Spawning of New Business Opportunities
Makes New Businesses Technologically Feasible
- Federal Express Zapmail - failure is a good example of the need for differentiated competitive advantage through IT
- Merrill Lynch Cash Management Account - complex system infrastructure was difficult to copy, thus sustaining its competitive advantage
Creates Derived Demand
- Airline reservation systems promote demand for hotel rooms and rental cars
- Laser printers created demand for toner cartridges
Three Impacts of Information Technology