IT Still Doesn′t Matter Analysis
Nicholas Carr argues that IT Doesn’t Matter by highlighting several reasons and examples to prove his stance. He attributes his position to the effectiveness of information technology on business in the long run. Carr assumes IT as a mere commodity that does not provide any strategic competitive advantage to the industries since with time IT becomes obsolete; hence, very hard for the company to use technology to distinguish itself from the rest of firms in the same industry. Some of Carr’s critics including Microsoft CEO, Steve Jobs, and HP CEO, Carly Fiorina argues that his views on the importance of IT in business are unjustifiable, because for the business to compete advantageously it must know what happens to its rivals in the last six hours, and that can only be achieved with information technology in place (Barrett, 2015). To the Carr critics, IT is not just a commodity, but a supplement that can be used by business to claim a competitive advantage in a particular industry. Although Carr’s argument against the IT can be justified because all companies can access IT, it loses the grip since the effectiveness of technology on business depends on the type of IT and how the company is using the available technology. PLAGIARIZED SAMPLE ORDER YOUR PAPER NOW
In the modern business world, information technology is the major driver of the firm’s success. A business attains a competitive advantage by offering the product in a better way than the competitor. It is important to note that information technology does automatically grant the company a competitive advantage, but rather the manner in which the firms use the available IT. Ramey (2012) noted that any other company including the competitors could use IT to solve business problems; however, it is the way in which business uses information that determines whether the company will gain additional benefits or not. For example, the innovative use of IT helps the company to devise ways to come up with new products and new methods of delivering the services. As a result, the company must continue inventing and creating methods to create new products and services that competitors cannot produce.
The reliance on IT has a handful of benefits in executing business functions effectively and efficiently. For example, the company’s senior management can use IT as a foundation for building business growth. The organization can adopt an IT culture whereby creative information technology ideas become the norm of the day with a focus to satisfy customers and claim business growth. Carr argument that IT is just mere commodity that any other business can purchase and use effectively is baseless since for the information technology to be useful for the business; the users must understand how to apply and utilize it. First, the companies do not purchase or develop IT without understanding the business problem to be solved. Secondly, most businesses acquire IT if they know how to use it creatively to solve business problems. Moreover, the information technology provides business with crucial information to understand the needs of their clients and stakeholders. Using IT to understand the requirements, inconveniences and limitations faced by the customers help the company to focus on getting rid of these problems to serve customers better than the competitors in the same industry.
In as much as Carr views IT as something that does not matter, to some extent he seems to accept that it is good for business, especially when he poses a question, “Does IT Matter”. In this question, he may appear to question earlier stance that “IT Doesn’t Matter”. Carr agrees that IT is corrosion of competitive advantage and if well utilized it will help the company to attain its strategic business goals. For example, he opines that the combination of competitive, economic and technological forces has transformed the function of information technology in business (Carr, 2004). Even though Carr somehow holds his position of IT Doesn’t Matter, he recommends that companies can benefit from technology by investing on the heavy infrastructure. However, he warns businesses that if they cannot benefit from technology, then they should shun from investing in IT. Before investing in IT, a business is guided by three fundamental conditions: the current state of the business; suitability of IT to the business and how the introduction of IT will affect the business. With the three above questions, IT cannot be assumed as a mere commodity because companies do not just invest in any IT infrastructure, but the one that will help them to address business-specific needs. PLAGIARIZED SAMPLE ORDER YOUR PAPER NOW
Carr’s stance raises an interesting debate and arouses the readers’ thoughts on the importance of IT in the modern business world. To a certain degree, Carr argument can be true since IT can only be short-lived before becoming obsolete. Besides, only innovators and adopters who benefit mostly because they tend to employ new IT before others in the industry. Nevertheless, IT cannot be despised as an important aspect of the growth of the business. Today’s businesses primarily rely on IT through innovation and creativity to build and maintain their competitive advantages.
Barrett, S. (2015, May 18). CNET Interview with Nicholas Carr on “IT still doesn’t matter”. Retrieved from Youtube.com: https://www.youtube.com/watch?v=hj_mzU3N70g
Carr, N. (2004). Does It Matter?: Information Technology and the Corrosion of Competitive Advantage. New York: Harvard Business Review Press.
Ramey, K. (2012, October 2012). Use of Information Technology in Competitive Advantage. Retrieved from useoftechnology.com: https://www.useoftechnology.com/information-technology-competitive-advantage/