Nick Carr published an article in Harvard Business Review titled “IT Doesnt Matter.” In
this article, Carr compared IT to railroads, a transport mechanism. He emphasized “like
any transport mechanism, it is far more valuable when shared than when used in isolation.”
Carr also added that as the ubiquity of IT grew, IT became more like a commodity, and
therefore its role in strategic advantage reduced. He argued that the window for gaining
competitive advantage through IT implementation is closing, and that the best way to seek
advantage in the future is to manage IT costs and risks.
Do you agree with Carr that as information technologys power and ubiquity grows,
its strategic importance diminishes? Why and why not?
I agree that simply implementing an IT system will not give strategic advantages. An IT
system is no longer guaranteeing a success for a business in today business environment.
However, if we do not have an proper IT system to support business strategy, we are
already at our disadvantage. Therefore, if IS department is aligned with the whole business
strategy, there is a chance a company will strike for its competitive advantage.
Where do you think the next IT-based strategic advantage may occur? Give an
example.
The window of opportunity for IT-based strategic advantage is getting smaller, but it still
exists. The chance is there for a company can read or predict the market, and apply a right
system for it. For example, the cell phone market was saturated with big players such as:
