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The business sector produces products and services for profit. Information technology describes any technology used to create, process and disseminate information that is critical to business performance. Information technology is important to the business sector as a management tool to optimize the processing of information to produce goods and services for profit. No matter the size of your enterprise, technology has both tangible and intangible benefits that will help you make money and produce the results your customers demand. Technological infrastructure affects the culture, efficiency and relationships of a business. It also affects the security of confidential information and trade advantages. The information revolution is sweeping through economy. No company can escape its effects. Dramatic reductions in the cost of obtaining, processing, and transmitting information are changing the way we do business. Investments in information systems technology can result in the development of new products, services, and processes.

This can :

  • Create new business opportunities
  • Enable a firm to enter new markets
  • Enable a firm to enter into new market segments of existing markets.

How can the preceding competitive strategy concepts be applied to the strategic role of information systems? Information technology can be used to implement a variety of competitive strategies. These include the five basic competitive strategies (differentiation, cost, innovation, growth, alliance), as well as other ways that companies can use information systems strategically to gain a competitive edge. For example:

Lower Costs
Promote Growth
Develop Alliances
Improve quality and efficiency
Build an IT platform
Other strategies

Good News!

The UAE is the most attractive Information Technology market in the Middle East and Africa region, thanks to its economic diversification efforts, according to a new Fitch Solutions report. The UAE, second biggest economy in the Arab world, has scored 68.4 points out of a potential 100 points in a Fitch index.

The UAE’s IT market remains buoyed by economic diversification efforts mapped out in the country’s Vision 2021 strategy as well as with the demand from the enterprise, retail and construction sectors ahead of Expo 2020 Dubai.

Rising oil prices and ongoing economic diversification initiatives, pursued by regional governments, have supported the IT industry growth in MEA.

The report added despite downward revisions to some markets' industry and country risk scores, the region's IT risk/reward index has remained relatively stable. Smart city initiatives in the region are attracting huge chunk of IT investments. Technology investments, related to smart city initiatives across MEA, is predicted to reach $2.7 billion in 2022, with Dubai and Riyadh leading the way, according to Massachusetts-based researcher International Data Corporation.

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