Can you get IT right, does IT matter, how much is too much?
If you're involved in business and IT, I suggest that you read this set of three articles. Here are my very brief summaries and observations...
IT Doesn’t Matter – Nicholas G. Carr
Harvard Business Review – May 2003
In this provocatively titled article, Carr argues that as IT matures and becomes commoditized, it can no longer provide a business with any competitive advantage. Instead of focusing on IT as a strategic tool, businesses should focus more on minimizing the risks associated with IT.
Getting IT Right – Charlie S. Feld and Donna B. Stoddard
Harvard Business Review – February 2004
This article asserts that IT should be managed like any other part of the business - that there is no longer any reason for business managers not to understand IT or for technologists not to understand business. It then describes three principles for effective IT management:
- A long-term IT plan linked to corporate strategy
- A unifying technical infrastructure
- A functional, performance oriented IT organization
Do You Have Too Much IT? – Andrew McAfee
MIT Sloan Management Review – Spring 2004
This is more or less a case study of how a Spanish clothing retailer uses a minimalist approach to IT to provide it with competitive advantage. It elaborates on three other principles of IT management:
- IT is not a substitute for judgment
- “Computerization is standardized and targeted”
- “Technology initiatives begin from within”
In my view,
IT alone has never provided any business with strategic advantage. However, using IT creatively to assist in solving business problems has provided and will continue to provide strategic advantage. The challenge is to find appropriate, novel ways to apply IT and then to continue to refine and improve them.
While using IT appropriately and efficiently for common business applications will not provide competitive advantage,
using IT inappropriately and inefficiently can provide competitive DISadvantage. (This is the risk that Carr discusses.) It’s particularly important for small businesses with limited IT resources to plan IT expenditures carefully. And it’s critical that they continually scrutinize IT to ensure that it is contributing significantly to achieving the business goals.
