Q.4    What does it mean to gain a competitive advantage through the use of information technology?

Computer systems have traditionally been implemented for productivity and efficiency gains. They will continue to be a driving force for information technology.

There have been enormous gains in productivity and efficiency with the advent of computers in the workforce. The social effects have been significant, with many jobs disappearing or being redefined. Productivity gains result from being able to do a job more efficiently and ultimately at less cost. This can be done by:

 Producing more for the same or less effort

 Producing the same amount at less cost

In Australia, and other western countries, productivity gains are often achieved by reducing labor – that is jobs. The cost of labor is a significant expense to organizations, and productivity gains of the future will be directed at reducing these costs.