1.5 Figure 1-5 shows that organizational culture and the design of an AIS influence one another. What does this imply about the degree to which an innovative system developed by one company can be transferred to another company? Factors Influencing Design of the AIS IT developments can affect business strategy. For example, the Internet has profoundly affected the way many activities are performed, significantly affecting both strategy and strategic positioning. The Internet dramatically cuts costs, thereby helping companies to implement a low-cost strategy. If every company used the Internet to adopt a low-cost strategy, then the effects might be problematic. Indeed, one possible outcome may be intense price competition among firms, with the likely result that most of the cost savings provided by IT developments can affect business strategy. For example, the Internet has profoundly affected the way many activities are performed, significantly affecting both strategy and strategic positioning. The Internet dramatically cuts costs, thereby helping companies to implement a low-cost strategy. If every company used the Internet to adopt a low-cost strategy, then the effects might be problematic. Indeed, one possible outcome may be intense price competition among firms, with the likely result that most of the cost savings provided by the Internet get passed on to the industry's customers, rather than being retained in the form of higher profits. Moreover, because every company can use the Internet to streamline its activities, a company is unlikely to gain sustainable long-term competitive advantage. An organization's AIS plays an important role in helping it adopt and maintain a strategic position. Achieving a close fit among activities requires that data are collected about each activity. It is also important that the information system collects and integrates both financial and nonfinancial data about the organization's activities