Incorporating competitive advantage into the process technology investment decision

Author: Smart Alison U.   Barrar Peter   McCosh Andrew M.   Lloyd Ashley D.  

Publisher: Inderscience Publishers

ISSN: 1368-2148

Source: International Journal of Manufacturing Technology and Management, Vol.4, Iss.5, 2003-07, pp. : 401-419

Disclaimer: Any content in publications that violate the sovereignty, the constitution or regulations of the PRC is not accepted or approved by CNPIEC.

Previous Menu Next

Abstract

Evidence suggests that few organisations specifically factor competitive advantage into process technology investment decisions, despite evidence that companies who invest for market reasons tend to be more successful. This article outlines a five-step method that companies can use to ensure that competitive advantage is explicitly included in the investment decision. The steps outlined assume that a company wishes to invest in process technology to achieve an advantage. The five steps require an estimation of the competitive position, identification of a potential competitive advantage, discrimination between projects based on competitive advantage factors, financial appraisal and a final check to ensure that the proposed investment fits the strategy.