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There is general agreement among academic researchers that information systems can prove strategic if they are well crafted. However, the field currently lacks frameworks that predict which applications might provide lasting benefit and sustainable competitive advantage. Moreover, little has been attempted in analyzing effects on the organization of industry. These effects may, in the long term, prove at least as interesting as effects on individual firms. We present here an initial examination of the effects of information systems and telecommunications on the competitive position of firms. Our intention is to provide guidelines for choosing opportunities that convey sustainable competitive advantage. We present also an initial analysis of predicted changes in the organization of industry. This work draws on field research and on recent work in market economics.
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