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IT Doesn’t Matter

IT Doesn’t Matter. Nick Carr. Questions. What does Carr mean when he discusses a vanishing advantage?  What is the advantage one gains from IT?. 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? 

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IT Doesn’t Matter

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  1. IT Doesn’t Matter Nick Carr

  2. Questions • What does Carr mean when he discusses a vanishing advantage?  • What is the advantage one gains from IT?

  3. 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?

  4. 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?

  5. 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?

  6. 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

  7. 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.

  8. Generating premium returns on your IT investments • What are the elements of this portfolio? • Infrastructure • Transactional • Informational • Strategic

  9. Generating premium returns on your IT investments • What are the hallmarks of the IT-savvy company?

  10. Generating premium returns on your IT investments • How do firms match IT-savvy practices and competencies with the IT portfolio?

  11. Investing in the IT that makes a competitive difference

  12. Investing in the IT that makes a competitive difference • What has changed? • Who has been changed? • What caused the change?

  13. 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

  14. Investing in the IT that makes a competitive difference • The indicators in the research: • Concentration • Turbulence • Performance spread

  15. Investing in the IT that makes a competitive difference

  16. Investing in the IT that makes a competitive difference

  17. Investing in the IT that makes a competitive difference

  18. 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?

  19. 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

  20. 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?

  21. 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…

  22. Investing in the IT that makes a competitive difference • Where will the next brilliant idea come from? • So, is management out of the picture?

  23. 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

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