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Article: IT DOESN’T MATTER BY NICHOLAS CARR
This article is written by Nicholas Carr and it has become so popular because of its important topic about information technology in business today. Information technology has become a very important component in the success, efficiency and effectiveness of business.
Many businesses today are investing heavily in information technology like e-commerce and internet advertising despite the financial crisis at hand. Most companies view IT as a resource for the expansion of their business. Chief Executives look at IT as a tool to gain competitive advantage against their competitors. However, Nicholas’s argument is of a different view. He says competitive advantage can only be gained by a company if it does something or has something that rivals can’t do or have. IT has become common knowledge to most companies and is available and affordable to all. IT therefore, is no longer a source of competitive advantage but a factor of production. He says, as IT availability increases and its cost decreases, it becomes a commodity input. Competitive advantage can be found through propriety technologies which are technologies owned by a single company. In such a case, a company might innovate or discover a certain process that rivals cannot duplicate so the company is able to reap higher profits than its competitors. Also infrastructure technology can be an advantage to a company where the technology is restricted so becomes scarce and when a company has a superior insight into the use of the new technology. The conclusion here is, when technology has potential for differentiating a company from another, its strategic potential decreases as it becomes accessible and affordable to all.
In regards to commoditization of IT, it is more advantageous to use it as a group than using it in isolation. The internet is a good example of

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