- Published: September 25, 2022
- Updated: September 25, 2022
- Level: Undergraduate
- Language: English
- Downloads: 14
Case Study Do you agree with the argument made by Nicholas Carr to support his position that IT no longer gives companies a competitive advantage? Why or why not?
While Nicholas Carr’s statement that information technology no longer gives companies a competitive advantage is a compelling way of drawing individual readers into his discussion, it seems fairly clear that it was implemented not as a literal proscriptive statement on the use of information technology, but a means of hyperbole. In this sense, both writers are correct. Carr’s position seems to be that the nature of hardware and technological infrastructure is not as pressing a concern for companies in recent years as the general climate of the market is such that existing hardware is largely adequate in supplying adequate competitive advantage through information. The converse position isn’t really converse from Carr’s argument; it merely addresses the issues on a more singular level. To revisit the railroad analogy, having the technological tracks already set, as evidenced in diverse strands of computer and internet technology, company’s now must focus on more precise and finely-tuned technological measures in order to gain a competitive advantage. While these measures don’t carry the aplomb of the initial IT infrastructure (as Carr indicates) they nevertheless are essential measures (as the article argues).
2. Do you agree with the argument made by the business leaders in this case in support of the competitive advantage that IT can provide to a business? Why or why not?
Again, this question seems to be one primarily concerned with semantics. Few business leaders would acknowledge that information technology is useless in the sense that the article presents it. The real question should be to what extent a fundamental infrastructure has been established and to what extent can one even continue to speak of a unifying concept of ‘ information technology’. While General Electric and Intel surely have a number of overlapping information technology concerns, when it comes to specific instances of information technology there are areas of great divide. Surely, advances in information technology when applied strategically and competently no doubt result in business advantages; for instance the CEO of General Electric states, “ We tend to get a 20 percent return on tech investments, and we tend to invest about $2. 5 billion to $3 billion a year.”
3. What are several ways that IT could provide a competitive advantage to a business? Use some of the companies mentioned in this case as examples. Visit their websites to gather more information to help you answer.
A review of GE’s website reveals their extensive breadth of business involvement. Their involvement in producing media products particularly stands out as an instance where they could implement information technology to a strategic advantage. Consider the current popularity of Apple and the iPad; if similar technology could be developed, or cheaper ways to create ereaders discovered, the profit and advantages would be immense. In reviewing Intel’s site, one sees that information technology is the foundation of their business. Increased hardware could result in increased access to perspectives that could potentially advance their business model. Marketing could be improved; new technological innovations could be developed and sold at reduced prices; indeed, information technology is far from useless in these cases.