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3.6 Conclusion

This chapter has drawn attention to the role of ICT in enabling competitive advantage through the way it is used in a range of business processes and products. This is against a background of ICT being acquired on the basis of investment proposals justified on return on investment.

ICT also enables competitive advantage through its capacity to generate and apply knowledge and build firm level distinctive capabilities. Distinctiveness can be generated in design, in product development, production processes, in customer relationships and ongoing client service.

The interviews indicated that ICT has made an important contribution to productivity growth and in firm level business performance. However, the capacity to bring about these improvements relies on peoplethinking about new ways of approaching design issues, new ways of organising production and new ways of managing a supply chain, as well as an appreciation of the possibilities ICT opens up.

The role of people in enhanced performance points to the critical role of management leadership and direction in ensuring effective integration between productivity gains at the production level and performance gains at the corporate level.

The company interviews indicated that the increased availability, flow and application of knowledge and information within the sector based on the use of ICT has had a positive impact on the critical business functions of planning, production, marketing and distribution.

Adoption, application and use of ICT varies considerably across those industry sectors profiled. Variation is related to industry structure, the level of competition and the nature of the product and service offerings.

Software underlies every aspect of productivity and performance improvement. Australian manufacturing businesses need access to software that reflects the research and development (R&D) input of globally oriented software firms but is relevant and applicable to local conditions. This requires a strong Australian software development sector that is attuned to Australian manufacturing needs and a services sector that has both national and international linkages.

 

 

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  • Last modified: 5 February 2008, 10:30am