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Improvement Project of Science Construction CS

Abstract Science Construction’s business is in planning, developing and building road projects. The major of its clients are municipalities, city governments, and other public sector entities. While the bankruptcy rates for these clients is very low, when economic downturns happen, their ability to pay in a timely fashion also suffers. This leads to businesses such as Science Construction needing to take on additional debt and to find creative methods in order to stay afloat during times of recession. Methods such as selling accounts receivables at discounted rates and taking larger lines of credit through banks and other lending institutions are some of the ways organizations can remain viable when their cash inflows have turned into a trickle. Science Construction is asking the Turkish Courts to postpone their bankruptcy proceedings for a year while they attempt to restructure. Through this, suggestions such as forcing shareholders to pay their debt to the organization, gaining credi...
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Does IT provide any competitive advantage?



In the increasingly competitive business world, many organizations tend to neglect what the value of human capital management can be in building a competitive advantage. To be more competitive, a company must create value for its future customers using new technologies, and other gadgets, and then maintain that value through a dynamic, motivated, competent team, full of innovating ideas.
According to Jurevicius (2013), "The resource-based view (RBV) is a model that sees resources as key to superior firm performance. If a resource exhibits VRIO attributes, the resource enables the firm to gain and sustain competitive advantage".

As per Eric D. Brown (2007),  "Out of the many theories of organizational behavior, one aligns itself well with the human capital view of people within an organization. "
He is explaining that the theory, called the Resource Based View (RBV), suggests that the method in which resources are applied within a firm can create a competitive advantage and According to him, the resource based view of firms is based on two main assumptions: resource diversity and resource immobility (Brown, 2007).
- Resource diversity (also called resource heterogeneity) pertains to whether a firm owns a resource or capability that is also owned by numerous other competing firms, then that resource cannot provide a competitive advantage. (Brown, 2007)
An example that could illustrate this would be a company that makes the decision to implement a new computer product in order to be more competitive in the market. This new product could provide a competitive advantage to the company if the product has been customized to the company's processes and procedures to ensure that no other competing company has the same functionality. On the other hand, if competing companies have similar functionality, this new IT product will not pass the "diversity of resources" test, so it will not be able to provide a competitive advantage.
- Resource immobility refers to a resource that is difficult to obtain by competitors because the cost of developing, acquiring or using that resource is too high. (Brown, 2007)
An example that might illustrate the immobility of resources would be a company trying to decide whether to buy a "standard" inventory control and management system or to have one built specifically for its needs, specific performance indicators related to his vision. If the company buys a standard system, then there will be no added value in improving the competitive situation. On the other hand, if the company chooses a customized solution, which provides specific features that they implement only, assuming that the same functionality is not available in other products, it will have a competitive advantage.

In his 2003's article "IT Does not Matter", Nicholas Carr makes a publication showing that IT has become ubiquitous and cheap and no longer a competitive advantage for a company. According to him, it is possible to ignore the computer because its strategic importance of computing has been reduced. According to him, it would be better to think before investing in IT as a factor of differentiation because a single company can not rely on its use to differentiate its competitors.

In my opinion, however, it would be necessary for companies to take into account Nicholas Carr's assertions in order to make efficient use of information technology, as improper use of these computer tools would cause a lot of money to be spent without generating profits. Considering the ultimate goal of informatics and information technology as a way to create a competitive advantage without involving business processes, skills, and innovative human resources will not allow companies to better differentiate in the marketplace.
Moreover, the importance of IT in companies is no longer to be demonstrated, but to be truly an advantage against the competition, computer systems should not be "standard", but rather customized. according to the processes and procedures of the companies, with their own performance indicator, making them unique and tailored according to the strategy of the company.


References
- Jurevicius, O. (2013).Resource-Based View. Strategic Management Insight
Retrieved from https://www.strategicmanagementinsight.com/topics/resource-based-view.html
- Brown, E. D. (2007).Competitive Advantage and the Resource Based View of the Firm
Retrieved from https://ericbrown.com/competitive-advantage-and-the-resource-based-view-of-the-firm.htm
- Carr, N. (2003). IT doesn’t matter. Harvard Business Review,
Retrieved from https://hbr.org/2003/05/it-doesnt-matter
- Vennamaneni, M. (2016). IT doesn’t matter — Critique
Retrieved from https://medium.com/@mounicav/it-doesn-t-matter-critique-b19687fee320

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