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It Doesnt Matter

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  • \"Information technology is best understood as the latest in a series of broadly adopted technologies that have reshaped industry over the past two centuries - from the railroad to the telegraph to the electric generator. For a brief period, as they were being built into the infrastructure of commerce, all these technologies opened opportunities for forward-looking companies to gain real advantages. But as their availability increased and their cost decreased - as they became ubiquitous - they all became commodity inputs. From a strategic standpoint, they became invisible; they no longer mattered. That is exactly what is happening to information technology today, and the implications for corporate IT management are profound.\"
  • Behind the change in thinking lies a simple assumption: that as IT’s potency and ubiquity have increased, so too has its strategic value. It’s a reasonable assumption, even an intuitive one. But its mistaken

  • Behind the change in thinking lies a simple assumption: that as IT’s potency and ubiquity have increased, so too has its strategic value. It’s a reasonable assumption, even an intuitive one. But its mistaken

  • Behind the change in thinking lies a simple assumption: that as IT’s potency and ubiquity have increased, so too has its strategic value. It’s a reasonable assumption, even an intuitive one. But its mistaken

  • As IT power and presence have expanded, companies have come to view it as a resource ever more critical to their success, a fact that is clearly reflected in their spending habits.

  • What makes resource truly strategic - what gives it the capacity to be the basis for a sustained competitive advantage - is not ubiquity but SCARCITY.










  • Transcript

    • 1. IT Doesn’t Matter Nicholas G Carr May 2003 1 Jaana Metsamaa 2009
    • 2. 1970 2
    • 3. 1970 2
    • 4. 1970 2009 2
    • 5. more power! more potential! 1970 2009 2
    • 6. companies spend a lot 50% 50% .com Bubble 38% 30% 25% IT 13% 15% 5% 0% 1965 1980 1990 2000 % of money spent on IT from Capital Expenditures 3
    • 7. does it matter? 4
    • 8. does it matter? Does the increase of availability and potential increase its strategic value? 4
    • 9. deficiency 5
    • 10. don’t believe me? electricity railways (MW) (1000km 6
    • 11. don’t believe me? electricity railways (MW) (1000km 6
    • 12. don’t believe me? electricity railways computers (MW) (1000km (millions) 6
    • 13. American Hospital Supply 1976 ASAP for ordering hospital goods electronically 7
    • 14. a new technology might give you an advantage 8
    • 15. a new technology might give you an advantage but just for a while 8
    • 16. just pouring more and more $$$ into it wont give you an advantage. 9
    • 17. what you should be thinking about 10
    • 18. cost effectiveness 11
    • 19. cost effectiveness best results aren’t from companies with biggest spendings 11
    • 20. follow don’t lead 12
    • 21. follow don’t lead innovaing is expensive 12
    • 22. It could kill you 13
    • 23. It could kill you what if you were hacked? 13
    • 24. IT matters 14
    • 25. IT matters but just a lot of computers won’t give you strategic advantage 14