Information technology has indeed established itself as a significant component of business over the past two decades which provided one of the most functional competitive advantages. This is due to the fact of the vast utilities it offers and thus becomes available anywhere around the world. However, Nicholas Carr suggested that as information technology has grown in power and ubiquity, its competitive advantages have lost and thus it doesn’t matter anymore.
In this paper, it is argued that IT does indeed matter due to its wide use and necessity in constrast to Carr’s view. Also, it is further urge that competitive advantage has always been temporal in technological innovations and this is explained with the view of IT as multiple technologies and as a single type of technology which points out obsolete technology like IT still exists with competitive advantage and matters. Lastly, the discussion reveals that the degree of innovativeness in the IT realm is so far greater than other classification of technologies that we could not make an assumption whether or not IT will be less of a competitive advantage in the years to come.
The next discussions will be focusing on the analysis of these ideas as expressed by Nicholas Carr, and will be applied to analyzing further certain projects in a given company scenario.
Introduction
IT is the latest series of broadly adopted technologies, after the railroad. Due to their usefulnesses, the commonalities between the two are primarily observed in the manner that people have invested in them. A deeper look at these types of commodities will reveal that the pattern by which the similarity is competitive advantages, making us able to argue that they have the same level of supply, demand and necessity in the market. Gradually, many companies will try to possess the same technology and provision of the same service which will eventually lead to the decline of the prices that can be offered since everybody already
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