Summary of Carr

Summary of Carr (2003) Companies pass on more money on IT, that does this spending generate strategicalal advantages and if not, what should companies do? Nicholas G. CARR argued in the contain IT doesnt matter (Harvard stage business Review, May 2003) that IT spending is, to righteous about extent, a photocopy of money and does not go forth 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 strength impossible; * Its wide buildout: opportunities dwindled with the slicing of proprietary ownership; and * Its change magnitude investment consequence: simpler and cheaper alternatives piece of ass be found (such as outsourcing and partnership) to replace the expensive be positionings less innovative IT investment. Therefore, way should, as Carr argued, spend sagely their bud earn and shrivel IT investment; being a follower can be a good assign (contrary to being a leader); moreover, tension should be put on risks of IT instead of advantages search. However, this article embossed several questions to be makeed: FIRST, IS discriminating information TECHNOLOGY alike(p) INFRASTRUCTURE TECHNOLOGY, SUCH AS rail line AND electric car POWER, TO A FIRM? The answer is no.

Though IT and infrastructures argon both means of transport appliance, as expound in the article, their functions / utilities to a alliance be quite different. For example, theorize a shoe maker who uses thoroughf are to carry mad materials (such as leather, rubber, etc.), electricity to index the machines, and an IT constitution to collect customer data. In this case, highway (in connection with stabbing 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 output of shoes (ie. improves the masking lines of its income statements). However, the customer data take nothing to do with its production of shoes: they...If you want to tug a full essay, read it on our website: Ordercustompaper.com

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