flynn23 wrote:
] ] In May 2003, Nicholas Carr stirred up a hornet's nest
] ] with his Harvard Business Review essay, "IT Doesn't
] ] Matter." Carr argued that information technology is
] ] necessary for business survival but doesn't provide any
] ] strategic advantage. Carr sits down with ZDNet Editor in
] ] Chief Dan Farber to discuss his new book, which expands
] ] on his controversial views.
]
] Great webcast interview with Nick Carr on his theory.

I haven't listened to his theories but it should be noted that, in contrast, our hero Bill Gates wrote a book titled "The Speed of Thought" (circa. 1999) in which he tries to explain the crucial role of technology and how companies that understand and harness it have a major advantage over those who don't. Needless to say, Bill has made a few bucks. I'll have to see what Nicholas has been doing these past few years.

Thrynn wrote:

] I haven't listened to his theories but it should be noted
] that, in contrast, our hero Bill Gates wrote a book titled
] "The Speed of Thought" (circa. 1999) in which he tries to
] explain the crucial role of technology and how companies that
] understand and harness it have a major advantage over those
] who don't. Needless to say, Bill has made a few bucks. I'll
] have to see what Nicholas has been doing these past few years.

I guess what's interesting about this issue is that both are right. The proper application of technology does offer an advantage, but Carr's argument is that it is not a sustainable advantage and is basically a commodity and should be viewed as such. This is obviously anethma to the tech industry, and considering that it drives our economy to a great degree, we should be careful about that. But I tend to agree with Carr. Technology as it's practiced in corporate IT departments across the world *IS* a commodity based upon this definition. It's no different than deploying a telephone system or giving all your workers their own red staplers. The competitive advantage is not there because it's not sustainable.

Furthermore, the big point is that not only is technology commoditizing, but PROCESSES are commoditizing as well. Because the second most important thing about deploying or applying technology is the process used. And with 'best practices' and business process outsourcing so big today, those processes are homogenized across vast spaces, losing differentiation and competitive advantage. Which makes the secret in the secret sauce one simple thing: people.