I.T Doesn't Matter by Nicholas G.Carr - Article Example

Running head: A critical review of IT does not matter A Critical Review of ‘IT does not matter’ In APA Style Your Roll/Section Your Department’s Name Your Institution’s Name Date: The article ‘IT does not matter’ by Nicholas G.Carr, published in the May 2003 edition of the Harvard Business Review, is voted the best article appear in the magazine during 2003 by the staff of HBR. Nicholas G. Carr is an American writer who has published books and articles on technology, business and culture. He has argued in the article that the strategic importance of Information Technology in business has diminished as IT has become more common place, standardized and cheaper. After reviewing the article, one can easily realize that the evolution of information Technology in Business is similar to that of earlier technologies like railroads and electric power. With the advancement of IT, the door of global opportunities has been opened to the challenging companies for utilizing their competitive advantages to reach world wide. These technologies have become the commodity inputs although they are invisible. Firstly, IT is a standardized transport vehicle of information. Secondly, its prices are subject to sharp deflation as its cost decreases with increasing of their availability. Thirdly, it is highly replicable not only for software (reusable objects) but also in terms of business process. Fourthly, IT also becomes transparent to its users. Finally, it becomes ubiquitous. IT would proceed for many years to lift the productivity of entire industries. But from the strategic point of view, it is no longer matter to the competitive fortunes of the individual companies. IT provides its greatest benefits when it becomes a shared and standardized infrastructure of the companies. So IT would be the infrastructural technology instead of proprietary technology. Proprietary technologies are owned by a single company; in contrast, infrastructural technologies are broadly shared by the companies. According to the review, it is said that infrastructural technologies have far more value than proprietary technologies. For the macro economy, the value produced by the proprietary technologies for the development of individual companies would be trivial in comparison with the value produced by the infrastructural technologies that would be ordinal and become part of the global business infrastructure. The writer also says that infrastructural technologies also begin to fade in to the background of the business because it becomes an ordinary phenomenon of global business. The goal of this writing is to promote a better understanding to the business & technology managers, as well as, investors and policy makers how technology, competition and profits intersect. The writer says that although more than fifty years have been passed since the use of computers in business, still we don’t know clearly about their influence on Commerce in general and corporate performance in particular. He quoted, “At a broad level we can’t yet say precisely why computerization had little effect on industrial productivity for four decades, and then in the mid-1990s suddenly seemed to become the driving force behind the sharp acceleration in U.S. productivity. Nor can we say with certainty why the recent productivity gains have been so unevenly distributed, appearing in certain industries and regions that have invested heavily in information technology but not in others that have also spent great sums on computer hardware and software.” It is a matter of great debate in this 21st century of Information Technology although the writer concludes the issue saying that IT does not matter. To support his dialogue it is very explicit that Information Technology is the technology both hardware and software, only used to store, process, and transport information in digital form. But IT does not encompass the information created by the talents of human beings. IT acts as a tool designed for managing information created by people. IT is invented by human talents, and it is used for them. So the most credit worthy element is the human talent to produce information, invent IT and use it in the proper ways. It is clear in the article that the writer only talks about the term ‘Information technology’ itself to support his dialogue ‘IT does not matter’, not the term ‘The use of IT does not matter.’ It is certainly obvious to all of us that the transformation of IT from a set of proprietary and a heterogeneous system in to a shared and standardized infrastructure has become a great infrastructure for economic and social benefits. On the other way it is also true that with the maturity of IT technology, it became cheaper, more accessible and the competitors are able to copy instantly any valuable information or innovation. In the past, information systems and networks formed very strong barriers to competition, but those barriers have fallen with the revolution of IT. The IT infrastructure makes specialization and outsourcing easier but it does not mean that companies will hurry to pursue them leaving their other valuable basic works in different areas. The writer says that the companies should balance the need to share information and process in the global competitive market. The author focuses on the practical managerial implications of commoditization of IT controlling cost and risk that will help both business and technology managers make appropriate decisions in the years ahead. The writer also describes how our natural enthusiasm for a new technology leads us to exaggerate its benefits overlooking its costs. He says, ‘I examine how this bias has influenced our perceptions of the so-called computer revolution.’ The author mentions the three policies to remember for shaping the future. First, the company should reevaluate their IT investment and management. Second, the vendors should re-shape their competitive strategies as the technology industry is restructuring. Third, policy maker and economist should assess the overall effect of computers on industrial performance and productivity, which will lead to the development of IT infrastructure throughout the world. So we are in the turning point of making the right choice in exchanging information and using IT. After being published, the article “IT does not matter” has raised a critical debate among the suppliers and users of Information Technology. It has been widely and passionately discussed, dissected, questioned, critiqued, attacked and also defended. Many business professors, executives and journalists pointed out the strengths and weakness of this dialogue. The writer says himself, “For me personally, the debate has been at once gratifying, and frustrating.” It is gratifying or rewarding because the evolution of Information Technology was the most important and constructive business phenomenon behind the giant successful companies in the world for creating a bridge globally by the charisma of IT. No one can refuse the importance of IT for executing their business for accessing in to the global market. Evolution of IT has saved a great deal of time needed by the human efforts. Now information becomes the key of democracy, nothing left to hide to educate man world wide to present this earth the larger numbers of creative human beings by saving their time, educating them and promoting their knowledge by using IT effectively and efficiently. It’s the latest era of Information Technology. So it is not the property of any individual groups; it must be the asset of whole mankind for utilizing its fullest potential. So of course IT is a matter. It is like a latest vaccine to me to keep the business healthy and smooth. So a company must realize the dose of a vaccine on the right time and by the right way. Without the use of IT, human talents can not flow and be connected widely that is essential for win-win situation to have a global village of business. IT is the latest infrastructure to face global competitions. Now one can’t stay in the dark corner with his or her talents only; his or her talents must be focused and utilized successfully by the global infrastructure which is the result of evolution of IT. How can we say that IT does not matter? In contrast the debate is also frustrating to the writer. He comments, “It has been frustrating because at least a few of the criticisms of my article reflect misinterpretations of it- misinterpretations traceable in some cases because of my own lack of clarity in defining the terms and scope of my argument.” IT’S transformation from a set of proprietary and heterogeneous systems in to a shared and standardized infrastructure is a common resource that will deliver its greatest social and economic social benefits. So it does not matter now-a- days of Democracy of Information rightfully and legally. IT is the common phenomenon for companies in the question of its availability and cost. It is open to all and not a matter of competitive advantage any more. So for the success of business IT is not a matter, the matter is the utilization of IT by the right way and right choice that will be cost effective, more dynamic, time saving and above all user friendly. It is the human effort that is the matter for producing information and communicating globally. A company makes contracts with another company by executing the strong communication for promoting their products or services in the right ways to the potential markets that can’t be done merely by copying the information of another company. It is a serious effort to run the business using own expertise. We could find many Bill Gates if Bill gates is born every time with the usage of IT. So Bill gates does not born frequently with the advancement of IT. It is the talents of Bill Gates to invent it. One can build a good business website by copying information, but to be successful in the business, a business personnel mast have the unique criteria that can’t be copied or purchased by any mean. So the writer simply points out the overall matter and tells us that IT does not matter in the simple sense. IT can’t be the substitute of human talent for the success of business. The core of success is the human talents that invented technologies for them and by them. Technologies didn’t create human talents. But I suggest to use more specific wording and title to avoid misunderstanding regarding this issue in this present world of complexity where simple matters may be complicated, argued and questioned. So I think from my own personal view that the dialogue “IT does not matter” might be less argued if it would be “Accessibility of IT does not matter”. Sources: 1.Carr, Nicholas (2004). Does IT matter? http://books.google.com/ 2. Yann, Gourvennec (2003). A summary of Carrs "IT doesn’t matter" article. http://visionarymarketing.com/ 3. Wikipedia, the free encyclopedia (2008).Nicholas G. Carr http://en.wikipedia.org/ 4. Carr, Nicholas (2004). Does IT matter? Reviews and Responses. http://www.nicholasgcarr.com/ Read More