1. What is Carr's major argument that IT doesn't matter?
The main argument that Nicholas Carr made in his article ‘IT doesn’t matter’ is that managements need to change and no longer give companies a competitive edge. Carr argues that executives are wrong who believe that information technology is a strategic value that provides a competitive advantage. He says: ‘As information technology’s power and ubiquity have grown, its strategic importance has diminished. The way you approach information technology investment and management will need to change dramatically.’ Scarcity gives the capacity to be the basis for a sustained competitive advantage.
Because information technology is easily accessible now, the strategic importance of information technology has been reduced. The main focus of this article is that organizations should handle information technology as a product in which it should reduce vulnerabilities, pursue to keep costs low, and avoid taking risks.
Information technology’s power and ubiquity has begun to change this technology from strategic resources into factors of production. The three basic functions of information technology are storage, processing, and transport of data which has become one of the most important key to do business. Carr also argues that managers must focus on managing their time and also spend a good time understanding the importance of technology and how it impacts the firm level.
Carr believes that companies need to understand that information system cannot provide strategic advantages and that the companies need to focus on managing the information technology cost because information system went through the same phase as earlier technologies.
Last but not the least; Carr argues that companies should strongly start managing the cost of information system through strategy focus. Carr says that “as the opportunities for information technology-based advantage continue to narrow, the penalties for overspending will grow” which means that Carr’s main focus is on investing in cost reduction and risk management. Carr believes that organizations should try not to build competitive advantage through information technology investment because these advantages spread through the industry and become commoditized.
2. Do you agree or disagree with him? Why?
Carr has valid arguments and I agree with him. Carr’s arguments are a wakeup call for the Information technology users, influencers, and providers.
Firstly, I believe that Information technology is no longer an advantage…