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A Tool that Should be used Carefully - Research Paper Example

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The current research paper highlights that technology by far seems to have contributed in a great deal to the development of humankind and it’s betterment in various fields like infrastructure, transport, communication, and various businesses. Information Technology is a branch of modern technology. …
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A Tool that Should be used Carefully
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Download file to see previous pages Though IT is an integral part of the decision making process, certain issues arise reporting mixed findings pertaining to the relationship between IT investments and firms profitability as mentioned in the much-touted controversial article by Nicholas G. Carr in “IT Doesn’t Matter”. Carr (2003) mentions that companies that have led the technological innovation strategy made a lesser profit than those counterparts who spent moderately on IT infrastructure. This paper attempts to make a presentation agreeing with the assumption of Nicholas G. Carr made in his article that the IT really doesn’t matter and that companies should spend less on IT and utilize only those IT solutions which would boost the company’s profit rather than exceed it.
Clay and Bassett (1999) mentioned that computers have played an important role in local government for many years and have helped to determine the way many businesses operate. It is further stated that the level of investments in IT has increased rapidly with the US Audit Commission estimating a 700% increase in IT expenditure. According to Carr (2003), the innovation in computer technology has led to a massive increase in spending on IT-related infrastructure. It is further stated that computer’s which were previously limited to the use for top executives have been made available to the low-level executives and IT is now part of the strategic discussion. Organizations need to move forward than the others do so that they earn a competitive edge in the market and produce products that are scarce and handsome profits. Khosrow–pour (2000) stated that new competitive and technological challenges faced by the companies have resulted in tremendous IT expenditures and increasing complexity in IT management.  ...Download file to see next pagesRead More
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