IT Doesn’t Matter
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Transcript of IT Doesn’t Matter
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IT Doesn’t Matter
Nick Carr
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Questions
• What does Carr mean when he discusses a vanishing advantage? – What is the advantage one gains from
IT?
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Questions
• What does the commoditization of IT mean? – What is a commodity? – How do you make a product into
something that is not a commodity? – How does this Apply to IT?
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Questions
• The examples of railroads and electricity seem to be similar to IT; are these analogies valid? – What is different about IT?– How is IT similar to these examples?
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Questions
• What does Carr feel are the new rules for IT? – Do you think Carr’s recommendations
are strategies that firms should follow?– Is there are role for IT in innovation and
striving for excellence?
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Generating premium returns on your IT investments
• What is IT Savy?– IT savvy refers to the planned, ongoing
use of a set of interlocking business practices and competencies that collectively derive superior value from IT investments
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Generating premium returns on your IT investments
• How does a firm become IT Savy?• What is helpful about viewing IT through
the portfolio lens?– Successful IT portfolio techniques change the
conversation from technical to strategic considerations by applying a commercial lens to IT investments
• Why is this important?– the result is an allocation of IT assets that is
appropriate for the company’s circumstances.
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Generating premium returns on your IT investments
• What are the elements of this portfolio?– Infrastructure– Transactional– Informational– Strategic
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Generating premium returns on your IT investments
• What are the hallmarks of the IT-savvy company?
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Generating premium returns on your IT investments
• How do firms match IT-savvy practices and competencies with the IT portfolio?
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Investing in the IT that makes a competitive difference
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Investing in the IT that makes a competitive difference
• What has changed?
• Who has been changed?
• What caused the change?
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Investing in the IT that makes a competitive difference
• What has changed? A new dynamic
• Who has been changed? Everyone
• What caused the change? Not just IT, but processes
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Investing in the IT that makes a competitive difference
• The indicators in the research:– Concentration– Turbulence– Performance spread
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Investing in the IT that makes a competitive difference
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Investing in the IT that makes a competitive difference
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Investing in the IT that makes a competitive difference
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Investing in the IT that makes a competitive difference
• So, when did all this happen?
• What is the underlying cause?
• How do they make it work?
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Investing in the IT that makes a competitive difference
• So, when did all this happen? Mid ’90s
• What is the underlying cause? IT/productivity
• How do they make it work?Embedded in IT & Propagation
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Investing in the IT that makes a competitive difference
• How do we see this evolve?
• Who is responsible for making it all work?
• What should the mantra be?
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Investing in the IT that makes a competitive difference
• How do we see this evolve?It’s a self propagating cycle
• Who is responsible for making it all work?Managers, of course!
• What should the mantra be?Deploy, innovate, propagate…
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Investing in the IT that makes a competitive difference
• Where will the next brilliant idea come from?
• So, is management out of the picture?
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Investing in the IT that makes a competitive difference
• Where will the next brilliant idea come from?The masses
• So, is management out of the picture?Of course not; identify and propagate