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Does IT Matter? Information Technology and the Corrosion of Competitive Advantage (2004)

par Nicholas G. Carr

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Over the last decade, and even since the bursting of the technology bubble, pundits, consultants, and thought leaders have argued that information technology provides the edge necessary for business success. IT expert Nicholas G. Carr offers a radically different view in this eloquent and explosive book. As IT's power and presence have grown, he argues, its strategic relevance has actually decreased. IT has been transformed from a source of advantage into a commoditized "cost of doing business"--with huge implications for business management. Expanding on Carr's seminal Harvard Business Review article that generated a storm of controversy, Does IT Matter? provides a truly compelling--and unsettling--account of IT's changing business role and its leveling influence on competition. Through astute analysis of historical and contemporary examples, Carr shows that the evolution of IT closely parallels that of earlier technologies such as railroads and electric power. He goes on to lay out a new agenda for IT management, stressing cost control and risk management over innovation and investment. And he examines the broader implications for business strategy and organization as well as for the technology industry. A frame-changing statement on one of the most important business phenomena of our time, Does IT Matter? marks a crucial milepost in the debate about IT's future. An acclaimed business writer and thinker, Nicholas G. Carr is a former executive editor of the Harvard Business Review.… (plus d'informations)
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IT as a Commodity

Information Technology (IT) has transformed itself from a source of competitive advantage to simply being a cost of doing business.

Despite the spectacular gains during the past 50 years, says Nicholas G. Carr, a former Harvard Business Review executive editor, IT will distinguish no single competitor. This contradicts many executives' perception that IT ubiquity is an advantage. They miss the point the scarcity, not ubiquity, creates an advantage.

IT's core functions - the storage, distribution and processing of data - are available to all. Without differentiation IT is relegated to commodity status. This should force executives to re-think their IT spending plans and their vendor relationships. As this perception gains acceptance, risk and cost control will become more important than investments in innovation. In short, technology is headed down the same path the steam engine, railroad and electricity followed. Only by becoming a shared and standardized resource will IT deliver its maximum social and economic potential.

Carr says the greatest risk that IT represents is overspending. While IT is entwined with many business processes and represents a huge portion of any businesses’ expenses, it must be managed. There are several ways:

1. Cut waste. Commoditization permits buyers to negotiate better deals, tie payments to usage and shop among vendors.

2. Use Capacity. The overspending in the 1990 left many companies with more capacity than they need. Find ways to use it.

3. Place tight controls on IT usage. Carr says 70 percent of what is stored on corporate networks represents employees’ saved e-mails, MP3s, video clips and spam. Restrict the indiscriminate ability to save files.

4. Become more rigorous in systems planning.

Carr is a distinguished writer and thinker. His book serves as a wake-up call for anyone interested in competitive advantage. Although executives have grown wary of IT spending, they will have to cope with methods that will prevent the commoditization of IT architecture and applications if they are to save their companies' barriers to entry.

Anyone - be he or she a business executive or IT worker - should give this tome a close examination. Its implications will be mighty. ( )
  PointedPundit | Mar 26, 2008 |
From the start, Carr makes a great distinction that I think needs to be made in most IT shops and places that sell IT "Solutions" across the board -- the difference between proprietary technologies and infrastructure technologies. To put this into perspective, (and nothing against perforce here), but perforce is very much a "Proprietary technology," and CVS is at this point an Infrastructure technology. He also points out that IT and computer hardware is a cost-based commodity, and in order for companies to compete in any market other than a cost-market, that you need to have excellent service and support (something that I've been saying for at least a year). I think that if you implement IT in the right way, that you can earn back the cost that you spend on IT 10 fold, however, Carr states that IT has transformed itself from a source of competitive advantage to simply being a cost of doing business.

If you're in IT, or, even at a C-level, I would highly recommend reading this book. It's something that you should should read, think about, then read again to really get the full scope of what Carr is trying to say. ( )
  pastryville | Mar 23, 2008 |
Business Leaders do not buy IT but solutions ( )
  luciovollaro | Mar 12, 2007 |
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Over the last decade, and even since the bursting of the technology bubble, pundits, consultants, and thought leaders have argued that information technology provides the edge necessary for business success. IT expert Nicholas G. Carr offers a radically different view in this eloquent and explosive book. As IT's power and presence have grown, he argues, its strategic relevance has actually decreased. IT has been transformed from a source of advantage into a commoditized "cost of doing business"--with huge implications for business management. Expanding on Carr's seminal Harvard Business Review article that generated a storm of controversy, Does IT Matter? provides a truly compelling--and unsettling--account of IT's changing business role and its leveling influence on competition. Through astute analysis of historical and contemporary examples, Carr shows that the evolution of IT closely parallels that of earlier technologies such as railroads and electric power. He goes on to lay out a new agenda for IT management, stressing cost control and risk management over innovation and investment. And he examines the broader implications for business strategy and organization as well as for the technology industry. A frame-changing statement on one of the most important business phenomena of our time, Does IT Matter? marks a crucial milepost in the debate about IT's future. An acclaimed business writer and thinker, Nicholas G. Carr is a former executive editor of the Harvard Business Review.

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