IT Doesnt Matter
Information Systems Seminar – BINF 6315
Submitted to Homer L. Krout, II Ph.D.
Spring I, 2015
In 2003 when Nicholas Carr wrote the article “IT Doesn’t Matter” companies were just beginning to utilize information technology as a competitive advantage. Mr. Carr contends that technology is not a permanent advantage because in time the competition will acquire the same resources and Information Technology (IT) just becomes another commodity. For the majority of companies throughout the world IT resources have become easily accessible and affordable. If Mr. Carr’s opinion is correct then the equality of IT access has just become a cost of doing …show more content…
Similar declines have occurred in the cost of data storage and transmission. The rapidly increasing affordability of IT functionality has not only democratized the computer revolution, it has destroyed one of the most important potential barriers to competitors.” He does not say that IT will ever become irrelevant but instead he wants for businesses to understand the appropriate business strategy for IT investment.
He recommends taking a defensive approach towards IT initiatives “When a resource becomes essential to competition but inconsequential to strategy, the risks it creates become more important than the advantages it provides. Think of electricity. Today, no company builds its business strategy around its electricity usage, but even a brief lapse in supply can be devastating (as some California businesses discovered during the energy crisis of 2000).” The new rules Carr discusses are to spend less, follow- don’t lead, and focus on vulnerabilities instead of opportunities.
Topic Analysis Carr felt in 2003 that IT investment was on the cusp of losing the ability of being a competitive advantage and made recommendations for IT management on investing. The spending in IT only increased and for some companies their revenues have increased exponentially. For example, Google’s online ad revenues surpassed $36 billion in 2011, and Internet