It Doesn't Matter

The article ‘IT Doesn’t Matter’ by Nicholas Carr provides an interesting yet a disputable perspective on the strategic importance of Information technology (IT). He argues that IT has become a commodity providing little competitive advantage. Also, any technological advancement is quickly and broadly copied, rendering it meaningless for competitive advantage. So the companies should rethink how much they pay for IT given this reduced return on investment. The article asserts that information technology is inevitably headed in the same direction as the railroads, the telegraph and electricity by becoming just ordinary factors of production. I do not agree completely with the author’s views. Various authors have criticized Carr’s views and defended their position by showing the importance of IT and its role in gaining competitive advantage. From the available data, I would like to conclude that cautious investment in IT together with focus on IT process and skills, leadership and management can definitely help a business to gain competitive advantage.
Introduction
IT has deeply transformed today's business world and all businesses use information technology on a large scale. As a consequence, capital expenditure devoted to IT has increased dramatically over the years and is still tremendous in spite of the current economic situation. The author criticizes this IT worship.
First, the author argues that scarcity makes a resource truly strategic and provides competitive advantage. You gain an edge over your rivals only by having something or doing something others can't have or do. But as IT has become affordable and available to all, its competitive advantage is lost. Second, proprietary technologies may generate a competitive advantage to their owners. But the author states that infrastructural technologies are more productive when they are shared. He uses the striking examples of electric power production or trains to prove his point, showing that no company...