Implementing New Information Technologies Can Bring The...

Next point that I feel needs to be evaluated is â€Å"Get to the market first.† Being the first one to adopt and apply new information technologies can bring the biggest positive effect to a company. Bill Gates states that, whoever is first to use digital information to operate business, has a great chance of putting company ahead of its competitors. It changes the methods of handling projects as well. Building specialized groups of employees to work on specific tasks improves productivity and also the speed of turnover. In some cases, cultural confrontations are observed, however, consumers realize and tolerate the necessity to move quickly to fulfill demands. Gates points out Intel’s new communication system that creates a database of†¦show more content†¦It sets up the first major commercial Internet site to develop online banking and becomes the main system of accessing Internet. It eventually contributes to retain customer loyalty. In my opinion, the decision of getting first to market comes with great risk. That is to say, it requires a large amount of investment and time. It also affects revenue and in most cases, it puts company’s security in danger. Moreover, the idea of first movers are the winners, is not always true. Second movers can actually benefit more than the first movers. We can look at online bookstore giant amazon.com, as an example. Before Amazon was launched in 1995, there was an already established large online bookstore books.com by Book Stacks unlimited1. However, amazon overcame the books.com and became the biggest on the market in a short period. The reason is, the first movers have to spend more time and money on research and development, also educate the public about the new scheme. Second movers can learn from the mistakes of the first movers and avoid excessive cost on RD and public education. The next point that should be addressed is â€Å"Middle man must add value†. According to Gates, Internet and technology change everything, including the role of middleman businesses. Indeed, disintermediation is unavoidable; unless they add value to their goods and services they transfer. The main problem with middleman job is anybody can easily do it. It does not