INFORMATION TECHNOLOGY Information technology has evolved as an inevitable component for the modern global companies having business

across the globe. IT is the collection , processing ,storing and disseminating of various vocal , pictorial , textual , numerical information and transforming them into data and knowledge accordingly. IMPORTANCE FOR GLOBAL COMPANIES 1. IT works as a technique to execute business strategy for the global companies with the aim to achieve the given objectives at a low cost. 2. IT helps to provide INFORMATION to its customers worldwide with a very low cost and within a very short span of time. As global companies do business in various countries so IT plays a very important role in exploring new markets and to gain the advantage of maximum market reach. AS the information shared publically are mostly freely accessible, thus companies can easily promote and advertise their products with a minimum cost. 3. IT also helps in connecting the company with its existing and potential customers directly . Thus IT helps customers to place orders directly, gathering information or answers to their queries, complaining their grievances, and last but not the least giving suggestions or feedback. 4. IT helps the global companies to integrate with all its divisions doing business worldwide. IT provides an integrated management and administration of the entire system with help of multimedia distribution system , e-mail. IT has reduced the cost of communication drastically. 5. Another core service provided by IT is business process automation . With the help of IT, global companies are making a large portion of their tasks automatic and some are being outsourced. IT has reduced the whole process of business communication and added more value added services to their value chain. ROLE OF IT TO ENHANCE LI & FUNGS GLOBAL COMPETITIVENESS

LI &FUNG , known as the global value chain Configurator has always embraced IT as a policy or part of its Business strategy. The Co. has utilised IT very efficiently and effectively since 1990s , which led to minimise their communication costs , building and maintaining their strong global sourcing network & to gain the global competitive advantage . The major contributions of IT towards LI& FUNGs global competitiveness are listed below : 1. In 1995 , the company introduced INTRANET, to enable free information flow with speed and accuracy , which enabled the company to provide content & services to its employees across its various divisions. Intranet facility helped the company to establish good co-ordination and both way communication .It also helped to minimise errors in various processes as problems can be resolved with consultation promptly as soon as they were detected.

Intranet facility helped the company to find out the right suppliers and producers according to the demands of their customers. It also left the customers with the option for last minute changes in the production process. Which added more value to their customers and supply chain.

2. In 1998, LI & FUNG created EXTRANET facility for its major customers. Extranet made the supply chain more transparent . The sites enabled the company to interact with customers , helped in customised product development , track their orders. On the other hand , the customers also benefited by d facility to track their orders and gain access to the related information. 3. LI & FUNG took IT as a strategy to initiate its B2B marketing . the company used Direct mailing with the objective of reaching small and medium sized retailers worldwide as a part of their market expansion. It contributed largely to enhance its global competitiveness. 4. LI & FUNG with the objective to attain economies of scale in their production process , used IT in a very smooth and efficient manner . The company with the help of its Studio Division , aggregated all orders placed in its web site by small and medium retailers , which falls mostly under similar categories or requirements. Then they started the manufacturing process as a whole. It reduced their cost of production . 5. LI & FUNG provided a complete solution of sourcing and integrated supply chain management. IT helped the CO. to maintain the relationship with their customers and suppliers .

So , right from the inception of the company and emergence of IT , LI & FUNG utilised IT as an opportunity which led to explore new scope for growth and expansion .The benefits and global competitiveness of IT for LI&FUNG can be set as competitive benchmark for rivalry companies .