Summary of Carr

Summary of Carr (2003)
Companies pass on more money on IT, that does this spending generate strategic advantages and if not, what should companies do? Nicholas G. CARR argued in the bind IT doesnt matter (Harvard Business Review, May 2003) that IT spending is, to just about extent, a waste of money and does not allow companies to seize any strategic advantages over their competitors due to:
* Its replicability: the generic IT applications put up in generic business process, which makes distinctiveness impossible;
* Its wide buildout: opportunities dwindled with the disappearance of proprietary ownership; and
* Its diminishing investment consequence: simpler and cheaper alternatives can be found (such as outsourcing and partnership) to replace the expensive but less innovative IT investment.
Therefore, management should, as Carr argued, spend wisely their bud earn and reduce IT investment; being a follower can be a good select (contrary to being a leader); moreover, focus should be put on risks of IT instead of advantages search.
However, this article raised several questions to be answered:
FIRST, IS selective information TECHNOLOGY LIKE INFRASTRUCTURE TECHNOLOGY, SUCH AS rail line AND ELECTRIC POWER, TO A FIRM?
The answer is no.



Though IT and infrastructures argon both means of transport mechanism, as expound in the article, their functions / utilities to a company are quite different. For example, theorize a shoe maker who uses highway to carry mad materials (such as leather, rubber, etc.), electricity to index the machines, and an IT system to collect customer data. In this case, highway (in connection with raw materials) and electric power are linked to the cost side of the shoe manufacturer; that is to say, with these infrastructures, company saves time, money and energy that are directly link up to the production of shoes (ie. improves the top lines of its income statements). However, the customer data experience nothing to do with its production of shoes: they...If you want to get a full essay, order it on our website: Orderessay



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