated the mainframe market but missed by...