It Doesn't Matter

In: Computers and Technology

Submitted By paripurna
Words 837
Pages 4
IT Doesn’t matter

“If a company needs evidence of the kind of money that might be saved, it need only look at Microsoft’s profit margin”

Excerpts from a company’s strategy document

• ...the company will ensure that it will have at least 2 plug points in each room with AC connection.

• The switches will be white in color and will make a ‘click’ sound on pressing

Press to hear the click sound

• We all agree to the fact that IT plays a crucial role in running an organisation. • All that we are driving at is that the existence of IT does not grant a competitive advantage to a company, anymore

In other words, IT lets you remain in the race,
Winning is a totally different ball game altogether

The (lost) Edge
• Can IT provide an edge for you? • You only gain an edge over rivals by having or doing something that they can’t have or do.

• By now, the core functions of IT – data storage, data processing, and data transport – have become available and affordable to all.

• And hence they are becoming costs of doing business that must be paid by all but provide distinction to none

Risk >>> Advantage
• When a resource becomes essential to competition but inconsequential to strategy, the risks it creates become more important than the advantages it provides

• Lets classify technologies into • Proprietary technologies • Infrastructural technologies. • Proprietary technologies can be owned, actually or effectively, by a single company. • Infrastructural technologies, in contrast, offer far more value when shared
IT has all the hallmarks of an infrastructural technology.

• Its mix of characteristics guarantees particularly rapid commoditization. • IT is, first of all, a transport mechanism–it carries digital information just as railroads carry goods and power grids carry electricity.

• And like any transport…...

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