The document presents a debate on the role of technology in business success, arguing that how technology is utilized, rather than the technology itself, is crucial for innovation and competitive advantage. It addresses various perspectives, including commoditization, ubiquity, and the transient nature of advantages derived from technology, highlighting the importance of strategic management over mere possession of technological resources. The conclusion emphasizes that while technology may become commonplace, the real value lies in the skills and application of the technology by knowledgeable individuals.

1. Does IT Matter ?
Presented By : Sumera Aijaz
Group Members :
Abhimanyu Sharma
Sourav Das
Ankita Goyal
Swapnil Tiwari
Kajal Tiwari

2. The Debate
Innovation -
How you use technology, not the technology itself, is the crucial variable
Argument :
The rule of Innovation is true for very other
Resource for that matter
.
Counter :
Does the skill with which we use electricity,
commuter rail service, or the telephone have
anything to do with corporate success or failure?

3. The Debate
Commoditization- Much like Power and Railroads
Argument :
As the availability of a Resource increases,
eventually its cost decreases and as a result it
becomes ubiquitous – they become commodity
inputs
Counter :
But is becoming a commodity the same as no
longer mattering - of no longer holding any
importance?
Packaged Software – Business Intelligence to
Business Process Management

4. The Debate
Ubiquity :
IT is very common – It is found Everywhere.
Argument :
Scarcity, not ubiquity, makes a business resource
truly strategic-
You gain an edge over rivals only by doing
something that they can't.
Counter :
The problem is not a scarcity of equipment - it's
scarcity of ability.
If IT were not a source of competitive advantage,
you would rarely see IT projects fail.

5. The Debate
Everyone has it :
Argument :
Anyone can buy what you buy.
Whats the competitive advantage ?
Counter :
1. Then well , HBR is received by half a million people.
Let us all unsubscribe !
2. Software is a “tool” – It is Configurable !
• Make it hard for competitors to use or duplicate the
technology
• The first mover takes a risk and gains advantage -
Apply the technology more rapidly than
competitors
• The fast follower is - Apply the technology better
than competitor

6. The Debate
Defending against Competition
Argument :
There is no longer room to make mistakes. That
may sound like a defensive position.
He urges IT managers not to venture foolishly
out onto technology’s cutting edge and to buy
only that which has low risk and high value to
their companies
Counter :
Whats bad about a Defensive Strategy ?
Baseball -defense and pitching win championships
Basketball it is defense and rebounding.
Business ?

7. The Debate
IT advantages are short-term
Argument :
Even when a company does achieve some
competitive advantage through IT, it's bound to
be short-lived. Isn't that true?
Counter :
Proprietary technologies can be owned, actually
or effectively, by a single company.
In-house development
Infrastructural technologies are shared

8. The Debate
IT is a Huge COST (minus Strategic Value)
Argument :
IT is a Cost of doing business that must be paid
by all but provide distinction to none.
Counter :
In Carr’s world, information technology managers
are apparently fools, or even frauds, to the tune of
more than $2 trillion per year!
Twenty Years ago – Computers were tools –
calculators appointed to clerical Staff
Today – Managers are looking for Senior IT Staff.
Shift of Mind - strategic value has only increased
over time.

9. The Debate
But you can Duplicate it !
Argument :
Your Strategy can be easily Duplicated by your
Competitor as soon as you implement it and
The competitor learns from your experience.
Counter :
The fact that you buy identical technology doesn't
buy you anything. It's how you manage it.
Look at Wal-Mart, Dell, Cisco and their attempted
imitators.

10. Conclusion –
The value is not in the bits and bytes
The trend is evident –
• The elite business schools are educating students to be fluent in technology, and in how to apply
it.
• In companies-The value is in the minds of the skilled business people using the tools.
• Large chunks of the technology may be commoditizing, but how you use it isn’t.
That is where competitive advantage reside