Walk into practically any business, and you will find some form of information technology (IT) hard at work. In recent years, new technologies have radically changed and improved the business world. With the emergence of the Internet, businesses and consumers from all over the globe can interact in a virtually borderless economy. Information technologies have forever altered the way people conduct business and live their daily lives. For example, consider my recent trip to New York City. Before departing, I went on the Internet, booked my airplane flights, purchased sightseeing tickets, and downloaded city maps. At the airport, I swiped my credit card at a computer kiosk to check in, print my boarding pass, and check my baggage. In all of these instances, the use of innovative information systems made my travel easier and more efficient. Isn't that the ultimate goal of information technologies? To enhance customer satisfaction and improve business practices?
IT MATTERS
Hoping to achieve such aims, businesses invest heavily in information technologies. The Internet and integrated software systems offer many benefits for businesses. IT provides enhanced connectivity, making communication among various parties quicker, easier, and more accurate. IT increases efficiency, lowers costs, reduces waste, and removes physical limitations. With today's information technologies, an American consumer can purchase goods directly from a Taiwanese manufacturer and have the item shipped to his home without leaving the comforts of his recliner. A businessman in New York can discuss a potential merger with a businesswoman in Berlin. Improving information exchange allows business to run more smoothly, which makes consumers happy, which then increases business. Therefore, designing and implementing the right combination of information technologies has the potential power to significantly add to a business' bottom line.
IT DOESN'T MATTER
However, the increasing ubiquity and decreasing cost of the Internet and other information technologies have many business managers questioning whether hefty IT investments really pay off. Does IT really matter in business? Can IT truly create a competitve advantage in today's global economy? In his Harvard Business Review article "IT Doesn't Matter," Nicholas Carr answers "No" to these questions, claiming that IT has now become a commodity. Many other business professionals are also beginning to side with Carr's belief, noting several drawbacks to IT. Although monetary cost is becoming less of an issue, other costs are associated with designing and implementing advanced information systems and technologies. Large scale IT systems often require equally substantial funds to establish and maintain them. Time is required to create customized information technologies and then train employees how to use new systems. Given its very nature, information technology also creates ethical concerns regarding security/privacy, outsourcing, e-waste disposal, and mechanization.
Although business experts may disagree about the commoditization of IT, the prevalence and importance of information technology cannot be denied. Considering the aforementioned advantages and disadvantages, how should IT be viewed by today's business leaders?
Can IT create a competitive advantage in the market?
Do you think IT matters?
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