Today’s world is entirely dependent on information technology. Information can be defined as the processed data or the raw information that are given to our computer. It can be of any form be it in text form or voice form or image form. Information technology are the systems of hardware and software that helps in capturing process, exchanging stores and presenting information using electrical magnetic energy (Cui et al. 2015). Todays business world totally depends on the information technology in order to carry out their daily business process. Business world has to face different challenges with respect to global competition and technological changes. From various studies it is seen that small business can increase their business value by boosting their valuation to more than 25% (Wu, Straub and Liang 2015). This is done when the owners of the business strengthened their way to fix operational features with the help of information technology. Implementing information technology in business can help the business owners to gain higher price while raising funds. Especially business organizations that deals with publishing newspapers via online method gets fascinated with the implementation of information technology in their business process. This would help them in gaining high business value by delivering information electronically without using the printing paper. Several organisations got hooked up with the use of information technology in delivering information and simultaneously attracting peoples to the online websites that provide news of all kinds. Many companies tried building up CD-ROM in order to deliver information regarding various news by using the satellite and N11 services. Thus, as the world progresses with the application of information technology in the field of journalism, gradually there evolved the new era of internet journalism creating a relation between the journalists and the technical methods that are used in the online media industry. Technology effects the business operations of all kinds irrespective of size benefiting the business to gain competition, gaining profit and producing results that satisfies the customers. This helps in building an efficient culture and relationship of a business. A business organization of nay field can do their researches on the upcoming opportunities with the help of technological capacity which is very much essential for a business. Information technology implementation in business operations allows the enterprise to travel into the new market opportunities and identify the challenges in the market position virtually without any external cost or the risk to create a branch of the business abroad.
1.Competitive advantage of Nettavisen over Legacy news publishers:
Over the past few years Nettavisen is gradually gaining advantages by increasing its share in the market and gaining profit through the use of disruptive business models (Barney 2012). As a result, this business model helps the Nettavisen to compete against the legacy new publishers (Nærland 2015). Though the legacy news publishers felt that they can experiment with digital platforms within their brand but this was proved completely wrong by Neettavisen when a new leading online news site was established by them within a few years. The business firm of Nettavisenn gets its currency from different publicists for presenting their ads on their websites.
Competitive advantages of Nettavisen over new media players such as Facebook and Google:
From the beginning of the business strategy, the main goal of Netttavisen is to gain competitive advantages over the legacy news publishers and new media players such as Facebook and Google over the Norwegian market (Thorbjørnsen 2018). This type of sophisticated online companies is mostly ahead from realizing the importance of strategic value of data in a business model. Netttavisen gained competitive advantages over the online media by aiming in preventing data seepage from the marketplace of Norway and simultaneously leveraging its own information sets with the help of combined big data sets in order to drive the focus and embedded analytics (Jacobsen 2018). This in turn improved the decision-making ability of the editorials and helped in advertising the revenues. The firm of Nettavisen pursues a clear strategy to attract more and more people to its website. This is where the firm holds the main competitive advantage from rest of the established newspapers. Adding to its advantages Nettavisen has the freedom to publish its news at any time whereas the other news paper publishing houses needs to think about it before publishing any news to keep it for the next days publishing. Nettavisenn had no legacy related to journalism that needs to be protected. Gradually Nettavisen gained a huge market share over three top most online news site in Norway. By the year 2010 Nettavisen was recognized as the third major online broadcast site.
2.In order to analyse the Nettavisen’s competitive advantages in the disruptive turbulent market, it is necessary that the concept and principles of Resource Based View of the firm and the IT portfolio theory should be critically assessed.
Resource based view of the firm:
Resource based view of a firm is a type of managerial framework that helps in determining the resources based on these strategic planning which has the potential to deliver advantages to the firm. These resources that are used in the firm has the ability to get exploited within the firm itself in order to gain competitive advantages (Nyberg et al. 2014). According to Barney, firm resources consists of all the capabilities, attributes of the firm, information and the organizational processes which are measured by the firm to allow to consider and implement policies to improve the competence of the business (Weill and Aral 2016). In a resources-based view of a firm, the strategies are developed in such a way so that they can exploit the internal resources relative to the external opportunities.
IT portfolio of the firm:
IT portfolio management is considered as a method to manage all the IT reserves of an group so that the risks of the specific business investments can be evaluated in order to regulate their contribution in business performance. According to modern IT portfolio theory, it is not enough to concentrate only on the risk and return of a single security. It is essential to make a diversified portfolio in order to determine the risk in terms of a investor so that the investment is returned in a lower rate than expected. According to modern portfolio theory, this risk is the deviation as compared to the average return (Lin and Wu 2014). The IT portfolio model suggests the classifications of all existing, planned and potential IT investments into four categories namely strategic, key operational, support and high potential which helps in gaining expected contribution to business success. Strategic changes in a business firm creates or supports changes about the conduct of the organisation with the aim of providing competitive advantages. Only advancement of technologies in business firm does not provide competitive advantages but the firm also needs to apply strategic assessment based on the contribution of the business.
How Nettavisen used the RBV theory and IT portfolio theory to gain advantages:
Combining these two concepts of RBV and IT portfolio theory Nettavisen has achieved in gaining competitive advantages in the disruptive turbulent market of Norway. For example, Nettavisen introduced a data determined corporate model to establish a diverse labor force (Zaki, Lillegraven and Neely 2015). The firm is also perusing big data policies which intended at analysing the number of users glancing their sites. The personalized analytics that are generated is then aimed at producing a personalised content for the online news sites (Houston et al. 2015). The new blogging community that is introduced in the portfolio of the organisation has brought in various challenges in the organisation (Lundvall 2016). As the bloggers have their personal agendas, they will not ever be socialised in the Nettavisen’s measures. Though this challenge has emerged within the organisation but it can be seen as a blessing as it explores the places where the challenges may take place in the existing market.
Conclusion:
The from the report it can be concluded that the market of online news media is totally dominated by the media legacy of different organisations which has implemented integrated systems in their online based operations. This has made possible to the organisations to influence their existing capitals especially the well-known varieties like Nettavisen to generate revenue and draw as many audiences to its online websites. The Data driven business model established by Nettavisen suggests the shifting of the data driven economy that helps in capturing more audience by creativity and innovation. Due to its strategic model in business environment, Nettavisen has achieved in competing with other sophisticated online news media like Facebook and Google by realizing the potential required to use in valuing data in business model. While performing the Resource based review and IT portfolio framework in the business firm, many challenges may occur but those should be taken as an added benefit contributing in the organisations success. Concentrating on the innovating technologies in the business does not always improve the business competitiveness but along with that the business strategic frameworks that an assess the risks of the firm should also be considered. Thus, from the report it is seen that information technology can greatly add value to business organizations by implementing different technological strategies in the business model ad hence improves the firm’s overall business performance and increases competitiveness in the external market.
References:
Barney, J. (2012). Evaluating the firm’s internal capabilities, Strategic Management and Competitive Advantage: Concepts, 4th Ed, Pearson (Boston)
Cui, T., Ye, H.J., Teo, H.H. and Li, J., 2015. Information technology and open innovation: A strategic alignment perspective. Information & Management, 52(3), pp.348-358.
Houston, J.B., Hawthorne, J., Perreault, M.F., Park, E.H., Goldstein Hode, M., Halliwell, M.R., Turner McGowen, S.E., Davis, R., Vaid, S., McElderry, J.A. and Griffith, S.A., 2015. Social media and disasters: a functional framework for social media use in disaster planning, response, and research. Disasters, 39(1), pp.1-22.
Jacobsen, T., 2018. Trusting News Online-A qualitative study of perceptions of online newspaper credibility among young Norwegian adults (Master’s thesis, NTNU).
Lin, Y. and Wu, L.Y., 2014. Exploring the role of dynamic capabilities in firm performance under the resource-based view framework. Journal of business research, 67(3), pp.407-413.
Lundvall, B.Å., 2016, May. Innovation System Research and Policy Where it came from and where it might go. Paper to be presented at CAS Seminar, Oslo, December 4, 2007.
Nærland, T.U., 2015. From Musical Expressivity to Public Political Discourse Proper: the case of Karpe Diem in the aftermath of the Utøya massacre. Popular Communication, 13(3), pp.216-231.
Nyberg, A.J., Moliterno, T.P., Hale Jr, D. and Lepak, D.P., 2014. Resource-based perspectives on unit-level human capital: A review and integration. Journal of Management, 40(1), pp.316-346.
Thorbjørnsen, R.S., 2018. Immigration framing by Norwegian political actors on Facebook 2015-2017-An empirical case study (Master’s thesis, NTNU).
Weill, P., and Aral, S. (2016). Generating premium returns on your IT investments, MIT Sloan Management Review, 47:2, pp 39-48
Wu, S.P.J., Straub, D.W. and Liang, T.P., 2015. How information technology governance mechanisms and strategic alignment influence organizational performance: Insights from a matched survey of business and IT managers. Mis Quarterly, 39(2), pp.497-518.
Zaki, M., Lillegraven, T. and Neely, A., 2015. Moving Towards a Data-Driven Business Model (DDBM) in the Online Newspaper Publishing Industry.
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