In the 21st century it's no longer enough to attempt to align information technology strategy with the strategy of the business enterprise. Such alignment is of course important, but the competitive world has changed to the point that information strategy needs to be a part of business enterprise strategy from the beginning, not a "me too" follower. Here is a list of seven ways that a corporation can use information technology to generate strategic advantage: 1. Improve operating efficiency. Use information technology tools to improve individual pieces of the organization's operations. That may be automated payroll, automated order entry, just in time inventory, computer integrated manufacturing, or a host of other efficiency improvements. 2. Build barriers to entry. A classic example of this strategy is the airline reservations system. American Airlines and United Airlines have developed very profitable, very effective reservations systems. The thing that keeps others from competing in this arena is the sheer cost of developing another reservation system, and getting it accepted. 3. Shift costs. This simply means get somebody else to perform the work that you previously have done. An example of this is the automatic teller machine. When you use an ATM, you do all the data entry, and the bank saves money (and they have the audacity to charge you for the privilege). 4. Innovation. Use information technology to create a new product, service, or differentiation that your customer prefers over the competitions' offerings. There are many examples of innovation such as Amazon.com. 5. Lock in customers and suppliers. Use technology to tie your customers and your suppliers more closely to your business enterprise. So closely in fact, that it is difficult for them to consider a change. An example of locking in suppliers is Wal-Mart. They have integrated their computer systems