Information Technology and Sustained Competitive Advantage - Assignment Example

The argument presented by Nicholas Carr (2003) is thought-provoking and debatable.   Carr’s stance was indecisive as to the value of IT and its relationship to companies creating a sustainable competitive advantage.  He vacillated in his conviction that IT doesn’t matter and his assertion of the immediate accessibility and the duplication of IT processes preventing companies from distinguishing themselves and creating an advantage were unclear and lacked fervor.  On one hand, his argument could be justified due to the readily available access to information and the adaptability of technology to business practices.  The basic formats and practices can be duplicated however on the other hand to generalize and say IT no longer enables companies to create a competitive advantage in the marketplace was unsupported.

Information technology is an evolving science its full potential is still unknown.  However, with a better understanding of the innovative uses of the science companies have the potential of creating an advantage in the marketplace.  The creation and determinant of the effective use of IT are contingent upon a myriad of factors, how a company implements the use of IT in its organizational structure and internal practices, how IT is used in a company’s external marketing campaigns, and whether the value of IT is understood by the leaders and managers as it relates to distinguishing sustainability.
2.  Do you agree with the argument made by the business leaders in this case in support of the competitive advantage that IT can provide to a business? Why or why not?

Corporations such as Wal-Mart, Hewlett-Packard, United Airlines, and other recognizable firms provide evidence that IT does enable companies to create a competitive advantage.  Each of the companies listed has consistently used information technology to distinguish itself in the marketplace.  Whereas other firms have implemented similar practices, the firms listed continue to set themselves apart by using IT in innovative and creative ways.             

The lack of knowledge of the potential benefits of IT and its application within the organization as well as the benefits in the marketplace can make IT appear to be ineffective and a mundane costly endeavor (Parsons, 1984; Mata, Fuerst, & Bailey, 1995).

By effectively applying IT a company can develop inventive processes and innovative products to distinguish itself as a leader.