It can be defined as an activity at which a firm is a world-class leader. E.g. Honda is known for its engine.
Enhancing core competencies
Yet another way to use information system for competitive advantage is to think about ways that system can enhance core competencies. The argument is that the performance of all business unit will increase in so far as these business unit develop, or create, a central core competencies.
A CC relies on knowledge that is gained over many years of experience and acquiring knowledge over a period of time. IS can be used to store, retrieve knowledge and experiences that the company has gained to develop strategic advantage and enhance its core competencies
For example: - Procter & gamble, a world leader in brand management and consumer product innovation, uses a series of system to enhance its core competencies. P&G uses an internet called innovation net to help people working on similar problem share ideas and expertise.
