...Information Systems Management Joe Jelenek / K00121194 Information Systems Management Joe Jelenek / K00121194 Why it does not matter Why it does not matter Discuss the following statement using arguments for and against the point of view stated: Technology does not create a competitive advantage. Instead, it is the appropriate management of technology that creates a competitive advantage. Why IT does not matter The whole world of e-commerce and using IT within businesses started by inventing the personal computer and connecting the world and business with theirs customers via internet. The spending of the resources on IT by businesses was increasing more and more towards the end of the century. In the last decade it was nearly 50% of the capital expenditures. Carr (2003) says that any business has equal access to the computer technology because it is affordable and as the technology evolves and innovates, the price goes down more rapidly. That means the IT does not gives the advantage to the organization, but it’s the way organization manages the IT, how it aligns the IT with the organizations business goals that gives it the competitive edge against the competition. IT becomes just a commodity and cost of doing business. What makes it truly strategic is tis scarcity. Another area that has to be looked at when adopting IT technologies is if to use proprietary or infrastructural (open standard) technology. The proprietary technology is protecting...
Words: 1306 - Pages: 6
...“IT Doesn’t Matter” by Nicholas Carr 2003년 5월에 발표된 “IT Doesn’t Matter”에서 정보통신이 사업상 전략차별화에 미치는 영향에 관하여 저자, Nicholas Carr가 내놓은 견해는 많은 논란과 찬반양론을 불러일으켰다. 본 HBR 발간지에서, Carr은 정보통신이 갈수록 흔해지고 사업상 사용도가 보편화됨에 따라, 사업상 전략 차별화를 할 수 있는 능력이 이제는 무효하고 부가가치를 더 이상 창출하지 않는다고 주장하였다. 이에 따라, 정보통신을 하나의 상품으로 다루고, 이에 대한 상품에 아낌없는 투자를 함으로써 사업적 차별화를 바라지 말 것을 권고했다. 1800년도 초에 일어난 산업혁명에서의 가장 각광받았던 기술인 철로나 전력 같은 사회기반시설이 처음에는 독점기술로 시작했지만 40년이 지나고 모두가 직접 접근 할 수 있으면서부터 상품화되기 시작했고, 이와 같이 정보통신도 같은 길을 걷고 있으므로, 정보통신에 대한 투자에 한해서는 후발주자가 되고 원가절감을 추구할 것을 당부하였다. 또한 극단적으로 정보통신 관리는 원가와 리스크 절감에 초점을 맞춤으로 인하여 지루해야 된다는 의견을 내놓았다. Nicholas Carr이 말 한대로, 정보통신이라는 아이템 자체만으로 미시경제 관점에서 경쟁우위를 점하기 어렵다고 개인적으로 생각한다. 또한 정보통신이 상용화가 됨으로 기업이 과한 투자를 자제하고 원가절감에 신경을 써야 한다는 주장에도 동의를 하는 바이다. 그러나 저자가 지은 제목을 포함하여, 정보통신의 개념을 지나치게 단순화하여 독자에게 정보통신이라는 현재 가장 획기적이고 사회필요요소로 다루어 지는 기술이 자칫 상관없다는 오해를 불러 일으킬 수 있다는 개인적인 생각이다. 저자가 말한 commodity input으로 IT를 다룰 것이 아니고, 고위 관리경영진이 적절한 투자와 관심을 input으로 하고, 전문인력 양상, 명확한 활용방안, Roadmap을 제시하였을 때, 정보통신의 부가가치가 의미 있어진다고 생각한다. 모두가 동일한 아이템을 가지고 있다면, 기업 강령에 적합하게 사용할 수 있다면 경쟁 기업의 우위를 점하는데 있어서 가장 좋은 기폭제가 될 수 있다. 이러한 의견을 제시하지 않은 체, 정보통신 관리에 대하여 지루하다는 극단적인 의견과, ‘IT doesn’t matter’ 이라는 오해의 소지가 있는 제목으로부터 독자들이 오해를 할 수 있는 여지가 있었다. 만약에 Carr이 말한 것과 같이 정보통신의 개발 성장세가 더뎌지고 있다면, 차후 어떻게 정보통신을 십분 활용하여 기업체가 경쟁 기업의 우위를 점하는 지에 대한 의견이 있었다면 더욱 더 설득력 있는 주장이 되지 않았을까 생각한다. 그러므로 개인적으로 “IT doesn’t matter,” 가 아니 “IT does matter”라고 본다. 결론적으로, 예전에는 철도에 기차를 올리고, 그 기차라는 상품이 창출하는 가치에 의미를 두었다면, 이제는 그 철도 위에 어떤 특징을 가진 기차를 놓을지에 대한 명확한 판단력과 그 기차를 어떻게 누가 운전 할 것인지에...
Words: 347 - Pages: 2
...Summary and discussion of Nicholas G. Carr’s article “IT Doesn’t Matter” published in 2003 by Harvard Business Review. IT Doesn’t Matter Carr’s main argument is quite simple. IT is extremely important within corporations, but IT has become a universal resource for firms. The basis for a sustained competitive advantage is scarcity, not ubiquity. Hence, IT has become a commodity and therefore it is no longer a strategic advantage – the significance of IT doesn’t matter anymore. He argues, “By now, the core functions of IT ¬– data storage, data processing and data transport ¬– have become available and affordable to all. Their very power and presence have begun to transform them from potentially strategic resources into commodity factors of production. They are becoming costs of doing business that must be paid by all but provide distinction to none” This quote captures the essence of Carr’s argument he distinguishes between proprietary technologies and infrastructural technologies. He argues that IT has shifted into the latter category, becoming a common infrastructure utilized by all corporations. He explains this assertion with the examples of IT becoming a commodity like railroads or electricity. Carr then offers new guidelines for IT management; Spend Less, meaning firms are putting themselves in a cost disadvantage by using large investments in IT without posting good financial results. Secondly, Follow Don’t Lead, where he argues that by postponing IT investments firms...
Words: 584 - Pages: 3
...IT Doesn’t matter “If a company needs evidence of the kind of money that might be saved, it need only look at Microsoft’s profit margin” Excerpts from a company’s strategy document • ...the company will ensure that it will have at least 2 plug points in each room with AC connection. • The switches will be white in color and will make a ‘click’ sound on pressing • Press to hear the click sound Disclaimer • We all agree to the fact that IT plays a crucial role in running an organisation. • All that we are driving at is that the existence of IT does not grant a competitive advantage to a company, anymore In other words, IT lets you remain in the race, Winning is a totally different ball game altogether The (lost) Edge • Can IT provide an edge for you? • You only gain an edge over rivals by having or doing something that they can’t have or do. • By now, the core functions of IT – data storage, data processing, and data transport – have become available and affordable to all. • And hence they are becoming costs of doing business that must be paid by all but provide distinction to none Risk >>> Advantage • When a resource becomes essential to competition but inconsequential to strategy, the risks it creates become more important than the advantages it provides • Lets classify technologies into • Proprietary technologies • Infrastructural technologies. • Proprietary technologies can be owned, actually or effectively, by a single company...
Words: 837 - Pages: 4
...“IT Doesn’t Matter” Management Information Systems The Idea that “IT Doesn’t Matter” as proposed by Nicholas Carr in the Harvard Business Review article that was published in 2003 raises just as many questions as it does answers to this very question as well as it has stirred up quite a bit of controversy over since its publication. What Carr is saying unlike the title of the paper he does not say there is no need for IT. The idea was to draw up controversy. Carr’s argument is to have a strategic advantage within IT. Something no one else has is extremely important. IT has become a huge cost for many organizations but other things have gone down in cost. Our Infrastructural technology of today in terms of transportation of goods it helps deflate prices. It is essential for competition to have IT but inconsequential for strategy for many organizations. What Carr is saying essentially is yes IT is an important to tool to help organizations achieve their goals daily however it is not the core of the business. The core is the strategy that each company possesses that makes it stand out from the rest and ultimately make that organization successful. The title of the original HBR article was misleading. Mr. Carr is not arguing that information technology doesn’t matter. Of course it does. Among other things, IT improves productivity by reducing communications, search, and trans- action costs, and by automating all sorts of tasks previously done by humans. But Mr. Carr asserts that...
Words: 838 - Pages: 4
...A SAMPLE CWU TO SHOW YOU HOW TO WRITE CWUs Dxxxxxxxx – Abc Defghi A Sample Case Analysis Write-Up: with all the suggested sections ITM T 6:00pm-9:30pm, Fall 2013 Date: October 31, 2013 ------------------------------------------------- INTRODUCTION (5 Points) Thin computing is the complete spectrum of hardware, services and software solutions that allow people using thin clients, PCs, wireless devices and other systems to securely access the information and the applications they need. Thin clients and the server based architecture that they require create an IT environment that offers security, manageability, and return on investment (ROI) benefits. Thin clients have the ability to natively render HTML pages, run Java applications, and handle text terminal applications without the need for any additional back-end infrastructure. Thin clients are network based computing devices that use the resources of servers to store applications and data and deliver them to users. Unlike traditional PC, thin clients are in the complete control of the IT department, and all connections to the outside world happen through a centralized, easily managed source. All the web connections, email, applications and data for thin clients on a given network come through a single point. Microsoft Terminal Services - With Terminal Services running on a server and a Terminal Services Client applications installed onto a thin client, the applications can be launched on the server but...
Words: 1367 - Pages: 6
...Este artículo fue muy transgresor en su tiempo y aún hoy hay gente que dice que es un texto que está de actualidad ya que el tiempo ha demostrado al menos en mi opinión que "Nicholas G. Carr" tenía y tiene razón con lo que plantea en el artículo sobre el valor percibido por las personas en cuanto a la importancia de la tecnología para la estrategia de la empresa. Si bien es cierto que la tecnología es necesaria, esta ha pasado de ser un valor diferencial a un “Commodity” en muchos casos. El desarrollo tan rápido que ha tenido en lo últimos años y la alta penetración que tiene en todas las industrias ha supuesto que todos los competidores puedan contar con una tecnología muy similar. Conseguir distanciarte de tu competencia mediante el uso de tecnología es cada vez más complicado y conlleva cada vez más inversión en innovación que en el caso de muchas empresas no supone beneficioso ya que supone un coste demasiado alto en comparación con el beneficio que puede tener. La verdad es que tal y como se explica en el texto, la historia ha demostrado una y otra vez que los avances tecnológicos más importantes que han revolucionado las industrias han tenido siempre un comportamiento similar en cuanto a su paso hacia su “democratización” y desde hace mucho tiempo, desde la entrada del ordenador personal e internet ya son muchos los que intuían que en un futuro cercano pasaría algo similar con las tecnologías de la información. En la actualidad es importante que las empresas tengan claro...
Words: 1044 - Pages: 5
... This article consists of three parts, and the first part of it makes a Comparative Study among IT,electricity,railway,telegraph and telephone,which contributes to the conclusion.And the second part is about the state of IT,while in the third part ,the writer makes recommendations for the IT users.Carr said that a business gained its strategic advantages from the scarcity of resources rather than its universality.And through the comparative study,he pointed out that IT had changed from private technology to infrastructure,which had both universality and publicity.He also thought it must be transient rather than long-term if a business tried to gain advantages through infrastructure.For all these reasons,Carr got a conclusion that IT doesn’t matter.Moreover,he made his suggestion that reduce investment costs,be a follower not a leader,and concern about the risks not the opportunities. Carr raised two main questions,one is about the competitive advantages,and whether it can be provided by the development of IT or not;the other is what attitude should be kept when people invest on IT ,and how to look at the development of IT.In addition,there are some issues worthy of reflection in the article,for example,the criticism of the private technology.An important point in the article tells that it’s inevitable that the private technology changes to basic technology ,which means the private technology is standardized. However,I think there are some flows in the article as well...
Words: 542 - Pages: 3
...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...
Words: 599 - Pages: 3
...Personality matters to the Marketers Aren’t organizations concerned that their marketing strategies are based on half-baked knowledge and information? Aren’t organizations always concerned of dropping sales? If marketers are trying to get to the moon with a bunch of sky rockets strapped to the back of the chair, they are never going to get their goals in place. It might push them somewhere, but not precisely where they want to go. But, the million dollar question remains, how to know what the consumers are thinking and that too well ahead of time? And the answer to that is, marketers need to know the “personality” of the consumers. Their personality is the key to make them buy the product. Personality affects decisions like when and where to buy. An indiviual who doesn’t enjoy crowds is likely to shop in a boutique, early in the morning or late in the night. One might prefer buying online if one has limited free time after work. A person who simply loves shopping can be easily found at every hook and corner of shopping malls and would prefer choosing products personally rather than buying online. And this is where the role of marketers becomes all the more crucial. They can leverage on this and create differentiation in their products and by understanding the personalitites can increase the sales as well. • It acquaints the practitioners with what customers value • It helps understand their thoughts • It dictates their behavior For marketers the strategy in place needs...
Words: 1002 - Pages: 5
...thing I don't know why It doesn’t even matter how hard you try Keep that in mind, I designed this rhyme To explain in due time (All I know) Time is a valuable thing Watch it fly by as the pendulum swings Watch it count down to the end of the day The clock ticks life away (It’s so unreal) Didn’t look out below Watch the time go right out the WINDOW Trying to hold on but didn’t even know I wasted it all just to watch you go I kept everything inside and even though I tried, it all fell apart What it meant to be will eventually be a memory of a time when... I tried so hard And got so far But in the end It doesn't even matter I had to fall To lose it all But in the end It doesn't even matter One thing, I don’t know why It doesn’t even matter how hard you try Keep that in mind, I designed this rhyme To remind myself how I tried so hard In spite of the way you were mocking me Acting like I was part of your property Remembering all the times you fought with me I’m surprised it got so (far) Things aren’t the way they were before You wouldn’t even recognize me anymore Not that you knew me back then But it all comes back to me In the end You kept everything inside and even though I tried, it all fell apart What it meant to me will eventually be a memory of a time when... I tried so hard And got so far But in the end It doesn’t even matter I had to fall To lose it all But in the end It doesn’t even matter I've put my trust in you ...
Words: 390 - Pages: 2
...(Volume13, 2004) 443-455 443 FROM THE CIO POINT OF VIEW: THE “IT DOESN’T MATTER” DEBATE Larry DeJarnett The Lamar Group larry.dejarnett@thelamargroup.com Robert Laskey Revelation 360 bob@revelation360.com H. Edgar Trainor Paramount Pictures ed.trainor@paramount.com EDITOR’S FOREWORD This article differs from all the articles CAIS published previously in that it is a debate on the nature of IT written by practitioners from three different points of view. It deals with IT Doesn’t Matter, a polemic written by Nicholas Carr, then editor of the Harvard Business Review in which he argued that the days when IT offered strategic advantage are long since gone and that managers therefore should undertake a different approach to IT. The paper, obviously, became notorious in the IS community. On December 3, 2003, the Southern California Chapter of the Society for Information Management, at its regular meeting invited three of its members with long experience as chief information officers to debate the issue. The title of the meeting was: "I.T. Doesn't Matter or Does It? How to Improve the Value and Perception of I.T.” The three debaters were assigned a position to argue: favorable to Carr (Laskey), neutral (DeJarnett), and unfavorable to Carr (Trainor). Edited versions of their remarks are presented below. Keywords: value of IT, perception of IT, role of IT, Nicholas Carr, I.T. Doesn’t Matter, IT Does Matter, contrarian point-of-view, strategic advantage, vanishing advantage of...
Words: 6073 - Pages: 25
...today. In Kevin Roose’s article, “The Next Time Someone Says ‘All Lives Matter,’ Show Them These 5 Paragraphs,” GeekAesthete effectively explains why the phrase “All Lives Matters” is offensive...
Words: 567 - Pages: 3
...performing an action by demonstrating our powerful and strong execution. Indeed, people work hard for multiple reasons, such as they want to have a better life, improve the community, and influence the people. For example, a group of the Student Government Association will be hosting an event regarding the Fall Fest. The members work extremely hard every day to make sure they’ll provide a nice, decent, and fun event for everyone. After the event, the SGA will field multiple criticisms from people that attended on how the event turns out. These criticisms mainly focus on negativity like how terrible the food is, the music, and the activities. They can be dealt with by following on hard work first. Also, dedication means not to give up no matter how difficult the situation. Having both dedication and a passionate mindset will immediately create a suitable foundation for success. As a real-life scenario, a single teen mother that balances her liabilities as a single parent and as a student at the same time. Throughout the challenging moment of her life, she didn’t hesitate on giving up her education. Under the circumstance, it made her stronger and boost her dedication to finish school. As well as, Pearl Jam’s dedication to re-evaluating the band by the newest member Matt Cameron. He was the former drummer of...
Words: 1851 - Pages: 8
...In both of the poems Okita's & Cisneros's show that you can be an American no matter the cultural heritage or the looks. They show that where you from doesn't matter. It all about you feel . For Example In the poem Okita wrote the little girl didn't matter the different culture her and her friend were all she knew that they were equal were both American citizens into one day. And my point of view on this is I feel the same way if you were raised and born in American no matter cultural heritage you are an American. The first work Okita's poem the narrator tells that she is an American. She likes all the common American teen age things for example she say" I like hot dogs" which is an American food ,and she also has a best friend that goes...
Words: 348 - Pages: 2
