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This is a case study on It Doesn’t Matter. To Carr IT is comparable to other technologies and innovations which are initially revolutionary like electricity and railroads.
- 1. Why does Carr think IT doesn’t matter?
To Carr IT is comparable to other technologies and innovations which are initially revolutionary like electricity and railroads. IT to him is not a propriety technology — it is not scarce and it does not give advantage to a single organization like a patent or something which a company can use for a certain number of years if not indefinitely to have a competitive advantage. IT is a shared technology which is easily accessible and used by all and which is offers greater value as a shared commodity rather then a scarce individual technology which can be used by one firm only. The characteristics of this kind of technology have led to it sharing. The importance of IT like electricity cannot be ignored but its influence is becoming macroeconomic rather then affecting a single organization.
Another reason why IT doesn’t matter strategically is because it has become commoditized and is being used widely by everyone. In addition the information is replicable and can be endlessly be copied and passed on. Third as IT develops it become more and more accessible and also cheaper so that it is available to all. Therefore because of its shared usage its strategic importance diminishes and as the industry further matures it will fail to give a strategic advantage to a single firm in any industry. The last important characteristic is that the investment bubble in IT has already burst so the build-out phase of IT is over and related opportunities are gradually diminishing.
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