Preview

ICT Strategy

Powerful Essays
Open Document
Open Document
1621 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
ICT Strategy
Abstract
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



Bibliography: Borade, G. (2012, 1, 19). Advantages of Information Technology. Retrieved 3 23, 2013, from www.buzzle.com: http://www.buzzle.com/articles/advantages-of-information-technology.html Carr, N. (2003). IT does not matter. Harvard Business Review , 41-49. Menta, R. (2007, 6, 11). The CD is Not Obsolete. It Just Lost Competitive Advantage. Retrieved 3 23, 2013, from www.mp3newswire.net: http://www.mp3newswire.net/stories/7002/CD-obsolete.html Porter. M and Millar. V (1985). How information gives you competitive advantage. Harvard Business Review , p2-13.

You May Also Find These Documents Helpful

  • Good Essays

    Nt1310 Unit 1 Assignment 1

    • 1252 Words
    • 6 Pages

    Companies use information as a weapon in the battle to increase productivity, deliver quality products and services, maintain customer loyalty, and make sound decisions. Information technology can mean the difference between success and failure…

    • 1252 Words
    • 6 Pages
    Good Essays
  • Better Essays

    Zara Good Response Example

    • 1341 Words
    • 5 Pages

    Porter, M. E. & MILLAR, V. E. 1985. How Information Gives You Competitive Advantage. Harvard…

    • 1341 Words
    • 5 Pages
    Better Essays
  • Best Essays

    Altera Business Analysis

    • 5887 Words
    • 24 Pages

    Many companies struggle to stay alive despite the economic forces working against them, such is true for those within the sector of information technology. As part of the global market, these companies face pressure on sales, earnings and greater market exposure due to the weak performance of counterparts in Europe and the US. Despite these economic obstacles, this industry has been growing and expanding at an accelerated pace over the last decade. IT has changed the way of living by enabling communication; improve standards of living and increasing opportunities across the globe. Its customer base is broad and environments in which it operates are very complex. The use of information technology solves crucial productivity issues such as reducing costs and increasing operational efficiency. As societies around the world become ever more hyper connected through technological sources, such an impact from information technology on critical sectors such as government, healthcare, business, workforces and that on sustainability is evident. IT contributes to an enhanced quality of life globally and so creates endless opportunities for economic growth. Widespread adoption of the products and services developed by this industry…

    • 5887 Words
    • 24 Pages
    Best Essays
  • Good Essays

    ABC COrp assignment

    • 594 Words
    • 3 Pages

    This course studies the use of information technology to develop distinct competitive advantage in relations with competitors, customers, and suppliers, and with respect to products and services. It examines these central issues:…

    • 594 Words
    • 3 Pages
    Good Essays
  • Best Essays

    Wireless Technology Upgrade

    • 3174 Words
    • 13 Pages

    Porter, M.E & Millar, V.E (1985) ‘How information gives you a competitive advantage’ Harvard Business Review: 149-160.…

    • 3174 Words
    • 13 Pages
    Best Essays
  • Satisfactory Essays

    Business Intergration

    • 559 Words
    • 3 Pages

    New IT developments are important to all business disciplines because they trigger changes in marketing operations, e-commerce, logistics, human resources, finance, accounting, and relationships with customers and business partners. Nothing about business or corporate strategy is untouched by IT (Turban & Volonino, 2011).…

    • 559 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Porter, M.E. and Millar, V.E. (1985) 'How information gives you a competitive advantage ', Harvard Business Review.…

    • 8333 Words
    • 34 Pages
    Powerful Essays
  • Good Essays

    Assistant

    • 6073 Words
    • 25 Pages

    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 I.T., ubiquity, management of technology I. MAKING SENSE OF THE IT DOESN 'T MATTER DEBATE by Robert Laskey INTRODUCTION Perhaps too much has been written about the debate surrounding Nicholas Carr 's [2003] article, IT Doesn 't Matter, in the Harvard Business Review. In lieu of a debate, what management needs now are some answers on how to measure IT value and how to develop an appropriate investment strategy for the IT function. Many…

    • 6073 Words
    • 25 Pages
    Good Essays
  • Powerful Essays

    References: Nicholas.G.Carr (2004) Does I.T Matter? Information Technology and the corrosion of competitive advantage,: Harvard Business School .…

    • 1478 Words
    • 43 Pages
    Powerful Essays
  • Good Essays

    Information is everywhere. Information is a strategic asset. Without information, an organization simply could not operate. This Unit introduces students to several core business strategies that focus on using information to gain a competitive advantage, including:…

    • 19093 Words
    • 77 Pages
    Good Essays
  • Good Essays

    In the previous 20 years, there had been a debate concerning whether or not IT paid off in the long run. While some questioned the positive contribution of IT to productivity, others attributed the so-called IT paradox to measurement methodology and to the lack of measurable data, such as increased quality, variety, customer service, speed and responsiveness. To make matters worse, a controversial article published in Harvard Business Review argued that, as IT was being commoditized, the opportunities of gaining IT-based competitive advantages were rapidly disappearing (Carr, 2003). If this was true, then companies should spend less, wait longer to invest in more matured technologies and should be more careful about the costs of IT investments. Financial services firms had long been among the most intensive users of information technology (IT), starting in 1867, when the stock ticker began bringing current Wall Street information to Main Street. Starting in the 1980s, the development of the Internet and telecommunication technologies had further facilitated the development of new banking products and introduced alternative delivery and distribution channels. It was estimated that IT spending accounted for 20-25% of non-interest costs and around 6% of annual revenue for financial institutions (Kauffman and Weber 2002). The global banking industry was expected to spend US$241.2 billion in 2007 on IT, including hardware, software, IT services, internal services and telecommunications (Moskalyuk 2007). Despite these behemoth investments, it is not all that clear whether IT investment pays off for banks. It is also not clear whether these investments would improve just the operational efficiency of banks or if they would also enhance their strategic positioning and sustainable competitive…

    • 6594 Words
    • 27 Pages
    Good Essays
  • Good Essays

    IT formative essay

    • 1001 Words
    • 4 Pages

    Nowadays, technology has become an increasing presence in the workplace. More and more businesses, large and small, are trying to incorporate the latest technology into their operations. Information technology (IT) benefits the business world by allowing organizations to work more efficiently and to maximize productivity. Faster communication, electronic storage and the protection of records are advantages that IT can have on your enterprise. On the other hand, there are always drawbacks in extensive use of technologies in business world.…

    • 1001 Words
    • 4 Pages
    Good Essays
  • Good Essays

    It Doesnt Matter Review

    • 2032 Words
    • 9 Pages

    Etc. What Carr was getting at was that IT in business initially was a tool used to give a strategic advantage to a particular company that chose to adopt it. As the hype of IT caught on, and huge investment was poured into it, it became a ‘must have’ in business. The problem Carr is getting at is that nowadays, everyone has IT and it no longer gives the company that uses it any advantage over their competitor. An analogy I liked that was used to convey this point was the comparison of IT rollout to the rollout of electrification of the US in the early 20th century. If you were a company then with electricity when many of your competitors had not, you had…

    • 2032 Words
    • 9 Pages
    Good Essays
  • Satisfactory Essays

    IT DOESNT MATTER

    • 280 Words
    • 2 Pages

    Nicholas G. Carr published this article in the May of 2003. Its purpose was to convey to the reader that IT no longer matters and may no longer be relevant. Carr’s reasoning behind this is that corporations have universally accepted and use IT; this makes the use of IT a commodity and no longer puts the corporation at an advantage over any other using IT. Which means that using IT would no longer be a strategic decision for the corporation. After explaining this Carr offered new rules for IT management. Spend less: Companies with large IT investments rarely post good financial results. Achieving competitive advantage using IT is becoming increasingly difficult and expensive, putting your company at a cost disadvantage. Follow, don't lead: By postponing IT investments, a company will get more value for its money. Additionally, by avoiding the IT cutting edge, a company will make smarter decisions as IT capabilities are becoming more homogenized. Focus on vulnerabilities, not opportunities: A brief disruption in IT availability can be devastating to a company, and the risks of more and different disruptions are increasing.…

    • 280 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    The information revolution is here – take advantage of it! It creates a competitive advantage by providing companies with new ways to outperform their rivals. Knowledge is power, and business information companies provide just that. Reliable business information companies include Cortera, Hoovers, Manta, Portfolio.com, and Goliath.…

    • 958 Words
    • 5 Pages
    Good Essays